Non-Recourse

Collateralized Stock Loans

Secure Debt

Jakob Fugger developed its collateralized non-recourse stock loan offerings in recognition of the fact that publicly-traded securities are assets that have an inherent value that can be used to secure debt and provide immediate cash liquidity. Investors who have large quantities of publicly-traded stock can pledge that stock for a loan equal to up to 65% of the then-current value of that stock. We offer stock loans with terms of between two and five years. While the loan is outstanding, the investor makes interest-only payments, with the principal balance of the loan repayable at the end of the loan term.

Secure Relationships

We have established secure relationships with leading securities firms that provide custodian services and manage the stock collateral during the loan term. We impose no use-of-funds restrictions and investors can use their cash liquidity for any legitimate business or personal purpose. When the investor repays the loan principal, Jakob Fugger directs the custodian to transfer the stock collateral via electronic means into an account designated by the investor.

Maximum Flexibility

We designed this program with maximum flexibility and without the limitations that might be imposed on stock used for margin loans or securities that an investor acquired through initial public offerings. Our underwriters review the stock that an investor proposes to use as loan collateral with a proprietary methodology that focuses primarily on trading volume and price stability.

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If the issuer has placed restrictions on the investor’s stock, the investor must first have those restrictions removed before the stock can be used as collateral for a loan. Under certain very limited circumstances, our underwriters may be able to establish a value for restricted stock, in which event Jakob Fugger will consider originating a loan against that stock. In most situations, however, the value of restricted stock is too indeterminate for that stock to be used as loan collateral.

The nonrecourse aspect of our stock loan program is the foundation of its flexibility and appeal. If the value of the stock declines during the loan term., an investor can elect not to repay the principal balance. In that event, Jakob Fugger takes full legal and equitable title to the stock and the investor retains the principal. Because the loan is nonrecourse, the investor has no further liability for any difference between the stock value and the loan principal.*

* Jakob Fugger makes no representations regarding the tax or other consequences that may result if an investor elects not to repay the loan principal. Investors are encouraged to consult with their tax and accounting advisors for answers to questions regarding the tax effects of a stock loan transaction.

Jakob Fugger is a _________________ company. We are providing this and other information on a broad range of investment topics on this page for the benefit and edification of our actual and prospective clients. This information is not intended to be and should not be treated as legal, investment, accounting, or tax advice and is for informational purposes only. Individuals who access this Website should under no circumstances rely upon this information as a substitute for their own due diligence or for obtaining specific legal, accounting, or tax advice from their own professional advisors.

Nothing contained in or published on this Website is intended to be and individuals who access this Website should not construe anything herein as an offer, solicitation, or recommendation with respect to any investment transaction, product, or strategy. Past performance is no guarantee of future results. All material has been obtained from sources believed to be reliable, but its accuracy, completeness, and interpretation cannot be guaranteed.

Jakob Fugger operates strictly in accordance with the Securities Laws, Rules, and Regulations of the jurisdictions in which we conduct our business and operations. We do not offer all of the products and services referred to herein to all Users of this Website or in all jurisdictions from which a User may access this Website. We do not maintain licenses to provide specific financial products or services and we have elected not to pursue any licensing that would interfere with or unduly restrict our primary business of originating, funding, and administering private loans to accredited investors that have the knowledge, experience, and resources to understand the benefits and risks of those loans. Certain of the products and services referred to on this and other pages may be offered through our affiliated or independent contract third-party service providers. If and to the extent that we refer to or link to third parties that offer products or services that require licensing, the user who accesses such third-party links has the sole responsibility to verify the validity of those licenses and the third party’s authority to offer products and services thereunder.
4300 N 1st St, San Jose
95134, California
United States