Guidelines - Securities-Based Lending

articecapital--

Atlanta
770.888.8063

Dallas
254.865.6339

Stock Loans

Guidelines

This type of lending allows the borrower to use their investments (stocks, bonds, MTN's and T-Notes) to obtain funds for personal or business use.

Overview
Type of Loan:	Fixed Rate Loan
Interest Rates:	Maximum 4.50% -Depends upon security pledged
Loan to Value:	See chart below
Loan Terms:	3, 5, 7 and 10 year renewable
Loan Payment Structure:	Interest-Only quarterly loan repayment. Dividends (if applicable) are applied towards payment.
Minimum Loan Amount:	$100,000.
Maximum Loan Amount:	No Limit
Minimum Trading Volume:	$50,000 average daily trading volume.
Credit Check:	None
Income Verification:	None
Pre-Payment Penalty:	Not Applicable - Pre-payment not allowed.
Lock Out Period:	Term of the loan
Recourse:	None
Loan Origination Fee:	None
Processing Fee:	None
Upfront Fees:	None
Yearly Maintenance Fee:	None
Call Point:	80% of the loan amount.

Loan To Values

Collateral	Loan-To-Value Available
US Stocks ($.50 a share minimum)	up to 80%
Mutual Funds ($.50 as share minimum)	up to 80%
US Treasuries	up to 95%
Foreign Stocks	up to 80%
Restricted Stock (N/A)	NA
MTN's (Investment Grade)	up to 95%
Foreign Sovereign Debt (Investment Grade)	up to 95%
Corporate Bonds (Investment Grade)	up to 80%
Municipal Bonds	up to 90%

Acceptable Collateral

• Stocks, ETF(s) and Mutual Funds ($.50 or higher)
• US Treasuries
• Medium Term Notes (AAA+ - AA-)
• Foreign Sovereign Debt (AAA+ - AA-)
• Investment Grade Bonds
• Municipal Bonds

Unacceptable Collateral

• 401(k)'s, IRA's or any restricted retirement fund
• Control or Restricted Stock
• 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
• Stocks or Bonds originating in the following countries:
Africa, Bolivia, Greece, India, Iran, Iraq, N. Korea, S. Korea, Mainland China, Malaysia, Nigeria, Pakistan, Peru, Portugal, Romania, Russia, Spain, Sri Lanka, Taiwan, Thailand, Venezuela.

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