§ 347. — Advances to member banks on their notes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC347]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER IX--POWERS AND DUTIES OF FEDERAL RESERVE BANKS
Sec. 347. Advances to member banks on their notes
Any Federal reserve bank may make advances for periods not exceeding
fifteen days to its member banks on their promissory notes secured by
the deposit or pledge of bonds, notes, certificates of indebtedness, or
Treasury bills of the United States, or by the deposit or pledge of
debentures or other such obligations of Federal intermediate credit
banks which are eligible for purchase by Federal reserve banks under
section 350 of this title, or by the deposit or pledge of bonds issued
under the provisions of subsection (c) of section 1463 \1\ of this
title; and any Federal reserve bank may make advances for periods not
exceeding ninety days to its member banks on their promissory notes
secured by such notes, drafts, bills of exchange, or bankers'
acceptances as are eligible for rediscount or for purchase by Federal
reserve banks under the provisions of this chapter or secured by such
obligations as are eligible for purchase under section 355 of this
title. All such advances shall be made at rates to be established by
such Federal reserve banks, such rates to be subject to the review and
determination of the Board of Governors of the Federal Reserve System.
If any member bank to which any such advance has been made shall, during
the life or continuance of such advance, and despite an official warning
of the reserve bank of the district or of the Board of Governors of the
Federal Reserve System to the contrary, increase its outstanding loans
secured by collateral in the form of stocks, bonds, debentures, or other
such obligations, or loans made to members of any organized stock
exchange, investment house, or dealer in securities, upon any
obligation, note, or bill, secured or unsecured, for the purpose of
purchasing and/or carrying stocks, bonds, or other investment securities
(except obligations of the United States) such advance shall be deemed
immediately due and payable, and such member bank shall be ineligible as
a borrower at the reserve bank of the district under the provisions of
this section for such period as the Board of Governors of the Federal
Reserve System shall determine: Provided, That no temporary carrying or
clearance loans made solely for the purpose of facilitating the purchase
or delivery of securities offered for public subscription shall be
included in the loans referred to in this section.
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\1\ See References in Text note below.
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(Dec. 23, 1913, ch. 6, Sec. 13 (par.), as added Sept. 7, 1916, ch. 461,
39 Stat. 753; amended May 19, 1932, ch. 191, Sec. 6, 47 Stat. 160; May
12, 1933, ch. 25, title II, Sec. 28, 48 Stat. 46; June 16, 1933, ch. 89,
Sec. 9, 48 Stat. 180; Jan. 31, 1934, ch. 7, Sec. 16(a), 48 Stat. 348;
Apr. 27, 1934, ch. 168, Sec. 7(a), 48 Stat. 646; Aug. 23, 1935, ch. 614,
title II, Sec. 203(a), 49 Stat. 704; Pub. L. 87-353, Sec. 3(c), Oct. 4,
1961, 75 Stat. 773; Pub. L. 90-505, Sec. 3(a), Sept. 21, 1968, 82 Stat.
856.)
References in Text
Section 1463 of this title, referred to in text, was repealed by
Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat. 648.
Codification
Section is comprised of the eighth par. of section 13 of act Dec.
23, 1913, as amended. The eighth par. constituted the sixth par. of
section 13 in 1916 (39 Stat. 752, 753), became the seventh par. in 1923
(42 Stat. 1478), and became the eighth par. in 1932 (47 Stat. 715). For
further details, see Codification notes under sections 343 and 344 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
1968--Pub. L. 90-505 added promissory notes of members banks secured
by such obligations as are eligible for purchase under section 355 of
this title to the list of types of promissory notes of member banks on
which the Federal reserve bank may make advances for periods not
exceeding 90 days.
1961--Pub. L. 87-353 struck out provision authorizing any Federal
reserve bank to make advances to its member banks on their promissory
notes secured by the deposit or pledge of Federal Farm Mortgage
Corporation bonds issued under the Federal Farm Mortgage Corporation
Act.
1934--Act Apr. 27, 1934, inserted first phrase preceding the
semicolon in first sentence.
Act Jan. 31, 1934, inserted second phrase preceding the semicolon in
first sentence.
1933--Act June 16, 1933, amended section generally.
Act May 12, 1933, added Federal farm-loan bonds as security for
advances.
1932--Act May 19, 1932, inserted clause in first sentence which
begins ``or by the deposit or pledge of debentures''.
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.
