Acceptances Executed To Furnish Dollar Exchange

Any member bank may accept drafts or bills of exchange drawn upon it having not more than three months' sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board by banks or bankers in foreign countries, or dependencies, or insular possessions of the United States, for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies or insular possessions.

Regulations Of The Federal Reserve Board

In Connection With Bank Acceptances Executed to Furnish Dollar Exchange

Application For Permission To Accept

Any member bank desiring to accept drafts drawn by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange must first make an application to the Federal Reserve Board setting forth the usages of trade in the respective countries, dependencies, or insular possessions in which said banks or bankers are located.

Conditions Upon Which Approval Will Be Made

If the Federal Reserve Board should determine that the usages of trade in such countries, dependencies, or possessions, require the granting of the acceptance facilities applied for, it will notify the applying bank of its approval and will also publish in the Federal Reserve bulletin the name or names of those countries, dependencies, or possessions, in which banks or bankers are authorized to draw on member banks whose applications have been approved for the purpose of furnishing dollar exchange. The Federal Reserve Board reserves the right to modify, or on ninety days' notice, to revoke its approval either as to any particular member bank or as to any foreign country or dependency or insular possession of the United States in which it has authorized banks or bankers to draw on member banks for the purpose of furnishing dollar exchange.