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F E D E R A L RESERVE BANK
O F N E W YORK

\ C i r c u l " No* 4 1 7 1
[November 9, 1921J

Discount Department
•^

Maturity and Interest on Paper Falling Due on Friday,
November 11, 1921
To all Member Banks
in the Second Federal Reserve District:
As you are aware, Friday, November 11, 1921, has been declared a legal holiday
throughout this district.

I n this connection your attention is directed to Section 85 of

the Uniform Negotiable Instruments Law (Section 145 New York Law), which reads as
follows:
"Sec. 85. Time of Maturity.—Every negotiable instrument is payable at the time
fixed therein without grace. When the day of maturity falls upon Sunday, or a holiday,
the instrument is payable on the next succeeding business day. Instruments falling due or
becoming payable on Saturday are to be presented for payment on the next succeeding
business day, except that instruments payable on demand may, at the option of the holder,
be presented for payment before twelve o'clock noon on Saturday when that entire day
is not a holiday."
I t appears that under the foregoing provision the maturity of obligations falling due
on Friday, November 11, a legal holiday, is extended to Monday, November 14, and it
follows that interest or discount runs to the latter day. Therefore, on all rediscounts and
advances made by this bank which fall due on November 11, unless prepayment is made
before November 14, additional discount for the days after November 11 will be charged
at our current rate of 43^ per cent, per annum.




Very truly yours,
B E N J . STRONG,

Governor


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102