Completing a Reg U Form

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Question:

Margin stock is my collateral. When completing the Reg U form, what is required to be completed? The purpose of the loan is a business line of credit.

Answer:

The customer must fill in the blanks, and answer yes or no regarding the purpose of the credit. If the answer is no, state the actual purpose of the loan, and then sign the U-1 form.

For a business line of credit, the customer should state the purpose of the line. It must make clear whether or not the loan is subject to Reg U.

First published on BankersOnline.com 11/15/10