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Free CRCM Exam Braindumps
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) Questions 119–121 (page: 73)

Updated On: 9-Feb-2026
Page 73 of 276
PDF with 463 Questions

First National Bank made the following loans to Mr. James Wilson during the previous calendar year:
· Loan A, made on February 2, is a loan for purchasing margin stock and is secured by margin stock
· Loan B, made on March 15, is also for purchasing margin stock and is secured by margin stock
· Loan C, made on June 30, is an unsecured loan for purchasing margin stock · Loan D, made on September 10, is for purchasing a car, secured by the car All the loans are still outstanding at the end of the year. Which of the loans must be combined for purposes of the margin requirements of Regulation U?

  1. All of the loans must be combined
  2. Loans A and B
  3. None of the loans must be combined
  4. Loans A, B, and C

Answer(s): D



First National Bank has made a loan to Mr. Good, secured by margin stock, to purchase margin stock. He trades stocks frequently, makes substitutions on loan collateral regularly, and sometimes withdraws collateral and does not replace it. Must FNB ensure that margin requirements are met after every substitution and withdrawal?

  1. Yes. The margin requirements must be met at all times.
  2. No. If the margin requirements were met when the loan was made, there are no further requirements.
  3. No. The bank is only required to ensure that withdrawals do not violate margin requirements; collateral substitutions are not covered.
  4. No. In this case the margin requirement must be met only when the loan is renewed.

Answer(s): A



First National Bank has made a loan to Mr. Good, secured by margin stock, to purchase margin stock. He trades stocks frequently, makes substitutions on loan collateral regularly, and sometimes withdraws collateral and does not replace it. Must FNB ensure that margin requirements are met after every substitution and withdrawal?

  1. Yes. The margin requirements must be met at all times.
  2. No. If the margin requirements were met when the loan was made, there are no further requirements.
  3. No. The bank is only required to ensure that withdrawals do not violate margin requirements; collateral substitutions are not covered.
  4. No. In this case the margin requirement must be met only when the loan is renewed.

Answer(s): A



First National Bank has made a loan to Mr. Good, secured by margin stock, to purchase margin stock. He trades stocks frequently, makes substitutions on loan collateral regularly, and sometimes withdraws collateral and does not replace it. Must FNB ensure that margin requirements are met after every substitution and withdrawal?

  1. Yes. The margin requirements must be met at all times.
  2. No. If the margin requirements were met when the loan was made, there are no further requirements.
  3. No. The bank is only required to ensure that withdrawals do not violate margin requirements; collateral substitutions are not covered.
  4. No. In this case the margin requirement must be met only when the loan is renewed.

Answer(s): A



Is the renewal of a loan considered to be a new extension of credit for purposes of valuing the collateral under Regulation U?

  1. Yes
  2. Yes, if any additional amounts are added to the loan balance
  3. Yes, if any amounts other than interest, service charges, or taxes are added to the loan balance
  4. No, a renewal is never considered to be a new credit

Answer(s): C



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