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#2108003 - 11/18/16 08:58 PM Reg B and Asset Based LOC
SallyGirl Offline
Member
Joined: Aug 2014
Posts: 69
A bit confused... Is an application for an asset based line of credit to finance trade accounts subject to Reg B?


9(a)3: Trade credit. The term trade credit generally is limited to a financing arrangement that involves a buyer and a seller—such as a supplier who finances the sale of equipment, supplies, or inventory; it does not apply to an extension of credit by a bank or other financial institution for the financing of such items.

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Lending Compliance
#2108067 - 11/21/16 07:00 AM Re: Reg B and Asset Based LOC SallyGirl
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,967
Galveston, TX
Yes. The exemption - "does not apply to an extension of credit by a bank or other financial institution for the financing of such items."
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