What is actually a Single credit rule-12 CFR 221.3(d)?
A.
All purpose credit extended to a customer will be considered to be a single credit for purposes of Regulation U
B.
The value of all collateral securing all-purpose loans will be aggregated to determine if it is sufficient
C.
If unsecured purpose credit is extended before secured purpose credit, the loans need only be combined for purposes of applying the withdrawal and substitution rules
Page 75. I think it is A. B says all the collaterals will be "aggregated" but the book says considered. C is missing the part of the secured purpose credit is "secured by margin stock".
The Single credit rule, as defined in 12 CFR 221.3(d), encompasses all the options provided. It states that all purpose credit extended to a customer will be considered as a single credit for the purposes of Regulation U. This includes aggregating the value of all collateral securing all-purpose loans to determine if it's sufficient and combining unsecured purpose credit with secured purpose credit for applying withdrawal and substitution rules.
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Dex24
7 months agoCam22
8 months, 3 weeks ago