Schwab One Account Agreement

7/27/2019 Schwab One Account Agreement

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January 2013

Please read this important inormation

careully.

Schwab One Account

Agreement

Inormation about your:

SchwabOneAccount

SchwabStockBuilderPlan

SchwabOneInternationalAccount


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Contents

Schwab One Account Agreement 5

Introduction 5

Definitions 5

Schwab One Services 10

1MinimumRequirementstoOpenanAccount 10

2IncomeonFreeCreditBalance 10

3FloatDisclosure 17 4AuthorizationLimit 19

5ServicesandFees 19

6ReturnedItems 23

7WhenCheckDepositsAreAvailableforWithdrawalorTransfer 23

8UnauthorizedWireTransfers,MissingChecks,UnauthorizedSignaturesandAlterations 23

9VisaCard,CashWithdrawalsandCheckTransactions 24

10PresentingSchwabOneChecks 24

11OurLiabilityforFailuretoCompleteTransactions 25

12PaymentofCashTransactions 25

13TransferringFundsBetweenSchwabAccounts 25

14AuthorizationtoChargeBrokerageAccounts 26

15StopPaymentOrders 26

16YourRighttoStopPaymentofPreauthorizedTransfers 28

17Statements 29

18CheckCopies 29

19UnclaimedProperty 29

20NatureofObligations 30

21ErrorsorQuestionsAboutChecking

Transactions 3022BusinessDays 31

23ConsumerElectronicCheckRepresentment 31

24ErrorsorQuestionsAboutYourElectronicFundTransactions 33

25UseofCheckImagesandSubstituteChecks 34

26ChangestoTheseRightsandResponsibilities 35

27RefusaltoHonorChecks 35

28WireTransfersandAutomatedClearingHouse(ACH)Transfers 35

29ReceiptofDepositsandTransfers 38

30MultipleSigners 38

31CheckLegends 38

32DemandDrafts 38

33Stale-DatedChecks 38


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34PostdatingOrders 38

35CheckProcessingOrder 39

36FacsimileSignatures 39Brokerage Services 39

1ProvisionofServices 39

2DisclosureofCreditTermsandPolicies 40

3CommissionsandFees 40

4RulesandRegulations 41

5UseofAccount 41

6Payment,EquityDeposit,SettlementandLiquidation 41

7PaymentofIndebtedness 42

8SecurityforIndebtedness 43

9ShortSales 4310InterestonDebitBalances 44

11PledgeofSecuritiesandOtherProperty 44

12LoanConsent 44

13Liquidation 45

14Remittance 46

15YourResponsibilityConcerningtheSaleofControlorRestrictedSecurities 46

16YourResponsibilityforUnderstandingTermsofSecurities 47

17AccuracyofAccountInformation 48

18CustodialAccounts 48

19JointorMultiplePartyAccounts 49

20AccountConversion 50

21Termination 50

22ApprovalofApplication,CreditVerificationandAccountInformation 50

23GoverningLaw 51

24Assignment 51

25Arbitration 52

26LossesDuetoExtraordinaryEvents 55

27PhoneChannelAccess 55

28ProvisionofMarketData 56

29Non-PubliclyTradedSecuritiesandWorthlessorNon-TransferableSecurities 56

30OrderEntryServices 60

31InvestmentAdvice 62

32MarketandLimitOrders 63

33NoRecommendationofDayTrading 64

34Good-till-CanceledOrders 64

35PrivacyPolicy,After-HoursTradingandOtherTermsandDisclosures 65


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36OrderRoutingandExecution 67

37OrderChangeorCancellationRequests 68

38MutualFundFees,Orders,DistributionsandRedemptions 69

39Notification 71

40TradeReports,Confirmations,StatementsandOtherAccount-RelatedCommunications 72

41ConsenttoElectronicDeliveryofRecordsandRegulatoryInformation 73

42UnrelatedBusinessTaxableIncomeProvisions(UBTI) 73

43MonitoringConversations 74

44TradingorDisbursementRestrictions 74

45Separability74

46EntireAgreement,AmendmentandWaiver 7447CertainAcknowledgments 75

48DisclosureofAccountInformation 76

49SIPCProtection 76

50Cash-in-LieuPayments 77

51Interest,DividendandOtherPayments 77

52Back-UpWithholding 77

53AuthorizationsGrantedtoInvestmentAdvisors 77

54ElectronicCopies 78

55OptionalDividends 78

56ProcessingandExecutionofElectronicTransactions 78

57IndependentBranchLeadersWhoMayServiceYourAccount 78

Margin and Short Account Agreement 79

Disclosure o Credit Terms and Policies 79

1InterestCharges 80

2DailyMarginInterestRate 80

3CompoundingInterestCharges 81

4InitialMarginRequirements 81

5MarginMaintenanceRequirements 82

6ShortOptionPositions 83

7ShortSales 83 8LiensandLiquidation 85

Schwab StockBuilder Plan 86

1ProvisionofSchwabStockBuilderPlan 86

2EligibleSecurities 86

3EligibleCashDistributionsforReinvestment 86 4DividendReinvestmentTransactionsin

EligibleSecurities 87

5PartialShares 87


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6ConfirmationsonStatements 88

7ContinuingEffectofAuthorization;Termination 88

8AutomaticDividendReinvestmentTransactionsinTheCharlesSchwabCorporationStock 88

Electronic Services Agreement 89

1UseofElectronicServices 89

2RisksofElectronicTrading 90

3FastandVolatileMarketConditions 91

4FinancialMarketInformation;NoWarranty 91

5LimitationsofLiability 93

6ConsenttoEmailCommunicationsandOptingOut 94

7UseofProprietaryInformation 95

8UseofQuotes 95

9OrderChangeorCancellationRequests 95

10NoLegalorTaxAdvice 96

11InvestmentAdvice 96

12Access,PasswordsandSecurity 97

13DataTransmission 97

14UseofSoftware,Programs,ApplicationsorOtherDevicestoAccessElectronicServices 98

15Subscription,ServiceandUseFees 98

16AccountRestrictions 99

17Indemnification 99

18OurAbilitytoTerminateElectronicServices 99

19ElectronicCommunications 100

20General 101

21Modifications 101

22GoverningLaw 101

23Third-PartyBeneficiaries 101

Schwab One International Account Agreement 102

1Fees 102

2MinimumInitialDeposit 102

3AdministrationofForeignCurrencyConversionTransactions 102

4ResidencyStatus 103

5AccountControlCertifications 103

6ErrorsorQuestionsAboutYourSchwabOneInternationalAccountTransactions 104

7AustraliaDisclosure 104

Applicability to Other Accounts 105

1SchwabPersonalChoiceRetirementAccount(PCRA)andRetirementBusinessServices(RBS)Plan-LevelCustodyAccount 105


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Schwab One Account Agreement

Introduction

Thispublicationcontainsimportanttermsandcondi-

tionsthatapplytoyourSchwabOneAccountPlease

readthispublicationcarefullyandretainitforfuture

reference

CharlesSchwab&Co,Incisamemberrmofthe

FinancialIndustryRegulatoryAuthority(FINRA)As

such,wearerequiredtoinformyouoftheavailabilityofaFINRAInvestorBrochure,whichincludesinforma-

tionontheFINRAPublicDisclosureProgramYoumay

contacttheFINRApublichotlineat1-800-289-9999

orontheInternetatwwwnraorg

SummaryTheSchwabOneAccountconsistsof

BrokerageServicesandoptionalcheckingservices,andaVisaDebitCardissuedbyBNYMellon

InvestmentServicingTrustCompanyTheVisaDebit

CardtermsaresetforthintheCharles Schwab & Co.,

Inc. VisaDebit Card Agreement and Disclosure

StatementIfyoudecidetobecomeaVisaDebit

Cardholder,youwillreceiveyour Charles Schwab &

Co., Inc. VisaDebit Card Agreement and Disclosure

Statementwithyournewcard

YoumayusetheVisaDebitCardandcheckstopay

forgoodsandservicesortowithdrawcashfromyour

SchwabOneAccount

WewilldeductchecktransactionsfromyourSchwabOneAccountinthefollowingmanner:

Chargeswillbemade,rstagainstthecashassets

inyouraccount,whichmayconsistofaFreeCredit

Balance,depositsintheBankSweepfeature,or

sharesofaSchwabSweepMoneyFundoranother

SchwabMoneyMarketFund;then Iftheamountofthedebitexceedsyourcash

assets,wewillextendcredittoyoutotheextentof

theAvailableMarginLoanValueofyourmarginable

securities

WewillpayinterestonyourFreeCreditBalanceawait-

inginvestment,andwewillchargeinterestonamountsyouoweus

Defnitions

AsusedintheSchwabOneAccountAgreement,the

termslistedbelowaredenedasfollows:

AccountAccountmeansthebrokerageAccount

establishedunderyourAccountApplicationand

AccountAgreement


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Accounts o Your HouseholdAccountsofYour

Householdareaccountsthathavebeenlinkedin

accordancewithSchwabshouseholdingguidelines

Schwabmakesareasonableefforttoautomaticallylinkqualiedaccountsofpersonswiththesame

lastnameatthesamehomeaddress,including

accountsheldatcertainSchwabafliates

Schwabaggregatesthebalancesandactivitiesof

AccountsofYourHouseholdtodetermineforbroker-

ageaccounts:commissionrates,theinterestratesthatcertaincashbalancesreceive,whetherthose

accountsmayqualifyforcertainfeewaivers,and

whetherthoseaccountsmayqualifyforcertain

benetsorfeatures(HouseholdCalculations)

Schwabmayconsiderotheraccountstobeinyour

householduponyourrequestifaccountholdersareinthesamefamily,thereisadependentrelation-

ship,orincertainothersimilarinstancesat

SchwabsdiscretionYouareresponsibleforidenti-

fyingaccountsthatshouldbelinkedforpurposesof

determiningAccountsofYourHouseholdand

HouseholdCalculationsForexample,ifyouorother

membersofyourfamilywhoresideatyourhomeaddresshaveadifferentlastname(includinga

spouse,ifapplicable),youneedtocontactSchwab

torequestthatwecombineyouraccountsforpur-

posesofHouseholdCalculationsIfanaccountis

addedtotheAccountsofYourHousehold,any

impactonHouseholdCalculationsmaynottake

effectuntilthefollowingquarter

ATM WithdrawalaTransactioninwhichyou

receivemoneyfromanATM

Authorization LimitThemaximumamountyou

maywithdrawfromyourSchwabOneAccountusing

checks

Available Margin Loan ValueTheamountofcredit

wemayextendtoyoubasedonthevalueof

marginablesecuritiesheldinyourMarginandShort

Account

BankBNYMellonInvestmentServicingTrust

(IST)Companyand/oritsafliates

Banking DayATMwithdrawals:TheBankuses

sevenBankingDayseachweekforpurposesofthe

securitylimitsonthenumberandamountofwith-

drawalsfromATMsyoucanmakeBankingDays

beginatmidnight,easterntime

Cashadvances,purchasesandauthorizations:The

BankusessixBankingDayseachweekforpurposes

ofthesecuritylimitsonthenumberandamountof


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cashadvances,purchasesandauthorizationsyou

canmakeBankingDaysbeginat6:00pmeastern

timeTheperiodfromFridayat6:00pmtoSunday

at6:00pmeasterntimeiscountedasoneBankingDay

Bank ServicesCheckingaccountservices

providedbytheBank

BNY Mellon Investment Servicing Trust (IST)

