Flexible financing that s ready when you need it

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1 Flexible financing that s ready when you need it

2 Inside 3 You gain flexibility, convenience and control 5 Get the cash you need faster and more easily 7 Buy or invest in the property you want 9 Make the luxury purchase you ve been waiting for 11 Get business financing that s ready when you are See back cover for important information. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and Member SIPC, and other subsidiaries of Bank of America Corporation ( BofA Corp. ). Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of BofA Corp. Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

3 Investing in real estate. Making a luxury purchase. Expanding your business. After working so hard to get where you are, you could be thinking that it s time to do some of the things you ve always wanted to do. If you ve already carefully thought out a plan for your life and put it in place, you might be hesitant to change it. But the fact is, you don t have to be bound by your investment strategy. Or worry that you ll have to sell assets or deplete your cash reserves to strive for additional goals. With a Loan Management Account (LMA account), you can have access to a financing solution that uses your assets as collateral for the cash you need all while keeping your life goals on track. 1

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5 You gain flexibility, convenience and control The LMA account 1 is a flexible line of credit offered by Bank of America, N.A. (the Bank ). This single account can manage multiple loan advances, giving you the borrowing power you need for the things you want now, while keeping your overall goals intact. Gain borrowing power When you open an LMA account, 1 your total available credit is based primarily on the combined value of all the eligible assets in the accounts you use as collateral. Use personal, business or eligible third-party accounts, or a combination. Access available credit through variable-rate and/or one or more fixed-rate advances, or standby letters of credit. Apply only once there s no need to reapply each time you need financing. Get the most from what you own You can use your assets as collateral without having to transfer them into a separate collateral account. Continue to trade and manage investments and access cash in your accounts, subject to certain restrictions, like making sure you have enough eligible collateral available. Remember that market fluctuations and collateral calls may still affect your investment strategy. 3

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7 Get the cash you need faster and more easily Receive financing how and when you want it The LMA account comes with a variety of benefits designed to work with your schedule and the investment strategy you already have in place. Take advantage of features like: Easy and efficient access to cash Competitive interest rates Multiple loan advances managed in a single account A choice of flexible repayment options The ability to use a broad range of assets as collateral Understand the risks associated with an LMA account Remember that securities-based financing involves special risks. 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. 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 your loan documents and applicable laws and regulations. 5

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9 Buy or invest in the property you want If you re looking to invest in or purchase real estate without changing your current investment strategy, an LMA account may be the right solution no matter what kind of real estate you re considering. Fulfill a personal goal The LMA account can make financing your real estate transactions much simpler. You can get ready access to cash, flexible loan financing structures and competitive rates to help you: Invest in a primary or vacation home, co-op, residence club or timeshare Make real estate investments for your children or other family members Finance additions, landscaping and other home renovation projects or emergency repairs Acquire land for construction or investment purposes as an alternative to raw-land financing Fund a broad range of commercial financing structures Support your business real estate needs You re not limited to just personal real estate transactions. The LMA account can help you finance commercial real estate needs, too. Use it to help you: Purchase or lease new facilities Expand or upgrade an existing facility Secure commercial space with a letter of credit rather than a security deposit Cover property tax and insurance payments Real estate can play an important role in what you d like to accomplish for your life. The LMA account can help you take advantage of a wide variety of opportunities. 7

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11 Make the luxury purchase you ve been waiting for Whether it s an executive jet or yacht or collectibles like fine wine, art or antiques an LMA account can provide the borrowing power you re looking for. Whatever you ve had your eye on, the flexibility provided by your account can help to bring your purchase home for you and your family to enjoy. Include the extras Not only can an LMA account help you get the luxury items you want, it can help you enjoy them more fully. With an LMA account, you can: Pay for flying or yacht piloting lessons Finance the costs associated with a yacht or aircraft, such as crew, fuel, berth or hangar fees Purchase complementary vehicles such as a tender or personal watercraft Invest in recreational real estate like ranches, farms, vineyards or equestrian facilities You ve worked hard for the privilege of having more opportunities and choices. And with an LMA account, you can enjoy increased flexibility in financing the things that matter most to you. 9

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13 Get business financing that s ready when you are Balance your personal and business goals When you re running a business, it can be tough to separate your personal and business lives and your personal and business finances. You need funds to help your business grow, but it s also important to keep your assets protected. Whether you re starting something brand-new or expanding on an already successful venture, an LMA account can help with things like: Combining personal and/or business assets to be used as collateral Purchasing inventory Paying down balances Buying a franchise Financing new equipment Start or build a business The LMA account can be used to meet many other business financing needs, including: Business acquisitions Startups Construction Letters of credit Emergency funds Tax payments Investment property purchases Commercial real estate purchases The LMA account can also be a strategic tool to manage your overall financial operations: Make the most of cash management, credit and lending strategies Access investment management expertise Help your employees with retirement and benefits plans Develop a business succession plan to preserve your business s value Minimize potential estate taxes with a wealth transfer and succession plan 11

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15 Learn more Ask your Merrill Lynch financial advisor whether an LMA account may be right for you.

16 Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult with your legal and/or tax advisors before making any financial decisions. Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets. 1 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 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. For fixed rate and term advances, principal payments made prior to the due date will be subject to a breakage fee Bank of America Corporation. All rights reserved. ARTXYKH8 BRO PM /2018 Made with 10% post-consumer waste (PCW) recycled paper. Leaf icon is a registered trademark of Bank of America Corporation.