Certified Regulatory Compliance Manager (CRCM) — Question 51

What is actually a Single credit rule-12 CFR 221.3(d)?

Answer options

• A. All purpose credit extended to a customer will be considered to be a single credit for purposes of Regulation U
• B. The value of all collateral securing all-purpose loans will be aggregated to determine if it is sufficient
• C. If unsecured purpose credit is extended before secured purpose credit, the loans need only be combined for purposes of applying the withdrawal and substitution rules
• D. All of the above

Correct answer: D

Explanation

The correct answer is D because all the provided statements accurately describe aspects of the Single credit rule-12 CFR 221.3(d). Option A states how all-purpose credit is classified, Option B discusses the aggregation of collateral, and Option C addresses the treatment of unsecured versus secured credit. Since each option is valid, D encompasses them all.