January 2012Please read this important information carefully.
Schwab One® Account Agreement
Information about your:
• SchwabOne®Account
•SchwabStockBuilderPlan®
•SchwabOneInternational®Account
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Contents
Schwab One® Account Agreement . . . . . . . . . . . . . . 5
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Schwab One® Services . . . . . . . . . . . . . . . . . . . . . . 10
1 .MinimumRequirementstoOpenanAccount . . .10
2 .IncomeonFreeCreditBalance . . . . . . . . . . . . .10
3 .FloatDisclosure . . . . . . . . . . . . . . . . . . . . . . . .17
4 .AuthorizationLimit . . . . . . . . . . . . . . . . . . . . . .18
5 .ServicesandFees . . . . . . . . . . . . . . . . . . . . . . .19
6 .ReturnedItems . . . . . . . . . . . . . . . . . . . . . . . . .22
7 .WhenCheckDepositsAreAvailableforWithdrawalorTransfer . . . . . . . . . . . . . . . . . . . .22
8 .UnauthorizedWireTransfers,MissingChecks,UnauthorizedSignaturesandAlterations . . . . . .23
9 .Visa®Card,CashWithdrawalsandCheckTransactions . . . . . . . . . . . . . . . . . . . . . . . . . . .23
10 .PresentingSchwabOne®Checks . . . . . . . . . . . .24
11 .OurLiabilityforFailuretoCompleteTransactions . . . . . . . . . . . . . . . . . . . . . . . . . . .24
12 .PaymentofCashTransactions . . . . . . . . . . . . . .25
13 .TransferringFundsBetweenSchwabAccounts . . .25
14 .AuthorizationtoChargeBrokerageAccounts . . .25
15 .StopPaymentOrders . . . . . . . . . . . . . . . . . . . .26
16 .YourRighttoStopPaymentofPreauthorizedTransfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
17 .Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
18 .CheckCopies . . . . . . . . . . . . . . . . . . . . . . . . . .29
19 .UnclaimedProperty . . . . . . . . . . . . . . . . . . . . . .29
20 .NatureofObligations . . . . . . . . . . . . . . . . . . . . .29
21 .ErrorsorQuestionsAboutCheckingTransactions . .29
22 .BusinessDays . . . . . . . . . . . . . . . . . . . . . . . . 30
23 .ConsumerElectronicCheckRepresentment . . . 30
24 .ErrorsorQuestionsAboutYourElectronicFundTransactions . . . . . . . . . . . . . . . . . . . . . . .32
25 .UseofCheckImagesandSubstituteChecks . . 33
26 .ChangestoTheseRightsandResponsibilities . . 34
27 .RefusaltoHonorChecks . . . . . . . . . . . . . . . . . 34
28 .WireTransfersandAutomatedClearingHouse(ACH)Transfers . . . . . . . . . . . . . . . . . . 34
29 .ReceiptofDepositsandTransfers . . . . . . . . . . .37
30 .MultipleSigners . . . . . . . . . . . . . . . . . . . . . . . .37
31 .CheckLegends . . . . . . . . . . . . . . . . . . . . . . . . .37
32 .DemandDrafts . . . . . . . . . . . . . . . . . . . . . . . . 38
33 .Stale-DatedChecks . . . . . . . . . . . . . . . . . . . . 38
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34 .PostdatingOrders . . . . . . . . . . . . . . . . . . . . . . 38
35 .CheckProcessingOrder . . . . . . . . . . . . . . . . . 38
36 .FacsimileSignatures . . . . . . . . . . . . . . . . . . . . 38
Brokerage Services . . . . . . . . . . . . . . . . . . . . . . . . 39
1 .ProvisionofServices . . . . . . . . . . . . . . . . . . . . .39
2 .DisclosureofCreditTermsandPolicies . . . . . . .39
3 .CommissionsandFees . . . . . . . . . . . . . . . . . . .39
4 .RulesandRegulations . . . . . . . . . . . . . . . . . . . 40
5 .UseofAccount . . . . . . . . . . . . . . . . . . . . . . . . 40
6 .Payment,EquityDeposit,SettlementandLiquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
7 .PaymentofIndebtedness . . . . . . . . . . . . . . . . .42
8 .SecurityforIndebtedness . . . . . . . . . . . . . . . . .42
9 .ShortSales . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
10 .InterestonDebitBalances . . . . . . . . . . . . . . . 43
11 .PledgeofSecuritiesandOtherProperty . . . . . . 43
12 .LoanConsent . . . . . . . . . . . . . . . . . . . . . . . . . 44
13 .Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
14 .Remittance . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
15 .YourResponsibilityConcerningtheSaleofControlorRestrictedSecurities . . . . . . . . . . 45
16 .YourResponsibilityforUnderstandingTermsofSecurities . . . . . . . . . . . . . . . . . . . . . 46
17 .AccuracyofAccountInformation . . . . . . . . . . . .47
18 .CustodialAccounts . . . . . . . . . . . . . . . . . . . . . 48
19 .JointorMultiplePartyAccounts . . . . . . . . . . . . 48
20 .AccountConversion . . . . . . . . . . . . . . . . . . . . . .49
21 .Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
22 .ApprovalofApplication,CreditVerificationandAccountInformation . . . . . . . . . . . . . . . . . 50
23 .GoverningLaw . . . . . . . . . . . . . . . . . . . . . . . . 50
24 .Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
25 .Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
26 .LossesDuetoExtraordinaryEvents . . . . . . . . . 55
27 .PhoneChannelAccess . . . . . . . . . . . . . . . . . . 55
28 .ProvisionofMarketData . . . . . . . . . . . . . . . . . 55
29 .Non-PubliclyTradedSecuritiesandWorthlessorNon-TransferableSecurities . . . . . . . . . . . . . 56
30 .OrderEntryServices . . . . . . . . . . . . . . . . . . . . 60
31 .InvestmentAdvice . . . . . . . . . . . . . . . . . . . . . . .61
32 .MarketandLimitOrders . . . . . . . . . . . . . . . . . 63
33 .NoRecommendationofDayTrading . . . . . . . . . 64
34 .Good-till-CanceledOrders . . . . . . . . . . . . . . . . 64
35 .PrivacyPolicy,After-HoursTradingandOtherTermsandDisclosures . . . . . . . . . . . . . . 64
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36 .OrderRouting . . . . . . . . . . . . . . . . . . . . . . . . . .67
37 .OrderChangeorCancellationRequests . . . . . . 68
38 .MutualFundFees,Orders,DistributionsandRedemptions . . . . . . . . . . . . . . . . . . . . . . .69
39 .Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
40 .TradeReports,Confirmations,StatementsandOtherAccount-RelatedCommunications . . . .72
41 .ConsenttoElectronicDeliveryofRecordsandRegulatoryInformation . . . . . . . . . . . . . . . .73
42 .UnrelatedBusinessTaxableIncomeProvisions(UBTI) . . . . . . . . . . . . . . . . . . . . . . . .73
43 .MonitoringConversations . . . . . . . . . . . . . . . . .74
44 .TradingorDisbursementRestrictions . . . . . . . . .74
45 .Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
46 .EntireAgreement,AmendmentandWaiver . . . . .74
47 .CertainAcknowledgments . . . . . . . . . . . . . . . . .75
48 .DisclosureofAccountInformation . . . . . . . . . . .76
49 .SIPCProtection . . . . . . . . . . . . . . . . . . . . . . . . .76
50 .Cash-in-LieuPayments . . . . . . . . . . . . . . . . . . .77
51 .Interest,DividendandOtherPayments . . . . . . .77
52 .Back-UpWithholding . . . . . . . . . . . . . . . . . . . . .77
53 .AuthorizationsGrantedtoInvestmentAdvisors . . .77
54 .ElectronicCopies . . . . . . . . . . . . . . . . . . . . . . .78
55 .OptionalDividends . . . . . . . . . . . . . . . . . . . . . .78
56 .ProcessingandExecutionofElectronicTransactions . . . . . . . . . . . . . . . . . . . . . . . . . . .78
57 .IndependentBranchLeadersWhoMayServiceYourAccount . . . . . . . . . . . . . . . . . . . . .78
Margin and Short Account Agreement . . . . . . . . . . 79
Disclosure of Credit Terms and Policies . . . . . . . . . 80
1 .InterestCharges . . . . . . . . . . . . . . . . . . . . . . . 80
2 .DailyMarginInterestRate . . . . . . . . . . . . . . . . 80
3 .CompoundingInterestCharges . . . . . . . . . . . . .81
4 .InitialMarginRequirements . . . . . . . . . . . . . . . .81
5 .MarginMaintenanceRequirements . . . . . . . . . .82
6 .ShortOptionPositions . . . . . . . . . . . . . . . . . . 83
7 .ShortSales . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
8 .LiensandLiquidation . . . . . . . . . . . . . . . . . . . 85
Schwab StockBuilder Plan® . . . . . . . . . . . . . . . . . . 86
1 .ProvisionofSchwabStockBuilderPlan® . . . . . . 86
2 .EligibleSecurities . . . . . . . . . . . . . . . . . . . . . . 86
3 .EligibleCashDistributionsforReinvestment . . . .87
4 .DividendReinvestmentTransactionsinEligibleSecurities . . . . . . . . . . . . . . . . . . . . . . .87
5 .PartialShares . . . . . . . . . . . . . . . . . . . . . . . . . .87
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6 .ConfirmationsonStatements . . . . . . . . . . . . . 88
7 .ContinuingEffectofAuthorization;Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
8 .AutomaticDividendReinvestmentTransactionsinTheCharlesSchwabCorporationStock . . . . 88
Electronic Services Agreement . . . . . . . . . . . . . . . 89
1 .UseofElectronicServices . . . . . . . . . . . . . . . . 89
2 .RisksofElectronicTrading . . . . . . . . . . . . . . . . 90
3 .FastandVolatileMarketConditions . . . . . . . . . .91
4 .FinancialMarketInformation;NoWarranty . . . . .92
5 .LimitationsofLiability . . . . . . . . . . . . . . . . . . . .93
6 .ConsenttoEmailCommunicationsandOptingOut . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
7 .UseofProprietaryInformation . . . . . . . . . . . . . .95
8 .UseofQuotes . . . . . . . . . . . . . . . . . . . . . . . . . .95
9 .OrderChangeorCancellationRequests . . . . . . 96
10 .NoLegalorTaxAdvice . . . . . . . . . . . . . . . . . . . 96
11 .InvestmentAdvice . . . . . . . . . . . . . . . . . . . . . . 96
12 .Access,PasswordsandSecurity . . . . . . . . . . . .97
13 .DataTransmission . . . . . . . . . . . . . . . . . . . . . .97
14 .UseofSoftware,Programs,ApplicationsorOtherDevicestoAccessElectronicServices . . 98
15 .Subscription,ServiceandUseFees . . . . . . . . . 98
16 .AccountRestrictions . . . . . . . . . . . . . . . . . . . . 99
17 .Indemnification . . . . . . . . . . . . . . . . . . . . . . . . 99
18 .OurAbilitytoTerminateElectronicServices . . . 99
19 .ElectronicCommunications . . . . . . . . . . . . . . 100
20 .General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
21 .Modifications . . . . . . . . . . . . . . . . . . . . . . . . .101
22 .GoverningLaw . . . . . . . . . . . . . . . . . . . . . . . .101
23 .Third-PartyBeneficiaries . . . . . . . . . . . . . . . . .102
Schwab One International® Account Agreement . . 102
1 .Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
2 .MinimumInitialDeposit . . . . . . . . . . . . . . . . . .102
3 .AdministrationofForeignCurrencyConversionTransactions . . . . . . . . . . . . . . . . .102
4 .ResidencyStatus . . . . . . . . . . . . . . . . . . . . . .103
5 .AccountControlCertifications . . . . . . . . . . . . .104
6 .ErrorsorQuestionsAboutYourSchwabOneInternational®AccountTransactions . . . . . . . . .104
7 .AustraliaDisclosure . . . . . . . . . . . . . . . . . . . .104
Applicability to Other Accounts . . . . . . . . . . . . . . 105
1 .SchwabPersonalChoiceRetirementAccount®(PCRA)andPlanAdministratorServices(PAS)Plan-LevelCustodyAccount . . . . . . . . . . . . . . .105
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Schwab One® Account Agreement
IntroductionThispublicationcontainsimportanttermsandcondi-tionsthatapplytoyourSchwabOne®Account .Pleasereadthispublicationcarefullyandretainitforfuturereference .
CharlesSchwab&Co .,Inc .isamemberfirmoftheFinancialIndustryRegulatoryAuthority(FINRA) .Assuch,wearerequiredtoinformyouoftheavailabilityofaFINRAInvestorBrochure,whichincludesinforma-tionontheFINRAPublicDisclosureProgram .YoumaycontacttheFINRApublichotlineat1-800-289-9999orontheInternetatwww .finra .org .
SummaryTheSchwabOne®AccountconsistsofBrokerageServicesandoptionalcheckingservicesprovidedbyPNCBank,NationalAssociation,andaVisa®DebitCardissuedbyBNYMellonInvestmentServicingTrustCompany .TheVisa®DebitCardtermsaresetforthintheCharles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure Statement .IfyoudecidetobecomeaVisa®DebitCardholder,youwillreceiveyourCharles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure Statementwithyournewcard .
YoumayusetheVisa®DebitCardandcheckstopayforgoodsandservicesortowithdrawcashfromyourSchwabOne®Account .
WewilldeductchecktransactionsfromyourSchwabOne®Accountinthefollowingmanner:
• Chargeswillbemade,firstagainstthecashassetsinyouraccount,whichmayconsistofaFreeCreditBalance,depositsintheBankDepositfeature,orsharesofaSchwabSweepMoneyFundoranotherSchwabMoneyMarketFund™;then
• Iftheamountofthedebitexceedsyourcashassets,wewillextendcredittoyoutotheextentoftheAvailableMarginLoanValueofyourmarginablesecurities .
WewillpayinterestonyourFreeCreditBalanceawait-inginvestment,andwewillchargeinterestonamountsyouoweus .
DefinitionsAsusedintheSchwabOne®AccountAgreement,thetermslistedbelowaredefinedasfollows:
• “Account”—AccountmeansthebrokerageAccountestablishedunderyourAccountApplicationandAccountAgreement .
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• “Accounts of Your Household”—AccountsofYourHouseholdareaccountsthathavebeenlinkedinaccordancewithSchwab’shouseholdingguidelines .Schwabmakesareasonableefforttoautomaticallylinkqualifiedaccountsofpersonswiththesamelastnameatthesamehomeaddress,includingaccountsheldatcertainSchwabaffiliates .
SchwabaggregatesthebalancesandactivitiesofAccountsofYourHouseholdtodetermineforbroker-ageaccounts:commissionrates,theinterestratesthatcertaincashbalancesreceive,whetherthoseaccountsmayqualifyforcertainfeewaivers,andwhetherthoseaccountsmayqualifyforcertainbenefitsorfeatures(“HouseholdCalculations”) .
Schwabmayconsiderotheraccountstobeinyourhouseholduponyourrequestifaccountholdersareinthesamefamily,thereisadependentrelation-ship,orincertainothersimilarinstancesatSchwab’sdiscretion .Youareresponsibleforidenti-fyingaccountsthatshouldbelinkedforpurposesofdeterminingAccountsofYourHouseholdandHouseholdCalculations .Forexample,ifyouorothermembersofyourfamilywhoresideatyourhomeaddresshaveadifferentlastname(includingaspouse,ifapplicable),youneedtocontactSchwabtorequestthatwecombineyouraccountsforpur-posesofHouseholdCalculations .IfanaccountisaddedtotheAccountsofYourHousehold,anyimpactonHouseholdCalculationsmaynottakeeffectuntilthefollowingquarter .
• “ATM Withdrawal”—aTransactioninwhichyoureceivemoneyfromanATM .
• “Authorization Limit”—ThemaximumamountyoumaywithdrawfromyourSchwabOne®Accountusingchecks .
• “Available Margin Loan Value”—TheamountofcreditwemayextendtoyoubasedonthevalueofmarginablesecuritiesheldinyourMarginandShortAccount .
• “Bank”—PNCBank,NationalAssociation,and/oritsaffiliates .
• “Banking Day”—ATMwithdrawals:TheBankusessevenBankingDayseachweekforpurposesofthesecuritylimitsonthenumberandamountofwith-drawalsfromATMsyoucanmake .BankingDaysbeginatmidnight,easterntime .
Cashadvances,purchasesandauthorizations:TheBankusessixBankingDayseachweekforpurposesofthesecuritylimitsonthenumberandamountof
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cashadvances,purchasesandauthorizationsyoucanmake .BankingDaysbeginat6:00p .m .easterntime .TheperiodfromFridayat6:00p .m .toSundayat6:00p .m .easterntimeiscountedasoneBankingDay .
• “Bank Services”—CheckingaccountservicesprovidedbytheBank .
• “BNY Mellon Investment Servicing Trust Company”—TheentityresponsibleforadministrationoftheBankservicesprovidedhereunder .BNYMellonInvestmentServicingTrustCompanywasformerlyknownasPFPCTrustCompany .
• “Business Day”—BusinessDayisanydaythattheNewYorkStockExchangeandtheFederalReserveBankofNewYorkareopen .(Althoughourofficesmaybeopenoncertainbankholidays,thesedaysarenotconsideredBusinessDaysforpurposesrelatingtothetransferoffunds .)
• “Cash Account”—Thebasicbrokerageaccountweoffer .
• “Day Trading”—Regulartransmissionofintradayorderstoeffectbothpurchaseandsaletransac-tionsinthesamesecurityorsecurities .
• “Debit Balance”—Anaccountbalancerepresentingmoneyowedtous .
• “Debit Card”—TheSchwabOne®Visa®cardisadebitcard,notacreditcard .Thismeansthatpur-chasesandcashwithdrawalsyoumakewiththecardwillbechargedagainstassetsinyourSchwabOne®Account,ratherthanagainstalineofcreditextendedbytheBank .
• “Electronic Fund Transfer”—AnytransferoffundsinitiatedorauthorizedbyyouthroughanelectronicpaymentsystemsuchastheAutomatedClearingHouse(ACH)Network,includingtheelectronicfundtransfersyoucanmakewithaVisa®DebitCardasdescribedintheCharles Schwab & Co., Inc. Visa®Debit Card Agreement and Disclosure Statementortheelectroniccheckconversionsthatoccurwhenyouauthorizeamerchantorotherpayeetomakeaone-timeelectronicpaymentfromyourAccountusinginformationfromyourchecktopayforpur-chasesorpaybills .
• “FDIC”—TheFederalDepositInsuranceCorporation .
• Free Credit Balance—DefinedforpurposesofthisAgreementastheuninvestedcashinyourAccount,minusthefollowing:(i)fundsnecessarytopayforpurchasetransactionsduetosettlewithinthenext
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twoBusinessDaysafterthesweepdate;(ii)chargestoyourAccount,including,butnotlimitedto,Visa®transactions,ATMwithdrawals,ElectronicFundTransfers,wiretransfersandcheckingtransactions;(iii)anyunpostedVisa®transactions;and(iv)creditbalancesthataredesignatedascollateralforyourobligations,suchasacashbalanceresultingfromashortsale .IndeterminingwhethertosweepfundsintoyourCashFeature,wemay,butarenotobligatedto,offsetcreditsanddebitsagainsteachother .ProceedsfromthesaleofsecuritieswillnotbecomepartoftheFreeCreditBalanceuntiltheBusinessDayfollowingsettlementdate .Creditsthatresultfromdividendsorinterestpayments,deposits,wiredfunds,reorganizationactivitiesorothernon-trade-relatedtransactionswillnotbecomepartoftheFreeCreditBalanceuntilthenextBusinessDay .
• “Good Delivery”—Thedeliverytousoffreelytransfer-ablesecurities(thatis,properlyregistered,endorsedandfullynegotiablestockorbondcertificates) .
• “Household Balance”—HouseholdBalancemeansthetotalcombinedvalue,overagivenperiodoftime,intheAccountsofYourHousehold,includingmarginbalancesandotheroutstandingdebitbal-anceslikemortgage,HomeEquityLineofCredit(HELOC)andcreditcardbalances .Forthepurposeofdeterminingcommissionrates,interestrates,andfeewaivers,SchwabaddsupyourdailyHouseholdBalancesthendividesthetotalamountbythenumberofdaysintheapplicableperiod .
• “Household Calculations”—Schwab’scalculationoffees,feewaivers,interestratesandotherbenefitsandfeaturesthatapplytotheAccountsofYourHousehold .
• “Long Sale”—Thesaleofasecuritythatyouown .
• “Margin and Short Account Feature”—AddingthisfeaturetoyourSchwabOne®AccountallowsyoutoborrowfundsfromSchwab,usingacceptablesecuri-tiesorcashascollateralfortheloan .Youmusthavethisfeaturetomakeshort-saletransactionsortotradeoptions .
• “Other Property”—Money,instruments(includingcertificatesofdepositandotherfinancialinstru-ments)andanyotherpropertyorrights .
• “Schwab Account”—ThebasicbrokerageaccountatSchwabthatallowsyoutobuyandsellstocks,bonds,mutualfundsandotherinvestments .ThisaccountdoesnotincludeBankServicessuchaschecksandVisa® .
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• “Schwab One® Account Agreement”—TheagreementyoumakewithusandtheBankwhenyouopenaSchwabOne®Account,consistingoftheSchwabOne®Application,thisSchwabOne®AccountAgreementandanyotherwrittenagreementsbetweenyouandusconcerningyourSchwabOne®Account,allasamendedfromtimetotime .
• “Schwab One® Application”—TheapplicationyousubmittoopenaSchwabOne®Account .
• “Schwab One® Services”—TheBrokerageServicesandtheBankServices .
• “Schwab Sweep Money Fund”—OneoftheSchwabmoneymarketfunds,thesharesofwhich(generallyoraspartofaseparateclassofsweepshares)areavailableforautomaticinvestmentandredemptionthroughyourAccountassetforthinthisAgreement .
• “Securities”—Securitiesofanykindandnature,includingthoseyoumaydepositorredepositwithusforanyreason(includingsafekeeping),aswellasuncertificatedsecurities,suchasmoneymarketfundshares .
• “Short Sale”—Thesaleofasecurityyoudonotownatthetimetheorderisplaced .
• “Sweep Bank”—AnFDIC-insureddepositoryinstitu-tionaffiliatedwithTheCharlesSchwabCorporation,atwhichinterest-bearingDepositAccountsaremaintainedonyourbehalf .
• “To close any or all transactions”—Tocompleteorliquidateanyorallunsettledtransactions;tocancelopenorders;tosellanyoralllongSecuritiesandOtherProperty,includingoptions;tobuyanyorallSecuritiesandOtherPropertythatareshortintheSchwabOne®Accountorrequiredfordeliveryagainstanysaleorderorotherobligation;andtopurchaseoptioncontractstocloseanyoutstandingshortoptionpositions .
• “You”/“Your”/“Account Holder”—EachpersonwhosignstheSchwabOne®AccountApplication .
• “We”/“Us”/“Our”/“Schwab”—CharlesSchwab&Co .,Inc .
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Schwab One® Services
1. Minimum Requirements to Open an AccountSchwabmayestablishfromtimetotimeminimumbalancerequirementstoopenanAccount .Themini-mumdepositmayconsistofacheck,moneyorder,ElectronicFundTransferand/ormarginablesecurities .
2. Income on Free Credit BalanceYoumayearnincomeonFreeCreditBalancesinyourAccountthroughdifferentprogramsthatSchwaboffersinconnectionwithvariousaccounts,servicesandproducts(each,a“CashFeature”) .EligibilityforaparticularCashFeaturewilldependonthenatureandscopeofyourrelationshipwithSchwabanditsaffili-ates .SchwabmaychangetheeligibilitycriteriaforCashFeaturesonadvancewrittennoticetoaffectedclients,ormakecertainCashFeaturesavailabletoclientsthatdonototherwisemeetpublishedcriteria .EligibilitycriteriaforeachCashFeatureispublishedbySchwabfromtimetotime .
Thisdescriptionof,andeligibilityrulesfor,theCashFeatureisupdatedandpublishedbySchwabfromtimetotimeandincorporatedhereinandmadeaparthereof .
YourAccountstatementswillreflectthepaymentofanyinterestandalltransactions(includingpurchases,redemptions,dividends,dividendreinvestments,depositsandinterest)resultingfromyourparticipa-tioninaCashFeature .TheseAccountstatementsareprovidedinlieuofseparateconfirmationsfortransac-tionsresultingfromyourparticipationinaCashFeature .
Changing Cash Features—YoumustdesignateoneoftheCashFeaturesastheCashFeatureforyourAccount .IfyoudonotdesignateaCashFeature,youauthorizeSchwabtousetheCashFeatureindicatedonyourAccountApplicationasthedefaultselection .BydesignatingaCashFeatureforyourAccount,youauthorizeSchwabtomakedeposits,withdrawcashorpurchaseandredeemsecuritiesinaccordancewiththeCashFeatureforwhichyourAccountiseligible .
YoumaychangeyourCashFeatureelectiontoanothereligibleCashFeaturebycontactingSchwab .AsaconditiontochangingaCashFeature,thefundsinyourpriorCashFeaturewillbetransferredtoyournewCashFeature .Inotherwords,SchwabwillredeemallsharesinyourPrimaryFund(asdefinedbelow)orwithdrawallfundsdepositedataSweepBank,asapplicable,andplacetheproceedsorthefundsinyournewCashFeature .
Loss of Eligibility for Cash Features—IfyoubecomeineligibleforaparticularCashFeature,thenyouautho-
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rizeSchwabtodesignatetheCashFeatureforwhichyourAccountistheneligibleassetforthintheCashFeatureeligibilityrulesasupdatedandpublishedbySchwabfromtimetotime .Lossofeligibilitymayoccurasaresultofyourfailuretomeettheeligibilityrequire-mentsorachangeintheeligibilityrequirements .SchwabwillgiveyouadvancenoticebeforereplacingyourineligibleCashFeaturewithaneligibleCashFeature .
TherearetwomethodsbywhichyouauthorizeSchwabtochangeyourineligibleCashFeaturetoaneligibleCashFeature .YouagreethatSchwabmayuseeithermethoduponadvancewrittennoticetoyou .
Underthefirstmethod,onthedatesetforthinthewrittennotice,SchwabwillinvestyourFreeCreditBalancesaccordingtothetermsofyournewCashFeature .Inaddition,alldebitsincurredinyourAccount,includingsecuritiespurchases,charges,transactionsandwithdrawals,willbesatisfiedbyfirstwithdrawingfundsorredeemingsharesfromyourno-longer-eligibleCashFeatureuntilthebalancesinsuchCashFeaturearedepleted .Schwabwilloffsetcreditsanddebitsasdescribedwithintheterm“FreeCreditBalances,”whichisdefinedinyourapplicableAccountAgreement .Afterthebalancesinyourineli-gibleCashFeaturearedepleted,debitswillbesatis-fiedfromthefundsinyournewCashFeature .
Underthesecondmethod,Schwabmay,withyourconsent,withdrawcashorredeemsecuritiesmaintainedintheineligibleCashFeatureandinvestordeposittheproceedsinthereplacementCashFeature .Yourconsentmaybeobtainedinadvanceinwritingwhenyouenrollforaserviceorproduct .Forexample,ifyourparticipationinaparticularservice—includingafee-basedserviceoroneofSchwab’sinvestmentadvisoryservices—ends,orifyouchangetheregistrationofyourAccount,Schwabmayactuponanypre-consentsyouprovidedinwritingthatpermitthewithdrawalofcashorredemptionofsecuritiesmaintainedinoneCashFeatureandinvestordeposittheproceedsinareplacementCashFeature .SchwabmayalsoobtainyourconsentbynotifyingyouinadvanceinwritingofanyproposedchangestoyourCashFeature .Youagreetorespondwithyourdenialwithin30daysafterreceiv-ingournoticeorSchwabmaytreatyournon-responseasyourapproval .Thisauthorizationwillremaineffectiveuntilyougivenoticetoustothecontrary .Suchnoticewillnotaffectanyobligationsresultingfromtransac-tionsinitiatedpriortoourreceiptofthenotice .
Limited Liability—IfSchwabfailstosweeporpayinterestonyourFreeCreditBalancesaccordingtothisAgreement,Schwab’sliabilityislimitedtotheactualamountofinterestordividendsyouwouldhave
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earnedhadtheFreeCreditBalancesbeeninvested,depositedorcreditedinthemannerdescribedinthisAgreement .
Money Fund Sweep Feature—The“MoneyFundSweep”featureautomaticallyinvestsinandredeemssharesinaSchwabSweepMoneyFundasdescribedherein .YoumustdesignateoneoftheSchwabSweepMoneyFundsasthe“PrimaryFund”foryourAccount .Ifyoudonotdesignateaprimaryfund,youauthorizeSchwabtousetheCashFeatureindicatedonyourAccountApplicationasthedefaultselection,whichmaynotbetheMoneyFundSweepfeature .
IfyouelecttheMoneyFundSweepfeature,FreeCreditBalancesofonedollar($1)ormoreinyourAccountwillbesweptintoyourPrimaryFundafterthecloseofbusinessonthatBusinessDayandgenerallywillnotbeginearningdividendsuntilthefollowingBusinessDay .ProceedsfromthesaleofsecuritieswillbesweptintoyourPrimaryFundtheBusinessDayfollowingsettlement,providedthatthesecuritiessoldhavebeenreceivedingooddeliverableformpriortoSettlementDate .Schwabhassolediscretiontochangewhenandhowoftensweepsoccuruponadvancewrittennoticetoyou .
IfwehavecreditedyourAccountfordividendsonyourSchwabSweepMoneyFundresultingfromtheinvest-mentofmoneyrepresentedbyacheckorotheritemthatislaterreturnedunpaid,wewilldebityourAccountfortheamountofthesedividends .
WewillautomaticallyredeemsharesofyourSchwabSweepMoneyFundtosatisfyadebitbalanceinyourAccountor,ifapplicable,toprovidenecessarycollat-eraltoyourMarginandShortAccountatanytime .Wewillgenerallyalsomaketheseautomaticredemptionstopayforsecuritiestransactions,andtopayforElectronicFundTransfers,wiretransfersand,asapplicable,Visa®,ATM,checkingtransactionsandothercharges .Youagreetoholdusharmlessifwedonotmakesuchautomaticredemptions .Ifyouintendtosendfundstosettlesecuritiestransactions,wemustreceivethesefundsontheBusinessDaybeforethesettlementdatetopreventanautomaticredemp-tion .IfthereareinsufficientsharesinyourPrimaryFundtosatisfyadebitbalanceinyourAccount,andyouownsharesinothermoneymarketfunds,wewillredeemsuchsharesasnecessary .UnlikeSchwabSweepMoneyFundsharesavailableundertheMoneyFundSweepfeature,sharesintheSchwabValueAdvantagefundsarenotautomaticallyredeemed,butwereservetherighttoredeemsuchsharesandchargeafeeforthisservice .
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YouauthorizeustoactasyouragenttopurchaseandredeemmoneymarketfundsharesaccordingtothisAgreement .Thisauthorizationwillremaineffectiveuntilyougivewrittennoticetoustothecontrary .Suchnoticewillnotaffectanyobligationsresultingfromtransactionsinitiatedpriortoourreceiptofthenotice .
