Skip to content

Reg U - Purpose Loan Vs Non-Purpose Loan

Answered by: 

What is the difference under Reg U between a purpose loan and a non-purpose loan when adhering to margin requirements as a non-bank lender?

A purpose loan under Reg U is limited to a 50% advance on the margin stock whether the lender is a bank or a non-bank lender. For non-purpose loans, the advance rate is set by the lenders loan policies.

First published on 5/04/09

First published on 05/04/2009

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics