Ubs Credit Line Agreement

UBS-FS and its financial advisors have a financial incentive to recommend the use of securities backed by securities (SBLs) instead of selling securities to meet cash or other needs. Our financial advisors receive compensation based on the outstanding balance of an unaffected SBL and the applicable interest rate for the SBL. Financial advisors receive a credit for the amounts of the assignment loan that is drawn for bonuses, rewards and club status. In addition, UBS-FS receives a service fee from certain lending companies based on the amount of outstanding credit balances to compensate us for client intermediation and for administrative and operational assistance related to loans. The interest you pay on the loan is separate and in addition to other fees you may pay in connection with the investments used to secure the loan, such as.B. current investment advisory fees (Wrap) and investment fees such as investment funds and ETFs, for which UBS-FS and/or our related companies receive administrative or administrative fees or other compensation. Therefore, if you use your loan to meet liquidity needs, instead of selling securities or other investments, it would reduce our remuneration. If assets are liquidated on the basis of a house call or a redemption claim, UBS-FS and your financial advisor also benefit when assets that do not have current costs (e.g.B securities on brokerage accounts) before or in place of assets that offer us additional fees or income (e.g.B. Assets in an investment advisory account) are liquidated.

In addition, different types of securities have higher release rates than others, which can financially incentivize your financial advisor to recommend products or manage the account to maximize the loan amount. UBS-FS and its financial advisors and associates offer their clients banking and credit products through our affiliates and third-party banks, in our capacity as brokers and not as investment advisors. UBS Bank USA, UBS-FS, its employees and affiliates do not offer legal or tax advice. You should speak to your personal and/or legal tax advisors regarding their particular situation, including the legal and tax implications of a loan with securities as collateral for a loan. Find out how attractive line of credit rates can help you pursue your goals for today and tomorrow. 1 Reduced interest rates are available for new 3-year and 5-year fixed-rate reduced-rate loan agreements entered into from October 19 to December 18, 2020 with a new line of credit advance of USD 25,000 or more, subject to available credit. The interest rate and the annual effective rate are the same for california residents. New qualifying advances must be made between October 19 and December 18, 2020. For clients with an existing credit on a UBS Premier Credit Line, a new advance is defined as any incremental balance greater than the final balance on 12 October 2020. Each balance paid after 19 October 2020 reduces the eligible amount of new advances that can be blocked under the action rates. New advances may not be used to repay existing variable rate or fixed income balances or to repay debts of UBS Bank USA subsidiaries.

Prices may vary during the action period, but do not affect customers who have blocked promotional prices. UBS reserves the right to withdraw or modify this offer at any time without notice. Reduced interest rates cannot apply to special credit program contracts (e.g. .B. unsecured loans, Premier Hedge Fund Lending, Private Equity Lending, Pre-IPO Lending, 2020 Loan Transfers Financial Recruits Advisor and Employee Stock Ownership Plan (ESOP) Lending) under this offer. This is not binding on any UBS company and does not constitute a lending obligation. You will find all the terms of your line of credit agreement in your line of credit agreement. Credit lines are loans guaranteed by UBS Bank USA, a subsidiary of UBS Financial Services Inc. (UBS-FS).

Lines of credit are full-rate on-demand loans, are subject to credit authorization, and are “margin loans” subject to collateral maintenance requirements (i.e. margin requirements). . . .