ABN Securities Eligibility and Release Rate Matrix

Table is for general guidance only. Actual release rate or purchase discount will depend on full examination of portfolio.
All applicants must be prepared to provide a valid brokerage statement and photo ID for term sheet..

For interest rate information, please click here.

• Time from opening of account to opening of credit line dependent on speed with which current client brokerage transfers securities to client's own new brokerage account at lending institution. Normal time frame is 2-3 days to transfer securities. Credit line agreement issued upon arrival of securities in new account if in electronic format. Time to opening of credit line (ready to wire funds etc.) is usually 72 hours thereafter.

• Clients with stock certificates rather than shares in standard electronic format should add an additional 4 -10 days to opening of credit line to account for conversion of certificate to electronic format and any conversion issues that may arise.

• All transactions commence as variable rate credit lines. Note that thought technically variable, the rate has not changed since 2008 and is not expected to change for the foreseeable future. Clients are advised in advance of any rate change by their advisor. Client is free to convert line to fixed rate, although fixed rates are typically 1-2 percent higher.

• For more details on interest rates, please read our interest rate overview page.

• Borrower can be U. S. or non-U.S. resident with verification. Non-U.S. resident financing terms (e.g., LTV's) may not be identical to terms offered to U.S. residents. (Inquire here)

• Executives, Directors, and those owning 5 percent or more of a company stock will be considered Affiliates ("Insiders") subject to maximum share commitment rules. (Inquire here)

• These are low-documentation credit lines where the focus is on the securities collateral, not on credit. This financing is not reported to credit bureaus and credit reports are normally not pulled nor weighted in determining rates or terms.
  

• Ability to lend in third-party name (e.g., a real estate partnership or a company name. Ability to open account, lend to corporate entities or trusts if desired.

• Individuals holding stock that they expect will have sufficient price/volume to qualify once an IPO (public listing of new stock) has occurred may open an account with our lending institution and obtain a credit line 45 days after IPO, even if lockup (prohibition against sale) is for six months or more. This credit line program does not involve the transfer of title or sale of the underlying securities.

• Underwriting and issuance of term sheet is typically same day as receipt of brokerage account statement (or back/front of stock certificate if in certificate form) and photo ID via the ABN Quote Request page. Please note that any and all client documentation is held in strict confidence per the ABN privacy policy. No information is disseminated to any third parties for any reason.

• Access: Clients may access all of their accounts online, via phone, or via their licensed advisor in person or by phone. A checkbook is also issued to every client upon opening of line. Clients have a brokerage account at institution for their securities, and a cash account provided by banking division of same institutional entity for cash withdrawals and other cash-related activity.

• Interest is not charged until client actually draws cash from their line. Client pays interest wholly on the basis of cash drawn and is not charged any other fees by lending institution.

• Client may optionally choose to have account fully managed by licensed brokerage advisor at client's lending brokerage. A charge of between 1 and 2 percent yearly is assessed for this service, if chosen. Otherwise, client is not charged any management fee. Client is free to trade within account while it secures credit line. In such case, trades are executed through advisor to ensure that securities' value does not drop below amounts needed to maintain account. Advisor continues to provide support and research when needed on a case by case basis even if not fully managing account.

• Please note that as with any institutionally managed financial product, rates and terms are subject to change.