(a) Without regard to the other provisions of this part, a creditor may
borrow or lend securities for the purpose of making delivery of the
securities in the case of short sales, failure to receive securities required
to be delivered, or other similar situations. If a creditor reasonably
anticipates a short sale or fail transaction, such borrowing may be made up
to one standard settlement cycle in advance of trade date.
(b) A creditor may lend foreign securities to a foreign person (or borrow
such securities for the purpose of relending them to a foreign person) for
any purpose lawful in the country in which they are to be used.
(c) A creditor that is an exempted borrower may lend securities without
regard to the other provisions of this part and a creditor may borrow
securities from an exempted borrower without regard to the other provisions
of this part.
