Our Premier Fixed Credit Line gives you the ability to lock in competitive interest rates for up to five years. A pledge of one or more of your eligible non-retirement, non-custodial accounts is required to make the borrowing power of your investment portfolios available.
How Premier Fixed Credit Line Works
Interest rates can be locked in for up to five years using the UBS Bank USA Fixed Funding Rate as the reference rate. Interest is charged to your loan account and is payable to UBS Bank USA on the last day of each three-month period following the date of the fixed-rate loan. Because the loans are secured by investments in your investment portfolio, interest charges will generally be lower than unsecured forms of borrowing.
If the required collateral value is not maintained, UBS Bank USA can require you to post additional collateral, repay part or all of your loan, and/or sell your securities. Failure to promptly meet a request for additional collateral or repayment or other circumstances (e.g., a rapidly declining market) could cause UBS Bank USA to liquidate some or all of the collateral supporting the Premier Fixed Credit Line. Any required liquidations may interrupt your long-term investment strategies and may result in adverse tax consequences.
Neither UBS Bank USA nor UBS Financial Services Inc. provides legal or tax advice. You should consult your legal and tax advisors regarding the legal and tax implications of borrowing using securities as collateral for a loan. For a full discussion of the risks associated with borrowing using securities as collateral, please review the Loan Disclosure Statement that will be included in your application package.