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Regulation X (12 CFR 224) (REG X)
Practical Law Glossary Item 3-382-3753 (Approx. 2 pages)
Glossary
Regulation X (12 CFR 224) (REG X)
The Federal Reserve Board regulation that implements the requirements of Section 7(f) of the Exchange Act. Regulation X extends the margin rules applicable to US lenders under Regulation T and Regulation U to US borrowers as well as certain foreign borrowers in certain situations. Namely, Regulation X:
- Applies the margin requirements of Regulation T or U to US and certain foreign borrowers who obtain credit from outside of the US.
- Extends the compliance requirements and liability under Regulation T or U for credit obtained within the US to US and certain foreign borrowers if the borrower "willfully caused" a violation under the margin rules.
For more information, see Practice Note, Margin Rules for US Borrowers (Reg. X).