The Private Client Line is designed to help you meet immediate liquidity needs and optimize your cash flow. This line of credit can give you the borrowing power you seek by allowing you or an eligible third party to use a broad range of investment assets in one or more eligible accounts as collateral. Eligible securities can be held in either your investment management account at U.S. Trust or your brokerage account at Merrill Lynch, Pierce, Fenner & Smith Incorporated.

The Private Client Line can help you with a time-sensitive financial obligation or opportunity without depleting cash reserves or compromising your investment strategy. Most important, the Private Client Line supports your overall financial goals by allowing you to keep more of your assets working harder for you.


You can use the Private Client Line to help meet a variety of financing needs, such as:

  • Making a significant purchase
  • Funding retirement living expenses
  • Meeting short-term obligations such as taxes
  • Paying for unexpected emergency expenses
  • Refinancing an existing obligation
  • Acquiring personal and investment real estate
  • Paying for major life events such as an education or a wedding


The Private Client Line provides a convenient way to manage multiple loan advances through one account. There is no need to reapply should you require another loan advance for a different purpose.

Additional advantages of the Private Client Line include:

  • A simple application process, with minimal financial reporting
  • Easy access to funds, generally within one day of line approval1
  • Broad range of securities may be used as collateral
  • Available in any amount, starting at $100,0002
  • No need to reapply for a new Private Client Line each time a need arises
  • Competitive LIBOR-based rates
  • Flexible access options
    • Uncommitted line of credit (variable-rate advances and fixed-rate advances)
    • Standby Letters of Credit available to support transactions with third parties
  • Demand facility — no preset repayment terms although monthly or quarterly interest payments are required for fixed-rate advances
  • No minimum balances
  • No up-front loan or account maintenance fees


Remember that securities-based financing involves special risks. Review your PCL Loan Agreement and its related documents and disclosures carefully with your own tax and legal advisors, keeping in mind that:

  • If your collateral assets lose value, you may be required to provide additional funds to avoid a collateral maintenance call. Because you can lose more funds than are being held as collateral and the loan must be paid back in full, you're liable for any deficiency.
  • Bank of America can change its collateral maintenance requirement at any time without contacting you first.
  • You must satisfy any collateral maintenance calls for additional funds immediately. You aren't entitled to an extension of time.
  • Bank of America can force you to sell any securities or other investments you're holding as collateral, and unless required by law, can do so without informing you first.
  • You can't choose which securities are liquidated or sold.
  • If your securities are sold or otherwise liquidated by Bank of America, there may be tax or other consequences.


Carefully choosing the quality of your investments can help reduce the likelihood of a collateral call. Other risk management strategies you should consider include:

  • Borrowing less than the maximum allowable against your collateral accounts
  • Borrowing against a portfolio of less-volatile securities, such as Treasury securities, high-grade corporate bonds or blue-chip stocks
  • Diversifying your portfolio through an asset allocation strategy that minimizes exposure to losses in one sector of the economy
  • Monitoring your portfolio carefully, especially in periods of volatility, so that you can take appropriate steps to avoid a collateral call


Our credit professionals are among some of the industry's most experienced at meeting complex needs and structuring sophisticated transactions. Moreover, they are supported by the capital base of Bank of America, which gives them the flexibility to fund significant,time-sensitive loans and, in turn, allows you to respond quickly when the situation demands.

1 Draws on the Private Client Line are at the discretion of U.S. Trust and are always subject to the maintenance of sufficient collateral.

2 A maximum line amount will be determined at inception based on client need and the collateral value of the securities pledged. If the client elects that the Private Client Line may be used to purchase or carry marketable securities, federal regulation will limit the collateral value afforded the pledged assets.

The Private Client Line is offered by U.S. Trust and not by or through Merrill Lynch, Pierce, Fenner & Smith Incorporated.

A decrease in the market value of the pledged securities and other investments may require the deposit of additional funds or the liquidation of some or all of the pledged securities and assets. The Private Client Line is uncommitted, and a complete description of the loan terms can be found within your loan agreement.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.")

Please note the following risks associated with securities-based loans:

  • Securities-based loans and using stock as collateral involve a high degree of risk. The investor should read the loan agreement carefully so he or she understands his or her obligations.
  • Market conditions can magnify any potential loss. If the market turns against the investor, he or she may be required to deposit additional securities and/or cash in the account.
  • The securities in the account may be sold in the event that the collateral is deemed insufficient for the level of borrowing, and the bank can sell investors’ securities without contacting them.
  • Some or all of the securities pledged as collateral may be sold at prices higher than what it initially cost the investor to acquire the securities. If that happens, the investor may suffer adverse tax consequences. The investor should consult a tax advisor in order to fully understand the tax implications associated with pledging securities as loan collateral.

Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and securities collateral are subject to credit approval. Securities-based financing involves special risks and is not for everyone. When considering a securities-based loan, consideration should be given to individual requirements, portfolio composition and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. The securities or other assets in any collateral account may be sold to meet a collateral call as provided in the definitive loan documents and the client is not entitled to choose which securities or other assets will be sold. The client can lose more funds than deposited in such collateral account. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult their own independent tax and legal advisors. Certain securities-based loan facilities may require a brokerage account at Merrill Lynch, Pierce, Fenner & Smith Incorporated.

For fixed-rate loans, principal payments made in advance of their due date will be subject to a breakage fee based on any loss or expense incurred by the lender.

This product may not be appropriate for all clients. U.S. Trust offers a wide variety of credit products to help meet client needs.

Neither U.S. Trust nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Bank of America, N.A. and U.S. Trust Company of Delaware (collectively the “Bank”) do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.


A line of credit allows you to take advantage of opportunities as they arise, as well as respond to pressing financial demands without disrupting your overall financial strategy. The Private Client Line provides a convenient and versatile source of credit offered by Bank of America, N.A. that may help you access cash for personal and business needs.
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