Sec. 13. Any Fed. Res. bank may receive from any of its member banks, and from the U. S., deposits of current funds in lawful money, Nat.-bank notes, Fed. Res. notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills; or solely for purposes of exchange or of collection, may receive from other Fed. Res. banks deposits of current funds in lawful money, Nat.-bank notes, or checks upon other Fed, Res. banks, and checks and drafts, payfederal Reserve Act able upon presentation within its Dist., and maturing notes and bills payable within its Dist.; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or Tr. Co. deposits of current funds in lawful money, Nat .-bank notes, Fed. Res. notes, checks and drafts payable upon presentation, or maturing notes and bills: Provided, Such nonmember bank or Tr. Co. maintains with the Fed. Res. bank of its Dist. a balance sufficient to offset the items in transit held for its account by the Fed. Res. bank: Provided further, That nothing in this or any other Sec. of this Act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, to be determined and regulated by the Fed. Res. Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Fed. Res. banks.
Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Fed. Res. bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Fed. Res. Board to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural products, or other goods, wares, or merchandise from being eligible for such discount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other Inv. securities, except bonds and notes of the Govt. of the U. S. Notes, drafts, and bills admitted to discount under the terms of this paragraph must have a maturity at the time of discount of not more than 90 days, exclusive of days of grace: Provided, That notes, drafts, and bills drawn or issued for agricultural purposes or based on live stock and having a maturity not exceeding 6 months, exclusive of days of grace, may be discounted in an amount to be limited to a percentage of the assets of the Fed. Res. bank, to be ascertained and fixed by the Fed. Res. Board.
The aggregate of such notes, drafts, and bills bearing the signature or indorsement of any one borrower, whether a person, Co., firm, or Corp., rediscounted for any one bank shall at no time exceed 10% of the unimpaired capital and surplus of said bank; but this restriction shall not apply to the discount of bills of exchange drawn in good faith against actually existing values.
Any Fed. Res. bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than 3 months' sight, exclusive of days of grace, and which are indorsed by at least one member bank.
Any member bank may accept drafts or bills of exchange drawn upon it having not more than 6 months' sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions involving the domestic shipment of goods provided shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. No member bank shall accept, whether in a foreign or domestic transaction, for any one person, Co., firm, or Corp. to an amount equal at any time in the aggregate to more than 10% of its paid-up and unimpaired capital stock and surplus unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance and no bank shall accept such bills to an amount equal at any time in the aggregate to more than 1/2 of its paid-up and unimpaired capital stock and surplus; Provided, however, That the Fed. Res. Board, under such general regulations as it may prescribe, which shall apply to all banks alike regardless of the amount of capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at any time in the aggregate 100% of its paid-up and unimpaired capital stock and surplus: Provided, further, That the aggregate of acceptances growing out of domestic transactions shall in no event exceed 50% of such capital stock and surplus.
Any Fed. Res. bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days at rates to be established by such Fed. Res. banks, subject to the review and determination of the Fed. Res. Board, provided such promissory notes are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Fed. res. banks under the provisions of this Act, or by the deposit or pledge of bonds or notes of the U. S.
Sec. 5202 of the Rev. Sts. of the the U. S. is hereby amended so as to read as follows: No Nat. B'k'g. Asso. shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following:
1st. Notes of circulation.
2d. Moneys deposited with or collected by the Asso.
3d. Bills of exchange or drafts drawn against money actually on deposit to the credit of the Asso., or due thereto.
4th. Liabilities to the stockholders of the Asso. for Divs. and reserve profits.
5th. Liabilities incurred under the provisions of the Fed. Res. Act.
The discount and rediscount and the purchase and sale by any Fed. Res. bank of any bills receivable and of domestic and foreign bills of exchange, and of acceptances authorized by this Act, shall be subject to such restrictions, limitations, and regulations as may be imposed by the Fed. Res. Board.
That in addition to the powers now vested by law in Nat. B'k'g. Assos. organized under the laws of the U. S. any such Asso. located and doing business in any place the population of which does not exceed 5000 inhabitants, as shown by the last preceding decennial census, may, under such rules and regulations as may be prescribed by the Comptroller of the Currency, act as the agent for any fire, life, or other Ins. Co. authorized by the authorities of the State in which said bank is located to do business in said State, by soliciting and selling Ins. and collecting premiums on policies issued by such Co.; and may receive for services so rendered such fees or commissions as may be agreed upon between the said Asso. and the Ins. Co. for which it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within 100 miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission: Provided, however, That no such bank shall in any case guarantee either the principal or Int. of any such, loans or assume or guarantee the payment of any premium on Ins. policies issued through its agency by its principal: And provided further, That the bank shall not guarantee the truth of any statement made by an assured in filing his application for insurance.
Any member bank may accept drafts or bills of exchange drawn upon it having not more than 3 months' sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Fed. Res. Board by banks or bankers in foreign countries or dependencies or insular possessions of the U. S. for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. Such drafts or bills may be acquired by Fed. Res. banks in such
Federal Reserve Act amounts and subject to such regulations, restrictions, and limitations as may be prescribed by the Fed. Res. Board: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to in this paragraph for any one bank to an amount exceeding in the aggregate 10% 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: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of \ of its paid-up and unimpaired capital and surplus.