InvestmentsintheSchwabSweepMoneyFundsaresubjecttorestrictionsdescribedintheapplicableSchwabSweepMoneyFund’sprospectus .FormorecompleteinformationaboutaSchwabSweepMoneyFund,includingchargesandexpenses,readthefund’sprospectuscarefully .AlthoughinvestmentsinSchwabSweepMoneyFundsprovideameansofearningareturnoncash,interestsinSchwabSweepMoneyFundsareinvestmentsinsecuritiesthatmayincreaseordecreaseinvalue .AninvestmentinaSchwabSweepMoneyFundisneitherinsurednorguaranteedbytheFederalDepositInsuranceCorporation(FDIC)oranyothergovernmentagency .TherecanbenoassurancethataSchwabSweepMoneyFundwillbeabletomaintainastablenetassetvalueof$1 .00pershare .IntheeventthataSweepMoneyFundisnolongerabletomaintainthenetassetvalueofitssharesat$1 .00,thenyouauthorizeandinstructSchwab,withoutfurthernoticetoyou,toredeemallofyourSweepMoneyfundsharesassoonascommerciallypracticableanddesignateanewCashFeatureforwhichyourAccountistheneligibleassetforthintheCashFeatureeligi-bilityrulesasupdatedandpublishedbySchwabfromtimetotime .PleasereviewthecurrentCashFeaturesDisclosureStatementformoreinformationabouttherisksassociatedwithsuchanevent .
SchwabSweepMoneyFundsmay,totheextentper-mittedbylaw,includemoneymarketfundsforwhichSchwaboritsaffiliatesreceivetransactionandotherfeesforprovidingservices(suchasinvestmentadvi-sory,administration,transferagency,distributionandshareholderservices),andthesefeeswillvarydependingonthemoneymarketfund(orshareclass)used .NoportionofthesefeeswillreduceoroffsetthefeesotherwiseduetoSchwabinconnectionwiththeAccountunlessrequiredbylaw .
Note:NotallSchwabmoneyfundsareSchwabSweepMoneyFunds .Schwabofferscertainproprietarynon-sweepmoneyfunds,includingSchwabValueAdvantageInvestments®,thatdonothaveasweepfeature .UnlikeSchwabSweepMoneyFundshares,sharesinthesefundsarenotautomaticallyredeemedtopayfordebits,includingsecuritiespurchases,checks,Visa®anddebitcharges,andotherchargesasmaybeapplicablefromtimetotime .Suchdebits
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andchargeswillcontinuetobesatisfiedasdescribedunderthedefinitionof“FreeCreditBalance”inthisAgreement .
Ifyourdebitsandchargescannotbesatisfiedinthemannerdescribedundertheterm“FreeCreditBalance,”Schwabmay,butisnotobligatedto,redeemsharesofproprietarynon-sweepmoneyfunds .Schwabmaychargeyouafeeeachtimeitredeemssharesunderthesecircumstances .Foraccountswiththemarginfeature,ifSchwabdoesnotredeemsharesofanavailableproprietarynon-sweepmoneyfundtosatisfyadebit,youwillberesponsibleforanycorrespondingmargininterestchargesthatmayapply .
Bank Deposit Feature—The“BankDeposit”featureautomaticallymakesdepositstoandwithdrawalsfromdepositaccountsatanFDIC-insureddepositoryinsti-tutionaffiliatedwithSchwab(i .e .,aSweepBank)asdescribedherein .IfyouparticipateintheBankDepositfeature,youauthorizeandinstructSchwab,asyouragent,toestablishthefollowingdepositaccounts(collectively,the“DepositAccounts”)attheapplicableSweepBank:
• ANegotiableOrderofWithdrawal(“NOW”)Account;and
• AMoneyMarketDepositAccount(“MMDA”) .
YouappointSchwabasyouragentandcustodiantoestablishandmaintainyourDepositAccountsatyourSweepBank .Asyouragent,SchwabwilldeposityourFreeCreditBalancesinyourMMDA .Schwab,asyouragent,maytransferfundsfromtimetotimebetweenyourNOWAccountandyourrelatedMMDA .YouagreethatSchwabmayperiodicallyestablishaminimumamounttobemaintainedinyourNOWAccounttosatisfydebitsinyourAccount .
InthecaseoftheBankDepositfeature,theFreeCreditBalancesofonedollar($1)ormoreinyourAccountwillbeautomaticallydepositedinyourDepositAccountsafterthecloseofbusinessonthatBusinessDayandgenerallywillnotbeginearninginterestuntilthefollowingBusinessDay .ProceedsfromthesaleofsecuritieswillbedepositedintoyourDepositAccountstheBusinessDayfollowingsettlement,providedthatthesecuritiessoldhavebeenreceivedingooddeliv-erableformpriortoSettlementDate .Schwabhassolediscretiontochangewhenandhowoftensweepsoccuruponadvancewrittennoticetoyou .
IfwehavecreditedyourAccountforinterestondepositsinyourDepositAccountsthatresultfromacheckorotheritemthatislaterreturnedunpaid,wewillchargeyourAccountfortheamountofthisinterest .
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Youauthorizeus,asyouragent,toautomaticallywithdrawfundsfromyourNOWAccountatyourSweepBanktosatisfyadebitbalanceinyourAccount .Youalsoauthorizeustomaketheseautomaticwithdraw-alstopayforsecuritiestransactions,andtopayforElectronicFundTransfers,wiretransfersandothercharges .IffundsinyourNOWAccountarenotsuf-ficienttosatisfyyourdebitsinyourAccount,youauthorizeustotransferfundsfromyourrelatedMMDAtoyourNOWAccounttosatisfyyourdebits .
AtanypointduringamonthinwhichtransfersfromyourMMDAapproachfederalregulatorylimits,youauthorizeSchwabtotransferallfundsfromyourMMDAtoyourrelatedNOWAccountandtomakedepositsintoyourNOWAccountuntiltheendofthemonth .YoualsoauthorizeSchwab,asyouragent,totransferfundsondepositinyourNOWAccounttoyourMMDA(minusanyminimumbalance)atthebeginningofthefollowingmonth .
Youagreetoholdusharmlessifwedonotmakesuchautomaticwithdrawals .Ifyouintendtosendfundstosettlesecuritiestransactions,wemustreceivethesefundsontheBusinessDaybeforetheSettlementDatetopreventanautomaticredemption .IfthereareinsufficientfundsinyourDepositAccounts,andyouownsharesinothermoneymarketfunds,wewillredeemsuchsharesasnecessary .UnlikeSchwabSweepMoneyFundsharesavailableundertheMoneyFundSweepfeature,sharesintheSchwabValueAdvantagefundsarenotautomaticallyredeemed,butwereservetherighttoredeemsuchsharesandchargeafeeforthisservice .
YourSweepBankwillpayinterestonyourdepositsinyourDepositAccountsataninterestratesetatthediscretionofyourSweepBank .TheratespaidbytheSweepBanksdependonthetierintowhichyourHouseholdBalance,oryourassetsforthisAccount,oryourbalancesubjecttointerestfalls(oracombina-tionofthesefactors,atoursolediscretion) .AtierisarangeofhouseholdorAccountassetsorbalancessubjecttointerest(oracombinationofthesefactors,atoursolediscretion);differentratesmayapplytodifferenttiers .TheSweepBanksarenotobligatedtopaydifferentinterestratesondifferenttiers .Schwabmaychangethetiersfromtimetotime .ThetiersarepublishedbySchwabfromtimetotime .Theratesmaychangedaily .InterestwillaccrueonAccountbalancesfromthedaytheyaredepositedintoDepositAccountsatyourSweepBankthroughtheBusinessDaypreced-ingthedateofwithdrawalfromDepositAccountsattheSweepBank .Interestwillbecompoundeddailyandcreditedthe15thofeachmonth(orthefollowingBusinessDayifthe15thisnotaBusinessDay) .
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ThedisclosurestatementdescribingtheBankDepositfeature,asupdatedandpublishedbySchwabfromtimetotime,isincorporatedhereinandmadeaparthereof .
Schwab One® Interest Feature—TheSchwabOne®Interestfeaturepaysyouinterestoncashawaitinginvestment .IfyouarereceivinginterestfromSchwabundertheSchwabOne®Interestfeature,youagreethatFreeCreditBalancesinyourAccountaremain-tainedforinvestmentpurposes,andnotsolelyforthepurposeofreceivingsuchinterest .SchwabreservestherighttostoppayinginterestonyourAccount,closeyourAccountortakeanyotheractionifSchwab,initsdiscretion,concludesthatyourFreeCreditBalancesaremaintainedsolelyforthepurposeofreceivinginterest .
Ifyoureceiveinterestfromus,we’llpayinterestonyourFreeCreditBalancesawaitinginvestmentataninterestratewesetatourdiscretion .TheratewepaydependsonthetierintowhichyourHouseholdBalance,oryourassetsforthisAccount,oryourbalancesubjecttointerestfalls(oracombinationofthesefactors,atoursolediscretion) .AtierisarangeofhouseholdorAccountassetsorbalancessubjecttointerest(oracombinationofthesefactors,atoursolediscretion);differentratesmayapplytodifferenttiers .ThetiersaresetforthintheCharles Schwab Pricing Guide .Theratesmaychangedaily .
InterestwillaccrueandwillbecompoundedeachBusinessDay .WepostinteresttoyourSchwabOne®AccountonorbeforethelastBusinessDayofeachmonth .If,onanygivenday,theinterestthatSchwabcalculatesforyourAccountinaccordancewiththeforegoingislessthan$0 .005,youwillnotearnanyinterestonthatday .IftheonlybalanceinyourSchwabOne®Accountisaccruedbutunpostedinter-est,theinterestwillnotbecompounded .
SchwabwillpayinterestonremittancesbycheckbeginningonthefirstorsecondBusinessDayafterthecheckisdeposited,dependingonthelocationofyourbank .Interestwillaccrueevenifaholdisplacedonthecheck .However,ifwehavecreditedyourSchwabOne®Accountforinterestonfundsrepre-sentedbyacheckorotheritemthatislaterunpaid,wewillchargeyourSchwabOne®Accountfortheamountoftheinterestpaid .
SchwabmayincreaseordecreasetherateofinterestordecidetoterminatetheSchwabOne®Interestfeature,anytime,initsdiscretion .Wealsoreservetherighttochange,withoutpriornotice,themethodofcalculatingandpayinginterestthatwedescribeabove .
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3. Float DisclosureYouagreethatSchwabmayretainascompensationforservicesyourAccount’sproportionateshareofanyinterestearnedonaggregatecashbalancesheldinSchwab’sbankaccountwithrespectto(1)assetsawaitinginvestmentor(2)assetspendingdistributionfromyourAccount .SuchinterestretainedbySchwabshallgenerallybeatmoneymarketrates .
Assetsawaitinginvestmentordepositinclude:(1)amountsdepositedbyyouintoyourAccount;and(2)anyotheruninvestedassetsheldbyyourAccountcausedbyanauthorizedinstructiontoSchwabtopurchaseorsellsecurities(whichmay,aftertheperioddescribedbelow,automaticallybesweptintoaSchwabSweepMoneyFundordepositedintoaSweepBank) .Withrespecttosuchassetsawaitinginvestmentordeposit:(i)wheresuchassetsarereceivedbySchwabonaBusinessDayandbeforedepositcutofftimeforthelocalSchwabInvestorCenterwithwhichthefundsaredeposited,suchinterestmaybeearnedbySchwabthroughthebegin-ningofthefollowingBusinessDay;(ii)wheresuchassetsarereceivedonadaywhichisnotaBusinessDay,orwheresuchassetsarereceivedafterthelocalSchwabInvestorCenter’sdepositcutofftime,suchinterestmaybeearnedthroughthebeginningofthesecondfollowingBusinessDay .
WhenSchwabreceivesarequestforadistributionfromyourAccount,SchwabgenerallyprocessestherequestwithintwoorthreeBusinessDays(unlessthedistributionisinconnectionwithanunusualeventsuchasdeathordivorce,inwhichcaseitgenerallywilltakelongertoprocesstherequest) .Onthesamedaythattheprocessingiscompleted,theamountofthedistributionwillbedebitedfromyourAccount .ThedistributioncheckwillbewrittenandmailedonthefollowingBusinessDay .YouagreeandacknowledgethatSchwabwillearninterestbeginningonthedateyourAccountisdebitedandendingonthedatethecheckispresentedforpayment,thetimingofwhichisbeyondthecontrolofSchwab .Uponrequest,Schwabwillprovideyouaverbalupdatetodeterminethestatusofyouroutstandingdistributionchecks .
IfyourequestaSchwabMoneyLink®transferfromyourAccounttoanotherfinancialinstitution:(i)theamountofthetransferwillbedebitedfromyourAccountonthedaythatthetransferprocessiscommenced;(ii)thefundswillbereceivedbytheotherfinancialinstitutionwithinonetotwoBusinessDaysofthedatethetransferprocessiscommenced;and(iii)youagreeandacknowledgethatSchwabmayearninterestonthatamountbeginningonthedateyourAccountis
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debitedandendingonthedatetheelectronicfundtransferisreceivedbytheotherfinancialinstitutionandtherebydebitedfromSchwab’sbankaccount .
IfyouchoosetochangeyourCashFeaturefromoneCashFeaturetoanother,youwillgenerallystopearn-inginterestordividends,asthecasemaybe,onthedayofyourrequest .IfyoudesignateanewCashFeaturebeforethecloseofbusinessonaBusinessDay,yourFreeCreditBalanceswillbeswepttoyournewCashFeatureafterthecloseofbusinessthatBusinessDay,andgenerallywillbeginearningdivi-dendsorinterest,asthecasemaybe,onthefollow-ingBusinessDay .IfyoudesignateanewCashFeatureafterthecloseofbusinessoronanon–BusinessDay,yourFreeCreditBalanceswillbeinvestedordepositedintoyournewCashFeatureafterthecloseofbusinessonthenextBusinessDay,andgenerallywillbeginearningdividendsorinterestontheBusinessDayfollowingthenextBusinessDay .IfyourequestthatSchwabautomaticallysenddivi-dends,interestorotherpaymentsdirectlytoyou,andtheAccounthasaSchwabSweepMoneyFundasaCashFeature,netpaymentswillnotaccrueinterestbetweenthetimetheyarecreditedtotheAccountandthetimetheyaredisbursedtoyou .
IfyouremoveallCashFeaturesfromyourAccount,youmaynotearnincomeontheFreeCreditBalancesinyourAccountandyouagreethatSchwabmayretainascompensationforservicesyourAccount’spropor-tionateshareofanyinterestearnedonyourFreeCreditBalances .
4. Authorization LimitTheAuthorizationLimitisthemaximumamountyoumaywithdrawfromyourSchwabOne®Accountusingyourchecks,ACHorElectronicFundTransfers .SchwabmayputaholdonfundsinyourAccountorotherwiserestrictwithdrawalsortransfersfromtheaccounttoalimitthatislowerthantheAuthorizedLimit,ifthereisriskoffraudulent,unusualorunau-thorizedactivitybasedoncertainparametersestab-lishedbySchwab .YourAuthorizationLimitiscalculatedeachBusinessDayandisthesumof:
• YourFreeCreditBalance,thevalueofanySchwabSweepMoneyFund,andthevalueofcashbalancesdepositedinaSweepBankinyourSchwabOne®Account;plus
• TheAvailableMarginLoanValueofthemarginablesecuritiesheldinyourMarginandShortAccount;minus
• TheamountofanyVisa®draftsthathavebeenauthorizedbutnotyetpaid;and
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• Theamountrequiredtosettleanypendingsecuri-tiespurchasesinyourMarginAccount;and
• AccruedmargininterestthathasnotyetbeenpostedtoyourAccount;and
• DepositsreceivedbyusforcredittoyourSchwabOne®Accountonwhichahold(asdescribedinSection7)hasbeenimposed .
ProceedsofthesaleofsecuritieswillnotbeincludedintheAuthorizationLimituntiltheBusinessDayaftersettlementdate .
5. Services and FeesEnrollment in a ServiceSchwaboffersanumberofaccounttypes,servicefeaturesandbenefitpackages,eachofwhichisreferredtoasa“Service”forpurposesofyourAccountAgreement .EachServicemayhaveuniquefeesandadditionaltermsandconditions .ByenrollinginaServiceorotherwiseusingaServiceandnotdiscontinuingyourenrollmentinthatService,youagreetoabidebythetermsandconditionsorsupple-mentalagreement(“TermsofService”)applicabletosuchService,inadditiontothisAccountAgreement .
Householding GuidelinesUnlessyounotifySchwabotherwise,Schwabwillmakeareasonableefforttolinkqualifiedaccountsofpersonswiththesamelastnameatthesamehomeaddress .Schwabmaylinkotheraccountsuponyourrequestifaccountholdersareinthesamefamily,thereisadependentrelationship,orincertainothersimilarinstancesatSchwab’sdiscretion .Certainaccountsmaynotbeeligibleforlinking .Theassetsoflinkedaccountsarenotcommingled,andallclientslinkingaccountsretaincontrolover,andresponsibilityfor,theirindividualaccounts .
SchwabisnotresponsibleforidentifyingaccountsthatareeligibletobelinkedforpurposesofdeterminingtheAccountsofYourHousehold .ItistheobligationoffiduciariestonotifySchwabofaccountsthatshouldnotbelinked .YouagreetocontactSchwabifyouareactinginafiduciarycapacityandwantyourfiduciaryaccountaggregatedaspartoftheHouseholdCalculationorexcludedfromtheHouseholdCalculation .YoumaycontactSchwaboryourInvestmentAdvisorformoreinformationortogiveSchwabinstructionswithrespecttolinkingeligibleaccounts .
Certainfeesandotheritemsrelatingtoyouraccountarecalculatedbyconsidering(i .e .,aggregating)activi-tiesandbalancesintheAccountsofYourHousehold .Youacknowledgeandagreethatitisyourresponsibil-itytoreviewtheapplicablePricing Guideorfeesched-
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uleandyouraccountstatements,andtoconsultwithothermembersofyourhouseholdwhomayhaveaccountswithSchwabtodeterminewhetherSchwabshouldupdateorchangeitsHouseholdCalculations .WhileSchwabwillmakeagoodfaithefforttoidentifyandconsideronitsowntheAccountsofYourHouseholdinordertocalculateanypotentiallyappli-cablefeewaivers,youacknowledgeandagreethatSchwabisnotresponsibleforanyclaimederrorinmakingHouseholdCalculationsifyoufailtocontactSchwabwithconcernsorquestionsabouthowSchwabismakingHouseholdCalculations .IfthereareotherholdersofAccountsofYourHousehold,youunderstandandacknowledgethatSchwabmayusegeneralinformationaboutyourHouseholdBalanceandactivitiestoprovideorexplainHouseholdCalculationsorServicesavailabletoyouandthoseotherholdersofAccountsofYourHousehold .IfyoudonotwantyouraccountdataincludedwithdatafromotherAccountsofYourHouseholdforsuchpurposes,youagreetocontactSchwab .
Fees and Incorporation of the Pricing GuidesFeesforparticularServicesandAccountsaregener-allysetforthinapricingguideorfeeschedule,suchastheCharles Schwab Pricing Guide,theSchwab Institutional® Pricing GuideorotherpricingguideasSchwabmayprovide(collectively,the“Pricing Guides,”andindividually,a“Pricing Guide”) .ThePricing GuidesarecompanionstothisAccountAgreementandareincorporatedaspartofthisAccountAgreement .
YouagreetopaytheServicefeesaswellasotherfeesthatapplybasedonyourtransactions,activitiesandrequests,assetforthinthePricing Guideappli-cabletoyouraccountorasSchwabotherwiseinformsyou .Theseotherfeesmayinclude,butarenotlimitedto,thefollowing:
• Commissions,transactions(includingmutualfunds)andorderhandlingfees;
• Accountservicefees;
• Cashieringservices;
• Custodyofcertainassets;
• Reportsrelatingtoyouraccountrequestedbyyouorthatarerequiredbylaw;
• FeesassociatedwithtransactionsinSchwabpropri-etarynon-sweepmoneyfunds(includingSchwabValueAdvantageInvestments®);
• Terminationandtransferfees;and
• Chargesforfailingtomaintainminimumbalancerequirements .
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SomeServicesmayhaveaspecialfeeschedulethatisnotincludedintheapplicablePricing Guide .Ifso,TermsofServicethatyoureceiveatthetimeyoureceiveorenrollintheServicewillincludethatadditionalpricinginformation .YouagreetoreviewtheTermsofServiceandnottouseornottocontinueuseoftheServiceifyoudonotagreetopaytheapplicablefees .
Youagreetopayallapplicablefees,aswellasanyapplicablefederal,stateandlocaltaxes .Schwab’sfailuretodeductfeesfromyourAccountatthetimeyouincurthosefeesdoesnotwaiveSchwab’srighttodeductthosefeesfromyourAccountatalatertime .
SchwabmaymodifyaPricing GuideorfeescheduleapplicabletoaServiceatanytime .Schwabwillpro-videnoticetoyouofanychangeinfeeornewfeeapplicabletoyouinaccordancewithapplicablelawsandregulations .YourcontinueduseofyourAccountoraServicefollowingsuchachangeinfeeornewfeewillevidenceyourconsent .
Somefeesmaybechargedtoadebitorcreditcard .ByauthorizingSchwabtochargeadebitorcreditcard,youareauthorizingSchwaboritsrespectivedesignatedrepresentativesoragentstoautomaticallycontinuechargingthatcard(oranyreplacementcreditcardaccountiftheoriginalcardisrenewed,lost,stolenorchangedforanyreasonbythecredit-issuingentity,andsuchentityinformsSchwabofsuchnewreplacementcardaccount)forallfeesandchargesassociatedwithyourtransactionsortheproductsorServicesyoureceive .
Schwabreservestheright,buthasnoobligation,tonegotiatedifferentpricesorarrangementsthanthosedescribedinaPricing Guideorelsewherewithaccountholdersandwithunaffiliatedthirdpartiesactingasagentsforcertainaccountholders .
Transfer (Out) Fee and Account MinimumsSchwabmaychargeafeewhenyourequestatransferofassetsfromtheAccounttoanotherfinancialinsti-tution(a“TOA”),assetforthintheapplicablePricing Guideorfeeschedule .ATOAoccurswhenyourequest(eitherpersonallyorthroughanotherfinancialinstitu-tion)thatSchwabtransfersecuritiesorcashoutoftheAccount .ATOAofalltheassetsintheAccountisa“fullTOA”;aTOAinanyamountlessthanthisisa“partialTOA .”YoumayobtainacopyoftheapplicablePricing Guideorfeeschedulebycalling1-800-435-4000,orifyourAccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional®,call1-800-515-2157 .Schwabreservestherighttolaterchargefeesorwaivetheminimumorfeesonanyaccountincircumstancesthatwedeemappropriate .
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IfyourAccountfallsbelowtheminimumvaluerequiredtoopenthataccount,youauthorizeustotakesuchactionsasareappropriate,inourdiscre-tion,tocloseyourAccount .Unlessthereisnobal-anceinyourAccount,youwillbegivennoticepriortoourclosingyourAccount .Youauthorizeustoliquidatesharesofanysecurity,including,butnotlimitedto,sharesofanymutualfundsorotherentitieswhosesharesareinacontinuousoffering(“funds”)heldforyouthatarenottransferredtotheissuerforanyreason .Uponclosingyouraccount,wewilleithermailtoyoucertificatesorrequestabook-entrystatementfromtheagentfornon-fundsecuritiesheldforyou(ifthephysicalcertificatesarebeingissuedandtrans-ferredbythecompanyand/ortheTransferAgent)oracheckreflectingthecashbalanceinyouraccountatthetimeitisclosed,orboth,inoursolediscretion .If,afteryourAccountisclosedforanyreason,SecuritiesorOtherPropertyfromanysourcearecreditedtoyourAccount,youauthorizeustomailtoyoueithercertifi-catesfornon-fundsecuritiesoracheckreflectingthecashbalanceinyourAccount,orboth .IncomputingthecashbalanceofyourAccountatthetimeitisclosed,wereservetherighttodeductanyunpaidfeesorcharges(includingaccountservicefees),acertificateprocessingfeeorotherchargesrelatedtoclosingyourAccount .YouagreenottoholdusresponsibleforanylossesincurredinconnectionwiththeclosingofyourAccount .
IfyoudonotmaintainapositiveAuthorizationLimit,wemayterminatetheSchwabOne®AccountServicesdescribedinSections1–36oftheSchwabOne®Servicesportionofthisdocument,convertyourAccounttotheSchwabAccountortakeotheractionwhichinoursolediscretionwedeemappropriate .
6. Returned ItemsIftransactionsinyourAccountreduceyourAuthorizationLimitbelowzero,wewillreturnyourcheck,ACHorElectronicFundTransferunpaidordeclinetheVisa®authorization .WewillchargeafeeforanycheckorElectronicFundTransferwereturnunpaid .
7. When Check Deposits Are Available for Withdrawal or Transfer
WhenyoudepositchecksinyourSchwabOne®Account,theywillbecomeavailableforwithdrawalaccordingtoouravailabilityschedule .DetailsofthescheduleareavailablebyloggingintoyourSchwabAccountatwww .schwab .com,callingusorstoppingbyabranch .However,evenwhendepositedfundsarenotavailableforwithdrawal,youwillreceiveinterestordividendsontheseheldfundsaccordingtoSection
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2,IncomeonFreeCreditBalance .Atourdiscretion,fundsrepresentedbythecheckalsomaybeunavail-ableforsettlementofsecuritiestransactionsduringtheholdperiod .
Wereservetherighttoredepositanychecksthatdonotclearthefirsttimeduetoinsufficientfunds,oranyotherreason,withorwithoutpriorcustomernotification .
8. Unauthorized Wire Transfers, Missing Checks, Unauthorized Signatures and Alterations
Youmustpromptlyexamineyourstatementuponreceipt .Ifyoufindthatyourrecordsandoursdis-agree,orifyoususpectthatawiretransferisunau-thorizedoracheckoranendorsementisalteredorforged,callustoll-freeatonceat1-800-421-4488 .Youmustalsoreportmissingorstolencheckstousimmediatelybycallingthesamenumber .Oryoumaywritetousat:CharlesSchwab&Co .,Inc .,SchwabOne®Department,M .S .03-408,9601E .PanoramaCircle,Englewood,CO80112-3441 .
Ifyoudonotnotifyusinwritingofthesuspectedunauthorizedwiretransfer,forgery,alterationorfraud-ulentchecktransactionpromptly,butinnoeventlaterthan10calendardaysafterwesendormakeavail-abletoyounoticeofthetransactionoryourAccountstatement,whicheverisreceivedfirst,youagreethatthestatementactivityandyourAccountbalancearecorrectforallpurposeswithrespecttothosetransac-tionsandwaiveallclaimsagainstSchwabtorecoveranylossesresultingfromsaidunauthorizedwiretransfer,forgery,alterationorfraudulentcheck .
Ifyoureporttousthatanunauthorizedwiretransfer,forgery,alterationorotherunauthorizedchecktrans-actionhasoccurredonyourAccount,youagreetocooperatewithusintheinvestigationofyourclaim .Thisincludesgivingusanaffidavitcontainingwhat-everreasonableinformationwerequireconcerningyourAccount,thewireorchecktransactionandthecircumstancessurroundingtheloss .
Youagreethatwehaveareasonableperiodoftimetoinvestigatethefactsandcircumstancessurround-inganysuchclaimedlossandthatwehavenoobliga-tiontoprovisionallycredityourAccount .
9. Visa® Card, Cash Withdrawals and Check Transactions
Onapprovalofyourrequest,youwillbesentchecksandaVisa®DebitCardinaccordancewithyourinstructions .Schwabmaychargetransactionandprocessingfeesthatwedeemappropriate .TheVisa®
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cardwillremainthepropertyoftheBankandmaybecanceledanytime,ornotbereissued,bytheBankorSchwabwithoutpriornotice .ByusingyourVisa®DebitCard,youagreetobelegallyboundbythetermsandconditionssetforthintheCharles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure Statement,whichaccompaniesyournewcard .
Ifthecheckfeatureisterminated,yourVisa®cardisautomaticallycanceled .
Note:AnySchwabOne®customerwholivesoutsidetheUnitedStatesandwouldlikeaVisa®DebitCardmustopenaSchwabOneInternational®Account .
10. Presenting Schwab One® ChecksAlthoughSchwabOne®checksarepayablethroughtheBank,checkcashingattheBank’sbranchesisnotpermitted .YoushouldnotexpecttheBanktocashyourSchwabOne®checksastheBankwouldaPNCBankcheck .NegotiateSchwabOne®checksatthebankwhereyoumaintainyourpersonalbankaccount .
11. Our Liability for Failure to Complete Transactions
IfwedonotcompleteatransactiontoorfromyourAccountontimeorinthecorrectamountaccordingtoouragreementwithyou,wemaybeliableforyourlossesordamages .However,innoeventshallSchwabbeliableforanyspecial,indirectorconse-quentialdamages,evenifwehavebeeninformedofthepossibilityofsuchdamages .
Therearesomeexceptions .(Theremaybeotherexceptionsnotspecificallymentionedhere .)Wewillnotbeliable,forinstance,if:
• TheAuthorizationLimitinyourSchwabOne®Accountisnotenoughtocoverthetransaction .
• Circumstancesbeyondourcontrol(suchasfireorflood)preventthetransfer,despitereasonableprecautionsthatwehavetaken .
• IncorrectElectronicFundTransferinstructionsareprovidedtousbyanotherinstitution .
• AnyElectronicFundTransfer,AutomatedClearingHouseNetworkoranyotherthird-partycommunica-tionsystemfromwhichSchwabrequiresinformationtocompletetransactionswasnotworkingproperly .
• YourSchwabOne®Accountisrestricted(becauseofacourtorderorsimilarreason)andwearenotpermittedtomakethetransaction .
• Anerrorinpostinganamountortransactionoccursthatisbeyondourcontrol .
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12. Payment of Cash TransactionsSchwabOne®cashtransactionssuchasVisa®drafts,ElectronicFundTransfersandchecksareprocessedaccordingtoSchwab’sanditsagents’authorizationandbankingprocedures .Visa®drafts,ElectronicFundTransfersandATMWithdrawalsarepaidandchargedagainstthecashassetsinyourSchwabOne®Account(whichmaybeaFreeCreditBalance,theproceedsofredemptionofsharesofaSchwabSweepMoneyFundoranotherSchwabMoneyMarketFund™, orthepro-ceedsofawithdrawalfromtheBankDepositfeature) .Totheextentthedebitexceedsyourcashassets,wewillextendcredittoyouuptotheamountofyourAvailableMarginLoanValue .SuchmarginloanswillbesubjecttoalltermscontainedinourDisclosureofCreditTermsandPolicies .
13. Transferring Funds Between Schwab Accounts
TotransferfundsfromyourSchwabOne®AccounttoanotherSchwabbrokerageaccount,IndividualRetirementAccount(IRA)orQualifiedRetirementPlan(QRP)/KeoghBrokerageAccountinyourname,youmaywritealetterofauthorizationspecifyingtheaccountnumbersinvolvedandtheamountyouwouldliketransferred .
