12 U.S.C. § 351 — Obligations of cooperative marketing association as issued or drawn for agricultural purposes

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 191 words · no verdicts yet

in plain englishAI-generated · not legal advice

Notes and drafts from farm cooperatives count as being for an "agricultural purpose" under two other sections. This applies if the money helps members with farming, pays them for crops, or covers marketing costs. Listing these uses doesn't make any other cooperative paper ineligible for rediscount.

This section says that notes, drafts, bills of exchange, or acceptances issued by farm cooperative marketing associations count as being for an "agricultural purpose," as that phrase is used in two related sections of this title. That's true if the money from these notes was (or will be) used by the cooperative in any of these ways: advanced to its members for farming; used to pay members for crops or other farm products they delivered to the co-op; or spent by the co-op on costs of grading, processing, packing, preparing for market, or marketing its members' farm products. The section lists these specific uses to make clear they qualify a co-op's paper for rediscounting (a bank re-lending against it). But listing them doesn't mean any other kind of paper from these cooperatives -- paper that already qualifies for rediscount for some other reason -- becomes ineligible.

the actual law source: uscode.house.gov ↗public domain

Notes, drafts, bills of exchange, or acceptances issued or drawn by cooperative marketing associations composed of producers of agricultural products shall be deemed to have been issued or drawn for an agricultural purpose, within the meaning of sections 348 and 349 to 352 of this title, if the proceeds thereof have been or are to be advanced by such association to any members thereof for an agricultural purpose, or have been or are to be used by such association in making payments to any members thereof on account of agricultural products delivered by such members to the association, or if such proceeds have been or are to be used by such association to meet expenditures incurred or to be incurred by the association in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product handled by such association for any of its members: Provided, That the express enumeration in this section of certain classes of paper of cooperative marketing associations as eligible for rediscount shall not be construed as rendering ineligible any other class of paper of such associations which is now eligible for rediscount.

Source credit: (Dec. 23, 1913, ch. 6, § 13A (par.), formerly § 13a, as added Mar. 4, 1923, ch. 252, title IV, § 404, 42 Stat. 1480; renumbered § 13A, Pub. L. 102–242, title I, § 142(e)(1), Dec. 19, 1991, 105 Stat. 2281.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 42 Stat. 1480
1991Amended · Pub. L. 102-242 · 105 Stat. 2281

A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.

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