RE LOANS

HARDEST HIT FUNDS

WE SELL NOTES AND REO

STOCK & SECURITIES LOANS

ASSET/COLLATERAL LOANS

COMPANY DETAILS

FEATURED TOOLS

OTHER SERVICES

The typical loan process on a Securities Based Loan  is very simple and transparent with our firm:

We Need:
1) Borrower's Name
2) # of shares available to be pledged and exchange traded on-- name of security and symbol, confirm free trading
3) Desired loan amount (may state amount or maximum amount possible)
4) Term of loan --3 years is our minimum -most borrowers choose 3 or 5 year loans
5) Is the borrower an affiliate? Confirm shareholder status. (A director, CEO,CFO, control person of the company). If so, we will provide list of questions to ensure compliance with Term Sheet.
6) Verification of ownership --usually a position page or copy of broker statement --this possibly can come later if not readily available. Full name of borrower, Broker, contact information.

Process:
1) After we receive the above information and we find it acceptable collateral, we will issue a Loan Term Sheet and Borrower information page within 24-48 hours.
2) Then we schedule a phone call with the borrower/principle to answer any questions  -
 Due to the legal details and questions a borrower may request, we typically supply our borrowing clients team access to our equity firms Director, or Vice President, Chief of Analytics, Chief of Compliance, our counsel, etc..
This is where we perform vs other securities lenders.
We understand it is all in the details, not just about fees, ltvs, etc. Securities loan questions need transparent answers by 3rd party sources.
3) Borrower signs Term Sheet and Borrower information page and returns to our firm. There are no upfront fees, credit checks, or other documentation required.
4) Within 24 hours of receiving #3 the Loan and Pledge Agreement will be sent to the borrower by our top USA law firm.
5) Borrower signs agreements and returns to Law firm.
6) Chief of Compliance completes Transfer Form and sends to borrower for signature (fax or e mail is fine here).
7) The securities are transferred to equities firm custodial account.
8) Typically, the securities are valued by taking the closing market price on day of receipt plus the closing prices for subsequent 2 days.  Average the 3 prices (strike price) x the number of shares x LTV = Loan Amount.  Closing statement e mailed to borrower that night.
9) Loan is funded on a T + 3 or T + 5 basis depending on type of collateral (3 days or 5 days after shares hit our custodial account). There are several approaches to this.
10) The entire process may take as little as 10 days!!
To learn more please call Dan direct at...
                       
                     858-204-6209

* Fixed rate interest only payments due on a quarterly basis
* No prepayment of the loan -- at loan maturity loan is paid back and identical number of pledged shares are returned to borrower.
*Borrower receives credit for all dividends and upside market appreciation -- transaction is a loan --not a constructive sale.