Stock loan transactions utilize public securities on Domestic & Foreign Exchanges. Financing is secured by an individual's securities on a Non-Recourse Basis. Through the use of aged or free trading stock, as well as options and warrants, you can procure a Non-Recourse Loan to protect yourself in an unpredictable market, or make use of an asset that has value during a period in which you choose to hold those securities. Please click here to read more on Non-Recourse Private Lending Vs Recourse-Margin Lending.
PRODUCT & SERVICES
Personal Loans Secured by Stock (Free Trading, Aged or Restricted)
BENEFITS: • Non-Recourse for free trading or aged non-affiliate securities
• Recourse for affiliates securities • Protect against market downturn
Privately funded stock loan transactions are non-reportable, therefore transactions are private. Please consult counsel to verify your requirements, only because we are not a consulting firm. These loans are very unique – "loans with no recourse", which means the liability remains with the asset only in the event of a default, as opposed to a margin loan which is capped at 50 percent (LTV) and subject to a Fed-Call when the principal value decreases. These stock loans will never be called unless there is default, in which case can only be on LIBOR based interest paid in Simple, Semi–annual form. No compound payments – No part of the principal need ever be paid until maturity (it balloons).
There are no maintenance requirements because it is a private transaction and there is no REG-T or REG-U adherence necessary. (REG-T) Fed restriction governing allowable securities, (REG-U) Fed restriction governing allowable LTV’s which calls for maintenance requirements.
If the stock appreciates you can easily pay the term and re-acquire your holdings. And because this condition simultaneously provides the benefit of downside protection, this product is quite simply the best way to enjoy your assets.
Special Requirements - Stock should have an average of at least $50,000 per day in liquidity. All exchanges accepted, but NASDAQ, AMEX and NYSE are preferred. Stock can be affiliate or non-affiliate.
** Terms are flexible
and special needs can be addressed and accommodated. Please click here to read more on Non-Recourse Private Lending Vs Recourse-Margin Lending.
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