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the Treasury to reopen for the performance of usual banking functions may, with the approval of the appropriate State authority having immediate supervision of such banking institution, permit withdrawals by depositors and make payments to creditors of such percentage of the amounts due to them (not exceeding 5 percent) as it may determine: Provided, That at or before the time of such withdrawal or payment it shall set aside and make available for such purpose a fund for the benefit of and sufficient to pay to all depositors and creditors the percentage so determined.

This section shall not in any way affect any right created by § 121.7 nor limit or restrict any payment thereby authorized.

Any right to authorize withdrawals or payments under the terms of this section shall terminate upon the appointment of any conservator, receiver or other appropriate State official taking charge of the affairs of such banking institutions.** [Mar. 18, 1933]

121.28 Modifying §§ 121.6, 121.10. After the close of business on March 18, 1933, Treasury Regulation No. 6 (§ 121.6) and Treasury Regulation No. 10, as amended (§ 121.10), shall be without force or effect to authorize any banking transaction therein referred to.*† [Mar. 18, 1933]

121.29 Renewal of notes previously rediscounted or pledged. Any banking institution which is a member of the Federal Reserve System and is not licensed to perform usual banking functions may rediscount or pledge with another banking institution renewals of notes which were previously rediscounted or pledged with such other banking institution.*+ [Mar. 21, 1933]

121.30 Limited functions by banks controlled by conservators or State officials. Banking institutions which are members of the Federal Reserve System and of which actual possession and control have been taken (a) by conservators appointed pursuant to the Act of March 9, 1933, or (b) by appropriate State officials appointed pursuant to State law, as permitted by the President's Executive Order of March 18, 1933 (§ 120.4), are permitted to transact such limited banking functions as may be authorized in accordance with law by the Comptroller of the Currency, in the case of national banks, or by the appropriate State officials, in the case of State member banks: Provided, however, That no such banking institution shall reopen for the performance of its usual and normal functions until it shall have received a license from the Secretary of the Treasury.

This section shall not authorize any transaction with respect to the export or paying out of gold, or gold certificates, withdrawal of currency for hoarding or transactions in foreign exchange prohibited or restricted by the Executive Order of March 10, 1933 (§ 120.3).*+ [Mar. 28, 1933]

121.31 Functions of non-licensed member banks as trustee, executor, etc. Any banking institution which is a member of the Federal Reserve System and is not licensed to perform usual banking

**For statutory and source citations, see note to § 121.1.

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functions, but which is duly authorized to engage in the business of acting as trustee, executor, administrator, registrar of stocks and bonds, transfer agent, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity, may transact such business in the normal and usual manner and may make payments on account of the principal or income of trust or other fiduciary funds to the persons entitled thereto: Provided, That, except to the extent permitted by other emergency banking regulations, no such banking institution shall withdraw or pay out any trust or other fiduciary funds on deposit with any other department of such banking institution or make any other payment in connection with any trust or other fiduciary funds which would operate to discharge, as a whole or in part, any indebtedness, as distinguished from any trust or other fiduciary duty, of such banking institution.*† [Mar. 30, 1933]

121.32 Withdrawal of secured deposits from non-licensed State member banks. Any State bank which is a member of the Federal Reserve System, and is not licensed by the Secretary of the Treasury to perform usual banking functions, may permit withdrawals of deposits which are lawfully secured by collateral: Provided, That such withdrawals are (a) permissible under applicable law, (b) duly authorized by the board of directors of such bank, upon such terms with respect to the release of collateral as will fully protect all depositors and other creditors against the creation of any preferences, and (c) approved by the appropriate State authority having supervision of such bank.

Any such bank is authorized to carry on such usual banking functions as may be essential to allow the withdrawals permitted by this section, subject to the provisions and restrictions above set forth and except as otherwise prohibited.*+ [Mar. 30, 1933]

PART 127-EXECUTIVE ORDER OF JANUARY 15, 1934 REGULATING TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND EXPORT OF COIN AND CURRENCY

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Transactions in foreign exchange, transfers of credit, and the export of coin and currency: See Part 128.

