Also known as: Federal Reserve · Fed · FRS · the Fed
Written by attorneys · grounded in primary & secondary sources — see below
The central bank that sets credit and monetary policy by fixing the reserves to be maintained by depository institutions, determining the discount rate charged by Federal Reserve Banks, and regulating the amount of credit that may be extended on any security.
Fernando Farrell and Falcon Dynamics signed a loan memorandum that was later destroyed in a fire. When Falcon Dynamics sought to enforce the terms, Fernando argued the loss defeated any claim. The Federal Reserve System's monetary-policy functions had no bearing on the evidentiary question, so the claim proceeded under rules allowing oral testimony and copies.
Felicia Fuentes sent a payment order through a funds-transfer system to Foster Forge. A discrepancy arose between the order sent and the one received by the bank. The Federal Reserve System's regulations controlled the resolution and superseded any inconsistent UCC rule on the sender's terms.
Select any source to read its text and confirm it supports the definition.
The system comprises twelve regional Federal Reserve Banks supervised by a Board of Governors whose members are appointed by the President and confirmed by the Senate.
Supporting sources
Regulations of the Board of Governors and operating circulars of the Federal Reserve Banks supersede any inconsistent UCC provision to the extent of the inconsistency.
No. Although the Statute of Frauds serves an evidentiary purpose, it is not a rule of evidence, and Federal Reserve banking records may be proven by unsigned copies or oral evidence when a memorandum is lost.