12 U.S.C. § 344 — Discount or purchase of bills to finance ag-

Page 124 TITLE 12—BANKS AND BANKING § 344 (II) the amount of interest, fees, and other revenue or items of value received in ex- change for the assistance; and (III) the expected or final cost to the tax- payers of such assistance. (D) The information required to be submitted to Congress under subparagraph (C) related to— (i) the identity of the participants in an emergency lending program or facility com- menced under this paragraph; (ii) the amounts borrowed by each partici- pant in any such program or facility; (iii) identifying details concerning the assets or collateral held by, under, or in connection with such a program or facility, shall be kept confidential, upon the written re- quest of the Chairman of the Board, in which case such information shall be made available only to the Chairpersons or Ranking Members of the Committees described in subparagraph (C). (E) If an entity to which a Federal reserve bank has provided a loan under this paragraph becomes a covered financial company, as defined in section 201 of the Dodd-Frank Wall Street Re- form and Consumer Protection Act [12 U.S.C. 5381], at any time while such loan is out- standing, and the Federal reserve bank incurs a realized net loss on the loan, then the Federal reserve bank shall have a claim equal to the amount of the net realized loss against the cov- ered entity, with the same priority as an obliga- tion to the Secretary of the Treasury under sec- tion 210(b) of the Dodd-Frank Wall Street Re- form and Consumer Protection Act [12 U.S.C. 5390(b)]. (Dec. 23, 1913, ch. 6, § 13 (pars.), 38 Stat. 263; Sept. 7, 1916, ch. 461, 39 Stat. 752; Mar. 4, 1923, ch. 252, title IV, § 402, 42 Stat. 1478; July 21, 1932, ch. 520, § 210, 47 Stat. 715; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, § 322, 49 Stat. 704, 714; Pub. L. 102–242, title IV, § 473, Dec. 19, 1991, 105 Stat. 2386; Pub. L. 111–203, title XI, § 1101(a), July 21, 2010, 124 Stat. 2113.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in the first par., was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For com- plete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. The Dodd-Frank Wall Street Reform and Consumer Protection Act, referred to in par. (3)(B)(ii), (iii), is Pub. L. 111–203, July 21, 2010, 124 Stat. 1376. Title II of the Act is classified principally to subchapter II (§ 5381 et seq.) of chapter 53 of this title. For complete classi- fication of the Act to the Code, see Short Title note set out under section 5301 of this title and Tables. CODIFICATION Section is comprised of the second par. and par. (3) of section 13 of act Dec. 23, 1913. Act Mar. 4, 1923, split the second par. of section 13, as amended in 1916 (39 Stat. 752), into two pars., the first of which constitutes the first par. of this section and the second of which con- stitutes section 344 of this title. Act July 21, 1932, added the second par. of this section which was designated to follow the second par. of section 13. Pub. L. 111–203, § 1101(a)(1), designated the second par. as par. (3). For classification to this title of other pars. of section 13, see Codification note set out under section 342 of this title. AMENDMENTS 2010—Pub. L. 111–203, § 1101(a)(1)–(4), designated sec- ond par. as par. (3)(A), substituted ‘‘any participant in any program or facility with broad-based eligibility’’ for ‘‘any individual, partnership, or corporation’’, ‘‘bill of exchange,’’ for ‘‘bill of exchange for an individual or a partnership or corporation’’, and ‘‘such participant in any program or facility with broad-based eligibility’’ for ‘‘such individual, partnership, or corporation’’. Par. (3)(A). Pub. L. 111–203, § 1101(a)(5), which directed substitution of ‘‘for any participant in any program or facility with broad-based eligibility’’ for ‘‘for individ- uals, partnerships, corporations’’, was executed by making the substitution for ‘‘for individuals, partner- ships, or corporations’’, to reflect the probable intent of Congress. Par. (3)(B) to (E). Pub. L. 111–203, § 1101(a)(6), added subpars. (B) to (E). 1991—Pub. L. 102–242 struck out ‘‘of the kinds and ma- turities made eligible for discount for member banks under other provisions of this chapter’’ after first ref- erence to ‘‘bills of exchange’’ in second par. 1935—Act Aug. 23, 1935, § 322, substituted words imme- diately preceding proviso for ‘‘indorsed and otherwise secured to the satisfaction of the Federal reserve bank.’’ 1932—Act July 21, 1932, added second par. 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. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. CONSTRUCTION OF DIV. N OF PUB. L. 116–260 Pub. L. 116–260, div. N, title X, § 1006, Dec. 27, 2020, 134 Stat. 2147, provided that: ‘‘Except as expressly set forth in paragraphs (1) and (2) of subsection (c) of section 4029 of the CARES Act [15 U.S.C. 9063(c)(1), (2)], as added by this Act, nothing in this Act [div. N of Pub. L. 116–260, see Tables for classification] shall be construed to mod- ify or limit the authority of the Board of Governors of the Federal Reserve System under section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) as of the day be- fore the date of enactment of the CARES Act (Public Law 116–136) [Mar. 27, 2020].’’ REFERENCES TO THIRD UNDESIGNATED PARAGRAPH DEEMED TO BE REFERENCES TO PARAGRAPH (3) Pub. L. 111–203, title XI, § 1101(c), July 21, 2010, 124 Stat. 2115, provided that: ‘‘On and after the date of en- actment of this Act [July 21, 2010], any reference in any provision of Federal law to the third undesignated paragraph of section 13 of the Federal Reserve Act (12 U.S.C. 343) shall be deemed to be a reference to section 13(3) of the Federal Reserve Act [12 U.S.C. 343(3)], as so designated by this section.’’ § 344. Discount or purchase of bills to finance ag- ricultural shipments Upon the indorsement of any of its member banks, which shall be deemed a waiver of de- mand, notice, and protest by such bank as to its own indorsement exclusively, and subject to reg- ulations and limitations to be prescribed by the Board of Governors of the Federal Reserve Sys- tem, any Federal reserve bank may discount or Page 125 TITLE 12—BANKS AND BANKING § 347 1 See References in Text note below. purchase bills of exchange payable at sight or on demand which grow out of the domestic ship- ment or the exportation of nonperishable, read- ily marketable agricultural and other staples and are secured by bills of lading or other ship- ping documents conveying or securing title to such staples: Provided, That all such bills of ex- change shall be forwarded promptly for collec- tion, and demand for payment shall be made with reasonable promptness after the arrival of such staples at their destination: Provided fur- ther, That no such bill shall in any event be held by or for the account of a Federal reserve bank for a period in excess of ninety days. In dis- counting such bills Federal reserve banks may compute the interest to be deducted on the basis of the estimated life of each bill and adjust the discount after payment of such bills to conform to the actual life thereof. (Dec. 23, 1913, ch. 6, § 13 (par.), as added Mar. 4, 1923, ch. 252, title IV, § 402, 42 Stat. 1479; amended May 29, 1928, ch. 884, 45 Stat. 975; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of the fourth par. of section 13 of act Dec. 23, 1913, as amended. The act of Mar. 4, 1923, split the second par. of section 13, as amended in 1916 (39 Stat. 752), into two pars., the first of which con- stitutes the first par. of section 343 of this title and the second as this section, making it the third par. of sec- tion 13. However, the third par. became the fourth par. when act July 21, 1932, added a new par. to follow the second par. For further details, see Codification note set out under section 343 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. AMENDMENTS 1928—Act May 29, 1928, amended part of first sentence preceding proviso. 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. § 345. Rediscount of notes, drafts, and bills for member banks; limitation of amount The aggregate of notes, drafts, and bills upon which any person, copartnership, association, or corporation is liable as maker, acceptor, indorser, drawer, or guarantor, rediscounted for any member bank, shall at no time exceed the amount for which such person, copartnership, association, or corporation may lawfully become liable to a national banking association under the terms of section 84 of this title: Provided, however, That nothing in this section shall be construed to change the character or class of paper now eligible for rediscount by Federal re- serve banks. (Dec. 23, 1913, ch. 6, § 13 (par.), 38 Stat. 264; Mar. 3, 1915, ch. 93, 38 Stat. 958; Sept. 7, 1916, ch. 461, 39 Stat. 752; Apr. 12, 1930, ch. 140, 46 Stat. 162.) Editorial Notes CODIFICATION Section is comprised of the fifth par. of section 13 of act Dec. 23, 1913, as amended. The fifth par. constituted the third par. of section 13 in 1916 (39 Stat. 752), became the fourth par. in 1923 (42 Stat. 1478), and became the fifth par. in 1932 (47 Stat. 715). For further details, see Codification notes set out 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 sec- tion 342 of this title. AMENDMENTS 1930—Act Apr. 12, 1930, among other changes, inserted proviso. § 346. Discount of acceptances Any Federal reserve bank may discount ac- ceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than ninety days’ sight, exclusive of days of grace, and which are indorsed by at least one member bank: Provided, That such accept- ances if drawn for an agricultural purpose and secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable sta- ples may be discounted with a maturity at the time of discount of not more than six months’ sight exclusive of days of grace. (Dec. 23, 1913, ch. 6, § 13 (par.), 38 Stat. 264; Mar. 3, 1915, ch. 93, 38 Stat. 958; Sept. 7, 1916, ch. 461, 39 Stat. 752; Mar. 4, 1923, ch. 252, title IV, § 403, 42 Stat. 1479.) Editorial Notes REFERENCES IN TEXT Words ‘‘hereinafter described’’ are from the sixth par. of section 13 of the Federal Reserve Act, see Codifica- tion note below. Reference could be to acceptances de- scribed in the remaining paragraphs of section 13, which are contained in sections 82, 347, 347c, and 372 of this title, or to acceptances described in subsequent sections of the Federal Reserve Act, sections 14 et seq. of act Dec. 23, 1913. CODIFICATION Section is comprised of the sixth par. of section 13 of act Dec. 23, 1913, as amended. The sixth par. constituted the fourth par. of section 13 in 1916 (39 Stat. 752), be- came the fifth par. in 1923 (42 Stat. 1478), and became the sixth 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. § 347. Advances to member banks on their notes Any Federal reserve bank may make advances for periods not exceeding fifteen days to its member banks on their promissory notes se- cured 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