Browse Arkansas Code titles and sections
12 U.S.C. § 347b — Advances to individual member banks on time or demand notes; maturities; time notes secured by mortgage loans covering one-to-four family residences
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time or demand notes having maturities of not more than four months and which are secured to the satisfaction of such Federal Reserve bank. Notwithstanding the foregoing, any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time notes having such maturities as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Such advances shall bear interest at a rate equal to the lowest discount rate in effect at such Federal Reserve bank on the date of such note.
**(b) Limitations on advances**
(1) **Limitation on extended periods** — Except as provided in paragraph (2), no advances to any undercapitalized depository institution by any Federal Reserve bank under this section may be outstanding for more than 60 days in any 120-day period.
(2) **Viability exception**
(A) *In general* — If—
(i) the head of the appropriate Federal banking agency certifies in advance in writing to the Federal Reserve bank that any depository institution is viable; or
(ii) the Board conducts an examination of any depository institution and the Chairman of the Board certifies in writing to the Federal Reserve bank that the institution is viable,
the limitation contained in paragraph (1) shall not apply during the 60-day period beginning on the date such certification is received.
(B) *Extensions of period* — The 60-day period may be extended for additional 60-day periods upon receipt by the Federal Reserve bank of additional written certi
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 347b
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: fce7f0e93fa239d0381e818af6eeb303d312de9adbd35a31478e3791d052aa38. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_2a888cefc48b3dbd949ba613
Source file: Laws/federal/codes/united-states-code/title-12/section-347b-advances-to-individual-member-banks-on-time-or-demand-notes-maturities-t--ac705e8072.md
Pages: Not recorded – Not recorded
Passage SHA-256: a078a2acf43db4938631eff44bb17299c8d33d673546f87a689991967c580455
Source location: Title 12, Chapter 3, § 347b; chapter-003-federal-reserve-system.md
Stored source content
**(a) In general** Any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time or demand notes having maturities of not more than four months and which are secured to the satisfaction of such Federal Reserve bank. Notwithstanding the foregoing, any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time notes having such maturities as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Such advances shall bear interest at a rate equal to the lowest discount rate in effect at such Federal Reserve bank on the date of such note.
**(b) Limitations on advances**
(1) **Limitation on extended periods** — Except as provided in paragraph (2), no advances to any undercapitalized depository institution by any Federal Reserve bank under this section may be outstanding for more than 60 days in any 120-day period.
(2) **Viability exception**
(A) *In general* — If—
(i) the head of the appropriate Federal banking agency certifies in advance in writing to the Federal Reserve bank that any depository institution is viable; or
(ii) the Board conducts an examination of any depository institution and the Chairman of the Board certifies in writing to the Federal Reserve bank that the institution is viable,
the limitation contained in paragraph (1) shall not apply during the 60-day period beginning on the date such certification is received.
(B) *Extensions of period* — The 60-day period may be extended for additional 60-day periods upon receipt by the Federal Reserve bank of additional written certifications under subparagraph (A) with respect to each such additional period.
(C) *Authority to issue a certificate of viability may not be delegated* — The authority of the head of any agency to issue a written certification of viability under this paragraph may not be delegated to any other person.
(D) *Extended advances subject to paragraph (3)* — Notwithstanding paragraph (1), an undercapitalized depository institution which does not have a certificate of viability in effect under this paragraph may have advances outstanding for more than 60 days in any 120-day period if the Board elects to treat—
(i) such institution as critically undercapitalized under paragraph (3); and
(ii) any such advance as an advance described in subparagraph (A)(i) of paragraph (3).
