US Code

Public Law 119-88 (05/04/2026)

12 U.S.C. § 347

Advances to member banks on their notes

section 350 of this title1

1 See References in Text note below.
section 355 of this titleProvidedAny 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 , or by the deposit or pledge of bonds issued under the provisions of subsection (c) of section 1463  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 . 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: , 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.

Dec. 23, 1913, ch. 6, § 13 Sept. 7, 1916, ch. 461 39 Stat. 753 May 19, 1932, ch. 191, § 6 47 Stat. 160 May 12, 1933, ch. 25 48 Stat. 46 June 16, 1933, ch. 89, § 9 48 Stat. 180 Jan. 31, 1934, ch. 7, § 16(a) 48 Stat. 348 Apr. 27, 1934, ch. 168, § 7(a) 48 Stat. 646 Aug. 23, 1935, ch. 614 49 Stat. 704 Pub. L. 87–353, § 3(c)75 Stat. 773 Pub. L. 90–505, § 3(a)82 Stat. 856 ( (par.), as added , ; amended , ; , title II, § 28, ; , ; , ; , ; , title II, § 203(a), ; , , ; , , .)

Editorial Notes

References in Text

Section 1463 of this titlePub. L. 89–554, § 8(a)80 Stat. 648 , referred to in text, was repealed by , , .

act Dec. 23, 1913, ch. 6 38 Stat. 251 section 226 of this titleThis chapter, referred to in text, was in the original “this Act”, meaning , , known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under and Tables.

Codification

39 Stat. 752 42 Stat. 1478 47 Stat. 715 section 342 of this titleSection is comprised of the eighth par. of section 13 of act , as amended. The eighth par. constituted the sixth par. of section 13 in 1916 (, 753), became the seventh par. in 1923 (), and became the eighth par. in 1932 (). For further details, see Codification notes under sections 343 and 344 of this title. For classification to this title of other pars. of section 13, see Codification note set out under .

Amendments

Pub. L. 90–505section 355 of this title1968— added promissory notes of members banks secured by such obligations as are eligible for purchase under to the list of types of promissory notes of member banks on which the Federal reserve bank may make advances for periods not exceeding 90 days.

Pub. L. 87–3531961— struck out provision authorizing any Federal reserve bank to make advances to its member banks on their promissory notes secured by the deposit or pledge of Federal Farm Mortgage Corporation bonds issued under the Federal Farm Mortgage Corporation Act.

1934—Act , inserted first phrase preceding the semicolon in first sentence.

Act , inserted second phrase preceding the semicolon in first sentence.

1933—Act , amended section generally.

Act , added Federal farm-loan bonds as security for advances.

1932—Act , inserted clause in first sentence which begins “or by the deposit or pledge of debentures”.

Statutory Notes and Related Subsidiaries

Change of Name

Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.