General Statutory Provisions

Maturity

Any Federal Reserve bank may purchase and sell cable transfers and bankers' acceptances of the kinds and maturities made eligible for rediscount by the Federal Reserve Act.

Regulations Of The Federal Reserve Board

Requirements As To Maturity

To be eligible for purchase, the bill must have a maturity at the time of purchase of not more than three months, exclusive of the days of grace.

Transactions In Bills Of Exchange And Trade Acceptances

Definition Of Bill Of Exchange

The regulations of the Federal Reserve Board define a bill of exchange to be an unconditional order in writing, addressed by one person to another, other than a banker, signed by the person giving it, requiring the person to whom it is addressed to pay, in the United States, at a fixed or determinable future time, a sum certain in dollars to the order of a specified person.

Definition Of Trade Acceptance

A simple definition of a trade acceptance would be a bill of exchange drawn by the seller on the purchaser of goods sold, and accepted by such purchaser.