12 USC § 327 - Surrender of stock and cancellation of memberships

---
identifier: "/us/usc/t12/s327"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 327 - Surrender of stock and cancellation of memberships"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "327"
section_name: "Surrender of stock and cancellation of memberships"
chapter_number: 3
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "VIII"
subchapter_name: "STATE BANKS AS MEMBERS OF SYSTEM"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Dec. 23, 1913, ch. 6, § 9 (par.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 233; Apr. 23, 1930, ch. 207, § 2, 46 Stat. 251; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.)"
---


# § 327. Surrender of stock and cancellation of memberships

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.

---

**Source Credit**: (Dec. 23, 1913, ch. 6, § 9 (par.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 233; Apr. 23, 1930, ch. 207, § 2, 46 Stat. 251; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.)

## Editorial Notes

### References in Text

This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act , which is classified generally to this subchapter (§ 321 et seq.).

### Codification

Section is comprised of the ninth par. of section 9 of act , as amended. The ninth par. constituted the seventh par. of section 9 in 1917 (), became the eighth par. in 1927 (), and became the ninth par. in 1950 (). For further details, see Codification note set out under .

### Amendments

1930—Act , inserted “or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor,” to first sentence.

## Statutory Notes and Related Subsidiaries

### Change of Name

Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.