Title 12 — Banks and BankingRelease 119-73
§347c Advances to individuals, partnerships, and corporations; security; interest rate
Title 12 › Chapter CHAPTER 3— - FEDERAL RESERVE SYSTEM › Subchapter SUBCHAPTER IX— - POWERS AND DUTIES OF FEDERAL RESERVE BANKS › § 347c
Summary
Under Board rules, a Federal Reserve Bank may make loans to individuals or businesses on promissory notes secured by direct U.S. obligations or obligations fully guaranteed by a U.S. agency. Loans must be 90 days or less and carry interest set by the Reserve bank and reviewed by the Board.
Full Legal Text
Title 12, §347c
Banks and Banking — Source: USLM XML via OLRC
Subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe, any Federal reserve bank may make advances to any individual, partnership, or corporation on the promissory notes of such individual, partnership, or corporation secured by direct obligations of the United States or by any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by any agency of the United States. Such advances shall be made for periods not exceeding 90 days and shall bear interest at rates fixed from time to time by the Federal reserve bank, subject to the review and determination of the Board of Governors of the Federal Reserve System.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Section is comprised of the thirteenth par. of section 13 of act Dec. 23, 1913, as added by act Mar. 9, 1933. For additional details concerning the enactment and numbering of the first twelve and fourteenth pars. of section 13, see Codification notes set out under section 92, 342 to 347, 347d, 361, 372, and 373 of this title.
Amendments
1968—Pub. L. 90–505 added promissory notes secured by any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States to the list of types of promissory notes on which federal reserve banks may make advances to individuals, partnerships, and corporations.
Statutory Notes and Related Subsidiaries
Change of Name
section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
Reference
Citations & Metadata
Citation
12 U.S.C. § 347c
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73