I 
114TH CONGRESS 
2D SESSION 
H. R. 5027 
To amend the Federal Reserve Act to adjust the circumstances under which 
Federal reserve bank stock is callable, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 21, 2016 
Mr. NEUGEBAUER (for himself and Mr. SESSIONS) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To amend the Federal Reserve Act to adjust the cir-
cumstances under which Federal reserve bank stock is 
callable, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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 sec-
tion 2— 
(A) by striking ‘‘Under regulations’’ and 
inserting the following: 
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‘‘(3) SUBSCRIPTION TO STOCK.— 
‘‘(A) IN GENERAL.—Under regulations’’; 
(B) by striking ‘‘one-sixth of the subscrip-
tion 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 there-
after, 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 sub-
ject to call by the Board of Governors of the 
Federal Reserve System in the manner de-
scribed 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.— 
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‘‘(i) IN
GENERAL.—With respect to 
the payment of subscription under sub-
paragraph (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 
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may elect to have such amounts returned 
to the member bank if the aggregate 
amount of surplus funds of the Federal re-
serve banks is $1,000,000,000 or more. 
‘‘(D) 
INFLATION
ADJUSTMENT.—The 
Board of Governors of the Federal Reserve Sys-
tem shall annually adjust the dollar amounts of 
total consolidated assets specified under sub-
paragraphs (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 sub-
ject 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 Gov-
ernors of the Federal Reserve System in the manner 
described under section 2(3)(C)’’. 
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(b) TRANSITION PROVISIONS.— 
(1) ELECTION
BY
MEMBER
BANKS
WITH 
$10,000,000,000
OR
LESS
IN
ASSETS.—Notwith-
standing 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 pe-
riod 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 appro-
priate 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 consoli-
dated assets of more than $10,000,000,000; or 
(B) the member bank has total consoli-
dated assets of $10,000,000,000 or less and 
elects, pursuant to paragraph (1), to pay one- 
twelfth of the subscription amount described 
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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 Fed-
eral Reserve Act. 
Æ 
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