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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 acceptances
 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 collecting
 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 principal
 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 statement
 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 dependencies
 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