Title 12 — Banks and Banking
Chapter 3 — Federal Reserve System
§ 347. Advances to member banks on their notes
Statutory text
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.
Footnotes
- 1 See References in Text note below.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 64–6 § 13 · 39 Stat. 2
Enacted · 12 U.S.C. § 347
Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 753
Source evidence
Code source credit
Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 753Pub. L. 87–353 § 3(c) · 75 Stat. 773
Struck · 12 U.S.C. § 347
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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(c) The first sentence of the eighth paragraph of section 13 of the Federal Reserve Act, as amended (12 U.S.C. 347), is amended by 38 Stat. 958. striking out “or by the deposit or pledge of Federal Farm Mortgage Corporation bonds issued under the Federal Farm Mortgage Corporation Act,”.Pub. L. 90–505 § 3(a) · 82 Stat. 856
Added · 12 U.S.C. § 347
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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(a) The first sentence of the eighth full paragraph of section 48 Stat. 180. 13 of the Federal Reserve Act (12 U.S.C. 347) is amended by inserting “, or secured by such obligations as are eligible for purchase under 38 Stat. 264; 80 Stat. 825. 12 USC 355. section 14(b) of this Act” immediately before the period at the end thereof.
2 of 3 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
Section 1463 of this title, referred to in text, was repealed by Pub. L. 89–554, § 8(a), , 80 Stat. 648.
This chapter, referred to in text, was in the original “this Act”, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under section 226 of this title and Tables.
Codification
Section is comprised of the eighth par. of section 13 of act , 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.
Amendments1932–1968 · 5 rounds
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 , inserted first phrase preceding the semicolon in first sentence.
Act , inserted second phrase preceding the semicolon in first sentence.
1933
Act , amended section generally.
Act , added Federal farm-loan bonds as security for advances.
1932
Act , inserted clause in first sentence which begins “or by the deposit or pledge of debentures”.
Statutory Notes and Related Subsidiaries
Change of Name
Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
Credits
1913–1968 · 9 acts
- 1913Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 753
- 1932amended May 19, 1932, ch. 191, § 6, 47 Stat. 160
- 1933May 12, 1933, ch. 25, title II, § 28, 48 Stat. 46
- 1933June 16, 1933, ch. 89, § 9, 48 Stat. 180
- 1934Jan. 31, 1934, ch. 7, § 16(a), 48 Stat. 348
- 1934Apr. 27, 1934, ch. 168, § 7(a), 48 Stat. 646
- 1935Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704
- 1961Pub. L. 87–353, § 3(c), , 75 Stat. 773
- 1968Pub. L. 90–505, § 3(a), , 82 Stat. 856.
Show as published
(Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 753; amended May 19, 1932, ch. 191, § 6, 47 Stat. 160; May 12, 1933, ch. 25, title II, § 28, 48 Stat. 46; June 16, 1933, ch. 89, § 9, 48 Stat. 180; Jan. 31, 1934, ch. 7, § 16(a), 48 Stat. 348; Apr. 27, 1934, ch. 168, § 7(a), 48 Stat. 646; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 87–353, § 3(c), , 75 Stat. 773; Pub. L. 90–505, § 3(a), , 82 Stat. 856.)