The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PURPOSE LOAN Definition & Legal Meaning

Definition & Citations:

A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.