An Easy Plan - Worldwide Stock Loans
Step 1
Borrower provides ticker symbol, stock exchange, desired loan amount and number of shares to be pledged.
Step 2
A written Term Sheet is provided outlining lenders terms. Borrower signs the Term Sheet and submits together with copy of Brokerage Statement and photo ID.
Step 3
Lender issues a Know Your Client (KYC) form for borrower to fill out
Step 4
Lender prepares the Master Loan Agreements for borrower to sign. Master Loan Agreements is signed by borrower and lender.
Step 5
Upon execution of Master Loan Agreements, the lender and borrower make arrangements to transfer borrowers securities to lender or to custodian bank/transfer agent.
Step 6
If a custodian is used, then a 3-way agreement is signed by borrower, lender and custodian and a “Closing Statement” is prepared. Client deposits the shares with custodian bank/transfer agent or with lender
Step 7
Lender wires the funds to any account in any country that borrower chooses. Borrower is in possession of funds and may transfer elsewhere or withdraw. The lender does not control use of funds or the country that borrower chooses to receive funds in.