---
kind: "section"
citation: "12 C.F.R. § 224.3"
title: "12"
number: "224.3"
heading: "Margin regulations to be applied by nonexempted borrowers."
url: "https://uscodex.org/cfr/12/224.3"
---

# §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](/cfr/12/part220.md)) if the credit is obtained from a foreign branch of a broker-dealer;
  - (2) Regulation U ([12 CFR part 221](/cfr/12/part221.md)), 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)](/cfr/12/221.3.md?p=c-1-i) and [(c)(2)(i)](/cfr/12/221.3.md?p=c-2-i)); and
  - (3) Regulation U ([12 CFR part 221](/cfr/12/part221.md)), 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)](/cfr/12/221.3.md?p=c-1-ii) and [(c)(2)(ii)](/cfr/12/221.3.md?p=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](/cfr/12/part220.md) and [221](/cfr/12/part221.md)), and who, therefore, is not exempted by [§ 224.1(b)(1)](/cfr/12/224.1.md?p=b-1), must conform the credit to the margin regulation that applies to the lender.

## Notes

### Amendments

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

### Authority

Authority: 15 U.S.C. 78g.

### Source

Source: Reg. X, 48 FR 56572, Dec. 22, 1983, unless otherwise noted.

### Amendments

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