12 U.S.C. § 374 — Acting as agent for nonmember bank in

Page 150 TITLE 12—BANKS AND BANKING § 373 1 So in original. Probably should be followed by ‘‘in’’. Subsec. (b). Pub. L. 97–290 designated second inde- pendent clause of second sentence of existing provi- sions as subsec. (b), substituted ‘‘no institution shall accept such bills, or be obligated for a participation share in such bills, in an amount equal at any time in the aggregate to more than 150 per centum of its paid up and unimpaired capital stock and surplus’’ for ‘‘no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid- up and unimpaired capital stock and surplus’’ and in- serted provisions relating to a United States branch or agency of a foreign bank. Subsec. (c). Pub. L. 97–290 designated first proviso of second sentence of existing provisions as subsec. (c), struck out provision applying the subsec. to all banks regardless of capital stock or surplus, substituted a limit of 200 per centum for 100 per centum, and inserted provisions relating to a United States branch or agency of a foreign bank. Subsec. (d). Pub. L. 97–290 designated second proviso of second sentence of existing provisions as subsec. (d), substituted ‘‘Notwithstanding subsections (b) and (c), with respect to any institution, the aggregate accept- ances, including obligations for a participation share in such acceptances, growing out of domestic transactions shall not exceed 50 per centum of the aggregate of all acceptances, including obligations for a participation share in such acceptances, authorized for such institu- tion under this section.’’ for ‘‘Provided further, That the aggregate of acceptances growing out of domestic transactions shall in no event exceed 50 per centum of such capital stock and surplus.’’ Subsec. (e). Pub. L. 97–290 designated first inde- pendent clause of second sentence of existing provi- sions as subsec. (e), substituted ‘‘institution’’ for ‘‘member bank’’ and ‘‘bank’’ and ‘‘accept bills, or be ob- ligated for a participation share in such bills, whether in a foreign or domestic transaction, for any one per- son, partnership, corporation, association or other enti- ty in an amount’’ for ‘‘accept, whether in a foreign or domestic transaction, for any one person, company, firm, or corporation to an amount’’, and inserted provi- sions relating to a United States branch or agency of a foreign bank. Subsecs. (f) to (h). Pub. L. 97–290 added subsecs. (f) to (h). 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. § 373. Acceptance of drafts or bills drawn by banks in foreign countries or dependencies of United States for purpose of dollar ex- change Any member bank may accept drafts or bills of exchange drawn upon it having not more than three months’ sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Board of Governors of the Federal Re- serve System by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of fur- nishing dollar exchange as required by the us- ages of trade in the respective countries, de- pendencies, or insular possessions. Such drafts or bills may be acquired by Federal reserve banks in such amounts and subject to such regu- lations, restrictions, and limitations as may be prescribed by the Board of Governors of the Fed- eral Reserve System: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to 1 this paragraph for any one bank to an amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of one-half of its paid-up and unimpaired capital and surplus. (Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 754; amended Aug. 23, 1935, ch. 614, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is based on the twelfth par. of section 13 of act Dec. 23, 1913, as amended. The twelfth par. con- stituted the tenth par. of section 13 in 1916 (39 Stat. 754), became the eleventh par. in 1923 (42 Stat. 1478), and became the twelfth par. in 1932 (47 Stat. 715). For fur- ther details, see Codification notes under sections 342 to 344 of this title. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed the name of the Federal Reserve Board to Board of Governors of the Federal Reserve System. § 374. Acting as agent for nonmember bank in getting discounts from reserve bank No member bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this chapter, except by permission of the Board of Governors of the Fed- eral Reserve System. (Dec. 23, 1913, ch. 6, § 19(e), formerly § 19 (par. 8), 38 Stat. 270; June 21, 1917, ch. 32, § 10, 40 Stat. 239; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; renumbered § 19(e), Pub. L. 89–597, § 2(b), Sept. 21, 1966, 80 Stat. 824.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of part of subsec. (e), formerly eighth par., of section 19 of act Dec. 23, 1913, as redesig- nated by Pub. L. 89–597. Remainder of subsec. (e) of such section 19 is classified to section 463 of this title. 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. § 374a. Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties No member bank shall act as the medium or agent of any nonbanking corporation, partner-