NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
industrial, or commercial purposes, or the proceeds of which have been used 
or are to be used for such purposes. 
(¢) It was not issued for carrying or trading in stocks, bonds, or other invest- 
ment securities, except bonds and notes of the Government of the United 
States. 
The aggregate of notes, drafts, and bills bearing the signature or indorse- 
ment of any one borrower, whether a person, company, firm, or corporation, 
rediscounted for any one member bank, whether State or National, shall 
at no time exceed 10 per cent. of the unimpaired capital and surplus of such 
bank, but this restriction shall not apply to the discount of bills of exchange 
drawn in good faith against actually existing values. 
(d) 
(e) It is indorsed by a member bank. 
(f) If conforms to all applicable provisions of the Federal Reserve Board's 
regulations. 
No Federal Reserve Bank may discount for any member state bank 
or trust company any of the notes, drafts, or bills of any one borrower 
who is liable for borrowed money to such state bank or trust company 
in an amount greater than 109, of the capital and surplus of that 
state bank or trust company, but in determining the amount of money 
borrowed from such state bank or trust company the discount of bills 
of exchange drawn in good faith against actually existing value and 
the discount of commercial or business paper actually owned by the 
person negotiating the same shall not be included. 
Under the terms of Section 13a (adopted March 4, 1923), notes, 
drafts, bills of exchange, or acceptances issued or drawn by coopera- 
tive marketing associations composed of producers of agricultural 
products are deemed to have been issued or drawn for an agricultural 
purpose, if the proceeds thereof have been or are to be (1) advanced 
by such association to any member thereof for an agricultural pur- 
pose, or (2) used by such association in making payments to any 
members thereof on account of agricultural products delivered by 
such members to the association, or (3) used by such association to 
meet expenditures incurred or to be incurred by the association 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. 
Any Federal Reserve Bank may make advances to its member 
banks on their promissory notes for a period not exceeding 15 days 
provided that they are secured by notes, drafts, bills of exchange, or 
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