All Users of A. B. Nicholas LLC. Services are Asked to Read and
Summary: A. B. Nicholas LLC. (ABN) provides information, research, public-service consultation, and support services to clients seeking competitive, non-transfer-of-title credit lines against a wide range of securities. It uses its position, knowledge,and expertise to help the client to obtain the best rates and terms possible via fully licensed, fully regulated, U.S.-based lending partners who have agreed to make their lending facilities available to the individuals with whom we work.
Status: ABN is therefore not a lender, nor is it a broker-dealer or financial advisor or a member of FINRA or SIPC (though it works exclusively and solely with financial organizations that are members in good standing of those organizations). By proceeding to use this site, you should understand that you are accepting this statement in full and foregoing the right to claim at any time in the future that ABN has held itself out to be a lender, stock broker, or financial advisor when it has stated otherwise herein in clear and unequivocal terms.
SIPC Insurance: The term "insurance" should not be construed to imply that the outcomes or performance of any security at any time is "insured" against loss to the client while part of a LeverageLine or at any other time. The SIPC does not insure the underlying value of the financial asset it protects. In other words, investors always still bear the risk of the market. SIPC does provide a form of insurance covering actions by broker dealers pursuant to a client's account, however. Please visit the Securities Investor Protection Corporation website here for precise details.
FDIC Insurance: The term "insurance" for cash/bank accounts pursuant to LeverageLine financing means that the Federal Deposit Insurance Corporation (FDIC) protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails. For more details on FDIC depositor protections, please visit the FDIC website here.
Role: ABN sees itself as carrying out a public service at a time when potential stock loan clients may be getting complicated and intentionally mixed messages about what does and does not constitute a legitimate, secure, safe lending vehicle for securities-owning client seeking to leverage their assets. ABN takes a firm and unbending position that only lending through fully regulated and licensed, non-private lenders is valid, and that there is no form of nonrecourse stock loan in the market today that does not pose a serious risk to the client investor. We therefore work only with fully licensed, SIPC/FIDC-member financial firms who are staffed with FINRA-member advisors and offer fully financial transparency. We work with only with non-transfer-of-title programs where shares are not sold to fund loans. We offer no other types of lenders or programs.
Fees: ABN is paid a fee for its services by its clients for successfully delivering an acceptable lending facility that meets the above criteria. The fee is based on the estimated credit that will be provided to the client following consultation with our licensed lending institution after receipt of client's brokerage statement and ID to verify identity. A term sheet is generated and client agrees by their signature to pay a fee upon the successful open of their line. Clients may also, at their own discretion, take advantage of a 20% reduction in the fee if they choose to pay their fee within 24 hours of introduction to their lender.
Impartiality: ABN does not route clients to specific lenders in exchange for any form of incentive or compensation of any kind. ABN is therefore not compensated in any manner, at any time, for any reason, by or through any lender or financial firm, directly or indirectly, which includes all of the regulated and licensed SIPC/ FINRA-member firms which provide lending services for our clients.
No Advice: ABN at no time provides investment, tax, buy-sell, or any other type of financial, investment, insurance, or tax advice. ABN provides information, education services, and quotes for non-transfer-of-title securities lending programs where the client's securities remain in an account solely owned by the client, in fully regulated and licensed institutions, and noted above. No form of ownership transfer takes place while and if the client's financing remains in good standing unless the client him/herself chooses to sell their shares.
Guarantee: For credit lines, a simple lien is placed on the account, and the client may continue to trade in the account as long as the securities' value remains within lender required value ranges as an asset-based financing program.
Obligation: Further, no client is required to undertake any credit line program offered through or by ABN, its staff or associates, even after opening their new account at the SIPC-member brokerage that provides the client's funding. In such case, the account is simply a standard fully licensed and regulated U.S. brokerage account that -- as with any account -- may be moved or transferred by the client without limitation. Obligation occurs only when a client has opened their credit line account and drawn cash from it, as with any loan program.
No Signatory: A.B. Nicholas is not a signatory to any financing contract for any program offered through this site. ABN does not manage portfolios, has no contact with client assets, and has no fiduciary or other interest of any kind in the management or outcome of any of the securities used in any of the financing programs ABN facilitates. All decisions regarding financing offered through this site are wholly the responsibility of the client in conjunction with the licensed representatives of his lending institution. Those responsibilities and activities are exclusively handled through the licensed, FINRA-member parties to whom we refer our clients. Despite the fact that our clients' securities are never sold to fund any of our lending programs, ABN focuses exclusively on lending services and does not and will not offer any form of securities buy-sell or tax advice. All clients are urged to consult with a licensed tax or financial planner if they are in need of these services
Taxes: Tax treatment of loan or credit line proceeds is the sole responsibility of the borrower client and ABN cannot and will not provide any tax advice at any time. Decisions made regarding the tax treatment of any financing provided by or through ABN, its staff or associates is therefore the sole responsibility of the client borrower. Please consult with a licensed tax advisor and/or the IRS website (www.IRS.gov) for specific and proper treatment of all loan or credit line proceeds. .
No title transfer: All accounts used in any funding through the ABN website or personnel are titled solely to the securities owner. Title does not transfer during the loan term and no shares are sold through any ABN programs to fund any loan offered herein unless the client him/herself so chooses to do so. Should the client default on their loan or not pay it back, however, some or all of the client's securities may be required to be sold by the lender to satisfy any unpaid obligation as with any secured, asset-based loan.
Illegal Use: Credit line funds many not be used for any illegal purpose nor for the purchase of marginable securities per US FRB regulation. Proceeds of ABN credit lines may not be deposited into any brokerage account.
No Mortgage Brokering: ABN is not a mortgage broker and does not broker mortgages for real estate of any kind. Use of loan proceeds for real estate applications is solely at the discretion of the client borrower and therefore is the sole responsibility of the borrower.
No Affiliation: ABN is not affiliated with the SIPC, FDIC, SEC, IRS, or any of their subsidiaries. Please refer to these organizations' websites for information on their services and programs.
All visitors to this site have been asked to read this Disclaimer thoroughly before proceeding.
This website and domain are the sole and exclusive property of A. B. Nicholas & Co.
A. B. Nicholas & Co.
A. B. Nicholas & Co.
1425 K St. N,
Washington, D.C. 20005