I have a line of credit that is in the name of an individual with the purpose of business/real estate investment. The line is secured by shares of stock i.e. securities. The credit decision and primary source of repayment is based on personal income/cashflow. Should this loan be coded as 4A or 9B - which would be most appropriate? I'm leaning towards 9B, but our private banking group is coding them as 4A.

The definition for 4A includes loans to individuals for commercial, industrial and professional purposes.

What part of the definition of 9b are you thinking of? "Other loans" include loans to individuals for investment purposes, but this would not apply if the individual is involved in the business of real estate.

I was leaning towards 9B since there really is no business entity involved, not even a DBA, plus the fact that the collateral is stock (though it is stock he already owns). No Sch C, E or F. This is a loan to an individual for investment purposes using stock (i.e. securities) as collateral. Even if he invests in real estate, it sounds more like personal investments than related to an actual business.

Why would it be 4a over 9b?