§ 373. — Acceptance of drafts or bills drawn by banks in foreign countries or dependencies of United States for purpose of dollar exchange.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC373]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 373. Acceptance of drafts or bills drawn by banks in
foreign countries or dependencies of United States for purpose
of dollar exchange
Any member bank may accept drafts or bills of exchange drawn upon it
having not more than three months' sight to run, exclusive of days of
grace, drawn under regulations to be prescribed by the Board of
Governors of the Federal Reserve System by banks or bankers in foreign
countries or dependencies or insular possessions of the United States
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 Federal reserve
banks in such amounts and subject to such regulations, restrictions, and
limitations as may be prescribed by the Board of Governors of the
Federal Reserve System: Provided, however, That no member bank shall
accept such drafts or bills of exchange referred to \1\ this paragraph
for any one bank to an amount exceeding in the aggregate ten per centum
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 one-half of its paid-up
and unimpaired capital and surplus.
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\1\ So in original. Probably should be followed by ``in''.
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(Dec. 23, 1913, ch. 6, Sec. 13 (par.), as added Sept. 7, 1916, ch. 461,
39 Stat. 754; amended Aug. 23, 1935, ch. 614, Sec. 203(a), 49 Stat.
704.)
Codification
Section is based on the twelfth par. of section 13 of act Dec. 23,
1913, as amended. The twelfth par. constituted the tenth par. of section
13 in 1916 (39 Stat. 754), became the eleventh par. in 1923 (42 Stat.
1478), and became the twelfth par. in 1932 (47 Stat. 715). For further
details, see Codification notes under sections 342 to 344 of this title.
Change of Name
Section 203(a) of act Aug. 23, 1935, changed the name of the Federal
Reserve Board to Board of Governors of the Federal Reserve System.
Section Referred to in Other Sections
This section is referred to in section 412 of this title.
