1. (a) The Bank Commissioner and the State Banking Board rule that this exception applies to negotiable drafts and to bills of exchange drawn by the seller of commodities upon the purchaser and bearing the acceptance of the latter, or drawn by the purchaser of commodities upon his or her bank and endorsed by the seller.
2. (b) In order to qualify under this exception, drafts or bills of exchange must be two-name paper.
3. (c) Thus, unaccepted drafts are not eligible, nor are bills of exchange endorsed without recourse or not endorsed.

Codification Notes: This section was promulgated as Section 47-502.1 of the State Bank Department Rules prior to codification into the Code of Arkansas Rules. This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Reference A.C.A. § 23-47-502)"