Private Entities

Asset Acceptance

CNB allows the flexibility of holding a wide variety of products within a single self-directed account. CNB reviews every non-traded investment from an administrative standpoint before accepting for custody. Please call or email to verify if the investment you would like held at CNB has already been accepted for custody. If it has not been reviewed CNB will require:

  • Request for Custody form completed by someone at the investment company
  • A list of officers and principals
  • List and explanation of any pending litigation
  • Offering materials including prospectuses, offering memorandums, operating agreements, subscription agreements, etc.

Private Investments

Our custodial service ensures flexibility through the variety of products allowed within a single self-directed account including, but not limited to, the following public and private investment products:

Business Development Companies (BDCs)

A BDC is an organization that invests in and helps small- and medium-size companies grow in the initial stages of development.

Certificates of Deposit

A Certificate of Deposit is a savings certificate with a fixed maturity date and fixed or variable interest rate. When a CD is redeemed, you will receive the money you originally invested plus and accrued and unpaid interest. A CD restricts access to the funds until the maturity date and a penalty could be charged for early withdrawals.

Interval Funds

An interval fund is a type of closed-end fund with shares that do not trade on the secondary market. Instead the fund periodically offers to repurchase a percentage of outstanding shares at net asset value (NAV).

Limited Liability Companies (LLCs)

A limited liability company is a corporate structure whereby the members of the company are not personally liable for the company's debts or liabilities.

Limited Partnerships (LPs)

A limited partnership exists when two or more partners conduct a business in which one or more of the partners is liable only to the extent of the amount of money that partner has invested. Limited partners do not receive dividends but enjoy direct access to the flow of income and expenses. The main advantage to this structure is the owners are typically not liable for the company's debts.

Private Stock

Private stock represents a piece of ownership in a company that is not traded on the public stock exchange. You can own private stock in many types of companies including banks and bank holding companies. As a private bank ourselves, CNB is known for as expert in the custody of private bank stock. For more information click here.

Private Placements

A private placement is a capital raising event that involves the sale of securities to a relatively small number of select investors. Private Placements are not required to be registered with the Securities and Exchange Commission (SEC).

Promissory Notes and Debentures

Promissory notes are debt instruments that allow companies and individuals to get financing from a source other than a bank. In effect, anyone becomes a lender when he issues a promissory note. A debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to secure capital.

Real Estate Investment Trusts (REITs)

REITs are a form of real estate investment that allow individual investors to invest in commercial real estate portfolios that receive income from a variety of properties, including apartment complexes, shopping malls, data centers, healthcare facilities, hotels, infrastructure, office buildings, retail centers, self-storage, timberland and warehouses.

Other Non-Traded and Alternative Investments

Reg D Funds, Private Equity, Private Debt, Hedge Funds, Oil & Gas Funds, Direct Participation Programs, Mortgage Notes, and Single Member LLCs are all able to be held at CNB. This is not a complete list, if you have an investment you would like to hold within an account at CNB please check with us by completing our Asset Acceptance process above or calling 800-680-0340.

You are urged to seek professional guidance and/or consider proper diversification and risk tolerance before directing any investment activity. Community National Bank (CNB) does not recommend or evaluate the prudence, merit, viability or suitability of any investment and will not be responsible for the performance of any investment product. CNB will provide custodial services with respect to the investments in your account, but we do not provide investment advice or information, nor are we the agent, partner, employee, representative, or affiliate of any financial representative, product sponsor or other individual or entity except as otherwise disclosed. We are not responsible for and are not bound by any representations, warranties, statements, agreements, disclosures, advice or information made by any such person beyond the terms and provisions contained in the CNB Custodial Agreement, Disclosure Statements, or other CNB forms or CNB documents.

Visit www.investor.gov for helpful hints on questions to ask before you invest, how to avoid fraud, and additional information on investment products.