“Nonrecourse Stock Loans” Prohibition

A. B. Nicholas Support

A. B. Nicholas Support

Founder and partner, A. B. Nicholas Securities Finance.

Important:

Please note that it is a violation of your Agent contract with A. B. Nicholas to offer any form of nonrecourse stock loan on your website, in an email, or anywhere else. Individuals who are known to have referred clients into any such program or who have such materials on their websites will be considered in breach of the affiliate agreement and terminated immediately.

It is the firm position of A. B. Nicholas that nonrecourse stock loans — which involve the transfer of a client’s title and ownership to a usually unlicensed, unaudited lender or individual who sells the securities to fund the “loan” — are illegal. A discussion of this type of loan program has been written up at the old website hedgelender.com if you would like to go more deeply into this.

We will be reviewing affiliate websites periodically to ensure that no current agent is marketing or promoting nonrecourse stock loans. If you have any such material on your website, please update and remove it immediately. Thank you.

Facebook
Google+
Twitter
LinkedIn

More Articles

Gem Loans For Low-cost Liquidity

What if the great rates and exclusive client-friendly loan features of our award-winning LeverageLine program for franchisees and real estate investors could be applied to

Read More ⟶

Embedding LeverageLine

Embed Our Program One of the things we often see are clients who have sophisticated financing packages for various uses. Uses such as commercial real

Read More ⟶

Fee Prohibitions

Double Charging Clients Prohibition: Undisclosed Attempts to Charge Clients for A. B. Nicholas Services A. B. Nicholas takes a very strong stand on the issue of

Read More ⟶