Prior approval of secured third-party debt of RBICs.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (d) (1) You are in regulatory compliance; (2) The security interest in your assets is limited to either those assets being acquired with the borrowed funds or an asset coverage ratio of no more than 2:1; and (3) Your request is for approval of a secured line of credit that would not cause your total outstanding borrowings (not including Leverage) to exceed 50 percent of your Leverageable Capital.

official document · source cfr-2024 · id 7:§ 4290.550