§ 220.15 - Borrowing by creditors.

Related Notices

Latest version.

(a) Restrictions on borrowing. A creditor may not borrow in the ordinary course of business as a broker or dealer using as collateral any registered nonexempted security, except:

(1) From or through a member bank of the Federal Reserve System; or

(2) From any nonmember bank that has filed with the Board an agreement as prescribed in paragraph (b) of this section, which agreement is still in effect; or

(3) From another creditor if the loan is permissible under this part.

(b) Agreements of nonmember banks. (1) A nonmember bank shall file an agreement that conforms to the requirements of section 8(a) of the Act (See Form FR T-1, T-2).

(2) Any nonmember bank may terminate its agreement if it obtains the written consent of the Board.

                    
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