Opinions of Council and Rulings

Acceptances Not Based On Sales And Not Secured, Ineligible

Acceptances which are drawn by a manufacturer and accepted by a trust company, not a member of the Federal Reserve System, the proceeds of which are to be used for purchases of raw material and payment for labor, where the goods have not been sold, and no warehouse receipts or other instruments could be furnished, are held not to be eligible for purchase by a Federal Reserve bank.

Acceptances Secured By Bill Of Sale Ineligible

A banker's acceptance drawn for the purpose of purchasing goods secured by a bill of sale of stock in hand is not eligible for purchase by Federal Reserve banks.

Bills Payable Outside The United States Ineligible

Under the regulations of the Federal Reserve Board defining bankers' acceptances, any bill which is payable elsewhere than in the United States would not be eligible for purchase as a banker's acceptance, even though eligible in all other respects, but might, however, be purchased as a bill of exchange payable in a foreign country.