Eligible margin loan
(b) Eligible margin loan. In order to recognize an exposure as an eligible margin loan as defined in 3.2, a national bank or Federal savings association must conduct sufficient legal review to conclude with a well-founded basis (and maintain sufficient written documentation of that legal review) that the agreement underlying the exposure: (1) Meets the requirements of paragraph (1)(iii) of the definition of eligible margin loan in 3.2, and (2) Is legal, valid, binding, and enforceable under applicable law in the relevant jurisdictions.