Loan Management Account® (LMA® account), a secured line of credit

Are you looking for a flexible, convenient way to manage cash flow?

The Loan Management Account® (LMA^® account) offered through Bank of America is a flexible line of credit that can be used for almost any purpose.  You can use a LMA account as a cost-effective way to meet a variety of short- and long-term personal and/or business financing needs

A borrowing strategy

An LMA account is a secured line of credit that uses your eligible securities, such as stocks and bonds, as collateral. There are no fees to establish, no minimum balance nor annual fee, so you can access funds as you need to, generally within one day of approval. You can access your credit in the form of both fixed rate and variable rate loans. Your financial advisor can help you choose the loan terms that work best for your individual situation.

Risks of LMA borrowing

Securities-based financing involves special risks. You should review the LMA Loan Agreement and related documents and disclosures carefully and consult with your own independent tax and legal advisors.

• A decline in the value of your collateral assets may require you to provide additional funds or securities to avoid a collateral maintenance call. You can lose more funds than are held in the collateral account. The LMA account is a full-recourse loan and you will be liable for any deficiency.
• Bank of America, N.A. ("the Bank") can force the sale or other liquidation of any securities or other investment property in the collateral account and, unless otherwise required by law, can do so without first contacting you.
• You are not entitled to choose which securities in the collateral account are liquidated or sold.
• The Bank can change its collateral maintenance requirement at any time without notice to you.
• You are not entitled to an extension of time to satisfy the Bank’s collateral maintenance requirement.
• There may be adverse tax or other consequences to you if securities are sold or otherwise liquidated by the Bank.
• The LMA account is an uncommitted facility, although loans to individuals and trusts may be committed in an amount not to exceed $100,000. The Bank may demand full or partial repayment at any time and any commitment may be immediately terminated.
• For fixed-rate advances and term loans, principal payments made in advance of the end of the applicable fixed-rate period, whether voluntarily or involuntarily, (due to demand or liquidation by the Bank,) may be subject to a substantial breakage fee as determined by the Bank.
• Some restrictions on the use of LMA account proceeds may apply under the terms of the loan documents and applicable laws and regulations.