(a) A draft that has not more than six months' sight to run, exclusive of days of
grace, and is drawn to finance the purchase of goods with maturity in accordance with
the original terms of purchase, or is secured by shipping documents transferring or
securing title to goods, or by receipt of a licensed or bonded warehouse or elevator
transferring or securing title to readily marketable staples;
(b) A draft that has no more than three months' sight to run, exclusive of days of
grace, and is drawn by a bank outside the continental limits of the United States
for the purpose of furnishing dollar exchange for trade.
(2) A state bank may issue letters of credit, but, unless the authority conferred
to draw upon the bank or its correspondents is limited to such drafts as a bank is
authorized by this section to accept, the amount of the credit outstanding at any
one time shall be deemed to be a loan to the person for whose account the credit was
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.