A bank may extend and maintain purpose credit without regard to the
provisions of this part if such credit is extended—
(a) to any bank;
(b) to any foreign banking institution;
(c) outside the United States;
(d) to an employee stock ownership plan (ESOP) qualified under section 401
of the Internal Revenue Code (26 USC 401);
(e) to any plan lender as defined in section 221.4(a) to finance an
eligible plan as defined in section 221.4(b), provided the bank has no
recourse to any securities purchased pursuant to the plan;
(f) to any customer, other than a broker or dealer, to temporarily finance
the purchase or sale of securities for prompt delivery, if the credit is to
be repaid in the ordinary course of business upon completion of the
transaction and is not extended to enable the customer to pay for securities
purchased in an account subject to part 220 of this chapter;
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(g) against securities in transit, if the credit is not extended to enable
the customer to pay for securities purchased in an account subject to part
220 of this chapter; or
(h) to enable a customer to meet emergency expenses not reasonably
foreseeable, and if the extension of credit is supported by a statement
executed by the customer and accepted and signed by an officer of the bank
acting in good faith. For this purpose, emergency expenses include expenses
arising from circumstances such as the death or disability of the customer,
or some other change in circumstances involving extreme hardship, not
reasonably foreseeable at the time the credit was extended. The opportunity
to realize monetary gain or to avoid loss is not a “change in
circumstances” for this purpose.