(3) **Advances to critically undercapitalized depository institutions**
(A) *Liability for increased loss* — Notwithstanding any other provision of this section, if—
(i) in the case of any critically undercapitalized depository institution—
(I) any advance under this section to such institution is outstanding without payment having been demanded as of the end of the 5-day period beginning on the date the institution becomes a critically undercapitalized depository institution; or
(II) any new advance is made to such institution under this section after the end of such period; and
(ii) after the end of that 5-day period, the Deposit Insurance Fund of the Federal Deposit Insurance Corporation incurs a loss exceeding the loss that the Corporation would have incurred if it had liquidated that institution as of the end of that period,
the Board shall, subject to the limitations in subparagraph (B), be liable to the Federal Deposit Insurance Corporation for the excess loss, without regard to the terms of the advance or any collateral pledged to secure the advance.
(B) *Limitation on excess loss* — The liability of the Board under subparagraph (A) shall not exceed the lesser of the following:
(i) The amount of the loss the Board or any Federal Reserve bank would have incurred on the increases in the amount of advances made after the 5-day period referred to in subparagraph (A) if those increased advances had been unsecured.
(ii) The interest received on the increases in the amount of advances made after the 5-day period referred to in subparagraph (A).
(C) *Federal Reserve to pay obligation* — The Board shall pay the Federal Deposit Insurance Corporation the amount of any liability of the Board under subparagraph (A).
(D) *Report* — The Board shall report to the Congress on any excess loss liability it incurs under subparagraph (A), as limited by subparagraph (B)(i), and the reasons therefore, not later than 6 months after incurring the liability.
(4) **No obligation to make advances** — A Federal Reserve bank shall have no obligation to make, increase, renew, or extend any advance or discount under this chapter to any depository institution.
(5) **Definitions**
(A) *Appropriate Federal banking agency* — The term “appropriate Federal banking agency” has the same meaning as in [section 1813 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813&num=0&edition=prelim).
(B) *Critically undercapitalized* — The term “critically undercapitalized” has the same meaning as in section 1831o of this title.
(C) *Depository institution* — The term “depository institution” has the same meaning as in [section 1813 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813&num=0&edition=prelim).
(D) *Undercapitalized depository institution* — The term “undercapitalized depository institution” means any depository institution which—
(i) is undercapitalized, as defined in section 1831o of this title; or
(ii) has a composite CAMEL rating of 5 under the Uniform Financial Institutions Rating System (or an equivalent rating by any such agency under a comparable rating system) as of the most recent examination of such institution.
(E) *Viable* — A depository institution is “viable” if the Board or the appropriate Federal banking agency determines, giving due regard to the economic conditions and circumstances in the market in which the institution operates, that the institution—
(i) is not critically undercapitalized;
(ii) is not expected to become critically undercapitalized; and
(iii) is not expected to be placed in conservatorship or receivership.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
The Board of Governors of the Federal Reserve System shall be authorized and empowered:
**(a) Examination of accounts and affairs of banks; publication of weekly statements; reports of liabilities and assets of depository institutions; covered institutions**
(1) To examine at its discretion the accounts, books, and affairs of each Federal reserve bank and of each member bank and to require such statements and reports as it may deem necessary. The said board shall publish once each week a statement showing the condition of each Federal reserve bank and a consolidated statement for all Federal reserve banks. Such statements shall show in detail the assets and liabilities of the Federal reserve banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature, and maturities of the paper and other investments owned or held by Federal reserve banks.
(2) To require any depository institution specified in this paragraph to make, at such intervals as the Board may prescribe, such reports of its liabilities and assets as the Board may determine to be necessary or desirable to enable the Board to discharge its responsibility to monitor and control monetary and credit aggregates. Such reports shall be made (A) directly to the Board in the case of member banks and in the case of other depository institutions whose reserve requirements under sections 461, 463, 464, 465, and 466 of this title exceed zero, and (B) for all other reports to the Board through the (i) Federal Deposit Insurance Corporation in the case of insured State savings associations that are insured depository institutions (as defined in [section 1813 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 248
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power—
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 24
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Deposit insurance**
(1) **Insured amounts payable**
(A) *In general* — The Corporation shall insure the deposits of all insured depository institutions as provided in this chapter.
(B) *Net amount of insured deposit* — The net amount due to any depositor at an insured depository institution shall not exceed the standard maximum deposit insurance amount as determined in accordance with subparagraphs (C), (D), (E) and (F) and paragraph (3).
