12 U.S.C. § 412

Application for notes; collateral required

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Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of sections 348a and 353 to 359 of this title, or bankers’ acceptances purchased under the provisions of said sections 348a and 353 to 359 of this title, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under sections 348a and 353 to 359 of this title or any other asset of a Federal Reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.

Notes of Decisions

Cited in 24 cases (21 in the last 5 years), 1978–2025 · leading case: Donald H. Mathes and Patricia Marie Mathes v. Commissioner of Internal Revenue

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Donald H. Mathes and Patricia Marie Mathes v. Commissioner of Internal Revenue (1978) ca5 “Taxpayers’ attempt to devalue the Federal Reserve notes they received as income is, therefore, not lawful under the laws of the United States. Taxpayers also assert they were denied their Seventh Amendment right to trial by jury before the Tax Court.”

Joseph J. Birkenstock and Generose M. Birkenstock v. Commissioner of Internal Revenue (1981) ca7 “Commissioner, supra, the Fifth Circuit stated: Congress has delegated the power to establish this national currency which is lawful money to the Federal Reserve Sys *1187 tem.”

Middlebrook v. Mississippi State Tax Comm. (1980) miss “He then argues the exemption allowed by statute at that time was $6,500 "dollars," or approximately 138 1/2 ounces of pure gold.”

Knapp v. Compass Minnesota, LLC (2024) mnd · cites it 3× ““exchangeable with the Federal Reserve pursuant to 12 U.S.C. § 412 .” (Id. ¶¶ 11-12.) Williams then “rescinded the original blank negotiation unknowingly done by plaintiffs[;]” “replaced the previously blank indorsements with special/restrictive indorsements via a Limited Power…”

ROBINSON v. TRUMARK FINANCIAL CREDIT UNION (2024) paed · cites it 3× “3 She states, however, that the “collateral securities” are “exchangeable with the Federal Reserve pursuant to 12 U.S.C. § 412 .” (Id.) Robinson alleges that she “rescinded the original blank negotiation,” “replaced the previous blank indorsements with special/restrictive…”

(PS) Lewis v. Synchrony Bank (2025) caed · cites it 3× “For the federal claims, he brings 5 claims under 12 U.S.C. § 412 ; 15 U.S.C. §§ 1601 , 1692; 18 U.”

Morton v. Duke Energy (2024) scd · cites it 2× “§ 1332(d)(9)(C) and 12 U.S.C. § 412–provides a basis for the Court to exercise federal question jurisdiction.”

Morton v. Citigroup (2024) scd · cites it 2× “§ 1332(d)(9)(C) and 12 U.S.C. § 412–provides a basis for the Court to exercise federal question jurisdiction.”

Morton v. Wells Fargo (2024) scd · cites it 2× “§ 1332(d)(9)(C) and 12 U.S.C. § 412–provides a basis for the Court to exercise federal question jurisdiction.”

Morton v. American Express (2024) scd · cites it 2× “§ 1332(d)(9)(C) and 12 U.S.C. § 412–provides a basis for the Court to exercise federal question jurisdiction.”

Morton v. J.P. Morgan Chase & Co. (2024) scd · cites it 2× “§ 1332(d)(9)(C) and 12 U.S.C. § 412–provides a basis for the Court to exercise federal question jurisdiction.”

(PS) Newson v. Mercedes-Benz Financial Services (2024) caed · cites it 2× “For federal question jurisdiction, Plaintiff lists several federal 14 statutes he claims Defendant violated: 12 U.S.C. § 412 (“Section 16”) and 12 U.S.”

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