Reg. U Stock Loans

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Question:

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?

Answer:

Reg U doesn't stipulate anything about where the stock is held. If the loan is for more than $100,000 and is secured in whole or in part by margin stock, the Form Reg U-1 is required.

First published on BankersOnline.com 3/15/04