YoumayalsowriteaSchwabOne®check,payabletothenameoftheaccounttowhichyouwouldlikethefundstransferred,ortoCharlesSchwab&Co .,Inc .Youmustdesignateonthechecktheaccountnumbertowhichyouwouldlikethesefundsdeposited .Incertainsituations,Schwabmayacceptverbalinstruc-tionsorothernon-writtenauthorizationtoinitiatetransfersbetweenSchwabaccounts .
14. Authorization to Charge Brokerage AccountsYouauthorizeustochargeyourSchwabOne®AccountfortheamountofyourVisa®drafts,ATMwithdrawals,ElectronicFundTransfersandchecktransactions .Ifthereismorethanoneaccountholder,youauthorizeustopayfundsontheauthorityofonlyoneaccountholder’ssignature .
BycompletingtheappropriatesectionofyourSchwabOne®Application,youmayauthorizeanotherperson(whoisnotanaccountholder)tosignSchwabOne®checks .Torevokesuchauthorization,youmustgiveuswrittennoticeandreturntousthechecksgiventotheadditionalauthorizeduser .YouwillberesponsibleforallchecktransactionsmadebyanyauthorizedpersonandforallVisa®transactionsmadebyanypersonyouhavepermittedtouseyourVisa®card,cardnumberorPIN,eveniftheamountofactualuseexceedsyourauthorizationorpermission .
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15. Stop Payment OrdersIfacheckyouhavewrittenhasnotyetbeenpaidfromyouraccount,youmayrequestastoppaymentbywritingto:
CharlesSchwab&Co .,Inc .SchwabOneDepartmentM .S .03-4089601E .PanoramaCircleEnglewood,CO80112-3441
Orbycallingtoll-free:1-800-421-4488 .
Ifyoucall,wemayalsorequireyoutoputyourrequestinwritingandgetittouswithin14daysafterthecall .Stoppaymentordersprocessedpriorto5:00p .m .easterntimewillnormallybecomeeffectiveafteroneBusinessDay .Stoppaymentordersprocessedafter5:00p .m .easterntimewillbecomeeffectiveaftertwoBusinessDays .Stoppaymentordersremainineffectforsixmonthsforanycheckuptoorequaling$1,000;foranycheckover$1,000,astoppaymentorderwillremainineffectfor30months .Stoppaymentordersontwoormorecheckswithconsecutivenumbers(rangestops)willremainineffectfor30months .
Wepurgethestoppaymentwithinonemonthaftertheexpirationofthestoppaymentorder,unlessyourenewthestoppaymentorder .Ifthecheckisreceivedafterthestoppaymentorderexpires,wemaypaythecheck .
Tostoppayment,weneedthefollowing:
• Accountnumber
• Exactamountofthecheck
• Checknumber
• Fortwoormorecheckswithconsecutivenumbers,thebeginningandendingnumbers
Ifyougiveustheamountofthecheck,weneedtheexactamountindollarsandcents .Ifyougiveusthewrongamount,wemaypaythecheck .
WewillchargeafeetoyourSchwabOne®Accountforeachstoppaymentorderyouplace .
Wewillnotbeliableforfailuretostoppaymentonacheckunlesswehavereceivedtimelynoticeaccord-ingtotheaboveprocedures .
Important:Undercertaincircumstances,paymentofacheckcanbeenforcedevenwhileastoppaymentisineffect .Forexample,ifaSchwabofficeoranotherpersonorentitybecomesa“holderinduecourse”ofacheckthatyouaskustostop,wemaystillpaythecheck .
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Automated Clearing House (ACH) Stop Payment OrdersFromtimetotime,youmayreceiveACHdebitstoyourAccountfromsendersyoupreviouslyauthorizedtodebityourAccount .Youmayaskustostoppay-mentonafutureACHdebittoyourAccountiftheitemhasn’talreadybeenpaid .YouareresponsiblefornotifyingyoursenderthatyouhaverevokedyourpreviousauthorizationforACHdebits .
YoumayrequestanACHstoppaymentorderinwrit-ingorbytelephone .Ifyoucall,wemayalsorequireyoutoputyourrequestinwritingandgetittouswithin14daysafterthecall .Stoppaymentordersprocessedpriorto5:00p .m .easterntimewillnor-mallybecomeeffectiveafteroneBusinessDay .Stoppaymentordersprocessedafter5:00p .m .easterntimewillbecomeeffectiveaftertwoBusinessDays .Stoppaymentordersremainineffectforsixmonths .
Wepurgethestoppaymentwithinonemonthaftertheexpirationofthestoppaymentorder,unlessyourenewthestoppaymentorder .IftheACHitemisreceivedafterthestoppaymentorderexpires,wemaypaytheitem .
ForanACHstoppaymentorder,weneedthefollowing:
• Accountnumber
• ExactamountoftheACHdebit(ifknown)
WemayalsoneedthedatethepriorACHdebitfromthissenderpostedtoyouraccountsothatwecanobtainthecompanynameandcompanyidentificationnumberusedbyyoursenderandprintedonyourstatement .Otherwise,youcanprovideuswiththecompanynameandcompanyidentificationnumberifyouknowit .
IfyougiveustheamountoftheACHdebititem,weneedtheexactamountindollarsandcents .Ifyougiveusthewrongamount,wemaypaytheitem .Ifyoudonotknowtheamount,wecanplacethestoppaymentbasedonthecompanyidentificationnumberofthesender,butthismaystopallACHitemsfromthissender .Ifyougiveusthewrongcompanyidentifi-cationnumberorifthesenderchangesthecompanyidentificationnumber,wemaypaytheitem .
WewillchargeafeetoyourSchwabOne®Accountforeachstoppaymentorderyouplace .
Foradditionalinformationonstoppingapreauthorizedtransfer,includingthetelephonenumberandaddresstouse,seeSection16(YourRighttoStopPaymentofPreauthorizedTransfers) .
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16. Your Right to Stop Payment of Preauthorized Transfers
Ifyouhavetoldusinadvancetomakeregularpay-mentsoutofyourSchwabOne®Account,youcanstopanyofthesepayments .Callustoll-freeMondaythroughFriday,10:00a .m .to7:00p .m .easterntime,at1-800-421-4488 .Oryoumaywritetousat:CharlesSchwab&Co .,Inc .,SchwabOneDepartment,M .S .03-408,9601E .PanoramaCircle,Englewood,CO80112-3441,intimeforustoreceiveyourrequestatleastthreeBusinessDaysbeforethepaymentisscheduledtobemade .Ifyoucall,wemayalsorequireyoutoputyourrequestinwritingandgetittouswithin14daysafterthecall .WewillchargeafeedirectlytoyourSchwabOne®Accountforeachstoppaymentorderyougive .
Iftheseregularpaymentsvaryinamount,thepersonororganizationthatyouaregoingtopayisrequiredtotellyou,10daysbeforeeachpayment,whenitwillbemadeandhowmuchitwillbe .
IfyouorderustostoponeofthesepaymentsatleastthreeBusinessDaysbeforethetransferisscheduled,andwedonotdoso,wewillbeliableforyouractual,reasonablelossesordamages .
FordetailsonstoppingACHdebitstoyouraccount,seeSection15(StopPaymentOrders) .
17. StatementsYouwillreceivestatementsforeachmonthinwhichthereisactivityinyouraccount .Ifthereareassetsbutnoactivityinyouraccount,youwillreceiveaquarterlystatement .Thestatementscontainthefollowinginformation:
• Thechecknumber,amountanddateofpaymentofallchecks .
• ThedateandamountofremittancesandothercreditstoyourSchwabOne®Account,includingElectronicFundTransfers .
• Adescriptionofallsecuritiestransactionsandotherbrokerageactivities .
• Marginloaninterestcharges,ifany .
• TheamountandrateofinterestpaidonyourFreeCreditBalance .
• TheamountofanyfeeschargedtoyourSchwabOne®Account .
• Theamountandyieldonmoneymarketfundbalances .
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Itisyourobligationtoreviewyourstatementsandreceiptscarefully,andtonotifyuspromptlyofanydiscrepancybetweenyourrecordsandtransactionsdetailedonthestatement .
18. Check CopiesWedonotreturnyouroriginalcheckstoyou;however,weprovidethechecknumber,amountanddateofpaymentforeachofthecheckspaidagainstyouraccountonyouraccountstatement .Weretainarecordofallpaidchecksforsevenyearsfromthedatethecheckpoststoyouraccount .Youmayrequestustosendyouacopyofaparticularcheckbycallingus .
19. Unclaimed PropertyTotheextentapplicabletoyouraccount,theunclaimedpropertylawrequiresustoturnovertothestateofyourlastknownaddress(asshowninourrecords)personalpropertywhichisunclaimedbyitsownerforasetperiodoftime .Personalpropertyincludesassetsincustomeraccounts(includingyourSchwabOne®Account)aswellasuncasheddividendchecksandotherSchwabcheckspayabletocustomers .Ingeneral,personalpropertyisconsideredunclaimedifyouhavenotperformedatleastoneofthefollowingactivitieswithintheperiodoftimesetbythestate:
• Madeadeposit,tradeorwithdrawalinyouraccount .
• Writtentoorotherwisecontactedusaboutyouraccount .
• Otherwiseshownaninterestinyouraccount .
Beforeweturnovertheassetsinyouraccount(ifany),wewill,asrequiredbylaw,sendanoticetotheaddresswecurrentlyshowonyouraccountstate-ment .Youmayrecoverunclaimedpropertyturnedovertoastatebycontactingthatstate .
20. Nature of ObligationsTheobligationsoftheBankandSchwabareasstatedintheSchwabOne®AccountAgreement .NeithertheBanknorSchwabisliablefortheobligationsoftheother .
21. Errors or Questions About Checking Transactions
Callusatoncetoll-freeat1-800-421-4488ifyouthinkyourstatementiswrong,orifyouneedmoreinformationaboutatransactionlistedonthestate-ment .OrwritetousatCharlesSchwab&Co .,Inc .,SchwabOneDepartment,M .S .03-408,9601E .PanoramaCircle,Englewood,CO80112-3441 .
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Overseascustomerscancalluscollectat1-317-596-4502 .
Wemusthearfromyoupromptlyandinanyeventnolaterthan30calendardaysforchecktransactionsafterthedateyouaresentthefirststatementonwhichtheproblemorerrorappeared .Ifyoutellusorally,wemayrequireyoutosendusyourcomplaintorquestioninwritingwithin10BusinessDays .Wewillneedthefollowinginformation:
• Yourname,yourcompleteSchwabOne®Accountnumber,thedateandamountofthetransactionandthechecknumber .
• Adescriptionoftheerrorortransactionyouareunsureaboutandanydocumentationrelatingtoyourclaimthatthetransactionwasinerror .Explainasclearlyasyoucanwhyyoubelieveitisanerrororwhyyouneedmoreinformation .
• Thedollaramountofthetransactionorsuspectederror .
Youagreetocooperatewithourreasonablerequestsforinformationasweinvestigateyourclaim .Wemaytakeupto45BusinessDaystoinvestigate .Fortrans-actionsforthepurchaseofgoodsandservicesatmerchantlocations,throughthemailorbytelephone,andtransactionsthatoccuroutsidetheUnitedStates,wemaytakeupto90BusinessDaystoinvestigate .
Ifweaskyoutoputyourcomplaintorquestioninwritingandwedonotreceiveitwithin10BusinessDays,wemaynotbeabletocompleteourinvestigation .Ifwedecidethattherewasnoerror,wewillsendyouawrittenexplanationwithinthreeBusinessDaysafterwefinishourinvestigation .Youmayaskforcopiesofthedocumentsthatweusedinourinvestigation .
Theproceduressetforthaboverelatingtodisputeresolutionandcreditingofaccountsapplyonlytocheckingtransactionsandnottotradingdisputes .
22. Business DaysOurBusinessDaysareMondaythroughFriday,exclud-ingU .S .stockexchangeholidays .Businesshoursmayvarybydepartmentandofficelocation .
23. Consumer Electronic Check RepresentmentIfyouwriteacheckonapersonalaccountthatisreturnedunpaidbecauseofinsufficientoruncollectedfunds,thedepositorofthecheckorthedepositor’sbankmayresend(“represent”)thecheckelectroni-cally .Thatis,thedepositororthedepositor’sbankmaysendtheBankanelectronicinstruction(“elec-tronicrepresentedcheck”)tochargeyourAccountin
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theamountofthecheck .IftheBankreceivesanelectronicrepresentedcheckfromthedepositororthedepositor’sbank,theBankwillpayorreturntheelectronicrepresentedcheckasiftheoriginalpapercheckwerebeingrepresentedtoit .ThepartofthisAgreementtitled“ElectronicFundTransfers”willnotapplytoanyelectronicrepresentedcheck .
ForanelectronicrepresentedchecktobechargedtoyourAccount,allofthefollowingmustbetrue:
• TheelectronicrepresentedcheckmustrelatetoapapercheckonapersonalaccountthattheBankreturnedunpaidbecauseofinsufficientoruncol-lectedfunds;
• Thepapercheckmustnothavecontainedanunau-thorizedsignatureoranalterationandmustnothavebeenacounterfeit;
• YoumustnothaveplacedastoppaymentonthepapercheckafterPNCreturneditunpaidbutbeforeitwascollectedelectronically;
• Thepapercheckmusthavebeenlessthan$2,500 .00inamount;
• Thepapercheckmusthavebeendated180daysorlessbeforethedateonwhichtheelectronicrepre-sentedcheckissenttotheBank;
• Theelectronicrepresentedcheckmustbeforthefaceamountofthepapercheckonlyandmaynotincludeanycollectionfeechargedbythedepositor,thedepositor’sbank,oracollectionagency;
• Thepayeeofthepapercheckmusthavegivenyounoticethat,ifthepapercheckwasreturnedunpaidbecauseofinsufficientoruncollectedfunds,thepapercheckcouldbecollectedelectronically;
• TheelectronicrepresentedcheckmusthavebeensenttotheBanknomorethantwiceafterthefirsttimetheBankreturnedthepapercheck,ornomorethanonceafterthesecondtimetheBankreturnedthepapercheck;
• Theelectronicrepresentedcheckmustbean“item”asdefinedinRevisedArticle4oftheUCC(1990OfficialText);
• Theelectronicrepresentedcheckmustcontainapre-printedserialnumber;
• Theelectronicrepresentedcheckmustindicateonthefaceofthedocumentthattheitemwasreturneddueto“notsufficientfunds,”“NSF,”“uncollectedfunds”orcomparablelanguage;and
• Theelectronicrepresentedcheckmustbedrawnonaconsumeraccount .
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YoumayhavetherighttocauseustoreverseanyineligibleorunauthorizedelectronicrepresentedcheckthatwechargedtoyourAccount .IfyouwanttoreverseanelectronicrepresentedcheckbecauseyouplacedastoppaymentonthepaperchecktowhichtheelectronicrepresentedcheckrelatesaftertheBankreturnedthepapercheckunpaidbutbeforeitwascollectedelectronically,youmustnotifySchwabwithin15daysafterwesendormakeavailabletoyoutheperiodicstatementthatreflectspaymentofthatelectronicrepresentedcheck .Ifyouwanttoreverseanelectronicrepresentedcheckforanyotherreason,youmustgiveSchwabanaffidavitwithin15daysafterwesendormakeavailabletoyoutheperiodicstatementthatreflectspaymentofthatelectronicrepresentedcheck .Inyouraffidavit,youmustdeclareandswearunderoaththattheelectronicrepresentedcheckwasineligibleorunauthorized .IfSchwabreceivesyournoticeoraffidavitwithinthe15-dayperiod,wewillrecredityouraccountwiththeamountofthecharge .WritetoSchwabat:CharlesSchwab&Co .,Inc .,SchwabOneDepartment,M .S .03-408,9601E .PanoramaCircle,Englewood,CO80112-3441 .
Ifyouwishtostoppaymentofanyelectronicrepre-sentedcheck,youmustfollowtheprocedurescon-tainedinthisAgreementforstoppingpaymentofchecks,nottheprocedurescontainedinthesectionforstoppingpaymentonElectronicFundTransfers .
24. Errors or Questions About Your Electronic Fund Transactions
Incaseyouthinkthatthereisanerrorinyourstate-mentaboutanElectronicFundTransfer,callustoll-freeassoonaspossibleat1-800-421-4488,MondaythroughFriday,10:00a .m .to7:00p .m .easterntime .OrwritetousatCharlesSchwab&Co .,Inc .,SchwabOneDepartment,M .S .03-408,9601E .PanoramaCircle,Englewood,CO80112-3441 .
Overseascustomerscancalluscollectat1-317-596-4502 .
Wemusthearfromyounolaterthan60calendardaysafterthedatewesentthefirststatementonwhichtheproblemorerrorappeared .Ifyoutellusorally,wemayrequireyoutosendusyourcomplaintorquestioninwritingwithin10BusinessDays .We’llneedthefollowinginformation:
• Yournameandaccountnumber,
• Adescriptionoftheerrorortransactionyou’reunsureabout,
• Aclearexplanationofwhyyoubelieveit’sanerrororwhyyouneedmoreinformation,and
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• Thedollaramountofthetransactionorsuspectederror .
Wewilltellyoutheresultsofourinvestigationwithin10BusinessDaysafterwehearfromyouandwillcorrectanyerrorpromptly .Ifweneedmoretime,however,wemaytakeupto45daystoinvestigateyourcomplaintorquestion .
IfyouareanewcustomerandtheerrororquestionconcernsanElectronicFundTransferthatoccurredwithin30daysafterthefirstdeposittotheSchwabOne®Accountwasmade,wewilltellyoutheresultsofourinvestigationwithin20BusinessDaysafterwehearfromyou .Ifweneedmoretime,wemaytakeupto90daystoinvestigate .
Inaddition,wemaytakeupto90daystoinvestigateiftheerrororquestionrelatestoanElectronicFundTransferthatwasinitiatedoutsidetheUnitedStates .
Ifwedecideweneedtheadditionaltimetoinvesti-gateyourcomplaintorquestion,wewillprovisionallycredityouraccountwithin10BusinessDays(or20BusinessDaysforerrorsorquestionsrelatingtotransactionsthatoccurredwithin30daysafterthefirstdeposittotheSchwabOne®Accountwasmade)fortheamountyouthinkisinerror,sothatyouwillhavetheuseofthemoneyduringthetimeittakesustocompleteourinvestigation .Ifweaskyoutoputyourcomplaintorquestioninwritingandwedonotreceiveitwithin10BusinessDays(or20BusinessDaysifapplicable),wemaynotcredityourAccount .
WewilltellyoutheresultswithinthreeBusinessDaysaftercompletingourinvestigation .Ifwedecidethattherewasnoerror,wewillsendyouawrittenexplana-tion .Youmayaskforcopiesofthedocumentsthatweusedinourinvestigation .
25. Use of Check Images and Substitute ChecksYouagreethatwemaydebityourAccountforacheckimageofanoriginalcheckpresentedforpaymentorcollection .Inthissituation,wemaydebityourAccountwithoutreceiptof,orreviewof,theoriginalcheckassociatedwiththecheckimage .Inoursolediscretion,wemayreturntoapresentingbank,return-ingbankorpayingbank,orcredittoyourAccount,apapercopyorpaperrepresentationofanoriginalcheck(includingwithoutlimitationanimagereplace-mentdocumentorIRD,oraphotocopy)drawnonorreturnedtoyourAccountthatdoesnototherwisemeetthetechnicalorlegalrequirementsforasubsti-tutecheck .
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YouagreethatacheckimagethatisreceivedorcreatedbytheBankinthecheckdeposit,collectionorreturnprocessshallbeconsidereda“check”and/oran“item”forallpurposesunderthisAgreementandapplicablelaw .
Inaddition,acheckthatyouwritemaybetruncatedinthecheckcollectionprocessandreplacedwithasubstitutecheck .Youauthorizeustopay,processorreturnasubstitutecheckinthesamemanneras“check”or“item”underthisAgreement .SubstitutechecksaregovernedundertheCheck21ActandthetermsofthisAgreement,totheextentnotmodifiedbytheCheck21Act .Notwithstandingtheforegoing,youunderstandthatyourchecksaredrawnonanomnibusaccountmaintainedbySchwabwiththeBank,andthatasaresult,youarenotconsidereda“consumer”asthattermisusedintheCheck21Act .
Youagreetoindemnifyandholdharmlessus,ouremployeesandagentsfromanyloss,claim,damageorexpensethatyouoranyotherpersonmayincurdirectlyorindirectlyasaresultofanyactiontakenbyustoprocessacheckimageorsubstitutecheckinsteadoftheoriginalcheck,includingthedestruc-tionoftheoriginalcheck,asdescribedabove,totheextentpermittedbyapplicablelaw .
26. Changes to These Rights and Responsibilities
Fromtimetotime,therightsandresponsibilitiesinconnectionwithElectronicFundTransfersorVisa®DebitCardorATMtransactionsmaychange .We’llnotifyyou,asrequiredbylaw,ofanychanges;how-ever,we’renotrequiredtonotifyyouinadvanceifthechangeisnecessaryforsecurityreasons .
27. Refusal to Honor ChecksNeitherwenortheBankisresponsibleforanyper-son’sactioninrefusingtohonororacceptyourchecksorforanyperson’sactionintakingposses-sionofyourchecks .
28. Wire Transfers and Automated Clearing House (ACH) Transfers
Sending Wire Transfers—Thefollowingprovisionsapplytowiretransfersyousendthroughus .Ifyouhaveaspecificagreementwithusforwiretransferservices,theseprovisionssupplementbutdon’tcontradictthatagreement .ThisSendingWireTransferssectiondoesnotapplytoAutomatedClearingHouse(ACH)systemfundstransferservicesorSchwabMoneyLink®services,whicharesubjecttoseparatetermsandconditions .
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Awiretransferistheprocessofcarryingoutpaymentordersthatleadtopayingabeneficiary .Thepaymentorderistheinstructionsyougiveusregardingawiretransfer .Thebeneficiaryisthepersonwhoreceivesthepayment .Thebeneficiarymaybeyouoranotherperson .
Wemaychargefeesforsendingawiretransfer .Forcurrentfees,call1-800-435-4000,orifyourAccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional®,call1-800-515-2157 .
Bysendingusapaymentorderinaformacceptabletous,youauthorizeustoactonyourbehalftoiniti-ateawiretransfer .Afterreceivingapaymentorderfromyoubytheapplicablecutofftime,wewillactonthepaymentorderbytransmittingpaymentinstruc-tionstotheapplicablebank .Wehavecutofftimesforprocessingpaymentorders .WemaytreatpaymentorderswereceiveafteracutofftimeasifreceivedthenextBusinessDay .Wetellyouourcutofftimesuponrequest .
Youwillindemnifyusagainstandholdusharmlessfromanddefendusagainstanylosses,claims,costs,expenses,damagesorliabilities(including,butnotlimitedto,attorneys’fees)arisingoutoforresultingfromanyactiontakenbyusinrelianceuponinstruc-tionsdeliveredtousinyournamethatweingoodfaithbelievetobegenuine .ThisobligationwillsurvivetheterminationofthisAgreement .
YoumustnotifyusatonceifyouthinkawiretransfershownonyourAccountstatementorothernoticeisincorrect .Ifyoufailtonotifyusinwritingwithin10calendardaysafterwesendormakeavailabletoyouthefirstnoticeorstatementonwhichtheproblemorerrorappears,youagreethatthestatementactivityandyourAccountbalancearecorrectforallpurposeswithrespecttothesetransfersandwaiveallclaimsagainstSchwabtorecoveranylossesresultingfromsaidunauthorizedorerroneoustransfer .
Wemayrejectpaymentorders .Anynoticeofrejection(whethergivenorally,electronicallyorinwriting)willbeeffectivewhengiven .Wearen’tliabletoyoufortherejectionorobligatedtopayyouinterestfortheperiodbeforeyoureceivethenoticeofrejection .Pursuanttogovernmentregulations,wemaybeunabletosendawiretransferyourequestedtocer-taincountriesortoindividualswhoarecitizensofthosecountries .YouagreethatSchwabisnotliableforanylossesifthisoccurs .
Youhavenorighttoamendorcancelapaymentorderafterwereceiveit .Ifyouaskustodothis,wemay
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makeareasonableefforttoactonyourrequest .Butwearen’tliabletoyouif,foranyreason,apaymentorderisn’tamendedorcanceled .Youagreetoreim-burseusforanycosts,lossesordamagesthatweincurinconnectionwithyourrequesttoamendorcancelapaymentorder .
Thebeneficiary’sbank(includinguswhenwearethebeneficiary’sbank)maymakepaymenttothebenefi-ciarybasedsolelyontheaccountorotheridentifyingnumber,evenifthenameonthepaymentorderdiffersfromthenameontheaccount .We,oranintermediarybank,maysendapaymentordertoanintermediarybankorbeneficiary’sbankbasedsolelyonthebankidentifyingnumber,evenifyouprovideuswithadifferentbankname .Neitherwenoranyotherbankhasadutytodeterminewhetherapaymentordercontainsaninconsistentnameandnumber .Thismeansthatyoumaynotrelyonthenameofthepersonorbankthatyouprovideustoensurepaymenttothecorrectperson .Andifthecorrectpersondoesn’treceivepayment,you’restillobligatedtopayustheamountofyourpaymentorder .
Wemayselectanyintermediarybank,fundstransfersystemormeansoftransmittaltosendyourpaymentorders .Ourselectionmaydifferfromthatindicatedinyourinstructions .
IfyourpaymentorderinvolvesacurrencyotherthanU .S .dollars,yourfundswillbeexchangedforsuchothercurrencyatthecurrentrateofexchangeaccord-ingtoourstandardprocedures .Currencyexchangeratesfluctuateovertimeandyouacknowledgeandaccepttherisksofsuchfluctuationsbetweenthetimeyousendusapaymentorderandthetimethewiretransferisfinal .
Receiving Transfers—Wemayreceiveinstructionstopayfundstoyouraccount .Thisincludeswiretransfers,transfersthatmaybesentthroughanACHsystemorprocesseddirectlytoanaccountwithus .Wemayreceivefundstransfersdirectlyfromthesender,throughafundstransfersystemsuchasanACHsystemorthroughsomeothercommunicationssystem .
ACH Provisional Payment RuleUnderACHrules,fundstransferssentthroughanACHsystemareprovisionalandmayberevokedpriortofinalsettlement .Youagreetotheserules .
IftheACHtransferisrevokedbeforefinalsettlementandwedon’treceivefinalsettlement,wemaychargeyourAccountforanyamountcredited .Thepersonwhosentthepaymentorderisconsiderednottohavepaidyou .Ifthishappens,wedon’tsendaseparate
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notice;wenotifyyouofthesecreditsandchargesonyourAccountstatement .
Wenotifyyouthatwe’vereceivedwiretransfersandACHtransfersbylistingthemonyourAccountstatement .
Liability—Ifwe’reobligatedtopayforlossofinterestthatresultsfromourerrorordelayregardingyourpaymentorder,wecalculatecompensationasfollows:WeusetherateapplicabletoyourAccount .
Innoeventwillwebeliableforanyspecial,indirectorconsequentialdamages(evenifwehavebeeninformedofthepossibilityofsuchdamages),including,withoutlimitation,lossofprofitsorrevenue,exceptasmayberequiredbyapplicablelaw .
Compliance with Rules and Laws—Youagreetocom-plywithapplicablepaymentsystemrules,includingtheOperatingRulesoftheNationalAutomatedClearingHouseAssociation(NACHA),andthelawsoftheUnitedStatesandanyotherapplicablelaw .
29. Receipt of Deposits and TransfersIfwereceiveadepositortransfertoyourAccountonadaythatisnotaBusinessDay,wemaynotcredityourAccountuntilthenextBusinessDay .Forpur-posesofthissection,“BusinessDay”meansMondaythroughFriday,exceptforU .S .stockexchangeholi-daysandbankholidays .Schwabassignsaholdonincomingforeignwirespreventingthemfrombeingmovedtoanotheraccountofinvestmentfortwodaysanddoesnotpayinterestonthefundsduringtheholdperiod .(SeeFloatDisclosureformoreinformation .)
30. Multiple SignersIfweestablishanaccountforyouwhichpurportstorequiretwoormoresignaturesonanyitemsdrawnontheaccount,youacknowledgethatsuchprovisionissolelyforyourpersonalorinternalcontrolpurposesandshallnotbebindingonus .WemaypayoutfundsfromyourAccountifthecheck,itemorotherwith-drawalinstructionissignedbyanyoneofthepersonsauthorizedtosignontheAccount .Wehavenoliabilitytoyouifwedoso .
31. Check LegendsSomecustomersorderchecksprintedwithlegendsornotations,suchas“notvalidafter60days”or“notvalidover$1,000 .”Wemayalsoreceivechecksonwhichrestrictionsorothernotationsarewritten .Wemaydisregardtheseinstructions .Wearen’tresponsibleforanylosses,claims,damagesorexpensesthatresultfromyourplacementoftheseorothernota-tionsonyourchecks,orfromourdisregardingthem .
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32. Demand DraftsIfyoudepositademanddraft(anunsigneddraft)intoyourAccount,youwarrantandguaranteethatsuchdraftisauthorizedbyyourpayor .
33. Stale-Dated ChecksIfastale-datedcheck—thatis,acheckdatedmorethansixmonthsinthepast—ispresentedforpay-mentagainstyourAccount,wemaypaythecheckandchargeittoyourAccount .Ifyoudon’twantustopayastale-datedcheck,youmustplaceastoppaymentorderonit .(Formoreinformation,seeSection15onStopPaymentOrders .)
34. Postdating OrdersIfyouwriteandpostdateacheck,wemaypayitandchargeittoyourAccountevenifit’spresentedforpaymentbeforeitsdate .Youmayaskusnottopayapostdatedcheckbeforeitsdateifthecheckhasn’talreadybeenpaid .Todoso,youmustplaceastoppaymentorderonit .(Formoreinformation,seeSection15onStopPaymentOrders .)
35. Check Processing OrderWemayaccept,pay,certifyorchargetotheindicatedaccountchecksandotheritemsinanyorderwechooseatourdiscretion .Wemayestablishdifferentprioritiesorcategoriesforchecksandotheritemsandprocesschecksandotheritemsaccordingtotheprioritiesweestablish .Asexamples,wemayprocesschecksintheorderwereceivethemattheprocess-ingcenter,inchecknumberorder,orindollaramountorder(eitherfromhighesttolowestdollaramountorfromlowesttohighestdollaramount) .Wemayalsousesomecombinationofthesemethods .Wemaychangetheorderthatweusetoprocesschecksandotheritemsatanytimewithoutnoticetoyou .
WhenyoudonothaveenoughavailablefundsinyourAccounttocoveralltheitemspresentedthatday,somemethodsmayresultinmoreinsufficientfundsfeesthanothermethods .Wemaychooseourpro-cessingmethodinoursolediscretion,regardlessofwhetheradditionalfeesmayresult .
