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FEDERAL RESERVE ACT ) Bec. 16 
less than forty per centum against its Federal reserve 
notes in actual circulation: Provided, however, That when 
the Federal reserve agent holds gold or gold certificates as 
collateral for Federal reserve notes issued to the bank 
such gold or gold certificates shall be counted as part of 
the gold reserve which such bank is required to maintain 
against its Federal reserve notes in actual circulation. 
Notes so paid out shall bear upon their faces a distinctive 
letter and serial number which shall be assigned by the 
Federal Reserve Board to each Federal reserve bank. 
Whenever Federal reserve notes issued through one Fed- 
eral reserve bank shall be received by another Federal 
reserve bank, they shall be promptly returned for credit 
or redemption to the Federal reserve bank through 
which they were originally issued or, upon direction of 
such Federal reserve bank, they shall be forwarded direct 
to the Treasurer of the United States to be retired. No 
Federal reserve bank shall pay out notes issued through 
another under penalty of a tax of ten per centum upon 
the face value of notes so paid out. Notes presented for 
redemption at the Treasury of the United States shall be 
paid out of the redemption fund and returned to the 
Federal reserve banks through which they were origi nally 
issued, and thereupon such Federal reserve bank shall, 
upon demand of the Secretary of the Treasury, reim burse 
such redemption fund in lawful money or, if such Fe deral 
reserve notes have been redeemed by the Treasurer in 
gold or gold certificates, then such funds shall be reim- 
bursed to the extent deemed necessary by the Secretary 
of the Treasury in gold or gold certificates, and such 
Federal reserve bank shall, so long as any of its Federal 
reserve notes remain outstanding, maintain with the 
Treasurer in gold an amount sufficient in the judgment 
of the Secretary to provide for all redemptions to be m ade 
by the Treasurer. Federal reserve notes received by the 
Treasurer otherwise than for redemption may be ex- 
changed for gold out of the redemption fund hereinaf ter 
provided and returned to the reserve bank through which 
they were originally issued, or they may be returned to 
such bank for the credit of the United States. Fede ral 
reserve notes unfit for circulation shall be returned by 
the Federal reserve agents to the Comptroller of the 
Currency for cancellation and destruction,