Midtown Capital Group of New York is pleased to offer a groundbreaking product in the securities lending market, an institutionally managed custom securities-based line of credit with very high cash advance rates and flexible features not normally found in financing of this type. The result is a dependable, low-cost, secure financing alternative that can be the perfect complement to your existing financial options or a complete replacement for the bank financing you now have in place.

Key Features
With all of these structures your collateral stocks, bonds, T-bills, mutual funds or other securities remain exclusively in your title in in your own SIPC-insured account at one of several major U.S. brokerage and banking firms we've arranged to operate this custom loan facility. Online 24/7 access to the securities provide you with the full monitoring, record-keeping, and control you are accustomed to with any modern U.S. brokerage or bank account. Management is provided through the licensed account advisors and other than opening your account at the lending institution - which your lender can usually accomplish same day in a matter of hours - your lending facility will appear no different from any modern brokerage/bank facility.

But because this is a custom lending program, it's no ordinary financing facility - not by a longshot. Midtown has made us of private banking relationships to help incorporate features not typically available in credit lines of this type. We offer a loan-to-value of up to 95%, for example, the highest practical legal limit on a leveraged line of credit of this type.

We offer the freedom to switch from fixed to LIBOR-based rates or vice versa mid loan, with lender's consent; freedom to swap one set of collateral for another of like value and thereby to trade in the account; no set principal repayment schedule; freedom to refill the credit line or apply for higher credit limits if the shares increase in value; receipt of any and all growth in the portfolio over time to the borrower alone; a limited-recourse option for protection against default; support for existing advisor relationships at your previous brokerage should you choose to protect your relationship with them; very fast "limited-doc" closing, since your securities are in effect your "credit"; a very wide range of eligible securities, far more than is normally possible; flexible, custom solution-oriented support for difficult or challenging situations under a "can-do" philosophy that will pull out all stops to get your funding concluded to your satisfaction; and a tried-and-true leveraged, line-of-credit style loan with no sale of your securities. That means a leverage of your assets, not a sale.

Familiar structures. No complicated or unfamiliar terms with this line of credit, no unfamiliar methods or structures. You simply open your account at the major U.S. institution that funds our program and transfer whatever shares you wish to use to guarantee your credit line (your lender will help you do this quickly and electronically). You review your credit line document, and then when/if you are ready, conclude your credit line documents. There is no obligation to proceed with your loan- you can even close your new brokerage account and send your shares back - at any time, if you wish, up to and unless you choose to proceed with your line of credit.

Once concluded, it is a true line of credit. There are no set principal payments required, and you can pay down then re-use the line as you wish, when you wish. You need only make the low monthly interest payments to keep it current. Reasonable collateral value maintenance of course apply, but your institutional will always work with you to help quickly resolve any issues should they arise. Your lender's goal is to retain your business as borrower as a long-term customer. Your satisfaction is primary.

Your collateral shares then receive a simple lien to secure the loan, which is lifted upon repayment. You can reactivate your line of credit when you need it; take all or some; repay some of the principal and have that available for future drawdowns; or keep the line alive by maintain the very reasonable monthly interest payments.

Closing is therefore very fast with this loan program - typically 48 hours from signing of loan document to availability of your credit line cash. Cash is deposited immediately into your account at the institution or any other valid U.S. account. Access is immediate and easy - by Visa/ATM, check, or direct wire transfer as soon as your line is authorized.

A Ready Line of Cash for any purpose. There are no set payments of principal required and provided that your interest payments and collateral are maintained, the line of credit can be used and reused -- all without selling a single stock or bond. Real estate investors, for example, who need to move quickly to take advantage of sudden opportunities need no longer wait weeks or months for full-doc paperwork or approval; this is a "limited-doc" program primarily focused on the quality of your securities' collateral. For real estate professionals, there are no limits to the number of properties that can be purchased using this lending facility.

Underwriting Requirements
Publicly traded stocks, municipal/state/federal securities, exchange-traded funds, and all forms of mutual funds. $100K minimum portfolio size. Ideal for portfolio's over $1M in initial value. CMO's and other mortgage-based securities eligible if bundled with other quality securities. (Inquire for further information.) A healthy trading market for the securities is always best; a good volume of trading over six months or more is preferred.

No Red Tape
Your securities are the primary determinant of your eligibility. Minimal paperwork, no FICO scores. A "soft" credit check is run by the banking division of the institution to ensure that you have no tax or divorce liens on your collateral assets. These are typically the only potential impediments to speedy closing of your credit line.

Pay Off Anytime
Your line of credit can be paid off in full at any time to release the lien on your collateral shares. Assuming your interest payments are up-to-date, you may pay off any remaining principal on your credit line and notify your lender to terminate the funding. Liens are removed immediately upon repayment - there are no delays, as the collateral assets have always remained in exactly the same location.

Stay Focused On Your Investment Objectives
No capital gains taxes since your shares are not sold but simply leveraged as collateral into a credit line. This means instant access to the value in your securities - without losing them permanently as you would with a sale event. No asterisks, no fine print. All of the value in the portfolio belongs to you as the rightful owner of your securities throughout. There is no lender participation or claim to any of the upside growth in stocks if they appreciate in value over time. Obviously, if you default on your loan, the assets (collateral) reverts to the lender. But this is only in the case of default, and if you are concerned about this scenario you may seek to created a hedged portfolio variation of your loan structure (available if your shares are marginable). Inquire.

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