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FEDERAL RESERVE ACT Bxc. 1 
subject to the same limitations as those upon which 
it may buy and sell bonds issued under Title I of the 
Federal Farm Loan Act. 
Notes, drafts, bills of exchange or acceptances issued 
or drawn by cooperative marketing associations com- 
posed of producers of agricultural products shall be 
deemed to have been issued or drawn for an agricultural 
purpose, within the meaning of this section, if the pro- 
ceeds thereof have been or are to be advanced by such 
association to any members thereof for an agricultural 
purpose, or have been or are to be used by such associa- 
tion in making payments to any members thereof on 
account of agricultural products delivered by such 
members to the association, or if such proceeds have 
been or are to be used by such association to meet 
expenditures incurred or to be incurred by the associa- 
lion in connection with the grading, processing, packing, 
preparation for market, or marketing of any agricultural 
product handled by such association for any of its 
members: Provided, That the express enumeration in this 
paragraph of certain classes of paper of cooperative 
marketing associations as eligible for rediscount shall 
not be construed as rendering ineligible any other class 
of paper of such associations which is now eligible for 
rediscount. 
The Federal Reserve Board may, by regulation, limit 
to a percentage of the assets of a Federal reserve bank 
the amount of notes, drafts, acceptances, or bills having 
a maturity in excess of three months, but not exceeding 
six months, exclusive of days of grace, which may be 
discounted by such bank, and the amount of notes, drafts, 
bills, or acceptances having a maturity in excess of six 
months, but not exceeding nine months, which may be 
rediscounted by such bank. 
OPEN-MARKET OPERATIONS 
J hamendedby Sec. 14. Any Federal reserve bank may, under rules 
Sep. 7, 1916 (38 1 2 
iki, on, chap and regulations prescribed by the Federal Reserve 
kame dl 7 Board, purchase and sell in the open market, at home or 
nT ie abroad, either from or to domestic or foreign banks, 
28); Mar. 4, 19% firms, corporations, or individuals, cable transfers and 
chap. 252). bankers’ acceptances and bills of exchange of the kinds 
and maturities by this Act made eligible for rediscount, 
with or without the indorsement of a member bank.