§ 120.5

Proclamation 2070 of December 30, 1933, concerning banking institutions not members of the Federal Reserve System.

I, Franklin D. Roosevelt, President of the United States, in order to assure that the banking authority in each State and in any place subject to the jurisdiction of the United States shall have and exercise the sole responsibility for and control over, banking institutions which are not members of the Federal Reserve System, do hereby proclaim, order, direct, and declare that the proclamations of March 6, 1933 (§ 120.1), and March 9, 1933 (§ 120.2), and the Executive order of March 10, 1933 (§ 120.3), and all orders and regulations pursuant thereto, are amended, effective the first day of January, nineteen hundred and thirtyfour, to exclude from their scope banking institutions which are not members of the Federal Reserve System. Provided, however, That no banking institution shall pay out any gold coin, gold bullion, or gold certificates, except as authorized by the Secretary of the Treasury, nor allow the withdrawal of any currency for hoarding.

(Sec. 5(b), 40 Stat. 415, as amended, secs. 4, 13, 48 Stat. 2, 343; 12 U.S.C. 95a, 95, 213; Proc. 2039, Mar. 6, 1933; Proc. 2040, Mar. 9, 1933; E.O. 6073, Mar. 10, 1933) [Proc. 2070, Dec. 30, 1933, as amended by sec. 2, E.O. 6559, Jan. 15, 1934]

§ 120.6 Executive Order 6559 of January 15, 1934, amending provisions concerning the operation of banks.

(a) Preamble. I, Franklin D. Roosevelt, President of the United States of America, do hereby issue the following Executive order:

(b) Amendment of Executive order 6073 of March 10, 1933, and licenses issued thereunder. The last two paragraphs of the Executive order of March 10, 1933 (§ 120.3), concerning the operation of banks, are amended, effective from the date of this order (this section), by striking out the following:

nor to engage in any transaction in foreign exchange except such as may be undertaken for legitimate and normal business requirements, for reasonable traveling and other personal requirements, and for the fulfillment of contracts entered into prior to March 6, 1933.

Every Federal Reserve bank is authorized and instructed to keep itself currently informed as to transactions in foreign exchange entered into or consummated within its district and shall report to the Secretary of

the Treasury all transactions in foreign exchange which are prohibited.

The Secretary of the Treasury is authorized to amend the licenses heretofore issued with his approval by the Federal Reserve banks under the Executive order of March 10, 1933 (§ 120.3), by issuing through the Federal Reserve banks amendatory licenses removing the restriction upon transactions in foreign exchange contained in the licenses heretofore issued.

(c) Amendment of Proclamation 2070 of December 30, 1933. The Proclamation of December 30, 1933 (§ 120.5), relating to the licensing of banking institutions which are not members of the Federal Reserve System, is amended, effective from the date of this order, by striking out the following:

nor to engage in any transaction in foreign exchange except such as may be undertaken for legitimate and normal business requirements, for reasonable traveling and other personal requirements, and for the fulfillment of contracts entered into prior to March 6, 1933.

(d) Matters not affected by paragraphs (b) and (c) of this section. The amendment of such Executive order of March 10, 1933 (§ 120.3), or of any licenses issued thereunder, and the amendment of such proclamation of December 30, 1933 (§ 120.5), shall not affect any act done, or any order, decision, or finding made, or relieve any person from the consequences of any unauthorized act committed prior to the date of this Executive order; nor shall the amendment of the Executive order of March 10, 1933, or the proclamation of December 30, 1933, relieve any person from the obligation of complying with the terms of the Executive order of January 15, 1934 (Part 127 of this chapter), relating to the export of coin and currency and transactions in foreign exchange, or the regulations or licenses issued thereunder, or of any other provision of law affecting transactions in foreign exchange.

