Period Of Maturity

Member banks may accept drafts drawn to furnish dollar exchange having not more than three months' sight to run, exclusive of days of grace.

Amount Acceptable By One Member Bank For One Interest

Limitation of per cent - No member bank is permitted to accept drafts or bills of exchange executed to furnish dollar exchange for any one bank to an amount exceeding in the aggregate ten percentum of the paid up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security.

Aggregate Amount Member Bank May Accept

Limitation of per cent - No member bank is permitted to accept such drafts or bills of exchange in an amount exceeding at any time in the aggregate one-half of its paid up and unimpaired capital and surplus.

Separate Limits On The Two Classes Of Acceptances

The fifty per cent limit imposed upon the amount of drafts which a member bank may accept for the purpose of furnishing dollar exchange, is separate and distinct from, and not included in the limits imposed by Section 13, upon the amount of drafts or bills of exchange drawn against a shipment of goods or against warehouse receipts covering readily marketable staples which a member bank may accept. Member banks may, therefore, accept such bills even though their acceptances for other purposes aggregate fifty per cent. (or one hundred per cent.) of their capital and surplus. The limitations imposed by Section 5202 Revised Statutes, and the liabilities incurred by any national bank do not apply to acceptances of such banks.