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FEDERAL RESERVE BANK
OF NEW YORK

[

Circular No. 565 "I
August 8, 1923

Reference to Circular No. 564 J

Maturity and Interest on Paper Falling Due on Friday,
August 10, 1923
To all Member Banks
in the Second Federal Reserve District:

As you are aware, Friday, August 10, 1923, has been declared a legal holiday.
In this connection your attention is directed to Section 85 of the Uniform Negotiable
Instruments Law (substantially adopted by Section 145 of the New York Law), which
reads as follows:
"See. 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 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."
It appears that under the foregoing provision the maturity of obligations falling due
on Friday, August 10, a legal holiday, is extended to Monday, August 13, 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 August 10, unless prepayment is made
before August 13, additional discount for the days after August 10 will be charged at
our current rate of 4}/£ per cent, per annum.




Very truly yours,
BENJ. STRONG,
Governor