(Sec. 5(b), 40 Stat. 415, as amended, secs. 4, 13, 48 Stat. 2, 343; 12 U.S.C. 95, 95a, 213, E.O. 6073, Mar. 10, 1933; Proc. 2070, Dec. 30, 1933; E.O. 6560, Jan. 15, 1934) [E.O. 6559, Jan. 15, 1934]

§ 120.7 Proclamation 2725 of April 7,

1947, excluding Federal Reserve banks from scope of §§ 120.1-120.3. I, Harry S. Truman, President of the United States of America, acting under

and by virtue of the authority vested in me by section 5(b) of the Trading With the Enemy Act of October 6, 1917, 40 Stat. 415, as amended, and section 4 of the act of March 9, 1933, 48 Stat. 2, and by virtue of all other authority vested in me, do hereby, in the interest of the internal management of the Government, proclaim, order, direct, and declare that the said proclamations of March 6 and March 9, 1933 (§§ 120.1, 120.2), and Executive order of March 10, 1933, as amended (§ 120.3), are further amended to exclude from their scope banking institutions which are members of the Federal Reserve System: Provided, however, That no banking institution shall pay out any gold coin, gold bullion, or gold certificates, except as authorized by the Secretary of the Treasury, or allow the withdrawal of any currency for hoarding.

(Sec. 5 (b) 40 Stat. 415, as amended, sec. 4, 48 Stat. 2; 12 U.S.C. 95a, 95) [Proc. 2725, April 7, 1947, 12 F.R. 2343, Apr. 10, 1947]

Withdrawals for hoarding.

Official drafts drawn upon Secretary of State.

121.25 Gold for use in trade, profession, or art.

121.26 Transfer of payments of fees relating to patents, trade-marks, and designs.

121.27 Withdrawals from member State banks not licensed to open.

121.28 121.29

Modifying §§ 121.6, 121.10.

Renewal of notes previously rediscounted or pledged.

121.30 Limited functions by banks controlled by conservators or State officials.

121.31 Functions of non-licensed member banks as trustee, executor, etc. 121.32 Withdrawal of secured deposits from non-licensed State member banks. AUTHORITY: The provisions of this Part 121 issued under sec. 5 (b), 40 Stat. 415, as amended, secs. 1, 2, 3, 4, 13, 48 Stat. 1, 2, 343; 12 U.S.C. 95, 95a, 95b, 213, 248 (n), 50 U.S.C. App. 5, Proclamation 2039, March 6, 1933, Proclamation 2040, March 9, 1933, unless otherwise noted.

§ 121.1

Exchange of currency by banks.

All Federal Reserve banks and all other banking institutions are authorized to make change by the exchange of currency and/or coin of various denominations for an exactly equal amount of currency and/or coin of other denominations, but no gold or gold certificates shall be paid out in making change. [Emergency Banking Reg. 1, Mar. 6, 1933] § 121.2

Access to safety deposit boxes. All banking institutions may allow their customers free access to the safety deposit boxes and safes rented to such customers.

[Emergency Banking Reg. 2, Mar. 6, 1933]

§ 121.3 Return of items received after closing.

All banking institutions may upon request return intact and without restric

tion all cash, checks, and other items delivered for deposit or collection which were received after the last closing of business hours and have not been entered on the books of such banking institution. [Emergency Banking Reg. 3, Mar. 6, 1933]

§ 121.4 Cashing of checks drawn on Treasurer of United States.

All banking institutions may continue, in accordance with usual practice, to cash checks drawn on the Treasurer of the United States: Provided, That no gold or gold certificates shall be paid out. [Emergency Banking Reg. 4, Mar. 6, 1933]

§ 121.5 Settlement of obligations payable at banks.

Any banking institution may accept payments in cash or any other form acceptable to it on account or in settlement of obligations payable at or to such institution.

[Emergency Banking Reg. 5, Mar. 6, 19331

§ 121.6 Translations relating to shipment of food.

Any banking institution may handle and collect drafts or other documents in connection with the shipment, transportation or delivery of food or feed products, may pay out or permit the withdrawal of such amounts of currency as shall be necessary in the judgment of such banking institution in connection with such shipment, transportation or delivery of food or feed products, and may perform such other banking functions as may be essential to the shipment, transportation or delivery of food or feed products: Provided, however, That no banking institution shall pay out or permit the withdrawal of any gold or gold certificates.

[Emergency Banking Reg. 6, Mar. 7, 1933]

CROSS REFERENCE: For modification of §121.6, see § 121.28.

