While it's true that a margin loan might be the right cash liquidity choice for many stock owners, a standard brokerage margin loan will not meet the needs of everyone. For these stock owners, a STOCK LOAN can serve as a feature-rich alternative to traditional margin-based lending.

MARGIN LOAN (what most broker/dealers offer):
50% loan-to-value Margin/house calls require borrower to cover shortfalls with additional cash or stocks; recourse loan; Lender can demand not only stocks, but additional assets in the event of unpaid shortfall or nonpayment. Default is freely reportable to credit bureaus, especially if the loan is not repaid. Client cash tied usually to one brokerage account unless sold. Cash available by selling stocks outright from account. Regular account statements. Must apply to qualify for margin account; often minimum balance.

STOCK LOAN (what we offer):
Up to 90% loan-to-value; no margin calls for any reason. 100% hedged portfolio limits risk of loss; margin calls unnecessary; nonrecourse loan. Client can freely default at any time, forfeiting only stocks, even if stocks are worthless. Client keeps cash. Nonrecourse freedom means default never reported to credit agencies. Default a borrower right. Loan cash available for any legal purpose, not tied to account. Cash loan means no sale of stock. Tax deferral is possible regular account statements. No qualifying required. Your stocks are your passport to a STOCK LOAN.

QUALIFICATIONS OF A STOCK LOAN:

FLAGSHIP LOAN (Client receives full upside of stock value)
Interest Rates from 9% - Fixed rate will depend on volatility of price and volume security. LTV always 90% - Retire margin debt and get more cash with advance rate of 90% against your stock, instead of 50% offered in margin accounts. Select Terms from 2-10 years - You choose the term which best suits the timing of your personal financial objective. Full upside participation - you keep all upside performance in your stock, no matter how high it goes. Non-recourse, non-callable - No margin calls, no house calls. If your stock depreciates you have the choice to default without attachment of other assets or effect to your credit rating. No payments at all until unit maturity - All payments are deferred until maturity-since you have no payments to make. Your cash can be free to service other debt or any other cash flow requirements. Quarterly Account Statements - you will receive quarterly account statements to monitor the performance of your asset versus your obligation.

CAPPED LOAN
Interest rate from 5.50%-8.5% fixed - Use low, fixed rates to refinance other loans such as real-estate. LTV always 90% - Retire margin debt and get more cash with advance rate of 90% against your stock, instead of 50% offered in margin accounts. Select Terms from 2-10 years - You choose the term which best suits the timing of your personal financial objective. Partial upside participation - You keep 10-15% profit participation per year of term, but maximize the amount of cash off the table. Non-recourse, non-callable - No margin calls, no house calls. If your stock depreciates you have the choice to default without attachment of other assets or effect to your credit rating. No payments at all until unit maturity - All payments are deferred until maturity-since you have no payments to make. YOur cash can be free to service other debt or any other cash flow requirements. Quarterly Account Statements - you will receive quarterly account statements to monitor the performance of your asset versus your obligation.

FLEX LOAN
Interest Rate from 1.99%-7.49% fixed - Use low, fixed rates to refinance other loans such as real-estate. Interest is simple, fixed and due quarterly. LTV's from 35-75% - Retire margin debt and get more cash with higher advance rates against your stock, instead of 50% offered in margin accounts. Select Terms from 2-10 years - You choose the term which best suits the timing of your personal financial objective. The farther out you go in term, the lower the rate which can be offered. With large cap stocks, this could give one the ability to secure fixed financing at extremely low rates to either refinance another obligation or increase cash flow. Rates can be as low as 1.99%...this means that one could lower a monthly payment by as much as 75%. Partial upside participation per year of term, but maximize the amount of cash off the table. Non-recourse, but callable - if the portfolio value drops 20% below the loan value there is a house call for the spread between the portfolio value and the loan value. If this occurs you have to cover the spread with a deposit of cash or collateral, experience an increase in portfolio value above the amount that invokes the house call or elect to default without attachment of other assets or effect to your credit rating. Quarterly Account Statements - you will receive quarterly account statements to monitor the performance of your asset versus your obligation.

SHORT TERM LOAN
Interest Rate at Prime +1 floating; capped @ 11.9% - Current rate is 8.5. LTV's from 30-90% - Retire margin debt and get more cash with advance rates up to 90% against your stock, instead of 50% offered in margin accounts. Prepay at any time without penalty - Use your stock for a bridge loan while anticipating other financing like real-estate or other closings. If your stock goes up you may qualify for credit increase quarterly or pay off your balance without penalty. Full upside participation - you keep all upside performance in your stock, no matter how high it goes. This can be used to retire your note or simply draw more cash quarterly. Non-recourse, non-callable - No margin calls, no house calls. If your stock depreciates you have the choice to default without attachment of other assets or effect to your credit rating. Quarterly review of asset-performance for credit increase - If your stock performs well, you may qualify for more cash with a simple request. All dividends paid to client or apply to loan balance - apply your dividends to your loan or pocket the dividend income- the choice is yours.  Interest can be paid quarterly or have an interest reserve - choose how you want to service the loan based on your personal cash flow situation. Quarterly Account Statements - you will receive quarterly account statements to monitor the performance of your asset versus your obligation.

RESTRICTED STOCK LOAN (not yet available)
Monetize an illiquid - As restricted stock either cannot be sold or is limited to the amount which can be sold, the borrower has a unique opportunity to monetize an illiquid asset to assist in meeting their financial objectives. Interest Rates Fixed at LIBOR +3 / 10 points origination fees are paid to the lender to offset the risk of holding an illiquid asset for the term of the loan. The earliest the Lender can sell the asset is not until after the initial holding period has expired. In addition the Lender agrees not to sell the collateral at all unless default. Shares held in U.S Depository - your shares never leave the U.S; they remain on deposit at a U.S. depository until loan matures or is defaulted. No selling, no share-lending, no market hedges - There is absolutely no market activity in the underlying collateral. The, "hedge," we use to protect the collateral is simply formulated into the LTV and other loan variables. THe stock is never rehypothecated so there would be no effect on market conditions unless default, in which case we maintain the right to liquidate according to 144 regs. LTV's from 15-60% - OTC and Small Cap and Some AMEX stocks will qualify for LTV's as high as 60%. Select Terms from 2-10 years - You choose the term which best suits the timing of your personal financial objective. Variable upside participation - Loans against most small cap issues may have variable upside participation and loans against most large cap issues will have unlimited upside participation. Non-recourse, non-callable - No margin calls no house calls. If your stock depreciates you have the choice to default without attachment of other assets or effect to your credit rating. Quarterly Account Statements - you will receive quarterly account statements to monitor the performance of your asset versus your obligation.

Please note that these criteria apply to stocks trading on the domestic (United States) exchanges. For foreign shares trading in Israel, Great Britain, Japan, Taiwan, Australia, and New Zealand, minimum criteria will be the same as domestic criteria when utilizing blue chip stocks. Please inquire for up-to-date information on stocks in these countries.

This is not to be construed as tax planning, investment, buy-sell, or legal advice. World Capital Bancorp is not a securities company or broker/dealer We are acting in an agent capacity by way of referral and do not offer or sell these types of programs.

REASONS TO GET THIS LOAN:

1) Use the money as a down payment on real estate and get 100% financing
2) Use the cash to resolve tax issues
3) Buy an annuity
4) Use the money to buy insurance
5) Buy a business
6) Pay off debt
7) Use proceeds for anything except purchase of marginable securities