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Code · CFR · Title 12 — Banks and Banking · Part 220 — Credit by Brokers and Dealers (Regulation T) · § 220.10

§ 220.10. Borrowing and lending securities.

157 words·~1 min read·/us/cfr/t12/s§ 220.10·

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(a)Without regard to the other provisions of this part, a creditor may borrow or lend securities for the purpose of making delivery of the securities in the case of short sales, failure to receive securities required to be delivered, or other similar situations. If a creditor reasonably anticipates a short sale or fail transaction, such borrowing may be made up to one standard settlement cycle in advance of trade date.
(b)A creditor may lend foreign securities to a foreign person (or borrow such securities for the purpose of relending them to a foreign person) for any purpose lawful in the country in which they are to be used.
(c)A creditor that is an exempted borrower may lend securities without regard to the other provisions of this part and a creditor may borrow securities from an exempted borrower without regard to the other provisions of this part. [Reg. T, 63 FR 2826, Jan. 16, 1998]
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§ 220.10
Borrowing and lending securities.
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