reserve banks

Banks, incorporated under the act of Congress known as the Federal Reserve Act of 1913 and statutes amendatory thereof, and which are members of the Federal reserve system. American Bank & Trust Co. v Federal Reserve Bank, 256 US 350, 65 L Ed 983, 41 S Ct 499, 25 ALR 971, 975, 976. Banks operating under the supervision of the Federal Reserve Board to act as government depositories and fiscal agents of the government; to receive and maintain the legal reserves of banks in the federal reserve system; to discount notes, drafts, and bills of exchange arising in actual commercial transactions; to make short term advances to member banks upon their promissory notes, and, subject to rules and regulations prescribed by the Federal Reserve Board, to engage in open market operations. 10 Am J2d Banks § 272.