[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5027 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5027
To amend the Federal Reserve Act to adjust the circumstances under
which Federal reserve bank stock is callable, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2016
Mr. Neugebauer (for himself and Mr. Sessions) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Reserve Act to adjust the circumstances under
which Federal reserve bank stock is callable, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CALLABLE STOCK OF FEDERAL RESERVE BANKS.
(a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is
amended--
(1) in the third undesignated paragraph of section 2--
(A) by striking ``Under regulations'' and inserting
the following:
``(3) Subscription to stock.--
``(A) In general.--Under regulations'';
(B) by striking ``one-sixth of the subscription to
be payable on call of the organization committee or of
the Board of Governors of the Federal Reserve System,
one-sixth within three months and one-sixth within six
months thereafter, and the remainder of the
subscription, or any part thereof, shall be subject to
call when deemed necessary by the Board of Governors of
the Federal Reserve System'' and inserting ``one-
twelfth of the subscription to be paid at such time as
the Board of Governors of the Federal Reserve System
directs (or, in the case of a member bank with total
consolidated assets of $10,000,000,000 or less, as
provided under subparagraph (B)) and the remainder of
the subscription, or any part thereof, shall be subject
to call by the Board of Governors of the Federal
Reserve System in the manner described under
subparagraph (C)''; and
(C) by adding at the end the following:
``(B) Treatment of member banks with
$10,000,000,000 or less in assets.--
``(i) In general.--With respect to the
payment of subscription under subparagraph (A)
or section 5, a member bank with total
consolidated assets of $10,000,000,000 or less
may elect to pay one-half of the subscription
in lieu of the one-twelfth amount specified
under such subparagraph (A) or section 5.
``(ii) Timing of election.--The election
described under clause (i)--
``(I) may only be made once; and
``(II) shall be made before the end
of the 1-year period beginning on the
date the entity becomes a member bank.
``(C) Subscription subject to call.--
``(i) In general.--The Board of Governors
of the Federal Reserve System may only call the
subscription of a member bank under
subparagraph (A) or section 5 if the aggregate
amount of surplus funds of the Federal reserve
banks is exhausted.
``(ii) Return of called amounts.--With
respect to amounts called under clause (i), a
member bank may elect to have such amounts
returned to the member bank if the aggregate
amount of surplus funds of the Federal reserve
banks is $1,000,000,000 or more.
``(D) Inflation adjustment.--The Board of Governors
of the Federal Reserve System shall annually adjust the
dollar amounts of total consolidated assets specified
under subparagraphs (A) and (B)(i) of this paragraph
and under section 5 to reflect the change in the Gross
Domestic Product Price Index, published by the Bureau
of Economic Analysis.''; and
(2) in section 5, by striking ``one-half of said
subscription to be paid in the manner hereinbefore provided for
original subscription, and one-half subject to call of the
Board of Governors of the Federal Reserve System'' and
inserting ``one-twelfth of said subscription to be paid in the
manner hereinbefore provided for original subscription (or, in
the case of a member bank with total consolidated assets of
$10,000,000,000 or less, as provided under section 2(3)(B)) and
the remainder of the subscription, or any part thereof, subject
to call of the Board of Governors of the Federal Reserve System
in the manner described under section 2(3)(C)''.
(b) Transition Provisions.--
(1) Election by member banks with $10,000,000,000 or less
in assets.--Notwithstanding section 2(3)(B)(ii) of the Federal
Reserve Act, as added by subsection (a), a member bank with
total consolidated assets of $10,000,000,000 or less shall make
the election described under section 2(3)(B) of such Act before
the end of the 1-year period beginning on the date of the
enactment of this Act.
(2) Return of payments.--With respect to an entity that is
a member bank on the date of the enactment of this Act, the
Board of Governors of the Federal Reserve System shall direct
the appropriate Federal reserve bank to return to the member
bank an amount equal to 2.5 percent of the paid-up capital
stock and surplus of the member bank if, on the date of the
enactment of this Act--
(A) the member bank has total consolidated assets
of more than $10,000,000,000; or
(B) the member bank has total consolidated assets
of $10,000,000,000 or less and elects, pursuant to
paragraph (1), to pay one-twelfth of the subscription
amount described under section 2(3) of the Federal
Reserve Act instead of one-half.
(3) Member bank defined.--For purposes of this subsection,
the term ``member bank'' has the meaning given that term under
section 1 of the Federal Reserve Act.
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