§ 121.7 Deposits received pursuant to agreement or legislative authority; new deposits; special accounts opened by Federal Reserve banks. Deposits heretofore received by any banking institution pursuant to agreement or legislative authority providing for segregation and for repayment without restriction may be paid on demand. Any banking institution which was lawfully engaged in the business of receiving deposits prior to March 6, 1933, may create special trust accounts for the receipt of new deposits which shall be

subject to withdrawal on demand without any restriction or limitation and shall be kept separately in cash or on deposit in Federal Reserve banks or invested in obligations of the United States. Federal Reserve banks may open special accounts on their books for their member banks and temporarily for nonmember banks and may receive in such special accounts the proceeds of new deposits received by such banking institutions. In making deposits with the Federal Reserve bank pursuant to this section, the depositing bank shall in the case of each deposit indicate to the Federal Reserve bank by symbol or otherwise that the funds so deposit represent new deposits made under this section. Upon receipt of such deposits such Federal Reserve bank shall credit the same in the special account of the depositing bank herein provided for and shall hold the same solely for repayment to such bank. Federal Reserve banks shall permit the withdrawal of any part or all of such new deposits by the depositing bank without restriction provided that the depositing bank shall in such order or request for withdrawal indicate to the Federal Reserve bank by symbol or otherwise that such withdrawal is to be made from such special account: Provided, however, That no banking institution shall pay out or permit the withdrawal of any gold or gold certificates.

[Emergency Banking Reg. 7, Mar. 6, 1933]

CROSS REFERENCE: For redeposit of deposits received pursuant to agreement or legislative authority, see § 121.15.

§ 121.8 Settlement for checks charged to drawers' accounts on or before March 4, 1933.

Where settlement for checks charged by drawee institutions to the drawers' accounts on its books on or before March 4, 1933, is incomplete, settlement may be completed where such settlement does not involve the payment of money or currency.

[Emergency Banking Reg. 8, Mar. 7, 1933] § 121.9 Delivery of documents and securities.

Any banking institution may deliver to the person entitled thereto properly identified documents and securities held by such institution for safekeeping. [Emergency Banking Reg. 9, Mar. 7, 1933]

§ 121.10 Exercise of banking functions necessary to meet needs for food, medicine, and other necessities of life.

(a) Any national or State banking institution may exercise its usual banking functions to such extent as its situation shall permit and as shall be absolutely necessary to meet the needs of its community for food, medicine, other necessities of life, for the relief of distress, for the payment of usual salaries and wages for necessary current expenditures for the purpose of maintaining employment, and for other similar essential purposes. Banking institutions may carry out such transactions as may be necessary to aid banking institutions in other communities to meet the necessities set forth above: Provided, however, That (1) every precaution shall be taken to prevent hoarding or the unnecessary withdrawal of currency; (2) no State banking institution shall engage in any transaction under this section which is in violation of State or Federal law or of any regulation issued thereunder; (3) no national banking association shall engage in any transaction under this section which is in violation of any Federal law or of any order or regulation issued by the Comptroller of the Currency; and (4) no gold or gold certificates shall be paid out. Each banking institution and its directors and officers will be held strictly accountable for faithful compliance with the spirit and purpose as well as the letter of this section.

(b) Federal Reserve banks may carry on such functions as may be necessary to facilitate transactions authorized by this section.

(c) In order to enable member banks of the Federal Reserve System to meet the needs of their respective communities to the extent authorized by this section Federal Reserve banks may make advances to such member banks under the conditions set forth in section 10(b) of the Federal Reserve Act, as amended by the act of March 9, 1933, and in accordance with authority granted by the Federal Reserve Board.

(d) In addition, in order to enable individuals, partnerships and corporations to meet their immediate pay-roll requirements, Federal Reserve banks may make temporary advances to such individuals, partnerships and corporations on their promissory notes secured by direct obli

gations of the United States in accordance with authority granted by the Federal Reserve Board.

[Emergency Banking Reg. 10, Mar. 7, 1933, as amended Mar. 10, 1933]

CROSS REFERENCE: For modification of § 121.10, see § 121.28.

§ 121.11

Advances to bank branches in foreign countries.

Any bank having a branch in a foreign country may deposit collateral in the United States to secure advances to such branch in a foreign country, provided such transaction does not involve any transfer of credit from the United States to a foreign country and any bank having a branch in an insular possession of the United States may deposit United States Government securities or other collateral for a similar purpose when under the President's proclamation advances of local currency in the insular possession may lawfully be made. [Emergency Banking Reg. 11, Mar. 7, 1933] § 121.12 Permission to issue certificates against sound assets of banks.

