Form FR U-1 FR U-1 Statement of Purpose for an Extension of Credit Secured

FR U-1
OMB No. 7100–0115
Approval expires March 31, 2008

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Statement of Purpose for an Extension of Credit Secured by Margin Stock
(Federal Reserve Form U-1)
Name of Bank
This report is required by law (15 U.S.C. §§78g and 78w; 12 CFR 221).
The Federal Reserve may not conduct or sponsor, and an organization (or a
person) is not required to respond to, a collection of information unless it
displays a currently valid OMB control number.

Public reporting burden for this collection of information is estimated to average
10 minutes per response, including the time to gather and maintain data in the
required form and to review instructions and complete the information
collection. Send comments regarding this burden estimated or any other aspect
of this collection of information, including suggestions for reducing this burden
to: Secretary, Board of Governors of the Federal Reserve System, 20th and C
Streets, N.W., Washington, DC 20551; and to the Office of Management and
Budget, Paperwork Reduction Project (7100-0011), Washington, DC 20503.

Instructions
1. This form must be completed when a bank extends credit in excess of $100,000 secured directly or indirectly, in whole or
in part, by any margin stock.
2. The term “margin stock” is defined in Regulation U (12 CFR 221) and includes, principally: (1) stocks that are registered on
a national securities exchange; (2) debt securities (bonds) that are convertible into margin stocks; (3) any over-the-counter
security designated as qualified for trading in the National Market System under a designation plan approved by the Securities
and Exchange Commission (NMS security); and (4) shares of most mutual funds, unless 95 per cent of the assets of the fund
are continuously invested in U.S. government, agency, state, or municipal obligations.
3. Please print or type (if space is inadequate, attach separate sheet).

Part I To be completed by borrower(s)
1. What is the amount of the credit being extended?
2. Will any part of this credit be used to purchase or carry margin stock?

Yes

No

If the answer is “no,” describe the specific purpose of the credit.

I (We) have read this form and certify that to the best of my (our) knowledge and belief the information given is true, accurate,
and complete, and that the margin stock and any other securities collateralizing this credit are authentic, genuine, unaltered, and
not stolen, forged, or counterfeit.
Signed:

Borrower’s signature

Print or type name

Signed:

Date

Borrower’s signature

Date

Print or type name

This form should not be signed if blank.

A borrower who falsely certifies the purpose of a credit on this form or otherwise willfully or intentionally evades
the provisions of Regulation U will also violate Federal Reserve Regulation X, “Borrowers of Securities Credit.”

FR U-1
Page 2 of 2

Part II

To be completed by bank only if the purpose of the credit is to purchase or carry margin securities (Part I(2)
answered “yes”)

1. List the margin stock securing this credit; do not include debt securities convertible into margin stock. The maximum loan
value of margin stock is 50 per cent of its current market value under the current Supplement to Regulation U.
No. of
shares

Market price
per share

Issue

Date and source
of valuation
(See note below)

Total market
value per issue

2. List the debt securities convertible into margin stock securing this credit. The maximum loan value of such debt securities is
50 per cent of the current market value under the current Supplement to Regulation U.
Principal
amount

Issue

Market price

Date and source
of valuation
(See note below)

Total market
value per issue

Market price

Date and source
of valuation
(See note below)

Good faith
loan value

3. List other collateral including nonmargin stock securing this credit.
Describe briefly

Note: Bank need not complete “Date and source of valuation” if the market value was obtained from regularly published information in a journal of general circulation
or an automated quotation system.

Part III To be signed by a bank officer in all instances.
I am a duly authorized representative of the bank and understand that this credit secured by margin stock may be subject to the
credit restrictions of Regulation U. I have read this form and any attachments, and I have accepted the customer’s statement in
Part I in good faith as required by Regulation U*; and I certify that to the best of my knowledge and belief, all the information
given is true, accurate, and complete. I also certify that if any securities that directly secure the credit are not or will not be
registered in the name of the borrower or its nominee, I have or will cause to have examined the written consent of the
registered owner to pledge such securities. I further certify that any securities that have been or will be physically delivered to
the bank in connection with this credit have been or will be examined, that all validation procedures required by bank policy and
the Securities Exchange Act of 1934 (section 17(f), as amended) have been or will be performed, and that I am satisfied to the
best of my knowledge and belief that such securities are genuine and not stolen or forged and their faces have not been altered.
Signed:

Date

Bank officer’s signature

Title

Print or type name

* To accept the customer’s statement in good faith, the officer of the bank must be alert to the circumstances surrounding the credit and, if in possession of any
information that would cause a prudent person not to accept the statement without inquiry, must have investigated and be satisfied that the statement is truthful.
Among the facts which would require such investigation are receipt of the statement through the mail or from a third party.

This form must be retained by the lender for three years after the credit is extinguished.