§ 220.5. Special memorandum account.
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/us/cfr/t12/s§ 220.5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A special memorandum account
(SMA)may be maintained in conjunction with a margin account. A single entry amount may be used to represent both a credit to the SMA and a debit to the margin account. A transfer between the two accounts may be effected by an increase or reduction in the entry. When computing the equity in a margin account, the single entry amount shall be considered as a debit in the margin account. A payment to the customer or on the customer's behalf or a transfer to any of the customer's other accounts from the SMA reduces the single entry amount.
(b)The SMA may contain the following entries:
(1)Dividend and interest payments;
(2)Cash not required by this part, including cash deposited to meet a maintenance margin call or to meet any requirement of a self-regulatory organization that is not imposed by this part;
(3)Proceeds of a sale of securities or cash no longer required on any expired or liquidated security position that may be withdrawn under § 220.4(e); and
(4)Margin excess transferred from the margin account under § 220.4(e)(2). [Reg. T, 63 FR 2824, Jan. 16, 1998]
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§ 220.5
Special memorandum account.
Fed. Reg.×3
C.F.R.×1
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