§ 372. — Bankers' acceptances.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC372]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 372. Bankers' acceptances
(a) Institutions; drafts and bills of exchange; types
Any member bank and any Federal or State branch or agency of a
foreign bank subject to reserve requirements under section 3105 of this
title (hereinafter in this section referred to as ``institutions''), may
accept drafts or bills of exchange drawn upon it having not more than
six months' sight to run, exclusive of days of grace--
(i) which grow out of transactions involving the importation or
exportation of goods;
(ii) which grow out of transactions involving the domestic
shipment of goods; or
(iii) which are secured at the time of acceptance by a warehouse
receipt or other such document conveying or securing title covering
readily marketable staples.
(b) Ratio limit of bills to unimpaired capital stock and surplus
Except as provided in subsection (c) of this section, no institution
shall accept such bills, or be obligated for a participation share in
such bills, in an amount equal at any time in the aggregate to more than
150 per centum of its paid up and unimpaired capital stock and surplus
or, in the case of a United States branch or agency of a foreign bank,
its dollar equivalent as determined by the Board under subsection (h) of
this section.
(c) Authorization for special ratio limit; foreign banks
The Board, under such conditions as it may prescribe, may authorize,
by regulation or order, any institution to accept such bills, or be
obligated for a participation share in such bills, in an amount not
exceeding at any time in the aggregate 200 per centum of its paid up and
unimpaired capital stock and surplus or, in the case of a United States
branch or agency of a foreign bank, its dollar equivalent as determined
by the Board under subsection (h) of this section.
(d) Ratio limit for domestic transactions
Notwithstanding subsections (b) and (c) of this section, with
respect to any institution, the aggregate acceptances, including
obligations for a participation share in such acceptances, growing out
of domestic transactions shall not exceed 50 per centum of the aggregate
of all acceptances, including obligations for a participation share in
such acceptances, authorized for such institution under this section.
(e) Ratio limit for single entity; foreign banks; security
No institution shall accept bills, or be obligated for a
participation share in such bills, whether in a foreign or domestic
transaction, for any one person, partnership, corporation, association
or other entity in an amount equal at any time in the aggregate to more
than 10 per centum of its paid up and unimpaired capital stock and
surplus, or, in the case of a United States branch or agency of a
foreign bank, its dollar equivalent as determined by the Board under
subsection (h) of this section, unless the institution is secured either
by attached documents or by some other actual security growing out of
the same transaction as the acceptance.
(f) Exception for participation agreements
With respect to an institution which issues an acceptance, the
limitations contained in this section shall not apply to that portion of
an acceptance which is issued by such institution and which is covered
by a participation agreement sold to another institution.
(g) Definitions by Board
In order to carry out the purposes of this section, the Board may
define any of the terms used in this section, and, with respect to
institutions which do not have capital or capital stock, the Board shall
define an equivalent measure to which the limitations contained in this
section shall apply.
(h) Dollar equivalent of foreign bank paid-up capital stock and surplus
Any limitation or restriction in this section based on paid-up and
unimpaired capital stock and surplus of an institution shall be deemed
to refer, with respect to a United States branch or agency of a foreign
bank, to the dollar equivalent of the paid-up capital stock and surplus
of the foreign bank, as determined by the Board, and if the foreign bank
has more than one United States branch or agency, the business
transacted by all such branches and agencies shall be aggregated in
determining compliance with the limitation or restriction.
(Dec. 23, 1913, ch. 6, Sec. 13 (par.), 38 Stat. 264; Mar. 3, 1915, ch.
93, 38 Stat. 958; Sept. 7, 1916, ch. 461, 39 Stat. 752; June 21, 1917,
ch. 32, Sec. 5, 40 Stat. 235; Aug. 23, 1935, ch. 614, title II,
Sec. 203(a), 49 Stat. 704; Pub. L. 97-290, title II, Sec. 207, Oct. 8,
1982, 96 Stat. 1239.)
References in Text
Section 3105 of this title, referred to in subsec. (a), was in the
original a reference to section 7 of the International Banking Act of
1978, Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 620, which enacted 3105
of this title and amended section 13 of the Federal Reserve Act (12
U.S.C. 347d).
Codification
Section is comprised of the seventh par. of section 13 of act Dec.
23, 1913, as amended. The seventh par. constituted the fifth par. of
section 13 in 1916 (39 Stat. 752), became the sixth par. in 1923 (42
Stat. 1478), and became the seventh 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.
The seventh par. of section 13 of the Federal Reserve Act [this
section] as amended in 1982 by Pub. L. 97-290 contained lettered
subpars. (A) through (H). For purposes of codification those lettered
subpars. (A) through (H) have been translated as subsecs. (a) through
(h), ``paragraph'' has been translated as ``section'', and
``subparagraph'' has been translated as ``subsection''.
Amendments
1982--Subsec. (a). Pub. L. 97-290 designated first sentence of
existing provisions as subsec. (a), inserted reference to foreign banks
and their subdivisions, further designated the specifications for drafts
or bills as cl. (i)-(iii), and in cl. (ii) as so designated, struck out
requirement that shipping documents conveying or securing title be
attached at acceptance.
Subsec. (b). Pub. L. 97-290 designated second independent clause of
second sentence of existing provisions as subsec. (b), substituted ``no
institution shall accept such bills, or be obligated for a participation
share in such bills, in an amount equal at any time in the aggregate to
more than 150 per centum of its paid up and unimpaired capital stock and
surplus'' for ``no bank shall accept such bills to an amount equal at
any time in the aggregate to more than one-half of its paid-up and
unimpaired capital stock and surplus'' and inserted provisions relating
to a United States branch or agency of a foreign bank.
Subsec. (c). Pub. L. 97-290 designated first proviso of second
sentence of existing provisions as subsec. (c), struck out provision
applying the subsec. to all banks regardless of capital stock or
surplus, substituted a limit of 200 per centum for 100 per centum, and
inserted provisions relating to a United States branch or agency of a
foreign bank.
Subsec. (d). Pub. L. 97-290 designated second proviso of second
sentence of existing provisions as subsec. (d), substituted
``Notwithstanding subsections (b) and (c) of this section, with respect
to any institution, the aggregate acceptances, including obligations for
a participation share in such acceptances, growing out of domestic
transactions shall not exceed 50 per centum of the aggregate of all
acceptances, including obligations for a participation share in such
acceptances, authorized for such institution under this section.'' for
``Provided further, That the aggregate of acceptances growing out of
domestic transactions shall in no event exceed 50 per centum of such
capital stock and surplus.''
Subsec. (e). Pub. L. 97-290 designated first independent clause of
second sentence of existing provisions as subsec. (e), substituted
``institution'' for ``member bank'' and ``bank'' and ``accept bills, or
be obligated for a participation share in such bills, whether in a
foreign or domestic transaction, for any one person, partnership,
corporation, association or other entity in an amount'' for ``accept,
whether in a foreign or domestic transaction, for any one person,
company, firm, or corporation to an amount'', and inserted provisions
relating to a United States branch or agency of a foreign bank.
Subsecs. (f) to (h). Pub. L. 97-290 added subsecs. (f) to (h).
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.
