Thank you for completing your application for an account with Merrill Edge Self-Directed Investing.
Now you will be asked to read and agree to a series of Agreements and Disclosures that govern your relationship with Merrill Lynch in connection with your Merrill Edge Self-Directed Investing account and the services you receive. For your information, review, and records, you will be given the option to print these Agreements and Disclosures. Please retain them for your records.
Now you will be asked to read and agree to a series of Agreements and Disclosures that govern your relationship with Merrill Lynch in connection with your Merrill Edge Self-Directed Investing account and the services you receive. For your information, review, and records, you will be given the option to print these Agreements and Disclosures. Please retain them for your records.
Taxpayer Certification
By checking the box below and selecting the Submit Application button, I, XYZ certify under penalties of perjury that the following 3 statements are true:- The number shown on this form is my correct taxpayer identification number.
- I am not subject to backup tax withholding because:
- I am exempt from backup tax withholding, or
- I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup tax withholding as a result of a failure to report all interest or dividends, or
- The IRS has notified me that I am no longer subject to backup tax withholding
- I am a U.S. citizen or other U.S. person (including a U.S. resident alien).
Agreements & Disclosures
The Merrill Edge Self-Directed Investing Client Relationship Agreement and Merrill Edge Self-Directed Investing Terms of Service are the general agreements governing the Merrill Edge Self-Directed Investing services available to you. You are also subject to additional agreements and disclosures that cover other products, services or account features for which you may be enrolled, including cash management, margin and retirement accounts and services like bill payment.You will also be subject to additional agreements and disclosures we may send you from time to time. If a provision in any additional agreement conflicts or is inconsistent with the Merrill Edge Self-Directed Investing Client Relationship Agreement and Merrill Edge Self-Directed Investing Terms of Service, the provisions of the additional agreement will control for matters and services covered by that additional agreement.
The following contains your consent to conduct business with Merrill Lynch electronically, your Merrill Edge Self-Directed Investing Client Relationship Agreement, the Bank of America Privacy Policy for U.S. Consumers, and the Federally Required Affiliate Marketing Notice. Please review and keep a copy for your records.
Merrill Edge Self-Directed Terms of Service
These Merrill Edge® Self-Directed Investing Terms of
Service (the "Terms of Service") are made between Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("Merrill Lynch") and you and govern
your use of the Merrill Edge Self-Directed Investing service. "You" and
"your" refers to each account holder, who signs an enrollment form to
subscribe for Merrill Edge Self-Directed Investing. In the case of an
entity, "you" and "your" refers to the entity, and by enrolling, the
entity agrees that access to Merrill Edge Self-Directed Investing shall
be restricted to Authorized Representatives (as defined in the account
agreement) for such entity and that the entity will be liable for all
acts or omissions of such Authorized Representatives in violation of
these Terms of Service. These Terms of Service incorporate all
disclosures displayed on the Merrill Edge Self-Directed Investing
website from time to time, including our fees and commissions, and they
supplement the Merrill Edge Self-Directed Investing Client Relationship
Agreement which you are required to sign as well as your Merrill Edge
Self-Directed Investing Cash Management Account Agreement and/or your
Merrill Lynch traditional IRA or IRA Rollover Custodial Agreement or
Roth Individual Retirement Account Agreement and/or your Merrill Edge
Self-Directed Investing Business Investor Account Financial Service
Account Agreement and/or your Merrill Lynch Retirement Cash Management
Financial Service Account Agreement and/or your Merrill Lynch Simple
Retirement Account Custodial Agreement and/or your Merrill Lynch
Simplified Employee Pension Program Agreements, as applicable, which
otherwise remain in full force and effect and will herein be referred to
as "Merrill Lynch Account." By using Merrill Edge Self-Directed
Investing, you are representing to Merrill Lynch and its licensors and
Information Providers that you are at least eighteen years old (or the
minimum legal age in your jurisdiction).Merrill Lynch reserves the right to add, delete or modify Merrill Edge Self-Directed Investing's functionality and trading rules and to amend or supplement these Terms of Service or any other agreement among or between the parties upon notice, such notice delivered by regular mail, by email, by an on-screen alert or via the Merrill Lynch websites. In particular, Merrill Lynch reserves the right upon notice to change its fees, to add fees for items for which it does not currently charge and to institute an inactivity fee for periods in which there is no fee-generating activity in your account. Merrill Lynch also reserves the right to terminate your enrollment in Merrill Edge Self-Directed Investing at any time for any reason without notice.
Merrill Lynch offers its products, accounts and services through different service models (e.g., self-directed, full-service advice). Based on the service model, the same or similar products, accounts and services may vary in their price or fee charged to a client.
