---
kind: "section"
citation: "12 U.S.C. § 287"
title: "12"
title_heading: "Banks and Banking"
number: "287"
heading: "Value of shares of stock; increase and decrease of stock; member banks as shareholders; surrender of shares"
release: "119-102"
url: "https://uscodex.org/usc/12/287"
units:
  - "Chapter 3 — Federal Reserve System"
  - "Subchapter VI — Capital and Stock of Federal Reserve Banks; Dividends and Earnings"
---

# §287. Value of shares of stock; increase and decrease of stock; member banks as shareholders; surrender of shares


The [capital stock](/usc/12/321.md) of each Federal [reserve bank](/usc/12/221.md) shall be divided into shares of $100 each. The outstanding [capital stock](/usc/12/321.md) shall be increased from time to time as [member banks](/usc/12/221.md) increase their [capital stock](/usc/12/321.md) and surplus or as additional [banks](/usc/12/221a.md?p=a) become [members](/usc/12/1426a.md?p=g-1), and may be decreased as [member banks](/usc/12/221.md) reduce their [capital stock](/usc/12/321.md) or surplus or cease to be [members](/usc/12/1426a.md?p=g-1). Shares of the [capital stock](/usc/12/321.md) of Federal [reserve banks](/usc/12/221.md) owned by [member banks](/usc/12/221.md) shall not be transferred or hypothecated. When a [member bank](/usc/12/221.md) increases its [capital stock](/usc/12/321.md) or surplus, it shall thereupon subscribe for an additional amount of [capital stock](/usc/12/321.md) of the Federal [reserve bank](/usc/12/221.md) of its [district](/usc/12/221.md) equal to 6 per centum of the said increase, 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](/usc/12/221.md) of Governors of the Federal Reserve System. A [bank](/usc/12/1426a.md?p=g-1) applying for stock in a Federal [reserve bank](/usc/12/221.md) at any time after the organization thereof must subscribe for an amount of the [capital stock](/usc/12/321.md) of the Federal [reserve bank](/usc/12/221.md) equal to 6 per centum of the paid-up [capital stock](/usc/12/321.md) and surplus of said applicant [bank](/usc/12/1426a.md?p=g-1), paying therefor its par value plus one-half of 1 per centum a month from the period of the last dividend. When a [member bank](/usc/12/221.md) reduces its [capital stock](/usc/12/321.md) or surplus it shall surrender a proportionate amount of its holdings in the [capital stock](/usc/12/321.md) of said Federal [Reserve bank](/usc/12/221.md). Any [member bank](/usc/12/221.md) which holds [capital stock](/usc/12/321.md) of a Federal [Reserve bank](/usc/12/221.md) in excess of the amount required on the basis of 6 per centum of its paid-up [capital stock](/usc/12/321.md) and surplus shall surrender such excess stock. When a [member bank](/usc/12/221.md) voluntarily liquidates it shall surrender all of its holdings of the [capital stock](/usc/12/321.md) of said Federal [Reserve bank](/usc/12/221.md) and be released from its stock subscription not previously called. In any such case the shares surrendered shall be canceled and the [member bank](/usc/12/221.md) shall receive in payment therefor, under regulations to be prescribed by the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of 1 per centum a month from the period of the last dividend not to exceed the book value thereof, less any liability of such [member bank](/usc/12/221.md) to the Federal [Reserve bank](/usc/12/221.md).


## Source credit

(Dec. 23, 1913, ch. 6, § 5, 38 Stat. 257; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, § 319(a), 49 Stat. 704, 713.)

## Notes

### Editorial Notes

### Amendments

1935—Act Aug. 23, 1935, § 319(a), amended last four sentences.

### Statutory Notes and Related Subsidiaries

### Change of Name

Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.