--- kind: "range" citation: "12 U.S.C. §§ 353–359" title: "12" from: "353" to: "359" count: 7 release: "119-102" url: "https://uscodex.org/usc/12/353..359" --- # §353. Purchase and sale of cable transfers, acceptances and bills Any Federal [reserve bank](/usc/12/221.md) may, under rules and regulations prescribed by the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, purchase and sell in the open market, at home or abroad, either from or to domestic or [foreign banks](/usc/12/1817.md?p=j-9-B-i), firms, [corporations](/usc/12/2277a.md?p=2), or individuals, cable transfers and bankers’ acceptances and bills of exchange of the kinds and maturities by this chapter made eligible for rediscount, with or without the indorsement of a [member bank](/usc/12/221.md). # §354. Transactions involving gold coin, bullion, and certificates Every Federal [reserve bank](/usc/12/221.md) shall have power to deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Federal reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, [including](/usc/12/25b.md?p=a-3) the hypothecation of United States bonds or other securities which Federal [reserve banks](/usc/12/221.md) are authorized to hold. # §355. Purchase and sale of obligations of National, State, and municipal governments; open market operations; purchases and sales from or to United States; maximum aggregate amount of obligations acquired directly from or loaned directly to United States Every Federal [Reserve bank](/usc/12/221.md) shall have power: - (1) To buy and sell, at home or abroad, [bonds and notes of the United States](/usc/12/221.md), bonds issued under the provisions of [subsection (c)](/usc/12/1463.md?p=c) of section 1463[^1] of this title and having maturities from date of purchase of not exceeding six months, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any [State](/usc/12/1707.md?p=d), county, [district](/usc/12/221.md), political subdivision, or municipality in [the continental United States](/usc/12/221.md), [including](/usc/12/25b.md?p=a-3) irrigation, drainage and reclamation [districts](/usc/12/221.md), and obligations of, or fully guaranteed as to principal and interest by, a foreign government or [agency](/usc/12/1422.md?p=12) thereof, such purchases to be made in accordance with rules and regulations prescribed by the [Board](/usc/12/221.md) of Governors of the Federal Reserve System. Notwithstanding any other provision of this chapter, any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market. - (2) To buy and sell in the open market, under the direction and regulations of the Federal Open Market Committee, any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any [agency](/usc/12/1422.md?p=12) of the United States. # §356. Purchase of commercial paper from member banks and sale of same Every Federal [reserve bank](/usc/12/221.md) shall have power to purchase from [member banks](/usc/12/221.md) and to sell, with or without its indorsement, bills of exchange arising out of commercial transactions, as hereinbefore defined. # §357. Establishment of rates of discount Every Federal [reserve bank](/usc/12/221.md) shall have power to establish from time to time, subject to review and determination of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, rates of discount to be charged by the Federal [reserve bank](/usc/12/221.md) for each class of paper, which shall be fixed with a view of accommodating commerce and business, but each such [bank](/usc/12/1426a.md?p=g-1) shall establish such rates every fourteen days, or oftener if deemed necessary by the [Board](/usc/12/221.md). # §358. Establishment of accounts for purposes of open-market operations; correspondents and agencies Every Federal [reserve bank](/usc/12/221.md) shall have power to establish accounts with other Federal [reserve banks](/usc/12/221.md) for exchange purposes and, with the consent or upon the order and direction of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System and under regulations to be prescribed by said [Board](/usc/12/221.md), to open and maintain accounts in foreign countries, appoint correspondents, and establish [agencies](/usc/12/1422.md?p=12) in such countries wheresoever it may be deemed best for the purpose of purchasing, selling, and collecting bills of exchange, and to buy and sell, with or without its indorsement, through such correspondents or [agencies](/usc/12/1422.md?p=12), bills of exchange (or acceptances) arising out of actual commercial transactions which have not more than ninety days to run, exclusive of days of grace, and which bear the signature of two or more responsible parties, and, with the consent of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, to open and maintain banking accounts for such foreign correspondents or [agencies](/usc/12/1422.md?p=12), or for [foreign banks](/usc/12/1817.md?p=j-9-B-i) or bankers, or for foreign [states](/usc/12/1707.md?p=d) as defined in [section 632 of this title](/usc/12/632.md). Whenever any such account has been opened or [agency](/usc/12/1422.md?p=12) or correspondent has been appointed by a Federal [reserve bank](/usc/12/221.md), with the consent of or under the order and direction of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, any other Federal [reserve bank](/usc/12/221.md) may, with the consent and approval of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, be permitted to carry on or conduct, through the Federal [reserve bank](/usc/12/221.md) opening such account or appointing such [agency](/usc/12/1422.md?p=12) or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the [board](/usc/12/221.md). # §359. Purchase and sale of acceptances of intermediate credit banks and agricultural credit corporations Every Federal [reserve bank](/usc/12/221.md) shall have power to purchase and sell in the open market, either from or to domestic [banks](/usc/12/221a.md?p=a), firms, [corporations](/usc/12/2277a.md?p=2), or individuals, acceptances of Federal intermediate [credit](/usc/12/5481.md?p=7) [banks](/usc/12/221a.md?p=a) and of national agricultural [credit](/usc/12/5481.md?p=7) [corporations](/usc/12/2277a.md?p=2), whenever the [Board](/usc/12/221.md) of Governors of the Federal Reserve System shall declare that the public interest so requires.