Section 127.0 General. I, Franklin D. Roosevelt, President of the United States of America, do declare that a period of national emergency continues to exist, and by virtue of said authority and of all other authority vested in me, do hereby prescribe the following regulations for the investigation, regulation, and prohibition of transactions in foreign exchange, transfers of credit between or payments by banking institutions as herein defined, and export of

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*For statutory and source citations, see note to § 121.1.

currency or silver coin, by any person within the United States or any place subject to the jurisdiction thereof:* [Introduction, E.O. 6560, Jan. 15, 1934]

*§§ 127.0 to 127.9, inclusive, issued under the authority contained in sec. 5 (b), 40 Stat. 415, secs. 2, 13, 48 Stat. 1, 343; 12 U.S.C. 95a, 213; E.O. 6260, Aug. 28, 1933.

127.1 Prohibitions. Every transaction in foreign exchange, transfer of credit between any banking institution within the United States and any banking institution outside of the United States (including any principal, agent, home office, branch, or correspondent outside of the United States of a banking institution within the United States), and the export or withdrawal from the United States of any currency or silver coin which is legal tender in the United States, by any person within the United States, is hereby prohibited, except under license therefor issued pursuant to this part: Provided, however, That, except as prohibited under regulations prescribed by the Secretary of the Treasury, foreign exchange transactions and transfers of credit may be carried out without a license for (a) normal commercial or business requirements, (b) reasonable traveling and other personal requirements, or (c) the fulfillment of legally enforceable obligations incurred prior to March 9, 1933.**

In §§ 127.1 to 127.7, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Executive Order 6560, ‍Jan. 15, 1934.

127.2 Possessions of the United States. Except as prohibited in regulations prescribed by the Secretary of the Treasury, transfers of credit between banking institutions in the continental United States and banking institutions in other places subject to the jurisdiction of the United States (including principals, agents, home offices, branches, or correspondents in such other places, of banking institutions within the continental United States), may be carried out without a license.*†

127.3 Licenses. The Secretary of the Treasury, acting directly or through any agencies that he may designate, and the Federal Reserve banks acting in accordance with such rules and regulations as the Secretary of the Treasury may from time to time prescribe, are hereby designated as agencies for the granting of licenses as hereinafter provided. Licenses may be granted authorizing such transactions in foreign exchange, transfers of credit and exports of currency (other than gold certificates) or silver coin in such specific cases or classes of cases as the Secretary of the Treasury may determine in regulations prescribed hereunder and rulings made pursuant thereto.**

127.4 Reports. The Federal Reserve banks shall keep themselves currently informed as to foreign exchange transactions entered into or consummated, and transfers of credit made between banking institutions outside of the continental United States and banking institutions, in their districts, and report to the Secretary of the Treasury all transactions in foreign exchange and all such transfers of credit not permitted under § 127.1 or § 127.2 which are effected or attempted in their districts without a license.**

*For statutory citation, see note to § 127.0.

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127.5 Regulations. The Secretary of the Treasury is authorized and empowered to prescribe from time to time regulations to carry out the purposes of this part, and to provide in such regulations or by rulings made pursuant thereto, the conditions under which licenses may be granted by the Federal Reserve banks and by such other agencies as the Secretary of the Treasury may designate; and the Secretary of the Treasury may require any person engaged in any transaction, transfer, export, or withdrawal referred to in this part to furnish under oath complete information relative thereto, including the production of any books of account, contracts, letters, or other papers, in connection therewith in the custody or control of such person either before or after such transaction, transfer, export, or withdrawal is completed.*+

127.6 Penalties. Whoever wilfully violates or knowingly participates in the violation of any provision of this part or of any license, order, rule, or regulation issued or prescribed hereunder, shall be subject to the penalties provided in section 5 (b) of the Act of October 6, 1917 (40 Stat. 415), as amended by section 2 of the Act of March 9, 1933 (48 Stat. 1; 12 U.S.C. 95a).*†

