Stock loan guidelines
Securities-Based Line of Credit

The Securities-Based Line of Credit program allows the borrower to pledge their securities portfolio (stocks, mutual funds, bonds and other securities) to obtain a Revolving Line Of Credit for personal or business use.

The borrower maintains their portfolio in an SIPC-insured account at a top-tier US Bank/Investment firm. There is no liquidation of the assets and the borrower may still trade or sell their securities. (Some restrictions may apply.)

Type of Loan: Revolving Line of Credit
Interest Rates: See chart below
Loan to Value: See chart below
Loan Terms Loans are perpetual. Fixed rate loans are where the RATE is fixed for the term chosen by the borrower. 6 months to 7 years are available.
Payment Structure: Interest-Only monthly loan payment. No payment is due if the borrowers credit line exceeds the amount of the funds drawn on the account.
Minimum Loan Amount: $100,000.
Maximum Loan Amount: Based on the securities pledged. Note - We will not consider more securities to be pledged than the total of 3 day average volume.
Minimum Trading Volume: $50,000 average daily trading volume.
Credit Check: None
Income Verification: None
Pre-Payment Penalty: ARM's, No.  Fixed Rate, Yes*
Lock Out Period: None
Recourse: Limited recourse. Assets pledged may be liquidated to payoff the credit line.
ARM Conversion: Credit lines may be converted to a fixed rate at any time with no cost.
Loan Origination Fee: 1.50% (.50 YSP to approved brokers)
Broker Origination Fee: Up to 3 Points
Processing Fee: $2,500
Upfront Fees: None
Yearly Maintenance Fee: None
Insured Account: Yes - SIPC-insured
Call Point: Borrower must maintain at 25% equity in the account at all times.
*The Fixed Rate Lines of Credit and Loans carry a breakage fee. Please call for calculation and example as this is a sliding scale.

Loan To Values

Collateral Loan-To-Value Available
US Stocks ($10 a share minimum) up to 70%
Mutual Funds ($5 as share minimum) up to 70%
US Treasuries up to 99%
MTN's (Investment Grade) up to 95%
Corporate Bonds (Investment Grade) up to 90%
Municipal Bonds up to 90%
US Restricted Stock      up to 60%
CD's up to 85%
Interest Rates
Adjustable Rates
Loan Amount Estimated Interest Rate
100k to 250K 4.50%
250k and 500K 4.25%
500K and 1M 4.00%
1M+ call
Fixed Rates*
Loan Amount Margin Est. Rate 2yr Est. Rate 3yr Est. Rate 5yr
100k to 250K 5.00% 5.875% 6.25% 7.25%
250k and 500K 4.00% 4.875% 5.25% 6.25%
500K and 1M 3.00% 3.875% 4.25% 5.25%
1M+ call call call call
* Rates are based upon a margin over the corresponding term of the LIBOR Swaps index. Lines of Credit may be converted to a fixed rate at any time at no cost.

Acceptable Collateral
• Stocks, ETF(s) and Mutual Funds • US Treasuries • Medium Term Notes (AAA+ - AA-) • Foreign Sovereign Debt (AAA+ - AA-) • Investment Grade Bonds • Municipal Bonds • Control or Restricted Stock

Unacceptable Collateral
• 401(k)'s, IRA's or any type of retirement fund • Real Estate • Annuities • Gold or silver mines • Mines or Mining Projects • Oil or Gas Leases • Commodities • Private notes or private bonds • Bonds that are past maturity • Bonds that are backed by gold • Bearer Bonds • Variable Structure Notes • Surety Bonds or any type of insurance instruments • Gems • Private Notes • Art • SKR's • Leased Instruments • BG's • SBLC's • Stocks originating in the following countries: Europe: Afghanistan, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Iran, Iraq, Latvia, Lithuania, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Turkey, Ukraine. South America: Bolivia, Chile, Columbia, Peru, Venezuela. Asia: China, Iraq, India, Malaysia, North Korea, Pakistan, South Korea, Sri Lanka, Taiwan, Thailand. Africa: Egypt, Morocco, South Africa, Jordan, Lebanon, Nigeria, Bahrain, Oman, Saudi Arabia. Middle East: Abu Dhabi, Jordan, Lebanon, Bahrain, Oman, Saudi Arabia.

If you have any questions about what qualifies please contact us.

Securities Based Quote Form