(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 part 220) if the credit is obtained from a foreign branch of a broker-dealer;
(2)
Regulation U ( 12 CFR part 221 ), as it applies to banks, if the credit is obtained from a foreign branch of a bank, except for the requirement of a purpose statement ( 12 CFR 221.3(c)(1)(i) and (c)(2)(i) ); and
(3)
Regulation U ( 12 CFR part 221 ), 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) ).
(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 parts 220 and 221 ), and who, therefore, is not exempted by § 224.1(b)(1), must conform the credit to the margin regulation that applies to the lender.
Code of Federal Regulations
[Reg. X, 63 FR 2839, Jan. 16, 1998]