FeperaL RESERVE Act
or on demand which are drawn to finance the domestic shipment of nonperishable,
readily marketable staple agricultural products and are secured by bills of lading or
other shipping documents conveying or securing title to such staples: Provided, That
all such bills of exchange shall be forwarded promptly for collection, and demand for
payment shall be made with reasonable promptness after the arrival of such staples at
their destination: Provided further, That no such bill shall in any event be held by or for
the account of a Federal reserve bank for a period in excess of 90 days. In discounting
such bills Federal reserve banks may compute the interest to be deducted on the basis
of the estimated life of each bill and adjust the discount after payment of such bills to
conform to the actual life thereof.
The aggregate of such notes, drafts, and bills bearing the signature or indorsement of
any one borrower, whether a person, company, firm, or corporation, rediscounted for
any one bank shall at no time exceed ten per centum of the unimpaired capital and sur-
plus of said bank; but this restriction shall not apply to the discount of bills of exchange
drawn in good faith against actually existing values.
Any Federal reserve bank may discount acceptances of the kinds hereinafter de-
scribed, which have a maturity at the time of discount of not more than 90 days’
sight, exclusive of days of grace, and which are indorsed by at least one member bank:
Provided, That such acceptances if drawn for an agricultural purpose and secured at
the time of acceptance by warehouse receipts or other such documents conveying or
securing title covering readily marketable staples may be discounted with a maturity
at the time of discount of not more than six months’ sight exclusive of days of grace.
Any member bank may accept drafts or bills of exchange drawn upon it having not
more than six months’ sight to run, exclusive of days of grace, which grow out of trans-
actions involving the importation or exportation of goods; or which grow out of trans-
actions involving the domestic shipment of goods provided shipping documents con-
veying or securing title are attached at the time of acceptance; or which are secured
at the time of acceptance by a warehouse receipt or other such document conveying or
securing title covering readily marketable staples. No member bank shall accept,
whether in a foreign or domestic transaction, for any one person, company, firm, or
corporation to an amount equal at any time in the aggregate to more than ten per
centum of its paid-up and unimpaired capital stock and surplus, unless the bank is
secured either by attached documents or by some other actual security growing out of
the same transaction as the acceptance; and no bank shall accept such bills to an amount
equal at any time in the aggregate to more than one-half of its paid-up and unimpaired
capital stock and surplus: Provided, however, That the Federal Reserve Board, under
such general regulations as it may prescribe, which shall apply to all banks alike regard-
less of the amount of capital stock and surplus, may authorize any member bank to
accept such bills to an amount not exceeding at any time in the aggregate one hundred
per centum of its paid-up and unimpaired capital stock and surplus: Provided further,
That the aggregate of acceptances growing out of domestic transactions shall in no
event exceed fifty per centum of such capital stock and surplus.
Any Federal reserve bank may make advances to its member banks on their promis-
Sory notes for a period not exceeding fifteen days at rates to be established by such
Federa] reserve banks, subject to the review and determination of the Federal Reserve
Board, provided such promissory notes are secured by such notes, drafts, bills of ex-
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