12 U.S.C. § 347c — Advances to individuals, partnerships, and corporations; security; interest rate
submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 118 words · no verdicts yet
A Federal Reserve Bank may lend money to a person, partnership, or corporation. The loan must be backed by U.S. government bonds, or by debt the government fully guarantees. These loans cannot last more than 90 days, and the Reserve Bank sets the interest rate, subject to review by the Federal Reserve Board.
This section has no lettered subsections; it is one connected rule.
Who can act: Subject to limits, restrictions, and regulations set by the Board of Governors of the Federal Reserve System, any Federal Reserve Bank may advance money to an individual, partnership, or corporation.
Security required: The advance must be secured by the borrower's own promissory note, backed by either (1) direct obligations of the United States, or (2) obligations that are direct obligations of, or are fully guaranteed as to principal and interest by, an agency of the United States.
Term and interest: These advances cannot run longer than 90 days. Interest rates are set from time to time by the Federal Reserve Bank itself, but are subject to review and final determination by the Board of Governors.
Subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe, any Federal reserve bank may make advances to any individual, partnership, or corporation on the promissory notes of such individual, partnership, or corporation secured by direct obligations of the United States or by any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by any agency of the United States. Such advances shall be made for periods not exceeding 90 days and shall bear interest at rates fixed from time to time by the Federal reserve bank, subject to the review and determination of the Board of Governors of the Federal Reserve System.
Source credit: (Dec. 23, 1913, ch. 6, § 13 (par.), as added Mar. 9, 1933, ch. 1, title IV, § 403, 48 Stat. 7; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 90–505, § 3(b), Sept. 21, 1968, 82 Stat. 856.)
- 1913Enacted · Act of Dec. 23, 1913, ch. 6 · 48 Stat. 7
- 1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 704
- 1968Amended · Pub. L. 90-505 · 82 Stat. 856
A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.
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