Fully Paid Lending Program
Earn Income While Maintaining Full Ownership of Your Long Equity Positions
How the Fully Paid Lending Program Works
Eligibility:
The Fully Paid Lending program is available to Cash accounts, IRA accounts, and Margin accounts. You must have a minimum of $50,000 in total account value to apply. Securities must be fully paid-for to be eligible for lending under the Fully Paid Lending Program. Positions eligible for lending are securities that are fully paid-for and excess-margin securities*.
Enrollment:
Please complete and submit the Fully Paid Lending Application and Agreement to our Customer Support team to begin. Once the application and agreement have been reviewed and approved, you are enrolled in the program. Moving forward, your cash account equity positions are eligible to be lent.
Commitment:
There are no long-term commitments. Your participation can be terminated at any time upon your written request.
Lending:
Hilltop Securities, our clearing firm, may borrow certain eligible equity securities from you based on demand in the securities lending market. You maintain full ownership and can sell your loaned shares at any time.
Earn Income on Your Loaned Shares:
Hilltop Securities, our clearing firm, will pay you income on borrowed securities each day your shares are on loan. Payments will reflect on a monthly basis.
View Income and Activity Online:
Accrued payments will be credited to your account on a monthly basis. This will be reflected in your Account History.
FAQ:
Click Here to review our Frequently Asked Questions regarding the Fully Paid Lending Program.
Important Considerations Before You Enroll
Voting Rights:
While you participate, and your shares are loaned out, you forgoe all voting rights on positions borrowed from your account.
Dividend Payments:
Dividend payments will be made as cash in-lieu for shares that are lent. Hilltop Securities, our clearing firm, will make efforts to not lend shares pending a dividend payment, but this is not guaranteed. Tax treatment of payments made as cash in lieu versus dividend may have tax consequences. Please consult your tax advisor for clarity.
SIPC:
While your shares are on loan, they are not covered under Securities Investor Protection Corporation (SIPC). As a result, Hilltop Securities, our clearing firm, deposits collateral at a minimum of 100% of the loan value. In any securities transaction, counterparty default is a risk.