1. Nature of the Merrill Edge Self-Directed Investing Service
Merrill Edge Self-Directed Investing is the marketing name for certain brokerage services offered through Merrill Lynch, Pierce, Fenner & Smith Incorporated. Merrill Edge Self-Directed Investing is designed for U.S.-based investors who wish to make their own investment choices in a Merrill Lynch, Pierce, Fenner & Smith Incorporated brokerage account. Neither Merrill Lynch, nor any Merrill Lynch representative, will provide any tax legal or investment advice nor give any advice or offer any opinion regarding the suitability of any security, order or transaction in a Merrill Edge Self-Directed Investing account. No Merrill Lynch Research opinion or Independent Research opinion or a security on any list (such as our US 1 Stock List) or any information provided to clients either on our website or by mail or any other means constitutes a recommendation to a specific client to purchase, hold or sell any investment. You agree that any investments you make through Merrill Edge Self-Directed Investing, whether based on information obtained from Merrill Lynch or otherwise, will be solely your own decisions and based on your own evaluation of your personal investment risk profile and your investment objectives.
In addition to retaining the sole responsibility for investment decisions, you understand and agree that you are responsible for knowing the rights and terms of all securities in your account, specifically including valuable rights that expire unless the holder takes action. This includes, but is not limited to, warrants, stock rights, convertible securities, bonds, and securities subject to a tender or exchange offer. You understand and agree that Merrill Lynch accepts no obligation to notify you of any upcoming expiration or redemption dates, or, except as required by applicable law or regulation, to take any action on your behalf without specific instructions from you. You also agree that all dividends and interest payments credited to your account shall accumulate rather than be paid to you upon receipt, but shall be subject to your withdrawal from time to time upon request for a check or other funds transfer.
2. Account Data Access; User ID and Password; Safeguarding Credentials
Merrill Edge Self-Directed Investing is delivered to you via the Internet using commercially available third-party web browsers. Merrill Edge Self-Directed Investing permits you to view account data for your primary Merrill Lynch Account and any other accounts that are linked to such primary account from time to time. By using Merrill Edge Self-Directed Investing, you represent on a continuing basis that you are authorized to have viewing access to any account for which you and other linked account parties have requested linking of accounts. Merrill Lynch allows each account holder to create a separate User ID and Password for each Merrill Edge Self-Directed Investing account. You agree that each account holder shall be responsible at all times for maintaining the confidentiality of their personal information and their User ID and Password and will not make them available to other account holders or any third parties. If you do allow other account holders or third parties to access Merrill Edge Self-Directed Investing (including your accounts) using your personal information or your User ID and Password, you agree to hold Merrill Lynch, its directors, officers, employees, agents and affiliates (collectively, "Other Persons") harmless and to indemnify Merrill Lynch and all Other Persons against any liability, costs or damages arising out of claims or suits by any account holder, including yourself, or such third parties based upon or relating to such access. If you believe that someone has used your credentials, such as your User ID and Password, to access Merrill Edge Self-Directed Investing without your authorization, you agree to contact our Merrill Edge Self-Directed Investment Center immediately at 1.877.653.4732.
All daily account data is provided as a convenience and for your information, but it is not the official record of your account activity with Merrill Lynch; your Merrill Lynch account statement provided to you online each month (or by mail quarterly or monthly as required) is such official record. Account data provided through Merrill Edge Self-Directed Investing is generally updated as of the prior business day's close of business, but is subject to adjustment and correction.
3. Consent to Electronic Delivery
Because Merrill Edge Self-Directed Investing is intended to be a fully-electronic, Internet-based service, all notices, statements, disclosures and other information regarding this service and your account will be sent to you electronically via Merrill Lynch websites and/or to your last-designated email address. However, we may, at our discretion and in certain circumstances, send documents in paper form to your last-designated postal mailing address. It is your obligation to provide us with your most up-to-date email and postal mailing addresses.
For eDelivery access you must have personal computer capability that supports high-level browser encryption and PDF file access, Internet access (at your cost) and an email address. Consent for electronic delivery of documents covers all documents and disclosure required including but not limited to, the following: Merrill Edge Self-Directed Client Relationship Agreement, Merrill Edge Self-Directed Investing Cash Management Account Agreement and Program Description, Custodial Agreement and Disclosure Statement (for individual retirement accounts), and all other agreements and disclosures required from time to time for services and features available with your account; Prospectuses (including Preliminary Prospectuses); Official Statements, Fact Sheets and other offering documents for mutual funds, Initial Public Offerings and other securities offered by such disclosure documents; Trade Confirmations, Monthly Account Statements and Annual Tax Reporting Statements, Proxy Statements, Exchange Offer or Other Reorganization Documents, and Margin calls and other notices, alerts and communications concerning your holdings and/or your account or its status. Upon request, Annual Tax Reporting Statements and other tax forms will be provided in paper form. Electronic delivery consent remains effective until termination of your account and may not be revoked unless you convert to an account that does not require Internet access.
