(a) Dividends and surplus funds of reserve banks.
(1) Stockholder
dividends.
(A) Dividend
amount. After all necessary expenses of a Federal reserve bank
have been paid or provided for, the stockholders of the bank shall
be entitled to receive an annual dividend on paid-in capital stock
of—
(i) in the case of a stockholder with total consolidated assets of
more than $10,000,000,000, the smaller of—
(I) the rate equal to the high yield of the 10-year
Treasury note auctioned at the last auction held prior to the payment
of such dividend; and
(II) 6 percent; and
(ii) in the case of a stockholder with total
consolidated assets of $10,000,000,000 or less, 6 percent.
(B) Dividend cumulative. The entitlement to
dividends under subparagraph (A) shall be cumulative.
(C) Inflation adjustment. The Board of Governors of the Federal
Reserve System shall annually adjust the dollar amounts of total consolidated
assets specified under subparagraph (A) to reflect the change in the
Gross Domestic Product Price Index, published by the Bureau of Economic
Analysis.
(2) Deposit of net earnings in surplus
fund. That portion of net earnings of each Federal reserve bank
which remains after dividend claims under subparagraph (1)(A) have
been fully met shall be deposited in the surplus fund of the bank.
(3) Limitation on surplus funds.
(A)
In general. The aggregate amount of the
surplus funds of the Federal reserve banks may not exceed $6,825,000,000.
*(B) Transfer to the general fund. Any
amounts of the surplus funds of the Federal reserve banks that exceed,
or would exceed, the limitation under subparagraph (A) shall be transferred
to the Board of Governors of the Federal Reserve System for transfer
to the Secretary of the Treasury for deposit in the general fund of
the Treasury.
(b) Transfer for fiscal year 2000.
(1) In general. The Federal reserve banks shall transfer from the surplus funds
of such banks to the Board of Governors of the Federal Reserve System
for transfer to the Secretary of the Treasury for deposit in the general
fund of the Treasury, a total amount of $3,752,000,000 in fiscal year
2000.
(2) Allocated by Fed. Of the total amount required
to be paid by the Federal reserve banks under paragraph (1) for fiscal
year 2000, the Board shall determine the amount each such bank shall
pay in such fiscal year.
(3) Replenishment of surplus fund prohibited. During fiscal year 2000, no Federal reserve bank may replenish such
bank’s surplus fund by the amount of any transfer by such bank under
paragraph (1).
[12 USC 289. As amended
by acts of March 3, 1919 (40 Stat. 1314); June 16, 1933 (48 Stat.
163); Aug. 10, 1993 (107 Stat. 337); Sept. 23, 1994 (108 Stat. 2291);
Nov. 29, 1999 (113 Stat. 1501A-304), which added this subsection (b)
but failed to redesignate existing subsection (b) (12 USC 290); Dec.
4, 2015 (129 Stat. 1312, 1739); Feb. 9, 2018 (132 Stat. 127); and
May 24, 2018 (132 Stat. 1326).]
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(b) Use of earnings transferred to the Treasury. The net earnings derived by the United States from Federal reserve
banks shall, in the discretion of the Secretary, be used to supplement
the gold reserve held against outstanding United States notes, or
shall be applied to the reduction of the outstanding bonded indebtedness
of the United States under regulations to be prescribed by the Secretary
of the Treasury. Should a Federal reserve bank be dissolved or go
into liquidation, any surplus remaining, after the payment of all
debts, dividend requirements as hereinbefore provided, and the par
value of the stock, shall be paid to and become the property of the
United States and shall be similarly applied.
[12 USC 290. Part of
original Federal Reserve Act; not amended. Designated subsection (b)
by act of Aug. 10, 1993 (107 Stat. 337).]
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(c) Exemption from taxation. Federal reserve
banks, including the capital stock and surplus therein, and the income
derived therefrom shall be exempt from Federal, State, and local taxation,
except taxes upon real estate.
[12 USC 531. Part of
original Federal Reserve Act. Designated subsection (c) by act of
Aug. 10, 1993 (107 Stat. 338).]
