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Private Client Line

Providing a convenient and versatile source of credit

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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.

Address Short- And Long-Term Needs

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

An Efficient, Flexible Way to Access Liquidity

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

Understand The Risks Associated With Your Private Client Line Account

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.

Strategies For Managing Risk

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 

The Resources of a Leader

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.

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