The Loan Management Account® (LMA® account) is a flexible line of credit that can be used for almost any purpose. Whether you're looking to help a family member, remodel your kitchen, pay taxes or cover education costs, an LMA account can help. With an LMA account, you can generate cash, consolidate any other outstanding loans if desired and gain a clearer picture of your balance sheet.
How to use an LMA account
You can use the LMA account as a convenient way to pursue a variety of personal and business financing needs, including:
Borrowing made simple
An LMA account is a secured line of credit that uses your existing 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. You can access funds, 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.
Talk to your Merrill Lynch financial advisor to discuss whether an LMA account might be appropriate for you.
LMA Fact Sheet
White Paper: Managing Your Personal Liabilities: A Goals-Based Approach
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.
The Loan Management Account (LMA account) is a demand line of credit provided by Bank of America, N.A., Member FDIC. Equal Opportunity Lender. The LMA account requires a brokerage account at Merrill Lynch, Pierce, Fenner & Smith Incorporated and sufficient eligible collateral to support a minimum credit facility size of $100,000. All securities are subject to credit approval and Bank of America, N.A. may change its collateral maintenance requirements at any time. Securities-based financing involves special risks and is not for everyone. When considering a securities-based loan, consideration should be given to individual requirements, portfolio composition and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. The securities or other assets in any collateral account may be sold to meet a collateral call without notice to the client, the client is not entitled to an extension of time on the collateral call and the client is not entitled to choose which securities or other assets will be sold. The client can lose more funds than deposited in such collateral account. The LMA account is uncommitted and Bank of America, N.A. may demand full repayment at any time. A complete description of the loan terms can be found within the LMA account agreement. Clients should consult their own independent tax and legal advisors. Some restrictions may apply to purpose loans and not all managed accounts are eligible as collateral. All applications for LMA accounts are subject to approval by Bank of America, N.A.
Equal Housing Lender
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