CompanyTheentityresponsibleforadministra-tionoftheBankservicesprovidedhereunderBNY

MellonInvestmentServicingTrustCompanywas

formerlyknownasPFPCTrustCompany

Business DayBusinessDayisanydaythatthe

NewYorkStockExchangeandtheFederalReserve

BankofNewYorkareopen(Althoughourofces

maybeopenoncertainbankholidays,thesedays

arenotconsideredBusinessDaysforpurposes

relatingtothetransferoffunds)

Cash AccountThebasicbrokerageaccountwe

offer

Day TradingRegulartransmissionofintradayorderstoeffectbothpurchaseandsaletransac-

tionsinthesamesecurityorsecurities

Debit BalanceAnaccountbalancerepresenting

moneyowedtous

Debit CardTheSchwabOneVisacardisa

debitcard,notacreditcardThismeansthatpur-

chasesandcashwithdrawalsyoumakewiththe

cardwillbechargedagainstassetsinyourSchwab

OneAccount,ratherthanagainstalineofcredit

extendedbytheBank

Electronic Fund TranserAnytransferoffunds

initiatedorauthorizedbyyouthroughanelectronicpaymentsystemsuchastheAutomatedClearing

House(ACH)Network,includingtheelectronicfund

transfersyoucanmakewithaVisaDebitCardas

describedintheCharles Schwab & Co., Inc. Visa

Debit Card Agreement and Disclosure Statementor

theelectroniccheckconversionsthatoccurwhen

youauthorizeamerchantorotherpayeetomakea

one-timeelectronicpaymentfromyourAccount

usinginformationfromyourchecktopayforpur-

chasesorpaybills

FDICTheFederalDepositInsuranceCorporation

Free Credit BalanceDenedforpurposesofthisAgreementastheuninvestedcashinyourAccount,

minusthefollowing:(i)fundsnecessarytopayfor

purchasetransactionsduetosettlewithinthenext


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twoBusinessDaysafterthesweepdate;(ii)charges

toyourAccount,including,butnotlimitedto,Visa

transactions,ATMwithdrawals,ElectronicFund

Transfers,wiretransfersandcheckingtransactions;(iii)anyunpostedVisatransactions;and(iv)credit

balancesthataredesignatedascollateralforyour

obligations,suchasacashbalanceresultingfroma

shortsaleIndeterminingwhethertosweepfunds

intoyourCashFeature,wemay,butarenotobligated

to,offsetcreditsanddebitsagainsteachother

Proceedsfromthesaleofsecuritieswillnotbecome

partoftheFreeCreditBalanceuntiltheBusiness

DayfollowingsettlementdateCreditsthatresult

fromdividendsorinterestpayments,deposits,

wiredfunds,reorganizationactivitiesorothernon-

trade-relatedtransactionswillnotbecomepartof

theFreeCreditBalanceuntilthenextBusinessDay Good DeliveryThedeliverytousoffreelytransfer-

ablesecurities(thatis,properlyregistered,endorsed

andfullynegotiablestockorbondcerticates)

Household BalanceHouseholdBalancemeans

thetotalcombinedvalue,overagivenperiodof

time,intheAccountsofYourHousehold,includingmarginbalancesandotheroutstandingdebitbal-

anceslikemortgage,HomeEquityLineofCredit

(HELOC)andcreditcardbalancesForthepurpose

ofdeterminingcommissionrates,interestrates,

andfeewaivers,Schwabaddsupyourdaily

HouseholdBalancesthendividesthetotalamount

bythenumberofdaysintheapplicableperiod

Household CalculationsSchwabscalculation

offees,feewaivers,interestratesandother

benetsandfeaturesthatapplytotheAccountsof

YourHousehold

Long SaleThesaleofasecuritythatyouown

Margin and Short Account FeatureAddingthis

featuretoyourSchwabOneAccountallowsyouto

borrowfundsfromSchwab,usingacceptablesecuri-

tiesorcashascollateralfortheloanYoumust

havethisfeaturetomakeshort-saletransactionsor

totradeoptions Other PropertyMoney,instruments(including

certicatesofdepositandothernancialinstru-

ments)andanyotherpropertyorrights

Schwab AccountThebasicbrokerageaccountat

Schwabthatallowsyoutobuyandsellstocks,

bonds,mutualfundsandotherinvestmentsThisaccountdoesnotincludeBankServicessuchas

checksandVisa


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Schwab One Account AgreementTheagreement

youmakewithusandtheBankwhenyouopena

SchwabOneAccount,consistingoftheSchwab

OneApplication,thisSchwabOneAccountAgreementandanyotherwrittenagreements

betweenyouandusconcerningyourSchwabOne

Account,allasamendedfromtimetotime

Schwab One ApplicationTheapplicationyou

submittoopenaSchwabOneAccount

Schwab One ServicesTheBrokerageServices

andtheBankServices

Schwab Sweep Money FundOneoftheSchwab

moneymarketfunds,thesharesofwhich(generally

oraspartofaseparateclassofsweepshares)are

availableforautomaticinvestmentandredemption

throughyourAccountassetforthinthisAgreement

SecuritiesSecuritiesofanykindandnature,

includingthoseyoumaydepositorredepositwithus

foranyreason(includingsafekeeping),aswellas

uncerticatedsecurities,suchasmoneymarket

fundshares

Short SaleThesaleofasecurityyoudonotown

atthetimetheorderisplaced

Sweep BankAnFDIC-insureddepositoryinstitu-

tionthatmaybe,butisnotrequiredtobe,afliated

withTheCharlesSchwabCorporation,atwhich

interest-bearingDepositAccountsaremaintainedonyourbehalf

To close any or all transactionsTocompleteor

liquidateanyorallunsettledtransactions;tocancel

openorders;tosellanyoralllongSecuritiesand

OtherProperty,includingoptions;tobuyanyorall

SecuritiesandOtherPropertythatareshortintheSchwabOneAccountorrequiredfordelivery

againstanysaleorderorotherobligation;andto

purchaseoptioncontractstocloseanyoutstanding

shortoptionpositions

You/Your/Account HolderEachpersonwho

signstheSchwabOneAccountApplication

We/Us/Our/SchwabCharlesSchwab&

Co,Inc


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Schwab One Services

1. Minimum Requirements to Open an Account

Schwabmayestablishfromtimetotimeminimum

balancerequirementstoopenanAccountThemini-

mumdepositmayconsistofacheck,moneyorder,

ElectronicFundTransferand/ormarginablesecurities

2. Income on Free Credit Balance

YoumayearnincomeonFreeCreditBalancesinyourAccountthroughdifferentprogramsthatSchwab

offersinconnectionwithvariousaccounts,services

andproducts(each,aCashFeature)Eligibilityfora

particularCashFeaturewilldependonthenatureand

scopeofyourrelationshipwithSchwabanditsafli-

atesSchwabmaychangetheeligibilitycriteriafor

CashFeaturesonadvancewrittennoticetoaffectedclients,ormakecertainCashFeaturesavailableto

clientsthatdonototherwisemeetpublishedcriteria

EligibilitycriteriaforeachCashFeatureispublished

bySchwabfromtimetotime

Thisdescriptionof,andeligibilityrulesfor,theCash

FeatureisupdatedandpublishedbySchwabfromtimetotimeandincorporatedhereinandmadeaparthereof

YourAccountstatementswillreectthepaymentof

anyinterestandalltransactions(includingpurchases,

redemptions,dividends,dividendreinvestments,

depositsandinterest)resultingfromyourparticipa-

tioninaCashFeatureTheseAccountstatementsareprovidedinlieuofseparateconrmationsfortransac-

tionsresultingfromyourparticipationinaCashFeature

Changing Cash FeaturesYoumustdesignateoneof

theCashFeaturesastheCashFeatureforyour

AccountIfyoudonotdesignateaCashFeature,you

authorizeSchwabtousetheCashFeatureindicatedonyourAccountApplicationasthedefaultselection

BydesignatingaCashFeatureforyourAccount,you

authorizeSchwabtomakedeposits,withdrawcashor

purchaseandredeemsecuritiesinaccordancewith

theCashFeatureforwhichyourAccountiseligible

YoumaychangeyourCashFeatureelectionto

anothereligibleCashFeaturebycontactingSchwab

AsaconditiontochangingaCashFeature,thefunds

inyourpriorCashFeaturewillbetransferredtoyour

newCashFeatureInotherwords,Schwabwill

redeemallsharesinyourPrimaryFund(asdened

below)orwithdrawallfundsdepositedataSweep

Bank,asapplicable,andplacetheproceedsorthefundsinyournewCashFeature

Loss o Eligibility or Cash FeaturesIfyoubecome

ineligibleforaparticularCashFeature,thenyou


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authorizeSchwabtodesignatetheCashFeaturefor

whichyourAccountistheneligibleassetforthinthe

CashFeatureeligibilityrulesasupdatedandpub-

lishedbySchwabfromtimetotimeLossofeligibilitymayoccurasaresultofyourfailuretomeettheeligibil-

ityrequirementsorachangeintheeligibilityrequire-

mentsSchwabwillgiveyouadvancenoticebefore

replacingyourineligibleCashFeaturewithaneligible

CashFeature

TherearetwomethodsbywhichyouauthorizeSchwabtochangeyourineligibleCashFeaturetoaneligible

CashFeatureYouagreethatSchwabmayuseeither

methoduponadvancewrittennoticetoyou

Undertherstmethod,onthedatesetforthinthe

writtennotice,SchwabwillinvestyourFreeCredit

BalancesaccordingtothetermsofyournewCashFeatureInaddition,alldebitsincurredinyour

Account,includingsecuritiespurchases,charges,

transactionsandwithdrawals,willbesatisedbyrst

withdrawingfundsorredeemingsharesfromyour

no-longer-eligibleCashFeatureuntilthebalancesin

suchCashFeaturearedepletedSchwabwilloffset

creditsanddebitsasdescribedwithinthetermFreeCreditBalances,whichisdenedinyourapplicable