36. Facsimile SignaturesIfyouchoosetouseafacsimilesignature,youmustprovideuswithaspecimenfacsimilesignatureofeachpersonauthorizedtodoso .You’reresponsibleforanywithdrawalfromyourAccountthatbearsorappearstoustobearyourfacsimilesignature,regard-lessofbywhomorbywhatmeansthesignaturewasplacedonthecheck .Ifyouchoosetouseafacsimile
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signature,you’reresponsibleevenifyouhavenotpresenteduswithaspecimenfacsimilesignature,orifthesize,colororstyleofthecheck,orthesize,colororstyleofthefacsimilesignatureisdifferentfromthatofthecheckorfacsimilesignatureyouuse .Wemaypaythewithdrawalandchargeyouraccountforit .Youagreetocompensateusforalllosses,claims,damagesorexpenses,includingreasonableattorneys’fees,thatresultfromourpaymentofawithdrawalbearingafacsimilethatresemblesyourfacsimilesignature .
Brokerage Services
1. Provision of ServicesToopenaSchwabOne®Account,youcompleteanaccountapplication .Whenweapproveyourapplica-tionandsubjectittocreditverification,wewillopenaSchwabOne®AccountforyouandactasyourbrokertopurchaseandsellsecuritiesforyourAccountandonyourinstructions .Whentransferringassetsfromanotherfirm,beadvisedthatwewillnotacceptorhonoranyoralorwritteninstructionsfromyoutopurchaseorsellsecuritiespriortoouractualreceiptofyourassetsandthecompletionofthetransferprocess .Youmayinitiateordersrelatingtothetrans-ferredcashand/orsecuritiesonlyafterthetransferprocesshasbeencompletedandtheassetshavebeenreceivedbySchwab .
Wemayextendcredittoyouinaccordancewithappli-cablelawsandregulationsandourDisclosureofCreditTermsandPolicies .Youagreetousethiscreditprimarilyforbusinessandinvestmentpurposes .
2. Disclosure of Credit Terms and PoliciesAllmargintransactionsaresubjecttoourDisclosureofCreditTermsandPolicies .YouagreenottoenteranorderforamargintransactionuntilyouhavereadandunderstoodtheDisclosureofCreditTermsandPolicies .
3. Commissions and FeesYouagreetopayourcommissionsandtransaction,processingandotherfeesastheyexistfromtimetotimeandapplytoyourtransactionsandservicesyoureceive .Schwab’sfailuretodeductfeesfromyourAccountatthetimeyouincurthosefeesdoesnotwaiveSchwab’srighttodeductthosefeesfromyourAccountatalatertime .SchwabmayacceptcustodyofcertainassetsnotnormallyavailablethroughSchwab;wewillchargefeesforthisservice .Youagreetopayallapplicablestateandlocalexcisetaxes .
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Schwabdoesnotchargetransactionfeesonpur-chasesandredemptionsofsharesofcertainregis-teredinvestmentcompanies,includingthoseparticipatingintheMutualFundOneSource®programandothersthatdonotparticipateinMutualFundOneSource®butthataresoldwithouttransactionfees,exceptasdescribedinthefollowingparagraph .Schwabisabletoeffectthesetransactionswithoutchargingatransactionfeebecausewereceiveremu-nerationfromtheregisteredinvestmentcompanyand/oritsaffiliateforservicesrenderedbySchwabinconnectionwiththeseshares .TheremunerationisbasedontheaggregatenetassetvalueofthesesharesheldinSchwabcustomers’accounts .
Furtherinformationwillbefurnisheduponrequest .
Schwabmaychargetransactionfeesundercertaincircumstancesforwhichthecustomerhasbeenorwillbenotified,including,butnotlimitedto,Schwab’sshort-termredemptionpolicy,asineffectfromtimetotime .
4. Rules and RegulationsYourSchwabOne®Accountandanytransactionsyoumakearesubjecttoourhousetradingrulesandpoliciesandthefollowingrules,regulationsandpoli-cies,allasmodifiedoramendedfromtimetotime:
• Applicablerules,regulations,customsandusageofanyexchange,market,clearinghouseorself-regulatoryorganization;and
• Applicablefederalandstatelaws,rules,regulationsandtreaties .
5. Use of AccountYoumaynotuseyouraccountoranyaccount-relatedservicetoprocessgamblingtransactions,ortoconductanyotheractivity,thatwouldviolateapplicablelaw .Ifweareuncertainregardingthelegalityofanytransac-tion,wemayrefusethetransactionorfreezetheamountinquestionwhileweinvestigatethematter .
6. Payment, Equity Deposit, Settlement and Liquidation
Youagreetopayforalltransactionsyoumakeandallauthorizedtransactionsinyouraccount .Whenyoupurchasesecuritiesonacashbasis,youagreetopayforthesecuritiesbysettlementday .UnlessyoumakeotherarrangementswithyourlocalSchwaboffice,wemayuseavailablefundsinyourSchwabOne®Accounttosettleatransaction .
Wemayrequireanequitydepositorafullpaymentbeforeweacceptyourorder .Whenyousell“long”
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securities,youmustownthesecuritieswhenyouplacetheorder .Youalsoagreetomakegooddeliveryofthesecuritiesyouaresellingbysettlementday .
Ifyoudonotmakegooddeliveryofyoursecuritieswhenmakingasale,orifyoudonottenderthetotalpurchasepricewhenmakingapurchase,wemaytakeappropriatestepstocomplete,cancelorliquidatethetransaction .Thismayincludepurchasingorborrowingthesecuritiesnecessarytomakethedelivery .Failuretomakegooddeliveryincludesthedepositofsecuri-tiesbyyouwhicharelaterfoundtoberestricted,canceled,reportedlostorstolen,escheatedorother-wisenotfreelytransferable .
Youareresponsibleforalldebits,costs,commissionsandlossesarisingfromanyactionswemusttaketoliquidateorclosetransactionsinyourSchwabOne®Account,orfromyourfailuretomaketimelygooddeliveryofsecurities .Ifyouknoworsuspectthatyouhavereceivedanoverpaymentoffundsorsecurities,orifyouknoworsuspectthatSchwabhasnotyetcollectedfromyourAccountafeeyouhaveincurred,youagreetonotifySchwab,inwriting,assoonasyoulearnoftheoverpaymentoruncollectedfee .Youfurtheragreenottoremovetheoverpaymentoffundsorsecuritiesortheuncollectedfeefromtheaccount,ortoreturntheentireoverpaymentoruncollectedfeetoSchwabifithasalreadybeenremovedfromyourAccount .YouagreethatyouarerequiredtoreturnthefullamountoftheoverpaymentoruncollectedfeetoSchwab,notwithstandinganyoralrepresentationsmadebyanySchwabrepresentativetothecontrary .Ifyoufailtodoso,youwillbecomeliabletoSchwabnotonlyfortheamountoftheoverpaymentoruncol-lectedfee,butalsofortheinterestandexpensesassociatedwithitsrecovery .
WemaytransferSecuritiesandOtherPropertyfromanynon-retirementbrokerageaccountinwhichyouhaveaninteresttoanyothernon-retirementbroker-ageaccountinwhichyouhaveaninterest,regardlessofwhetherthereareotheraccountholdersoneitheraccount,inordertosatisfydeficienciesinanysuchaccountorifwethinkyourobligationsinanysuchaccountarenotadequatelysecured .
Forourprotectionagainstcreditrisksandothercondi-tions,wemay,withoutpriornotice,decline,cancelorreverseyourordersorinstructions,orwemayplacetrading,disbursementandotherrestrictionsonyouraccount .
Ifweholdforyoubondsorpreferredstockinstreetnameorbearerformthatarecallableinpart,youagreetoparticipateinanimpartiallotteryallocation
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systemofthecalledsecurities,accordingtotherulesoftheFinancialIndustryRegulatoryAuthority .
YouareresponsibleforpaymentofallfeeschargedtoyourAccountfromtimetotime .YouagreethatSchwabmayliquidatesecuritiesheldinyourAccounttocoversuchfeesorotherindebtednessintheeventthattherearenoavailablefundsinyourAccount .Youfurtheragreetoberesponsibleforallcostsandcommissionsrelatedtosuchliquidations .Inaddition,youagreethatSchwabshallbeentitledtoapplyanydividends,capitalgainspayments,interestpaymentsorotherincomingfunds,suchasfundsthatwouldotherwisebeinvestedthroughtheAutomaticInvestmentPlanordividendreinvestment,tocoverfeesorotherindebtednesstoSchwab .
7. Payment of IndebtednessYouagreetomakepaymentofanyindebtednessrelatedtoyourSchwabOne®Account,including,butnotlimitedto,anysuchindebtednessthatresultsfrominstructionsprovidedtoSchwabbyyou,youragentoranyattorney-in-factunderapowerofattorneyorInvestmentAdvisorauthorizedtomaketransac-tionsinyourSchwabOne®Account .Wemayelectanytime,withorwithoutnotice,tomakeanydebitbalanceorotherobligationrelatedtoyourAccountimmediatelydueandpayable .Wemayreportanypastdueaccounttoaconsumerand/orsecuritiescreditreportingagency .WemayalsoreferyourAccounttoacollectionagency .
8. Security for IndebtednessNote:ThissectiondoesnotapplytoanytaxqualifiedaccountssubjecttotheprohibitedtransactionrulesoftheInternalRevenueCodeorERISA,oranyindebt-ednessarisingtherefrom .
AssecurityfortherepaymentofallpresentorfutureindebtednessowedtousbyanyaccountholderundertheSchwabOne®AccountAgreementorotherwise,eachaccountholdergrantstousacontinuingsecu-rityinterestinandlienon,andarightofsetoffwithrespectto,allSecuritiesandOtherPropertythatare,noworinthefuture,held,carriedormaintainedforanypurposeinorthroughtheSchwabOne®Account,and,totheextentofsuchaccountholder’sinterestinorthrough,anypresentorfutureaccountwithusinwhichtheaccountholderhasaninterest .
IfyouowemoneytoSchwabastheresultofactivityinyourAccountandthereareassetsavailableinanyaccountthatyouholdatSchwabwhichcouldfullyorpartiallysatisfythedebt,youagreethatupon
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Schwab’swrittendemand,youwillexecutealldocu-mentsnecessarytoeffectadistributionfromyouraccountandagreetopayorcausesuchfundstobepaidimmediatelytoSchwabinordertosatisfyyourindebtednesstoSchwab .
9. Short SalesYouagreetodesignateasellorderasa“shortsale”if,atthetimeyouplacetheorder,youeitherdonotownthesecuritybeingsoldorareunabletodeliverthesecurityinatimelymanner .Youagreethatshortsaletransactionsaresubjecttocertainregulatoryrulesandcannotbeexecutedundercertainmarketconditions .Inaddition,dependingonmarketcondi-tions,Schwabcannotguaranteethatitwillhavesharesavailabletofacilitateashortsale .
Youagreethatwemay,atourdiscretionandwithoutnotice,“buyin”securitiestocoveranyshortsecuritypositioninyouraccount .Wemaytakethisactioneitheronaregularsettlement,cashornext-dayset-tlementbasis .
Ifyouareunabletocoverashortsecurityposition(eitherthroughdeliveryofthesecurityorthroughour“buyingin”thesecurity)inenoughtimesothatwecandeliverthesecuritytothelender(towhomweareobligated),youagreetoreimburseusforthelosseswesustainasaresultofyourfailuretodeliverthesecurity .
10. Interest on Debit BalancesWewillchargeinterestonyourdebitbalanceaccord-ingtoourDisclosureofCreditTermsandPolicies .WepostaccruedbutunpaidinterestchargestoyourAccounteachmonth .WecompoundtheinterestasdescribedinourDisclosureofCreditTermsandPolicies .WemayalsochargeinterestondebitbalancesinyourCashAccountasdescribedintheDisclosureofCreditTermsandPolicies(seeSection2) .
11. Pledge of Securities and Other PropertyWemaypledge,re-pledge,hypothecateorre-hypothecate,eitherseparatelyortogetherwithSecuritiesofothercustomers,allSecuritiesandOtherPropertythatyou,noworinthefuture,carry,holdormaintaininyourMarginandShortAccount .ThevalueoftheSecuritiesandOtherPropertywepledgeorre-pledgemaybegreaterthantheamountyouoweus,andwearenotobligatedtoretaininourpossessionandcontrolfordeliverythesameamountofsimilarSecuritiesandOtherProperty .
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12. Loan ConsentYouagreethatSecuritiesandOtherPropertyheldinyourMarginAccount,noworinthefuture,maybeborrowed(eitherseparatelyortogetherwiththeprop-ertyofothers)byus(actingasprincipal)orbyothers .SchwabmayplaceanysecurityheldinyourAccountintotheMarginAccountportionofyourAccount .YouagreethatSchwabmayreceiveandretaincertainbenefits(including,butnotlimitedto,interestoncollateralpostedforsuchloans)towhichyouwillnotbeentitled .Youacknowledgethatincertaincircum-stances,suchborrowingscouldlimityourabilitytoexercisevotingrightsorreceivedividends,inwholeorinpart,withrespecttotheSecuritiesandOtherPropertylent .YouunderstandthatforSecuritiesandOtherPropertythatarelentbySchwab,thedividendspaidonsuchSecuritiesandOtherPropertywillgototheborrower .Nocompensationorotherreimburse-mentswillbeduetoyouinconnectionwithsuchborrowings .However,ifyouareallocatedasubstitutepaymentinlieuofdividends,youunderstandthatsuchapaymentmaynotbeentitledtothesametaxtreatmentasmayhavebeenappliedtothereceiptofadividend .YouagreethatSchwabisnotrequiredtocompensateyouforanydifferentialtaxtreatmentbetweendividendsandpaymentsinlieuofdividends .Schwabmayallocatepaymentsinlieuofdividendsbyanymechanismpermittedbylaw,includingbyusingalotteryallocationsystem .
13. LiquidationWheneveritisnecessaryforourprotectionortosatisfyamargindeficiency,debitorotherobligationowedus,wemay(butarenotrequiredto)sell,assignanddeliveralloranypartoftheSecuritiesandOtherPropertysecuringyourobligations,orcloseanyoralltransactionsinyourSchwabOne®Account .
Itisourpolicytoattempttocontactyou,whenpracti-cable,beforetakinganyactiondescribedinthissection;however,wereservetherighttotakeanysuchactionwithoutpriornoticeordemandforadditionalcollateralandfreeofanyrightofredemption .Anypriordemand,callornoticewillnotbeconsideredawaiverofourrighttosellorbuywithoutdemand,callornotice .
WemaychoosewhichSecuritiesorOtherPropertytobuyorsell,whichtransactionstocloseandthesequenceandtimingofliquidation .Wemaytakesuchactionsonwhateverexchangeormarketandinwhat-evermanner(includingpublicauctionorprivatesale)thatwechooseintheexerciseofourbusinessjudg-ment .YouagreenottoholdusliableforthechoiceofwhichSecuritiesorOtherPropertytobuyorsellorof
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whichtransactionstocloseorfortimingormannerofliquidation .
Incertaincircumstanceswemay,atoursolediscre-tion,liquidateyourentiremarginloanbalancetosatisfyamargincall .Youagreenottoholdusliablefortakingsuchaction .
WemaytransferSecuritiesandOtherPropertyfromanynon-retirementbrokerageaccountinwhichyouhaveaninteresttoanyothernon-retirementbroker-ageaccountinwhichyouhaveaninterestregardlessofwhetherthereareotheraccountholdersoneitheraccount,ifwedeterminethatyourobligationsarenotadequatelysecuredortosatisfyamargindeficiencyorotherobligation .Youagreetopayondemandanyaccountdeficienciesafterliquidation,whetherliquida-tioniscompleteorpartial .
Weareentitledtoexercisetherightsdescribedinthissectionatoursolediscretion,includingwheneveranyofthefollowingoccurs:
• TheequityinyourAccountfallsbelowrequiredminimums;
• Sufficientfundsorsecuritiesarenotdepositedtopayfortransactionsintheaccount;
• Apetitionforbankruptcyorfortheappointmentofareceiverisfiledbyoragainstyou;
• Anattachmentisleviedagainstanyofyourbroker-ageaccountswithus;
• Youdieorbecomeincapacitatedorincompetent;or
• YourSchwabOne®Accountisclosed .
14. RemittanceIfacheckorotheritemyouremittousisreturnedunpaid,wewillchargeafeetoyourSchwabOne®Account .Forourprotection,wemayrestrictyourabilitytodrawonfundsrepresentedbyacheckortoapplysuchfundstosettleasecuritiestransaction,asprovidedinSection7oftheSchwabOne®Servicesportionofthispublication .
15. Your Responsibility Concerning the Sale of Control or Restricted Securities
Beforeinstructingustosellsecuritiesthatare:
• “Restrictedsecurities”orsecuritiesofanissuerofwhichyouarean“affiliate”(asthosetermsaredefinedinRule144undertheSecuritiesActof1933);or
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• SecuritiesthatarebeingsoldinrelianceonRule701or145(d)undersaidAct;or
• Securitiesofwhichyouandtheissueroritsunder-writerhaveenteredintoanagreementrestrictingthetransferabilityofsuchsecurities;
Youagreetotellusthestatusofyourrestricted/controlsecurities,includinganyrestrictions(includingcontractuallock-uporblackoutrestrictions)onyourabilitytosellsuchsecurities,andtofurnishpromptlywhateverinformationanddocumentsweneedtocomplywithourregulatoryduties .Youacknowledgethatfurnishingthenecessaryinformationanddocu-mentstoSchwabdoesnotconstituteanordertosellyourrestricted/controlsecurities,andthatyoumustplaceaseparateordertosellbytelephoneorusingtheElectronicServices .Youagreethatyouareresponsibleforallcosts,includingthecosttorepur-chasestock,ifyousellstockthatislaterfoundtoberestrictedornontransferable .Youfurtheracknowledgethatproceedsfromthesaleofyourrestricted/controlsecuritiesmaynotbemadeavailabletoyouforwith-drawalortradingpurposesuntilSchwabreceiveswhatit,initssoleopinion,considerstobeadequateverificationthatyourrestricted/controlshareshavebeentransferredorclearedfortransfer .
Becauserestricted/controlsecuritiestransactionsrequirespecialhandlingbybothSchwabandthirdpar-ties,processingyourtransactionmayrequireseveralweeks,duringwhichtimethepriceofyoursecuritiesmayfluctuate .YouagreenottoholdSchwabrespon-sibleformarketfluctuationsthatmayoccurtothemarketpriceofyoursecuritieswhileyourtransactionisprocessed .YoufurtheragreenottoholdSchwabliablefordelaysinthesale(orsettlementofsuchsale)ofyourrestricted/controlsecuritiesresultingfromthefailureofissuer’scounseltoissueorapproveanynecessarylegalopinion,thefailureofthetransferagenttoprocessyourshares,oranyotheractionorfailuretoactofathirdparty .
Youagreenottotenderrestricted/controlsecuritiesascollateralforanobligationyouoweus,unlessyoufirstobtainourpriorwrittenapproval .
16. Your Responsibility for Understanding Terms of Securities
Certainsecuritiesmayimpartvaluablerightsthatexpireunlessyoutakesomeaction .Forexample:
• Warrantsandstockpurchaserightstypicallymaybeexercisedonlyonorbeforeaspecifiedexpirationdate;
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• Someconvertibleredeemablesecuritieswillberedeemedautomaticallyunlessyouexerciseyourconversionrightsbeforeaspecifiedredemptiondate;
• Somebondsmayberedeemed,attheholder’soption,onlyduringspecifiedperiods;or
• Somesecuritiesmaybecomethesubjectoftenderorexchangeoffers,whicharelimitedintime .
Youareresponsibleforknowingtherightsandtermsofyoursecurities,andfortakingactiontorealizethevalueofyoursecurities .However,if:
• Anysuchsecurityisabouttoexpireworthless;beredeemed,exchanged,converted,tenderedorexercised;orremainatavaluesignificantlylessthanthevalueyouwouldhavereceivedifyouhadgivenusspecificinstructions;and
• Wehavenotreceivedinstructionsfromyou;wemay,atourdiscretion,but are not obligated to,sell,redeem,exchange,tender,convertorexercisethesecurityforyourAccount .Youwillbechargedabrokeragecommissionand/orfeeforanysuchtransaction .
Note: Although we may take the actions described above, we are not obligated to do so or to notify you of impending expiration or redemption dates. You agree not to hold Schwab liable for any decrease in the value of your securities or other losses resulting from your failure to give Schwab instructions on how to respond to a tender offer, exchange offer or other offer or transaction.
17. Accuracy of Account InformationYourepresentandwarrantthat:
• Youhaveattainedtheageofmajority .
• YouhavesuppliedaccurateinformationinyourSchwabOne®AccountApplication .
• NooneexcepttheaccountholderslistedontheSchwabOne®AccountApplication(and,ifcommu-nitypropertyisheld,theaccountholders’spouses)hasaninterestintheSchwabOne®Account .
Inaddition,youagreetonotifyuspromptlyinwritingofanyimportantchangeintheinformationyousupplyusontheSchwabOne®AccountApplication .Inpar-ticular,youagreetonotifyus:
• Ifyouareorbecomeadirector,10%beneficialshareholder,policy-makingofficerorotherwisean“affiliate”(asdefinedinRule144undertheSecuritiesActof1933)ofapubliclytradedcompany;or
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• Ifyouareorbecomeaffiliatedwithoremployedbyasecuritiesexchange,orcorporationcontrolledbyasecuritiesexchangeoramemberofasecuritiesexchangeorasecuritiesassociation;or
• Iftherearesignificantchangestothenetworth,incomeleveloremploymentstatusyoulistedontheAccountApplication .
18. Custodial AccountsIftheAccountisopenedundereithertheUniformGiftstoMinorsActortheUniformTransferstoMinorsAct(UGMAorUTMA),theCustodianrepresentsthatallassetsintheAccountbelongtothebeneficiaryandthattheCustodianwillonlyusetheassetsforthebeneficiary’sbenefit .TheCustodianagreestotransferanddelivertothebeneficiaryallsecuritiesandotherpropertyheldintheAccountpromptlyuponthebeneficiaryattainingtheagespecifiedbythegoverningstatelawforterminationofthecustodianship .Theageofcustodianshipterminationvariesbystate,althoughmanystatessetthemaximumagefortermi-nationat21 .Ifyoudonotindicateaterminationage,theAccountwillbesetupusingthedefaultageforterminationintheCustodian’sstateofresidence .Iftheterminationageselectedisdifferentfromthestate’sdefaultage,theCustodianagreesandacknowledgesthathe(she)isresponsibleunderUGMAorUTMAfordeterminingtheproperterminationageandthatSchwabisnotresponsiblefordoingso .Ifyouhavequestionsabouttheterminationage,pleaseconsultyourlegalortaxadviser .Upontheterminationofthecustodianship,theCustodianagreestoprovideSchwab,uponrequest,withthebeneficiary’saddress,phonenumberandanyotherinformationthatmayassistSchwabincontactingthebeneficiary .TheCustodianinstructsSchwab,withoutfurthernoticeorinstructionfromtheCustodian,toregistertheAccountintothebeneficiary’snameassoonascommerciallypracticableaftertheterminationofthecustodianship .Inaddition,theCustodianacknowledgesthatSchwabmayrestricttheCustodian’saccesstotheAccountuponterminationofthecustodianship .Accountswithlessthan$100incash30dayspriortotheterminationofthecustodianshipwillbeclosedandacheckforthevalueoftheAccountwillbemailedtotheCustodian .ThecheckwillbemadepayabletotheCustodianforthebenefitoftheBeneficiary .
19. Joint or Multiple Party AccountsIfthereismorethanoneaccountholder,eachaccountholderisjointlyandseverallyliableforobliga-tionsarisingundertheSchwabOne®AccountAgreementorrelatingtotheSchwabOne®Account .
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Eachjointaccountholderhasauthority,actingindi-viduallyandwithoutnoticetoanyotheraccountholder,todealwithusasfullyandcompletelyasiftheaccountholderisthesoleaccountholder .Weareauthorizedtofollowtheinstructionsofanyjointaccountholderandtodeliverfunds,securitiesorotherassetsintheSchwabOne®Accounttoanyjointaccountholderoruponanyaccountholder’sinstruc-tions .Wearenotresponsiblefordeterminingthepurposeorproprietyofaninstructionwereceivefromanyaccountholderorforthedispositionofpaymentsordeliveriesamongjointaccountholders .
Wereservetherighttorequirewritteninstructionsfromallaccountholders,atoursolediscretion .Wereservetheright,butarenotobligated,toplacetrading,disbursementandotherrestrictionsonanaccountintheeventwereceivenoticeofadisputeamong,orconflictinginstructionsfrom,jointaccountholders .
Anynoticewesendtooneaccountholderwillbenoticetoallaccountholders .
Note: The following section applies to Schwab One® customers who opened their Schwab One® Account after October 15, 1998:
20. Account ConversionIfmySchwabOne®AccountisconvertedintoanotheraccountatSchwab,whetherbyclosingmySchwabOne®Accountandopeninganotheraccountorother-wise,Iagreetoreadandbeboundbythetermsoftheagreementgoverningthatotheraccountascurrentlyineffectatthetimeofconversionandasamendedthereafterfromtimetotime .IunderstandthataccounttermsforsuchotheraccountatSchwab,includingaccountfees,otherfeesandcharges,moneymarketsweepfeatures,interestratesandreturnsoncashmaybedifferentandeithermoreorlessbeneficialthancomparabletermsformySchwabOne®Account .IfIdonotreceiveorunderstandtheagreementgov-erningtheaccountintowhichmySchwabOne®Accountisconverted,IwillnotifySchwab .
21. TerminationYoumaycloseyourSchwabOne®AccountanytimebygivingusnoticeandbyceasingtowritechecksandusingtheVisa®card .WemayinoursolediscretioncloseyourAccountorterminateanyorallservicesrenderedundertheSchwabOne®AccountAgreementanytimeandforanyreason .Closinganaccountorterminatingserviceswillnotaffectyourobligationsincurredpriortoclosureortermination,includingthe
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obligationtopayVisa®transactions,checksorothercharges .
Upontermination,youmustdestroyallVisa®DebitCardsandunusedchecks,andwemayholdyourfundsorsecuritiesuntilyouhavenotifiedusinwritingthatallVisa®cardsandchecksaredestroyed .Subjecttotheprecedingprovisionsofthissection,thebalanceofyourAccount,minustheamountofanyoutstandingVisa®authorizationsandinterestcharges,maybepickedupatyourlocalSchwabofficeormailedtoyou(securitieswillbemailed) .Fundsheldtocoverout-standingauthorizedVisa®transactions,minusanydebitsresultingfromsuchtransactions,willbemailedtoyou10BusinessDaysafteryourAccountisclosed .
22. Approval of Application, Credit Verification and Account Information
Bysubmittinganaccountapplication,youauthorizeusto:
• Verifyyouridentity,creditworthinessandotherinfor-mation(andyourspouse’sifyouliveinacommunity-propertystate) .Toobtainverification,wemaycontactyouremployer(andyourspouse’s,ifapplicable),obtainconsumerandcreditreportsandmakeotherinquiries,butwearenotobligatedtodoso .
• ProvideinformationaboutyouandyourAccounttoconsumerandcreditreportingagenciesandcollec-tionagencies .
YoufurtherauthorizeSchwabtoobtaincopiesofyourconsumerandcreditreportsatitsdiscretion,atanytime,forreasonsincluding,butnotlimitedto,thefollowing:
• TocollectadebitbalanceinyourAccount;
• Toinvestigate,detectandpreventfraudinvolvingyouoryourAccount;
• Tohelpusevaluatewhethertogrant,extendormodifythetermsandconditionsofanycredityouhaveappliedfororreceived;
• IfadepositoffundsorsecuritiestoyourAccountisreturned .
WemaydenyyourapplicationtoopenanaccountormaydeclinetoofferyoucertainservicesavailableundertheAccountAgreementinoursolediscretionforanyreason .
23. Governing LawThisAgreement,andallfutureagreementsyoushallenterintowithSchwab,unlessotherwiseindicatedon
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suchotheragreements,shallbegovernedbythelaw(butnotthechoiceoflawdoctrines)ofthestateofCalifornia .ThisisthecaseregardlessofwhetheryouresideortransactbusinesswithSchwabinCaliforniaorelsewhere,exceptthatthesectionentitled“Arbitration”shallbegovernedbytheFederalArbitrationAct .
24. AssignmentWemayassignourrightsandobligationsundertheAccountAgreement,ormayassignanyloansthatwehavemadetoyou(includingthesecurityinterestssecuringsuchloans),toanysubsidiary,affiliateorsuccessorbymergerorconsolidationwithoutnoticetoyou,ortoanyotherentityafter30days’writtennoticetoyou .Ifanyloanswehavemadetoyouareassigned,youagreethatwemaycomplywithanyentitlementordersoriginatedbytheassigneewithrespecttothecollateralforsuchloanswithoutanyfurtherconsentfromyou .IftheBankassignsitsrightsanddutiestootherthanasubsidiaryoraffili-ate,youwillreturnordestroychecks,andreplace-mentcheckswillbeissued .TheSchwabOne®AccountAgreementisbindinguponyourandourheirs,executors,administrators,successorsandassigns,anditwillbenefityour,ourandtheBank’ssuccessorsandassigns,ifany .
25. ArbitrationRequired Arbitration Disclosures. Regulatory authori-ties require that any brokerage agreement containing a predispute arbitration agreement must disclose that this agreement contains a predispute arbitration clause. This Agreement contains a predispute arbitra-tion clause. By signing an arbitration agreement, the parties agree as follows:
• AllpartiestothisAgreementaregivinguptherightto sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
• Arbitrationawardsaregenerallyfinalandbinding;aparty’s ability to have a court reverse or modify an arbitration award is very limited.
• Theabilityofthepartiestoobtaindocuments,wit-ness statements and other discovery is generally more limited in arbitration than in court proceedings.
• Thearbitratorsdonothavetoexplainthereason(s)for their award unless, in an eligible case, a joint request for an explained decision has been submit-ted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
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• Thepanelofarbitratorswilltypicallyinclude a minority of arbitrators who were or are affiliated with the securities industry.
• Therulesofsomearbitrationforumsmayimposetime limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
• Therulesofthearbitrationforuminwhichtheclaimis filed, and any amendments thereto, shall be incor-porated into this Agreement.
No person shall bring a putative or certified class action to arbitration, nor seek to enforce any predis-pute arbitration agreement against any person who hasinitiatedincourtaputativeclassaction;orwhoisa member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until:
1. theclasscertificationisdenied;
2. theclassisdecertified;or
3. the customer is excluded from the class by the court.
Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.
Arbitration Agreement. Any controversy or claim arisingoutoforrelatingto(i)thisAgreement,anyother agreement with Schwab, an instruction or autho-rization provided to Schwab or the breach of any such agreements,instructions,orauthorizations;(ii)theAccount,anyotherSchwabaccountorServices; (iii)transactionsintheAccountoranyotherSchwabaccount;(iv)orinanywayarisingfromtherelationshipwith Schwab, its parent, subsidiaries, affiliates, offi-cers, directors, employees, agents or service providers (“RelatedThirdParties”),includinganycontroversyover the arbitrability of a dispute, will be settled by arbitration.
This arbitration agreement will be binding upon and inure to the benefit of the parties hereto and their respective representatives, attorneys-in-fact, heirs, successors, assigns and any other persons having or claiming to have a legal or beneficial interest in the Account, including court-appointed trustees and receiv-ers. This arbitration agreement will also inure to the benefit of third-party service providers that assist SchwabinprovidingServices(“Third-PartyServiceProviders”)andsuchThird-PartyServiceProvidersaredeemed to be third-party beneficiaries of this arbitra-tion agreement.
