1. A state bank shall have power to accept drafts drawn upon it having not more than six months after sight to run, exclusive of days of grace:
a. Which grow out of transactions involving the importation or exportation of goods.
b. Which grow out of transactions involving the domestic shipment of goods, provided documents of title are attached thereto at the time of acceptance.
c. In which a security interest is perfected at the time of acceptance covering readily marketable staples.
2. A state bank shall not accept such drafts in an amount which exceeds at any time in the aggregate for all drawers fifty percent of its capital and surplus. The superintendent may authorize a state bank to accept drafts in an amount not exceeding at any time in the aggregate for all drawers one hundred percent of its capital and surplus but the aggregate of acceptance growing out of domestic transactions shall in no event exceed fifty percent of such capital and surplus.
3. A state bank may, with the prior approval of the superintendent, accept drafts, having not more than three months after 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 furnishing 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 for all such acceptance on behalf of a single bank or banker ten percent of capital and surplus, and for all such acceptances, fifty percent of capital and surplus.
[C24, 27, 31, 35, 39, § 9272, 9273, 9274; C46, 50, 54, 58, 62, 66, § 528.71, 528.72, 528.73; C71, 73, 75, 77, 79, 81, § 524.903]
Referred to in § 524.904, 524.1602
Iowa General Assembly
Search: Iowa Code 1995
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