Chapter 79. To amend sections 5200 and 5202 of the Revised Statutes of the United States as amended by Acts of June 22, 1906, and September 24, 1918
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CHAP. 79.— An Act To amend sections 5200 and 5202 of the Revised Statutes of the United States as amended by Acts of June 22, 1906, and September 24, 1918. October 22, 1919. [[H. R. 7478](/us/bill/66/hr/7478).] [[Public, No. 62](/us/pl/66/62).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* That section 5200 of the National banks.Loans and discounts by.Revised Statutes of the United States as amended by the Acts of June 22, 1906, and September 24, 1918, be further amended to read as follows:
Limit of loans to one persons, etc.[R. S., sec. 5200, p. 1065](/us/rs/s5200/p1065), amended.Vol. 40, p. 967, amended. " “Sec. 5200. The total liabilities to any association of any person of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed 10 per centum of the amount of the capital stock of such association, actually paid in and unimpaired, *Provisos.*Exceptions.Bills of exchange secured by bills of lading, etc.and 10 per centum of its unimpaired surplus fund: *Provided, however,* That
(1)the discount of bills of exchange drawn in good faith against actually existing values, including drafts and bills of exchange secured by shipping documents conveying or securing title to goods shipped, and including demand obligations when secured by documents covering commodities in actual process of shipment, Acceptances of foreign bills.vol. 40, p. 235.Commercial discounts.and also including bankers’ acceptances of the kinds described in section 13 of the Federal Reserve Act,
(2)the discount of commercial or business paper actually owned by the person, company, corporation, Notes secured by bills of lading, etc., on nonperishable staples, etc.Value of security.or firm negotiating the same,
(3)the discount of notes secured by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily marketable nonperishable staples, including live stock, when the actual market value of the property securing the obligation is not at any time less than 115 per centum of the face amount of the notes secured by such documents and when such property is fully covered by insurance, Notes with Federal securities as collateral.and
(4)the discount of any note or notes secured by not less than a like face amount of bonds or notes of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as money borrowed within the meaning of Maximum permitted with collateral of Federal securities.this section. The total liabilities to any association, of any person or of any corporation, or firm, or company, or the several members thereof upon any note or notes purchased or discounted by such association and secured by bonds, notes, or certificates of indebtedness as described in
(4)hereof shall not exceed (except to the extent permitted by rules and regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) 10 per centum of such capital stock and surplus fund of such association Secured by bills of lading, etc.and the total liabilities to any association of any person or or of any corporation, or firm, or company, or the several members thereof for money borrowed, including the liabilities upon notes secured in the manner described under
(3)hereof, except transactions (1), (2), and (4), shall not at any time exceed 25 per centum of the 297amount of the association’s paid-in and unimpaired capital stock and surplus. The exception made under
(3)hereof shall not apply Limitation for perishable staples.to the notes of any one person, corporation or firm or company, or the several members thereof for more than six months in any consecutive twelve months.” " Sec. 2. That section 5202 of the Revised Statutes of the United Indebtedness of national banks.States as amended by section 20, Title I, of the Act approved April 5, 1918, be further amended so as to read as follows: " “Sec. 5202. No national banking association shall at any time be Limitation of.[R. S., sec. 5202, p. 1006](/us/rs/s5202/p1006), amended.Vol. 40, p. 512, amended.Exceptions.indebted, or in any way liable, to 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 demands of the nature following: " “First. Notes of circulation. Circulating notes. “Second. Moneys deposited with or collected by the association. Deposits. “Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. Drafts, etc. “Fourth. Liabilities to the stockholders of the association for dividends and reserve profits. Dividends, etc. “Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. Federal reserve liabilities. “Sixth. Liabilities incurred under the provisions of the War Finance Corporation Act. War Finance Corporation liabilities.Vol. 40, p. 1313.Accepted foreign bills of exchange.Vol. 40, p. 235. “Seventh. Liabilities created by the indorsement of accepted bills of exchange payable abroad actually owned by the indorsing bank and discounted at home or abroad.” " " Approved, October 22, 1919.