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FEDERAL RESERVE ACT SEC. 1 
The discount and rediscount and the purchase and sale 
by any Federal reserve bank of any bills receivable and 
of domestic and foreign bills of exchange, and of accept- 
ances authorized by this Act, shall be subject to such 
restrictions, limitations, and regulations as may be 
imposed by the Federal Reserve Board. 
That in addition to the powers now vested by law in 
national banking associations organized under the laws 
of the United States any such association located and 
doing business in any place the population of which does 
not exceed five thousand inhabitants, as shown by the 
last preceding decennial census, may, under such rules 
and regulations as may be prescribed by the Comptroller 
of the Currency, act as the agent for any fire, life, or 
other insurance company authorized by the authorities 
of the State in which said bank is located to do business 
in said State, by soliciting and selling insurance and col- 
lecting premiums on policies issued by such company; 
and may receive for services so rendered such fees or 
commissions as may be agreed upon between the said 
association and the insurance company for which it may 
act as agent; and may also act as the broker or agent 
for others in making or procuring loans on real estate 
located within one hundred miles of the place in which 
said bank may be located, receiving for such services a 
reasonable fee or commission: Provided, however, That 
no such bank shall in any case guarantee either the prin- 
cipal or interest of any such loans or assume or guarantee 
the payment of any premium on insurance policies issued 
through its agency by its principal: And provided further, 
That the bank shall not guarantee the truth of any state- 
ment made by an assured in filing his application for 
insurance. 
Any member bank may accept drafts or bills of 
exchange drawn upon it having not more than three 
months’ sight to run, exclusive of days of grace, drawn 
under regulations to be prescribed by the Federal Reserve 
Board by banks or bankers in foreign countries or depend- 
encies or insular possessions of the United States for the 
purpose of furnishing dollar exchange as required by the 
usages of trade in the respective countries, dependencies, 
or insular possessions. Such drafts or bills may be 
acquired by Federal reserve banks in such amounts and 
subject to such regulations, restrictions, and limitations