WAC 208-512A-030. Special rule—Purchase of bankers' acceptances

The purchase of bankers' acceptances of the kind described in section 13 of the Federal Reserve Act and which are issued by other depositary institutions, is excluded from the calculation of the general lending limit, subject to the following terms and conditions: (1) Acceptances by a bank of time drafts which do not meet the requirements for discount with a Federal Reserve Bank, are subject to the general twenty percent limitation of WAC 208-512A-010 ; and (2) During any period within which a bank holds its own acceptances, eligible or ineligible, having given value therefor, the amount given is considered to be a loan or extension of credit to the customer for whom the acceptance was made and is subject to the lending limits. To the extent that a loan or extension of credit created by discounting the acceptance is covered by a bona fide participation agreement, the discounting bank need only consider that portion of the discounted acceptance which it retains as being subject to appropriate limitations.