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#2243822 - 10/08/20 08:16 PM Regulation U
KerriAnnF Offline
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Joined: Nov 2016
Posts: 10
We have a revolving line of credit that was originated as a nonpurpose loan. Our lender has now been made aware that recent draws have been used to purchase margin stock. Since we are now aware that proceeds were used to purchase margin stock, are we required to refinance this loan to comply with the purpose credit requirements?

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Lending Compliance
#2243826 - 10/08/20 09:57 PM Re: Regulation U KerriAnnF
TryingtoComply Offline
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Joined: Apr 2013
Posts: 1,965
The West
Is it secured by the stock?

What are the requirements of Regulation U for a nonpurpose loan? If the loan is secured directly or indirectly by margin stock, form G-3 or form U-1 must be completed as described above. If the loan is not secured directly or indirectly by margin stock, no form need be completed.

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