The Federal Reserve Board regulation that implements Section 7(d) of the Exchange Act and governs loans made by banks and other non-broker-dealer lenders for the purpose of buying securities. The general purpose of Regulation U is to limit the amount of credit extended by lenders to finance the purchase or carrying of publicly-traded equity securities where those securities also serve as collateral for the loan.

For further information see Practice Note, Margin Rules for Banks and Non-Broker-Dealer Lenders (Reg. U).