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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Federal Reserve Act

Section 20. National bank notes redemption fund as reserve

1. Fund for redemption of national bank notes not to be counted as reserve

So much of sections two and three of the Act of June twentieth, eighteen hundred and seventy-four, entitled "An Act fixing the amount of United States notes, providing for a redistribution of the national-bank currency, and for other purposes," as provides that the fund deposited by any national banking association with the Treasurer of the United States for the redemption of its notes shall be counted as a part of its lawful reserve as provided in the Act aforesaid, is hereby repealed. And from and after the passage of this Act such fund of five per centum shall in no case be counted by any national banking association as a part of its lawful reserve.

[12 USC 121. Part of original Federal Reserve Act; not amended. Section 3 of the act of June 20, 1874, was repealed by act of Sept. 23, 1994 (108 Stat. 2292).]

Last update: May 23, 2013