Liquidity Access Line
- 1. LIQUIDITY ACCESS LINE A line of credit designed to help keep your portfolio intact.
- 2. 1 Liquidity Access Line is offered by Morgan Stanley Private Bank, National Association. A Liquidity Access Line1 allows you to use the eligible securities in your brokerage account as collateral for a line of credit. You can finance real estate purchases, fund tax obligations, cover business expenses or any other financing need — without liquidating assets. There are risks associated with using securities as collateral for a securities based loan, including possible margin calls on short notice. See the disclosures at the end of this brochure for details. T H E B E N E F I T S O F Liquidity Access Line Competitive floating- or fixed-interest rates with typically no fees. Simple application process and easy to manage online. Access funds on demand. Funds are ready when you are. Your current investment strategy remains intact. Flexible repayment options. 1 2 3 4 5
- 3. LIQUIDITY ACCESS LINE Borrow against portfolio to access financing LIQUIDATE ASSETS Sell existing assets or use cash reserves TRADITIONAL BANK LOANS Commercial and residential mortgage loans, including home equity lines of credit, student loans, etc. GETTING STARTED Simple application process N/A No personal financial statements, multiyear tax returns or other documentation required 1 Credit decision typically in 1-2 days N/A Quick access to funds 2 COSTS Typically no fees 3 Lower interest rates than other loan options 4 N/A CONSIDERATIONS Flexible repayment options 5 N/A No impact to your credit scores Your current investment strategy remains intact No re-approval needed for multiple loan advances 5 N/A 1 Liquidity Access Line is offered by Morgan Stanley Private Bank, National Association. A Liquidity Access Line1 allows you to use the eligible securities in your brokerage account as collateral for a line of credit. You can finance real estate purchases, fund tax obligations, cover business expenses or any other financing need — without liquidating assets. There are risks associated with using securities as collateral for a securities based loan, including possible margin calls on short notice. See the disclosures at the end of this brochure for details. When You Need Funds, Which Path Do You Choose? 1 In most cases. Additional supporting documentation may be requested for underwriting purposes for certain borrower types such as trusts, corporations, partnerships or nonprofits. 2 Once approved, you can quickly access funds by wire, check or electronic transfer. 3 Clients typically will not be charged a fee to obtain a Liquidity Access Line with standard terms and conditions. Please see the disclosures appearing at the end of this brochure for important information on the potential fees associated with Liquidity Access Line. 4 Comparison based on interest rates quoted by banks for installment loans or home equity lines of credit. 5 Subject to the provisions of the loan agreement.
- 4. Liquidity Access Line (“LAL”) is a securities-based line of credit product offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. All LAL lines of credit are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. LAL lines of credit may not be available in all locations. Rates, terms and conditions are subject to change without notice. To be eligible for an LAL line of credit, a client must have a brokerage account at Morgan Stanley Smith Barney LLC that contains eligible securities, which shall serve as collateral for the LAL. In conjunction with establishing a LAL line of credit, a LAL facilitation account will also be opened in the client’s name at Morgan Stanley Smith Barney LLC at no charge. The ongoing availability of the LAL is contingent, among other things, on a client maintaining sufficient eligible collateral. Other restrictions may apply. The information contained herein should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is a Member FDIC that is primarily regulated by the Office of the Comptrol- ler of the Currency. The proceeds from an LAL loan/line of credit (including draws and other advances) may not be used to purchase, trade, or carry margin stock; repay margin debt that was used to purchase, trade or carry margin stock; and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. A fee may be charged for the issuance of a letter of credit, for prepayment of principal on fixed rate advances, and upon a client’s request for certain cash management services (e.g., duplicate statement or check re-order). In certain cases, a client may be responsible for third-party legal fees when Morgan Stanley Private Bank, National Association engages the firm to review complex Liquidity Asset Line transactions. Borrowing against securities may not be suitable for everyone. You should be aware that securities-based loans involve a high degree of risk and that market conditions can magnify any potential for loss. Most importantly, you need to understand that: (1) Sufficient collateral must be maintained to support your loan(s) and to take future advances; (2) You may have to deposit additional cash or eligible securities on short notice; (3) Some or all of your securities may be sold without prior notice in order to maintain account equity at required maintenance levels. You will not be entitled to choose the securities that will be sold. These actions may interrupt your long-term investment strategy and may result in adverse tax conse- quences or in additional fees being assessed; (4) Morgan Stanley Bank, N.A., Morgan Stanley Private Bank, National Association or Morgan Stanley Smith Barney LLC (collectively referred to as “Morgan Stanley”) reserves the right not to fund any advance request due to insufficient collateral or for any other reason except for any portion of a securities-based loan that is identified as a committed facility; (5) Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; and (6) Morgan Stanley reserves the right to call securities-based loans at any time and for any reason. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment services are offered through Morgan Stanley Smith Barney LLC. Unless specifically disclosed in writing, investments and services offered through Morgan Stanley Smith Barney LLC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, a bank and involve investment risks, including possible loss of principal amount invested. © 2015 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 1137706 6/15 CS 8185312 04/15 LIQUIDITY ACCESS LINE. Let’s have that conversation.