General Loan Eligibility Criteria

Summary:
Most U.S. securities, including bonds, both corporate and government (e.g., municipal bonds); Treasury bills, Treasury strips, all types of mutual funds; and all stocks with established public markets. Quality and size of the portfolio determines offer, and verification of the owner and his/her securities is required. For loans with limited recourse features, a public option must be available and the securities must be marginable.

NOTE: For our hedged portfolio loan program, any eligible stock ticker for which there is an existing public option can be considered. This is an program providing limited recourse benefits to the borrower in default. The program is particularly suited to portfolios containing multiple marginable stocks or other securities. Contact us here for more.

NEW for March, 2010, our institutional loan facility can now be utilized with verified and certified works of art provided they have been officially certified and valuated by a major professional appraiser such as Christies, the ADAA, or equivalent.

No private, non-trading, non-marketable stock is accepted at this time. No bank guarantees, MTN's, or standby letters of credit are accepted as a rule. Foreign shares are acceptable. Please inquire for latest status. (Note please: This should not be construed as a recommendation to purchase or not purchase any particularly security, but is for general illustrative purposes onkly. HedgeLender LLC does not offer any form of financial advice, securities buy-sell advice, insurance products advice, or investment or tax advice of any kind. Borrowers are expected to consult with a licensed professional in their state of jurisdiction for advice and guidance in these areas.)

Minimum Value of Collateral Securities, Total:
$120,000. Note please that our highest LTV, 95%, is reserved for federal securities such as T-bills. The normal maximum for all other cases is 85% of portfolio value. This institutional program is designed principally for high net-worth clients with portfolios containing multiple stocsks, bonds, and other securities. Individuals with concentrated positions in single stocks are welcome to apply, although share totals that can be pledged for these loan programs for affiliate shareholders may be subject to regulatory limits.

Volume:
$100,000 per day trading on average, minimum. (Price * Average Volume = Average Daily Trading Amount).

Price:
$5 per share. Best offers for securities trading at over $8/share. (For portfolios with lower prices or which are ineligible for the institutional program, we will be happy to refer client to an outside company's well-documented transfer-of-title lending style lending program.) Inquire for more information.

Other:
Marginable shares with public options are required for limited-recourse-in-defualt structure. (More)

TIPS and NOTES:

We recommend that you check the historical data on your securities before requesting your loan quotes so that you can be privy to the same data that will be used to evaluate and underwrite your loan. Yahoo Finance, MarketWatch, and other online services make this information available for free. Check the minimum average loan volume and price history a to obtain a general idea of the strength or weakness of a portfolio as loan collateral.

It bears repeating that rates and terms come to those securities with good demand, that is, with strong and steady volume and price and relatively low volatility (few extreme, dramatic swings in price over short periods). Prices over $8/share typically get the very best loan quotes as long as volatility is low and volume is strong and steady and the shares are marginable with public options. Most stocks on the major exchanges fall into this category, and many mid-tier-to high-quality securities also get premium quotes. Larger portfolios normally receive the most flexible consideration from your lender..

However, there is a wide range of criteria and conditions to be considered and the criteria you see on this page represents only general statements. Other notes:

• All applicants will be required to deliver proof of securities in advance via an account statement and to speak directly with a staff member prior to issuance of a term sheet. A Concentrated Position Worksheet (for those presenting a single security as collateral) or a Rate Request Form (for those with multiple securities in thier collateral portfolio) will be issued to allow underwriting to accurately develop your loan quote.

• Please recognize that each stock, bond issue, or mutual fund etc. will have its own unique characteristics and many of these securities may find themselves eligible for a quote despite missing these general criteria guidelines. This program is very flexible and all inquires are welcome.

• Your one application is all that is necessary to be considered for all of the programs and features for which your portfolio is eligible. We can facilitate a stock loan or securities finance program customized to a wide range of securities.

Please contact us and let us know how we might be of assistance.