(a) Credit transactions outside the United States. No borrower shall
obtain purpose credit from outside the United States unless it conforms
to the following margin regulations:
(1) Regulation T (12 CFR 220) if the credit
is obtained from a foreign branch of a broker-dealer;
(2) Regulation U (12 CFR 221)
if the credit is obtained from a foreign branch of a bank, except
for the requirement of a purpose statement (12 CFR 221.3(b) and (c));
and
(3) Regulation
U, as it applies to nonbank lenders, if the credit is obtained from
any other lender outside the United States, except for the requirement
of a purpose statement (12 CFR 221.3(c)(1)(ii) and (c)(2)(ii)).
5-975
(b) Credit
transactions within the United States. Any borrower who willfully
causes credit to be extended in contravention of Regulations T and
U (12 CFR 220 and 221), and who, therefore, is not exempted by section
224.1(b)(1) of this part, must conform the credit to the margin regulation
that applies to the lender.
