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TD Bank Collateral Lending

Securities backed line of credit 


Our Collateral Lending Program provides clients with streamlined financing for a variety of needs without liquidating eligible securities within their portfolio1. You can maintain your existing investment strategy while leveraging capital for things like:

  1. Short-term cash flow needs 

  2. Business capital injection

  3. Large purchases including real estate 

  4. Estate planning

  1. Important milestones like education expenses2

  2. Tax planning

  3. Credit card or debt refinancing 

To learn more, call us at 1-866-746-6840 or email TDLoans@td.com.

What are the benefits of Collateral Lending?

  • Liquidity solutions

    Access cash using your portfolio as collateral without selling positions or creating taxable events.

  • No fees and competitive SOFR-based rates

    Typically, fixed and variable loan rates are lower than traditional banking products. Additionally, there are no origination or annual fees.

  • Expedited approvals

    Our online application and streamlined underwriting3 means you'll get answers quickly.

  • Simplified lending process

    Less documentation than traditional lending products.

How does the program work?

Choose your secured lending option:

  • Line of credit: Get the flexibility to access cash anytime with interest-only payments
  • Fixed-rate loan: Get cash in a single lump sum with fixed rate options and principal and interest payments

Note: Funds from these credit products may not be used to purchase, carry, or trade additional securities. Debt incurred for this purpose may not be repaid with a securities backed loan or line or credit.

Line of credit and rates

Your line of credit is based on the lendable value of your eligible security holdings. 

Listed Stocks, Exchange Traded-Funds5 (non-purpose loan)

Collateral Type

Maximum Advance Percentage4

Option Eligible Securities ($5.00+)

70%

Listed Securities ($3.00+)

50%

Listed Securities (under $3.00)

0%

OTC Bulletin Board 

0%

U.S. Government Obligations

Collateral Type

Maximum Advance Percentage4

US Treasury Bills

99%

Treasury Bonds

96%

U.S. Agency Bonds

85%

State/Municipal Bonds (investment grade) 

80%

U.S. Corporate Bonds (investment grade)

85%

U.S. Commercial Paper (investment grade)

85%

Cash, TD Time Deposits and TD Savings Accounts

100%

Money Market Funds 

Collateral Type

Maximum Advance Percentage4

TD Money Market Funds ($1.00+)

95%

Other Money Market Funds ($1.00+)

70%

Money Market Funds (<$1.00)

0%

Mutual Funds

Collateral Type

Maximum Advance Percentage4

Diversified Mutual Funds6 ($5.00+)

70%

Other Mutual Funds ($3.00+)

50%

Other Mutual Funds (under $3.00)

0%

Other investment assets, including but not limited to non-U.S. stocks, sovereign dept, and corporate obligations may be deemed Eligible Collateral by Bank from time to time.

How do I qualify?

Your portfolio should contain enough eligible securities, including:

  1. Marginable equity securities including most mutual funds and Exchange-Traded funds (ETFs)

  2.  Cash and cash equivalents, like certificates of deposit

  3. Fixed-income investments, including most investment-grade corporate, Treasury, municipal, and government agency bonds

Not all security holdings or account types are eligible to participate.

Eligible accounts:

  • Individual and joint accounts
  • Trust accounts and comparable structures
  • Asset holding companies and wealth management vehicles such as corporations, LLCs, and LPs

Ineligible accounts:

  • Retirement accounts
  • Operating entities and not-for-profit accounts

What else do I need to know?

Learn more about the details and conditions of our Collateral Lending Program: 

  1. The risk of using your portfolio as collateral is not for everyone – your Wealth Lending Advisor can answer any questions you might have

  2. Once an account has been pledged as collateral, the holdings within that account cannot be withdrawn without lender approval. Pledged accounts cannot be used for options trading (I.e., spreads and covered call writing), have any payment features like check-writing, or have margin capability

  3. Minimum monthly payments are required

  1. The approval process includes a credit inquiry that may impact your credit score

     

  2. Additional funds or securities may be required if your pledged securities value goes down

  3. The loan can be called at any time, without notice, and some or all of your securities can be sold to meet the call. This may result in tax consequences for you

Ready to get started?

Talk to a Wealth Lending Advisor to learn more about how the Collateral Lending Program can help you meet your cash flow needs without jeopardizing your future goals.

Call us at 1-866-746-6840 or email TDLoans@td.com.

1Eligible is defined as taxable readily marketable securities traded on a major exchange. Tax-deferred assets are not eligible. Each security will have its own advance rate.

2TD Bank does not offer closed-end consumer loans for the purpose of financing post-secondary education expenses.

3Not all loans will be processed digitally. For loans that are not standard, paper process is still available today.

4These represent maximum percentages. Bank reserves the right to reduce the percentages from time to time in its sole discretion without notice to Pledger or any other party.

5 TD Bank, N.A. does not accept applications for loans for the purpose of satisfying margin obligations. Loans for the purpose of purchasing or carrying margin stocks are limited by Regulation U to a maximum Advance Percentage of 50%, or such other percentage as may be established by the Federal Reserve Board from time to time.

6Diversified as defined by the Investment Company Act of 1940.

*For lines of credit over $25 million and loans of any size, full documentation will be requested.

The TD Bank, N.A. Collateral Loan offering is provided by TD Bank, N.A., member FDIC (TD Bank). The TD Bank Collateral Loan offering requires a securities account at an approved custodian or broker dealer, and sufficient eligible collateral to support a credit facility of $100,000.

Securities and other investment products are not a deposit; not FDIC insured; not insured by any federal government agency; not guaranteed by TD Bank, N.A. or any of its affiliates; and, may be subject to investment risk, including possible loss of value.

All securities and accounts are subject to eligibility requirements. Eligible securities are generally taxable readily marketable securities traded on a major exchange. Tax deferred assets are not eligible. All loans and lines of credit are subject to credit approval, verification, and collateral evaluation. Certain restrictions and terms and conditions apply. Each security will have its own advance rate. TD Bank may change its advance notes and collateral maintenance requirements at any time. A complete 

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