12 CFR § 224.3 - Margin regulations to be applied by nonexempted borrowers.

---
identifier: "/us/cfr/t12/s224.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 224.3 - Margin regulations to be applied by nonexempted borrowers."
title_number: 12
title_name: "Banks and Banking"
section_number: "224.3"
section_name: "Margin regulations to be applied by nonexempted borrowers."
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "224"
part_name: "BORROWERS OF SECURITIES CREDIT (REGULATION X)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 78g."
regulatory_source: "Reg. X, 48 FR 56572, Dec. 22, 1983, unless otherwise noted."
cfr_part: "224"
---


# 224.3 Margin regulations to be applied by nonexempted borrowers.

(a) *Credit transactions outside the United States.* No borrower shall obtain purpose credit from outside the United States unless it conforms to the following margin regulations:

(1) Regulation T (12 CFR part 220) if the credit is obtained from a foreign branch of a broker-dealer;

(2) Regulation U (12 CFR part 221), as it applies to banks, if the credit is obtained from a foreign branch of a bank, except for the requirement of a purpose statement (12 CFR 221.3(c)(1)(i) and (c)(2)(i)); and

(3) Regulation U (12 CFR part 221), as it applies to nonbank lenders, if the credit is obtained from any other lender outside the United States, except for the requirement of a purpose statement (12 CFR 221.3(c)(1)(ii) and (c)(2)(ii)).

(b) *Credit transactions within the United States.* Any borrower who willfully causes credit to be extended in contravention of Regulations T and U (12 CFR parts 220 and 221), and who, therefore, is not exempted by § 224.1(b)(1), must conform the credit to the margin regulation that applies to the lender.

[Reg. X, 63 FR 2839, Jan. 16, 1998]