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:
Affiliate means:
Bank -
Carrying credit is credit that enables a customer to maintain, reduce, or retire indebtedness originally incurred to purchase a security that is currently a margin stock.
Current market value of:
Customer excludes an exempted borrower and includes any person or persons acting jointly, to or for whom a lender extends or maintains credit.
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:
Good faith with respect to:
In the ordinary course of business means occurring or reasonably expected to occur in carrying out or furthering any business purpose, or in the case of an individual, in the course of any activity for profit or the management or preservation of property.
Indirectly secured.
Lender means:
Margin stock means:
Maximum loan value is the percentage of current market value assigned by the Board under § 221.7 (the Supplement) to specified types of collateral. The maximum loan value of margin stock is stated as a percentage of its current market value. Puts, calls and combinations thereof that do not qualify as margin stock have no loan value. All other collateral has good faith loan value.
Nonbank lender means any person subject to the registration requirements of this part.
Purpose credit is any credit for the purpose, whether immediate, incidental, or ultimate, of buying or carrying margin stock.
12 C.F.R. §221.2