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Title 12, Banks and BankingRelease 119-102

§346 Discount of Acceptances

Title 12 › CHAPTER 3 — FEDERAL RESERVE SYSTEM › SUBCHAPTER IX — POWERS AND DUTIES OF FEDERAL RESERVE BANKS › § 346

Last updated Aug 21, 2026|Official source

Summary

Federal Reserve banks can buy (discount) certain bank acceptances if they meet two rules. The paper must be due in 90 days or less when bought, not counting any extra grace days, and it must be endorsed by at least one member bank. If the acceptance is for an agricultural purpose and is backed at the time it is accepted by warehouse receipts or similar papers that show title to easily sold farm goods, the bank may buy it even if it is due in up to six months when bought, again not counting grace days.

Full Legal Text

Title 12, §346

Banks and Banking, Source: USLM XML via OLRC

Any Federal reserve bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than ninety days’ sight, exclusive of days of grace, and which are indorsed by at least one member bank: Provided, That such acceptances if drawn for an agricultural purpose and secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable staples may be discounted with a maturity at the time of discount of not more than six months’ sight exclusive of days of grace.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Words “hereinafter described” are from the sixth par. of section 13 of the Federal Reserve Act, see Codification note below. Reference could be to acceptances described in the remaining paragraphs of section 13, which are contained in section 82, 347, 347c, and 372 of this title, or to acceptances described in subsequent sections of the Federal Reserve Act, section 14 et seq. of act Dec. 23, 1913. Codification Section is comprised of the sixth par. of section 13 of act Dec. 23, 1913, as amended. The sixth par. constituted the fourth par. of section 13 in 1916 (39 Stat. 752), became the fifth par. in 1923 (42 Stat. 1478), and became the sixth par. in 1932 (47 Stat. 715). For further details, see Codification notes under section 343 and 344 of this title. For classification to this title of other pars. of section 13, see Codification note set out under section 342 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 346

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102