---
kind: "section"
citation: "12 C.F.R. § 220.5"
title: "12"
number: "220.5"
heading: "Special memorandum account."
url: "https://uscodex.org/cfr/12/220.5"
---

# §220.5. Special memorandum account.

- (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Proceeds of a sale of securities or cash no longer required on any expired or liquidated security position that may be withdrawn under [§ 220.4(e)](/cfr/12/220.4.md?p=e); and
  - (4) Margin excess transferred from the margin account under [§ 220.4(e)(2)](/cfr/12/220.4.md?p=e-2).

## Notes

### Amendments

[Reg. T, 63 FR 2824, Jan. 16, 1998]

### Authority

Authority: 15 U.S.C. 78c, 78g, 78q, and 78w.

### Amendments

[Reg. T, 63 FR 2824, Jan. 16, 1998]