12 USC 347d - Transactions between Federal Reserve banks and branch or agency of foreign bank; matters considered
U.S. Code > Title 12 > Chapter 3 > Subchapter IX > § 347d - Transactions between Federal Reserve banks and branch or agency of foreign bank; matters considered
Upon the indorsement of any of its member banks, which shall be
deemed a waiver of demand, notice, and protest by such bank as to
its own indorsement exclusively, any Federal reserve bank may,
subject to regulations and limitations to be prescribed by the
Board of Governors of the Federal Reserve System, discount notes,
drafts, and bills of exchange issued or drawn for an agricultural
purpose, or based upon livestock, and having a maturity, at the
time of discount, exclusive of days of grace, not exceeding nine
months, and such notes, drafts, and bills of exchange may be
offered as collateral security for the issuance of Federal reserve
notes under the provisions of section 16 of this Act: Provided,
That notes, drafts, and bills of exchange with maturities in excess
of six months shall not be eligible as a basis for the issuance of
Federal reserve notes unless secured by warehouse receipts or other
such negotiable documents conveying or securing title to readily
marketable staple agricultural products or by chattel mortgage upon
livestock which is being fattened for market.
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