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U.S. Code as of:
01/19/04
Section 347. Advances to member banks on their notes
Any Federal reserve bank may make advances for periods not
exceeding fifteen days to its member banks on their promissory
notes secured by the deposit or pledge of bonds, notes,
certificates of indebtedness, or Treasury bills of the United
States, or by the deposit or pledge of debentures or other such
obligations of Federal intermediate credit banks which are eligible
for purchase by Federal reserve banks under section 350 of this
title, or by the deposit or pledge of bonds issued under the
provisions of subsection (c) of section 1463 (!1) of this title;
and any Federal reserve bank may make advances for periods not
exceeding ninety days to its member banks on their promissory notes
secured by such notes, drafts, bills of exchange, or bankers'
acceptances as are eligible for rediscount or for purchase by
Federal reserve banks under the provisions of this chapter or
secured by such obligations as are eligible for purchase under
section 355 of this title. All such advances shall be made at rates
to be established by such Federal reserve banks, such rates to be
subject to the review and determination of the Board of Governors
of the Federal Reserve System. If any member bank to which any such
advance has been made shall, during the life or continuance of such
advance, and despite an official warning of the reserve bank of the
district or of the Board of Governors of the Federal Reserve System
to the contrary, increase its outstanding loans secured by
collateral in the form of stocks, bonds, debentures, or other such
obligations, or loans made to members of any organized stock
exchange, investment house, or dealer in securities, upon any
obligation, note, or bill, secured or unsecured, for the purpose of
purchasing and/or carrying stocks, bonds, or other investment
securities (except obligations of the United States) such advance
shall be deemed immediately due and payable, and such member bank
shall be ineligible as a borrower at the reserve bank of the
district under the provisions of this section for such period as
the Board of Governors of the Federal Reserve System shall
determine: Provided, That no temporary carrying or clearance loans
made solely for the purpose of facilitating the purchase or
delivery of securities offered for public subscription shall be
included in the loans referred to in this section.
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