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The parties agree that this arbitration agreement will apply even if the application to open the Account is denied and will survive the closure of your Account and/or the termination of services rendered under this Agreement.
Such arbitration will be conducted by, and according to the securities arbitration rules and regulations then in effect of, the Financial Industry Regulatory Authority (FINRA)oranynationalsecuritiesexchangethatprovidesa forum for the arbitration of disputes, provided that Schwab is a member of such national securities exchange at the time the arbitration is initiated. Any party may initiate arbitration by filing a written claim with FINRA or such eligible national securities exchange. If arbitration before FINRA or an eligible national securities exchange is unavailable or impossible for any reason, then such arbitration will be conducted by, and according to the rules and regulations then in effect of, the American ArbitrationAssociation(AAA).IfarbitrationbeforetheAAA is unavailable or impossible for any reason, the parties agree to have a court of competent jurisdiction appointthree(3)arbitratorstoresolveanyandalldisputes or controversies between or among the par-ties. Each party shall bear its own initial arbitration costs, which are determined by the rules and regula-tions of the arbitration forum. In the event of financial hardship, the arbitration forum may waive certain costs in accordance with such rules. At the conclusion of the hearing, the arbitrators will decide how to assess the costs of the arbitration among the parties.
Any award the arbitrator makes shall be final and binding, and judgment on it may be entered in any court having jurisdiction. This arbitration agreement shall be enforced and interpreted exclusively in accor-dance with applicable federal laws of the United States, including the Federal Arbitration Act. Any costs, fees or taxes involved in enforcing the award shall be fully assessed against and paid by the party resisting enforcement of said award.
For FINRA arbitrations, FINRA will appoint a single public arbitrator in customer cases decided by one arbitrator. In customer cases decided by three arbitra-tors, investors have the option of choosing an arbitra-tion panel with two public arbitrators and one non-publicarbitrator(Majority-PublicPanelRule)orapanelofallpublicarbitrators(OptionalAll-PublicPanelRule).Ifthecustomerdeclinestoelectapanelselec-tion method in writing by the applicable deadline, the Majority-Public Panel Rule for selecting arbitrators will apply.
All notices from one party to the other involving arbi-tration shall be considered to have been fully given
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when so served, mailed by first-class, certified or registered mail, or otherwise given by other commer-cially accepted medium of written notification.
In addition to the above provisions, if a party to this Agreement is or becomes a non-U.S. resident at the time of any controversy subject to this arbitration agreement, such party acknowledges and agrees to the following additional provisions:
(1)Therulesoftheorganizationadministeringthearbitration specifically provide for the formal desig-nation of the place at which the arbitration is to be held.
(2)EnteringintothisAgreementconstitutesconsenttosubmit to the personal jurisdiction of the courts of the state of California, U.S.A., to interpret or enforce any or all of these arbitration provisions. Judgment on any arbitration award may be entered in any court having jurisdiction, or application may be made to such court for judicial acceptance of the award and an order of enforcement, as the case may be.
(3)Theexclusivelanguagetobeusedbythepartiesandthe arbitrators in the arbitration proceedings shall be English. Any party wishing an interpreter shall make all arrangements directly with the interpreter and shall assume all costs of the service.
(4) Ifapartyisaforeigngovernmentorstate,state-owned or state-operated enterprise or other instru-mentality of a foreign government or state, such party waives all rights of sovereign immunity and neither the Federal Act of State doctrine nor the doctrine of sovereign immunity shall apply insofar as any enforcement in courts located in the U.S.A. is concerned.
Waiver of Class Action or Representative Action. Neither you nor Schwab shall be entitled to arbitrate any claims as a class action or representative action, andthearbitrator(s)shallhavenoauthoritytoconsoli-date more than one parties’ claims or to proceed on a representative or class action basis.
You and Schwab agree that any actions between us and/or Related Third Parties shall be brought solely in our individual capacities. You and Schwab hereby waive any right to bring a class action, or any type of representative action against each other or any Related Third Parties in court. You and Schwab waive any right to participate as a class member, or in any other capacity, in any class action or representative action brought by any other person, entity or agency against Schwab or you.
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26. Losses Due to Extraordinary EventsWearenotresponsibleandyouagreenottoholdusliableforlossescauseddirectlyorindirectlybycondi-tionsbeyondourcontrol,including,butnotlimitedto:war,naturaldisasters,governmentrestrictions,exchangeormarketrulings,strikes,interruptionsofcommunicationsordataprocessingservices,newsoranalysts’reports,marketvolatilityordisruptionsinorderlytradingonanyexchangeormarket .
27. Phone Channel AccessDuringnon-businesshoursorduringperiodsofpeakdemand,marketvolatility,systemsupgradesormain-tenance,orforotherreasons,accesstoaSchwabrepresentativeviathephonechannelmaybelimitedorunavailable .Someclientsmayhavetheircallsroutedtoautomatedtelephonechannelsorinforma-tionalmessages .Schwabmayassigncallingteamsandspecificphonenumberstosupportcertainclientgroupsbasedoncertainfactors,whichmayincludeassetlevelsandtradinghistory .TheseclientgroupsmaybegivenpreferenceinreachingaSchwabrepre-sentative .FailuretoprovideuswithavalidaccountnumbercouldalsolimityouraccesstoaSchwabrepresentative .
28. Provision of Market DataWemayconveytoyoubytelephone,electronicorothermeansthelastsaletransactiondata,bidandaskedquotations,newsreports,analysts’reportsorresearchandotherinformationrelatingtosecuritiesandthesecuritiesmarkets(collectivelyreferredtointhissectionas“marketdata”) .Wemaychargeafeeforprovidingthismarketdata .
Weobtainmarketdatafromsecuritiesexchangesandmarketsandfrompartiesthattransmitmarketdata(collectivelyreferredtointhissectionas“themarketdataproviders”) .Allmarketdataisprotectedbycopyrightlaws .Weprovidemarketdataforyourper-sonalnon-commercialuse;youmaynotsell,marketordistributeitinanyway,unlessyouhaveenteredintowrittenagreementswiththeappropriatemarketdataproviders .
Wereceivethemarketdatafromindustrysourcesthatarebelievedtobereliable .However,theaccuracy,completeness,timelinessorcorrectsequencingofthemarketdatacannotbeguaranteedeitherbyusorbythemarketdataproviders .Neitherwenorthemarketdataproviderswillbeliableforinterruptionsintheavailabilityofmarketdataoryouraccesstomarketdata .
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The market data is provided “as is” and on an “as available” basis. There is no warranty of any kind, express or implied, regarding the market data. We are not responsible for, and you agree not to hold us liable for, lost profits, trading losses or other damages result-ing from inaccurate, defective or unavailable market data. In any case, our liability arising from any legal claim(whetherincontract,tortorotherwise)relatingto the market data will not exceed the amount you have paid for use of the services or market data. You agree that we may correct any execution reported to you that was based on inaccurate market data pro-vided to us by an exchange or a market center.
29. Non-Publicly Traded Securities and Worthless or Non-Transferable Securities
Holding Non-Publicly Traded Securities at Schwab.Wemay,atourdiscretion,agreetoaccommodaterequestsfromyoutoholdinyourAccountcertainsecurities,suchashedgefunds,privateequityfunds,privateplacements,andothersecuritiesthatdonottradeonsecuritiesexchangesorover-the-countermarkets(hereinafterreferredtoas“Non-PubliclyTradedSecurities”) .InconsiderationforouracceptingtheseNon-PubliclyTradedSecuritiesintoyourAccountfromtimetotime,andsubjecttosuchadditionaltermsasmaybepresentedtoyouatthetimeoftherequest,youagreethatSchwab’ssoleobligationwithrespecttosuchNon-PubliclyTradedSecuritieswillbeto(1)obtainandmaintainpossessionorcontrolofsuchsecuritiesinamannerasrequiredbytheSecuritiesandExchangeCommissionand(2)fileandprovidereportsandinformationasrequiredundertheInternalRevenueCode,theregulationsthereunderoftheInternalRevenueService .
YouacknowledgethatSchwab’sobligationsarelim-itedtomaintainingpossessionorcontrolandmaynotincludefacilitationoftransfers,sales,withdrawals,oranyotheractivityrelatedtotheNon-PubliclyTradedSecurities .Youfurtheracknowledgethat,unlessnotifiedinwritingbyconfirmationorsimilardocument,SchwabhasnotactedandwillnotactasbrokerordealerinanypurchaseorsaleofNon-PubliclyTradedSecuritiesheldinyourAccount .
BeforerequestingthatweholdaNon-PubliclyTradedSecurityinyourAccount,youagreethatyouwillhaveperformedacompletereviewoftheNon-PubliclyTradedSecurityandtakensufficientactionstodeter-minethattheinvestmentisappropriateforyouandyourownfinancialcircumstancesandthatyouarecomfortablewiththeriskofloss,whetherduetoinvestmentriskorthepotentialforfraudormiscon-
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duct .Youagreethatsuchreviewswillinvolvethereviewofofferingmemoranda,organizationaldocu-ments,andauditedfinancialstatements,andaninvestigationintothebackgroundandqualificationsoftheissuersandsellingagentsofeachNon-PubliclyTradedSecurity .ByrequestingSchwabtoholdaNon-PubliclyTradedSecurity,yourepresentthatyouhavedeterminedthatsuchNon-PubliclyTradedSecurityhasbeenproperlyregisteredunderfederalandstatelawasasecurityorisexemptfromsuchregistration .YouacknowledgethatSchwabwillberelyingonyourinvestigationintothesemattersinconsideringyourrequesttoholdaNon-PubliclyTradedSecurityinyourAccount .
YouacknowledgethatanydocumentationregardingaNon-PubliclyTradedSecuritysubmittedtoSchwabwillbeusedsolelyforSchwab’sinternaloperationalpurposes .Schwabwillnotundertaketorevieworassumeresponsibilityforthetermsandconditionsorcontentssetforthinsuchdocumentation,including,butnotlimitedto,appropriatenessorsuitability,restrictionsofownership,rightsoftransfer,financialstatements,ortheadequacyofdisclosureorcompli-ancewithapplicablelaws,rules,andregulations .AnyreviewperformedbySchwabwillsolelybeforitsbenefitindeterminingitsabilitytoholdandservicetheNon-PubliclyTradedSecurity .
YouacknowledgethatSchwabshallhavenoresponsi-bilityformonitoringtheNon-PubliclyTradedSecuritytoassurecompliancewithitstermsordisclosures,fortakinganyactionstocollectonanyamountowedtoyou,orforotherwiseenforcingyourrightswithrespecttotheNon-PubliclyTradedSecurityheldinyourAccount .Schwabisundernoobligationtotakeanyactionshouldtherebeadefault,bankruptcy,orotherimpairmentassociatedwithaNon-PubliclyTradedSecurity .YouagreetonotifySchwabimmedi-atelyifyouidentifyanyproblemwithanyNon-PubliclyTradedSecuritythatwouldinterferewithSchwab’sabilitytoholdtheNon-PubliclyTradedSecurityorobtainandreportvalues .YouagreethatSchwabhasnoresponsibilityordutytoinvestigate,evaluate,orreporttoyouanyinformationthatSchwabmaypos-sessormaybecomeawareofregardinganyNon-PubliclyTradedSecurity .
YoualsoacknowledgethatwhenyoudirectSchwabtowireortransferfundstoanissuerorsponsorofaNon-PubliclyTradedSecurity,SchwabwillnothaveanyresponsibilityorliabilityiftheissuerorsponsorinvolveddoesnotprovidetherequiredreceiptorconfirmationoftheinvestmentinamannerthatwouldallowSchwabtoholdthesecurityinyourAccount .
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Valuing Non-Publicly Traded Securities on Statements.YouunderstandthatbecausethereisgenerallynopublicorsecondarymarketforNon-PubliclyTradedSecurities,thevaluesreportedonyourSchwabstate-mentmaynotrepresentmarketvalues .ItisunlikelythatyouwouldbeabletosellyourinterestsintheNon-PubliclyTradedSecuritiesheldinyourAccountorrealizetheamountsshownonyourSchwabstatementuponasaleoftheNon-PubliclyTradedSecuritiesheldinyourAccount .Youacknowledgethatitisverylikelythatthe“resale”valueoftheNon-PubliclyTradedSecuritiesmaybesubstantiallylowerthanwhatisonyourSchwabstatement .YouunderstandthatthesevaluesdisplayedonyourSchwabaccountstatementsareprovidedforyourconvenienceonly,mayhavebeenreportedaslongas18monthspriortostate-mentpreparation,andshouldnotberelieduponasanyindicationofmarketvalue .
IfyouhaveinstructedtheissuersorsponsorsofyourNon-PubliclyTradedSecuritiestoreportvaluestoSchwab,youagreethatSchwabmay,initssolediscretion,displayonyourSchwabstatementthemostrecentvaluesprovidedduringtheprior18months .YouagreethatSchwabmayrely,withoutquestionorverification,onthevaluesprovidedbytheissuersorsponsorsofNon-PubliclyTradedSecurities .Yourepresentthatduringthecourseofyourevalua-tionoftheNon-PubliclyTradedSecurities,youhavedeterminedsuchvaluationswillbeaccurateandreliable .YouunderstandthatSchwabdoesnotverifyorconfirmsuchvaluationsandmakesnorepresenta-tionsthatthevaluesarereasonable,areaccurate,orreflectyouractualholdings .
Intheeventthird-partydatasourcesprovidevaluationofyourNon-PubliclyTradedSecuritytoSchwab,Schwabmaydisplaythevalueprovidedbyathirdpartyoravaluederivedfromthethird-partydataonyourstatement .Ifthereisadiscrepancybetweenanissuer-providedvalueandathird-partyvalue,SchwabmayreportthevalueofyourNon-PubliclyTradedSecurityas“N/A”or“NotAvailable .”IfvaluationsarenotreceivedormadeavailabletoSchwabduringan18-monthperiod,SchwabreservestherighttorequireyoutoremovetheNon-PubliclyTradedSecurityfromyourSchwabstatementinthemannerdescribedinthisAgreement .
IfSchwabreportsavaluereceivedfromanissueronyourSchwabstatement,thevaluemaynotmatchwhatisprovidedtoyoubytheissuersoftheNon-PubliclyTradedSecurityduetothetimingofissuerstatementsandSchwab’sstatementproductionschedule .Inthesesituationsthecurrentvaluationwill
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bedisplayedonthefollowingmonth’sSchwabstate-ment .Ifyounoticeanyotherdiscrepancyinvalua-tionsbetweenyourSchwabstatementandanystatementprovidedbytheissuerofyourinvestment,pleasereviewyourstatementfootnotestounderstandhowthevaluationwasobtainedandcontactSchwabwithanyfurtherquestions .
Schwabmayoptatanytime,initssolediscretion,toremoveavalueforaNon-PubliclyTradedSecurityfromyourstatementandreportavalueof“N/A”or“NotAvailable .”
Removal of Non-Publicly Traded Securities From Your Account.SchwabmayaskyoutoremoveanyNon-PubliclyTradedSecurityfromyourAccountatanytimeandforanyreason .IntheeventthatSchwabasksyoutoremoveaNon-PubliclyTradedSecurityfromyourAccountandyoudonotrequestdistributionoftheNon-PubliclyTradedSecurityfromyourAccount,removeitfromyourAccount,ortransferittoanothercustodianwithinsixty(60)daysafterSchwabprovidesyouwrittennoticethatitwillnolongerholdtheNon-PubliclyTradedSecurity,youauthorizeanddirectSchwabtodistributetheNon-PubliclyTradedSecuritydirectlytoyou .IftheNon-PubliclyTradedSecurityisrepresentedbyaphysicalcertificateinSchwab’spossession,Schwabwillreturnthephysicalcertificatetoyou .IftheNon-PubliclyTradedSecurityisnotcertificated,youagreethatSchwabmayremovethesecurityfromyourAccountbynotifyingtheissuertore-registerthepositioninyournameandremoveSchwabascustodian .YouagreetoindemnifyandholdSchwabharmlessforyourfailuretoremoveortransferaNon-PubliclyTradedSecurityafterSchwabhasnotifiedyouthatSchwabisnolongerwillingtoholdthesecurityinyourAccount .YouagreethatyouarealsosolelyresponsibleforanytaxconsequencesassociatedwiththeremovaloftheNon-PubliclyTradedSecurityfromyourAccount .
SIPC Coverage.TheSecuritiesInvestorProtectionCorporation(SIPC)doesnotcovermanylimitedpart-nershipinterests .Pleaseconsultwithyourattorneyorinvestmentadvisorwithregardtoyourparticularinvestment .
Worthless and Non-Transferable Securities.SchwabreservestherighttoremovefromyourAccountanysecuritythatisdeemedtohavebeencancelledorotherwiseinvalidated .Indeterminingthatasecurityhasbeencancelledorinvalidated,youagreethatwehavederivedinformationonsuchassetsfromyouorfromthirdpartiesandwearenotresponsiblefortheaccuracyorreliabilityofanyinformationregardingtheseassets .Cancelledorinvalidsecuritiesmayinclude,but
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arenotlimitedto,bankruptcyorcharterorregistrationrevocation .SchwabwillnotifyyouifithasremovedacancelledorotherwiseinvalidsecurityfromyourAccount .UnlessyouprovideSchwabwithevidenceofthevalidityofthesecuritywithinsixty(60)daysofthenoticeofremoval,youagreetowaiveanyclaimtoanyfuturedistributionfromthesecurityandagreetoindemnifyandholdSchwabharmlessfromanyclaims,liability,ordamagesresultingfromtheremovalofsuchsecurity .IfyouprovideSchwabwithevidenceofthevalidityofthesecurityfromanindependentthirdpartywithin60daysofreceivingthenoticeofremoval,Schwabwillreinstateyourposition .
Inaddition,SchwabreservestherighttochargeanadditionalservicingfeeforsecuritiesforwhichSchwabcannotidentifyatransferagent(a“Non-TransferableSecurity”) .TheexistenceofaNon-TransferableSecurityinyourAccountmaybenotedwithanotationof“N/A”forthevalueofthatpositiononyouraccountstatements .
30. Order Entry ServicesFromtimetotime,wemaymakeavailableservices(referredtointhissectionas“theservices”)thatallowyoutoplaceordersandobtainmarketdataandotherinformationviatelephone,computerorotherelec-tronicmeans .Youagreetousetheservicestoenteryourordersiftimeisoftheessence .Youagreethat,foranyordersyousendtousinwriting,thetimingoftheorderentryisnotapriorityforyouandyouunder-standthat,althoughwewilluseourbesteffortstoenterthatorderinatimelymanner,itmaynotbeenteredimmediatelyatthetimethewrittenorderisreceived .Youfurtheragreethatwemaydetermine,inoursolediscretion,thatawrittenorderneedsfurtherclarification .Youunderstandthatsuchordermaynotbeenteredifweareunabletocontactyoutodiscusstheorder .Weencourageyoutoplaceallordersusingtheservices .Youagreethatyouareresponsibleforpayingforallorders .Schwabmay,initssolediscre-tion,removeparticularsecuritiesfromthelistofsecuritiesthatcanbepurchasedusingelectronicservicesduetovolatilityorothermarketfactors .
TheservicesmayrequireyoutouseanumberorpasswordtoaccessyourSchwabOne®Account .Youareresponsiblefortheconfidentialityanduseofyouraccessnumber,passwordandaccountnumber,andforallSecuritiesandothertransactionsinitiatedthroughthesemeans .Anyorderscommunicatedtousthroughthesemeanswillbeconsideredtohavebeensentandauthorizedbyyou .
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Youalsoagreetonotifyusimmediatelyifyou:
• Becomeawareofanyloss,theftorunauthorizeduseofyouraccessnumber,passwordoraccountnumber;oranyunauthorizeduseoftheservicesorthemarketdata .
• Failtoreceiveamessagethatanorderyouinitiatedthroughtheserviceshasbeenreceivedorexecuted .
• Failtoreceiveanaccuratewrittenconfirmationofanorderoritsexecution .
• Receiveconfirmationofanorderthatyoudidnotplace .
Youagreetopayallsubscription,serviceandusefees,ifany,thatwechargefortheservices .WemaytreatsuchfeesasadebittoyourSchwabOne®Accountanddeducttheamountofthesefeesfromanycreditbalanceinyouraccount .Inthealternative,youauthorizeus,inourdiscretion,tochargesuchfeestoacreditcardaccountnumberthatyouhaveprovidedtousforthispurpose .
We will not be liable for lost profits, trading losses or other damages resulting from the delay or loss of use of the services. In any case, our liability arising from anylegalclaim(whetherincontract,tortorotherwise)relating to the services will not exceed the amount you have paid for use of the services.
31. Investment AdviceYouagreeandacknowledgethat:
• Unlessweotherwiseagreewithyouinwriting,Schwabwillactonlyasyourbroker-dealerandnotasaninvestmentadvisor(“InvestmentAdvisor”);andyourAccountwillbeabrokerageaccountandnotaninvestmentadvisoryaccountgovernedbytheInvestmentAdvisersActof1940;
• Unlessweotherwiseagreewithyouinwriting,SchwabwillnotprovidefinancialplanningservicestoyouoryourAccount,andanycollectionofyourfinancialdatabySchwab,oranalysisorevaluationofsuchdatabySchwab,willbeinfurtheranceofourbroker-dealeractivitiessuchasrecommendinginvestmentsforyourAccountanddeterminingsuitability,andnotinconnectionwithestablishingorimplementingafinancialplan;
• You,oryouandanInvestmentAdvisorotherthanSchwab,ifyouhaveone,areresponsiblefordeter-miningthenature,potentialvalueandsuitabilityforyouofanyparticularinvestmentstrategy,transac-tion(includingfuturestransactions)orsecurity(includingequitiesandoptions) .Schwabhasnoresponsibilityforanysuchdetermination(1)unless
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weotherwiseagreewithyouinwriting,(2)unlessrequiredbyapplicablelaw,or(3)unlessSchwaboraSchwabrepresentativegivesadvicedirectlytoyouthatisclearlyidentifiedasaSchwabrecommenda-tionforyoutoenterintoaparticulartransactionortransactionsortobuyorsellaparticularsecurityorsecurities;
• YouagreethatanysuchSchwabrecommendationwillremainineffectonlyforaslongaswetellyouthatitwillremainineffectatthetimewemaketherecommendation;
• Unlessweotherwiseagreewithyouinwriting,SchwabdoesnothaveanydiscretionaryauthorityorobligationtoreviewormakerecommendationsfortheinvestmentofsecuritiesorcashinyourAccount;
• You,oryouandanInvestmentAdvisorotherthanSchwab,ifyouhaveone,willrelyonmultiplesourcesofinformationinmakinginvestmentdecisionsforyourAccount,andanyinformationSchwabmayprovidewillnotserveasthesolebasisforanyinvestmentdecisionyoumakeormadeonyourbehalf;
• You,oryouandanInvestmentAdvisorotherthanSchwab,ifyouhaveone,haveanaffirmativedutytomonitorprofitsandlossesinyourAccountandtomodifyyourtradingdecisionsaccordingly;
• Schwabmaymakeavailable,toyouandyourAccount,enrollmentincertainSchwabofferingswhichwillbecomposedofspecifiedinvestmentadvisoryservicesforwhichyoupayaquarterlyasset-basedfee,whichwillgenerallybechargedbasedontheamountofcertainassetsinyourAccount,or,inthecaseoffinancialplanningser-vices,aone-timeflatfee .Otherfeesandchargesmayalsoapply,assetforthinaseparateagree-mentyouwillenterintoandthatwillbecomepartofthisAccountAgreement;
• WhileSchwabmaymakeavailableitsownpropri-etaryresearch,orotherinformation,thisdoesnotconstituteanindividualizedrecommendationthatasecurityortransactionisappropriateforyouoryourAccount .Additionally,whileSchwabmakesavailableresearch,analysis,newsandotherinformationpreparedbythirdparties,thisalsodoesnotconstituteanindividualizedrecommendationbySchwab(oranythirdparty)orasolicitationofanyoffertobuyorsellsecuritiesbySchwab(oranythirdparty) .Schwabdoesnotcreateorprepareanyofthisthird-partyinformation,anditgivesnoassurancesastoitsaccuracy,qualityortimelinessanddoesnotwarrantanyresultsfromuseofanysuchinformation;
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• Anyresearch,analysis,newsorotherinformationmadeavailablethroughelectronicchannels(e .g .,theSchwab .comwebsiteoremailalerts)doesnotconstituteanindividualizedrecommendationtoyoutobuyorsellaparticularsecurity;
• Schwabdoesnotgivelegaladvice;and
• Schwabdoesnotgivetaxorestateplanningadvice,butwemayprovideyouwithgeneraltaxandestateplanninginformationandprinciples .Youagreethattheseprinciplesdonotapplytoyourspecificcircum-stancesortakeintoaccountyourcomprehensivetaxorestateplanningsituation .Forthattypeofassistance,youagreetoconsultyourowntaxorlegaladvisor .
YouagreenottoholdSchwabliableforanytradinglosses,lostprofitsorotherdamagesresultingfromyouruseofanyinformationSchwabmayprovide,whetheritispreparedbySchwaborathirdparty .
32. Market and Limit OrdersYouacknowledgeaquotethatyouobtainatorpriortothetimeyouplaceamarketorderisnotaguaran-teethatallorpartofyourorderwillbeexecutedatthequotedprice .Youacknowledgethatwhenyouplaceamarketorder,thepriceofthesecuritymaychangebetweenthetimetheorderisplacedandthetimeitisexecuted,andyouagreenottoholdSchwabliableforthesepricefluctuations .Inaddition,ifyouplaceamarketorderwhenthetradingexchangesormarketplacesareclosed,orforasecuritythathasnottradedonthepublicmarketbefore,youacknowl-edgethatthesecuritymayopenfortradingatapricesubstantiallyhigherorlowerthanthepreviousclosingpriceortheanticipatedprice .Youagreetopayorreceivetheprevailingmarketpriceatthetimeyourmarketorderwasexecuted,eveniftheexecutionpriceissignificantlyhigherorlowerthanyouantici-patedatthetimeyouplacedtheorder .
Thepricequotesyoureceivewhenplacinganorderapplyonlytoordersforasmallnumberofshares .Youacknowledgethatthepriceyouwillpayorreceivemayvarysubstantiallyifyourorderislargerthanthenumberofsharestowhichapricequoteapplies .Largemarketordersmaybeexecutedinmultiplelotsatdifferentprices .
Youshouldunderstandthatyoucanlimittheriskofpricefluctuationsbyplacingalimitorder .However,ifyouplacealimitorder,youarelesslikelytogetanexecution .Schwabcanprovidenoassurancethatyourlimitorderwillbeexecutedatanyparticulartime,oratall .Ifyoudonotunderstandthepurposeor
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effectofeithermarketorlimitorders,youagreetocallaSchwabrepresentativetoassistyou .
33. No Recommendation of Day TradingSchwabdoesnotpromotedirectlyorindirectlywhatiscommonlyreferredtoas“DayTrading .”Schwab’sservicesthatprovidethemeanstoplacetradeselectronicallyshouldnotbeconstruedasanendorse-mentorpromotionofDayTrading .DayTradingcanbeveryriskyandisnotappropriateforcustomerswithlimitedresources,limitedinvestmentortradingexpe-rience,oralowrisktolerance .
34. Good-till-Canceled OrdersGood-till-canceled(GTC)orderswillbeautomaticallycanceledonlyatthecloseofbusinessonthe60thcalendardayafterthedatetheorderwasenteredoronthenextBusinessDaythereafterifthe60thdayisaweekendorholiday .YouacknowledgethatifyoudonotcancelanopenGTCorder,thetransactionmaybecompletedbasedonyouroriginalinstructionsanytimeuntilthecloseofbusinessonthe60thcalendardayornextBusinessDay .Forsecuritiesthatpaycashdividendsorthatsplit,unlessotherwiseinstructed,openGTCorderswillbeadjustedinaccordancewithstockexchangeregulations .
35. Privacy Policy, After-Hours Trading and Other Terms and Disclosures
SchwabfromtimetotimewillinformyouoftermsandconditionsforaccessingorusingproductsorservicesSchwaboffers,including,butnotlimitedto,accessingourwebsiteandparticipationinanafter-hourstradingsession .Suchtermsandconditions,whenacceptedbyyouasindicatedeitherbyyouractionsorexpressacknowledgment,becomepartofyourAccountAgreementwithSchwab,andyouagreetoabidebytherequirementsofthosetermsandconditions .
SchwabalsowillinformyoufromtimetotimeofimportantdisclosuresandnoticespertainingtoyouraccessoruseofSchwabproductsorservices,includ-ing,butnotlimitedto,ourprivacypolicyandtherisksofbuyingorsellingcertainsecuritiesortradinginanafter-hourssession .Youagreethatyouruseofsuchproductsorservicesisanacknowledgmentthatyouhaveunderstoodthedisclosure,noticeorpolicy,andthatyouagreetoanyactiontakenbySchwabinaccordancewiththestateddisclosure,noticeorpolicy .
Extended Hours Trading SessionSchwab’sextendedhourstradingofferinghastwocomponents .Apre-marketsessionthatoperatesfrom
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8:00a .m .to9:25a .m .ET,andanafter-hoursses-sionthatoperatesfrom4:15p .m .to8:00p .m .ET .Thesesessionsarecompletelyindependentfromtheregularmarketsession .
Ordersforthepre-marketsessionmaybeenteredbeginningat8:05p .m .ETonthepriortradingday,butwillnotbeeligibleforexecutionuntilthesessionofficiallyopensat8:00a .m .ET .Ordersfortheafter-hourstradingsessioncanbeenteredbeginningat4:05p .m .ET,butwillnotbeeligibleforexecutionuntilthesessionofficiallyopensat4:15p .m .ET .
OtherfinancialserviceprovidersmayoffertradingservicesoutsideofregularmarkethoursthatdiffersignificantlyfromSchwab’sextendedhourstradingsessions .
Order TypesSchwabonlyacceptslimitordersinextendedhourstradingsessions .Marketorderswillnotbeaccepted .
Order PricesSchwabdoesnotacceptlimitordersinsub-pennyprices .Asub-pennypriceisanypriceenteredmorethantwodigitstotherightofthedecimal(i .e .,0 .123,1 .123,10 .1234,etc .) .
Maximum Share SizesThemaximumsharesizeis25,000sharesinextendedhourstradingsessions .
Extended Hours Trading Session Disclosure
• RiskofLowerLiquidity .Liquidityreferstotheabilityofmarketparticipantstobuyandsellsecurities .Generally,themoreordersthatareavailableinamarket,thegreatertheliquidityinthatmarket .Liquidityisimportantbecausewithgreaterliquidityitiseasierforinvestorstobuyorsellsecuritiesand,asaresult,investorsaremorelikelytopayorreceiveacompetitivepriceforsecuritiespurchasedorsold .Theremaybelowerliquidityinextendedhourstradingascomparedtoregulartradinghours .Asaresult,yourordermayonlybepartiallyexe-cuted,ornotatall .
