PDF BULLETIN Investment Products - Pershing LLC

BULLETIN

Investment Products

LoanAdvance? Securities-Based Lending Requirements

With LoanAdvance?, available through Pershing LLC, a BNY Mellon company, your firm's clients can borrow based on the value of securities held in their brokerage accounts. The charts in this communication detail the current LoanAdvance maintenance requirements for all types of securities. NOTE: Requirements in this document are subject to change by Pershing at its sole discretion. This document is for the general guidance of your firm only and may not be given to third parties.

This Bulletin represents Pershing's policy on this subject.

Please review this policy carefully, as it impacts your firm.

LoanAdvance Securities-Based Lending Requirements

Type of Security

Stocks Initial loans are not extended on stocks trading below $5 per share

Maintenance Requirement

Loan Value

The greater of 30% of the market 70% of the market value

value or $3 per share

(Loan value will be less than

70% if the security is priced

under $10 per share.)

Mutual Funds and Unit Investment Trusts (UITs)

Offshore mutual funds will be considered for collateral if accompanied by a fact sheet and approved by Pershing's Credit Risk Management Department.

100% of the net amount for the 70% of the market value

first 30 days after the settlement

(Loan value will be less than

date or payment date of the trade

70% if the security is priced

(whichever date is later)

under $10 per share.)

The greater of 30% of the market value or $3 per share once the holding period has been satisfied

Fixed Income Securities

Corporate Bonds

Convertible bonds

Interest-paying corporate debt (rated no lower than BAA3 by Moody's or BBB by S&P?)

Municipal Bonds

Interest-paying municipal bonds (rated no lower than BAA3 by Moody's or BBB by S&P)

30% of the market value 25% of the market value

25% of the market value

70% of the market value 75% of the market value

75% of the market value

BULLETIN

Last Updated: 02-17

Effective Date: 09-04-08 1

? 2017 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public.

LoanAdvance Securities-Based Lending Requirements (continued)

Type of Security

Government Securities U.S. government direct

obligations (for example, bills, notes and bonds)

Maintenance Requirement

8% of the market value if 20 years to maturity

7% of the market value if 10 years to maturity

6% of the market value if five years to maturity

5% of the market value if three years to maturity

4% of the market value if one year to maturity

3% of the market value if less than one year to maturity

Loan Value

92% of the market value 93% of the market value 94% of the market value 95% of the market value 96% of the market value 97% of the market value

U.S. government agency and pass-through securities (for example, Government National Mortgage Association [GNMA] and Federal National Mortgage Association [FNMA])

10% of the market value

90% of the market value

NOTES:

Loan value is not extended on interest-paying bonds trading below $40 per bond or on zero coupon bonds trading below $10 per bond.

Loan value can be extended on zero coupon bonds trading at $10 or above but is subject to special requirements. Please contact Pershing's Corporate Executive Services Department to determine the loan value.

Concentrated or volatile securities may be subject to higher maintenance requirements.

Contact Pershing's Corporate Executive Services Department regarding anticipated client account debit balances of $2 million or more, or in connection with requirements for unusual or extraordinary transactions or situations. Such requests will require approval from Pershing's Credit Risk Management Department.

Loan value is not extended on restricted or control securities unless approved by Pershing's Credit Risk Management Department.

Cash cannot be used as LoanAdvance collateral

Offshore Mutual Funds must meet certain requirements to be eligible for review. These requirements include:

o Must have a U.S. Counterparty

o Must have daily redemption

BULLETIN

Last Updated: 02-17

Effective Date: 09-04-08 2

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