Financing today's needs, pursuing tomorrow's goals

* UBS Bank, UBS FSI, their employees and affiliates do not provide legal or tax advice, and any information provided should not be construed as such. Clients should contact their personal tax and/or legal advisors regarding their particular situations, including the legal and tax implications of borrowing using securities as collateral for a loan.

About UBS Bank
“UBS Bank” is UBS Bank USA, N.A. Member FDIC, NMLS no. 947868. UBS Bank is a subsidiary of UBS Group AG.

Credit Lines are securities-backed loans provided by UBS Bank, an affiliate of UBS Financial Services Inc. (UBS FSI). Credit Lines are full recourse demand loans, are subject to credit approval and are ”margin loans” subject to collateral maintenance requirements (i.e., margin requirements). The lender can (i) demand repayment and/or (ii) change collateral maintenance requirements (i.e., margin requirements) at any time without notice. If the required collateral value is not maintained, the lender can require you to post additional collateral (commonly referred to as a ”margin call”), repay part or all of your loan and/or sell your securities. Failure to promptly meet a margin call or repayment or other circumstances (e.g., a rapidly declining market) could cause the lender to liquidate some or all of the collateral supporting the Credit Lines to repay all or a portion of the outstanding Credit Line or margin obligations. Any required liquidations may result in adverse tax consequences. You are personally responsible for repaying the Credit Line in full, regardless of the value of the collateral. Securities-backed financing involves special risks, is not suitable for everyone and may not be appropriate for your needs. For a full discussion of the risks associated with borrowing using securities as collateral, you should review the Loan Disclosure Statement that will be included in your application package. Credit approval of any loan application is subject to the creditworthiness of the applicant. UBS Bank will conduct a comprehensive evaluation, which may include, but is not limited to, an assessment of the applicant’s financial condition, payment history, credit scores, credit reports, and the adequacy of any collateral offered. Additional terms, conditions, restrictions, and limitations may apply.

Credit Lines are either non-purpose or purpose loans. Non-purpose loans may not be used directly or indirectly to purchase, trade or carry securities or to repay debt used to purchase, trade or carry securities and may be used for other liquidity needs such as personal expenses, real estate transactions or other needs. Purpose loans may be used to purchase, trade or carry securities or may be used for other liquidity needs such as personal expenses, real estate transactions or other needs. Please review your loan agreement to make sure you understand which type of loan you have and that you ensure you are in compliance with its terms. Credit Lines may not be used to repay debt to any affiliate of UBS Bank. Additional limitations and availability may vary by state. Prepayments of UBS Fixed Credit Lines will be subject to an administrative fee and may result in a prepayment fee.

UBS FSI and its Financial Advisors have a financial incentive to recommend the use of securities-backed loans (SBLs), rather than the sale of securities to meet cash or other liquidity needs. Our Financial Advisors receive compensation based on the outstanding balance on a non-purpose SBL and the applicable interest rate spread for the SBL. Financial Advisors do receive credit for the amounts of the purpose loan drawn for purposes of bonuses, awards and club status. In addition, UBS FSI receives servicing fees from certain lending affiliates based on the amount of outstanding loan balances to compensate us for referring clients and for administrative and operational support relating to the loans. The interest you pay for the loan is separate from and in addition to other fees you may pay related to the investments used to secure the loan, such as ongoing investment advisory fees (wrap fees) and fees for investments such as mutual funds and ETFs, for which UBS FSI and/or our affiliates receive administrative or management fees or other compensation. As such, UBS FSI and its Financial Advisors benefit if you draw down on your loan to meet liquidity needs rather than sell securities or other investments, which would reduce our compensation. When assets are liquidated pursuant to a house call or demand for repayment, UBS FSI and your Financial Advisor also will benefit if assets that do not have ongoing fees (such as securities in brokerage accounts), are liquidated prior to or instead of assets that provide additional fees or revenues to us (such as assets in an investment advisory account). Further, different types of securities have higher release rates than others, which can create a financial incentive for your Financial Advisor to recommend products or manage the account in order to maximize the amount of the loan. UBS FSI and its Financial Advisors and employees offer banking and lending products to clients through our affiliates and third-party banks in our capacity as a broker-dealer and not as an investment adviser.