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Revolving LOC with Stock as Collateral

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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?

Purpose credit is any credit for the purpose, whether immediate, incidental, or ultimate, of buying or carrying margin stock. The transaction would be subject to Regulation U.

First published on 8/30/10

First published on 08/30/2010

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