Securities-based lending^{Disclosure 1}

Securities-based lending carries special risks that you should consider carefully within the context of your personal investment philosophy and risk profile. Here are some of the potential risks involved in securities-based lending.

• For a secured line of credit to remain in good standing, the assets held in the collateral account must be maintained above a set minimum value.
• A decrease in the collateral account’s value may limit your ability to obtain advances. It may also require you to pay down the loan—or deposit additional securities—to avoid the forced sale of assets in the collateral account.
• Stock concentration within an account may impact collateral eligibility.
• Clients aren’t entitled to an extension of time to meet collateral maintenance requirements.
• If you’re unable to meet a collateral call, Truist can force the sale or liquidation of any securities or investment property in the collateral account. Clients aren’t entitled to choose which securities in the collateral account are liquidated or sold.
• A forced sale of assets in your account could have adverse tax consequences and impact your long-term investment strategy.
• Truist’s Wealth Secured Line of Credit is a full-recourse loan, and clients are liable for any deficiency.
• An increase in interest rates will affect your overall cost of borrowing.

Talk to your advisor to learn more about the risks of securities-based lending and how they may impact you.

You can use funding from a securities-backed loan in a variety of ways to meet your financial goals. Here are a few common examples.

• Investing in a business opportunity
• Purchasing luxury items such as a car, boat, or fine art
• Acquiring personal or investment real estate
• Funding tax obligations
• Paying for wedding or tuition expenses
• Purchasing additional securities

Some restrictions may apply—speak to your advisor to learn more.

Securities-based lending can be a great option for any type of investor looking to unlock funding without liquidating valuable assets. We can customize your line or loan to fit your collateral value, your borrowing comfort, and your anticipated use of the proceeds. At Truist, there’s no cost to put a securities-based line in place—you only pay if you borrow. This gives you convenient access to liquidity for planned or unforeseen expenses without having to interrupt your investment strategy.

Securities-based lending uses your marketable securities—such as stocks, bonds, and mutual funds—as collateral to secure your loan or line of credit. When you apply for a securities-based line or loan, we’ll assess your investment assets to identify eligible collateral. We then assign it an advance amount, which is the maximum amount Truist will lend against the collateral. You can choose to apply for any value up to that max amount.