Commercial Banking Practice Under the Federal Reserve Act; the Law And Regulations, the Informal Rulings of the Federal Reserve Board, And the Opinions of Counsel Governing Bank Acceptances, Rediscounts, Advances, And Open Market Transactions of the Feder

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(Informal Ruling, Page 406, December, 1915, Bulletin.) MATURITY Statutory Provisions "Any Federal reserve bank may discount accept- Three momht.
ances . . . which have a maturity at the time of dis- count of not more than three months' sight, ex- clusive of days of grace." (Federal Reserve Act, Section IS.) Regulations of Federal Reserve Board Federal reserve banks may discount for their member banks "bankers' acceptances which have a maturity at the time of discount of not more than three mont
...hs' sight, exclusive of days of grace.
»> (Regulations of Federal Reserve Board, Regulation A, Series of 1917, B.) Opinions and Rulings Acceptance business of Federal reserve banks is not restricted "to the original transactions only," if Re"**"!'- the transaction has not been liquidated. When the first acceptance matures, member bank may renew the acceptance, and there is no reason why a Fed- eral reserve bank may not discount such renewed acceptance, although a Federal reserve bank must not engage in advance to make such discount of a renewal.


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