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Summary: A. B. Nicholas LLC. (ABN) provides information, research, public-service consultation, and related support services to clients seeking competitive, non-transfer-of-title credit lines via licensed U. S. institutions against a wide range of securities. It uses its position, knowledge,and expertise to help the client obtain the best rates and terms possible via fully licensed, fully regulated, U. S.-based lending partners and advisors within those institutions who have agreed to make their lending facilities available to the individuals with whom we work.
Licensing: A. B. Nicholas is not a licensed financial planner/advisor, mortgage broker, or stock trader/broker, nor an employee of the licensed lending institutions with which we have partnered, and does not hold itself out as such. Our services are limited solely to research, sourcing, referral and support for this particular product and service. Our lending partners, by contrast, are fully licensed U.S. institutions, fully regulated and in good standing with publicly available financials required of all publicly traded companies; clients are welcome and urged to review and inspect the financial, managerial, or other aspects of these lending institutions. Individual advisors with whom we work are licensed in at least one pertinent field, e.g., Certified Financial Planning, in more than one state. In some cases, these advisors may not be licensed in a particular state for financial planning services and will therefore not offer their specific advisory services in that state, unless they obtain licensing to do so prior to delivering these advisory services.
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.
ABN Service Role: ABN sees itself as carrying out a quasi-"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 public U.S. brokerage and bank lenders offers the required level of security and validity. Our position also is that there is no form of nonrecourse stock loan in the market today that does not pose a serious potential risk to the client investor. We therefore work as noted only with fully licensed, SIPC/FIDC-member financial firms who are staffed with FINRA-member advisors with appropriate licensing (e.g., Certified Financial Planners) and that offer full financial transparency. We work only with non-transfer-of-title programs where shares are not sold to fund loans. We offer no other types of lenders or programs and we are not mortgage brokers by any definition.
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. A. B. Nicholas accepts no advance or up-front fees for any reason. Fees are only due upon successful opening of the client's line of credit as agreed.
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. The delivery of a particular lending facility, therefore, represents a facility that we honestly believe to be the best of its type and class 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 and research, and support 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 as noted above. The brand "LeverageLine" encompasses these characteristics. 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. Shares may only be sold if the client refuses repayment of line and/or to make any acceptable repayment arrangements with lender.
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. The lien is only exercised if the client defaults on repayment and make no acceptable arrangements to repay their line of credit.
No Obligation: 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, SIPC-insured 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 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 ABN refers its clients. ABN focuses exclusively on lending support 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.
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A. B. Nicholas & Co.