Certified Regulatory Compliance Manager (CRCM) — Question 111

For which of the following must a bank obtain Form FR U-1 when a loan is in excess of $100,000?

Answer options

• A. A loan made to purchase margin stock
• B. A loan secured by margin stock
• C. A loan made to purchase margin stock and secured by margin stock
• D. A loan secured by stock (either margin or nonmargin)

Correct answer: B

Explanation

The correct answer is B because Form FR U-1 is specifically required for loans secured by margin stock. Options A and C misrepresent the requirement as they include loans for purchasing margin stock, which do not necessitate this form. Option D is incorrect since it refers to loans secured by both margin and nonmargin stock, which does not apply to the specific requirement of Form FR U-1.