(a)
Authority. Regulation U (this part
*) is
issued by the Board of Governors of the Federal Reserve System (the
Board) pursuant to the Securities Exchange Act of 1934 (the act) (15
USC 78a et seq.).
(b) Purpose and scope.
(1) This part imposes credit restrictions
upon persons other than brokers or dealers (hereinafter lenders) that
extend credit for the purpose of buying or carrying margin stock if
the credit is secured directly or indirectly by margin stock. Lenders
include “banks” (as defined in section 221.2) and other persons who
are required to register with the Board under section 221.3(b). Lenders
may not extend more than the maximum loan value of the collateral
securing such credit, as set by the Board in section 221.7 (the supplement).
(2) This part does not
apply to clearing agencies regulated by the Securities and Exchange
Commission or the Commodity Futures Trading Commission that accept
deposits of margin stock in connection with—
(i) the issuance of,
or guarantee of, or the clearance of transactions in, any security
(including options on any security, certificate of deposit, securities
index or foreign currency); or
(ii) the guarantee of contracts for
the purchase or sale of a commodity for future delivery or options
on such contracts.
(3) This part does not apply to credit
extended to an exempted borrower.
(c) Availability of forms. The forms referenced
in this part are available from the Federal Reserve Banks.
