General requirements.

CFR · 2024-01-01 · US · Title 12

(a) (2) (i) Reduction in the customer's equity resulting from change in market prices; (ii) Change in the maximum loan value prescribed by this part; or (iii) Change in the status of the security (from nonmargin to margin) securing an existing purpose credit. (3) (b) (i) The amount of credit extended equals $200,000 or more; or (ii) The amount of credit outstanding at any time during that calendar quarter equals $500,000 or more. (2) (3) (4) (c) (ii) (2) (ii) (iii) (A) The maximum loan value of the collateral at least equals the aggregate amount of funds actually disbursed; or (B) At the end of any day on which credit is extended under the agreement, the lender calls for additional collateral sufficient to bring the credit into compliance with § 221.7 (the Supplement). (iv) (d) (2) A lender that has extended purpose credit secured by margin stock may not subsequently extend unsecured purpose credit to the same customer unless the combined credit does not exceed the maximum loan value of the collateral securing the prior credit. (3) If a lender extended unsecured purpose credit to a customer prior to the extension of purpose credit secured by margin stock, the credits shall be combined and treated as a single credit solely for the purposes of the withdrawal and substitution provision of paragraph (f) of this section. (4) If a lender extends purpose credit secured by any margin stock and non-purpose credit to the same customer, the lender shall treat the credits as two separate

official document · source cfr-2024 · id 12:§ 221.3