Get Fr U-1. Statement Of Purpose For An Extension Of Credit Secured By Margin Stock - Federalreserve

Filling out the FR U-1 form is a crucial step in securing credit that is backed by margin stock. This guide provides a comprehensive overview of the process, ensuring that users can complete the form with clarity and confidence.

Follow the steps to complete the FR U-1 form accurately and efficiently.

1. Click ‘Get Form’ button to obtain the form and open it in your chosen editor.
2. In Part I, borrowers need to provide their names and the amount of credit being extended. Make sure to clearly state the credit amount and answer whether any part of the credit will be used to purchase or carry margin stock.
3. If the response to the previous question is 'No,' provide a brief description of the intended use of the credit. If 'Yes,' proceed to the next section.
4. Both borrowers must sign and print their names and dates under the Borrower’s Signature section to certify that the information is true and complete.
5. If applicable, move to Part II, where the bank must list the margin stock securing the credit. This includes entering the number of shares, market price per share, issue, and total market value per issue.
6. Next, list any debt securities convertible into margin stock and provide similar information such as principal amount, issue, and market price.
7. Then, describe any other collateral securing the credit in the appropriate section.
8. Finally, in Part III, an authorized bank officer must sign the form, confirming the accuracy of the information and compliance with regulations.
9. After completing all sections, review the form for accuracy. Users can then save changes, download, print, or share the completed form as necessary.

Complete your FR U-1 form online today to ensure your credit application is processed promptly.