What is actually a Single credit rule-12 CFR 221.3(d)?
What is actually a Single credit rule-12 CFR 221.3(d)?
The Single credit rule as defined in 12 CFR 221.3(d) specifies that all purpose credit extended to a customer will be considered as a single credit for the purposes of Regulation U. This consideration does not require the aggregation of the value of all collateral securing all-purpose loans, nor does it involve combining unsecured with secured purpose credit solely for the application of withdrawal and substitution rules. Therefore, the correct answer is that all purpose credit extended to a customer will be considered to be a single credit for purposes of Regulation U.
The Single credit rule, as defined in 12 CFR 221.3(d), encompasses all the options provided. It states that all purpose credit extended to a customer will be considered as a single credit for the purposes of Regulation U. This includes aggregating the value of all collateral securing all-purpose loans to determine if it's sufficient and combining unsecured purpose credit with secured purpose credit for applying withdrawal and substitution rules.
Page 75. I think it is A. B says all the collaterals will be "aggregated" but the book says considered. C is missing the part of the secured purpose credit is "secured by margin stock".