Title 12 — Banks and BankingRelease 119-73
§351 Obligations of cooperative marketing association as issued or drawn for agricultural purposes
Title 12 › Chapter CHAPTER 3— - FEDERAL RESERVE SYSTEM › Subchapter SUBCHAPTER IX— - POWERS AND DUTIES OF FEDERAL RESERVE BANKS › § 351
Summary
Notes, drafts, bills, or acceptances from cooperative marketing associations of agricultural producers count as issued for an agricultural purpose under sections 348 and 349 to 352 when the money is advanced to members for agricultural use, pays members for products, or covers costs to ready and sell those products. Listing some paper types here doesn't make other already-eligible papers ineligible for rediscount.
Full Legal Text
Title 12, §351
Banks and Banking — Source: USLM XML via OLRC
Notes, drafts, bills of exchange, or acceptances issued or drawn by cooperative marketing associations composed of producers of agricultural products shall be deemed to have been issued or drawn for an agricultural purpose, within the meaning of section 348 and 349 to 352 of this title, if the proceeds thereof have been or are to be advanced by such association to any members thereof for an agricultural purpose, or have been or are to be used by such association in making payments to any members thereof on account of agricultural products delivered by such members to the association, or if such proceeds have been or are to be used by such association to meet expenditures incurred or to be incurred by the association in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product handled by such association for any of its members: Provided, That the express enumeration in this section of certain classes of paper of cooperative marketing associations as eligible for rediscount shall not be construed as rendering ineligible any other class of paper of such associations which is now eligible for rediscount.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Section is comprised of fourth par. of section 13A, formerly section 13a, as added Mar. 4, 1923. Pars. 1 to 3 and 5 of section 13A are set out as section 348, 349, 350 and 352 of this title, respectively.
Reference
Citations & Metadata
Citation
12 U.S.C. § 351
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73