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Pennsylvania Statutes Title 7 P.S. Banks and Banking § 308. Acceptances

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Commercial transactions--An institution may, subject to regulation by the department, accept drafts drawn upon it arising out of transactions involving:

(i) the import or export of goods,

(ii) the domestic shipment of goods, or

(iii) the storage of readily marketable staples, if secured by documents of title covering such staples.

(b) Limits on acceptances under subsection (a)--The aggregate amount of acceptances under subsection (a) of this section shall not at any time exceed:

(i) for all such acceptances on behalf of one customer, fifteen percent of capital, surplus and undivided profits, exclusive of any acceptance secured by documents of title or other security growing out of the same transaction as the acceptance, and

(ii) for all such acceptances:

(A) one hundred fifty percent of capital, surplus and undivided profits, or

(B) with the prior written approval of the department, two hundred percent of capital, surplus and undivided profits, so long as acceptances growing out of domestic transactions do not exceed one hundred fifty percent of capital, surplus and undivided profits.

(c) Dollar exchange--An institution may, with the prior written approval of the department, accept drafts having not more than three months sight to run drawn upon it by banks or bankers in foreign countries, or in dependencies or insular possessions of the United States, for the purpose of creating dollar exchange as required by the usages of trade where the drafts are drawn in an aggregate amount which shall not at any time exceed:

(i) for all such acceptances on behalf of a single bank or banker, fifteen percent of capital, surplus and undivided profits, and

(ii) for all such acceptances, one hundred fifty percent of capital, surplus and undivided profits.

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Cite this article: FindLaw.com - Pennsylvania Statutes Title 7 P.S. Banks and Banking § 308. Acceptances - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-7-ps-banks-and-banking/pa-st-sect-7-308/

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