The one, that the tooth of usury be grinded, that it bite not too much; the other, that there be left open a means, to invite moneyed men to lend to the merchants, for the continuing and quickening of trade.
Secondly, let there be certain persons licensed, to lend to known merchants, upon usury at a higher rate; and let it be with the cautions following.
But who would lend to
a government that prefaced its overtures for borrowing by an act which demonstrated that no reliance could be placed on the steadiness of its measures for paying?
To this end, section 142 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) sets time periods beyond which the Federal Reserve may not lend to institutions below minimum capital standards without incurring a potential limited liability to the FDIC (see box, "FDICIA and the Discount Window").
Section 142 of FDICIA amended section 10B of the Federal Reserve Act to set time periods beyond which the Federal Reserve may not lend to undercapitalized and critically undercapitalized institutions without incurring a potential limited liability to the FDIC.
That statement sought to encourage banks to lend to
sound borrowers and to work constructively with borrowers experiencing temporary financial difficulties, provided they did so in a manner consistent with safe and sound banking practices.