Leverage Line Requirements

*Minimum Securities Collateral Requirements:*

– Your stocks, bonds, or mutual funds must be free-trading or if restricted, with restriction coming off soon.

– Private stock, or stock that is not trading on a major securities exchange, is not eligible.

– Initial IPO stock may be used in a custom loan structure only if the underlying stock is a very strong one, e.g., Snapchat

– Your stock, bond, or mutual fund etc. must trade on average at US $5/share or higher, consistently, over the last three months minimum.

– The average volume of trading activity must come to at least 250,000 shares per day over the prior 90 days. Most stocks on the major exchanges fit this trading minimum without a problem.

– If jointly owned or family owned (for example, as with a married couple or a family trust) then all relevant signatories will need to be party to the final credit line agreement.

– A company (e.g., an S Corp), can be the signatory for the loan.

– If your securities are in an IRA, 401K, or Keogh plan they are not eligible for the LeverageLine program unless removed from the retirement plan.

– There should be no bankruptcy, foreclosure, or abandoned student debt on your credit within the past five years; if there is, you will need to disclose the details at the outset and explain the circumstances to your licensed lender advisor. ABN clients often *can* receive an exemption depending on circumstances, but disclosure is necessary. Please note that failure to disclose can be grounds for termination of the credit line and forfeiture of fees.

– Although credit *is* pulled by your lending institution if you choose to proceed with your line after you sign your term sheet, credit is only used to verify that no bankruptcies or foreclosures have occurred in the past five years, and to verify your identity. It is NOT used to alter or determine your interest rate of loan-to-value.

– No FICO scores are used in this program; no credit rating is required. LeverageLine payments do no show on your credit record and therefore do not affect any other loans you may have.

If you are interested in an *international* (non-U. S.) stock loan transaction eligibility (non-U.S. stock), Please see our international loan requirements (https://abnicholas.com/international) page. Price per share standards are significantly lower, and we can provide funding in local currency via local lender branches, or in U. S. currency via U. S. branches if you qualify.