Aggregate Amount Rediscountable For One Bank
Description
This section is from the book "Modern Banking; Commercial And Credit Paper", by Frederick Silver. Also available from Amazon: Modern banking; Commercial and credit paper.
Aggregate Amount Rediscountable For One Bank
Indebtedness Of National Bank
No national banking association shall at any time be indebted, or in any way liable, in an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of liabilities incurred under the provisions of the Federal Reserve Act.
Rediscount Subject To Regulations Of Federal Reserve Board
The discount and rediscount and the purchase and sale by any Federal Reserve bank of any bills receivable and of domestic and foreign bills of exchange and of acceptances are subject to such restrictions, limitations, and regulations as may be imposed by the Federal Reserve Board.
Opinions Of Counsel And Rulings
Relating to Aggregate Amount of Promissory Notes Rediscount-able for One Bank
No Limitation By Law Of Commercial Paper Rediscountable
The law places no limitation upon the amount of commercial paper which a member bank may rediscount with a Federal Reserve bank, but leaves this to the judgment of the officers of the Federal Reserve bank.
Discretion Of Federal Reserve Bank
A national bank may not borrow as bills payable in excess of its capital stock, according to Section 5202 of the Revised Statutes, but under the Federal Reserve Act, it may rediscount actual items of paper in its possession to any amount in the discretion of the Federal Reserve bank in its district.
Continue to:
My Books
