The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.
FORM OF LETTER OF AGREEMENT
[Letterhead of the Borrower]
Date: ______________________________
Federal Reserve Bank of __________________________________
Address
City, State, Zip
Attention:
In consideration of being able to request Advances from and incur Indebtedness to you and in consideration of your making Advances to us we agree to the provisions of your Operating Circular No. 10, effective October 15, 2006, as amended and supplemented from time to time thereafter (“Circular;” capitalized terms used but not defined herein shall have the meaning specified in the Circular).
[Enclosed are (1) certified copies of the Certificate, (2) certified copies of the resolutions that you requested and (3) documents(s) containing the name, title, and signature of those persons authorized to request Advances from and to pledge our assets to you.]
Any notices required under the Lending Agreement may be directed to the following department(s): [list department(s) and address(es)].
_____________________________________________
Full Legal Name of Borrower
By: _________________________________________
Authorized signature(s)
______________________________________________
Name(s)
______________________________________________
Title(s)
Agreements
https://www.frbdiscountwindow.org/en...ments.aspx#loa
Reserve Banks ordinarily do not require depository institutions to provide reasons for requesting very short-term primary credit. Rather, borrowers are asked to provide only the minimum information necessary to process a loan, usually the amount and term of the loan. Should a pattern of borrowing or the nature of a particular borrowing request strongly indicate that a depository institution is not generally sound or does not satisfy the conditions described in the two previous paragraphs, a Reserve Bank may seek additional information.
52 words of credit is listed in
https://www.frbdiscountwindow.org/Ho...t-Window#types that statement make you a debtor if you use there promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms..
The problem is there is no money: It’s all paper with ink on it, its backed by nothing backed by nothing.
Federal Reserve notes are not dollars. Those notes are denomi¬nated in dollars, which are the unit of account of the United States money. The Coinage Act of 1792 established the dollar as the basic unit of the United States currency, by providing that “The money of account of the United States shall be expressed in dollars or units, dimes or tenths, cents or hundredths . . . .” 31 U.S.C. § 371.
FRNs are 1) not dollars; but 2) are “units of account”.
The federal gov-co then sold the physical Notes at cost ($20.60/1,000) to the Federal Reserve System.
Today, under this arrangement, the Federal Reserve can buy a $100 FRN from our government for about a nickel, and ultimately loan it back to the American people at full face value ($100). Plus interest.
Right from the FR Act itself "Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: "The said [Federal Reserve] notes shall be obligations of the United States….They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank." Federal Reserve notes have not been redeemable in silver since the 1960s".