14 
FEDERAL RESERVE ACT Src. 18 
ciation shall be authorized to commence banking business 
it shall transfer and deliver to the Treasurer of the 
United States a stated amount of United States registered 
bonds, and so much of those provisions or of any other 
provisions of existing statutes as require any national 
banking association now or hereafter organized to main- 
fain & minimum deposit of such bonds with the Treasurer 
is hereby repealed. 
REFUNDING BONDS 
Sec. 18. After two years from the passage of this Act, 
and at any time during a period of twenty years there- 
after, any member bank desiring to retire the whole or any 
part of its circulating notes, may file with the Treasurer 
of the United States an application to sell for its account, 
at par and accrued interest, United States bonds securing 
circulation to be retired. 
The Treasurer shall, at the end of each quarterly period, 
furnish the Federal Reserve Board with a list of such 
applications, and the Federal Reserve Board may, in its 
discretion, require the Federal reserve banks to purchase 
such bonds from the banks whose applications have been 
filed with the Treasurer at least ten days before the end 
of any quarterly period at which the Federal Reserve 
Board may direct the purchase to be made: Provided, 
That Federal reserve banks shall not be permitted to 
purchase an amount to exceed $25,000,000 of such bonds 
in any one year, and which amount shall include bonds 
acquired under section four of this Act by the Federal 
reserve bank. 
Provided further, That the Federal Reserve Board shall 
allot to each Federal reserve bank such proportion of 
such bonds as the capital and surplus of such bank shall 
bear to the aggregate capital and surplus of all the Fed- 
eral reserve banks. 
Upon notice from the Treasurer of the amount of bonds 
so sold for its account, each member bank shall duly 
assign and transfer, in writing, such bonds to the Federal 
reserve bank purchasing the same, and such Federal 
reserve bank shall, thereupon, deposit lawful money with 
the Treasurer of the United States for the purchase price 
of such bonds, and the Treasurer shall pay to the mem- 
ber bank selling such bonds any balance due after deduct- 
ing a sufficient sum to redeem its outstanding notes