..1) Borrower requests a TS (term sheet) also known as a 'loan commitment' or 'loan approval' for a stock loan by providing:
......(a) stock company name, symbol/#,
(c) loan amount (or quantity of shares available for collateral),
(d) broker account statement confirming shares, and
(e) shareholder name and address for term sheet
2) If Lender determines that the loan is viable, Lender provides borrower with a TS for review by borrower. TS details: maximum loan amount allowed, loan-to-value (LTV), interest rate, loan term, and payment details.
3) If TS is acceptable to Borrower, borrower returns:
(a) signed TS,
(b) if shareholder is an individual, passport of the shareholder,
OR if shareholder is an entity, passport of the CEO, etc, and the certification of
8) Shares to secure the loan either:
(a) remain in client's current broker dealer account,
(b) lender directs borrower to open an account with another broker dealer and
shares are transferred (usually electronically) to the new account, or
(c) in some countries, due to strict capital controls by client's government, share ownership needs to convey to lender during the term of the loan.