• RiskofHigherVolatility .Volatilityreferstothechangesinpricethatsecuritiesundergowhentrading .Generally,thehigherthevolatilityofasecurity,thegreateritspriceswings .Theremaybegreatervolatilityinextendedhourstradingthaninregulartradinghours .Asaresult,yourordermayonlybepartiallyexecuted,ornotatall,oryoumayreceiveaninferiorpricewhenengaginginextendedhourstradingthanyouwouldduringregulartradinghours .
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• RiskofChangingPrices .Thepricesofsecuritiestradedinextendedhourstradingmaynotreflectthepriceseitherattheendofregulartradinghours,orupontheopeningthenextmorning .Asaresult,youmayreceiveaninferiorpricewhenengaginginextendedhourstradingthanyouwouldduringregu-lartradinghours .
• RiskofUnlinkedMarkets .Dependingontheextendedhourstradingsystemorthetimeofday,thepricesdisplayedonaparticularextendedhourstradingsystemmaynotreflectthepricesinotherconcurrentlyoperatingextendedhourstradingsystemsdealinginthesamesecurities .Accordingly,youmayreceiveaninferiorpriceinoneextendedhourstradingsystemthanyouwouldinanotherextendedhourstradingsystem .
• RiskofNewsAnnouncements .Normally,issuersmakenewsannouncementsthatmayaffectthepriceoftheirsecuritiesafterregulartradinghours .Similarly,importantfinancialinformationisfre-quentlyannouncedoutsideofregulartradinghours .Inextendedhourstrading,theseannouncementsmayoccurduringtradingand,ifcombinedwithlowerliquidityandhighervolatility,maycauseanexagger-atedandunsustainableeffectonthepriceofasecurity .
• RiskofWiderSpreads .Thespreadreferstothedifferenceinpricebetweenwhatyoucanbuyasecurityforandwhatyoucansellitfor .Lowerliquid-ityandhighervolatilityinextendedhourstradingmayresultinwiderthannormalspreadsforapar-ticularsecurity .
Appropriateness of Extended Hours Trading:Schwabdoesnotwarrantorrecommendthatextendedhourstradingisappropriateforyou .Asnotedabove,extendedhourstradinginvolvesspecialrisks,anditmaynotbeappropriateforallinvestors .Investmentdecisionsyoumakeinvolvingextendedhourstradingareyourresponsibility .
Potential Changes to Extended Hours Trading:Schwabreservestherighttochangeitsextendedhourstrad-ingsession .Youwillneedtokeepuptodateonthesechangesandreviewhowtheymightaffectyourowninvestmentdecisions .
Clearly Erroneous Policy:SchwabmaybesubjecttotheElectronicMarket’s“clearlyerroneouspolicies .”Aclearlyerroneoustradeoccurswhensomeonehasenteredanorderwithanobviouserrorinanyterm,suchassecurityidentification,price,ornumberofshares .Uponrequest,theElectronicMarketmay
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reviewatransactiontodetermineifitwasclearlyerroneousandmayreverseor“break”suchatrade .Thiscouldhavetheeffectofplacingyouintheposi-tionyouwereinbeforethetransaction .Ifyouwishtohaveatransactionreviewed,pleasecontactaSchwabrepresentativeimmediately,asyoumustmakeanappealwithin30minutesoftheexecutiontimefora“break”tobeconsidered .
Electronic Services Agreement and Use Agreement:YouruseoftheextendedhourstradingsessionisgovernedbyyourexistingaccountagreementswithSchwab,includingthe“ElectronicServicesAgreement .”Theinformation,news,research,quota-tions,andothercontentavailabletoyouduringtheextendedhourstradingsessionisalsosubjecttothe“UseAgreement .”AsaSchwabcustomer,youhavepreviouslyconsentedtotheseagreements,whichareavailableforyourreviewundertheAgreementslinkthatappearsononeormorepagesintheCustomerCenter .
36. Order RoutingSchwabhascontractedwithUBSSecuritiesLLC(“UBS”)forequityandoptionsorderhandlingandexecutionservices,includingaccesstoUBS’salgorith-micorderroutingcapabilities .UBSmanagestheexecutionofmosttypesofordersforwhichcustom-ershavenotprovidedspecificinstructions(non-directedorders),includingthroughtheuseofintelligentorderroutingtechnologyforidentifyingthebestavailablemarket .UBSexecutesSchwabordersonallmajormarketcenters,includingexchanges,electronictradingnetworks(alsoknownasECNs)anddealermarkets,andmayalsoexecuteordersasprincipal .UBSalsoprovidesexecutionservicesformosttypesofdirectedorders .
UBSroutingandexecutionservicesaresubjecttoSchwab’sexecutionqualitystandardsforachievingbestexecution .Incertaincircumstances,Schwabitselfmayrouteordersdirectlytoamarketforexecu-tion .Schwabconsidersanumberoffactorsinevalu-atingexecutionquality,includingexecutionpriceandopportunitiesforpriceimprovement,marketdepthandordersize,tradingcharacteristicsofthesecurity,speedandaccuracyoftheexecution,availabilityofefficientandreliableorderhandlingsystems,servicelevels,andthecostofexecutingordersataparticularmarketorfirm .Schwabregularlymonitorstheexecu-tionqualityprovidedbyUBSandthevariousmarketstowhichUBSandSchwabmayrouteorders,toensureordersareroutedtomarketsthathavepro-videdhigh-qualityexecutionsovertime .
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PartoftheconsiderationSchwabreceivedforthesaleofitscapitalmarketsbusinesstoUBSin2004relatedtotheexecutionservicesagreementswithUBSandSchwab’scommitmentstoroutemosttypesofequityandlistedoptionsordersthroughUBSforeightyears .However,SchwabdoesnotearnrebatesorotherconsiderationfromUBSorotherfirmsormarketsforequityandoptionsordersroutedthroughUBSorroutedbySchwabdirectly .
Schwabroutesbuy-writeordersandothercomplexoptionsorders(i .e .,multi-legorderssuchasspreads,straddlesandcollars)toUBS,CitadelandLiquidPoint .
QuarterlyinformationregardingtheroutingofordersbySchwabinlistedequities,OTCequitiesandlistedoptionsisavailableonourwebsiteatwww .schwab .com(or,ifyouareaclientofanInvestmentAdvisorenrolledwithSchwabInstitutional®,atwww .schwaballiance .com)orinwrittenformuponrequest .Informationregardingtheroutingdestinationandtimeofexecutionofyourordersforuptoasix-monthperiodisalsoavailableuponrequest .
Schwabmayexecutefixedincomeordersforcustom-ersasagentorasprincipalforitsownaccount .Inthebondmarket,thereisnocentralizedexchangeorquotationserviceformostfixedincomeproducts .Pricesgenerallyreflectactivitybymarketparticipantsordealerslinkedtovarioustradingsystems .Asmallnumberofcorporatebondsarelistedonnationalexchanges .AlthoughSchwabseeksaccesstomajortradingsystems,exchangesanddealermarketsinanefforttoobtaincompetitivepricing,atanygiventime,itispossiblethatsecuritiescouldbeavailablethroughothertradingsystems,exchangesordealersatsuperiorprices .OneofthesystemsthroughwhichSchwabmakesinventoryavailabletoitscustomersisValuBondSecurities,Inc .,(“ValuBond”),anelectronictradingplatformonwhichnumerousbroker-dealersdisplaytradinginterestandexecutetrades .SchwabholdsanequityinterestinValuBondandaseatonitsboardofdirectors .
37. Order Change or Cancellation RequestsYouacknowledgethatitmaynotbepossibletocancelamarketorlimitorderonceyouhaveplacedit,andyouagreetoexercisecautionbeforeplacingallorders .Anyattemptyoumaketocancelanorderissimplya“requesttocancel .”Schwabprocessesyourrequesttochangeorcancelanorderonabest-effortsbasisonlyandwillnotbeliabletoyouifSchwabisunabletochangeorcancelyourorder .Marketorders,inparticular,aresubjecttoimmediateexecution,andas
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ageneralrulecannotbecanceledoncetradingbegins .NochangeorcancellationofmarketorderswillbeacceptedthroughtheElectronicServices .Moreover,Schwabcannotguaranteethatcancellationrequestsforanypendingorders,placedshortlybeforetradingbegins,willbehonored .YouunderstandthatSchwab’sabilitytoprocesscancellationrequestswillbeimpactedbymarketconditionsandtradingvol-umes,bothofwhichareoutofSchwab’scontrol .Ifyouwishtotrytochangeorcancelyourmarketorder,youagreetocallaSchwabrepresentativetoassistyou .AttemptingtoreplaceorchangeamarketorderthroughtheElectronicServicescanresultintheexecutionofduplicateorders,whichultimatelyareyourresponsibility .Ifanordercannotbecanceledorchanged,youagreethatyouareboundbytheresultsoftheoriginalorderyouplaced .
38. Mutual Fund Fees, Orders, Distributions and Redemptions
Youagreethat,inpurchasingandredeemingsharesofamutualfundthroughSchwab,Schwab’spoliciesandprocedureswillgovernsuchtransactionsandnotthoseofthemutualfundasdescribedinitsprospectus,whichmaybeeithermoreorlessbeneficialtoyouasaninvestor .Inparticular,youagreethatSchwab’spoliciesandproceduresonminimuminvestmentrequirements,exchangeoffundshares,dividendaccrualanddateforpaymentofaccrueddividendsuponredemptionofadailydividendfundmayvaryfromthoseapplicabletodirectfundshareholders .Youmayalsobechargedafund’sredemptionfeethatwouldnotbeimposedbythefundondirectshareholdersholdingfundsharesunderthesamecircumstances .
Schwabimposesshort-termredemptionfeesoncertainmutualfundtransactionsandreservestherighttorestrictindividualswhoengageinshort-termtradingofmutualfundsfrompurchasingsomeorallfundsavailablethroughSchwab .Ourshort-termredemptionpolicy,includingapplicablefeesandotherrestrictions,isavailableatwww .schwab .comanduponrequest .Schwabmayalsochargeatransactionfeeforcertainmutualfundtransactions;youwouldnotincurthisfeeifyoupurchasedsharesdirectlyfromafundcompany .Yourpurchaseandsaleofmutualfundsharesmaybesubjecttoadditionalfeesthefundimposes,suchassalesloadsandcontingentredemptionfees,thatareseparatefrom,andinadditionto,thetransactionandotherfeeschargedtoyoubySchwab .Youagreetopay,andaresolelyresponsibleforpaymentof,allfeeschargedtoyoubySchwaband/oranyfund .
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Schwab’sdeadlineforreceivingcustomerorderstoplacewithamutualfundforexecutionatthepricenextcalculatedbythefundmaybeearlierthanthedeadlinesetbythefundinitsprospectus .ItisyourresponsibilitytoverifywithusthedeadlinebywhichyoumustplaceyourorderwithSchwabtoobtainthenextpricecalculated .Wegenerallywillattempttohaveordersreceivedbyuspriortoourdeadlineacceptedbythefundforexecutionatthepricenextcalculatedbythefund .However,youmayreceivealaterpricethanthepricenextcalculatedbythefundif,duetooperationalincompatibilitieswiththefundorotherlimitations,Schwabisunabletosupporttrans-missionoftheordertothefundpriortothenextpricecalculatedbythefund .ItisyourresponsibilitytoverifywithuswhetheryourorderwillreceivethepricenextcalculatedbythefundpriortoplacingyourorderwithSchwab .
Inaddition,amutualfundmaydeclinetoexecuteanorderforthepricenextcalculatedbyitifwedonotplacetheorderwiththefundbyaspecifiedtime .Youagreethatwewillnotbeliabletoyouforanylosses,includinglostprofits,ifthemutualfunddoesnotacceptyourorderforexecutionatthepricenextcalculatedbythefundafterourdeadlineforanyreason,including,butnotlimitedto,computersystemdelaysorfailures,naturalcatastrophesorotheremergencies,orhumanerrorresultinginourlateplacementoftheorderwiththefund .Ifamutualfunddeclinestoacceptyourorderforexecutionatthepricenextcalculatedafterourdeadlinebecausewedidnotplacetheorderwiththefundbyaspecifiedtime,Schwabreservestheright,butisnotobligated,toplaceyourrejectedorderwiththefundforexecu-tionatthepricenextcalculatedbythefundafteritsacceptanceoftheorder .
Afundmayalsodeclineapurchaseorder,initssolediscretion,ifthepurchaseorderexceedsacertainsizeorforanyotherreason,andSchwabwillnotbeliableforanylosses,lostprofits,orotherdamagesthatallegedlyresultfromthefund’srejectionofthatpurchaseorder .Ifafunddeclinesyourpurchaseorderforanyreasonotherthanthetimeweplacedtheorderwiththefund,wewillcanceltheorderand,ifpracticable,attempttonotifyyou;wewillnotmakeanotherattempttoplacesuchadeclinedpurchaseorderwiththefund .
Ifyouplaceanordertobuyorsellaspecificdollaramountofamutualfund,Schwabwillcalculatethenumberofsharesboughtorsoldbydividingthedollaramountoftheorderbythepriceandroundingtothenearestthreedecimalplaces .Duetorounding,the
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actualvalueofthesharesboughtorsoldmaybeslightlygreaterorlessthantheactualdollaramountofyourorder .Ifyouplaceanordertobuyorsellaspecificnumberofsharesofafund,Schwabwillcalculatethedollaramountofthepurchaseorsalebymultiplyingthenumberofsharesbythepriceandroundingtothenearesttwodecimalplaces .Duetorounding,theactualdollaramountmaybegreaterorlessthantheactualshareamountofyourorder .
Schwabdoesnothaveanyobligationtoadvanceredemptionproceedsanddistributionsrelatedtomutualfundsharestoyouraccountbeforewehavereceivedthemfromthemutualfund .Intheeventwedoadvancesuchproceedsordistributions,suchamountswillconstituteindebtednessowedtousbyyou,securedasdescribedinthesectionentitled“SecurityforIndebtedness”untiltheyarereceivedfromthefund .Wereservetherighttoreversethetransactionpendingreceiptofpaymentfromthefund .Schwabisnotobligatedtopayanyinterestondistri-butionsfrommutualfundsorotherissuers(including,butnotlimitedto,issuersofequitysecurities)untilsuchdistributionsarereceivedbySchwab .
Ifamutualfundexercisesitsrighttoredeemyourshares“inkind”bydeliveringtoSchwabportfoliosecuritiesinpaymentforyoursharesinsteadofcash,Schwabwillholdthesesecuritiesinyouraccountsubjecttoyourinstructions .If,however,Schwabdoesnotnormallycustodyoreffecttransactionsinsecuritiespaidtoyoubyyourmutualfund,Schwabwilltakesuchactionasitdeemsappropriatetoeffectdeliveryofsuchnon-standardsecuritytoyouortoanentityabletoassumecustodyoreffecttransactionsinthesecurity .Youagreetopayourcommissionandtransaction,processing,custodyandotherfees,and/orthoseoftheentitytowhichyournon-standardsecurityisdelivered,astheyexistfromtimetotimeandapplytothetransactionsandservicesyoureceiveinconnec-tionwiththesesecuritiespaidtoyoubythefund .
39. NotificationWewilldirectwrittencommunicationstothemailingaddressorfacsimilenumberandoralcommunicationstothetelephonenumberyouprovidedonyourAccountApplication,orasyouotherwisespecify .Anycommunicationswedirecttosuchanaddress,fac-simileortelephonenumber,whetherbymail,fac-simile,telegraph,messenger,electronicmail,voicemailorotherwise,isconsidereddeliveredtoyoupersonally,whetherornotyouactuallyreceiveit .
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40. Trade Reports, Confirmations, Statements and Other Account-Related Communications
SchwabwillprovideyouwithwrittenconfirmationoftradesthatareexecutedinyourAccountasrequiredunderSECRule10(b)-10 .YouagreethatSchwabisnotlegallyobligatedtoprovideyouwithanytradestatusreportotherthanthewrittenconfirmationrequiredbySECrulesandthatanyothertradestatusreportisprovidedasacourtesyonly .Schwabwillnotbeliableforanylosses,lostprofitsorotherdamagesthatallegedlyresultfromdelaysinorafailuretoissueatradestatusreport .
Youacknowledgethatyouhaveanaffirmativedutytopromptlyreviewanyandalltradeconfirmationsandaccountstatementsforaccuracyandcompletenessandtoimmediatelynotifyusofanyitemsyoubelievetobeinerror .Youagreetowaiveanyobjectionstothetrades,positions,fundstransfers,checks,dis-bursements,feesandotherinformationsetforthonanyconfirmationsandaccountstatementsunlessyounotifyusofanunauthorizedtransactionorothererrorinwritingwithin10daysofmailing .Youagreethatwearenotliableforanydamagesormarketfluctuationsresultingfromanerroryoufailtotimelyreporttousortoyourdelayinreportinganerrortous .
YouagreethatSchwabmaycombinecommunicationssuchasaccountstatements,confirmationsandotherwrittencommunicationsrelatedtoaccountactivityforyouraccountsinamannerthatreducesthenumberofenvelopesmailedtoyou .Combinedcommunica-tionsforaccountsthathavemorethanoneaccountholdermaybeaddressedsolelytothefirst-listedaccountholderortotheaccountholderwhohashisorhertaxidentificationnumberserveasthetaxreportingidentificationnumberontheaccount(usu-allythefirst-listedaccountholder) .
YouagreetonotifySchwabifyouwantanyorallofyourcommunicationstobemailedseparately .Ifyouwishtocombinecommunicationsforadditionaleli-gibleaccountsthatarenotautomaticallycombined,pleasecontactSchwab .Ifyouhaveanaccountforwhichyouareactinginafiduciarycapacity,itisyourresponsibilitytoconsiderwhetheritisappropriateforenvelopestobemailedtoyouthatmightcontainmaterialrelatingtobothyourpersonalandfiduciarycapacities .Youareresponsibleforreviewingallofyouraccountstatements,anyamendmentstoyouraccountagreement(s),anyregulatorynoticesandanyotherinformationthatissentbySchwab .
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41. Consent to Electronic Delivery of Records and Regulatory Information
AsaconditionofyoureligibilitytoreceivecertainSchwabproducts,servicesoroffers,orasaconditionforyoutosetupaccesstoyourAccountthroughtheweboranotherElectronicService,uponnoticetoyou,Schwabmayrequirethatyouacceptdeliveryoftradeconfirmations,accountstatements,mutualfundprospectuses,issuerinformationorotherdocumentsbyelectronicmeanssuchaselectronicmailorthroughoneofourwebsites .Youagreethat,aftersuchnotice,yourenrollmentinoracceptanceofsuchproducts,servicesoroffers,oryournewaccesstotheweborElectronicServices,constitutesyourcon-senttoelectronicdeliveryoftradeconfirmations,accountstatements,mutualfundprospectuses,issuerinformationorotherdocuments .
Note: The following section applies only to Schwab One® customers with tax-deferred accounts:
42. Unrelated Business Taxable Income Provisions (UBTI)
IfanyassetsheldinyourAccountgenerateunrelatedbusinesstaxableincome(UBTI),youhavethesoleresponsibilityforreportingsuchincometotheInternalRevenueService(IRS)andanyothertaxauthoritiesandforcomplyingwithanyothertaxfilingrequire-mentsresultingfromreceiptofsuchunrelatedbusi-nesstaxableincome .YouagreethatSchwabhasnoresponsibilityforsuchtaxreportingandfiling,andagreetoindemnifyandholdusharmlessfromanyconsequences,includingpenaltiesassessedbytheIRSandanyothertaxauthorities,resultingfromreceiptofsuchunrelatedbusinesstaxableincome .YoualsoagreethatifyourAccountholdsassetsthatgenerateunrelatedbusinessincome,yourAccountatalltimeswillcontainliquidfundstopayanytaximposedonunrelatedbusinessincomeatthetimesuchtaxobligationbecomesdue,andthat,ifnecessarytosatisfyanysuchtaxobligation,youwillliquidateassetsorcontributesufficientamountstotheAccount .
Youfurtheragreethattotheextentfundsarenotavailable,SchwabisauthorizedtoliquidateanyinvestmentsinyourAccountnecessarytogeneratethefundsneededtosatisfyyourtaxobligation .Youunderstandandacknowledgethat,incaseswheretheannualfederaltaxdueismorethan$500,theIRSrequiresthatquarterlyestimatedtaxpaymentsbemade .YouunderstandandacknowledgethatSchwabwillmakesuchquarterlypaymentsonbehalfofyourAccountonlyifyoudirectusinwritingtomakethesepayments,andifyounotifyusoftheamountyouwishustopayeachquarter .
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43. Monitoring ConversationsYou,andanyagentorrepresentativeactingonyourbehalf,agreethatwemay,butarenotobligatedto,recordtelephonecallsorlistentoconversationsyouhavewithanySchwabrepresentativetomonitorthequalityoftheserviceyoureceiveandtoverifysecuritiestransactioninformationtobanks,mutualfundsandotherentitiesregardingtheproductsorservicesweofferorarrangeonbehalfofcustomers,orforotherbusinessreasons .Youacknowledgethatwemaynotbeabletolocateataperecordingunlessyoucanprovidethedateandtimeoftheconversationandthefullnameoftherepresentativetowhomyouspoke .YoufurtheragreethatSchwabhasthesolerighttodeterminehowlongtaperecordingswillberetained .
44. Trading or Disbursement RestrictionsYouagreethatwemayplacetrading,disbursementorotherrestrictionsonyourAccountasSchwabdeemsnecessary,including,butnotlimitedto,thefollowingcircumstances:pursuanttoacourtorder,taxlevyorgarnishment;attherequestofagovernmentagencyorlawenforcementauthority;intheeventthatyourAccountisrestricted(including,butnotlimitedto,cash-up-frontrestrictionbecauseoftradingortrade-relatedviolations);orintheeventofadisputebetweenjointtenants .Youagreetoabidebyanysuchrestrictionandnottoinitiatetradesortransactionswhichwouldviolatetherestriction .Youagreetoallowustoliqui-datesecuritiesinyourAccounttosatisfyanycourtorder,garnishment,taxlevyorotherlegalobligationimposedbyacourtorgovernmentagency .YouagreenottoholdSchwabliableforanytradinglosses,lostprofits,taxobligationorotherdamagesresultingfromliquidationsortradingordisbursementrestrictionsimposedonyourAccountinconnectionwithacourtorder,taxlevy,garnishmentorotherlegalproceeding .YouagreewemaydebityourAccountaprocessingfeeof$35foreachgarnishment,subpoena,courtorder,taxlevyorotherlegalprocessonyourAccount .
45. SeparabilityIfanytermofthisagreementisfoundtobeinvalidorunenforceable,allotherprovisionswillremaininfullforce .
46. Entire Agreement, Amendment and WaiverTheSchwabOne®AccountAgreement,includingalldisclosures,termsandagreementsincorporatedbyreference,eachasamendedfromtimetotime,isthecompletestatementofyouragreementwithus .Incertainnon-U .S .jurisdictions,wemayincorporateagreementsdeemedappropriateandadvisableunder
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locallaw .Onpriororconcurrentwrittennoticetoyou,wemaymodifyorrescindexistingprovisionsoraddnewprovisions .Bynotclosingand/orcontinuingtouseyourAccount,youconfirmyouragreementtoabidebytheSchwabOne®AccountAgreement,asamendedfromtimetotime .Amendmentswillnotaffectrightsorobligationseitherofusincurbeforetheeffectivedateoftheamendment .Nopriorcon-duct,pastpracticeororalstatementbyanySchwabemployeeoragentcanamendormodifythiswrittenagreement,including,butnotlimitedto,Schwab’srighttoliquidateorclosepositionsinamarginaccountanytimeandwithoutnoticeassetforthintheMarginandShortAccountAgreement .
WaiversofrightsundertheSchwabOne®AccountAgreementmustbeexpressedinwritingandsignedbythepartywaivingtherights .Awaiverwillapplyonlytotheparticularcircumstancegivingrisetothewaiverandwillnotbeconsideredacontinuingwaiverinothersimilarcircumstances,unlesstheintentiontograntacontinuingwaiverisexpressedinwriting .OurfailuretoinsistonstrictcompliancewiththeSchwabOne®AccountAgreementoranyothercourseofconductonourpartisnotconsideredawaiverofourrightsundertheSchwabOne®AccountAgreement .
47. Certain AcknowledgmentsYouacknowledgeandagreethatSchwaboranaffili-ateistheprincipalunderwriteroftheSchwabFunds® .Thisaffiliationdoesnotlimittheauthorityofourrepresentativestoprovideyouwithinformationaboutanyavailableinvestmentvehicles,includingthird-partymutualfundsthatarenotaffiliatedwithSchwab .YoufurtheracknowledgethatSchwabanditsaffiliatesreceivecertainremunerationforprovidingservicestotheSchwabFunds®invariouscapacities,includinginvestmentadvisoryandadministrativeservices,assetforthintheprospectusesoftheSchwabFunds®,asamendedfromtimetotime .Inaddition,youacknowledgeandagreethatSchwabFunds®areentitledtoreceivearedemptionfeeinconnectionwithsharesthatareheldforlessthan180days .Otherthanthesefees,neitherSchwabnoritsaffili-ateswillreceiveanysalescommissions,charges,fees,discounts,penaltiesoradjustmentsinconnec-tionwiththepurchase,holding,exchange,terminationorsaleofanysharesoftheSchwabFunds® .
Youalsoacknowledgeandagreethat,inadditiontoanyfeesthatwemaychargeforperformingservicesforyourAccount,wereceiveremunerationfromcer-tainregisteredinvestmentcompaniesavailablethroughSchwab’sMutualFundMarketPlace®(includ-ingSchwab’sMutualFundOneSource®service)and/
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ortheiraffiliatesforrecordkeepingandshareholderservicesrenderedbySchwab,andthatourfeesforservicesonyourbehalfwouldbehigherifwedidnotreceivesuchremuneration .SuchremunerationisbasedontheaggregatenetassetvalueofcertainsharesheldinSchwab’scustomers’accounts,andcurrentlyvariesfrom0 .25%to0 .45%oftheaggregatenetassetvalueofsuchshares,dependingupontheregisteredinvestmentcompany .Theseamountsmaybeadjustedfromtimetotimeandmaybepaid,inwholeorpart,froma12b-1plan .
48. Disclosure of Account InformationWemaydiscloseyournameand/orinformationaboutyourAccountoryourtransactionstoouragentsandaffiliates .Wemayalsodisclosesuchinformationtothirdpartiesincertaincircumstances,including:
• Tobanks,mutualfundsandotherentitiesthatareinvolvedwiththeproductsorservicesweofferorarrangeonbehalfofourcustomers;
• Whenitisrequestedbyathirdpartytocompleteatransaction;
• ToverifytheexistenceorconditionofyourAccountforacreditbureauormerchant;
• Tocomplywithasubpoena,courtorderorrequestfromagovernmentagencyorlawenforcementauthority;
• Toevaluateyourcreditworthinessorthecollectibilityofanydebtyouoweus;
• PursuanttoRule14b-1undertheSecuritiesandExchangeActof1934,tocompaniesinwhichyouholdsecurities,unlesswereceiveyourwrittenobjection;or
• Ifyougiveusyourpermission .
49. SIPC ProtectionTheSecuritiesInvestorProtectionCorporation(SIPC)providesupto$500,000ofprotectioninaccountsyouholdinaseparateaccountcapacity(forinstance,ascustodian,jointtenantorsoleowner),withalimitof$250,000forclaimsincashbalances .Forfurtherdetails,pleaseseewww .sipc .org .Thisprotectiondoesnotcoverfluctuationinthemarketvalueofyoursecurities .Accountprotectionisnotprovidedfortheaccountsofbanksorbroker-dealersmaintainedfortheirownaccount .
ToobtaininformationaboutSIPC,includinganexplanatorySIPCbrochure,pleasecontactSIPCatwww .sipc .orgor1-202-371-8300 .
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50. Cash-in-Lieu PaymentsIfyoureceivefractionalsharesastheresultofastocksplitorothercorporateaction,we,inoursolediscre-tion,mayeithersellthesharesontheopenmarketortotheissuerortransferagent,andyouareentitledtoreceiveyourprorataportionoftheproceedsofsuchsale .Ifsoldontheopenmarket,thesalepricemaydifferfromthatofferedtocertainregisteredownersbytheissuerortransferagent .
51. Interest, Dividend and Other PaymentsIfyouareentitledtoreceivedividend,interestorotherpaymentsoninvestmentinstruments,we,inoursolediscretion,maychoosetopaysuchproceedstoyouonlyuponreceiptofpaymentbyusfromtheissuer .
Ifthenetamountofanydividend,interestorotherpaymentsettobeautomaticallydisbursedtoyoubycheckislessthan$100,itwillremainasacreditbalanceintheAccountandwillnotbeautomaticallysenttoyou .Weeklydisbursementslessthan$100willaccrueinyouraccountuntiltheendofthemonthandyouwillbesentacheckifthecombinedtotalequals$100ormore .
52. Back-Up WithholdingThefollowingcertificationdoesnotapplyifyouhavesubmittedanInternalRevenueService(IRS)W-8 .Youcertifyunderpenaltyofperjurythat:(1)youhaveprovideduswithyourcorrecttaxpayeridentificationnumber;(2)youarenotsubjecttoback-upwithholdingbecause(a)youareexemptfromback-upwithholding,or(b)youhavenotbeennotifiedbytheIRSthatyouaresubjecttoback-upwithholdingasaresultofafailuretoreportallinterestanddividends,or(c)theIRShasnotifiedyouthatyouarenolongersubjecttoback-upwithholding;and(3)youareaU .S .person(includingaU .S .residentalien) .However,ifyouhavebeennotifiedbytheIRSthatyouaresubjecttoback-upwithholdingasaresultofdividendorinterestunderreportingandyouhavenotreceivedanoticefromtheIRSadvisingyouthatback-upwithholdingisterminated,youagreethatyouhavecrossedouttheappropriateinformationintheboxaboveyoursignatureonyourapplication .TheIRSdoesnotrequireyourconsenttoanyprovisionofthisdocumentotherthanthecertificationsrequiredtoavoidback-upwithholding .
53. Authorizations Granted to Investment Advisors
ForaccountsmanagedbyInvestmentAdvisorsthatareenrolledwithSchwabInstitutional®,anyandallauthorizationsyougranttoyourInvestmentAdvisoror
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otherthirdpartieswithrespecttoyourAccountwillapplytothesuccessorsandassignsofsuchInvestmentAdvisororotherthirdparty,subjecttolimi-tationsofapplicablelaw .
54. Electronic CopiesTheelectronicallystoredcopyofyour(oryouragent’s)signature,anywritteninstructionsorauthorizations,theAccountApplicationandtheAgreementandDisclosuresisconsideredtobeatrue,complete,valid,authenticandenforceablerecord,admissibleinjudi-cial,administrativeorarbitrationproceedingstothesameextentasifthedocumentsandrecordswereoriginallygeneratedandmaintainedinprintedform .Youagreetonotcontesttheadmissibilityorenforce-abilityofSchwab’selectronicallystoredcopyofsuchdocumentsinanyproceedingbetweenyouandSchwab .
55. Optional DividendsWhenadomesticcompanyoffersitsshareholdersachoicetoreceiveadividendeitherincashorstock,wewilluseyourdividendreinvestmentelectionasthebasisforallocatingfuturedistributions .Inotherwords,accountsthathaveelectedtohavetheirdividendsreinvestedontheaffectedsecuritywillbecreditedoptionaldividendswithadditionalshares,whileaccountsthathaveelectedtoreceivetheirdividendsincashwillbepaidoptionaldividendsincash .
