§349 — Title 12 Banks and Banking | U.S. Code

Summary

Federal Reserve banks can buy or lend against certain notes, drafts, and bills listed in section 348 for Federal intermediate credit banks, as long as they follow rules set by the Federal Reserve Board. They cannot buy any such paper if it is endorsed by a nonmember State bank or trust company that is eligible to join the Federal Reserve system under subchapter VIII. They can also discount notes that are payable to and endorsed by a Federal intermediate credit bank for loans made under section 1031, if those notes have no more than nine months left at the time of discount (not counting days of grace) and are backed by notes, drafts, or bills that Federal Reserve banks may rediscount.

Title 12, §349

Banks and Banking — Source: USLM XML via OLRC

Any Federal reserve bank may, subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, rediscount such notes, drafts, and bills mentioned in section 348 of this title for any Federal intermediate credit bank, except that no Federal reserve bank shall rediscount for a Federal intermediate credit bank any such note or obligation which bears the indorsement of a nonmember State bank or trust company which is eligible for membership in the Federal reserve system in accordance with subchapter VIII of this chapter. Any Federal reserve bank may also, subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, discount notes payable to and bearing the indorsement of any Federal intermediate credit bank covering loans or advances made by such bank pursuant to the provisions of section 1031 11 See References in Text note below. of this title which have maturities at the time of discount of not more than nine months, exclusive of days of grace, and which are secured by notes, drafts, or bills of exchange eligible for rediscount by Federal Reserve banks.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Subchapter VIII of this chapter, referred to in text, was in the original “section 9 of this Act”, meaning section 9 of act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. section 9 of the act is classified generally to subchapter VIII (§ 321 et seq.) of this chapter. section 1031 of this title, referred to in text, was repealed by Pub. L. 92–181, title V, § 5.26(a), Dec. 10, 1971, 85 Stat. 624. See section 2074 of this title. Codification Section is comprised of second par. of section 13A, formerly section 13a, as added Mar. 4, 1923. Pars. 1, 3 to 5 of section 13A are set out as section 348, 350 to 352 of this title, respectively.

Amendments

1932—Act May 19, 1932, inserted last sentence.

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.

§349 Rediscount for Intermediate Credit Banks of Obligations Given for Agricultural Purposes; Discount of Notes Made Pursuant to Section 1031