Introduction
We currently facilitate a limited-recourse, feature-rich loan made possible when an eligible portfolio with optionable securities is available for use as collateral, and an option is purchased and structured into the loan to help reduce lender risk. With this loan program, managed directly by an SIPC-member U.S. brokerage and supported by a major Swiss-based equity fund, the shares remain in the client's account and title through the entire loan term.

Key Features
Top tier U.S.-brokerage management with established equity fund support. Licensed advisors through lending institution. Collateral receives a simple lien to secure the loan. Quick closing - as few as three days from signing of loan documents. Prepayment any time standard without prepayment penalty.

Up to 95% loan-to-value available for selected government securities. Foreign shares eligible. Full voting rights remain with borrower while shares secure loan. Swap one set of securities for another even while they are collateralizing the loan with lender's consent.. Additional loan cash possible if portfolio rises in value during the loan term.

Shares are not sold to fund these loans in any manner, and the title does not change.

Underwriting Requirements
Accepted: Publicly traded stocks, municipal/state/federal securities, exchange-traded funds, and all forms of mutual funds. Foreign shares are eligible. $120K minimum portfolio size. (Best LTV for portfolio's over $2M in initial value). CMO's and other mortgage-based securities acceptable if bundled with equivalent amount of quality securities.

Average Daily Volume
Healthy market for the securities; good volume of trading. (Use the average four-week volume figure as a guide.)

No Red Tape
Minimal paperwork, no FICO scores. Clients simply expected to have assets sufficient to service the loan.

Note: Borrowers must be willing to produce evidence of assets sufficient to service loan payments for document filing and regulatory purposes. However, these documents are not used to determine characteristics of the loan offer but are instead used to comply with regulatory requirement designed to ensure evidence of borrower's ability to service their quarterly loan interest payments.

Features / Benefits:

Institutional Security
Never sold to fund loan. 100% SIPC-member institution managed and underwritten with equity fund support. Well-known, top-tier national brokerage/bank. Fully regulated institutional services identical to any standard U.S. brokerage account. Option hedge purchased by institution at borrower's direction and structured into the loan for additional security for those securities with eligible public options (for public options list, please see Options Clearing Corporation.)*

Interest Rates
Interest rates range from 3-7%%. Floating and fixed variants available.

Maximum Loan-to-Value
Up to 85% of current market value of the securities pledged. Up to 95% for Treasury bills and selected other government securities.

Non-Callable Feature Standard
These loans, by definition, are non-callable (i.e., lender will not require client to come up with additional stock/cash in the event of decline in value), making them a fully "no-margin-call" loan. Note: A callable variant is also available that may permit higher LTV in some cases in exchange. Inquire for more.

Available to Financial Institutions
We've added our knowledge of client requirements to the resources of a large equity fund and expertise of several leading U.S. bank/brokerages to make this form of lending possible for a wide range of securities. Existing financial services may thus add this loan facility to their current services to enhance client liquidity options. Inquire for more information.

Payoff Anytime, Without Penalty
Pay off your loan if you decide you want to unfreeze the stocks for your own use - anytime you like, without restriction. If prices go up and your stocks are worth enough, you may seek to unfreeze and sell them on your own by paying off the loan early. With all of these securities finance programs, you can pay the loan off with cash directly, or ask lender to sell enough shares to pay off the remainder of the loan, or roll the loan over into a new loan on the same (or sometimes better) terms. The lien on the securities the account are removed immediately upon repayment.

A Limited Recourse Loan If You Must Default
With this international loan program should you find that you have no choice but to default, you may be able to do so without fear of attachment of any other assets (e.g., lien on house, other bank accounts) or any negative effect on your credit rating. If your shares qualify, you may have an option purchased and structured into your loan to exercise in the event that you are forced to default. In this way, surrender of your stocks in default will constitute complete fulfillment of your loan obligation - no matter how low the value of the stock portfolio.

An "Equity Line of Credit" Feature Standard
Not enough control? Premier loans, including Premier HedgeLoan, feature a line-of-credit provision that will allow you to modify your loan mid-stream to take more cash out if the portfolio. This is available when and if your shares have moved up in value consistently over time, much like a home equity line of credit. (Please note that additional loan cash credit is not automatic, but is rather at lender's discretion. Eligible portfolios should maintain a higher value over a reasonable period of time prior to consideration).

All the Growth in Portfolio to the Borrower
No asterisks, no fine print. Every last penny of value in your securities portfolio belongs to you with this program. There is no lender participation or claim to any of the upside growth in your stocks if they appreciate in value over time. (Note, however, that a "lender participation" variant of this program is also available for those who may seek a higher loan-to-value in some cases. Please inquire for more information.)

Dividends to Interest or Paid DIrectly
Your dividends can go to you, or you can ask to have them credited against the interest owed on the loan. The choice is yours.

Fast Funding
Within 72 hours of signing loan documents is normal, though actual time may be slightly less or slightly more depending on the particulars of each client. Funds are deposited directly into your checking account.

No Up-front Costs
Nominal consulting fees are deducted from loan proceeds, so there are no true fee costs or advanced costs or processing charges, etc.

Regular Account Statements
You'll get monthly/quarterly brokerage statements just like you do right now, all direct from the institution holding your portfolio. Also as with any modern brokerage, you will have full 24/7 online access and access to a personal account advisor.

Multiple Exit Choices
Ask lender to sell enough of the stock to pay off the loan. Or modify the loan while getting cash out under the line-of-credit provision. Or pay off the principal out-of-pocket with your own cash in the normal loan payoff fashion. If you cannot handle the interest payments for any reason and must declare default, you can exercise your limited-recourse exit rights with no further claim on any assets or negative credit reporting upon surrender of collateral (if you have chosen the hedged portfolio loan model). You can also consider a simple rollover ‒ renewing your loan on the same or possibly even better terms.

If you are ready to move forward, please contact us today and a representative will be in touch shortly.