State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-56

§53‑56.  Bank acceptances defined.

Any bank doing business underthis Chapter may accept for payment at a future date, drafts or bills ofexchange having not more than six months' sight to run, drawn upon it by itscustomers under acceptance agreements, and which grow out of transactionsinvolving the importation or exportation of goods; and issue letters of creditauthorizing the holders thereof to draw upon it or its correspondents, providedthat there is a definite bona fide contract for the shipment of goods within aspecified reasonable time, and the existence of such contract is certified inthe acceptance agreement; or which grow out of transactions involving thedomestic shipment of goods, provided that shipping documents, conveying orsecuring to the accepting bank title to readily marketable goods, are attachedor in the hands of an agent of the accepting bank, independent of the drawer,for his account, at the time of acceptance, or which are secured at the time ofacceptance by warehouse receipts or other documents conveying or securing tothe accepting bank title to readily marketable goods fully covered byinsurance, the warehouse receipts or other documents to be  those of aresponsible warehouse, independent of the drawer, the acceptance to remainsecured during the life of the acceptance unless suitable security of samecharacter, or cash, be substituted: Provided, no bank shall accept drafts orbills of exchange under this section to an aggregate amount at any time morethan equal to the sum of its capital and permanent surplus: Provided further,that no bank shall accept, whether in a foreign or domestic transaction, forany one person, firm, or corporation, to any amount at any time equal to morethan twenty‑five percent (25%) of its capital and permanent surplus,unless the accepting bank is secured either by attached documents or those heldfor its account by its agent, independent of the drawer, or by some otheractual security of the same character. Should the accepting bank purchase or discountits own acceptances, such acceptances will be considered as a direct loan tothe drawer, and be subject to the limitation on loans hereinbefore provided inthis Chapter. The State Banking Commission may issue such further regulationsas to such acceptances as it may deem necessary in conformity with thisChapter. As used herein, the word "goods" shall be construed to meanand include goods, wares, merchandise, or agricultural products, includinglivestock. (1921, c. 4, s. 37; C.S., s. 220(l); 1931, c. 243, s.5; 1939, c. 91, s. 2.)