General Statutory Provisions

Cable Transfers, Bank Acceptances And Bills Of Exchange

Any Federal Reserve bank may, under rules and regulations prescribed by the Federal Reserve Board, purchase and sell in the open market, at home or abroad, either from or to domestic or foreign banks, firms, corporations, or individuals, cable transfers and bankers' acceptances and bills of exchange, of the kinds and maturities by the Federal Reserve Act made eligible for rediscount, with or without the indorsement of a member bank.

Commercial Bills

Every Federal Reserve bank shall have power to purchase from member banks and to sell with or without its indorsement, bills of exchange arising out of commercial transactions, as hereinafter defined. (See General Regulations and Rulings, following).