NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM
Sec. 13. Any Federal reserve bank may receive from any of its member banks, and
from the United States,’ deposits of current funds in lawful money, national-bank
notes, Federal reserve notes, or checks, and drafts, payable upon presentation, and also,
for collection, maturing notes and bills; or, solely for purposes of exchange or of col-
lection, may receive from other Federal reserve banks deposits of current funds in
lawful money, national-bank notes, or checks upon other Federal reserve banks, and
checks and drafts, payable upon presentation within its district, and maturing notes
and bills payable within its district; or, solely for the purposes of exchange or of col-
lection, may receive from any nonmember bank or trust company deposits of current
funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts
payable upon presentation, or maturing notes and bills: Provided, Such nonmember
bank or trust company maintains with the Federal reserve bank of its district a bal-
ance sufficient to offset the items in transit held for its account by the Federal reserve
bank: Provided, further, That nothing in this or any other section of this act shall be
construed as prohibiting a member or nonmember bank from making reasonable
charges, to be determined and regulated by the Federal Reserve Board, but in no case
to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts
presented at any one time, for collection or payment of checks and drafts and remis-
sion therefor by exchange or otherwise; but no such charges shall be made against the
Federal reserve banks.
Upon the indorsement of any of its member banks, which shall be deemed a waiver
of demand, notice and protest by such bank as to its own indorsement exclusively, any
Federal reserve bank may discount notes, drafts, and bills of exchange arising out of
actual commercial transactions; that is, notes, drafts, and bills of exchange issued or
drawn for agricultural, industrial, or commercial purposes, or the proceeds of which
have been used, or are to be used, for such purposes, the Federal Reserve Board to have
the right to determine or define the character of the paper thus eligible for discount,
within the meaning of this Act. Nothing in this Act contained shall be construed to
prohibit such notes, drafts, and bills of exchange, secured by staple agricultural prod-
ucts, or other goods, wares, or merchandise from being eligible for such discount, and the
notes, drafts, and bills of exchange of factors issued as such making advances exclusively
to producers of staple agricultural products in their raw state shall be eligible for such
discount; but such definition shall not include notes, drafts, or bills covering merely
investments or issued or drawn for the purpose of carrying or trading in stocks, bonds,
or other investment securities, except bonds and notes of the Government of the United
States.? Notes, drafts, and bills admitted to discount under the terms of this para-
graph must have a maturity at the time of discount of not more than 90 days, exclusive
of grace.
Upon the indorsement of any of its member banks, which shall be deemed a waiver
of demand, notice, and protest by such bank as to its own indorsement exclusively, and
subject to regulations and limitations to be prescribed by the Federal Reserve Board,
any Federal reserve bank may discount or purchase bills of exchange payable at sight
Under authority of War Finance Act, approved Apr. 5, 1918, as amended by act of Mar. 3, 1919,
may receive deposits from War Finance Corporation.
Or bonds of the War Finance Corporation. See act approved Apr. 5, 1918.
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