Ok just got off the phone with TD. Unfortunately I will have to call back on Monday to speak with the margin Dept. However he did read to me what happens with a stock that pays a dividend and is shorted. So if I own 1000 shares of GNBT, and TD loans them to entity B to short. B sells them to entity C (buyer). Upon the payable date (in our case the ex date since it is a special div), C gets the dividend directly from the company (or due bill process, which were MY dividends). Then B (short seller) has to pay me the dividend due. What that means is if they can’t buy NGIO yet in open market, how can they do that? However the agent told me he would be very surprised if TD would loan out my shares of a penny stock since they don’t allow shorting of penny stocks. I won’t know for sure until I talk with margin Dept on Monday.

Also I asked about the Loan Exempt Restriction and he has never heard of that. He searched and could not come up with any documentation on limiting access to shorting my stock. Since that is handled by the margin Dept, I would need to discuss that with them too on Monday.

I will update you Monday morning.