Acceptances

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Banks and Trust Companies
  6. Powers of Banks
  7. Acceptances

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  1. A bank may accept drafts upon it having not more than nine months' sight to run arising out of transactions involving:
    1. The import or export of goods;
    2. The domestic shipment of goods, if secured by documents of title covering such goods; or
    3. The storage of readily marketable staples, if secured by documents of title covering such staples.
  2. The aggregate amount of acceptances under subsection (a) of this Code section shall not at any time exceed, for all such acceptances on behalf of one customer, 15 percent of the statutory capital base of the bank, exclusive of any acceptance secured by documents of title or other security growing out of the same transaction as the acceptance.
  3. In addition, a bank may, with the prior approval of the department, accept drafts having not more than three months' sight to run drawn upon it by banking institutions or bankers in foreign countries or in dependencies or insular possessions of the United States for the purpose of creating dollar exchange as required in an aggregate amount which shall not at any time exceed:
    1. For all such acceptances on behalf of a single banking institution or banker, 10 percent of the statutory capital base;
    2. For all such acceptances, 50 percent of the statutory capital base, provided that the department may, by regulation, impose additional restrictions on the acceptance of drafts under this subsection.

(Ga. L. 1919, p. 135, art. 19, § 20; Code 1933, § 13-2020; Code 1933, § 41A-1305, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1976, p. 275, § 1; Ga. L. 1981, p. 1366, § 7; Ga. L. 1983, p. 602, § 5.)

Cross references.

- Effect of proffered acceptance of draft by drawee which varies draft as presented, § 11-3-412.

Warehouse receipts, bills of lading, and other documents of title, § 11-7-101 et seq.

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, § 379 et seq.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 240, 241.


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