Portfolio Secured Lending

Create the liquidity you need without divesting your investment portfolio.

The way in which you borrow is a critical factor in maintaining your wealth and achieving important and changing financial objectives. The ability to do this without compromising your portfolio investment strategies enhances your flexibility when managing through uncertain and challenging economic environments.

Let City National help you customize a loan secured by marketable securities and provide you the liquidity you need to satisfy your short-term goals and long-term opportunities without disrupting your overall investment strategy.

A Portfolio Secured Lending program has the following benefits:

  • Non-purpose loans that can be used to fund a primary, vacation or investment property, luxury purchases, business start-ups or expansions, private investments, tax payments, education costs, medical expenses, or any other personal investment or expense.
  • Can be structured as a line of credit or term loan.
  • Avoids the sale of stocks/bonds which might create a taxable event.
  • Available for marketable securities held in accounts at City National Bank or City National Securities1
  • No loan fees or additional account fees related to the pledge of the client’s CNB/CNS account to secure the loan.
  • No prepayment penalties.
  • Allows you to continue to trade and manage investments in your portfolio account, subject to certain restrictions.
  • Your total available credit is based on the combined value of all your eligible assets used as collateral with borrowing potential from $50,000 minimum to $5 million
  • Monthly interest-only payments.

Important Disclosure:

Securities-based lending has special risks and is not suitable for everyone. If the market value of your pledged securities declines below required levels, you will be required to pay down your line of credit, pledge additional eligible securities or City National Bank will require the sale of the amount of securities needed to satisfy pledge requirements. The sale of your pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. City National and its subsidiaries are not tax or legal advisors. All securities and accounts are subject to eligibility requirements. Please read all loan documents and Securities Agreements carefully. This credit product is not to be used for purchasing securities.

Investments Products are:

  • Not FDIC insured
  • Not a deposit or obligation of any bank
  • Not insured by any federal government agency
  • No bank guarantee
  • Subject to investment risks, including possible loss of principal

1Brokerage products and services are provided by City National Securities, Inc. (member FINRA/ SIPC). To apply you must have a City National Bank deposit account.