Corporate Executive Services External Loan Payoff Process

LOANADVANCE

EXTERNAL LOAN PAYOFF GUIDE

Quick Steps:

1. Confirm That the Investor¡¯s Legal Address Is in an Eligible Country

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United States

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Eligible Foreign Countries:

o

Argentina

o

Cayman Islands

o

Peru

o

Bahamas*

o

Chile

o

Puerto Rico

o

Bermuda

o

Costa Rica*

o

Mexico*

o

Brazil

o

Panama*

o

Uruguay

o

British Virgin Islands (BVI)*

* Applications for Investors with legal addresses in the Bahamas, BVI, Costa Rica, Panama and

Mexico require additional approval.

o

Complete the LoanAdvance International Jurisdictions Review form found on the

Marketing Center in NetX360 and submit to the Corporate Executive Services team

via Service Center.

2. Determine Loan Value of the Collateral Accounts

Provide the most recent client statements from the non-purpose loan account

(debit account) and collateral supporting the loan at contra firm to Corporate

Executive Services via email CES_DEPT@.

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Symbols or CUSIP¡¯s must be disclosed on the statements for the collateral

review.

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Most current statements will be the prior month¡¯s statement.

3. Open the Non-Purpose Loan (NPL) Account

Once CES Department confirms that there is sufficient collateral to cover the loan

payoff amount, establish the investor¡¯s NPL account in the designated NPL office

range using the appropriate account category codes:

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?

?

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NPLI (Individual)

NPLJ (Joint)

NPLC (Corporate)

NPLP (Partnership)

NPLT (Trust)

Note: Copy relevant supporting documents from the retail account to the NPL account.

4. Required Documentation

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LoanAdvance Toolkit:

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Federal Form T4

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Interest Rate Acknowledgement Form

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LoanAdvance Lending Agreement

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Account Transfer Form

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Payoff letter signed by client

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Additional documentation (if applicable)

o

Loan Advance Check Writing Application (for LoanAdvance checkbook)

o

LoanAdvance Guaranty of Account Form (for linking accounts with different

registrations)

o

Supporting documentation for trust, partnership or corporate accounts

5. Review and Submit Loan documents to Pershing

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Perform account and document review prior to submitting to Pershing

for review.

o

All ACH, periodic instructions, checks and debit cards need to be

cancelled from the client¡¯s account at the contra firm prior to

paying the loan off.

o

If the contra firm is not listed below (Appendix B), please provide

a direct contact to CES.

o

Delivering and receiving collateral accounts must have same

registration to accommodate a transfer of assets (ACAT). If

registrations are not identical, additional paperwork will be

required.

o

Confirmed that all collateral accounts are not set up with the

following:

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Collateral account cannot have margin booked on the account

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Accounts cannot have Fully Paid Lending

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Accounts can only be set up with Corestone Checks

Once all the documents are in good order, please send them via email

to Corporate Executive Services CES_DEPT@.

APPENDIX

External Loan Payoff Process

Supporting Document Requirements

You must ensure that trust and corporate documents have the margin/borrowing language included.

Only the individuals authorized to act on behalf of the entity can sign LoanAdvance forms. Examples

of required documents for entities.

o Corporate Resolution

o Partnership Agreement

o Trust Certification Investment Powers (TCIP)

o Power of Attorney document.

o Must be dated within 3 years. If not, Affirmation of Full Force and Effect is required.

o

o

If trying to add a POA to a Trust account, the POA document needs to clearly state

the POA can act on the trust assets.

If trying to add a POA to a Partnership account, the POA document must mention

the Partnership. In addition the Partnership formation Agreement must give the

General Partner the authority to delegate responsibility to the POA.

Payoff Letter

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List of contra firms that are using the industry payoff letter

? Wells Fargo

Stifel

? R.W. Baird

Northern Trust

? Merrill Lynch

Janney Montgommery Scott

? Morgan Stanley

Charles Schwab

? UBS

Raymond James

? BB&T

US Bank

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If the contra firm is not listed above, you must use Pershing¡¯s payoff letter

Contact Information

TEAM/DEPARTMENT

CONTACTS

Corporate Executive Services

Main Hotline: (877) 778-7248

LoanAdvance Operational Support Team

International Hotline: (201) 413-2899

Monday¨CFriday 9:00 a.m. - 5:30 p.m. (ET)

Fax Server: (866) 355-5572

International Fax Server: (201) 333-8842

Asset Movement

(888) 367-2563, option 2, 7

Monday¨CFriday 8:30 a.m. - 6:00 p.m. (ET)

Asset Management Accounts (Check Writing)

Monday-Friday 8:30 a.m. ¨C 6:00 p.m. (ET)

(888) 367-2563 Option 2, 4

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