Sec. 13A. **[**discount of agricultural paper**]**
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## Sec. 13A **[**discount of agricultural paper**]** Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice, and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may, subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, discount notes, drafts, and bills of exchange issued or drawn for an agricultural purpose, or based upon live stock, and having a maturity, at the time of discount, exclusive of days of grace, not exceeding nine months, and such notes, drafts, and bills of exchange may be offered as collateral security for the issuance of Federal reserve notes under the provisions of section 16 of this Act: *Provided, *That notes, drafts, and bills of exchange with maturities in excess of six months shall not be eligible as a basis for the issuance of Federal reserve notes unless secured by warehouse receipts or other such negotiable documents conveying or securing title to readily marketable staple agricultural products or by chattel mortgage upon live stock which is being fattened for market. **[**[12 U.S.C. 348](/us/usc/t12/s348)**]** ### **[**2.
Rediscounts for, and discount of notes payable to, Federal Intermediate Credit Banks**]** That any Federal reserve bank may, subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, rediscount such notes, drafts, and bills for any Federal Intermediate Credit Bank, except that no Federal reserve bank shall rediscount for a Federal Intermediate Credit Bank any such note or obligation which bears the indorsement of a nonmember State bank or trust company which is eligible for membership in the Federal reserve system, in accordance with section 9 of this Act.
Any Federal reserve bank may also, subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, discount notes payable to and bearing the indorsement of any Federal intermediate credit bank, covering loans or advances made by such bank pursuant to the provisions of section 202(a) of Title II of the Federal Farm Loan Act, as amended (U.S.C., title 12, ch. 8, sec. 1031), which have maturities at the time of discount of not more than nine months, exclusive of days of grace, and which are secured by notes, drafts, or bills of exchange eligible for rediscount by Federal Reserve banks. **[**[12 U.S.C. 349](/us/usc/t12/s349)**]** ### **[**3.
Purchase and sale of debentures of Federal Intermediate Credit Banks**]** Any Federal reserve bank may also buy and sell debentures and other such obligations issued by a Federal Intermediate Credit Bank or by a National Agricultural Credit Corporation, but only to the same extent as and subject to the same limitations as those upon which it may buy and sell bonds issued under Title I of the Federal Farm Loan Act. **[**[12 U.S.C. 350](/us/usc/t12/s350)**]** ### **[**4. Paper of cooperative marketing associations**]** Notes, drafts, bills of exchange or acceptances issued or drawn by cooperative marketing associations composed of producers of agricultural products shall be deemed to have been issued or drawn for an agricultural purpose, within the meaning of this section, if the proceeds thereof have been or are to be advanced by such association to any members thereof for an agricultural purpose, or have been or are to be used by such association in making payments to any members thereof on account of agricultural products delivered by such members to the association, or if such proceeds have been or are to be used by such association to meet expenditures incurred or to be incurred by the association in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product handled by such association for any of its members: *Provided, *That the express enumeration in this paragraph of certain classes of paper of cooperative marketing associations as eligible for rediscount shall not be construed as rendering ineligible any other class of paper of such associations which is now eligible for rediscount. **[**[12 U.S.C. 351](/us/usc/t12/s351)**]** ### **[**5.
Limitations**]** The Board of Governors of the Federal Reserve System may, by regulation, limit to a percentage of the assets of a Federal reserve bank the amount of notes, drafts, acceptances, or bills having a maturity in excess of three months, but not exceeding six months, exclusive of days of grace, which may be discounted by such bank, and the amount of notes, drafts, bills, or acceptances having a maturity in excess of six months, but not exceeding nine months, which may be rediscounted by such bank. **[**[12 U.S.C. 352](/us/usc/t12/s352)**]** **[**1.
Purchase and sale of cable transfers, bank acceptances and bills of exchange**]**
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U.S. Code
- Discount of obligations given for agricultural purposes or based upon livestock; collateral security for Federal reserve notes§ 348
- Rediscount for intermediate credit banks of obligations given for agricultural purposes; discount of notes made pursuant to section 1031§ 349
- Purchase and sale of debentures and like obligations of intermediate credit banks and agricultural credit corporations§ 350
- Obligations of cooperative marketing association as issued or drawn for agricultural purposes§ 351
- Limitation on amount of obligations of certain maturities which may be discounted and rediscounted§ 352
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Sec. 13A
**[**discount of agricultural paper**]**
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