Securities Lending - HilltopSecurities

Wealth Management

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Fully Paid Lending Program

Earn Income While Maintaining Full Ownership

The HilltopSecurities Fully Paid Lending Program provides you an opportunity to earn extra income by lending certain securities you already own within your portfolio. We do all the work for you. There are no fees associated with the program. Learn more below.

How the HilltopSecurities Fully Paid
Lending Program Works

Enrollment

Once enrolled, HilltopSecurities may borrow securities from your existing portfolio.

Commitment

There are no long-term commitments, and participants can unenroll from the program anytime without penalty.

Lending

Hilltop may borrow certain eligible 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 will pay you income on borrowed securities each day your shares are on loan.

View Income and Loan Activity Online

Monitor Loan Activity and Income daily via MOmentum Client or MOmentum Mobile.

Example of How Payment Works

Number of Shares on Loan

4,000

Market Price

$ 15.00

Market Value

$60,000.00

Annualized Lending Rate ^**

9.25%

Daily Accrual Rate

$15.42

(60,000 * 9.25% / 360 Days)

Your Monthly Income in this Hypothetical Scenario

$462.50

($15.42*30 Days)

**Demand and pay rates vary by security and over time. HilltopSecurities may terminate a loan at any time. Shares loaned out are not protected by SIPC. However, HilltopSecurities maintains cash as collateral, which will amount to at least 100% of the loan. In the unlikely event of HilltopSecurities filing for bankruptcy, you can draw on this collateral, which may be the only source of resolution. Each security will have its own lending rate based on demand.Not all securities will be eligible to loan. The annualized lending interest rate is a portion of the total interest earned on the loaned shares. HilltopSecurities shares income 50/50. Shares on loan often support short selling strategies. Currently, only cash and margin IRA accounts are eligible to enroll in the program.

Important Considerations Before You Enroll

VOTING RIGHTS

While you participate, you forego voting rights on positions borrowed from your account.

DIVIDEND PAYMENTS

Dividend payments may be issued in cash. Please consult your tax consultant for clarity.

SIPC

While your shares are on loan, they are not covered under Securities Investor Protection Corporation (SIPC). As such, HilltopSecurities deposits collateral at a minimum of 100% of the loan value. In any securities lending transaction, counterparty default is a risk.

FAQs

Click here for frequently asked questions.

The information herein is intended to provide an overview of the FPL Program. Individuals seeking to enroll in the FPL Program must carefully review all documents provided at enrollment including, but not limited to, the Master Securities Lending Agreement and the Risk Disclosures Statement for the Fully Paid Lending Program, which contain important additional information and disclosures regarding the FPL Program. Hilltop Securities Inc. does not give tax or legal advice.

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