AccountAgreementAfterthebalancesinyourineli-

gibleCashFeaturearedepleted,debitswillbesatis-

edfromthefundsinyournewCashFeature

Underthesecondmethod,Schwabmay,withyour

consent,withdrawcashorredeemsecuritiesmaintainedintheineligibleCashFeatureandinvestordeposit

theproceedsinthereplacementCashFeatureYour

consentmaybeobtainedinadvanceinwritingwhen

youenrollforaserviceorproductForexample,ifyour

participationinaparticularserviceincludingafee-

basedserviceoroneofSchwabsinvestmentadvisory

servicesends,orifyouchangetheregistrationofyourAccount,Schwabmayactuponanypre-consents

youprovidedinwritingthatpermitthewithdrawalof

cashorredemptionofsecuritiesmaintainedinone

CashFeatureandinvestordeposittheproceedsina

replacementCashFeatureSchwabmayalsoobtain

yourconsentbynotifyingyouinadvanceinwritingof

anyproposedchangestoyourCashFeatureYouagree

torespondwithyourdenialwithin30daysafterreceiv-

ingournoticeorSchwabmaytreatyournon-response

asyourapprovalThisauthorizationwillremaineffective

untilyougivenoticetoustothecontrarySuchnotice

willnotaffectanyobligationsresultingfromtransac-

tionsinitiatedpriortoourreceiptofthenotice

Limited LiabilityIfSchwabfailstosweeporpay

interestonyourFreeCreditBalancesaccordingto

thisAgreement,Schwabsliabilityislimitedtothe


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Youauthorizeustoactasyouragenttopurchaseand

redeemmoneymarketfundsharesaccordingtothis

AgreementThisauthorizationwillremaineffective

untilyougivewrittennoticetoustothecontrarySuchnoticewillnotaffectanyobligationsresultingfrom

transactionsinitiatedpriortoourreceiptofthenotice

InvestmentsintheSchwabSweepMoneyFundsare

subjecttorestrictionsdescribedintheapplicable

SchwabSweepMoneyFundsprospectusFormore

completeinformationaboutaSchwabSweepMoneyFund,includingchargesandexpenses,readthe

fundsprospectuscarefullyAlthoughinvestmentsin

SchwabSweepMoneyFundsprovideameansof

earningareturnoncash,interestsinSchwabSweep

MoneyFundsareinvestmentsinsecuritiesthatmay

increaseordecreaseinvalueAninvestmentina

SchwabSweepMoneyFundisneitherinsurednorguaranteedbytheFederalDepositInsurance

Corporation(FDIC)oranyothergovernmentagency

TherecanbenoassurancethataSchwabSweep

MoneyFundwillbeabletomaintainastablenet

assetvalueof$100pershareIntheeventthata

SweepMoneyFundisnolongerabletomaintainthe

netassetvalueofitssharesat$100,thenyou

authorizeandinstructSchwab,withoutfurthernotice

toyou,toredeemallofyourSweepMoneyfund

sharesassoonascommerciallypracticableand

designateanewCashFeatureforwhichyourAccount

istheneligibleassetforthintheCashFeatureeligi-

bilityrulesasupdatedandpublishedbySchwabfromtimetotimePleasereviewthecurrentCashFeatures

DisclosureStatementformoreinformationaboutthe

risksassociatedwithsuchanevent

SchwabSweepMoneyFundsmay,totheextentper-

mittedbylaw,includemoneymarketfundsforwhich

Schwaboritsafliatesreceivetransactionandotherfeesforprovidingservices(suchasinvestmentadvi-

sory,administration,transferagency,distributionand

shareholderservices),andthesefeeswillvary

dependingonthemoneymarketfund(orshareclass)

usedNoportionofthesefeeswillreduceoroffset

thefeesotherwiseduetoSchwabinconnectionwith

theAccountunlessrequiredbylaw

Note:NotallSchwabmoneyfundsareSchwabSweep

MoneyFundsSchwabofferscertainproprietary

non-sweepmoneyfunds,includingSchwabValue

AdvantageInvestments, thatdonothaveasweep

featureUnlikeSchwabSweepMoneyFundshares,

sharesinthesefundsarenotautomaticallyredeemedtopayfordebits,includingsecuritiespurchases,

checks,Visaanddebitcharges,andothercharges

asmaybeapplicablefromtimetotimeSuchdebits


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andchargeswillcontinuetobesatisedasdescribed

underthedenitionofFreeCreditBalanceinthis

Agreement

Ifyourdebitsandchargescannotbesatisedinthe

mannerdescribedunderthetermFreeCreditBalance,

Schwabmay,butisnotobligatedto,redeemshares

ofproprietarynon-sweepmoneyfundsSchwabmay

chargeyouafeeeachtimeitredeemssharesunder

thesecircumstancesForaccountswiththemargin

feature,ifSchwabdoesnotredeemsharesofanavailableproprietarynon-sweepmoneyfundtosatisfy

adebit,youwillberesponsibleforanycorresponding

margininterestchargesthatmayapply

Bank Sweep FeatureTheBankSweepfeature

automaticallymakesdepositstoandwithdrawalsfrom

depositaccountsatanFDIC-insureddepositoryinsti-tutionafliatedwithSchwab(ie,aSweepBank)as

describedhereinIfyouparticipateintheBankSweep

feature,youauthorizeandinstructSchwab,asyour

agent,toestablishthefollowingdepositaccounts

(collectively,theDepositAccounts)attheapplicable

SweepBank:

ADemandDepositAccount(DDA);and

AMoneyMarketDepositAccount(MMDA)

YouappointSchwabasyouragentandcustodianto

establishandmaintainyourDepositAccountsatyour

SweepBankAsyouragent,Schwabwilldeposityour

FreeCreditBalancesinyourMMDASchwab,asyouragent,maytransferfundsfromtimetotimebetween

yourDDAandyourrelatedMMDAYouagreethat

Schwabmayperiodicallyestablishaminimumamount

tobemaintainedinyourDDAtosatisfydebitsinyour

Account

InthecaseoftheBankSweepfeature,theFreeCreditBalancesofonedollar($1)ormoreinyourAccount

willbeautomaticallydepositedinyourDepositAccounts

afterthecloseofbusinessonthatBusinessDayand

generallywillnotbeginearninginterestuntilthe

followingBusinessDayProceedsfromthesaleof

securitieswillbedepositedintoyourDepositAccounts

theBusinessDayfollowingsettlement,providedthatthesecuritiessoldhavebeenreceivedingooddeliv-

erableformpriortoSettlementDateSchwabhas

solediscretiontochangewhenandhowoftensweeps

occuruponadvancewrittennoticetoyou

IfwehavecreditedyourAccountforintereston

depositsinyourDepositAccountsthatresultfromacheckorotheritemthatislaterreturnedunpaid,we

willchargeyourAccountfortheamountofthis

interest


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Youauthorizeus,asyouragent,toautomatically

withdrawfundsfromyourDDAatyourSweepBankto

satisfyadebitbalanceinyourAccountYoualso

authorizeustomaketheseautomaticwithdrawalstopayforsecuritiestransactions,andtopayfor

ElectronicFundTransfers,wiretransfersandother

chargesIffundsinyourDDAarenotsufcientto

satisfyyourdebitsinyourAccount,youauthorizeus

totransferfundsfromyourrelatedMMDAtoyourDDA

tosatisfyyourdebits

Atanypointduringamonthinwhichtransfersfrom

yourMMDAapproachfederalregulatorylimits,you

authorizeSchwabtotransferallfundsfromyourMMDA

toyourrelatedDDAandtomakedepositsintoyour

DDAuntiltheendofthemonthYoualsoauthorize

Schwab,asyouragent,totransferfundsondeposit

inyourDDAtoyourMMDA(minusanyminimumbal-ance)atthebeginningofthefollowingmonth

Youagreetoholdusharmlessifwedonotmake

suchautomaticwithdrawalsIfyouintendtosend

fundstosettlesecuritiestransactions,wemust

receivethesefundsontheBusinessDaybeforethe

SettlementDatetopreventanautomaticredemptionIfthereareinsufcientfundsinyourDeposit

Accounts,andyouownsharesinothermoneymarket

funds,wewillredeemsuchsharesasnecessary

UnlikeSchwabSweepMoneyFundsharesavailable

undertheMoneyFundSweepfeature,sharesinthe

SchwabValueAdvantagefundsarenotautomatically

redeemed,butwereservetherighttoredeemsuchsharesandchargeafeeforthisservice

YourSweepBankwillpayinterestonyourdepositsin

yourDepositAccountsataninterestratesetatthe

discretionofyourSweepBankTheratespaidbythe

SweepBanksdependonthetierintowhichyour

HouseholdBalance,oryourassetsforthisAccount,oryourbalancesubjecttointerestfalls(oracombina-

tionofthesefactors,atoursolediscretion)Atieris

arangeofhouseholdorAccountassetsorbalances

subjecttointerest(oracombinationofthesefactors,

atoursolediscretion);differentratesmayapplyto

differenttiersTheSweepBanksarenotobligatedto

paydifferentinterestratesondifferenttiersSchwabmaychangethetiersfromtimetotimeThetiersare

publishedbySchwabfromtimetotimeTheratesmay

changedailyInterestwillaccrueonAccountbalances

fromthedaytheyaredepositedintoDepositAccounts

atyourSweepBankthroughtheBusinessDaypreced-

ingthedateofwithdrawalfromDepositAccountsat

theSweepBankInterestwillbecompoundeddaily

andcreditedthe15thofeachmonth(orthefollowing

BusinessDayifthe15thisnotaBusinessDay)


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16

IntheeventthatSchwabBank(oranyotherSweep

BankthathasbeensubstitutedforSchwabBankin

theBankSweepfeature)isnolongerwillingorableto

acceptdepositsfromSchwabbrokerageclientsundertheBankSweepfeature,andnootherSweepBankis

availabletoacceptyourfunds,youauthorizeand

instructSchwabtowithdrawallofyourdeposits

maintainedthroughtheBankSweepfeatureand

temporarilydesignatetheSchwabGovernmentMoney

Fund(orsuchotherfundthatmayreplacesuch

fund)asyourCashFeatureAtsuchtimeasSchwab

BankoranotherSweepBankbecomesavailableto

acceptyourfunds,youauthorizeandinstructSchwab

todesignatetheBankSweepfeatureasyourCash

Feature,redeemallofthesharesofthetemporarily

designatedsweepfundanddeposittheproceedsin

accordancewiththeproceduresoftheBankSweepfeatureSuchchangeswillnotaffectanydirectcheck-

ingorsavingsrelationshipyoumayhavewithSchwab

BankoraSweepBank

Insuchcases,Schwabwillprovideyounoticeofthe

changeinyourCashFeatureassoonaspracticable

Suchnoticemaybeincludedinyourmonthlyaccount

statement

ThedisclosurestatementdescribingtheBankSweep

feature,asupdatedandpublishedbySchwabfromtime

totime,isincorporatedhereinandmadeaparthereof

Schwab One Interest FeatureTheSchwabOne

InterestfeaturepaysyouinterestoncashawaitinginvestmentIfyouarereceivinginterestfromSchwab

undertheSchwabOneInterestfeature,youagree

thatFreeCreditBalancesinyourAccountaremain-

tainedforinvestmentpurposes,andnotsolelyforthe

purposeofreceivingsuchinterestSchwabreserves

therighttostoppayinginterestonyourAccount,

closeyourAccountortakeanyotheractionifSchwab,initsdiscretion,concludesthatyourFreeCredit

Balancesaremaintainedsolelyforthepurposeof

receivinginterest

Ifyoureceiveinterestfromus,wellpayintereston

yourFreeCreditBalancesawaitinginvestmentatan

interestratewesetatourdiscretionTheratewepaydependsonthetierintowhichyourHousehold

