12 U.S.C. § 347c: Advances to individuals…

Summary

Under rules the Federal Reserve Board makes, a Federal Reserve Bank may lend to an individual, partnership, or corporation if they give a written IOU that is backed by direct U.S. government debt or debt fully guaranteed by a U.S. agency. Loans can be for no more than 90 days. The Reserve Bank sets the interest rate, and the Federal Reserve Board reviews and decides on those rates.

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.

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.

§347c Advances to Individuals, Partnerships, and Corporations; Security; Interest Rate