4. Hyperlinks
Merrill Lynch may make available links from its websites to other third-party websites or electronic services providers that are not affiliated with Merrill Lynch. Merrill Lynch does not control these other websites or services, and Merrill Lynch has not adopted and makes no representations or endorsements whatsoever concerning those websites or services. The fact that Merrill Lynch has provided a link to a website is not an endorsement, authorization, sponsorship, or affiliation with respect to such website, its owners, or its providers. There are risks in using any information, software, service or product found on the Internet and Merrill Lynch cautions you to make sure you understand these risks before retrieving, using, or relying upon anything via the Internet. You agree that under no circumstances will you hold Merrill Lynch liable for any loss or damage caused by use of or reliance on any content, goods or services available on such other websites.
5. Quotes, News and Research; Use of Data and Information
Quotes, news, research, ratings and other information provided through Merrill Edge Self-Directed Investing are obtained from sources we believe to be reliable, but we cannot guarantee the accuracy, timeliness or completeness of such information for any particular purpose. Such data and information and any Merrill Lynch Research or independent research opinions provided do not constitute investment advice, or a solicitation by Merrill Lynch for the purchase or sale of any securities, or a representation that any securities are suitable for you.
All such data and information is protected by copyright and other intellectual property laws and may only be used for personal and non-commercial use, and not for providing professional investment advice or for providing securities processing services or other similar back office functions. If you download any information from Merrill Edge Self-Directed Investing for your personal reference, you agree that you will not remove or obscure any copyright or other notices contained in any such information. Except as provided in the preceding sentence, you agree not to copy, reproduce, modify, sell, distribute, transmit, display, perform, circulate, transfer, broadcast, create derivative works from, publish, or use for any commercial or unlawful purpose any quotes, news, research, text images, audio, video or other information you receive through Merrill Edge Self-Directed Investing. Merrill Lynch and its licensors and Information Providers (as defined in Section 13 below) may change or discontinue any quotes news, research or other information at any time provided within Merrill Edge Self-Directed Investing at any time.
Merrill Lynch offers you access to Independent Research on all domestic and selected international stocks covered by Merrill Lynch Research under the terms of an agreement with regulators. The providers of this independent Research are chosen by an Independent Consultant, not by Merrill Lynch. You agree that Merrill Lynch will not be responsible or liable for (i) the procurement decisions of the Independent Consultant with respect to the Independent Research, (ii) the Independent Research or its content (iii)customer transactions, to the extent based on the Independent Research, or (iv) claims arising from or in connection with the inclusion of Independent Research ratings in confirmations and account statements, to the extent such claims are based on those ratings. You also agree that Merrill Lynch will not be required to supervise the production of the Independent Research procured by the Independent Consultant and will have no responsibility to comment on the content of the Independent Research.
6. Financial Tools, Education and Calculators
Merrill Edge Self-Directed Investing may also provide you with financial tools and education, including calculators. The tools and calculators may allow you to model "what-if" scenarios for various financial goals, the results of which are illustrative and are based on the information and assumptions identified. There is no guarantee that the results shown will be achieved, and changes in tax laws, financial markets or your financial situation may cause actual results to deviate substantially from those reflected in these tools. In addition, these tools and calculators are not part of any financial report for which you may have paid a fee, even if the tools and calculators include information derived from or contained in the financial report. In addition, no tools, education or calculators are intended to provide individual product recommendations or investment strategies.
7. Email
Email is provided to you through Merrill Edge Self-Directed Investing only as a convenience and to enhance communications between you and Merrill Lynch. Due to inherent limitations of Internet email (such as reliability of delivery, timeliness, security, etc.) you agree that you will not include personal information in any emails sent to Merrill Lynch and that you will not use email to request, authorize or effect the purchase or sale of any securities or other investments, to send funds transfers instructions, or for any other financial transactions that require real-time communication or more formal written authorization in accordance with applicable law or Merrill Lynch policies. Any such requests, orders, or instructions that you send in contravention of the foregoing agreement will not be accepted and will not be processed by Merrill Lynch. Merrill Lynch will not be responsible for any loss or damage that could result from your supplying us with personal information via email or your requests, orders or instructions not being accepted or processed in accordance with the preceding sentence.