Balance,oryourassetsforthisAccount,oryour

balancesubjecttointerestfalls(oracombinationof

thesefactors,atoursolediscretion)Atierisarange

ofhouseholdorAccountassetsorbalancessubject

tointerest(oracombinationofthesefactors,atour

solediscretion);differentratesmayapplytodifferent

tiersThetiersaresetforthintheCharles Schwab

Pricing GuideTheratesmaychangedaily


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18

WhenSchwabreceivesarequestforadistribution

fromyourAccount,Schwabgenerallyprocessesthe

requestwithintwoorthreeBusinessDays(unlessthe

distributionisinconnectionwithanunusualeventsuchasdeathordivorce,inwhichcaseitgenerally

willtakelongertoprocesstherequest)Onthesame

daythattheprocessingiscompleted,theamountof

thedistributionwillbedebitedfromyourAccountThe

distributioncheckwillbewrittenandmailedonthe

followingBusinessDayYouagreeandacknowledge

thatSchwabwillearninterestbeginningonthedate

yourAccountisdebitedandendingonthedatethe

checkispresentedforpayment,thetimingofwhichis

beyondthecontrolofSchwabUponrequest,Schwab

willprovideyouaverbalupdatetodeterminethe

statusofyouroutstandingdistributionchecks

IfyourequestaSchwabMoneyLinktransferfromyourAccounttoanothernancialinstitution:(i)theamount

ofthetransferwillbedebitedfromyourAccountonthe

daythatthetransferprocessiscommenced;(ii)the

fundswillbereceivedbytheothernancialinstitution

withinonetotwoBusinessDaysofthedatethe

transferprocessiscommenced;and(iii)youagree

andacknowledgethatSchwabmayearnintereston

thatamountbeginningonthedateyourAccountis

debitedandendingonthedatetheelectronicfund

transferisreceivedbytheothernancialinstitution

andtherebydebitedfromSchwabsbankaccount

IfyouchoosetochangeyourCashFeaturefromone

CashFeaturetoanother,youwillgenerallystopearn-inginterestordividends,asthecasemaybe,onthe

dayofyourrequestIfyoudesignateanewCash

FeaturebeforethecloseofbusinessonaBusiness

Day,yourFreeCreditBalanceswillbeswepttoyour

newCashFeatureafterthecloseofbusinessthat

BusinessDay,andgenerallywillbeginearningdivi-

dendsorinterest,asthecasemaybe,onthefollow-

ingBusinessDayIfyoudesignateanewCash

Featureafterthecloseofbusinessoronanon

BusinessDay,yourFreeCreditBalanceswillbe

investedordepositedintoyournewCashFeature

afterthecloseofbusinessonthenextBusinessDay,

andgenerallywillbeginearningdividendsorinterestontheBusinessDayfollowingthenextBusinessDay

IfyourequestthatSchwabautomaticallysenddivi-

dends,interestorotherpaymentsdirectlytoyou,and

theAccounthasaSchwabSweepMoneyFundasa

CashFeature,netpaymentswillnotaccrueinterest

betweenthetimetheyarecreditedtotheAccount

andthetimetheyaredisbursedtoyou

IfyouremoveallCashFeaturesfromyourAccount,

youmaynotearnincomeontheFreeCreditBalances


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19

inyourAccountandyouagreethatSchwabmayretain

ascompensationforservicesyourAccountspropor-

tionateshareofanyinterestearnedonyourFree

CreditBalances

4. Authorization Limit

TheAuthorizationLimitisthemaximumamountyou

maywithdrawfromyourSchwabOneAccountusing

yourchecks,ACHorElectronicFundTransfers

SchwabmayputaholdonfundsinyourAccountorotherwiserestrictwithdrawalsortransfersfromthe

accounttoalimitthatislowerthantheAuthorized

Limit,ifthereisriskoffraudulent,unusualorunau-

thorizedactivitybasedoncertainparametersestab-

lishedbySchwabYourAuthorizationLimitis

calculatedeachBusinessDayandisthesumof:

YourFreeCreditBalance,thevalueofanySchwabSweepMoneyFund,andthevalueofcashbalances

depositedinaSweepBankinyourSchwabOne

Account;plus

TheAvailableMarginLoanValueofthemarginable

securitiesheldinyourMarginandShortAccount;

minus

TheamountofanyVisadraftsthathavebeen

authorizedbutnotyetpaid;and

Theamountrequiredtosettleanypendingsecuri-

tiespurchasesinyourMarginAccount;and

Accruedmargininterestthathasnotyetbeen

postedtoyourAccount;and

DepositsreceivedbyusforcredittoyourSchwab

OneAccountonwhichahold(asdescribedin

Section7)hasbeenimposed

Proceedsofthesaleofsecuritieswillnotbeincluded

intheAuthorizationLimituntiltheBusinessDayaftersettlementdate

5. Services and Fees

Enrollment in a Service

Schwaboffersanumberofaccounttypes,service

featuresandbenetpackages,eachofwhichis

referredtoasaServiceforpurposesofyourAccountAgreementEachServicemayhaveunique

feesandadditionaltermsandconditionsByenrolling

inaServiceorotherwiseusingaServiceandnot

discontinuingyourenrollmentinthatService,you

agreetoabidebythetermsandconditionsorsupple-

mentalagreement(TermsofService)applicableto

suchService,inadditiontothisAccountAgreement

Householding Guidelines

UnlessyounotifySchwabotherwise,Schwabwill


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21

Schwabmayprovide(collectively,thePricing Guides,

andindividually,aPricing Guide)ThePricing Guides

arecompanionstothisAccountAgreementandare

incorporatedaspartofthisAccountAgreement

YouagreetopaytheServicefeesaswellasother

feesthatapplybasedonyourtransactions,activities

andrequests,assetforthinthePricing Guideappli-

cabletoyouraccountorasSchwabotherwiseinforms

youTheseotherfeesmayinclude,butarenotlimited

to,thefollowing:

Commissions,transactions(includingmutualfunds)

andorderhandlingfees;

Accountservicefees;

Cashieringservices;

Custodyofcertainassets;

Reportsrelatingtoyouraccountrequestedbyyouor

thatarerequiredbylaw;

FeesassociatedwithtransactionsinSchwabpropri-

etarynon-sweepmoneyfunds(includingSchwab

ValueAdvantageInvestments); Terminationandtransferfees;and

Chargesforfailingtomaintainminimumbalance

requirements

SomeServicesmayhaveaspecialfeeschedulethatis

notincludedintheapplicablePricing GuideIfso,Terms

ofServicethatyoureceiveatthetimeyoureceiveor

enrollintheServicewillincludethatadditionalpricing

informationYouagreetoreviewtheTermsofService

andnottouseornottocontinueuseoftheServiceif

youdonotagreetopaytheapplicablefees

Youagreetopayallapplicablefees,aswellasany

applicablefederal,stateandlocaltaxesSchwabs

failuretodeductfeesfromyourAccountatthetime

youincurthosefeesdoesnotwaiveSchwabsrightto

deductthosefeesfromyourAccountatalatertime

SchwabmaymodifyaPricing Guideorfeeschedule

applicabletoaServiceatanytimeSchwabwillpro-

videnoticetoyouofanychangeinfeeornewfeeapplicabletoyouinaccordancewithapplicablelaws

andregulationsYourcontinueduseofyourAccount

oraServicefollowingsuchachangeinfeeornewfee

willevidenceyourconsent

Somefeesmaybechargedtoadebitorcreditcard

ByauthorizingSchwabtochargeadebitorcreditcard,youareauthorizingSchwaboritsrespective

designatedrepresentativesoragentstoautomatically

continuechargingthatcard(oranyreplacementcredit


24/112

22

cardaccountiftheoriginalcardisrenewed,lost,

stolenorchangedforanyreasonbythecredit-issuing

entity,andsuchentityinformsSchwabofsuchnew

replacementcardaccount)forallfeesandchargesassociatedwithyourtransactionsortheproductsor

Servicesyoureceive

Schwabreservestheright,buthasnoobligation,to

negotiatedifferentpricesorarrangementsthanthose

describedinaPricing Guideorelsewherewith

accountholdersandwithunafliatedthirdpartiesactingasagentsforcertainaccountholders

Transer (Out) Fee and Account Minimums

Schwabmaychargeafeewhenyourequestatransfer

ofassetsfromtheAccounttoanothernancialinsti-

tution(aTOA),assetforthintheapplicable Pricing

GuideorfeescheduleATOAoccurswhenyourequest(eitherpersonallyorthroughanothernancialinstitu-

tion)thatSchwabtransfersecuritiesorcashoutof

theAccountATOAofalltheassetsintheAccountis

afullTOA;aTOAinanyamountlessthanthisisa

partialTOAYoumayobtainacopyoftheapplicable

Pricing Guideorfeeschedulebycalling1-800-435-4000,

orifyourAccountismanagedbyanInvestmentAdvisorandenrolledinSchwabInstitutional, call

1-800-515-2157Schwabreservestherighttolater

chargefeesorwaivetheminimumorfeesonany

accountincircumstancesthatwedeemappropriate

IfyourAccountfallsbelowtheminimumvalue

requiredtoopenthataccount,youauthorizeustotakesuchactionsasareappropriate,inourdiscre-

tion,tocloseyourAccountUnlessthereisnobal-

anceinyourAccount,youwillbegivennoticepriorto

ourclosingyourAccountYouauthorizeustoliquidate

sharesofanysecurity,including,butnotlimitedto,

sharesofanymutualfundsorotherentitieswhose

sharesareinacontinuousoffering(funds)heldforyouthatarenottransferredtotheissuerforany

reasonUponclosingyouraccount,wewilleithermail

toyoucerticatesorrequestabook-entrystatement

fromtheagentfornon-fundsecuritiesheldforyou(if

thephysicalcerticatesarebeingissuedandtrans-

ferredbythecompanyand/ortheTransferAgent)ora

checkreectingthecashbalanceinyouraccountat

thetimeitisclosed,orboth,inoursolediscretionIf,

afteryourAccountisclosedforanyreason,Securities

orOtherPropertyfromanysourcearecreditedtoyour

Account,youauthorizeustomailtoyoueithercerti-

catesfornon-fundsecuritiesoracheckreectingthe

cashbalanceinyourAccount,orbothIncomputingthecashbalanceofyourAccountatthetimeitis

closed,wereservetherighttodeductanyunpaid

feesorcharges(includingaccountservicefees),a


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24

fraudulentchecktransactionpromptly,butinnoevent

laterthan10calendardaysafterwesendormake

availabletoyounoticeofthetransactionoryour

Accountstatement,whicheverisreceivedrst,youagreethatthestatementactivityandyourAccount

balancearecorrectforallpurposeswithrespectto

thosetransactionsandwaiveallclaimsagainst

Schwabtorecoveranylossesresultingfromsaid

unauthorizedwiretransfer,forgery,alterationorfraud-

ulentcheck

Ifyoureporttousthatanunauthorizedwiretransfer,

forgery,alterationorotherunauthorizedchecktrans-

actionhasoccurredonyourAccount,youagreeto

cooperatewithusintheinvestigationofyourclaim

Thisincludesgivingusanafdavitcontainingwhat-

everreasonableinformationwerequireconcerning

yourAccount,thewireorchecktransactionandthecircumstancessurroundingtheloss

Youagreethatwehaveareasonableperiodoftime

toinvestigatethefactsandcircumstancessurround-

inganysuchclaimedlossandthatwehavenoobliga-

tiontoprovisionallycredityourAccount

9. Visa Card, Cash Withdrawals and Check

Transactions

Onapprovalofyourrequest,youwillbesentchecks

andaVisaDebitCardinaccordancewithyour

instructionsSchwabmaychargetransactionand

processingfeesthatwedeemappropriateTheVisa

cardwillremainthepropertyoftheBankandmaybe

canceledanytime,ornotbereissued,bytheBankor

SchwabwithoutpriornoticeByusingyourVisaDebit

Card,youagreetobelegallyboundbythetermsand

conditionssetforthintheCharles Schwab & Co., Inc.

