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Schwab margin accounts and (re)hypothetication

After chatting with the Schwab staff, I got clarification on their (re)hypothecation policies for margin accounts.

1)  They only lend out assets from your account if you have a margin balance, i.e. you owe Schwab money.

2) The only lend the assets internally, e.g. to other traders for shorts, not to cover external debts.

Hope this helps!