---
kind: "section"
citation: "12 U.S.C. § 521"
title: "12"
title_heading: "Banks and Banking"
number: "521"
heading: "Reserve-bank branches; establishment; directors; discontinuance of branches; approval for erection of branch bank building"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/521"
units:
  - "Chapter 3 — Federal Reserve System"
  - "Subchapter XVII — Reserve-Bank Branches"
---

# §521. Reserve-bank branches; establishment; directors; discontinuance of branches; approval for erection of branch bank building


The [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System may permit or require any Federal [reserve bank](/usc/12/221a.md?p=a) to establish branch [banks](/usc/12/221a.md?p=a) within the Federal reserve [district](/usc/12/221a.md?p=a) in which it is located or within the [district](/usc/12/221a.md?p=a) of any Federal [reserve bank](/usc/12/221a.md?p=a) which may have been suspended. Such branches, subject to such rules and regulations as the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System may prescribe, shall be operated under the supervision of a [board](/usc/12/221a.md?p=a) of [directors](/usc/12/5481.md?p=10) to consist of not more than seven nor less than three [directors](/usc/12/5481.md?p=10), of whom a majority of one shall be appointed by the Federal [reserve bank](/usc/12/221a.md?p=a) of the [district](/usc/12/221a.md?p=a), and the remaining [directors](/usc/12/5481.md?p=10) by the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System. [Directors](/usc/12/5481.md?p=10) of branch [banks](/usc/12/221a.md?p=a) shall hold office during the pleasure of the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System.

The [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System may at any time require any Federal [reserve bank](/usc/12/221a.md?p=a) to discontinue any branch of such Federal [reserve bank](/usc/12/221a.md?p=a) established under this section. The Federal [reserve bank](/usc/12/221a.md?p=a) shall thereupon proceed to wind up the business of such branch bank, subject to such rules and regulations as the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System may prescribe.

No Federal [Reserve bank](/usc/12/221a.md?p=a) shall have authority hereafter to enter into any contract or contracts for the erection of any branch bank building of any kind or character or to authorize the erection of any such building, except with the approval of the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System.


## Source credit

(Dec. 23, 1913, ch. 6, § 3, 38 Stat. 253; June 21, 1917, ch. 32, § 1, 40 Stat. 232; Feb. 25, 1927, ch. 191, § 19, 44 Stat. 1234; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 87–622, § 2, Aug. 31, 1962, 76 Stat. 418.)

## Notes

### Editorial Notes

### Amendments

1962—Pub. L. 87–622 added par. providing that no Federal Reserve Bank shall have authority to enter into any contract for the erection of a branch bank building or to authorize the erection of such building, except with the approval of the Board of Governors of the Federal Reserve System.

1927—Act Feb. 25, 1927, added par. authorizing the Federal Reserve Board to discontinue and wind up the business of branch banks.

### 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.