| 释义 |
nonpurpose loan Nonpurpose loanA loan with securities pledged as collateral, but which is not to be used in securities trading or transactions.Nonpurpose LoanA loan secured by securities that is used to buy something other than more securities. An investment bank is allowed to lend up to 90% of the value of the securities used as collateral, provided the borrower submits an affidavit stating the reason for the loan. A nonpurpose loan is not subject to the same margin requirements as a purpose loan, which is used to buy securities. See also: Regulation T.nonpurpose loan A loan that uses securities as collateral, with proceeds from the loan being used to purchase something other than additional securities. A person may prefer a nonpurpose loan over a regular installment loan because of the lower interest rate. Nonpurpose loans are not subject to margin requirements as regular margin loans are. Compare purpose loan. |