Clearing house associations and other associations organized to provide an adequately secured medium of temporary exchange, are hereby permitted to issue certificates against sound assets of banking institutions, such certificate to be deliverable by each institution to its creditors and depositors on a pro rata basis: Provided, however, That no such certificates shall be issued before Friday, March 10, 1933, without the consent of the Secretary of the Treasury addressed to the clearing house or other association proposing to issue such certificates: And further provided, That this permission may be revoked in the event that a national plan to meet the existing emergency is proposed by the Secretary of the Treasury if in his opinion the success of such plan would be inconsistent with the operation of the certificate plan.

[Emergency Banking Reg. 12, Mar. 7, 1933] § 121.14 Operations of Federal Reserve banks as fiscal agents of the United States.

Federal Reserve banks are authorized to conduct their normal and usual operations as fiscal agents of the United States in transactions pertaining to the exchange of obligations of the United States, such as making exchange of denominations, exchanging coupon

for registered bonds, and vice versa, receiving registered bonds for transfer and effecting C. P. D. transactions.

[Emergency Banking Reg. 14, Mar. 7, 1933]

§ 121.15 Redeposit of deposits received pursuant to agreement or legislative authority.

The permission granted in § 121.7 that deposits heretofore received by any banking institution pursuant to agreement or legislative authority providing for segregation and repayment without restriction may be paid on demand, includes any bank in which any such deposits have been redeposited by or on behalf of the receiving bank in accordance with such agreement or legislative authority.

[Emergency Banking Reg. 15, Mar. 8, 1933]

CROSS REFERENCE: For deposits received pursuant to agreement or legislative authority, see § 121.7.

§ 121.16 Payment on subscriptions for Treasury bills of the United States.

All banking institutions are hereby authorized to take such steps and carry through such transactions as may be necessary to complete for their own account, or the account of their customers, payment on any subscriptions for Treasury bills of the United States for which payment was due on March 6, 1933. [Emergency Banking Reg. 16, Mar. 10, 1933] § 121.17 Payment of checks by crediting owners' accounts.

Any banking institution may, when the owners consent thereto, pay checks issued prior to March 6, 1933, and received in due course of business by the drawee banking institution, by charging the amounts thereof to the accounts of the drawers and crediting such amounts to the accounts of such owners on the books of the drawee banking institution. [Emergency Banking Reg. 17, Mar. 10, 1933] § 121.18 Subscription and payment for United States Government obligations; redemption of United States obligations.

(a) All banking institutions are hereby authorized to subscribe and pay for any United States Government obligations which may be offered for subscription and sale by the Secretary of the Treasury. Federal Reserve banks may carry on such functions as may be necessary

to facilitate such transactions as are authorized by this section.

(b) All Federal Reserve banks are authorized to redeem matured obligations of the United States and to cash matured coupons provided no gold or gold certificates shall be paid out.

[Emergency Banking Reg. 18, Mar. 11, 1933] § 121.19 Substitution or release of collateral.

Except as otherwise prohibited by law, banking institutions may exercise their normal and usual functions in permitting substitution for or release of collateral held by them, provided other collateral or cash of equal or greater value is received in exchange therefor. [Emergency Banking Reg. 19, Mar. 11, 1933] § 121.20 Opening of Federal Reserve banks and their branches.

All Federal Reserve banks and their branches and agencies may open March 13, 1933, and may remain open for the performance of all usual and normal banking functions except as prohibited by the Executive order issued by the President on March 10, 1933 (§ 120.3), and any further orders or regulations hereafter issued.

[Emergency Banking Reg. 20, Mar. 11, 1933] § 121.21 Opening of banking institutions not members of the Federal Reserve System or organized under the laws of the United States and which are not under State supervision.

Banking institutions which are not members of the Federal Reserve System or organized under the laws of the United States and which are not under the immediate supervision of any State authority may, on and after March 13, 1933, carry on their normal and usual functions, except as otherwise prohibited and except that no such institution shall pay out any gold coin, gold bullion or gold certificates, unless authorized by the Secretary of the Treasury, nor allow withdrawal of any currency for hoarding, nor engage in any transaction in foreign exchange except such as may be undertaken for legitimate and normal business requirements, for reasonable traveling and other personal requirements, and for fulfillment of contracts entered into prior to March 6, 1933. [Emergency Banking Reg. 21, Mar. 11, 1933]