§ 344. — Discount or purchase of bills to finance agricultural shipments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC344]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER IX--POWERS AND DUTIES OF FEDERAL RESERVE BANKS
Sec. 344. Discount or purchase of bills to finance agricultural
shipments
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, and subject to regulations and limitations
to be prescribed by the Board of Governors of the Federal Reserve
System, any Federal reserve bank may discount or purchase bills of
exchange payable at sight or on demand which grow out of the domestic
shipment or the exportation of nonperishable, readily marketable
agricultural and other staples 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 promptly
for collection, and demand for payment shall be made with reasonable
promptness after the arrival of such staples at their destination:
Provided further, That no such bill shall in any event be held by or for
the account of a Federal reserve bank for a period in excess of ninety
days. In discounting such bills Federal reserve banks may compute the
interest to be 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.
(Dec. 23, 1913, ch. 6, Sec. 13 (par.), as added Mar. 4, 1923, ch. 252,
title IV, Sec. 402, 42 Stat. 1479; amended May 29, 1928, ch. 884, 45
Stat. 975; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)
Codification
Section is comprised of the fourth par. of section 13 of act Dec.
23, 1913, as amended. The act of Mar. 4, 1923, split the second par. of
section 13, as amended in 1916 (39 Stat. 752), into two pars., the first
of which constitutes the first par. of section 343 of this title and the
second as this section, making it the third par. of section 13. However,
the third par. became the fourth par. when act July 21, 1932, added a
new par. to follow the second par. For further details, see Codification
note set out under section 343 of this title. For classification to this
title of other pars. of section 13, see Codification note set out under
section 342 of this title.
Amendments
1928--Act May 29, 1928, amended part of first sentence preceding
proviso.
Change of Name
Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve
Board to Board of Governors of the Federal Reserve System.
Section Referred to in Other Sections
This section is referred to in sections 84, 412, 461 of this title.