8. Order Entry Trading Rules
Merrill Edge Self-Directed Investing allows you to enter orders to buy and sell U.S. market traded equities, including exchange-listed and widely-held over-the-counter stocks, a wide selection of mutual funds, and certain bonds and certificates of deposit. Merrill Edge Self-Directed Investing is not designed to be a brokerage service for investors who trade in foreign securities. Merrill Lynch intends to maintain an order entry policy for low-priced stocks and other trading rules, which will be subject to change from time to time upon posting on the Merrill Edge Self-Directed Investing site or the optional Merrill Lynch Mobile Brokerage service. Merrill Edge Self-Directed Investing is intended to be available for order entry seven (7) days a week, twenty four (24) hours a day, except for brief maintenance periods; however, Merrill Lynch does not warrant that the service will be uninterrupted. Orders sent outside of regular U.S. Market hours will be held and entered on the primary market during market hours on the next trading day. Certain orders may be blocked or subject to pre-review by Merrill Lynch, which may take up to several minutes to process. Merrill Lynch reserves the right to place restrictions on your account in its sole discretion, and to cancel any order that we believe would violate federal credit regulations or other regulatory limitations; however, Merrill Lynch will have no responsibility or liability for failing to cancel any order.
9. Order Entry Security
Merrill Lynch allows each account holder to create a separate User ID and Password for each Merrill Edge Self-Directed Investing account. You agree that each account holder shall be responsible for all orders entered through Merrill Edge Self-Directed Investing using the User ID and Password initially created or changed by the account holder regardless of who enters such orders. You agree that each account holder shall be responsible at all times for maintaining the confidentiality of their personal information and their User ID and Password and will not make them available to other account holders or any third parties. If you do allow other account holders or third parties to access Merrill Edge Self-Directed Investing (including your accounts) using your personal information or your User ID and Password, you agree to hold Merrill Lynch, its directors, officers, employees, agents and affiliates (collectively, "Other Persons") harmless and to indemnify Merrill Lynch and all Other Persons against any liability, costs or damages arising out of claims or suits by any account holder, including yourself, or such third parties based upon or relating to such access.
10. Your Responsibilities Regarding Order Entry
All orders entered through Merrill Edge Self-Directed Investing shall be subject to the applicable rules, customs and usages of the exchange or market, and its clearinghouse, on which such orders are transacted by Merrill Lynch, including our affiliates, including cancellation of orders in certain circumstances. Whether or not funds are available in your account on trade date, you agree to pay by settlement date for any trade for which you place an order through Merrill Edge Self-Directed Investing. You agree that you will immediately notify Merrill Lynch by telephone and confirm the same in writing if you become aware of any discrepancy in your account balance or security positions or if you have reason to believe that a third party is using your User ID and Password without your authority. If you fail to notify Merrill Lynch when any of the above conditions occur, neither Merrill Lynch nor any Other Persons shall have any responsibility or liability to any account holder or any other person claiming through any account holder for any claims with respect to the handling, mishandling or loss of any order. You agree to accept full responsibility for the monitoring of your account with respect to all transactions entered.
11. Limitation on Merrill Lynch's Responsibilities and Liability
You agree that Merrill Lynch will not be responsible for the accuracy, completeness or use of any market data news or research information provided through Merrill Edge and Merrill Lynch does not make any warranty concerning such information. You further agree that all orders placed through Merrill Edge Self-Directed Investing are at your sole risk and responsibility based on your own evaluation of your financial circumstances and investment objectives. Merrill Edge Self-Directed Investing may display on the order entry screen Merrill Lynch Research's quality rating and investment opinion on companies, if available, as well as Independent Research opinions; however, such information and opinions by themselves do not constitute investment advice, or a solicitation or recommendation by us for the purchase or sale of any securities, or a representation that any securities are suitable for you.
You understand and agree that Merrill Edge Self-Directed Investing utilizes the Internet to transport data and communications. Merrill Lynch will take reasonable security precautions to safeguard data and communications; however, Merrill Lynch disclaims any liability for interception and/or use of any such data or communications. You agree that neither Merrill Lynch nor any third party working with Merrill Lynch to provide services hereunder shall be responsible for any damages caused by communications line failure, systems failure, and other occurrences beyond their control, or from any unauthorized trading or theft by any third party who gains access to your account by use of your User ID and Password as a result of your intentional or unintentional conduct, including negligence by you. Merrill Lynch will not be responsible for any access costs you incur to connect to Merrill Edge Self-Directed Investing.
