Office of the Comptroller of the Currency - Ensuring a Safe and Sound Federal Banking System for All Americans Site Map | Text Size: S M L

BankNet

BankNet
More resources for national banks

Margin Loans (Regulation U)

A margin loan is a loan from a broker to a client that functions as a margin account. The client may use the funds for any purpose and usually secures the loan with securities. Regulation U (12 CFR 221) imposes restrictions on lenders that extend credit for the purpose of purchasing or carrying margin stock if the credit is secured by margin stock (directly or indirectly).