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Title 12 — Banks and BankingRelease 119-73not60

§351 Obligations of Cooperative Marketing Association as Issued or Drawn for Agricultural Purposes

Title 12 › Chapter 3— FEDERAL RESERVE SYSTEM › Subchapter IX— POWERS AND DUTIES OF FEDERAL RESERVE BANKS › § 351

Last updated Apr 3, 2026|Official source

Summary

Notes, drafts, bills of exchange, or acceptances made by farmer-owned cooperative marketing associations count as being for an agricultural purpose when the money from them is advanced to members for farming needs, used to pay members for products they delivered, or used to cover costs for grading, processing, packing, preparing for market, or marketing products the association handles for members. Listing some kinds of these papers as eligible for rediscount does not make other kinds that are now eligible become ineligible.

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 3, 2026

Release point: 119-73not60