- This topic has 1 reply, 2 voices, and was last updated 2 years, 5 months ago by
.
-
Posts
-
Given the definition of ‘margin securities’ would a security interest in a borrower’s commodities hedging account trigger a Reg U reporting requirement?
Hello:
Generally, a margin stock” is listed on an exchange. Your question does not contain enough information to make that determination. You may want to review this with your examiner or legal counsel. It is likely they will need the additional information as well.
When a loan is secured by a margin stock you must require the borrower to complete a purpose statement (Federal Reserve Form U-1). There is not a reporting requirement.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS RESPONSE AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
- You must be logged in to reply to this topic.