Reg B and Asset Based LOC

Posted By: SallyGirl

Reg B and Asset Based LOC - 11/18/16 08:58 PM

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.
Posted By: rlcarey

Re: Reg B and Asset Based LOC - 11/21/16 07:00 AM

Yes. The exemption - "does not apply to an extension of credit by a bank or other financial institution for the financing of such items."