VisaDebit Card Agreement and Disclosure Statement,

whichaccompaniesyournewcardIfthecheckfeatureisterminated,yourVisacardis

automaticallycanceled

Note:AnySchwabOnecustomerwholivesoutside

theUnitedStatesandwouldlikeaVisaDebitCard

mustopenaSchwabOneInternationalAccount

10. Presenting Schwab One Checks

AlthoughSchwabOnechecksarepayablethrough

theBank,checkcashingattheBanksbranchesis

notpermittedYoushouldnotexpecttheBanktocash

yourSchwabOnechecksastheBankwouldaBNY

MelloncheckNegotiateSchwabOnechecksatthe

bankwhereyoumaintainyourpersonalbankaccount


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25

11. Our Liability or Failure to Complete

Transactions

Ifwedonotcompleteatransactiontoorfromyour

Accountontimeorinthecorrectamountaccordingto

ouragreementwithyou,wemaybeliableforyour

lossesordamagesHowever,innoeventshall

Schwabbeliableforanyspecial,indirectorconse-

quentialdamages,evenifwehavebeeninformedof

thepossibilityofsuchdamages

Therearesomeexceptions(Theremaybeother

exceptionsnotspecicallymentionedhere)Wewill

notbeliable,forinstance,if:

TheAuthorizationLimitinyourSchwabOne

Accountisnotenoughtocoverthetransaction

Circumstancesbeyondourcontrol(suchasreor

ood)preventthetransfer,despitereasonable

precautionsthatwehavetaken

IncorrectElectronicFundTransferinstructionsare

providedtousbyanotherinstitution

AnyElectronicFundTransfer,AutomatedClearing

HouseNetworkoranyotherthird-partycommunica-tionsystemfromwhichSchwabrequiresinformation

tocompletetransactionswasnotworkingproperly

YourSchwabOneAccountisrestricted(becauseof

acourtorderorsimilarreason)andwearenot

permittedtomakethetransaction

Anerrorinpostinganamountortransactionoccursthatisbeyondourcontrol

12. Payment o Cash Transactions

SchwabOnecashtransactionssuchasVisadrafts,

ElectronicFundTransfersandchecksareprocessed

accordingtoSchwabsanditsagentsauthorization

andbankingproceduresVisadrafts,ElectronicFund

TransfersandATMWithdrawalsarepaidandcharged

againstthecashassetsinyourSchwabOneAccount

(whichmaybeaFreeCreditBalance,theproceedsof

redemptionofsharesofaSchwabSweepMoneyFund

oranotherSchwabMoneyMarketFund, orthepro-

ceedsofawithdrawalfromtheBankSweepfeature)Totheextentthedebitexceedsyourcashassets,we

willextendcredittoyouuptotheamountofyour

AvailableMarginLoanValueSuchmarginloanswill

besubjecttoalltermscontainedinourDisclosureof

CreditTermsandPolicies

13. Transerring Funds Between SchwabAccounts

TotransferfundsfromyourSchwabOneAccountto

anotherSchwabbrokerageaccount,Individual


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26

RetirementAccount(IRA)orQualiedRetirementPlan

(QRP)/KeoghBrokerageAccountinyourname,you

maywritealetterofauthorizationspecifyingthe

accountnumbersinvolvedandtheamountyouwouldliketransferred

YoumayalsowriteaSchwabOnecheck,payableto

thenameoftheaccounttowhichyouwouldlikethe

fundstransferred,ortoCharlesSchwab&Co,Inc

Youmustdesignateonthechecktheaccountnumber

towhichyouwouldlikethesefundsdepositedIncertainsituations,Schwabmayacceptverbalinstruc-

tionsorothernon-writtenauthorizationtoinitiate

transfersbetweenSchwabaccounts

14. Authorization to Charge Brokerage Accounts

YouauthorizeustochargeyourSchwabOneAccount

fortheamountofyourVisadrafts,ATMwithdrawals,ElectronicFundTransfersandchecktransactionsIf

thereismorethanoneaccountholder,youauthorize

ustopayfundsontheauthorityofonlyoneaccount

holderssignature

BycompletingtheappropriatesectionofyourSchwab

OneApplication,youmayauthorizeanotherperson(whoisnotanaccountholder)tosignSchwabOne

checksTorevokesuchauthorization,youmustgive

uswrittennoticeandreturntousthechecksgivento

theadditionalauthorizeduserYouwillberesponsible

forallchecktransactionsmadebyanyauthorized

personandforallVisatransactionsmadebyany

personyouhavepermittedtouseyourVisacard,cardnumberorPIN,eveniftheamountofactualuse

exceedsyourauthorizationorpermission

15. Stop Payment Orders

Ifacheckyouhavewrittenhasnotyetbeenpaid

fromyouraccount,youmayrequestastoppaymentbywritingto:

CharlesSchwab&Co,Inc

SchwabOneDepartment

MS03-408

9601EPanoramaCircle

Englewood,CO80112-3441

Orbycallingtoll-free:1-800-421-4488

Ifyoucall,wemayalsorequireyoutoputyourrequest

inwritingandgetittouswithin14daysafterthecall

Stoppaymentordersprocessedpriorto5:00pm

easterntimewillnormallybecomeeffectiveafterone

BusinessDayStoppaymentordersprocessedafter5:00pmeasterntimewillbecomeeffectiveaftertwo

BusinessDaysStoppaymentordersremainineffect

forsixmonthsforanycheckuptoorequaling$1,000;


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foranycheckover$1,000,astoppaymentorderwill

remainineffectfor30monthsStoppaymentorders

ontwoormorecheckswithconsecutivenumbers

(rangestops)willremainineffectfor30months

Wepurgethestoppaymentwithinonemonthafterthe

expirationofthestoppaymentorder,unlessyourenew

thestoppaymentorderIfthecheckisreceivedafter

thestoppaymentorderexpires,wemaypaythecheck

Tostoppayment,weneedthefollowing: Accountnumber

Exactamountofthecheck

Checknumber

Fortwoormorecheckswithconsecutivenumbers,

thebeginningandendingnumbers

Ifyougiveustheamountofthecheck,weneedthe

exactamountindollarsandcentsIfyougiveusthe

wrongamount,wemaypaythecheck

WewillchargeafeetoyourSchwabOneAccountfor

eachstoppaymentorderyouplace

Wewillnotbeliableforfailuretostoppaymentona

checkunlesswehavereceivedtimelynoticeaccord-

ingtotheaboveprocedures

Important:Undercertaincircumstances,paymentofa

checkcanbeenforcedevenwhileastoppaymentisin

effectForexample,ifaSchwabofceoranotherpersonorentitybecomesaholderinduecourseofacheck

thatyouaskustostop,wemaystillpaythecheck

Automated Clearing House (ACH) Stop Payment Orders

Fromtimetotime,youmayreceiveACHdebitsto

yourAccountfromsendersyoupreviouslyauthorized

todebityourAccountYoumayaskustostoppay-mentonafutureACHdebittoyourAccountifthe

itemhasntalreadybeenpaidYouareresponsiblefor

notifyingyoursenderthatyouhaverevokedyour

previousauthorizationforACHdebits

YoumayrequestanACHstoppaymentorderinwrit-

ingorbytelephoneIfyoucall,wemayalsorequireyoutoputyourrequestinwritingandgetittous

within14daysafterthecallStoppaymentorders

processedpriorto5:00pmeasterntimewillnor-

mallybecomeeffectiveafteroneBusinessDayStop

paymentordersprocessedafter5:00pmeastern

timewillbecomeeffectiveaftertwoBusinessDays

Stoppaymentordersremainineffectforsixmonths

Wepurgethestoppaymentwithinonemonthafter

theexpirationofthestoppaymentorder,unlessyou


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renewthestoppaymentorderIftheACHitemis

receivedafterthestoppaymentorderexpires,we

maypaytheitem

ForanACHstoppaymentorder,weneedthefollowing:

Accountnumber

ExactamountoftheACHdebit(ifknown)

WemayalsoneedthedatethepriorACHdebitfrom

thissenderpostedtoyouraccountsothatwecanobtainthecompanynameandcompanyidentication

numberusedbyyoursenderandprintedonyourstate-

mentOtherwise,youcanprovideuswiththecompany

nameandcompanyidenticationnumberifyouknowit

IfyougiveustheamountoftheACHdebititem,we

needtheexactamountindollarsandcentsIfyougiveusthewrongamount,wemaypaytheitemIf

youdonotknowtheamount,wecanplacethestop

paymentbasedonthecompanyidenticationnumber

ofthesender,butthismaystopallACHitemsfrom

thissenderIfyougiveusthewrongcompanyidenti-

cationnumberorifthesenderchangesthecompany

identicationnumber,wemaypaytheitem

WewillchargeafeetoyourSchwabOneAccountfor

eachstoppaymentorderyouplace

Foradditionalinformationonstoppingapreauthorized

transfer,includingthetelephonenumberandaddress

touse,seeSection16(YourRighttoStopPayment

ofPreauthorizedTransfers)

16. Your Right to Stop Payment o Preauthorized

Transers

Ifyouhavetoldusinadvancetomakeregularpay-

mentsoutofyourSchwabOneAccount,youcan

stopanyofthesepaymentsCallustoll-freeMondaythroughFriday,10:00amto7:00pmeasterntime,

at1-800-421-4488Oryoumaywritetousat:

CharlesSchwab&Co,Inc,SchwabOneDepartment,

MS03-408,9601EPanoramaCircle,Englewood,

CO80112-3441,intimeforustoreceiveyour

requestatleastthreeBusinessDaysbeforethe

paymentisscheduledtobemadeIfyoucall,wemayalsorequireyoutoputyourrequestinwritingandget

ittouswithin14daysafterthecallWewillchargea

feedirectlytoyourSchwabOneAccountforeach

stoppaymentorderyougive

Iftheseregularpaymentsvaryinamount,theperson

ororganizationthatyouaregoingtopayisrequiredtotellyou,10daysbeforeeachpayment,whenitwillbe

madeandhowmuchitwillbe


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30

OneAccount)aswellasuncasheddividendchecks

andotherSchwabcheckspayabletocustomersIn

general,personalpropertyisconsideredunclaimedif

youhavenotperformedatleastoneofthefollowingactivitieswithintheperiodoftimesetbythestate:

Madeadeposit,tradeorwithdrawalinyouraccount

Writtentoorotherwisecontactedusaboutyour

account

Otherwiseshownaninterestinyouraccount

Beforeweturnovertheassetsinyouraccount(if

any),wewill,asrequiredbylaw,sendanoticetothe

addresswecurrentlyshowonyouraccountstate-

mentYoumayrecoverunclaimedpropertyturned

overtoastatebycontactingthatstate

20. Nature o Obligations

TheobligationsoftheBankandSchwabareasstated

intheSchwabOneAccountAgreementNeitherthe

BanknorSchwabisliablefortheobligationsofthe

other

21. Errors or Questions About Checking

Transactions

Callusatoncetoll-freeat1-800-421-4488ifyou

thinkyourstatementiswrong,orifyouneedmore

informationaboutatransactionlistedonthestate-

mentOrwritetousatCharlesSchwab&Co,Inc,

SchwabOneDepartment,MS03-408,9601E

PanoramaCircle,Englewood,CO80112-3441

Overseascustomerscancalluscollectat

1-317-596-4502

Wemusthearfromyoupromptlyandinanyeventno

laterthan30calendardaysforchecktransactionsafterthedateyouaresenttherststatementon

whichtheproblemorerrorappearedIfyoutellus

orally,wemayrequireyoutosendusyourcomplaint

orquestioninwritingwithin10BusinessDaysWe

willneedthefollowinginformation:

