General Statutory Provisions

Period Of Maturity

Any member bank may accept such drafts drawn upon it having not more than six months' sight to run, exclusive of days of grace.

In Connection with Maturity of Bank Acceptances Based on Domestic Shipments of Goods

Duration Of Letters Of Credit

The agreement must not be of such a character as will impose upon the holders of the drafts accepted thereunder any obligation to renew such drafts so that the period of acceptance shall exceed six months in duration as to the specified time, notwithstanding the fact that a letter of credit or credit agreement made by a national bank extends for a period of six months.

(See "Bank Acceptances Based on Imports and Exports" for "Amount Bank May Accept for One Interest").

Aggregate Amount Bank May Accept Up To One Hundred Per Cent

No bank is permitted to accept such bills to an amount equal at any time in the aggregate to more than one-half of its unimpaired and paid up capital stock and surplus, provided, however, that the Federal Reserve Board under such general regulations which it may prescribe, which shall apply to all banks alike regardless of the capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at any time in the aggregate one hundred percentum of its paid up and unimpaired capital stock and surplus, and provided further, that the aggregate of acceptances growing out of domestic transactions shall in no event exceed fifty percentum of its capital stock and surplus.

Opinions Of Counsel And Rulings Relating to Aggregate Amount Bank May Accept

Bank Purchasing Own Acceptances

When a member bank purchases its own acceptances before maturity, such acceptances need not be included in the aggregate of acceptances authorized by Section 13.

Section 5202 Inapplicable To Acceptances

The limitations imposed by Section 5202 Revised Statutes on the liabilities incurred by any national bank do not apply to acceptances of such banks.