The terms used in this part have the meanings given them in section 3(a) of the Act or as defined in this section as follows:
Affiliated corporation means a corporation of which all the common stock is owned directly or indirectly by the firm or general partners and employees of the firm, or by the corporation or holders of the controlling stock and employees of the corporation, and the affiliation has been approved by the creditor's examining authority.
Cash equivalent means securities issued or guaranteed by the United States or its agencies, negotiable bank certificates of deposit, bankers acceptances issued by banking institutions in the United States and payable in the United States, or money market mutual funds.
Covered option transaction means any transaction involving options or warrants in which the customer's risk is limited and all elements of the transaction are subject to contemporaneous exercise if:
Credit balance means the cash amount due the customer in a margin account after debiting amounts transferred to the special memorandum account.
Creditor means any broker or dealer (as defined in sections 3(a)(4) and 3(a)(5) of the Act), any member of a national securities exchange, or any person associated with a broker or dealer (as defined in section 3(a)(18) of the Act), except for business entities controlling or under common control with the creditor.
Current market value of:
Customer excludes an exempted borrower and includes:
Debit balance means the cash amount owed to the creditor in a margin account after debiting amounts transferred to the special memorandum account.
Delivery against payment, Payment against delivery, or a C.O.D. transaction refers to an arrangement under which a creditor and a customer agree that the creditor will deliver to, or accept from, the customer, or the customer's agent, a security against full payment of the purchase price.
Equity means the total current market value of security positions held in the margin account plus any credit balance less the debit balance in the margin account.
Escrow agreement means any agreement issued in connection with a call or put option under which a bank or any person designated as a control location under paragraph (c) of SEC Rule 15c3-3 (17 CFR 240.15c 3-3(c) ), holding the underlying asset or required cash or cash equivalents, is obligated to deliver to the creditor (in the case of a call option) or accept from the creditor (in the case of a put option) the underlying asset or required cash or cash equivalent against payment of the exercise price upon exercise of the call or put.
Examining authority means:
Exempted borrower means a member of a national securities exchange or a registered broker or dealer, a substantial portion of whose business consists of transactions with persons other than brokers or dealers, and includes a borrower who:
Exempted securities mutual fund means any security issued by an investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8 ), provided the company has at least 95 percent of its assets continuously invested in exempted securities (as defined in section 3(a)(12) of the Act).
Foreign margin stock means a foreign security that is an equity security that:
Foreign person means a person other than a United States person as defined in section 7(f) of the Act.
Foreign security means a security issued in a jurisdiction other than the United States.
Good faith with respect to:
Margin call means a demand by a creditor to a customer for a deposit of additional cash or securities to eliminate or reduce a margin deficiency as required under this part.
Margin deficiency means the amount by which the required margin exceeds the equity in the margin account.
Margin equity security means a margin security that is an equity security (as defined in section 3(a)(11) of the Act).
Margin excess means the amount by which the equity in the margin account exceeds the required margin. When the margin excess is represented by securities, the current value of the securities is subject to the percentages set forth in § 220.12 (the Supplement).
Margin security means:
Money market mutual fund means any security issued by an investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8 ) that is considered a money market fund under SEC Rule 2a-7 (17 CFR 270.2a-7 ) .
Non-equity security means a security that is not an equity security (as defined in section 3(a)(11) of the Act).
Nonexempted security means any security other than an exempted security (as defined in section 3(a)(12) of the Act).
OTC margin stock means any equity security traded over the counter that the Board has determined has the degree of national investor interest, the depth and breadth of market, the availability of information respecting the security and its issuer, and the character and permanence of the issuer to warrant being treated like an equity security treaded on a national securities exchange. An OTC stock is not considered to be an OTC margin stock unless it appears on the Board's periodically published list of OTC margin stocks.
Payment period means the number of business days in the standard securities settlement cycle in the United States, as defined in paragraph (a) of SEC Rule 15c6-1 (17 CFR 240.15c 6-1(a) ), plus two business days.
Purpose credit means credit for the purpose of:
Short call or short put means a call option or a put option that is issued, endorsed, or guaranteed in or for an account.
Underlying asset means:
12 C.F.R. §220.2