Yourname,yourcompleteSchwabOneAccountnumber,thedateandamountofthetransactionand

thechecknumber

Adescriptionoftheerrorortransactionyouare

unsureaboutandanydocumentationrelatingto

yourclaimthatthetransactionwasinerrorExplain

asclearlyasyoucanwhyyoubelieveitisanerroror

whyyouneedmoreinformation

Thedollaramountofthetransactionorsuspected

error


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31

Youagreetocooperatewithourreasonablerequests

forinformationasweinvestigateyourclaimWemay

takeupto45BusinessDaystoinvestigateFortrans-

actionsforthepurchaseofgoodsandservicesatmerchantlocations,throughthemailorbytelephone,

andtransactionsthatoccuroutsidetheUnitedStates,

wemaytakeupto90BusinessDaystoinvestigate

Ifweaskyoutoputyourcomplaintorquestionin

writingandwedonotreceiveitwithin10Business

Days,wemaynotbeabletocompleteourinvestigationIfwedecidethattherewasnoerror,wewillsendyou

awrittenexplanationwithinthreeBusinessDaysafter

wenishourinvestigationYoumayaskforcopiesof

thedocumentsthatweusedinourinvestigation

Theproceduressetforthaboverelatingtodispute

resolutionandcreditingofaccountsapplyonlytocheckingtransactionsandnottotradingdisputes

22. Business Days

OurBusinessDaysareMondaythroughFriday,exclud-

ingUSstockexchangeholidaysBusinesshoursmay

varybydepartmentandofcelocation

23. Consumer Electronic Check Representment

Ifyouwriteacheckonapersonalaccountthatis

returnedunpaidbecauseofinsufcientoruncollected

funds,thedepositorofthecheckorthedepositors

bankmayresend(represent)thecheckelectroni-

callyThatis,thedepositororthedepositorsbankmaysendtheBankanelectronicinstruction(elec-

tronicrepresentedcheck)tochargeyourAccountin

theamountofthecheckIftheBankreceivesan

electronicrepresentedcheckfromthedepositoror

thedepositorsbank,theBankwillpayorreturnthe

electronicrepresentedcheckasiftheoriginalpaper

checkwerebeingrepresentedtoitThepartofthisAgreementtitledElectronicFundTransferswillnot

applytoanyelectronicrepresentedcheck

Foranelectronicrepresentedchecktobechargedto

yourAccount,allofthefollowingmustbetrue:

Theelectronicrepresentedcheckmustrelatetoa

papercheckonapersonalaccountthattheBank

returnedunpaidbecauseofinsufcientoruncol-

lectedfunds;

Thepapercheckmustnothavecontainedanunau-

thorizedsignatureoranalterationandmustnot

havebeenacounterfeit;

Youmustnothaveplacedastoppaymentonthe

papercheckafterBNYMellonISTreturneditunpaid

butbeforeitwascollectedelectronically;


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32

Thepapercheckmusthavebeenlessthan

$2,50000inamount;

Thepapercheckmusthavebeendated180daysorlessbeforethedateonwhichtheelectronicrepre-

sentedcheckissenttotheBank;

Theelectronicrepresentedcheckmustbeforthe

faceamountofthepapercheckonlyandmaynot

includeanycollectionfeechargedbythedepositor,

thedepositorsbank,oracollectionagency;

Thepayeeofthepapercheckmusthavegivenyou

noticethat,ifthepapercheckwasreturnedunpaid

becauseofinsufcientoruncollectedfunds,the

papercheckcouldbecollectedelectronically;

Theelectronicrepresentedcheckmusthavebeen

senttotheBanknomorethantwiceafterthersttimetheBankreturnedthepapercheck,ornomore

thanonceafterthesecondtimetheBankreturned

thepapercheck;

Theelectronicrepresentedcheckmustbeanitem

asdenedinRevisedArticle4oftheUCC(1990

OfcialText);

Theelectronicrepresentedcheckmustcontaina

pre-printedserialnumber;

Theelectronicrepresentedcheckmustindicateon

thefaceofthedocumentthattheitemwasreturned

duetonotsufcientfunds,NSF,uncollected

fundsorcomparablelanguage;and Theelectronicrepresentedcheckmustbedrawnon

aconsumeraccount

Youmayhavetherighttocauseustoreverseany

ineligibleorunauthorizedelectronicrepresented

checkthatwechargedtoyourAccountIfyouwantto

reverseanelectronicrepresentedcheckbecauseyouplacedastoppaymentonthepaperchecktowhich

theelectronicrepresentedcheckrelatesafterthe

Bankreturnedthepapercheckunpaidbutbeforeit

wascollectedelectronically,youmustnotifySchwab

within15daysafterwesendormakeavailabletoyou

theperiodicstatementthatreectspaymentofthat

electronicrepresentedcheckIfyouwanttoreverseanelectronicrepresentedcheckforanyotherreason,

youmustgiveSchwabanafdavitwithin15days

afterwesendormakeavailabletoyoutheperiodic

statementthatreectspaymentofthatelectronic

representedcheckInyourafdavit,youmustdeclare

andswearunderoaththattheelectronicrepresented

checkwasineligibleorunauthorizedIfSchwab

receivesyournoticeorafdavitwithinthe15-day

period,wewillrecredityouraccountwiththeamount


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ofthechargeWritetoSchwabat:CharlesSchwab&

Co,Inc,SchwabOneDepartment,MS03-408,

9601EPanoramaCircle,Englewood,CO80112-3441

Ifyouwishtostoppaymentofanyelectronicrepre-

sentedcheck,youmustfollowtheprocedurescon-

tainedinthisAgreementforstoppingpaymentof

checks,nottheprocedurescontainedinthesection

forstoppingpaymentonElectronicFundTransfers

24. Errors or Questions About Your ElectronicFund Transactions

Incaseyouthinkthatthereisanerrorinyourstate-

mentaboutanElectronicFundTransfer,callustoll-

freeassoonaspossibleat1-800-421-4488,Monday

throughFriday,10:00amto7:00pmeasterntime

OrwritetousatCharlesSchwab&Co,Inc,Schwab

OneDepartment,MS03-408,9601EPanorama

Circle,Englewood,CO80112-3441

Overseascustomerscancalluscollectat

1-317-596-4502

Wemusthearfromyounolaterthan60calendar

daysafterthedatewesenttherststatementonwhichtheproblemorerrorappearedIfyoutellus

orally,wemayrequireyoutosendusyourcomplaint

orquestioninwritingwithin10BusinessDaysWell

needthefollowinginformation:

Yournameandaccountnumber,

Adescriptionoftheerrorortransactionyoureunsureabout,

Aclearexplanationofwhyyoubelieveitsanerroror

whyyouneedmoreinformation,and

Thedollaramountofthetransactionorsuspected

error

Wewilltellyoutheresultsofourinvestigationwithin

10BusinessDaysafterwehearfromyouandwill

correctanyerrorpromptlyIfweneedmoretime,

however,wemaytakeupto45daystoinvestigate

yourcomplaintorquestion

IfyouareanewcustomerandtheerrororquestionconcernsanElectronicFundTransferthatoccurred

within30daysaftertherstdeposittotheSchwab

OneAccountwasmade,wewilltellyoutheresults

ofourinvestigationwithin20BusinessDaysafterwe

hearfromyouIfweneedmoretime,wemaytakeup

to90daystoinvestigate

Inaddition,wemaytakeupto90daystoinvestigate

iftheerrororquestionrelatestoanElectronicFund

TransferthatwasinitiatedoutsidetheUnitedStates


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orexpensethatyouoranyotherpersonmayincur

directlyorindirectlyasaresultofanyactiontakenby

ustoprocessacheckimageorsubstitutecheck

insteadoftheoriginalcheck,includingthedestruc-tionoftheoriginalcheck,asdescribedabove,tothe

extentpermittedbyapplicablelaw

26. Changes to These Rights and

Responsibilities

Fromtimetotime,therightsandresponsibilitiesinconnectionwithElectronicFundTransfersorVisa

DebitCardorATMtransactionsmaychangeWell

notifyyou,asrequiredbylaw,ofanychanges;how-

ever,werenotrequiredtonotifyyouinadvanceifthe

changeisnecessaryforsecurityreasons

27. Reusal to Honor Checks

NeitherwenortheBankisresponsibleforanyper-

sonsactioninrefusingtohonororacceptyour

checksorforanypersonsactionintakingposses-

sionofyourchecks

28. Wire Transers and Automated ClearingHouse (ACH) Transers

Sending Wire TransersThefollowingprovisions

applytowiretransfersyousendthroughusIfyou

haveaspecicagreementwithusforwiretransfer

services,theseprovisionssupplementbutdont

contradictthatagreementThisSendingWire

TransferssectiondoesnotapplytoAutomated

ClearingHouse(ACH)systemfundstransferservices

orSchwabMoneyLinkservices,whicharesubjectto

separatetermsandconditions

Awiretransferistheprocessofcarryingoutpayment

ordersthatleadtopayingabeneciaryThepayment

orderistheinstructionsyougiveusregardingawiretransferThebeneciaryisthepersonwhoreceives

thepaymentThebeneciarymaybeyouoranother

person

WemaychargefeesforsendingawiretransferFor

currentfees,call1-800-435-4000,orifyourAccount

ismanagedbyanInvestmentAdvisorandenrolledinSchwab Institutional, call 1-800-515-2157

