12 U.S.C. § 327
Section 327 · Surrender of stock and cancellation of memberships
This is § 9 of the Federal Reserve Act of 1913
Amended 4 times on record
Applied in 2 court decisions — leading case Peoples Bank v. Eccles (1947)
Most recently applied in Continental Bank & Trust Co., of Salt Lake City v. Woodall (January 1957)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
If at any time it shall appear to the Board of Governors of the Federal Reserve System that a member bank has failed to comply with the provisions of this subchapter, or the regulations of the Board of Governors of the Federal Reserve System made pursuant thereto, or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Board of Governors of the Federal Reserve System may restore membership upon due proof of compliance with the conditions imposed by this subchapter.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§321 et seq.).
Codification
Section is comprised of the ninth par. of section 9 of act Dec. 23, 1913, as amended. The ninth par. constituted the seventh par. of section 9 in 1917 (40 Stat. 232), became the eighth par. in 1927 (44 Stat. 1229), and became the ninth par. in 1950 (64 Stat. 458). For further details, see Codification note set out under section 321 of this title.
Amendments
1930—Act Apr. 23, 1930, inserted “or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor,” to first sentence.
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.
Cross References
Number of directors of State bank or trust company, violation as subjecting to forfeiture of membership in Federal Reserve System under this section, see section 71a of this title.
Termination of membership in Federal Deposit Insurance Corporation as ground for terminating membership in Federal Reserve System, see section 1818 of this title.