**Fully Paid Securities Lending** (FPSL) is a practice in which DriveWealth can lend customers’ securities to other financial institutions. This generates interest revenue which is typically shared with the customer and the partner firm.
Securities lending activities increase risks for customers including loss of SIPC protection. Consider these risks before enabling access to this feature.
Only customers holding a Cash or LPMA Account are eligible to participate in FPSL. Review [Enabling leverage](🔗) to learn more about the account types.
Each customer must individually opt in to FPSL, either at account opening, or later. This can be done by first adding a unique digital document to their User, indicating their acceptance of terms:
Then, an Account can be opted in. Each Account for a User can individually choose to participate or not:
An Account can be opted-out at any time by reversing the above field.
## Receiving loan interest
DriveWealth automatically monitors opted-in Accounts and their Positions. When possible, the assets will be loaned to other financial institutions, based on demand and interest rates. The customer can always sell their assets, even if they are on loan.
A unique type of Transaction will be posted to an Account each month for the interest it received. There may be months where no interest is generated, and no Transaction will be created.
## Other effects during a loan
Although a customer won’t see in real-time what positions are on loan, they will receive an additional page in their [Month-end Statements](🔗) Month-end Statement with details like:
The date in which the positions were out on loan
How much of their positions were on loan
The accrued rebate for that date
The collateral associated with that position
Additionally, while positions are loaned, customers do not receive dividends directly from the issuer. Instead, the borrowing party receives those dividends, then repays them. In effect, this means a customer with positions on loan receives a **Manufactured Dividend**, which looks very similar to a regular dividend when posted as a Transaction:
The primary difference between a Manufactured Dividend and a regular dividend is a change in tax treatment in some regions.