The Federal Reserve Act stipulates that all of the 12 Fed banks "have reserves of gold certificates equal to 40% of Federal Reserve notes in circulation or equal to 35% of their deposits." In 1927 the Fed's original (1913 20-year franchise) was altered to read, perpetuity by the Congressional Act of February 25, 1927 (44 Stat. 1234): "To have succession after February 25, 1927 until dissolved by Act of Congress or until forfeiture of franchise of violation of law,"