NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
IN AON AL NN Ny ES 
NER aa 
section to any limitation based upon capital and surplus. 
(See Bankers’ Acceptances pp. 71 and 72).” 
f) 
Obligations secured by shipping documents, warehouse receipts, or other 
documents transferring or securing title covering readily marketable non- 
perishable staples, when such property is fully covered by insurance, if it is 
customary to insure such staples, are subject to the following extensions of 
the general limitation of 10 per cent when the market value of the staples 
securing such obligations is as shown: 
Market value of security 
underlying obligations: 
115 9, of face amount 
HO Come © 
N25, oe we 
[R00 ee TE 
E555 2% 
140 
Under this exception, if the underlying security has an average market value 
equal to 12414 per cent of the face amount of the secured paper, obligations 
of any one customer to the amount of 40 per cent of the bank’s capital and 
surplus may be held by the bank in addition to the 10 per cent allowed under 
the general limitation, making a maximum limit of 50 per cent of the 
bank’s capital and surplus. The exception does not apply, however, to 
obligations of any one customer arising out of the same transaction and/or 
secured by the identical staples for a longer period than 10 months. 
Obligations of any person, copartnership, association, or corporation in the 
form of notes or drafts secured by shipping documents or instruments trans- 
[erring or securing title covering livestock or giving a lien on livestock when 
the market value of the livestock securing the obligation is not at any time 
less than 115 per centum of the face amount of the notes covered by such 
documents are subject to a limitation of 15 per centum of the bank’s capital 
and surplus in addition to such 10 per centum of its capital and surplus. 
) 
h) 
Obligations of any person, copartnership, association, or corporation in 
the form of notes secured by not less than a like amount of bonds or notes 
of the United States issued since April 24, 1917, or certificates of indebted- 
ness of the United States, are (except to the extent permitted by rules and 
regulations prescribed by the Comptroller of the Currency, with the 
approval of the Secretary of the Treasury) subject under this section to a 
limitation of 15 per centum of the bank’s capital and surplus in addition to 
10 per centum of its capital and surplus. 
4. On Capital Stock—It is unlawful for a national bank to make any 
loans or discounts on the security of the shares of its own capital 
stock. 
[62 ]