Neither Merrill Lynch nor any third party makes any representations or warranties expressed or implied with respect to Merrill Edge Self-Directed Investing, including without limitation, any implied warranties of merchantability or fitness for a particular purpose. To the extent permitted by law, under no circumstances, including negligence, will Merrill Lynch or any of its affiliates, directors, officers or employees, or any third party vendor be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or interruption of Merrill Edge Self-Directed Investing, or resulting from the act or omission of any other party involved in making Merrill Edge Self-Directed Investing available to you, or from any other cause relating to your access to or use of Merrill Edge Self-Directed Investing, whether or not the circumstances giving rise to such cause may have been within the control of Merrill Lynch or of any vendor providing software or services support for Merrill Edge Self-Directed Investing. In no event will Merrill Lynch or any such parties be liable to you for any special, indirect, consequential or incidental damages even if Merrill Lynch or any other party have been advised of the possibility thereof. Any liability arising out of any action or omission by Merrill Lynch or any such parties shall be limited to an amount equal to the benefit which the transaction would have resulted in during the period between the date of a trade and the applicable time for settlement of such trade.
12. Order Execution and Routing Disclosures
Exchange-listed securities - When you buy or sell round lots (usually 100 shares) of listed stocks, or when you buy or sell listed options, we generally route your order through a routing system to what is expected as the best execution venues for the order. We handle your order so as to obtain a competitive execution price in line with our regulatory obligations.
Our electronic order-processing system automatically channels your order to an appropriate market center given the characteristics of the order, market data and trading statistics.
We have in place effective internal controls, including information barriers, to prevent the sharing of order information among our equity trading desks. As a result, each of our equity trading desks independently conducts its trading activities. When our market making desk (which engages in block positioning and provides firm bid/offer quotes) handles your equity orders, other Merrill Lynch equity trading desks may separately transact - without knowledge of your orders - for their principal accounts at prices that would satisfy your orders. Similarly, if your orders are handled by another of our equity trading units and no attempt is made to obtain liquidity for your orders from the market making desk, you should understand that the market making desk may separately transact - without knowledge of your orders - for its principal at prices that would satisfy your orders. The equity trading desks' or market making desk's execution prices could be better, the same, or worse than the prices you receive for the same security.
Over-the-counter markets - Securities that are not listed on an exchange may be traded in the over-the-counter markets. Merrill Lynch fully complies with SEC and FINRA order handling requirements. We handle your order so as to obtain a comexecution price. We regularly monitor the quality of our executions. In addition, we execute customer limit orders in Nasdaq securities at prices equal to the limit price or better than the limit price.
For those securities in which Merrill Lynch makes a market, we will execute automatically market orders up to an amount determined by us at the National Best Bid or Offer (NBBO) or better. We manually execute orders larger than these parameters, using discretion to seek best execution for our customers.
Often for those securities in which Merrill Lynch makes a market, we will use best efforts to execute larger-sized client orders by testing whether, and how much, stock can be bought at currently displayed quotes, in addition to what is reflected in Merrill Lynch's quote. We may then manually execute client orders based on the liquidity we are able to access, which may involve the simultaneous execution of one or more client orders received over a period of time. Those orders may receive executions at prices that approximate the volume-weighted average price during that period. Merrill Lynch routes orders in securities in which we do not make a market to other market makers.
The Securities and Exchange Commission ("SEC") adopted a rule requiring market centers to publicly disclose, on a monthly basis, uniform statistical measures of order execution quality. These measures include, but are not limited to, how market orders of various sizes are executed relative to the public quotes and information about the spreads paid by investors. The SEC has also adopted a rule requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. In accordance with these rules, Merrill Lynch's execution reports and order routing statistics are available for public review by visiting www.ml.com/legal_info.htm and clicking through the link provided in the "SEC Order Execution and Routing Disclosure" section.
Note: Under SEC rules, we are required to inform you that Merrill Lynch does not receive payment for order flow from other broker-dealers, any U.S. exchange or Nasdaq for routing your orders in securities quoted on U.S. exchanges or Nasdaq trading systems.
13. Agreement With Information Providers Regarding Market Data
The securities prices, quotations, research, ratings, news and other information provided on Merrill Edge Self-Directed Investing are provided by various third party sources that include, but are not limited to, the New York Stock Exchange, Inc., American Stock Exchange Inc., NASDAQ Stock Market, Inc., The Options Price Reporting Authority, and its participant exchanges, Dow Jones & Company, Inc., Standard & Poor's Financial Services, LLC, Moody's Investor Services, Inc. Morningstar Inc., and their respective affiliates, agents and others, including persons or entities that act as data processors on behalf of the foregoing (collectively, "Information Providers"). By using the Merrill Edge Self-Directed Investing website, you acknowledge and agree that: (1) securities prices, quotations research, ratings, news and other information received from Information Providers ("Market Data") are solely for your individual use and you will not retransmit or furnish Market Data to any other person or entity, except to other officers, partners or employees if you are an entity; (2) the Market Data is and shall remain the property of the respective Information Providers or of the market on which a reported transaction took place or a reported quotation was entered; (3) at any time, Information Providers may discontinue disseminating any category of Market Data, may change or eliminate any transmission method and may change transmission speeds or signal characteristics, and you shall not hold the Information Providers liable for any resulting liability, loss or damages that may arise there from; and (4) your agreements set forth herein and the disclaimers of warrant, and disclaimers of liability set forth below are for the express benefit of the Information Providers as third party beneficiaries and they may enforce these provisions against you.
