---
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"
date: "2026-07-12"
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 of each Federal [reserve bank](/usc/12/221a.md?p=a) shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as [member banks](/usc/12/221a.md?p=a) increase their capital stock and surplus or as additional [banks](/usc/12/221a.md?p=a) become members, and may be decreased as [member banks](/usc/12/221a.md?p=a) reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal [reserve banks](/usc/12/221a.md?p=a) owned by [member banks](/usc/12/221a.md?p=a) shall not be transferred or hypothecated. When a [member bank](/usc/12/221a.md?p=a) increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal [reserve bank](/usc/12/221a.md?p=a) of its [district](/usc/12/221a.md?p=a) 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/12/221a.md?p=a) of Governors of the Federal Reserve System. A bank applying for stock in a Federal [reserve bank](/usc/12/221a.md?p=a) at any time after the organization thereof must subscribe for an amount of the capital stock of the Federal [reserve bank](/usc/12/221a.md?p=a) equal to 6 per centum of the paid-up capital stock and surplus of said applicant bank, 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/12/221a.md?p=a) reduces its capital stock or surplus it shall surrender a proportionate amount of its holdings in the capital stock of said Federal [Reserve bank](/usc/12/221a.md?p=a). Any [member bank](/usc/12/221a.md?p=a) which holds capital stock of a Federal [Reserve bank](/usc/12/221a.md?p=a) in excess of the amount required on the basis of 6 per centum of its paid-up capital stock and surplus shall surrender such excess stock. When a [member bank](/usc/12/221a.md?p=a) voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal [Reserve bank](/usc/12/221a.md?p=a) 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/12/221a.md?p=a) shall receive in payment therefor, under regulations to be prescribed by the [Board](/usc/12/221a.md?p=a) 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/12/221a.md?p=a) to the Federal [Reserve bank](/usc/12/221a.md?p=a).


## 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.