Chap. 396.—An ACT to amend and re-enact section 4112 of the Code of Vir-
ginia, in relation to issue of acceptances and letters of credits by banks.

[H B 174]
Approved March 24, 1926.

1. Beit enacted by the general assembly of Virginia, That section
forty-one hundred and twelve be amended and re-enacted so as to
read as follows:

Section 4112. Banks and trust companies may make acceptances
and issue letters of credit.—Any bank or trust company doing business
in this State, may accept drafts or bills of exchange drawn upon it,
having not more than six months sight to run, which grow out of
transaction involving the importation or exportation of goods, or
which grow out of transactions involving the domestic shipment of
goods, provided shipping documents conveying or securing title are
attached at the time of acceptance, or which are secured at the time
of acceptance by a warehouse receipt or other such document convey-
ing or securing title covering readily marketing staples. No bank
shall accept, whether in a foreign or domestic transaction for any one
person, company, firm or corporation to an amount equal at any time
in the aggregate to more than ten per centum of its paid-up and un-
impaired capital stock and surplus, unless the bank is secured either
by attached documents or by some other actual security growing out
of the same transaction as the acceptance; and no bank shall accept
such bills to an amount equal at any time in the aggregate to more
than one-half of its paid-up and unimpaired capital stock and surplus;
provided, however, that with the approval of the banking division,
State corporation commission, regardless of the amount of capital
stock and surplus any bank may accept such bills to an amount not
exceeding at any time in the aggregate one hundred per centum of its
paid-up and unimpaired capital stcck and surplus; provided, further,
that the aggregate of acceptances growing out of domestic transactions
shall in no event exceed fifty per centum of such capital stock and
surplus and that all banks which may have or shall hereafter become
members of the Federal Reserve system, may accept drafts or bills
of exchange drawn upon them by banks or bankers in foreign countries
or dependencies or insular possessions of the United States for the
purpose of furnishing dollar exchange as required by the usages of
trade in the respective countries, dependencies or insular possessions,
according to the conditions, limitations and restrictions then in
force, as prescribed by the Federal Reserve board of the United
States. Any bank or trust company doing business in this State may
issue letters of credit authorizing the holders thereof to draw drafts
upon it or upon its correspondent at sight or on time not exceeding
one year, but the total amount issued for one person, firm or corpora-
tion shall not at any one time exceed ten per centum of the capital
and surplus of the issuing bank or trust company.