.

True Loan Stock Loan Benefits

• Access to Liquidity
  
  Generally, restricted stock can not be margined nor receive financing based on its own merit.  And due to Rule 144, even selling stock isn’t an easy option.  However, with the True Loan™ any Affiliate or Non-Affiliate holding restricted shares on an approved exchange now has the ability to legitimately leverage restricted securities in bona fide non-recourse type transactions.
  
  
• Stock Remains In Your Name
  
  Most stock lenders require that you transfer ownership of your collateral or perhaps place your stock into escrow. Although escrow is presumably safer than the full transfer of ownership, in both cases the borrower has taken control of their assets from the one person who is going to protect them best…themselves. With the True LoanT, the securities are full protected first based on the fact that the shares remain in the borrower’s name (not street name) within their own accounts, and, there is a top tier program approved Broker Dealer overseeing the transaction from the delivery of the term sheet to the end of the loan term. Further, the True LoanT offers additional policing tools and strategies in favor of the borrower in order to further ensure the safety of collateral even during the event of a default.
  
  
• Full SEC, FRB and UCC Compliancy
  
  With many stock loans, rules and laws are often violated in some form or another; and where Affiliates are concerned, if restrictive legends are lifted and shares are transferred, there are absolute violations. The True LoanT is fully compliant with the SEC, U.C.C and FRB bodies of law primarily because there is absolutely no transfer of ownership. However, generally speaking, the overall sophistication of the program forces the True Loan to bring all applicable aspects of the law into full view and cause them to commonly converge in order to produce a legally synergistic transaction.
  
  
• Maintain Direct Control of Voting Rights
  
  Most stock lenders force the shareholder to relinquish all actual voting rights, swapping such for a vote by proxy granted to the lender. With the True LoanT the shareholder retains their actual voting rights simply due to the fact that the stock never transfers from their possession.
  
  
• Maintain And Control Dividends
  
  Most stock lenders require that dividends pay down either interest or principal. The True LoanT allows a shareholder to not only keep their dividends, but make their own decisions of what they’d like to utilize them.
  
  
• Completely Private Transaction
  
  Loans in general are private transactions. However, where an Affiliate is concerned, the transaction only remains private so long as the Affiliate DOES NOT transfer their shares. With the True LoanT, simply based on the practice of maintaining shares in the name of the borrower, within the borrower’s own account, where an Affiliate is concerned, the transaction remains private.
  
  
• Limited or No Liability
  
  True LoanT transaction provide for Non-Recourse and Limited Recourse transactions based on both the status of the shareholder and the program method chosen.
  
  
• Avoid or Defer Taxes
  
  Money received from a loan is not considered income and therefore doesn’t cause a tax consequence (unless in an event of default).
  
  
• Hedge Against Market Downturn
  
  One of the general principles of all stock loans is that it is a perfect hedge against market downturn, particularly if the loan is non-recourse.
  
  
• Use of Proceeds
  
  The borrower is free to use proceeds in any fashion or transaction legally allowable.
  
  
• No Margin Call or Maintenance
  
  The True LoanT is not subjected to any margin requirements.
  
  
• Excellent LTV’s
  
  LTV’s can place as high as 80% on restricted securities and 90% on free trading shares.
  
  
• Low Interest Rates
  
  The True LoanT offers rates as low as 4%. All rates are fixed.

To learn more about how a True Loan™ can benefit you or your corporation, please contact our office today, or you can click here to request a quote online.