PROCESS

Once initial eligibility is established the stock loan provider will issue an official Term Sheet outlining the terms, conditions and mechanisms of the loan. The Term Sheet is not an official offer and does not constitute a legal agreement but is merely the basis on which a legal agreement will be built. The Term Sheet must be signed and returned within 4 days of issue to remain valid.

When a signed Term Sheet is submitted, the stock loan provider will issue an official KYC document. This is a very important part of our underwriting process. The stock loan provider is obliged to meet all global KYC and Anti – Money Laundering (AML) regulations and requirements. It is imperative that this document is filled out completely and all supporting documentation be submitted along with the KYC.

Supporting documentation generally includes:

1. Identification documents for individual borrowers.
2. Current brokerage statement showing the shares that are to be pledged (other balances may be hidden).
3. For Corporate borrowers – documentation showing signatory authority as well as Corporate proof of address. (i.e. a utility bill showing the corporation name and address).

Once the fully completed KYC and all supporting documentation is received by the stock loan provider– the real underwriting process begins. Generally, within a week an Official Loan Agreement is issued. This document is legally binding and outlines the final terms, conditions and offering on the table. This document must be signed by the borrower and notarized and returned to the stock loan provider. Initial documents can be emailed but originals of the document must be mailed directly to the stock loan provider.

Immediately following confirmation that the collateral shares are transferred to the Custodial Account, the loan funding occurs immediately and the proceeds are deposited in the location and currency of the share owner’s choice.