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F E D E R A L RESERVE B A N K
O F N E W YORK
Bill
Circular No. 355
March 28, 1921.
Department
Bankers Acceptances
Evidences of Eligibility
To each Bank, Trust Company and Other Accepting
in the Second Federal Reserve District:
Banker
We desire to direct your attention to the provisions of Subdivision (d) of Section 15 of Federal Reserve
Board Regulation A, Series of 1920, with respect to the evidences of eligibility of bankers acceptances for
purchase or discount by Federal Reserve Banks required by said regulation. I t provides:
"A Federal Reserve Bank must be satisfied, either by reference to the acceptance itself, or
otherwise, that it is eligible for rediscount. The bill itself should be drawn so as to evidence the
character of the underlying transaction, but if it is not so drawn, evidence of eligibility may consist
of a stamp or certificate affixed by the acceptor in form satisfactory to the Federal Reserve Bank."
T h e following forms of the certificates referred to have been approved by the Federal Reserve Board
and all Federal Reserve Banks:
Underlying
Transaction
Domestic Shipments:
Form of Certificate
"At time of acceptance, this bill was accompanied by shipping documents evidencing the domestic shipment of
(name of commodity) from {point of shipment) to (place
of destination).
(Name of Acceptor)"
Import and Export Transactions:
"This acceptance arises out of a transaction involving
1 exportation \ o f (name °f commodity)
shipment) to (place of destination).
from (point of
(Name of Acceptor)"
Warehouse Secured Credit:
"This bill was secured at the time of acceptance by independent warehouse, terminal, or other similar receipt conveying security title to (name of readily marketable staple)
stored in (country where stored) and the acceptor will
remain secured throughout the life of the bill.
(Name of Acceptor)"
We would, therefore, suggest t h a t you adopt these three forms of certificate and use the appropriate
one to evidence the eligibility of any bill accepted by you which is not drawn in such terms as will disclose
on the face of the bill all of the information as to the character of the underlying transaction t h a t is indicated
in the appropriate form of certificate quoted above.
I t should be observed that the Regulations, Series of 1920, require evidence of eligibility on bills
accepted by national banks as well as other member banks, nonmember banks, and bankers.
Very truly yours,
B E N J . STRONG,
Governor
@FedFRASER