Notwithstanding any provisions to the contrary contained herein, with respect to Dow Jones & Company, Inc. only: (1) you may, on an occasional and irregular basis, reproduce, distribute, display or transmit an insubstantial portion of the Market Data provided by Dow Jones & Company, Inc. (the "Dow Jones information"), for a non-commercial purpose and without charge, to a limited number of individuals, provided you include all copyright and other proprietary rights notices with such portion of the Dow Jones Information in the same form in which the notices appear on the Dow Jones Information, the original source attribution, and the phrase "Used with permission from Dow Jones & Company"; (2) if you are an entity, you may only retransmit or furnish the Dow Jones information to officers, partners or employees in accordance with the foregoing sentence.
Notwithstanding any provisions to the contrary contained herein, the following additional provisions apply to Market Data provided by Moody's Investor Services, Inc. ("Moody"s): The credit ratings if any, constituting part of the Market Data are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold securities. Each rating or other opinion must be weighted solely as one factor in any investment decision made by or on behalf of any user of the Market Data, and each user must make its own study and evaluation of each security and of each issuer and guarantor of, or of each provider of credit support for, each security that it may consider purchasing, holding, or selling. Moody's hereby discloses that most issuers of debt securities and rated by Moody's have, prior to assignment of any rating, agreed to pay Moody's for the appraisal and rating services rendered by its fees ranging from $1,500 to $1,500,000.
These Terms of Service shall remain in effect as to the Information Providers for so long as you have the ability to receive Market Data through the Merrill Edge Self-Directed Investing website as contemplated hereby. In addition, either you or Merrill Lynch may terminate your access to Market Data at any time. You understand that Merrill Lynch is obligated to terminate access to this site as to the provision of any or all of the Market Data pursuant to this paragraph upon notice to that effect from any of the Information Providers. The foregoing provisions regarding the proprietary nature of Market Data, third party beneficiary enforcement by the Information Providers, and the disclaimer of liability and disclaimer of warranty by the information Providers survive termination of your access to Market Data. These Terms of Service supersede each previous agreement between you and the Information Providers insofar as the superseded agreement pertains to Market Data provided to you through the Merrill Edge Self-Directed Investing website.
Disclaimer of Warranties and Liability Regarding Information Providers and Market Data
THE MARKET DATA ACCESSIBLE THROUGH the Merrill Edge Self-Directed Investing website IS PROVIDED "AS IS" AND THERE MAY BE DELAYS, OMISSIONS OR INACCURACIES IN SUCH DATA. MERRILL LYNCH, THE INFORMATION PROVIDERS, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES AND AGENTS CANNOT AND DO NOT GUARANTEE THE ACCURACY, SEQUENCE, COMPLETENESS, CURRENTNESS, TIMELINESS, MERCHANT-ABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NONINFRINGEMENT Of THE MARKET DATA MADE AVAILABLE THROUGH the Merrill Edge Self-Directed Investing website AND HEREBY DISCLAIM ANY SUCH EXPRESS OR IMPLIED WARRANTIES. NEITHER MERRILL LYNCH, THE INFORMATION PROVIDERS, NOR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES AND AGENTS SHALL BE LIABLE TO YOU OR TO ANYONE ELSE FOR ANY LOSS OR INJURY WHETHER OR NOT CAUSED IN WHOLE OR IN PART BY THEIR NEGLIGENCE OR OMISSION IN PROCURING, COMPILING, INTERPRETING, EDITING, WRITING, REPORTING, OR DELIVERING ANY MARKET DATA THROUGH the Merrill Edge Self-Directed Investing website OR BY ANY FORCE MAJEURE OR ANY CAUSE BEYOND THEIR REASONABLE CONTROL. IN NO EVENT WILL MERRILL LYNCH, THE INFORMATION PROVIDERS, OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES OR AGENTS BE LIABLE TO YOU OR ANYONE ELSE FOR ANY DECISION MADE OR ACTION TAKEN BY YOU IN RELIANCE UPON SUCH MARKET DATA OR FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL OR SIMILAR DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, TRADING LOSSES, DAMAGES RESULTING FROM INCONVENIENCE, OR LOSS OF USE OF the Merrill Edge Self-Directed Investing website, EVEN If ADVISED OF THE POSSIBILITY Of SUCH DAMAGES.