Bysendingusapaymentorderinaformacceptable

tous,youauthorizeustoactonyourbehalftoiniti-

ateawiretransferAfterreceivingapaymentorder

fromyoubytheapplicablecutofftime,wewillacton

thepaymentorderbytransmittingpaymentinstruc-tionstotheapplicablebankWehavecutofftimesfor

processingpaymentordersWemaytreatpayment

orderswereceiveafteracutofftimeasifreceived


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thenextBusinessDayWetellyouourcutofftimes

uponrequest

Youwillindemnifyusagainstandholdusharmlessfromanddefendusagainstanylosses,claims,costs,

expenses,damagesorliabilities(including,butnot

limitedto,attorneysfees)arisingoutoforresulting

fromanyactiontakenbyusinrelianceuponinstruc-

tionsdeliveredtousinyournamethatweingood

faithbelievetobegenuineThisobligationwillsurvive

theterminationofthisAgreement

Youmustnotifyusatonceifyouthinkawiretransfer

shownonyourAccountstatementorothernoticeis

incorrectIfyoufailtonotifyusinwritingwithin10

calendardaysafterwesendormakeavailabletoyou

therstnoticeorstatementonwhichtheproblemor

errorappears,youagreethatthestatementactivityandyourAccountbalancearecorrectforallpurposes

withrespecttothesetransfersandwaiveallclaims

againstSchwabtorecoveranylossesresultingfrom

saidunauthorizedorerroneoustransfer

WemayrejectpaymentordersAnynoticeofrejection

(whethergivenorally,electronicallyorinwriting)willbeeffectivewhengivenWearentliabletoyoufor

therejectionorobligatedtopayyouinterestforthe

periodbeforeyoureceivethenoticeofrejection

Pursuanttogovernmentregulations,wemaybe

unabletosendawiretransferyourequestedtocer-

taincountriesortoindividualswhoarecitizensof

thosecountriesYouagreethatSchwabisnotliableforanylossesifthisoccurs

Youhavenorighttoamendorcancelapaymentorder

afterwereceiveitIfyouaskustodothis,wemay

makeareasonableefforttoactonyourrequestBut

wearentliabletoyouif,foranyreason,apayment

orderisntamendedorcanceledYouagreetoreim-burseusforanycosts,lossesordamagesthatwe

incurinconnectionwithyourrequesttoamendor

cancelapaymentorder

Thebeneciarysbank(includinguswhenwearethe

beneciarysbank)maymakepaymenttothebene-

ciarybasedsolelyontheaccountorotheridentifyingnumber,evenifthenameonthepaymentorder

differsfromthenameontheaccountWe,oran

intermediarybank,maysendapaymentordertoan

intermediarybankorbeneciarysbankbasedsolely

onthebankidentifyingnumber,evenifyouprovideus

withadifferentbanknameNeitherwenoranyother

bankhasadutytodeterminewhetherapaymentordercontainsaninconsistentnameandnumber

Thismeansthatyoumaynotrelyonthenameofthe

personorbankthatyouprovideustoensurepayment


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37

tothecorrectpersonAndifthecorrectperson

doesntreceivepayment,yourestillobligatedtopay

ustheamountofyourpaymentorder

Wemayselectanyintermediarybank,fundstransfer

systemormeansoftransmittaltosendyourpayment

ordersOurselectionmaydifferfromthatindicatedin

yourinstructions

Ifyourpaymentorderinvolvesacurrencyotherthan

USdollars,yourfundswillbeexchangedforsuch

othercurrencyatthecurrentrateofexchangeaccord-

ingtoourstandardproceduresCurrencyexchange

ratesuctuateovertimeandyouacknowledgeand

accepttherisksofsuchuctuationsbetweenthe

timeyousendusapaymentorderandthetimethe

wiretransferisnal

Receiving TransersWemayreceiveinstructionstopay

fundstoyouraccountThisincludeswiretransfers,

transfersthatmaybesentthroughanACHsystemor

processeddirectlytoanaccountwithusWemay

receivefundstransfersdirectlyfromthesender,

throughafundstransfersystemsuchasanACH

systemorthroughsomeothercommunicationssystem

ACH Provisional Payment RuleUnderACHrules,funds

transferssentthroughanACHsystemareprovisional

andmayberevokedpriortonalsettlementYou

agreetotheserules

IftheACHtransferisrevokedbeforenalsettlement

andwedontreceivenalsettlement,wemaychargeyourAccountforanyamountcreditedTheperson

whosentthepaymentorderisconsiderednottohave

paidyouIfthishappens,wedontsendaseparate

notice;wenotifyyouofthesecreditsandchargeson

yourAccountstatement

WenotifyyouthatwevereceivedwiretransfersandACHtransfersbylistingthemonyourAccountstatement

LiabilityIfwereobligatedtopayforlossofinterest

thatresultsfromourerrorordelayregardingyour

paymentorder,wecalculatecompensationasfollows:

WeusetherateapplicabletoyourAccount

Innoeventwillwebeliableforanyspecial,indirectorconsequentialdamages(evenifwehavebeen

informedofthepossibilityofsuchdamages),including,

withoutlimitation,lossofprotsorrevenue,except

asmayberequiredbyapplicablelaw

Compliance with Rules and LawsYouagreetocom-

plywithapplicablepaymentsystemrules,includingtheOperatingRulesoftheNationalAutomated

ClearingHouseAssociation(NACHA),andthelawsof

theUnitedStatesandanyotherapplicablelaw


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alreadybeenpaidTodoso,youmustplaceastop

paymentorderonit(Formoreinformation,see

Section15onStopPaymentOrders)

35. Check Processing Order

Wemayaccept,pay,certifyorchargetotheindicated

accountchecksandotheritemsinanyorderwe

chooseatourdiscretionWemayestablishdifferent

prioritiesorcategoriesforchecksandotheritems

andprocesschecksandotheritemsaccordingtotheprioritiesweestablishAsexamples,wemayprocess

checksintheorderwereceivethemattheprocess-

ingcenter,inchecknumberorder,orindollaramount

order(eitherfromhighesttolowestdollaramountor

fromlowesttohighestdollaramount)Wemayalso

usesomecombinationofthesemethodsWemay

changetheorderthatweusetoprocesschecksandotheritemsatanytimewithoutnoticetoyou

Whenyoudonothaveenoughavailablefundsinyour

Accounttocoveralltheitemspresentedthatday,

somemethodsmayresultinmoreinsufcientfunds

feesthanothermethodsWemaychooseourpro-

cessingmethodinoursolediscretion,regardlessofwhetheradditionalfeesmayresult

36. Facsimile Signatures

Ifyouchoosetouseafacsimilesignature,youmust

provideuswithaspecimenfacsimilesignatureof

eachpersonauthorizedtodosoYoureresponsible

foranywithdrawalfromyourAccountthatbearsorappearstoustobearyourfacsimilesignature,regard-

lessofbywhomorbywhatmeansthesignaturewas

placedonthecheckIfyouchoosetouseafacsimile

signature,youreresponsibleevenifyouhavenot

presenteduswithaspecimenfacsimilesignature,or

ifthesize,colororstyleofthecheck,orthesize,

colororstyleofthefacsimilesignatureisdifferent

fromthatofthecheckorfacsimilesignatureyouuse

Wemaypaythewithdrawalandchargeyouraccount

foritYouagreetocompensateusforalllosses,

claims,damagesorexpenses,includingreasonable

attorneysfees,thatresultfromourpaymentofa

withdrawalbearingafacsimilethatresemblesyourfacsimilesignature

Brokerage Services

1. Provision o Services

ToopenaSchwabOneAccount,youcompletean

accountapplicationWhenweapproveyourapplica-

tionandsubjectittocreditverication,wewillopena

SchwabOneAccountforyouandactasyourbroker


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topurchaseandsellsecuritiesforyourAccountand

onyourinstructionsWhentransferringassetsfrom

anotherrm,beadvisedthatwewillnotacceptor

honoranyoralorwritteninstructionsfromyoutopurchaseorsellsecuritiespriortoouractualreceipt

ofyourassetsandthecompletionofthetransfer

processYoumayinitiateordersrelatingtothetrans-

ferredcashand/orsecuritiesonlyafterthetransfer

processhasbeencompletedandtheassetshave

beenreceivedbySchwab

Wemayextendcredittoyouinaccordancewithappli-

cablelawsandregulationsandourDisclosureof

CreditTermsandPoliciesYouagreetousethis

creditprimarilyforbusinessandinvestmentpurposes

2. Disclosure o Credit Terms and Policies

AllmargintransactionsaresubjecttoourDisclosure

ofCreditTermsandPoliciesYouagreenottoenteran

orderforamargintransactionuntilyouhavereadand

understoodtheDisclosureofCreditTermsandPolicies

3. Commissions and Fees

Youagreetopayourcommissionsandtransaction,

processingandotherfeesastheyexistfromtimeto

timeandapplytoyourtransactionsandservicesyou

receiveSchwabsfailuretodeductfeesfromyour

Accountatthetimeyouincurthosefeesdoesnot

waiveSchwabsrighttodeductthosefeesfromyour

AccountatalatertimeSchwabmayacceptcustody

ofcertainassetsnotnormallyavailablethrough

Schwab;wewillchargefeesforthisserviceYouagree

topayallapplicablestateandlocalexcisetaxes

Schwabdoesnotchargetransactionfeesonpur-

chasesandredemptionsofsharesofcertainregis-

teredinvestmentcompanies,includingthose

participatingintheMutualFundOneSourceprogram

andothersthatdonotparticipateinMutualFund

OneSourcebutthataresoldwithouttransaction

fees,exceptasdescribedinthefollowingparagraph

Schwabisabletoeffectthesetransactionswithout

chargingatransactionfeebecausewereceiveremu-

nerationfromtheregisteredinvestmentcompanyand/oritsafliateforservicesrenderedbySchwabin

connectionwiththesesharesTheremunerationis

basedontheaggregatenetassetvalueofthese

sharesheldinSchwabcustomersaccounts

Furtherinformationwillbefurnisheduponrequest

Schwabmaychargetransactionfeesundercertaincircumstancesforwhichthecustomerhasbeenorwill

benotied,including,butnotlimitedto,Schwabsshort-

termredemptionpolicy,asineffectfromtimetotime


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4. Rules and Regulations

YourSchwabOneAccountandanytransactionsyou

makearesubjecttoourhousetradingrulesand

policiesandthefollowingrules,regulationsandpoli-

cies,allasmodiedoramendedfromtimetotime:

Applicablerules,regulations,customsandusage

ofanyexchange,market,clearinghouseorself-

regulatoryorganization;and

Applicablefederalandstatelaws,rules,regulationsandtreaties

5. Use o Account

Youmaynotuseyouraccountoranyaccount-related

servicetoprocessgamblingtransactions,ortoconduct

anyotheractivity,thatwouldviolateapplicablelawIfweareuncertainregardingthelegalityofanytransac-

tion,wemayrefusethetransactionorfreezethe

amountinquestionwhileweinvestigatethematter

6. Payment, Equity Deposit, Settlement and

Liquidation

YouagreetopayforalltransactionsyoumakeandallauthorizedtransactionsinyouraccountWhenyou

purchasesecuritiesonacashbasis,youagreetopay

forthesecuritiesbysettlementdayUnlessyoumake

otherarrangementswithyourlocalSchwabofce,we

mayuseavailablefundsinyourSchwabOneAccount

tosettleatransaction

Wemayrequireanequitydepositorafullpayment

beforeweacceptyourorderWhenyouselllong

securities,youmustownthesecuritieswhenyou

placetheorderYoualsoagreetomakegooddelivery

ofthesecuritiesyouaresellingbysettlementday

Ifyoudonotmakegooddeliveryofyoursecuritieswhenmakingasale,orifyoudonottenderthetotal

purchasepricewhenmakingapurchase,wemaytake

appropriatestepstocomplete,cancelorliquidatethe

transactionThismayincludepurchasingorborrowing

thesecuritiesnecessarytomakethedeliveryFailure

tomakegooddeliveryincludesthedepositofsecuri-

tiesbyyouwhicharelaterfoundtoberestricted,canceled,reportedlostorstolen,escheatedorother-

wisenotfreelytransferable

Youareresponsibleforalldebits,costs,commissions

andlossesarisingfromanyactionswemusttaketo

liquidateorclosetransactionsinyourSchwabOne

Account,orfromyourfailuretomaketimelygooddeliveryofsecuritiesIfyouknoworsuspectthatyou