(C) *Aggregation of deposits* — For the purpose of determining the net amount due to any depositor under subparagraph (B), the Corporation shall aggregate the amounts of all deposits in the insured depository institution which are maintained by a depositor in the same capacity and the same right for the benefit of the depositor either in the name of the depositor or in the name of any other person, other than any amount in a trust fund described in paragraph (1) or (2) of [section 1817(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1817/i&num=0&edition=prelim) or any funds described in [section 1817(i)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1817/i/3&num=0&edition=prelim).
(D) *Coverage for certain employee benefit plan deposits*
(i) *Pass-through insurance* — The Corporation shall provide pass-through deposit insurance for the deposits of any employee benefit plan.
(ii) *Prohibition on acceptance of benefit plan deposits* — An insured depository institution that is not well capitalized or adequately capitalized may not accept employee benefit plan deposits.
(iii) *Definitions* — For purposes of this subparagraph, the following definitions shall apply:
(I) *Capital standards* — The terms “well ca
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1821
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter—
**(a) Definitions of bank and related terms**
(1) **Bank** — The term “bank”—
(A) means any national bank and State bank, and any Federal branch and insured branch;
(B) includes any former savings association.
(2) **State bank** — The term “State bank” means any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which—
(A) is engaged in the business of receiving deposits, other than trust funds (as defined in this section); and
(B) is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia,
including any cooperative bank or other unincorporated bank the deposits of which were insured by the Corporation on the day before August 9, 1989.
(3) **State** — The term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
**(b) Definition of savings associations and related terms**
(1) **Savings association** — The term “savings association” means—
(A) any Federal savings association;
(B) any State savings association; and
(C) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association.
(2) **Federal savings association** — The term “Federal savings association” means any Federal savings association or Federal savings bank which is chartered under [section 1464 of t
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1813
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
The short title of the Act of December 23, 1913, ch. 6, 38 Stat. 251, shall be the “Federal Reserve Act.”
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 226
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Notwithstanding any other provision of law, the Corporation, the Board of Governors of the Federal Reserve System, the Resolution Trust Corporation, any other agency, department, and instrumentality of the United States, and any corporation owned or controlled by the United States may not, directly or indirectly, make any payment or provide any assistance, guarantee, or transfer under this chapter or any other provision of law in connection with any insured depository institution which would have the direct or indirect effect of satisfying, in whole or in part, any claim against the institution for obligations of the institution which would constitute deposits as defined in section 1813(l) of this title but for subparagraphs (A) and (B) of section 1813(l)(5) of this title.
**(b) Exception** Subsection (a) shall not apply to any payment, assistance, guarantee, or transfer made or provided by the Corporation if the Board of Directors determines in writing that such action is not inconsistent with any requirement of [section 1823(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1823/c&num=0&edition=prelim).