127.7 Definitions. As used in this part the term "United States" means the United States and any place subject to the jurisdiction thereof; the term "continental United States" means the States of the United States, the District of Columbia, and the Territory of Alaska; the term "person" means an individual, partnership, association, or corporation; and the term "banking institution" includes any person engaged primarily or incidentally in the business of banking, of granting or transferring credits, or of purchasing and selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent; and, for the purposes of this part, each home office, branch, principal, agent, or correspondent of any person so engaged shall be regarded as a separate "banking institution."**

127.9 Modification or revocation. This part and any rules, regulations, or licenses prescribed or issued hereunder may be modified or revoked at any time.* [Un-numbered paragraph, E.O. 6560, Jan. 15, 1934]

PART 128-TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND EXPORT OF COIN AND CURRENCY

Sec.

128.1 Authority for regulations. 128.2 General license.

Sec.

128.3 Reports.

128.4 Modification or revocation.

Section 128.1 Authority for regulations. The regulations in this part are prescribed and issued under authority of section 5 (b) of the Act of October 6, 1917 (40 Stat. 415), as amended by section 2 of the Act of March 9, 1933 (48 Stat. 1; 12 U.S.C. 95a), and the Executive order of January 15, 1934 (Part 127), regulating

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*For statutory citation, see note to § 127.0.

transactions in foreign exchange, transfers of credit, and the export of coin and currency.**

*§§ 128.1 to 128.4, inclusive, issued under the authority contained in sec. 5 (b), 40 Stat. 415, sec. 2, 48 Stat. 1; 12 U.S.C. 95a; E.O. 6560, Jan. 15, 1934. †In §§ 128.1 to 128.4, inclusive, the numbers to the right of the decimal point correspond with the respective article numbers in Regulations, Secretary of the Treasury, Nov. 12, 1934.

128.2 General license. Licenses may be granted, and a general license is hereby granted, to all individuals, partnerships, associations, and corporations, authorizing any and all transactions in foreign exchange, transfers of credit, and exports of currency (other than gold certificates) and silver coin. The general license herein granted authorizes transactions to be carried out which are permitted by the Executive order of January 15, 1934 (Part 127), under license therefor issued pursuant to such Executive order; but does not authorize any transaction to be carried out which, at the time, is prohibited by any other order or by any law, ruling, or regulation.*†

128.3 Reports. In order that Federal Reserve banks may keep themselves currently informed as to foreign exchange transactions and transfers of credit, as required in § 127.4, every person engaging in any transaction, transfer, export, or withdrawal referred to in § 127.1 shall furnish to the Federal Reserve bank of the district in which such person has his principal place of business in the United States complete information relative thereto upon report forms prescribed by the Secretary of the Treasury, except that reports are not required to be furnished by (a) persons not carrying during any part of the reporting period, accounts abroad or accounts in the United States for non-residents thereof, or (b) persons whose aggregate transactions, transfers, exports, or withdrawals for their own account and the account of others do not exceed $5,000 during any 7-day period. Such information shall be furnished on a weekly basis, except as the respective Federal Reserve banks permit the information in certain cases or classes of cases to be furnished on the basis of longer intervals.*†

128.4 Modification or revocation. The regulations in this part and the general license herein granted may be modified or revoked at any time.**

PART 129-VALUES OF FOREIGN MONEYS9

Section 129.1 Values of foreign moneys. Pursuant to section 522, title IV, of the Tariff Act of 1930 (46 Stat. 739; 31 U.S.C. 372), reenacting section 25 of the Act of August 27, 1894, as amended, the following estimates by the Director of the Mint of the values of foreign monetary units are hereby proclaimed to be the values of such

'Estimates of the values of foreign money are proclaimed quarterly by the Treasury Department as Department Circular No. 1 on the 1st day of January, April, July and October. Accordingly, the Circular embodied in this section has been included solely for illustrative purposes. Copies of current issues of Treasury Department Circular No. 1 may be procured from the Treasury Department.

**For statutory and source citations, see note to § 128.1.

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