First National Bank has made three loans to Mrs. Elmwood. Two of the loans are regulated credits (they are for the purpose of purchasing margin stock and secured by margin stock). The third loan is for the purpose of purchasing margin and nonmargin stock, and the loan is secured by real estate and margin stock. Can the bank avoid having the third loan combined with the other two for Regulation U purposes?
A. Yes, but the real estate must have a value of at least twice as much as the third loan.
B. No. At least the part of the loan attributable to the security of margin stock must be treated as a regulated credit and combined with the other two loans.
C. No. All of the third loan must be combined with the others.
D. Yes. As long as there is any other collateral, the loan will not be a regulated credit.
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