Your portfolio has more power than you think

When home improvements, tax bills, or an unexpected opportunity come your way, you can be prepared with a financing solution that’s both flexible and convenient.

Borrowing against your eligible account assets at Wells Fargo Advisors with a Wells Fargo Bank Priority Credit Line, offered by Wells Fargo Bank, N.A., in partnership with Wells Fargo Advisors, could be a smart alternative to other types of financing. It may help you avoid an untimely securities sale and defer any resulting capital gains taxes.¹ Plus, you can help keep your long-term strategy on track.

A Wells Fargo Bank Priority Credit Line is a smart, strategic way to access funds compared to other borrowing solutions.

• No application or annual fees to maintain the credit line.
• No monthly loan balance payment is required. Repay interest at your convenience by adding it to your outstanding variable-rate balance.
• Fixed-rate advances are available for one-month to 5-year terms.²
• Easy access to funds through online banking, ACH transfers, Fed Funds wire or checks.
• Competitive variable and fixed interest rates based on your Wells Fargo Advisors household assets under management (AUM).

• It’s flexible
• It may help you stay on track — allowing you to remain invested while gaining access to liquidity
• It’s easy to get started

Important considerations

Carefully consider whether securities-based borrowing is right for you. Securities-based borrowing has special risks and is not appropriate for all investors. If the market value of pledged securities declines below required levels, you may be required to pay down your line of credit or pledge additional eligible securities in order to maintain it; otherwise Wells Fargo may require the sale of some or all of the pledged securities. The sale of pledged securities may also cause adverse tax consequences.¹

Your year-end planning discussion with your financial advisor is a great opportunity to determine if a Wells Fargo Bank Priority Credit Line is right for you.

¹ Wells Fargo Advisors and its affiliates are not tax or legal advisors.

² Fixed Rate Advances may be subject to a prepayment penalty. For details, refer to the Wells Fargo Bank Priority Credit Line Agreement and Account Terms and Conditions delivered with your loan documents, or ask your financial advisor for a copy of the Agreement.

³ The credit line may not be used for purchasing or carrying margin stock or paying down a margin account debit.

⁴ Certain restrictions apply to entity borrowers including sole proprietorships and irrevocable trust borrowers. For details, refer to the Wells Fargo Bank Priority Credit Line Agreement and Account Terms and Conditions delivered with your loan documents, or ask your financial advisor for a copy of the Agreement.

Securities-based lending has special risks and is not appropriate for everyone. If the market value of a client’s pledged securities declines below required levels, the client may be required to pay down the line of credit or pledge additional eligible securities in order to maintain it, or the lender may require the sale of some or all of the client’s securities. Wells Fargo Advisors, on behalf of Wells Fargo Bank, N.A., will attempt to notify clients of maintenance calls but is not required to do so. Clients are not entitled to choose which securities in their accounts are sold. The sale of their securities may cause clients to suffer adverse tax consequences. Clients should discuss the tax implications of pledging securities as collateral with their tax advisors. An increase in interest rates will affect the overall cost of borrowing. All securities and accounts are subject to eligibility requirements. Clients should read all lines of credit documents carefully. The proceeds from the Wells Fargo Bank Priority Credit Line may not be used to purchase or carry margin stock or pay down a margin account debit. Margin stock includes any equity security registered on a national securities exchange, any over-the-counter (OTC) security trading; any debt security convertible into a margin stock; and most mutual funds. Securities held in a retirement account cannot be used as collateral to obtain a securities-based loan. Securities in a Wells Fargo Bank Priority Credit Line collateral account must meet collateral eligibility requirements.

There are conflicts of interest when Wells Fargo Advisors recommends that you use a loan secured by your Wells Fargo Advisors account assets as collateral. Wells Fargo Advisors and its financial advisors have a financial incentive to recommend the use of securities-based lending products rather than selling securities to meet client liquidity needs. Financial advisors will receive compensation on the outstanding loan balance in your Wells Fargo Bank Priority Credit Line account. In addition, your financial advisor’s compensation will be reduced if your interest rate is discounted below a certain level. This creates an incentive for financial advisors to recommend Wells Fargo Priority Credit Lines and other securities-based lending products, such as Margin, as well as an incentive to encourage you to maintain a larger loan balance and to discourage interest rate discounts below a certain level. The interest you pay for the loan is separate from, and in addition to, other fees you may pay related to the investments used to secure the loan; such as ongoing investment advisory fees (wrap fees) and fees for investments such as mutual funds and exchange traded funds for which Wells Fargo Advisors and/or our affiliates receive administrative or management fees or other compensation. Specifically, Wells Fargo benefits if you draw down on your loan to meet liquidity needs rather than sell securities or other investments, which would reduce our compensation. When assets are liquidated pursuant to a maintenance call or demands for repayment, Wells Fargo Advisors and your financial advisor also will benefit if assets that do not have ongoing fees (such as securities in brokerage accounts) are liquidated prior to, or instead of, assets that provide additional fees or revenues to us (such as assets in an investment advisory account). Further, different types of securities have higher release rates than others, which can create a financial incentive for your financial advisor to recommend products, or manage the account, in order to maximize the amount of the loan.

Wells Fargo Bank, N.A. has a lien on the account assets that are used as collateral for Wells Fargo Bank Priority Credit Line accounts. We will act to protect ourselves as the lender in connection with the loan and this may be contrary to your interests and/or investment objectives. This lien also creates a conflict of interest with respect to the recommendations your financial advisor makes to you. For example, your financial advisor may recommend that you allocate your investments to your account with a lien rather than to another account without such a lien. Also, your financial advisor may recommend an investment solely to minimize the risk of loss with respect to the collateral.

Wells Fargo Bank Priority Credit Lines are offered by Wells Fargo Bank. N.A. as the lender, in partnership with Wells Fargo Clearing Services, LLC as agent, servicer and intermediary holding the collateral accounts. Wells Fargo Bank, N.A. (Member FDIC) is a banking affiliate of Wells Fargo & Company. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a separate registered broker-dealer and non-bank affiliate of Wells Fargo & Company. Wells Fargo Advisors is not an FDIC-insured depository institution; FDIC deposit insurance only protects against the failure of an insured depository institution. Banking products and services provided by Wells Fargo Bank, N.A. Member FDIC.