Loan secured by life insurance policy- Reg U??

Posted By: M&M

Loan secured by life insurance policy- Reg U?? - 09/24/09 08:14 PM

We have a consumer loan in which the collateral will be the cash value in a variable life insurance policy. The purpose is NOT to purchase stock or securities. Unless something has changed, I don't think that it is subject to Reg U, is it??
Posted By: rlcarey

Re: Loan secured by life insurance policy- Reg U?? - 09/24/09 10:28 PM

If it doesn't involve marginable stock, Regulation U does not apply.