Eligible Paper

Summary of Eligible Paper

Drafts, bills of exchange, and other instruments that satisfy requirements for discount or re-discount at the counters of a Federal Reserve bank. In addition to being eligible, i.e., arising from an approved transaction, the paper must be acceptable, i.e., drawn, accepted, or endorsed by a credit-worthy party. Rules governing the discount of bills and notes at the Federal Reserve are contained in (Regulation A (read this for further details).

(Main Author: William J. Miller)