Acceptance At The Instance Of Exporter

If a drawee bank accepts at the instance of the purchaser of goods, the purchaser having a contract to export such goods, the draft would grow out of a transaction involving the export of goods, and could be accepted by the drawee bank.

Goods Purchased Subsequent To Acceptance

Goods may be purchased and shipped subsequent to the time of the first acceptance, provided there is a definite bona fide contract for the shipment of the goods within a specified and reasonable time.

Acceptances Against Future Importation Of Goods

A national bank may accept a draft, drawn for the purpose of importing goods, whether or not the sale of the goods under consideration has actually been consumated at the time of the acceptance of the draft, if the accepting bank is assured that the proceeds of the draft will ultimately be used solely for the purpose of financing a transaction involving the importation of goods. It is not necessary that the goods to be sold be identified at the time of acceptance. The accepting bank, however, must be reasonably sure that the draft is drawn for the purpose of financing a transaction involving the importation or exportation of goods, and that its proceeds will be used for that purpose.

Delay In Shipment Of Goods Is Immaterial

The fact that there is a temporary delay in actual shipment of goods is immaterial, as was held in a case of a national bank which accepted a draft drawn upon it in settlement of advances for cotton being accumulated by cotton buyers for export.

Acceptance Of Drafts When Export Contract Not Fulfilled

A member bank would be justified, if fully secured, in accepting drafts drawn by a local cotton buying firm having a contract to sell to foreign buyers, if the transaction, after having been made in good faith, ultimately resulted in the sale of the cotton to an American instead of a foreign purchaser. It was assumed in this ruling that the bank had received permission from the Federal Reserve Board to accept drafts or bills of exchange drawn upon it; that the cotton buyers had a contract to sell cotton to a firm in Liverpool; that they held the cotton subject to shipping receipt of the Liverpool firm; and that because of freight rates and shipping conditions, the Liverpool firm changed its policy and directed the sale of the cotton.

Drafts Drawn Against Collateral Of Acceptances

An acceptance house which has purchased an acceptance based on the importation or exportation of goods cannot reimburse itself by drawing a bill upon a national bank, pledging as collateral security for the bill the original acceptance. The new bill cannot properly be said to grow out of the original export transaction. Such a draft drawn under the above circumstances, because it is not an acceptance growing out of a transaction involving the importation or exportation of goods, nor drawn by a bank or banker located in a foreign country, nor growing out of a transaction involving the domestic shipment or storage of goods, is ineligible.

Acceptance Agreements Of Dealers In Same Goods For Export And Domestic Sale

Where a dealer who is engaged in the purchase of the same character and class of goods for export and for domestic purposes desires to finance the sale and purchase of the goods to be exported, his agreement with a member bank accepting such draft should show that he has a contract for the export of the goods; that the total amount of drafts under such credit will not exceed the aggregate amount involved in the export transaction; that the proceeds of the drafts are to be used in connection with the export transaction; and that the proceeds of the sale of goods exported will be applied in payment of the acceptances unless the dealer has in the meantime placed the bank in funds to meet them at maturity, or has secured such acceptances in the manner required of domestic acceptances.

Acceptances Against Gold Coin And Bullion

Such acceptances are eligible, as gold coin and gold bars may be properly considered as goods.