Cash collateral that a securities firm receives in a securities lending transaction may not be used for purposes other than the following:
A securities firm shall pay interest on the money it receives from a customer under the preceding paragraph, at a rate agreed between the two parties.
- As collateral to borrow securities from the securities lending system of a securities exchange.
- As collateral to refinance securities from a securities finance enterprise.
- As a source of funds for conducting securities margin purchase and short sale business.
- As a source of funds for conducting securities business money lending.
- For bank deposits.
- To purchase short-term bills.