Under Regulation U, Prior to Extending Credit Secured by Margin

question 396

Multiple Choice

Under Regulation U, prior to extending credit secured by margin stock for more than $100,000, a national bank must obtain which of the following?

• A) Certificate of value for the collateral
• B) Written statement from the borrower as to the purpose of the loan
• C) Written statement certifying the borrower's business address and daytime phone number
• D) Notice from the borrower as to his willingness to provide additional margin stock as collateral

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Definitions:

Decision-Making Process

A systematic approach to making choices among various alternatives, often involving steps such as identifying the problem, generating options, and selecting the best course of action.

Staff

Individuals employed in an organization or working for a particular project or objective.

D1

A term commonly used in Situational Leadership®, referring to one of the development levels where individuals are high in enthusiasm and commitment but low in skills and experience.

Great Flexibility

signifies a high level of adaptability or willingness to adjust to new conditions or changes.