56. Processing and Execution of Electronic Transactions
Wemayelecttoreviewelectronictransactionsmanuallybeforetheyaresubmitted .Thismanualreviewmayresultinadelayinexecution .Forsecuritiestransac-tions,thisdelaymaycauseadifferencebetweentheexecutionpriceandthedisplayedquoteatthetimetheorderwasentered .Thisdelaymayalsoresultinalimitorderbecomingineligibleforexecution .Forelectronicfundstransfersandwires,thismanualreviewmaydelaywhenfundsarepaidormadeavailable .
57. Independent Branch Leaders Who May Service Your Account
SomeSchwabbranchofficesareoperatedbyanIndependentBranchLeader(“IBL”) .AlthoughIBLsarenotemployeesofSchwab,theyareregisteredrepresentativesofSchwabandsubjecttoSchwabpoliciesandprocedures .IBLsareidentifiablebytheinclusionof“independent”intheirSchwabrepresen-tativetitle,signageintheirbranches,andsupportingdetailundertheir“YourConsultant”designationonwww .schwab .com .IBLsmayhiretheirownemployees
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toworkintheirbranches .LikeotherSchwabrepre-sentatives,IBLswillhaveaccesstocustomerinfor-mationtohelpserviceaccountsandsellSchwabproductsandservices .SchwabwillinformyouifyourAccountisassignedtoanIBLinyourgeographicarea .WhetherornotyouareassignedtoanIBL,youmayrequestserviceatanIBLbranchjustlikeanyotherbranch(forexample,ifyouaretraveling) .Accountsmanagedbyindependentinvestmentadvi-sorswillnotbeassignedtoanIBL .
Margin and Short Account AgreementWhenyoubuysecuritiesonmargin,orenterintoshortsalesorshortoptions,youareborrowingmoneyfromSchwabforpartofyourtransactions .Allsecuri-tiesandotherassetsinyourSchwabaccountsarepledgedascollateraltosecurethisloan .Thesemar-gintransactionsareriskierandinvolvethepossibilityofgreaterlossthantransactionswhereyouarenotborrowingmoney .Ifthevalueofyoursecuritiesandotherassetsfalls,youmayberequiredtodepositmoreassets(a“margincall”)tosecureyourloanoryoursecurities,andotherassetsmaybesoldtopaydownorpayoffyourloanwithoutpriornoticeandatalossoratlowerpricesthanunderothercircumstances .
Youagreetocarefullyconsideryourownfinancialcondition,toleranceforriskandinvestmentobjec-tives,aswellasmarketconditions,beforeyoudecidetousemargincreditorshortaccountfeatures .Byapplyingforamarginaccountand/orplacinganorderonmargin,youacknowledgethatyouhave,alongwiththetermsofthemarginagreement,carefullyconsid-eredallofthesefactorsandhavedecidedthatmar-ginfinancingisappropriateforyou .
Allsecuritiesandotherassetsnoworhereafterheldinthisaccountmaybepledged,repledgedorother-wiseused .
Therefore,beforeyouutilizetheMarginandShortAccountFeature,youmustcarefullyconsidermarketconditionsandyourfinancialpositionandinvestmentobjectives .Byapplyingforamarginaccountand/orplacinganorderonmargin,youacknowledgethatyouhavecarefullyconsideredyourfinancialcondition,investmentobjectivesandtoleranceforrisk,alongwiththetermsofthemarginagreement,andhavedeter-minedthatmarginfinancingisappropriateforyou .
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Disclosure of Credit Terms and PoliciesThefollowingDisclosureofCreditTermsandPoliciesisrequiredbytheSecuritiesandExchangeCommissionandispartofyourSchwabOne®AccountAgreement .ItdescribesthetermsunderwhichweextendcreditandchargeinterestandhowyourobligationsaresecuredbypropertyinyourSchwabOne®Account .
1. Interest ChargesWewillchargeinterestonadailybasisonthecreditweextendtoyou .Thedailyinterestchargesarecalcu-latedbymultiplyingyour“dailyadjusteddebitbal-ance”bythe“dailymargininterestrate .”Generallyspeaking,yourdailyadjusteddebitbalanceistheactualsettleddebitbalanceinyourMarginandShortAccount,increasedbythevalueofsecuritiesheldshortandreducedbytheamountofanysettledcreditbalancecarriedinyourCashAccount .
Wecalculateyourdailyadjusteddebitbalanceeachdaybyadjustingyourpreviousday’sbalancebyanydebitsandcreditstoyourAccountandbychangesinthevalueofshortpositions .
Ifyourdailyadjusteddebitbalanceisreducedbecauseyoudepositacheckorotheritemthatislaterreturnedtousunpaid,wemayadjustyourAccounttoreflectinterestchargesyouhaveincurred .
Wereservetherighttochargeinterestondebitbal-ancesintheCashAccount .
Periodically,wewillsendyouacomprehensivestate-mentshowingtheactivityinyourAccount,includingapplicableinterestcharges,interestratesandadjusteddailydebitbalances .
2. Daily Margin Interest RateThe“dailymargininterestrate”isbasedona360-dayyear .Itiscalculatedforeachdaybydividingtheapplicablemargininterestrateshowninthetablebelowby360 .Pleasenotethattheuseofa360-dayyearresultsinahighereffectiverateofinterestthanifayearof365dayswereused .
Theapplicablemargininterestrateissetataper-centageaboveSchwab’sBaseRateaccordingtothefollowingschedule:
If your daily adjusted debit balance is:
The applicable margin interest rate is:
$0–$24,999 .99 Baserateplus2 .0%
$25,000–$49,999 .99 Baserateplus1 .5%
$50,000–$99,999 .99 Baserateplus0 .5%
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If your daily adjusted debit balance is:
The applicable margin interest rate is:
$100,000–$249,999 .99 Baserateplus0 .375%
$250,000–$999,999 .99 Baserateplus0 .25%
$1,000,000–$2,499,999 .99 Baserateminus0 .25%
$2,500,000andover Baserateminus0 .50%
WesettheBaseRateatourdiscretionwithreferencetocommerciallyrecognizedinterestrates,industryconditionsrelatingtotheextensionofmargincreditandgeneralcreditmarketconditions .ThecurrentBaseRateisavailablebycallingustoll-freeat1-800-435-4000,orifyourAccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional®,call1-800-515-2157 .
Yourmargininterestratewillbeadjustedautomati-callyandwithoutnoticetoreflectanychangeintheBaseRate .IfyourinterestrateincreasesforanyreasonotherthanachangeintheBaseRate,wewillgiveyouwrittennoticeatleast30dayspriortothatchange .Schwabreservestheright,buthasnoobliga-tion,tonegotiatewithyou,oryourInvestmentAdvisor(ifyouraccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional®),adifferentmarginratethanshownaboveforyourAccount .
3. Compounding Interest ChargesWecompoundinterestonadailybasis .InterestchargeswillaccruetoyourAccounteachday .Wewillincludethechargesinthenextday’sopeningdebitbalanceandchargeinterestaccordingly .TheinterestratesdescribedinSection2abovedonotreflectcompoundingofunpaidinterestcharges;theeffectiveinterestrate,takingintoeffectsuchcompounding,willbehigher .
4. Initial Margin RequirementsTheFederalReserveBoardandvariousstockexchangesdeterminemarginloanrulesandregulations .
WewillnotextendcreditunlessyourequityintheSecuritiesandOtherPropertyinyourMarginandShortAccountisatleast$5,000,orsuchgreateramountasmayberequiredbyapplicablerulesorregulationsorourhousepolicies .ThisminimummarginrequirementmaydifferfromtheminimumamountrequiredtoopenyourAccount .
Whenyoupurchasesecuritiesonmargin,youagreetodeposittherequiredinitialequitybythesettlementdateandtomaintainyourequityattherequiredlevels .Themaximumamountwecurrentlymayloanfor
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commonstock(equity)securitiesis50%ofthevalueofmarginablesecuritiespurchasedinyourMarginandShortAccount;differentrequirementsapplytonon-equitysecurities,suchasbondsoroptions .Ifthemarketvalueofstockheldascollateralincreasesafteryouhavemettheinitialmarginrequirements,youravailablecreditmayincreaseproportionately .Conversely,ifthemarketvaluedecreases,youravail-ablecreditmayproportionatelydecrease .
Initialmarginrequirementsmaychangewithoutpriornotice .Wemayimposeanytimeandwithoutpriornoticemorestringentrequirementsonpositionsthatinoursolediscretioninvolvehigherlevelsofrisk;forexample,higherlimitsmayapplyforthinlytraded,speculativeorvolatilesecurities,orconcentratedpositionsofsecurities .
YoumaypurchaseonlycertainsecuritiesonmarginorusethemascollateralinyourMarginandShortAccount .Moststockstradedonnationalsecuritiesexchanges,andsomeover-the-counter(OTC)securi-tiesaremarginable .Atourdiscretion,wereservetherightnottoextendcreditonanysecurity .
IfthemarketvalueofasecuritydropsbelowSchwab’sper-shareminimum,themarginmaintenancerequire-mentwillbe100% .PleasecallSchwaborvisitourwebsiteforourcurrentmarginrequirements .
5. Margin Maintenance RequirementsYoumustmaintainaminimumamountofequityinyourAccounttocollateralizeyouroutstandingloansandotherobligations .Marginmaintenancerequire-mentsareset:
• BytherulesandregulationsoftheFinancialIndustryRegulatoryAuthority,theAmericanStockExchangeandotherregulatoryagenciestothejurisdictionofwhichwearesubject;and
• Accordingtooursolediscretionandjudgment .
YouagreetomaintaininyourMarginandShortAccountcollateralofthetypeandamountrequiredby:
• Applicableexchangerulesandfederalregulations;
• OurDisclosureofCreditTermsandPolicies;or
• Asrequiredbyus,atourdiscretion .
Marginmaintenancerequirementsmaychangewith-outpriornotice .
Wemayissuea“margincall”(thatis,anotificationtodepositadditionalcollateral)ifyourAccountequityfallsbelowthemarginmaintenancerequirement .This
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canhappenforvariousreasons .Themostcommonreasonsareadecreaseinthevalueoflongsecuritiesheldascollateraloranincreaseinthevalueofsecu-ritiesheldshort .
Asageneralguidelineandwhenitispracticabletodoso,wemay(butarenotrequiredto)issueamar-gincallwhentheequityinyourMarginandShortAccountfallsbelowSchwab’sminimummaintenancerequirement .TheamountofadditionalcollateralwerequireusuallyisanamountsufficienttoraiseyourequitytoSchwab’sminimummaintenancerequire-ment .PleasecallSchwaborvisitourwebsiteforourcurrentmarginrequirements .
Weretainabsolutediscretiontodeterminewhether,whenandinwhatamountswewillrequireadditionalcollateral .Insomesituations,wemayfinditneces-sarytorequireahigherlevelofequityinyourAccount .Forexample,wemayrequireadditionalcollateralifanAccountcontains:
• Onlyonesecurityoralargeconcentrationofoneormoresecurities;or
• Low-priced,thinlytradedorvolatilesecurities;or if
• Someofyourcollateralisorbecomesrestrictedornon-negotiableornon-marginable .
Wealsomayconsidermarketconditionsandyourfinancialresources .
6. Short Option PositionsIfyouwriteuncoveredputorcalloptioncontracts,yourAccountissubjecttobothinitialmarginandmarginmaintenancerequirements .Formoredetailedinformationonhowwecalculatetheseequityrequire-ments,callustoll-freeat1-800-435-4000,orifyourAccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional®,call1-800-515-2157 .
7. Short SalesAshortsaleisamargintransactionsubjecttoinitialmarginandmarginmaintenancerequirements .Inmostcases,theinitialequityrequirementfortheshortsaleofanequitysecurityis150%ofthesalesproceedsofthesecurity,pluscommissions .Equitysecuritiessellingfor$5orlessandoddlotsusuallymaynotbesoldshort .Differentrequirementsapplytonon-equitysecurities .
Generally,currentmarginmaintenancerulesrequireyoutomaintainequityinyourAccountequaltoatleastSchwab’sminimummaintenancerequirementforthemarketvalueofeachstock“short”inyour
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Account .PleasecallSchwaborvisitourwebsiteforourcurrentmarginrequirements .Thevalueofsecuri-tiesheldshortinyourAccountis“markedtothemarket”eachday .Increasesinthemarketvaluewillincreaseyourdailyadjusteddebitbalance(onwhichinterestischarged)bythesameamount,whiledecreasesinthemarketvaluewilldecreaseyourdailyadjusteddebitbalancebythesameamount .
Asaresultofincreasesinyourdailyadjusteddebitbalance,thecollateralheldinyourAccountmaybecomeinsufficient .(See“MarginMaintenanceRequirements,”Section5,and“LiensandLiquidation,”Section8 .)Shortsaleproceedsarepartofthecollateralsecuringourloanofthesecuritytoyou,andyoumaynotwithdrawtheseproceedsfromyourAccount .Youareliableforalldividendspaidonsecuritiesyouhaveborrowedforthepurposeofshortsales .
For our protection, we may, at our discretion and without notice,immediatelycoveryourshortsecuritypositionsbypurchasingforyourAccountsecuritiestoreplacethosesoldshort .Wemaycoveryourpositionbecause:
• Thelenderofthesecuritiesrecallsthem;
• Weanticipateaninabilitytoborroworre-borrowthesesecurities;or
• Foranyotherreason .
Ifseveralaccountsholdshortpositionsinasecurityandnotallofthepositionsaretobecovered,wemayselectthepositionstobecoveredonarandombasis .
Incoveringashortposition,wemayatourdiscretionpurchasesecuritiesforyourAccounteitheronanormalsettlementbasis,next-dayoracashsettle-mentbasis .Thepriceofsecuritiespurchasedonanext-dayorcashsettlementbasisisusuallyhigherthanthatofthosepurchasedonanormalsettlementbasis .Thepriceofcoveringtheshortpositionmaybehigherthanthepriceatwhichyousoldshort;there-fore,youmaysustainalossonthattransaction .
Youareliableforcommissionsandothercostsofshortsaletransactionsandforanydebitbalancethatremainsafterwecoverorcloseoutashortposition .
WhenweborrowsecuritiesforyourAccount,weareobligatedtoreturnthesecuritiestothelenderondemand .Ifyouareunabletocoverashortposition(eitherthroughdeliveryofthesecurityorthroughour“buyingin”yourposition)inenoughtimeforustodeliverthesecuritytoitslender,youagreetopayusforthelosseswesustainasaresultofthefailuretodeliver .Forinstance,ifyouhaveashortpositionina
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securitythatissubjecttoatenderofferandyouareunabletocoverthepositionintimeforustodeliverthesecuritytoitslender,wemayholdyourespon-siblefortheeconomicvalueofthetenderoffer .
8. Liens and LiquidationAtourelection,alldebitbalancesinyourAccount,includingthoseresultingfromextensionsofmargincredit,willbeimmediatelydueandpayable .
IntheSchwabOne®AccountAgreement,yougrantedusalienonallSecuritiesandOtherPropertyheldormaintainedforanypurpose,includingsafekeeping,inyourSchwabOne®AccountorinanyotherpresentorfutureSchwabbrokerageaccountinwhichyouhaveaninterestregardlessofwhetherthereareotheraccountholdersonanyoftheaccounts .ThisliensecuresthefullperformanceofobligationsowedtousbyyouoranyjointaccountholderofyourSchwabOne®Account,whetherthoseobligationsareincurredinconnectionwithyourSchwabOne®Accountoranyotherbrokerageaccountwithus,andextendstopropertythatmaynotbeacceptableasmargincol-lateralunderFederalReserveBoardregulations .
Ifyourequityfallsbelowtheapplicablemaintenancerequirement,wemay(butarenotobligatedto)notifyyou,bymail,telegram,telephone,orelectronicorothermeans,ofamargincallforanamountsufficienttobringyourAccountuptotheequitylevelwerequire .
Margincallsrequirepromptdeliveryaccordingtoourinstructionsofeitheradditionalfundsoracceptablesecurities .FailuretomakearequireddepositmayresultintheliquidationofpartoralloftheSecuritiesandOtherPropertyinyourAccount .
Notwithstanding any oral communications between you and us, we reserve the right to liquidate anytime (includingonorbeforesettlementdate)iftheequityinyour Account falls below Schwab’s minimum require-ments.YouwillcontinuetobeheldliableondemandforanydebitbalanceremainingafterliquidationofassetsinyourAccount .
Itmaynotbepossibletonotifyyouofamargincallorallowanytimetodepositadditionalcollateral .Therefore,we reserve the right to initiate immediate liquidation procedures without notice.
YouareresponsibleformonitoringthestatusofyourAccount,forensuringthatsufficientcollateralismaintainedintheAccountandforliquidatingposi-tionstominimizelosses .Anyactionwetakeordonottaketoissueamargincallorliquidatecollateralisundertakensolelytoprotectourinterestasacreditor .
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Youagreethatwedonothaveanyresponsibilitytoissueamargincall,toliquidatepositionsinyourAccountortoselectthesecuritiestobeliquidatedorthemannerortimingoftheliquidationinordertopreventorminimizelossestoyou .
Schwab StockBuilder Plan®
1. Provision of Schwab StockBuilder Plan®YourenrollmentintheSchwabStockBuilderPlan®isactivatedoneBusinessDayafteryounotifyusbytelephone,orfiveBusinessDaysafterreceiptofyourletter,thatyouwishtoenrollaneligiblesecurity .Whenyourenrollmentisactivated,youagreetobeboundbythisSchwabStockBuilderPlan®AgreementaswellasanyotheragreementsbetweenyouandusthatapplytoyourAccount .
YoumaydirectustoaddtheSchwabStockBuilderPlan®toalleligiblesecuritiesinyourAccount,oryoumaychooseindividualsecuritiesforautomaticdividendreinvestment .ToaddorremovethePlanwithrespecttosecuritiesinyourAccount,youmustnotifyusatleastoneBusinessDaypriortothedayonwhichdividendsorothereligiblecashdistributionsarepayableforthosesecurities .Dividendsarereinvestedonallsecuritiesyouhaveselectedthatyouownontherecorddatefordeterminingshareholderseligibletoreceivedividends,aslongasyoustillownanywholesharesofsuchsecuritiesonthedividendpayabledate .
Dividendreinvestmentdoesnotassureprofitsonyourinvestmentsanddoesnotprotectagainstlossindecliningmarkets .
YouagreetopayourSchwabStockBuilderPlan®trans-actionfees,astheyexistfromtimetotimeandapplytoyourtransactionsandservicesyoureceive .TheSchwabStockBuilderPlan®isnotaffiliatedwithanyreinvestmentplanofferedbyanyotherentity .However,Schwabmaychoose,atitsowndiscretion,topartici-pateinathird-partydividendreinvestmentprogram .
2. Eligible SecuritiesSecuritieslistedontheNewYorkStockExchangeortheAmericanStockExchange,ortradedonNasdaq,aregenerallyeligiblefortheSchwabStockBuilderPlan®,exceptforforeignsecurities,shortpositions(obligationstosellsecuritiesyoudidnotownatthetimetheorderwasplaced)andOvertheCounterBulletinBoard®securities .
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3. Eligible Cash Distributions for ReinvestmentMostcashdistributionsoneligiblesecuritiesselectedforparticipationinourSchwabStockBuilderPlan®maybereinvested,includingmostregulardividends,capitalgainsdistributions,andthelike .However,cash-in-lieu,specialdividends,interest,anddistribu-tionsofanykindthatarelargerthan5%ofthesharevaluecannotbeautomaticallyreinvested .YoumaynotcombinefundsfromeligiblecashdistributionswithanyfundsyoudepositintoyourAccounttomakeautomaticreinvestmentpurchases .
4. Dividend Reinvestment Transactions in Eligible Securities
WewillcombinecashdistributionsfromyourAccountwiththosefromothercustomersrequestingreinvest-mentinthesamesecurityandusethesefundstopurchasesecuritiesforbothyouandtheseothercustomers .WewillcredittoyourAccountthenumberofsharesequaltotheamountofyourfundstobereinvestedinaparticularsecuritydividedbythepurchasepricepershare .Ifseveralpurchasetransac-tionsarerequiredinordertoreinvestyourandothercustomers’eligiblecashdistributionsinaparticularsecurity,thepurchasepricepersharewillbetheweightedaveragepricepershareforallsuchsharespurchased .Timingofpurchasesissubjecttoourdiscretion .
5. Partial SharesAutomaticreinvestmentofyoureligiblecashdistribu-tionsmaygiveyouinterestsinpartialsharesofsecu-rities,whichwewillcalculatetofourdecimalplaces .Youwillbeentitledtoreceivedividendpaymentsproportionatetoyourpartialshareholdings .Ifanaccountistransferred,ifastockundergoesareorga-nizationorifstockcertificatesareorderedoutofanaccount,thosepartialsharepositionsthatcannotbetransferredorreorganizedwillbeliquidatedatprevail-ingprices .Partialsharesarenotavailabletobeissuedoutofanaccountincertificateform .Nocom-missionwillbechargedforthesetransactions .Timingissubjecttoourdiscretion .Youwillalsobeentitledtoreceiveproxyvotingmaterialsandvotingrightsproportionatetoyourpartialshares,exceptintheeventofcertaintypesofcorporatereorganizations .Inmandatorycorporatereorganizations,yourpartialshareswillbehandledaccordingtothetermsoftheparticularreorganization .Involuntaryreorganizations,instructionsyougiveuswillonlybeappliedtoyourwholeshares .
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Intheeventofarightsofferingtoholdersofaneligiblesecurity,wewillcausetherightsaccruingtoallpartialsharesofthatsecuritythataresubjecttotheStockBuilderPlantobesold,andwewillinvesttheproceedsinsharesofthatsecurity .
Automaticdividendreinvestmentmaygiveyouapartialsharepositioninsecuritiesthatarecallableinpart .Intheeventofacall,thepartialsharestobecalledwillbeselectedinanautomatedrandomselec-tioninwhichtheprobabilityofyourholdingsbeingselectedisproportionaltotheholdingsofallSchwabcustomerswhoholdpartialsharepositionsinthatsecurity .YouhavetherighttowithdrawfromyourAccountcash-in-lieuofyouruncalled,fullypaid,par-tialsharepositionspriortothepublicationdateofapartialcall .
Youhavetherighttoliquidatefractionalsharesany-time,regardlessofwhetherornotacallhasbeenannounced .Onceacallhasbeenannounced(“publi-cationdate”),allsharesparticipateintherandomcallprocess,regardlessofwhethertheyareregisteredorheldinstreetname .Ifyounolongerhavethesharesyouhadonpublicationdate,andyourpositioniscalled,youwillneedtocoverthoseshares .
6. Confirmations on StatementsAlltransactionsmadethroughtheSchwabStockBuilderPlan®willbeconfirmedonyourregularaccountstatement .Youmayobtainimmediateinfor-mationbycallingourtoll-freenumber .
7. Continuing Effect of Authorization; Termination
YouauthorizeustopurchaseforyourAccountsharesofthesecuritiesyouhaveselectedfortheSchwabStockBuilderPlan® .AuthorizationsunderthissectionwillremainineffectuntilyougiveusnoticetothecontraryatleastoneBusinessDaypriortothedayonwhichcashdividendsarepaid .Suchnoticewillnotaffectanyobligationsresultingfromtransactionsinitiatedpriortoourreceiptofthenotice .
8. Automatic Dividend Reinvestment Transactions in The Charles Schwab Corporation Stock
ThefollowingappliesonlytoaccountholderswhoaddorremovetheSchwabStockBuilderPlan®withrespecttostockofTheCharlesSchwabCorporation(“SCHW”)heldintheirSchwabOne®Account .
ToaddorremovethePlanwithrespecttoSCHWstockinyourAccount,youmustnotifyusbytele-phoneatleastoneBusinessDaypriortothedayon
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whichdividendsorothereligiblecashdistributionsarepayableforSCHWstocksecurities .
Wewillappointanindependentbankorbroker-dealer,otherthanCharlesSchwab&Co .,Inc .,toactasbuyingagentforautomaticreinvestmentofeligiblecashdistributionsinSCHWstock .Wemaychangethisbuyingagentanytime .WewillpayallbrokeragecommissionsorservicechargesassessedbythebuyingagentthatapplytoautomaticreinvestmenttransactionsinSCHWstock .WewillalsobearalladministrativecostsoftheSchwabStockBuilderPlan®thatareinSCHWstock .
Wewillpromptlyforwardtothebuyingagentalleli-giblecashdistributionsthatwereceivefromSCHWfortheSchwabStockBuilderPlan®participants .ThebuyingagentwilluseallfundsitreceivesonbehalfofserviceparticipantstopurchasesharesofSCHWstockintheopenmarket .Thebuyingagentmaybuysuchsharesthroughusorthroughanotherbroker-dealer .Sharespurchasedbythebuyingagentwillbedeliveredtousasyouradministrativeagent .WewillcredityourAccountwiththenumberofSCHWsharesequaltotheamountreinvestedonyourbehalfdividedbyyourpricepershare .YourpricepersharewillbetheweightedaveragepriceofallSCHWsharespur-chasedforSchwabStockBuilderPlan®participantsbythebuyingagentwiththefundsfromaparticulareligiblecashdistribution .
IntheeventofanexchangeortenderofferforsharesofSCHWstock,wewillpromptlysupplyrequestsforinstructionstoeachaccountholderwhohaschosenSCHWstockfortheStockBuilderPlan .Wewillnottakeanyactionwithrespecttoanysuchexchangeortenderofferwithoutspecificinstructionsfromyou .
Electronic Services AgreementThisElectronicServicesAgreementamendsyourbrokerageaccountagreement(s)andreplacesanyprioragreementbetweenyouandSchwabregardingyouruseoftheElectronicServices .
1. Use of Electronic ServicesScope of the Agreement—ThisElectronicServicesAgreement(the“Agreement”)betweenyouandSchwabstatesthetermsandconditionsthatgovernyouruseofSchwab’sElectronicServices .Itispartofyourbrokerageaccountagreement .Theterm“we,”whenusedbelow,meansSchwab .Theterm“ElectronicServices”includesallofSchwab’scom-puter,telephonic,facsimile,emailorwirelessservicesorsystems .Thisincludesservicesandinformation
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accessiblethroughSchwab,orserviceprovidersusedbySchwab,including,butnotlimitedto:
• Schwab’sproprietarysoftwaresuchasVelocity®andStreetSmartPro®;
• Schwab’swebsite;
• Schwab’scomputersandnetworksthatareacces-sibleexternally;
• SchwabbyPhone™andTeleBroker®;
• Schwab’swirelessservices,includingSchwabWireless;and
• Anyothercomputer,telephonicorwirelesssecuri-tiestradingservicesorinformationsystemSchwabprovidestoyou,includingsuccessorstothesys-temsdescribedabove .
Services Provided—Schwab’sElectronicServicesallowyoutoenterorderstobuyandsellcertainsecurities,stockoptionsandmutualfundswithinyourSchwabAccount,andtoaccesssecuritiespricequotations,investinginformationandyourpersonalaccountinformation .TheElectronicServicesareaccessibleviacomputer,telephonicorwirelesstrans-missionsforuseoncompatiblepersonal,homeorsmall-businesscomputers,includingInternetappli-anceswithmodems,terminalsandnetworkcomput-ers,aswellasvariouswirelessdevices .YouunderstandthatinorderforSchwab’sElectronicServices,includingfutureservicesavailablefromSchwab,toperformtoyoursatisfaction,oratall,youaresolelyresponsibleforthehardware,softwareorothertechnologyyouusetoaccessSchwab’sElectronicServices .SchwabwillnotberesponsibleforanyservicedifficultiesresultingfromyourfailuretopossesstechnologyadequatetouseSchwab’sElectronicServicestoyoursatisfaction .
Your Agreement—ByusingSchwab’sElectronicServices,youagreetocomplywiththetermsandconditionsofthisAgreement .SchwabhastherighttomodifyorterminatethisAgreementinanywayatanytime,andwewillprovideyouwithnoticeofanymodi-fications .Youfurtheragreetoabidebyanyrules,procedures,standards,requirementsorothercondi-tionswemayestablishinconnectionwiththeuseofourElectronicServicesoranyotherelectroniccom-municationsservicesmadeavailablebySchwab .
2. Risks of Electronic TradingAccesstotheElectronicServicesmaybelimitedorunavailableduringperiodsofpeakdemand,marketvolatility,systemsupgradesormaintenance,orfor
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otherreasons .IftheElectronicServicesareunavail-ableordelayedatanytime,youagreetousealterna-tivemeanstoplaceyourorders,suchascallingaSchwabrepresentativeorvisitingoneofourbranchoffices .SchwabwillnotbeliabletoyouifyouareunabletoaccessyouraccountinformationorrequestatransactionthroughtheElectronicServices .(SeeLimitationsofLiability,Section5 .)
WhenyouusetheElectronicServicestoplaceatradeorder,youacknowledgethatyourordermaynotbereviewedbyaregisteredrepresentativebeforebeingroutedtoanexchangeforexecutionandyoualsowillnothavetheopportunitytoaskquestionsorother-wiseinteractwithaSchwabrepresentative .ByplacingatradeorderthroughtheElectronicServices,youvoluntarilyagreetoassumeanyaddedriskthatmayresultfromthelackofhumanreviewofyourorderinexchangeforthereducedcommissionsandpotentiallygreaterconvenienceofelectronictrading .
Schwabposts“UrgentNotification”onitswebsitetoalertyoutovariousElectronicServicesandmarketconditionsissues .YouagreethatyouwillreadanyUrgentNotificationbeforeplacingordersonSchwab’sElectronicServicesandwillbedeemedtohaveknowl-edgeofanysuchUrgentNotificationthatispostedwhenyouplaceanorder .
3. Fast and Volatile Market ConditionsDuringperiodsofheavytradingand/orwidepricefluctuations(“FastMarkets”),theremaybedelaysinexecutingyourorderorprovidingtradestatusreportstoyou .Inaddition,ifyouplaceamarketorderinaFastMarket,theremaybeasignificantdifferenceinthequoteyoureceivepriortooratthetimeyouplacetheorderandtheexecutionpriceyoureceive .
IftheElectronicServicesareavailable,andyoudecidetoplaceanorderinfastorvolatilemarketconditions,youagreetoacceptfullresponsibilityforthatorder .IfSchwabbelievesanyparticularstockisormaybevolatile,Schwabmay,butisnotobligatedto,declinetoallowcustomerstoplaceordersforthatstockthroughtheElectronicServices .Inaddition,Schwabreservestheright,butisnotobligated,topreventanyIPOstockfrombeingtradedthroughtheElectronicServices .Ineitherofthesesituations,youoryourInvestmentAdvisor,ifyouhaveone,mayberequiredtocontactaSchwabrepresentativetoassistyouwithtransactionsinthesestocks .Schwabisnotliabletoyouforanylosses,lostopportunitiesorincreasedcommissionsthatmayresultfromyoubeingunabletoplaceordersforthesestocksthroughtheElectronicServices .
