I have my doubts that the Federal Reserve Association has anything to do with the Federal Reserve System. While it is true that the FRA was incorporated in Delaware and anyone can see that on the Delaware Corporate website, a person has to pay $10 to see the current status of the entity. I did. Currently, the status for the FRA is listed as VOID as of 03/01/2001. The definition of the void status from the Delaware Corporate website is "V - Void - A corporation that failed to pay it's annual franchise tax for a period of 1 year or a Foreign Corporation that has not filed their annual reports within a 2 year period." Since the Federal Reserve System has been operating continuously, I seriously doubt the FRA or their status has anything to do with the Federal Reserve System.
According to the Federal Reserve Act (USC Title 12, Chapter 3), there can be no more than 12 federal reserve districts in the continental U.S. In each district, there can be no more than ONE federal reserve city. The federal reserve city will be the location of the federal reserve bank of that district. Also, the title of a federal reserve bank will include the city name. For example, Federal Reserve Bank of Chicago. National banks are required by law to become a member bank of the Federal Reserve System by subscribing and paying for stock in the Federal Reserve bank of its district. (USC, Title 12, Chapter 3, Subchapter I, § 222). Also, no individual, copartnership, or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Federal reserve bank. (USC, Title 12, Chapter 3, Subchapter 6, § 283).
JimK: I have to give you a great big GONG on this one.
"As for being "chartered" and equivelent to the USPS I would certainly have to disagree - as the USPS makes a profit and that profit goes to the federal government - you are saying such profits from the federal reserve go to the government as well - they don't - they line the pockets of the owners of the federal reserve."
In reality, the federal reserve pays a 6% per year dividend on the stock of the federal reserve. As I mentioned earlier, other than a small amount, all of the stock in the Federal Reserve is held by national member banks. The dividend is cumulative, so if the Federal Reserve doesn't make enough one year to pay the dividend, it has to pay the amount that is short in following years where it does have enough. The reason for this is to give the member banks incentive to become members and to provide interest on the amount the member banks are required to hold in reserve on their deposits. The Federal Reserve also rebates interest earned on U.S. Government debt to the Treasury. Any excess earnings are required to be placed in a surplus fund to support the system in short years. Periodically, Congress will instruct the Federal Reserve to transfer a portion of the surplus fund to the Treasury.
(USC, Title 12, Chapter 3, Subchapter 6, § 289)
BTW, the non-profit or religious entity type for the Federal Reserve Association simply means this description type refers to a corporation that sets forth in it's certificate of incorporation or subsequent documents that it is a non-profit corporation. The "Religious" literal does not infer that, in every case, the corporation is for Religious purposes only. The intent is to define the corporation as Non-Profit, charitable corporation which maybe formed for Religious purposes.