Incorporation of Market Data Agreements With Exchanges
BY ACKNOWLEDGING THESE TERMS OF SERVICE, YOU AGREE (A) THAT YOU UNDERSTAND, AND AGREE TO BE BOUND BY, THE AGREEMENT FOR MARKET DATA DISPLAY SERVICES (THE "EXCHANGE AGREEMENT"), THE MATERIAL TERMS AND CONDITIONS OF WHICH ARE INCORPORATED HEREIN; (B) THAT MERRILL LYNCH IS NOT AN AGENT OF ANY OF THE EXCHANGES OR OF NASDAQ AND IS NOT AUTHORIZED TO DEPART FROM THE EXCHANGE AGREEMENT; AND (C) THAT NO PROVISION MAY BE ADDED TO OR DELETED FROM THE EXCHANGE AGREEMENT AND THAT NO MODIFICATIONS HAVE BEEN MADE TO IT ON YOUR BEHALF. YOU WARRANT THAT YOU ARE LEGALLY ABLE TO UNDERTAKE THE OBLIGATIONS SET FORTH IN, AND THE SIGNATORY IS DULY AUTHORIZED TO BIND YOU TO, THE EXCHANGE AGREEMENT.
THE NASDAQ STOCK MARKET, INC. IS A THIRD PARTY BENEFICIARY TO THE TERMS AND CONDITIONS OF THIS AGREEMENT. TO THE EXTENT THAT YOU HAVE ANY CLAIMS AGAINST NASDAQ ARISING OUT OF THIS AGREEMENT OR THE NASDAQ SUBSCRIBER AGREEMENT, THOSE CLAIMS SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE STATE OF MARYLAND WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW, AND YOU CONSENT TO SUBMIT TO THE JURISDICTION OF THE COURTS OF OR FOR THE STATE OF MARYLAND IN CONNECTION WITH ANY SUCH CLAIM.
BY ACKNOWLEDGING THESE TERMS OF SERVICE, YOU CERTIFY TO THE INFORMATION PROVIDERS, AND TO MERRILL LYNCH, THAT YOU HAVE READ, UNDERSTAND AND INTEND TO BE BOUND BY THESE TERMS OF SERVICE.
Note: The Funds Transfer Service and Bill Payment Services are governed by separate enrollment terms and conditions, which are available in the Documents & Forms Library, and are not governed by the above Merrill Edge Self-Directed Investing Terms of Service.
14. Extended Hours Trading Agreement
IMPORTANT INFORMATION ABOUT EXTENDED HOURS TRADING THROUGH ECNs
Due to the nature of the extended hours trading market, trading in the pre-market and after hours through an ECN may pose certain risks which are greater than those present during normal market hours.
Lower Liquidity
Liquidity refers to the level of trading activity and the volume of securities available to be traded. In general, the greater the liquidity in a security, the greater the chance an order will be executed. There may be a lack of liquidity (buyers and sellers) in the extended hours market on an ECN which prevents your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during normal market hours.
Price Volatility
Price volatility refers to the speed and size of changes in the price of a security. There may be more volatility in the extended hours market than in the daytime session, which may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during normal market hours.
Price Variance
Orders are eligible for execution in the extended hours market at prices which are generally based on the supply and demand created by other sellers and buyers who participate in the extended hours session for an ECN. Therefore, execution prices of securities transactions in the ECN system extended hours may not necessarily match the pricing which is present in the daytime trading session. You might pay more, or receive less than you would compared to trades executed during normal market hours. However, you will not receive an execution price that is worse than your established limit for the extended hours session.
Access to Other Markets and Market Information
Not all ECNs are connected or linked in the extended hours trading market nor offer extended hours trading for the same time periods. Therefore, there is a possibility that greater liquidity in a particular security or a more favorable price is available in another ECN. Access to quotes and trading information in other ECNs may be limited. Additionally, other participants in the extended hours session may be placing orders based on extended hours news or other market developments. You should determine prior to placing an order in the extended hours session that you have sufficient current information to determine your limit order price.
Time and Price Priority of Orders
Orders entered into the extended hours session are generally handled in the order in which they were received at each price level. Therefore, orders transmitted to the ECN by other investors before your order may match an existing order that you were attempting to match, thereby removing that order from the ECN order book. Similarly, your order may not be first in line to be executed if a matching order comes into the ECN. This may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during normal market hours.