**(c) Discount window lending** No provision of this section shall be construed as prohibiting any Federal Reserve bank from making advances or otherwise extending credit pursuant to the Federal Reserve Act [[12 U.S.C. 221](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim) et seq.] to any insured depository institution to the extent that such advance or extension of credit is consistent with the conditions and limitations imposed under section 10B of such Act [[12 U.S.C. 347b](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section34
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1831r
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Upon receiving the consent of not less than five members of the Board of Governors of the Federal Reserve System, any Federal reserve bank may make advances, in such amount as the board of directors of such Federal reserve bank may determine, to groups of five or more member banks within its district, a majority of them independently owned and controlled, upon their time or demand promissory notes, provided the bank or banks which receive the proceeds of such advances as herein provided have no adequate amounts of eligible and acceptable assets available to enable such bank or banks to obtain sufficient credit accommodations from the Federal reserve bank through rediscounts or advances other than as provided in section 347b 11 See References in Text note below. of this title. The liability of the individual banks in each group must be limited to such proportion of the total amount advanced to such group as the deposit liability of the respective banks bears to the aggregate deposit liability of all banks in such group, but such advances may be made to a lesser number of such member banks if the aggregate amount of their deposit liability constitutes at least 10 per centum of the entire deposit liability of the member banks within such district. Such banks shall be authorized to distribute the proceeds of such loans to such of their number and in such amount as they may agree upon, but before so doing they shall require such recipient banks to deposit with a suitable trustee, representing the entire group, their individual notes made in favor of the group protected by such collateral security as may be agreed upon. Any Federal reserve bank making such advance shall charge interest or discount thereon at a rate not less than 1 per centum above its discount rate in effect
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 347a
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
No member bank shall keep on deposit with any depository institution which is not authorized to have access to Federal Reserve advances under section 347b 11 See References in Text note below. of this title a sum in excess of 10 per centum of its own paid-up capital and surplus.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 463
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Federal Reserve account and services** The Board of Governors may authorize a Federal Reserve Bank to establish and maintain an account for a designated financial market utility and provide the services listed in section 11A(b) of the Federal Reserve Act ([12 U.S.C. 248a(b)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section248a/b&num=0&edition=prelim)) and deposit accounts under the first undesignated paragraph of section 13 of the Federal Reserve Act ([12 U.S.C. 342](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section342&num=0&edition=prelim)) to the designated financial market utility that the Federal Reserve Bank is authorized under the Federal Reserve Act [[12 U.S.C. 221](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim) et seq.] to provide to a depository institution, subject to any applicable rules, orders, standards, or guidelines prescribed by the Board of Governors.
**(b) Advances** The Board of Governors may authorize a Federal Reserve bank under section 10B of the Federal Reserve Act ([12 U.S.C. 347b](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section347b&num=0&edition=prelim)) to provide to a designated financial market utility discount and borrowing privileges only in unusual or exigent circumstances, upon the affirmative vote of a majority of the Board of Governors then serving (or such other number in accordance with the provisions of section 11(r)(2) of the Federal Reserve Act ([12 U.S.C. 248(r)(2)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section248/r/2&num=0&edition=prelim)) 11 So in original. Another closing parenthesis probably should appear. after consultation with the Secretary, and upo
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5468
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 127
TITLE 12—BANKS AND BANKING
§ 347b
bank making such advance shall charge interest
or discount thereon at a rate not less than 1 per
centum above its discount rate in effect at the
time of making such advance. No such note
upon which advances are made by a Federal re-
serve bank under this section shall be eligible
under section 412 of this title as collateral secu-
rity for Federal reserve notes.
No obligations of any foreign government, in-
dividual, partnership, association, or corpora-
tion organized under the laws thereof shall be
eligible as collateral security for advances under
this section.
Member banks are authorized to obligate
themselves in accordance with the provisions of
this section.
(Dec. 23, 1913, ch. 6, § 10A, formerly § 10(a), as
added Feb. 27, 1932, ch. 58, § 1, 47 Stat. 56; amend-
ed Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat.
704; renumbered § 10A, Pub. L. 102–242, title I,
§ 142(a)(1), Dec. 19, 1991, 105 Stat. 2279.)
Editorial Notes
REFERENCES IN TEXT
Section 347b of this title, referred to in first par., was
in the original a reference to section 10(b), meaning
section 10(b) of the Federal Reserve Act. Section 10(b)
of that Act was renumbered section 10B by Pub. L.
102–242, title I, § 142(a)(2), Dec. 19, 1991, 105 Stat. 2279,
without a corresponding amendment to this section.
Statutory Notes and Related Subsidiaries
CHANGE OF NAME
Section 203(a) of act Aug. 23, 1935, changed name of
Federal Reserve Board to Board of Governors of the
Federal Reserve System.
§ 347b. Advances to individual member banks on
time or demand notes; maturities; time notes
secured by mortgage loans covering one-to-
four family residences
(a) In general
Any Federal Reserve bank, under rules and
regulations prescribed by the
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 347b
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.