I want to do a revolving line of credit in the amount of $100,000. It would be partially secured by common stock in a listed company. The stock is valued at $67,000. The company is a regional bank holding company. My customer is an executive office with the holding company. Proceeds would be used partially to exercise stock options and partially for other personal expenses, some of which would be debt consolidation. If I take the stock as collateral or partial collateral, am I subject to any type of margin requirements?
What is the minimum amount of disclosures that have to be given to business loan customers?
What is the difference between regular stock and margin stock? What documents are required with margin stock?
Are Reg. U disclosures required for a stock loan when the stock is not being held by bank, but is in brokerage account and we have a control agreement?