Banks May Extend and Maintain Purpose Credit Without Complying with Regulation

Banks may extend and maintain purpose credit without complying with Regulation U if the credit is extended:

A) To a bank auditor
B) To a qualified employee stock ownership plan running previously but not now
C) To any customer, other than a broker or dealer, to temporarily finance the purchase or sale of securities for prompt delivery, if the credit is to be repaid in the ordinary course of business on the completion of the transaction
D) To enable a customer to meet emergency expenses not reasonably foreseen and if the bank obtains a good faith statement from the customer. Emergency expenses are ones related to unforeseen death or disability, not a chance to make a profit.

Correct Answer:

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