article: SECTION 1. CALLABLE STOCK OF FEDERAL RESERVE BANKS. (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended-- (1) in the third undesignated paragraph of section 2-- (A) by striking ``Under regulations'' and inserting the following: ``(3) Subscription to stock.-- ``(A) In general.--Under regulations''; (B) by striking ``one-sixth of the subscription to be payable on call of the organization committee or of the Board of Governors of the Federal Reserve System, one-sixth within three months and one-sixth within six months thereafter, and the remainder of the subscription, or any part thereof, shall be subject to call when deemed necessary by the Board of Governors of the Federal Reserve System'' and inserting ``one- twelfth of the subscription to be paid at such time as the Board of Governors of the Federal Reserve System directs (or, in the case of a member bank with total consolidated assets of $10,000,000,000 or less, as provided under subparagraph (B)) and the remainder of the subscription, or any part thereof, shall be subject to call by the Board of Governors of the Federal Reserve System in the manner described under subparagraph (C)''; and (C) by adding at the end the following: ``(B) Treatment of member banks with $10,000,000,000 or less in assets.-- ``(i) In general.--With respect to the payment of subscription under subparagraph (A) or section 5, a member bank with total consolidated assets of $10,000,000,000 or less may elect to pay one-half of the subscription in lieu of the one-twelfth amount specified under such subparagraph (A) or section 5. ``(ii) Timing of election.--The election described under clause (i)-- ``(I) may only be made once; and ``(II) shall be made before the end of the 1-year period beginning on the date the entity becomes a member bank. ``(C) Subscription subject to call.-- ``(i) In general.--The Board of Governors of the Federal Reserve System may only call the subscription of a member bank under subparagraph (A) or section 5 if the aggregate amount of surplus funds of the Federal reserve banks is exhausted. ``(ii) Return of called amounts.--With respect to amounts called under clause (i), a member bank may elect to have such amounts returned to the member bank if the aggregate amount of surplus funds of the Federal reserve banks is $1,000,000,000 or more. ``(D) Inflation adjustment.--The Board of Governors of the Federal Reserve System shall annually adjust the dollar amounts of total consolidated assets specified under subparagraphs (A) and (B)(i) of this paragraph and under section 5 to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis.''; and (2) in section 5, by striking ``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 of Governors of the Federal Reserve System'' and inserting ``one-twelfth of said subscription to be paid in the manner hereinbefore provided for original subscription (or, in the case of a member bank with total consolidated assets of $10,000,000,000 or less, as provided under section 2(3)(B)) and the remainder of the subscription, or any part thereof, subject to call of the Board of Governors of the Federal Reserve System in the manner described under section 2(3)(C)''. (b) Transition Provisions.-- (1) Election by member banks with $10,000,000,000 or less in assets.--Notwithstanding section 2(3)(B)(ii) of the Federal Reserve Act, as added by subsection (a), a member bank with total consolidated assets of $10,000,000,000 or less shall make the election described under section 2(3)(B) of such Act before the end of the 1-year period beginning on the date of the enactment of this Act. (2) Return of payments.--With respect to an entity that is a member bank on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall direct the appropriate Federal reserve bank to return to the member bank an amount equal to 2.5 percent of the paid-up capital stock and surplus of the member bank if, on the date of the enactment of this Act-- (A) the member bank has total consolidated assets of more than $10,000,000,000; or (B) the member bank has total consolidated assets of $10,000,000,000 or less and elects, pursuant to paragraph (1), to pay one-twelfth of the subscription amount described under section 2(3) of the Federal Reserve Act instead of one-half. (3) Member bank defined.--For purposes of this subsection, the term ``member bank'' has the meaning given that term under section 1 of the Federal Reserve Act.
summary: This bill amends the Federal Reserve Act to revise the formula for subscription of national banking associations to the stock of their regional Federal Reserve Bank. Instead of one-sixth of an association's subscription to be payable on call by the Board of Governors of the Federal Reserve System, a member bank shall pay one-twelfth of its subscription when the Federal Reserve Board directs, and the remainder subject to the call of the Board. If a member bank has total consolidated assets of $10 billion or less, however, it may elect to pay one-half of its subscription instead of one-twelfth, but only once, and only within the first year after it becomes a member bank. The bill makes similar revisions to the formula for an increase in a member bank's capital stock or surplus. The Board may only call the subscription of a member bank if the aggregate amount of surplus funds of the Federal Reserve Banks is exhausted. A member bank may elect to have called amounts returned to it if the aggregate amount of surplus funds of the Federal Reserve Banks is $1 billion or more. The Board shall make annually inflation adjustments to the dollar amounts of total consolidated assets specified in the Act and in this bill to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis of the Department of Commerce.