What responsibilities does a lender take on once it registers with a Federal Reserve Bank as a nonbank lender?
Regulation U has three important post-registration requirements for nonbank lenders: • The nonbank lender must obtain from the borrower, and complete, a purpose statement (form G-3) for each loan secured by margin stock. • The nonbank lender must adhere to margin requirements (currently 50 percent) for purpose loans secured by margin stock. • The nonbank lender must file an annual report of margin-stock-secured lending (form G-4) as of each June 30. What are the responsibilities of a bank lender under Regulation U? Regulation U has two important requirements for bank lenders: • The bank lender must obtain from the borrower, and complete, a purpose statement (form U-1) for each loan secured by margin stock if the loan exceeds $100,000. • The bank lender must adhere to margin requirements (currently 50 percent) for all purpose loans secured by margin stock. What is a nonpurpose loan under Regulation U? A nonpurpose loan is a loan made for any purpose other than purchasing or carrying mar
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