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4. Financial Market Information; No WarrantyFinancial Information—Schwab’sElectronicServicesmakeavailablecertainfinancialmarketdata,quotes,news,researchandopinions(includingResearchReports,asdefinedbelow)orotherfinancialinforma-tion(collectively,“Information”)thathasbeeninde-pendentlyobtainedbycertainfinancialmarketinformationservices,financialpublishers,varioussecuritiesmarketsincludingstockexchangesandtheiraffiliates,investmentbankersandotherprovid-ers(collectively,the“InformationProviders”)orhasbeenobtainedbySchwab .Schwabdoesnotguaran-teeorcertifytheaccuracy,completeness,timelinessorcorrectsequencingoftheInformationmadeavail-ablethroughSchwab,theInformationProvidersoranyotherthirdpartytransmittingtheInformation(the“InformationTransmitters”) .YouagreethatneitherSchwab,theInformationProvidersnortheInformationTransmittersshallbeliableinanywayfortheaccu-racy,completeness,timelinessorcorrectsequencingoftheInformation,orforanydecisionmadeoractiontakenbyyourelyingupontheInformation .YoufurtheragreethatneitherSchwab,theInformationProvidersnortheInformationTransmitterswillbeliableinanywayfortheinterruptionofanydata,InformationorotheraspectofSchwab’sElectronicServices .YouunderstandthatnoneoftheInformation(includingResearchReports)availablethroughSchwab’sElectronicServicesconstitutesarecommendationorsolicitationthatyoushouldpurchaseorsellanyparticularsecurity .
Research Reports—Schwab’sElectronicServicesmakeavailableanalystresearchandopinions(“ResearchReports”)thatmaybepreparedbySchwaboroneofitsaffiliates,orbyvariousthird-partyinvestmentbankersorotherentitiesprovidinganalysis,researchandopinions(“Third-PartyResearchProviders”) .SchwabdoesnotendorseorapproveResearchReportspreparedbyThird-PartyResearchProvidersandonlymakessuchResearchReportsavailabletoyouasaserviceandconve-nience .SchwabandtheThird-PartyResearchProvidersdonot:(1)guaranteetheaccuracy,timeli-ness,completenessorcorrectsequencingoftheResearchReports;or(2)warrantanyresultsfromyouruseoftheResearchReports .TheResearchReportshavebeenpreparedasofthedateindicatedandmaybecomeunreliableforvariousreasonsincluding,forexample,changesinmarketoreco-nomiccircumstances .SchwabandeachResearchProviderisnotobligatedtoupdateanyinformationoropinionscontainedinanyResearchReportortocontinuetoofferInformationorResearchReports
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regardinganycompanyorsecurity .YouacknowledgethatrecommendationsintheResearchReportstobuy,sell,holdorotherwiseconsiderparticularsecuri-tiesarenot,andshouldnotbeconstruedas,recom-mendationsoradvicetoyoudesignedtomeetyourparticularobjectivesorfinancialsituation .Fromtimetotime,Schwaband/oraResearchProvidermaybeunabletoprovideResearchReportswithrespecttocertaincompanieswithwhichSchwaband/oraResearchProvider,ortheirrespectiveaffiliates,havecertainbusinessrelationships .
Disclaimer of Warranties—There is no warranty of merchantability, no warranty of fitness for a particular use and no warranty of non-infringement. There is no other warranty of any kind, express or implied, regard-ing the Information, including Research Reports or any aspectofSchwab’sElectronicServices(includingbutnot limited to information access and order placement orexecution).
Agreement Not to Contact Analyst—Youagreenottocontactanyindividualoranalystwhoisanauthorof,orwhoisnamedon,anyResearchReport,oranyrepresentativeofanyInformationorResearchProvider .
Arbitration—YouagreethatanycontroversywhichmayarisebetweenyourselfandanyThird-PartyInformationorResearchProviderandanyoftheirofficers,direc-tors,affiliatesandemployeesshallberesolvedinarbitrationinaccordancewiththetermsandconditionsofthearbitrationagreement(s)enteredintobetweenyouandSchwabatthetimeyouopenedyourSchwabaccount(s),andasamendedfromtimetotime .
Disclosure of Potential Relationships—Schwaband/oritsemployeesordirectorsaswellasconsultantstoSchwabmayhaveormayhaveclientswithpositionsinsecuritiesorcompaniesreferencedinInformation,includingResearchReports,andmay,asprincipaloragent,buyfromorselltocustomers .Fromtimetotime,Schwabmayperforminvestmentbankingorotherservicesfor,orsolicitsuchservicesfrom,companiesmentionedinInformation .
Securities Professionals May Not Use Research Reports in Their Business—Ifyouareasecuritiesbroker,dealerorinvestmentbanker,byrequestingorreceivinganyResearchReports,youagreenottouseanysuchResearchReportsforanypurposerelatedtoyourbusiness .
5. Limitations of LiabilityLimitation of Damages—Schwab, the Information Providers, Information Transmitters, Third-Party Research Providers and any other person involved in
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transmitting Information will not be liable under any circumstances for any consequential, incidental, spe-cial or indirect damages even if you advise them of the possibility of such damages. This includes, but is not limited to, claims for lost profits, trading losses and damages that may result from the use, inconve-nience, delay or loss of use of the Information or for omissions or inaccuracies in the Information. As a condition to accessing or receiving the Information, you expressly agree to waive any claim you may have against Schwab, any Information Provider, Research Provider or any other persons involved in transmitting any Information Schwab makes available to you.
By accessing or receiving Information, you agree that the liability of Schwab, the Information Providers, the Third-Party Research Providers or any other persons involved in transmitting Information arising out of any legalclaim(whetherincontract,tortorotherwise)inany way connected with Schwab’s Electronic Services or Information will not exceed the amount you originally paid for the Electronic Services related to your claim.
Some jurisdictions do not allow limitations on how long implied warranties last, the exclusion or limitation of incidental or consequential damages or the exclusion of certain implied warranties, so that these disclaimers and limitations may not apply to you. This agreement gives you specific legal rights. You may also have other rights which vary from jurisdiction to jurisdiction.
No Liability for Events Outside of Entities’ Direct Control—Schwab,theInformationProviders,InformationTransmitters,Third-PartyResearchProvidersandanyotherpersoninvolvedintransmittingInformationwillnotbeliableforanylossthatresultsfromacauseoverwhichthatentitydoesnothavedirectcontrol .Suchcausesinclude,butarenotlimitedto:(1)thefailureofelectronicormechanicalequip-mentorcommunicationlines;(2)telephoneorotherinterconnectproblems;(3)bugs,errors,configurationproblemsortheincompatibilityofcomputerhardwareorsoftware;(4)thefailureorunavailabilityofInternetaccess;(5)problemswithInternetserviceprovidersorotherequipmentorservicesrelatingtoyourcom-puterornetwork;(6)problemswithintermediatecomputerorcommunicationsnetworksorfacilities;(7)problemswithdatatransmissionfacilitiesoryourtelephone,cableorwirelessservice;or(8)unauthorizedaccess,theft,operatorerrors,severeweather,earth-quakes,othernaturaldisastersorlabordisputes .Schwabisalsonotresponsibleforanydamagetoyourcomputer,software,modem,telephone,wirelessdeviceorotherpropertyresultinginanywayfromyouruseofSchwab’sElectronicServices .
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6. Consent to Email Communications and Opting Out
ByenteringintoacustomerAccountAgreementwithSchwaborbysubscribingtoaSchwabElectronicService,youareconsentingtothereceiptofelec-tronicmail(“email”)fromus .Wemaysendyouemailsaboutservicesandproductswebelievemaybeofinteresttoyou .Youmayoptoutoffutureemailsaboutproductsorservicesbyfollowinginstructionsinourprivacypolicy,onourwebsite,orcontainedinanemailthatyoureceivefromus .Wereservetheright,however,toemailyouimportantinformationrelatingtoyourAccount,includingregulatorycommunications .
7. Use of Proprietary InformationTheInformationprovidedisthepropertyofSchwab,theInformationorThird-PartyResearchProvidersortheirlicensersandisprotectedbyapplicablecopy-rightlaw .Youagreenottoreproduce,retransmit,disseminate,sell,distribute,publish,broadcast,circulateorcommerciallyexploittheInformationinanymannerwithouttheexpresswrittenconsentofSchwab,theInformationorThird-PartyResearchProvidersoranyotherpersonwiththeauthoritytogivesuchconsent .YouagreethatyouwillnotusetheInformationforanyunlawfulpurpose .YoufurtheragreetocomplywithallreasonablewrittenrequestsfromSchwabintendedtoprotecttheInformationandThird-PartyResearchProviders’andSchwab’srespec-tiverightsintheInformationandElectronicServices .
8. Use of QuotesYouagreetousethequotesonlyforyourindividualuseinyourbusiness .Youwillnotfurnishthequotestoanypersonorentityotherthananofficer,partneroremployeeofyourbusiness .
Ifyouareasecuritiesprofessional,suchasaninvest-mentadvisor,youmayoccasionallyfurnishalimitednumberofquotestoyourcustomersandclients,butsolelyintheregularcourseofyoursecuritiesbusi-ness .Ifyoufurnishquotestoyourcustomersandclientswhoarenotonyourpremises,youmaydososolely:(i)inwrittenadvertisements,educationalmaterial,salesliteratureorsimilarwrittencommuni-cations;or(ii)duringtelephonicvoicecommunicationnotentailingtheuseofcomputerizedvoicesynthesizationorsimilartechnology .Youshallnotpermitanycustomerorclienttotakephysicalposses-sionof“yourequipment”(i .e .,theequipmentthatyouusetoreceive,displayorotherwiseusequotes) .YoushallabidebyanyadditionallimitationsonuseofquotesthatSchwabmayspecifyinthefuture .
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9. Order Change or Cancellation RequestsYouacknowledgethatitmaynotbepossibletocan-celamarketorlimitorderonceyouhaveplacedit,andyouagreetoexercisecautionbeforeplacingallorders .Anyattemptyoumaketocancelanorderissimplyarequesttocancel .Schwabprocessesyourrequeststochangeorcancelanorderonabest-effortsbasisonlyandwillnotbeliabletoyouifSchwabisunabletochangeorcancelyourorder .Marketorders(includingmarketablelimitorders),inparticular,aresubjecttoimmediateexecutionandasageneralrulecannotbecanceledonceenteredduringmarkethoursandshortlybeforemarketopen-ing .Ifyouwishtotrytochangeorcancelyourmarketorder,youagreetocallaSchwabrepresentativetoassistyou .AttemptingtocancelandreplaceorchangeamarketorderthroughtheElectronicServicescanresultintheexecutionofduplicateorders,whichultimatelyareyourresponsibility .Ifanordercannotbecanceledorchanged,youagreethatyouareboundbytheresultsoftheoriginalorderyouplaced .
10. No Legal or Tax AdviceYouacknowledgethatSchwabdoesnotgivelegaladviceortaxadvice .However,wemayprovideyouwithgeneraltaxandestateplanninginformationandprinciples .Youagreethattheseprinciplesdonotapplytoyourspecificcircumstancesortakeintoaccountyourcomprehensivetaxorestateplanningsituation .Forthattypeofassistance,youagreetoconsultyourowntaxorlegaladvisor .
11. Investment AdviceYouagreeandacknowledgethatwhenyouusetheElectronicServices,you,oryouandanInvestmentAdvisorotherthanSchwab,ifyouhaveone,areresponsiblefordeterminingthenature,potentialvalueandsuitabilityforyouofanyparticularinvestmentstrategy,transaction(includingfuturestransactions)orsecurity(includingequitiesandoptions) .SchwabhasnoresponsibilityunderanycircumstanceforanysuchdeterminationunlessweotherwiseagreewithyouinwritingorunlessSchwabgivesadvicedirectlytoyouthatisclearlyidentifiedasaSchwabrecom-mendationforyoutoenterintoaparticulartransac-tionortransactions,ortobuyorsellaparticularsecurityorsecurities .YouagreethatanysuchSchwabrecommendationwillremainineffectonlyforaslongaswetellyouthatitwillremainineffectatthetimewemaketherecommendation .
Orders May Not Be Manually Reviewed—Youunder-standandacknowledgethatwhenyouplaceorders
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usingSchwab’sElectronicServices,thoseordersmaybesentdirectlytoanexchangewithoutbeingviewedbyanindividualSchwabrepresentative .Youacknowl-edgethatyoubeartheentireriskandagreetoacceptfullresponsibilityfortheordersyouplace .YoufurtheragreetoreleaseSchwabfromanyliabilityforexecutingtheordersyouplaceusingSchwab’sElectronicServices .
12. Access, Passwords and SecurityYouwillberesponsiblefortheconfidentialityanduseofyouraccessnumber(s),password(s)andaccountnumber(s) .YouagreenottoholdSchwabliableforanydamagesofanykindresultingfromyourdecisiontodiscloseyouraccessnumber(s),password(s)oraccountnumber(s)toanythirdparty,including,butnotlimitedto,entitiesthataggregateaccountinfor-mationorwebsitecontent,orpersonswhoareorclaimtobeactingasyouragent,proxyorInvestmentAdvisor .IfyouinformSchwaborSchwabhasreasontobelievethatthesecurityofyourAccountpasswordmaybeorhasbeencompromised,wehavetherighttoterminateyouruseofElectronicServices .Youwillberesponsibleforallordersenteredthroughandunderyouraccessnumber(s),password(s)andaccountnumber(s),andanyorderssoreceivedbySchwabwillbedeemedtohavebeenreceivedfromyou .AllordersshallbedeemedtobemadeatthetimereceivedbySchwabandintheformreceived .YouagreetonotifySchwabimmediatelyifyoubecomeawareof:
• Anylossortheftofyouraccessnumber(s),password(s)and/oraccountnumber(s);or
• Anyunauthorizeduseofanyofyouraccessnumber(s),password(s)and/oraccountnumber(s),oroftheElectronicServicesoranyInformation;or
• AnyfailurebyyoutoreceiveamessagethatanorderinitiatedbyyouthroughtheElectronicServiceshasbeenreceivedand/orexecutedthroughtheElectronicServices;or
• Anyfailurebyyoutoreceiveaccuratewrittenconfir-mationofanorderoritsexecutionwithinfiveBusinessDaysafterenteringtheorderthroughtheElectronicServices;or
• Anyreceiptofconfirmationofanorderthatyoudidnotplace,oranysimilarlyinaccurateorconflictingreportorInformation .
13. Data TransmissionYouacknowledgethatdata,includingemail,electroniccommunicationsandpersonalfinancialdata,maybeaccessedbyunauthorizedthirdpartieswhencommu-
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nicatedbetweenyouandSchwab,InformationProvidersorInformationTransmitters,usingtheInternet,othernetworkcommunicationsfacilities,telephoneoranyotherelectronicmeans .Youagreetousesoftwareproducedbythirdparties,including,butnotlimitedto,“browser”softwarethatsupportsadatasecurityprotocolcompatiblewiththeprotocolusedbySchwab .UntilnotifiedotherwisebySchwab,youagreetousesoftwarethatsupportstheSecureSocketLayer(SSL)protocolorotherprotocolsacceptedbySchwabandfollowSchwab’slogonproce-duresforElectronicServicesthatsupportsuchproto-cols .YouacknowledgethatSchwabisnotresponsiblefornotifyingyouofanyupgrades,fixesorenhance-mentstoanysuchsoftwareorforanycompromiseofdatatransmittedacrosscomputernetworksortele-communicationsfacilities,including,butnotlimitedto,theInternet .
14. Use of Software, Programs, Applications or Other Devices to Access Electronic Services
Withtheexceptionofapplicationscommonlyknownaswebbrowsersoftware,orotherapplicationsfor-mallyapprovedbySchwabinwriting,youagreenottouseanysoftware,program,applicationoranyotherdevicetoaccessorlogontoSchwab’scomputersystems,websiteorproprietarysoftwareortoauto-matetheprocessofobtaining,downloading,transfer-ringortransmittinganycontent,informationorquotestoorfromSchwab’scomputersystems,websiteorproprietarysoftware .
15. Subscription, Service and Use FeesYouagreetopayallsubscription,serviceandusefees,ifany,thatyouarechargedbySchwaboritsdesigneeforSchwab’sElectronicServices .Thesefeesmayinclude,withoutlimitation,anyResearchReportfees .Youagreethatthesefeesmaybechangedwithoutnotice .Schwabreservestherighttoenterintofee-sharingarrangementswithapplicableInformationProviders,InformationTransmitters,andThird-PartyResearchProviders .
Payment of Fees—UponrequestingaResearchReport,youshallinstructSchwaboritsdesigneetochargetherelatedfee,ifany,toadesignatedVisa®orMasterCard® .Ifappropriate,youmayalsoelecttochargethefeestoyourAccount .Youagreetopayallcosts(includingattorneys’fees),ifany,incurredbySchwabincollectingoverduefeesfromyou .Youalsoagreetopayallfederal,stateandlocaltaxesresult-ingfromyouruseorreceiptoftheResearchReports .YouagreetograntSchwabacontinuingsecurityinterestintheassetsinyourSchwabbrokerage
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account(s),ifany,tosecurethetimelypaymentofallfeesowedbyyoufortheResearchReportsaswellasanyotheramountsowingunderthisAgreementoryourotheragreementswithSchwab .IfSchwabchargesyouafeeforResearchReports,SchwabmayassignthisAgreementonlywithyourconsent,totheextentallowedbyapplicablelaw .
16. Account RestrictionsIfthereisarestrictiononyourAccount(s)atSchwab,youruseoftheElectronicServices’tradingfunctionswillbesorestrictedwithrespecttosuchAccount(s) .Further,Schwabreservestherightinitssolediscre-tiontorequireacashorequitydepositatanytimeandtodeterminetheadequacyofanysuchdepositpriortotheexecutionofanytransactionthroughtheElectronicServices .SchwabwillnotberesponsibleforanydelayorfailuretoprovidetheElectronicServices,includingtheexecutionofanysecuritiesorder,intheeventthereisarestrictiononyourAccount,youlacksufficientfundsinyourAccountoryoudelayorfailtomakearequiredcashorequitydeposit .
17. IndemnificationYouagreetodefend,indemnifyandholdSchwab,theInformationProvidersandtheInformationTransmittersharmlessfromandagainstanyandallclaims,losses,liabilitycostsandexpenses(including,butnotlimitedto,attorneys’fees)arisingfromyourviolationofthisAgreement,stateorfederalsecuritieslawsorregula-tions,oranythirdparty’srights,including,butnotlimitedto,infringementofanycopyright,violationofanyproprietaryrightandinvasionofanyprivacyrights .ThisobligationwillsurvivetheterminationofthisAgreement .
18. Our Ability to Terminate Electronic ServicesSchwabreservestherighttoterminateyouraccesstoitsElectronicServicesoranyportionofthem(includ-ing,withoutlimitation,theInformation[includingResearchReports])initssolediscretion,withoutnoticeandwithoutlimitation,foranyreasonwhatso-ever .SchwabmayterminateyouraccesstoitsElectronicServicesforreasonsincluding,butnotlimitedto,theunauthorizeduseofyouraccountaccessinformation,breachofthisAgreement,discon-tinuanceofSchwab’saccesstoanyInformationoranyotherdatafromanyInformationProviderorResearchProviderorterminationofoneormoreagreementsbetweenSchwabandInformationProviders,Third-PartyResearchProvidersorInformationTransmitters .Schwab,theInformation
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Providers,theThird-PartyResearchProvidersandtheInformationTransmittersshallhavenoliabilitytoyouforterminatingyouraccesstoSchwab’sElectronicServices;provided,however,thatifSchwab’stermina-tioniswithoutcause,SchwabwillrefundtheprorataportionofanyfeeyoumayhavepaidfortheportionoftheInformationand/orElectronicServicesnotfurnishedtoyouasofthedateoftermination .
19. Electronic CommunicationsTheElectronicServicesyouaccessbycomputerprovideyouwiththecapabilitytosendelectroniccommunications,suchasemail,directlytoSchwabandinteractwithinapplicableareasoftheElectronicServices .YouagreetothefollowingtermswithrespecttoyouruseofelectroniccommunicationsthroughtheElectronicServices:
• YouwillnottransmitsecuritiestradeorderstoSchwabusingelectroniccommunicationsexceptthroughthoseelectronicfeaturesdesignatedbySchwabfortheexpresspurposeofplacingtradeorders .YouacknowledgethatSchwabwillnotactupontradeorderstransmittedthroughelectroniccommunicationsotherthanordersyoutransmitthroughdesignatedtradeorderfeatures;
• Schwabshallbeentitled,butisnotobligated,torevieworretainyourelectroniccommunicationsfor,amongotherreasons,monitoringthequalityofserviceyoureceive,yourcompliancewiththisAgreementandthesecurityoftheElectronicServices .Schwabisentitledtodiscloseyourelec-troniccommunicationstothesameextentitmaydiscloseotherinformationaboutyouoryourAccount(s)asprovidedelsewhereinyourAccountAgreement(s) .InnoeventwillSchwabbeliableforanycosts,damages,expensesoranyotherliabili-tiesincurredbyyouasaresultofsuchactivitiesbySchwab;
• YouwillnotuseanyelectroniccommunicationfeatureoftheElectronicServicesforanypurposethatisunlawful,abusive,harassing,libelous,defamatory,obsceneorthreatening .YouwillnotusetheElectronicServicestosolicitSchwabcustomersorothersorparticipateinthesolicitationofSchwabcustomersorothersforanypurpose;
• Youwillnotupload,post,reproduceordistributeanyinformation,softwareorothermaterialprotectedbycopyrightoranyotherintellectualpropertyright(aswellasrightsofpublicityandprivacy)withoutfirstobtainingthepermissionoftheownerofsuchrights;
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• YouwillnotinanywayexpressorimplythattheopinionsinyourelectroniccommunicationsareendorsedbySchwabwithoutthepriorwrittencon-sentofSchwab;
• IfyouusetheElectronicServicesthatyouaccessbycomputer,youagreetoprovideSchwabwithyouremailaddress,promptlyprovideSchwabwithanychangestoyouremailaddressandacceptelec-troniccommunicationsfromSchwabattheemailaddressyouspecify;and
• Youagreetobeboundbyanyaffirmance,assentoragreementyoutransmitthroughtheElectronicServicesyouaccessbycomputer,including,butnotlimitedto,anyconsentyougivetoreceivecommuni-cationsfromussolelythroughelectronictransmis-sion .Youagreethat,wheninthefutureyouclickonan“Iagree,”“Iconsent”orothersimilarlyworded“button”orentryfieldwithyourmouse,keystrokeorothercomputerdevice,youragreementorconsentwillbelegallybindingandenforceableandthelegalequivalentofyourhandwrittensignature .
20. GeneralYouacknowledgethat,inprovidingyouwiththeElectronicServices,SchwabhasrelieduponyouragreementtobeboundbythetermsofthisAgreementandanyuserorlicenseagreement(s)relatedtooraccompanyingElectronicServices–relatedsoftware .Youfurtheracknowledgethatyouhaveread,understoodandagreedtobeboundbythetermsof:(i)theuserlicenseagreementofanyElectronicServices–relatedsoftware;and(ii)thetermsofSchwab’sbrokerageaccountagreement(s)andanyotheragreementwithSchwabthatappliestoyourAccount(s),allascurrentlyineffectandamendedfromtimetotime .
21. ModificationsThisAgreementmaybemodifiedbySchwabuponwrittennoticetoyou;provided,however,thatifSchwabsendsyouwrittennotice,viaelectroniccom-municationorotherwise,ofamodification,youcon-firmyouracceptanceofthemodificationbynotclosingand/orbycontinuingtouseyourAccount .
22. Governing LawThisAgreement,andallfutureagreementsyoushallenterintowithSchwab,unlessotherwiseindicatedonsuchotheragreement,shallbegovernedbythelaw(butnotthechoiceoflawdoctrines)ofthestateofCalifornia .ThisisthecaseregardlessofwhetheryouresideortransactbusinesswithSchwabinCalifornia
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orelsewhere,exceptthatarbitrationprovisionsshallbegovernedbytheFederalArbitrationAct .
23. Third-Party BeneficiariesYouandSchwabacknowledgeandagreethateachInformationProvider,InformationTransmitterandThird-PartyResearchProviderisanintendedthird-partybeneficiaryofthisESAtotheextentthattheElectronicServicesincludeInformationorResearchReports(“Third-PartyBeneficiaries”) .EachThird-PartyBeneficiaryisentitledtorelyuponallrights,represen-tations,warrantiesandcovenantsmadebyyouinthisESAtothesameextentasifeachThird-PartyBeneficiarywasapartytothisESAwithrespecttotheirownInformationorResearchReports .Fortheavoidanceofdoubt,allrightsandbenefitsgrantedunderthisAgreementtoSchwabwillalsobedeemedgranteddirectlytoeachThird-PartyBeneficiaryassetforthabove .Otherwise,nothirdpartywillbedeemedtobeanintendedorunintendedthird-partybenefi-ciaryofthisAgreement .
Schwab One International® Account AgreementTheSchwabOneInternational®AccountisprimarilyforcustomerslivingoutsidetheUnitedStates .ThetermsandconditionssetforthbelowincorporateandaresupplementaltotheSchwabOne®AccountAgreement,asamendedfromtimetotime .Wheretheremaybeaconflictofterms,thoseapplicabletotheSchwabOneInternational®AccountAgreementshallcontrol .
1. FeesFeesvarybasedonfactorssetforthintheapplicablePricing Guide .SeethePricing Guidefordetails .
2. Minimum Initial DepositYoumustmakeaminimuminitialdepositof$25,000toopenyourAccount .Thisamountmayconsistofacheck,moneyorder,ElectronicFundTransferand/ormarginablesecurities .
3. Administration of Foreign Currency Conversion Transactions
Youagreethat,fromtimetotime,itisdesirableforSchwabtoacceptyournon-U .S .-dollarfundsandthatitisalsodesirableforSchwabtoissuedisbursementstoyouinnon-U .S .-dollarfunds .Yourecognizethattodoso,Schwabmustobtaincertainauthorizationsfromyouandwishestoconfirmyouracceptanceoftheadministrationofthefunctionsnecessarytoeffect
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suchdepositsandpayments .Unlessotherwisespeci-fied,allcheckrequestswillbeissuedinU .S .dollars .
YouherebyauthorizeSchwabtoarrangeonyourbehalfforthepurchaseandsaleofcurrenciesforthepur-poseofconvertingfundsfordeposittoyourSchwabAccount(s)andforconvertingwithdrawalsfromyourAccountbeforedisbursementsaremadetoyou .
Schwabretainstherightanytimetorefusetoacceptforconversionanynon-U .S .-dollarcurrencyortomakeanynon-U .S .-dollardisbursement .YouunderstandandagreethatSchwabmay,initssolediscretion,provideforeigncurrencyserviceswithrespecttoonlyaselectgroupofnon-U .S .-dollarcurrencies .YoufurtheragreethatSchwabshallnotberequiredtotakeanyactionthatmaybeincontraventionofapplicablelawsandregulations .
You understand and accept any and all risk of foreign currency fluctuations with transactions that will affect the balances in your Accounts with Schwab. You also assume risk of currency fluctuation and loss on any items returned to Schwab and further agree to reim-burse Schwab for any deficiency, loss or expense incurred on your behalf. You agree that Schwab shall not be liable for any expense, claim, loss or damage suffered by you or any third person in connection with the above-mentioned currency transactions.
YouauthorizeSchwabtochargeyourAccountsforanyfeesincurredbySchwabinarrangingnon-U .S .-dollaroutgoingorincomingwires,checksandelectronicpaymentsofanykindtoyou,aswellasanycurrencyconversiontransactionoranyfeeimposedbybanksforhandlingnon-U .S .domesticitems .Youalsoautho-rizeSchwabtochargeyourAccountsforanyandallexpenses,fees,chargesorpenaltiesincurredbySchwabasaresultofyourreturneditems .IntheeventthattheamountsinyourAccountsareinadequatetocovertheseexpenses,youagreethatanyremainderowedtoSchwabisimmediatelydueandpayable .
Finally,youagreetoindemnifyandholdharmlessSchwabfromanyexpense,claim,lossordamagesufferedbyyouorathirdpartyrelatingtothoseareasofliabilityexpresslydisclaimedorrestrictedabove .
4. Residency StatusIfapplicable,youagreetocompleteSubstituteFormW-8BENorotherapplicableformstoopenyourSchwabOneInternational®Account .YoualsoagreetonotifySchwabintheeventyourresidencystatuschanges .
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5. Account Control CertificationsYouacknowledgethatthisAccountAgreementandyourSchwabOne®AccountmaybesubjecttoU .S .economicsanctionsandembargolaws,including,butnotlimitedto,theTradingWiththeEnemyAct,theInternationalEmergencyActandsimilarlaws,violationsofwhichmaybesubjecttoU .S .civilandcriminalpenalties .YouspecificallyrepresentandwarrantthatyouhavenotbeendesignatedbytheU .S .DepartmentofTreasury’sOfficeofForeignAssetsControl(OFAC)asaSpeciallyDesignatedNationalorblockedperson,thatyouhavenoreasontobelievethatyouwouldbeconsideredablockedpersonbyOFAC,andthatyouarenotactingasagentofanysuchperson .Youfurtherrepresentandwarrantthatyouarenotemployedby,actingasagentoforpartiallyownedorcontrolledbyagovernment,agovernment-controlledentityoragovernmentcorporationexceptasyouhaveindicatedonyourAccountApplicationwithSchwab .
6. Errors or Questions About Your Schwab One International® Account Transactions
Ifyouthinkyourstatementorreceiptiswrong,orifyouneedmoreinformationaboutatransactionlistedonthestatementorreceipt,callusatonceusingoneofthefollowingtelephonenumbers:
Asia +1-415-667-8400 outsidetheU .S .
1-877-686-1937 insidetheU .S .
Europe,LatinAmerica,MiddleEastandotherregions
+1-602-355-7300 outsidetheU .S .
1-800-362-1774 insidetheU .S .
Youmayalsowritetousat:SchwabInternationalServices,211MainStreet,SanFrancisco,CA94105,USA .
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PCRAaccountholders,PASplan-levelcustodyaccountholders,PensionTrustandCompanyRetirementaccountholdersaresubjecttoalltermsandcondi-tionsintheSchwabOne®AccountAgreementasamendedfromtimetotime,exceptfor:(1)accountminimumsandreferencestotheapplicablePricing Guide;(2)the“MarginandShortAccountAgreement”and“DisclosureofCreditTermsandPolicies”sec-tionsoftheapplicableAccountAgreement;(3)anyreferencestoVisa®andVisa®DebitCard;and(4)RemovalofNon-PubliclyTradedSecuritiesFromYourAccount .TheremaybeadditionalprovisionsandamendmentsthatdonotapplytoPCRAaccountholdersand/orPASplan-levelcustodyaccounthold-ers .ContacttheDedicatedPCRACallCenterat1-888-393-PCRA(7272)ifyouareaPCRAaccountholderwithquestionsaboutapplicableprovisionsandamendments .ContactaSchwabrepresentativeat1-800-231-2855ifyouareaPASplan-levelcustodyaccountholderwithquestionsaboutapplicableprovi-sionsandamendments .PCRAaccountholdersandPASplan-levelcustodyaccountholdersshouldrefertotheCharles Schwab Corporate and Retirement Services Pricing Guideforinformationrelatedtopricing .
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