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x-3007 AN ACT TO AMEND SECTION 11 OF THE ACT APPROVED DECEMBER 23, 1913, KNOL'N AS THE FEDERAL RESERVE ACT/ AS AMENDED. BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, That Section 11 of t h e Act approved December 23, 1 $ ! ] , known a s t h e Federal Reserve Act, a s amendsd, be f u r t h e r amended by s t r i k i n g out t h e whole of s u b s e c t i o n (m), and by s u b s t i t u t i n g t h e r e f o r a s u b s e c t i o n t o read a s f o l l o w s : 11 (m) Upon t h e a f f i r m a t i v e v o t e of not l e s s t h a n f i v e cf i t s members, the Federal Reserve Board s h a l l have power t o permit Federal r e s e r v e banks to discount f o r any member bank n o t e s , d r a f t s , or b i l l s of exchange b e a r i n g t h e s i g n a t u r e or endorsement of any one borrower i n excess of t h e amount p e r m i t t e d by s e c t i o n nine and s e c t i o n t h i r t e e n of t h i s Act, but i n no case t o exceed'twenty per centjm of t h e member b a n k ' s c a p i t a l and s u r p l u s : Provided, however, That a l l such n o t e s , d r a f t s , or b i l l s of exchange discounted f o r any member bank i n excess of the amount p e r m i t t e d under such s e c t i o n s s h a l l be secured by not l e s s than a l i k e f a c e amount of bonis or n o t e s cf the United S t a t e s i s s u e d s i n c e A p r i l t w e n t y f o u r t h , n i n e t e e n hundred and seventeen, f o r which t h e borrower e h a l l i n good f a i t h p r i o r t o January 1 , 1S21, have paid or a g r e e t o pay not l e s s than t h e f u l l f a c e amount t h e r e o f , or c e r t i f i c a t e s of i n d e b t e d n e s s of t h e United S t a t e s : provided f u r t h e r , That t h e p r o v i s i o n s of t h i s s u b s e c t i o n (m) s h a l l not be o p e r a t i v e a f t e r December t h i r t y - f i r s t , n i n e t e e n hundred and twenty-one J |
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