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.
All loans and lines of credit are subject to credit approval, verification, and collateral evaluation. Certain restrictions and terms and conditions apply. Borrowing with securities as collateral involves certain risks and is not suitable for everyone. If the market value of your pledged securities declines below required levels, you may be required to pay down your loan or line of credit or pledge additional securities in order to maintain it, or the lender may require the sale of some or all of the securities in your account. The sale of your pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. TD Bank, their affiliates, and employees do not provide legal or tax advice. All securities and accounts are subject to eligibility requirements. Financing real estate with a securities-based loan or line of credit carries risk and may not be appropriate for your needs. A complete assessment of your circumstances is needed to help you determine which type of loan provides the best fit.
Please read all lines of credit documents carefully. The proceeds from some securities-based lines of credit may not be used to purchase additional securities or pay down margin. Securities held in a retirement account cannot be used as collateral to obtain a loan. Securities purchased in a pledged account must meet collateral eligibility requirements.
The TD Bank, N.A. Collateral Loan offering is provided by TD Bank, N.A., member FDIC (TD Bank). 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. Borrowing with securities as collateral involves certain risks and is not suitable for everyone. A complete assessment of each client’s individual circumstances is needed when considering a securities-based loan.