havereceivedanoverpaymentoffundsorsecurities,

orifyouknoworsuspectthatSchwabhasnotyet


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collectedfromyourAccountafeeyouhaveincurred,

youagreetonotifySchwab,inwriting,assoonasyou

learnoftheoverpaymentoruncollectedfeeYou

furtheragreenottoremovetheoverpaymentoffundsorsecuritiesortheuncollectedfeefromtheaccount,

ortoreturntheentireoverpaymentoruncollectedfee

toSchwabifithasalreadybeenremovedfromyour

AccountYouagreethatyouarerequiredtoreturnthe

fullamountoftheoverpaymentoruncollectedfeeto

Schwab,notwithstandinganyoralrepresentations

madebyanySchwabrepresentativetothecontraryIf

youfailtodoso,youwillbecomeliabletoSchwab

notonlyfortheamountoftheoverpaymentoruncol-

lectedfee,butalsofortheinterestandexpenses

associatedwithitsrecovery

WemaytransferSecuritiesandOtherPropertyfrom

anynon-retirementbrokerageaccountinwhichyouhaveaninteresttoanyothernon-retirementbroker-

ageaccountinwhichyouhaveaninterest,regardless

ofwhetherthereareotheraccountholdersoneither

account,inordertosatisfydecienciesinanysuch

accountorifwethinkyourobligationsinanysuch

accountarenotadequatelysecured

Forourprotectionagainstcreditrisksandother

conditions,wemay,withoutpriornotice,decline,

cancelorreverseyourordersorinstructions,orwe

mayplacetrading,disbursementandotherrestric-

tionsonyouraccount

Ifweholdforyoubondsorpreferredstockinstreetnameorbearerformthatarecallableinpart,you

agreetoparticipateinanimpartiallotteryallocation

systemofthecalledsecurities,accordingtotherules

oftheFinancialIndustryRegulatoryAuthority

Youareresponsibleforpaymentofallfeeschargedto

yourAccountfromtimetotimeYouagreethatSchwabmayliquidatesecuritiesheldinyourAccount

tocoversuchfeesorotherindebtednessintheevent

thattherearenoavailablefundsinyourAccountYou

furtheragreetoberesponsibleforallcostsand

commissionsrelatedtosuchliquidationsInaddition,

youagreethatSchwabshallbeentitledtoapplyany

dividends,capitalgainspayments,interestpaymentsorotherincomingfunds,suchasfundsthatwould

otherwisebeinvestedthroughtheAutomatic

InvestmentPlanordividendreinvestment,tocover

feesorotherindebtednesstoSchwab

7. Payment o Indebtedness

Youagreetomakepaymentofanyindebtedness

relatedtoyourSchwabOneAccount,including,but

notlimitedto,anysuchindebtednessthatresults


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Ifyouareunabletocoverashortsecurityposition

(eitherthroughdeliveryofthesecurityorthroughour

buyinginthesecurity)inenoughtimesothatwe

candeliverthesecuritytothelender(towhomweareobligated),youagreetoreimburseusforthelosses

wesustainasaresultofyourfailuretodeliverthe

security

10. Interest on Debit Balances

Wewillchargeinterestonyourdebitbalanceaccord-ingtoourDisclosureofCreditTermsandPoliciesWe

postaccruedbutunpaidinterestchargestoyour

AccounteachmonthWecompoundtheinterestas

describedinourDisclosureofCreditTermsand

PoliciesWemayalsochargeinterestondebitbalances

inyourCashAccountasdescribedintheDisclosure

ofCreditTermsandPolicies(seeSection2)

11. Pledge o Securities and Other Property

Wemaypledge,re-pledge,hypothecateorre-

hypothecate,eitherseparatelyortogetherwith

Securitiesofothercustomers,allSecuritiesand

OtherPropertythatyou,noworinthefuture,carry,holdormaintaininyourMarginandShortAccount

ThevalueoftheSecuritiesandOtherPropertywe

pledgeorre-pledgemaybegreaterthantheamount

youoweus,andwearenotobligatedtoretaininour

possessionandcontrolfordeliverythesameamount

ofsimilarSecuritiesandOtherProperty

12. Loan Consent

YouagreethatSecuritiesandOtherPropertyheldin

yourMarginAccount,noworinthefuture,maybe

borrowed(eitherseparatelyortogetherwiththeprop-

ertyofothers)byus(actingasprincipal)orbyothers

SchwabmayplaceanysecurityheldinyourAccount

intotheMarginAccountportionofyourAccountYou

agreethatSchwabmayreceiveandretaincertain

benets(including,butnotlimitedto,intereston

collateralpostedforsuchloans)towhichyouwillnot

beentitledYouacknowledgethatincertaincircum-

stances,suchborrowingscouldlimityourabilityto

exercisevotingrightsorreceivedividends,inwholeorinpart,withrespecttotheSecuritiesandOther

PropertylentYouunderstandthatforSecuritiesand

OtherPropertythatarelentbySchwab,thedividends

paidonsuchSecuritiesandOtherPropertywillgoto

theborrowerNocompensationorotherreimburse-

mentswillbeduetoyouinconnectionwithsuch

borrowingsHowever,ifyouareallocatedasubstitutepaymentinlieuofdividends,youunderstandthat

suchapaymentmaynotbeentitledtothesametax

treatmentasmayhavebeenappliedtothereceiptof


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Note: Although we may take the actions described

above, we are not obligated to do so or to notiy you o

impending expiration or redemption dates. You agree

not to hold Schwab liable or any decrease in the valueo your securities or other losses resulting rom your

ailure to give Schwab instructions on how to respond

to a tender oer, exchange oer or other oer or

transaction.

17. Accuracy o Account Inormation

Yourepresentandwarrantthat:

Youhaveattainedtheageofmajority

Youhavesuppliedaccurateinformationinyour

SchwabOneAccountApplication

NooneexcepttheaccountholderslistedontheSchwabOneAccountApplication(and,ifcommu-

nitypropertyisheld,theaccountholdersspouses)

hasaninterestintheSchwabOneAccount

Inaddition,youagreetonotifyuspromptlyinwriting

ofanyimportantchangeintheinformationyousupply

usontheSchwabOneAccountApplicationInpar-ticular,youagreetonotifyus:

Ifyouareorbecomeadirector,10%benecial

shareholder,policy-makingofcerorotherwisean

afliate(asdenedinRule144undertheSecurities

Actof1933)ofapubliclytradedcompany;or

Ifyouareorbecomeafliatedwithoremployedbyasecuritiesexchange,orcorporationcontrolledbya

securitiesexchangeoramemberofasecurities

exchangeorasecuritiesassociation;or

Iftherearesignicantchangestothenetworth,

incomeleveloremploymentstatusyoulistedonthe

AccountApplication

18. Custodial Accounts

IftheAccountisopenedundereithertheUniform

GiftstoMinorsActortheUniformTransferstoMinors

Act(UGMAorUTMA),theCustodianrepresentsthat

allassetsintheAccountbelongtothebeneciaryandthattheCustodianwillonlyusetheassetsfor

thebeneciarysbenetTheCustodianagreesto

transferanddelivertothebeneciaryallsecurities

andotherpropertyheldintheAccountpromptlyupon

thebeneciaryattainingtheagespeciedbythe

governingstatelawforterminationofthecustodianship

Theageofcustodianshipterminationvariesbystate,althoughmanystatessetthemaximumagefortermi-

nationat21Ifyoudonotindicateaterminationage,


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theAccountwillbesetupusingthedefaultagefor

terminationintheCustodiansstateofresidenceIf

theterminationageselectedisdifferentfromthe

statesdefaultage,theCustodianagreesandacknowledgesthathe(she)isresponsibleunderUGMA

orUTMAfordeterminingtheproperterminationage

andthatSchwabisnotresponsiblefordoingsoIf

youhavequestionsabouttheterminationage,please

consultyourlegalortaxadviserUponthetermination

ofthecustodianship,theCustodianagreestoprovide

Schwab,uponrequest,withthebeneciarysaddress,

phonenumberandanyotherinformationthatmay

assistSchwabincontactingthebeneciaryThe

CustodianinstructsSchwab,withoutfurthernoticeor

instructionfromtheCustodian,toregistertheAccount

intothebeneciarysnameassoonascommercially

practicableaftertheterminationofthecustodianshipInaddition,theCustodianacknowledgesthatSchwab

mayrestricttheCustodiansaccesstotheAccountupon

terminationofthecustodianshipAccountswithless

than$100incash30dayspriortotheterminationof

thecustodianshipwillbeclosedandacheckforthe

valueoftheAccountwillbemailedtotheCustodian

ThecheckwillbemadepayabletotheCustodianforthebenetoftheBeneciary

19. Joint or Multiple Party Accounts

Ifthereismorethanoneaccountholder,each

accountholderisjointlyandseverallyliableforobliga-

tionsarisingundertheSchwabOneAccount

AgreementorrelatingtotheSchwabOneAccount

Eachjointaccountholderhasauthority,actingindi-

viduallyandwithoutnoticetoanyotheraccount

holder,todealwithusasfullyandcompletelyasif

theaccountholderisthesoleaccountholderWeare

authorizedtofollowtheinstructionsofanyjoint

accountholderandtodeliverfunds,securitiesor

otherassetsintheSchwabOneAccounttoanyjoint

accountholderoruponanyaccountholdersinstruc-

tionsWearenotresponsiblefordeterminingthe

purposeorproprietyofaninstructionwereceivefrom

anyaccountholderorforthedispositionofpayments

ordeliveriesamongjointaccountholdersWereservetherighttorequirewritteninstructions

fromallaccountholders,atoursolediscretionWe

reservetheright,butarenotobligated,toplacetrad-

ing,disbursementandotherrestrictionsonanaccount

intheeventwereceivenoticeofadisputeamong,or

conictinginstructionsfrom,jointaccountholders

Anynoticewesendtooneaccountholderwillbe

noticetoallaccountholders


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Note: The ollowing section applies to Schwab One

customers who opened their Schwab One Account

ater October 15, 1998:

20. Account Conversion

IfmySchwabOneAccountisconvertedintoanother

accountatSchwab,whetherbyclosingmySchwab

OneAccountandopeninganotheraccountorother-

wise,Iagreetoreadandbeboundbythetermsofthe

agreementgoverningthatotheraccountascurrentlyineffectatthetimeofconversionandasamended

thereafterfromtimetotimeIunderstandthataccount

termsforsuchotheraccountatSchwab,including

accountfees,otherfeesandcharges,moneymarket

sweepfeatures,interestratesandreturnsoncash

maybedifferentandeithermoreorlessbenecial

thancomparabletermsformySchwabOneAccountIfIdonotreceiveorunderstandtheagreementgov-

erningtheaccountintowhichmySchwabOne

Accountisconverted,IwillnotifySchwab

21. Termination

YoumaycloseyourSchwabOneAccountanytimebygivingusnoticeandbyceasingtowritechecksand

usingtheVisacardWemayinoursolediscretion

closeyourAccountorterminateanyorallservices

renderedundertheSchwabOneAccountAgreement

anytimeandforanyreasonClosinganaccountor

terminatingserviceswillnotaffectyourobligations

incurredpriortoclosureortermination,inclu

Date post:	02-Apr-2018
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Schwab One Account Agreement

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