Cash account.

CFR · 2024-01-01 · US · Title 12

(a) (1) Buy for or sell to any customer any security or other asset if: (i) There are sufficient funds in the account; or (ii) The creditor accepts in good faith the customer's agreement that the customer will promptly make full cash payment for the security or asset before selling it and does not contemplate selling it prior to making such payment; (2) Buy from or sell for any customer any security or other asset if: (i) The security is held in the account; or (ii) The creditor accepts in good faith the customer's statement that the security is owned by the customer or the customer's principal, and that it will be promptly deposited in the account; (3) Issue, endorse, or guarantee, or sell an option for any customer as part of a covered option transaction; and (4) Use an escrow agreement in lieu of the cash, cash equivalents or underlying asset position if: (i) In the case of a short call or a short put, the creditor is advised by the customer that the required securities, assets or cash are held by a person authorized to issue an escrow agreement and the creditor independently verifies that the appropriate escrow agreement will be delivered by the person promptly; or (ii) In the case of a call issued, endorsed, guaranteed, or sold on the same day the underlying asset is purchased in the account and the underlying asset is to be delivered to a person authorized to issue an escrow agreement, the creditor verifies that the appropriate escrow agreement will be delivered by the

official document · source cfr-2024 · id 12:§ 220.8