It says so in the Federal Reserve Act

• First of all if you aren't a Federal reserve member bank then the Federal Reserve Act does not apply to you
• Only Federal reserve member banks are authorized to hold and therefore redeem Federal reserve notes.
• Holding Federal reserve notes does not make you an authorized Federal reserve bank, it is the opposite: if you are an authorized Federal reserve bank you may redeem Federal reserve notes for lawful money.

This explains why the Federal Reserve central banks do not even have a public teller. They have private tellers which you can only get to if you are an authorized Federal reserve bank.

The big question remains:
Where are the public teller windows to redeem Federal reserve notes for lawful money?
-maybe Emerald City @ the Treasury of the U.S.
-the bank providing your checking account

1. If there is no physical lawful money nor paper United States notes available, then the only lawful money available must be money on account.
2. If lawful money is available in paper form, and customers of the banks demand lawful money, then the member banks must be able to redeem Federal reserve notes from the issuing Federal Reserve banks in order to pay their customers.
3. However the banks may never have to pay their customers with lawful money because of legal tender laws (H.J.R. 192) because all debts can be discharged with FRNs. I have never found the current public law on the books that supposedly says what HJR 192 says, does anyone know where to find it online?

__________________
"We thus require citizens to apprise themselves not only of statutory language but also of legislative history, subsequent judicial construction, and underlying legislative purposes." - People v. Grubb (1965) 63 Cal.2d 614, 620
f-man is not a person qualified to provide legal advice.