Page:United States Statutes at Large Volume 42 Part 1.djvu/1506

 SIXTY-SEVENTH CONGRESS. Sess. IV. Ch. 252. 1923. 1479 wares, or merchandise from bei cli `ble for such discount and Ad'°“°°’ *° 1**** the notes, drafts, and bills of eldghangb of factors issued asisuch gtiipugs-M mmlmu making advances exclusively to producers of staple agricultural products in their raw state shall be eligible for such discount; but m‘§gg§d“°‘”°¥ P°P°’ 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 investment securities, except bonds and notes of the Government of the United States. Notes, drafts, *‘°"'”'**Y“m“°°· 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 grace. ‘Upon the indorsement of any of its member banks which d,iQ)wi”,$'Z,‘§°,¤.§°!s,,,l,f{,l‘,; shall be deemed a waiver of demand, notice, and rotest by such Qlffmjthefgfamfjs °'*¢'*· bank as to its own indorsement exclusively, and subset to regula- P ` tions and limitations to be prescribed by the Federal Reserve Board, any Federal reserve bank may disconmt or purchase bills of exchange payable at sight or on demand which are drawn to finance the domestic shipment of nonperishable, readily marketable staple agricultural products and are secured by bills of lading or other ` shipping documents conveying or securing title to such staples: _ Provided, That all such bills of exchange shall be forwarded 1*;%; ,,0,],,,;,,,, promptly for collection, and demand for payment shall be made °‘°· with reasonable promptness after the arrival of such staples at Timeumit their destination: Promkied further, That no such bill shall in any ` event be held by or for the account of a Federal reserve bank for m,m,mmmg a period in excess of 90 days. In discount' such bills Federal reserve banks may compute the interest tomge deducted on the basis of the estimated life of each bill and adjust the discount after payment of such bills to conform to the actual life thereof." V 01 N 752 d Sec. 403. That the fourth paragraph of section 13 of the Federal .4, ‘ ’°' ’°°"°“ ` Reserve Act is amended to read as follows: _ " Any Federal reserve bank may discount acceptauces of the kinds  °’ ‘°°°¥’*' hereinafter described, which have a maturity at the time of discount of not more than 90 days’ sight, exclusive of days of grace, and P . which are indorsed by at least one member bank: Provided, That rim 'mmaei ii such acceptances if drawn for an agricultural purpose and secured m_”Y ""“°"°“"° at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable staples may be discounted with a maturity at the time of discount of not more than six months’ si ht exclus1ve of days of (grace? Sac, 404. That the Federal §{eserve Act is amende by adding §§{f3‘;f°,§$$",;,_ at the end of section 13 a new section to read as follows: D,,,,,,m,, 0, W “Smc, 13a. Upon the indorsement of ancy of its member banks, ggsgggiggeégwgi which shall be deemed a waiver of deman, notice, and Fprotest by ¤m¤¤¤¤e¤s·¤i¤zm-ity. such bank as to its own indorsement exclusively, any ederal reserve bank may, subject to regulations and limitations to be pre- use ammmicm scribed by the Federal Reserve Board, discount notes, drafts, and '°’°"’° “°‘°“· bills of exchange issued or drawn for an agricultural purpose, or based upon live stock, and having a maturity, at the time of discount, exclusive of days of grace, not exceeding nine months, and such notes, drafts, and bills of exchange may be offered as collateral security for the issuance of Federal reserve notes under the pro- Pmm visions of section 16 of this Act: Provided, That notes, drafts, and Net§¤¤¤a1u;_Bd combills of exchange with maturities in excess of six months shall not §,,,°'%,_'°q “ "* be eligible as a basis for the issuance of Federal reserve notes unless secured by warehouse receipts or other such negotiable documents conveving or securing title to readily marketable stapleagricultural rodnicts or by chattel mortgage upon live stock which is being ihttened for market.