110 STAT. 3422 PUBLIC LAW 104-290—OCT. 11, 1996 during the absence or unavailability of the principal associated person for a customer may be treated as an associated person to which such customer is assigned; and "(ii) if the customer is present in another State for 30 or more consecutive days or has permanently changed his or her residence to another State, a transaction is not described in this paragraph, unless the association person of the broker or dealer files an application for registration with such State not later than 10 business days after the later of the date of the transaction, or the date of the discovery of the presence of the customer in the other State for 30 or more consecutive days or the change in the customer's residence.", (b) TECHNICAL AMENDMENT.— Section 28(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78bb(a)) is amended by striking "Nothing" and inserting "Except as otherwise specifically provided in this title, nothing". SEC. 104. BROKER-DEALER FUNDING. (a) MARGIN REQUIREMENTS. — (1) EXTENSIONS OF CREDIT BY BROKER-DEALERS.—Section 7(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78g(c)) is amended to read as follows: "(c) UNLAWFUL CREDIT EXTENSION TO CUSTOMERS.— "(1) PROHIBITION.—It shall be unlawful for any member of a national securities exchange or any broker or dealer, directly or indirectly, to extend or maintain credit or arrange for the extension or maintenance of credit to or for any customer— "(A) on any security (other than an exempted security), in contravention of the rules and regulations which the Board of Governors of the Federal Reserve System (hereafter in this section referred to as the 'Board') shall prescribe under subsections (a) and (b); and "(B) without collateral or on any collateral other than securities, except in accordance with such rules and regulations as the Board may prescribe— "(i) to permit under specified conditions and for a limited period any such member, broker, or dealer to maintain a credit initially extended in conformity with the rules and regulations of the Board; and "(ii) to permit the extension or maintenance of credit in cases where the extension or maintenance of credit is not for the purpose of purchasing or carrying securities or of evading or circumventing the provisions of subparagraph (A). "(2) EXCEPTION.— Th is subsection and the rules and regulations issued under this subsection shall not apply to any credit extended, maintained, or arranged by a member of a national securities exchange or a broker or dealer to or for a member of a national securities exchange or a registered broker or dealer— "(A) a substantial portion of whose business consists of transactions with persons other than brokers or dealers; or
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