Communication Delays
Delays or failure in communications due to a high volume of orders or communications, or other computer system problems, may cause delays in, or prevent execution of your order.
TERMS and CONDITIONS
Trading through ECN Extended Hours session on the ECN is subject to the terms and conditions ("Terms") and policies set forth by Merrill Lynch and subject to change without notice. Trading in the pre-market session may not be available to all users. Users of the extended hours trading session should contact an investment specialist to determine the availability of pre-market trading. By using the ECN Extended Hours trading facility, you acknowledge your understanding of the risks set forth above and your agreement to the Terms set forth below.
We reserve the right not to accept an order for the ECN Extended Hours session at their discretion and will attempt to notify you if your order is not accepted.
We will only accept limit orders for ECN Extended Hours trading. You must indicate a specific price at which you are willing to buy or sell the security you are interested in. You may not trade against an order entered by you. In other words, you may not buy securities you offered for sale in the ECN, and vice versa.
The maximum order size is 100,000 shares.
Prices must be entered in decimals.
Only certain securities will be eligible for trading through the ECN Extended Hours session, so all orders must be for securities traded on the ECN. If a stock normally traded on the ECN closes on a trading halt in its primary market, or trading is later halted by its primary exchange or a regulatory authority, trading of that stock will be suspended on the ECN.
If ECN pre-market trading is available, orders can be placed from 7:30 to 9:30 a.m. Eastern. Orders entered between 7:30 and 8:00 a.m. will be collected and transmitted together to the pre-market session at 8:00 a.m. and will be given priority according to time received. After this time, we will continue to send ECN pre-market orders as they are received until 9:30 a.m. Eastern unless trading is halted prior to 9:30 a.m.
ECN after hours orders can be placed from 4:01 to 8:00 p.m. Eastern (After Hours Orders). After Hours Orders we receive will be sent to the ECN for execution in the order in which they are received. We will continue to send After Hours Orders to the ECN until 8:00 p.m. Eastern unless trading is halted prior to 8:00 p.m. Eastern.
If ECN pre-market trading is available, orders not filled during the ECN pre-market session are automatically canceled if they are not filled by the end of the session (i.e., 9:30 a.m. Eastern unless trading is halted prior to 9:30 a.m.) during which they were placed. You must re-enter these orders during normal market hours if you still wish to have the trades executed.
Orders not filled during the ECN after hours session are automatically canceled if they are not filled by the end of the session (i.e., 8:00 p.m. Eastern unless trading is halted prior to 8:00 p.m.) during which they were placed. You must re-enter these orders during normal market hours if you still wish to have the trades executed.
Merrill Lynch is not liable for delays in the transmission of orders due to a breakdown or failure of transmission, communication or data processing facilities, or for any other cause beyond our reasonable control.
Transactions are subject to the applicable rules and regulations of the self-regulatory organizations and governmental authorities.
Transactions are subject to all other agreements applicable to your account(s).
Merrill Edge® Self Directed Investing Client Relationship Agreement
Terms and ConditionsDEFINITIONS
ACCOUNT
Any securities account you open with Merrill Lynch.
MERRILL LYNCH
"Merrill Lynch," means Merrill Lynch, Pierce, Fenner & Smith Incorporated.
YOU
"You" or "your" means each person who has agreed to the terms of this Client Relationship Agreement.
SECURITIES AND OTHER PROPERTY
For purposes of Margin Lending and Liens below, "securities and other properties" means, without limitation, money, securities, financial instruments and commodities of every kind and nature and related contracts and options. This definition includes securities or other property held, carried or maintained by Merrill Lynch or any of its affiliates, in Merrill Lynch's or any of its affiliates' possession and control, for any purpose, in any of your accounts, including any account in which you may have an interest.
1. THE CLIENT RELATIONSHIP AGREEMENT
The Client Relationship Agreement is intended to simplify your relationship with Merrill Lynch. When you agree to the terms of this agreement, you are agreeing that its terms will apply to all your accounts, transactions and services while you are our client.
In particular, you are agreeing:
- To arbitrate all controversies that arise between us;
- That certain securities in your account may be loaned to Merrill Lynch or loaned to others if you are enrolled in the Margin Lending Program;
- That Merrill Lynch has a lien on your accounts and assets in those accounts for any payment obligations that you have with Merrill Lynch; and
- That New York law governs your agreements and transactions unless we indicate otherwise.
a)New accounts and services
When you open a new account or enroll in a service, we will provide you with the agreement and any disclosures for that account or service and confirm your enrollment in that account or service in writing. Those agreements and disclosures are incorporated by reference. This means that your initial signature acts as your agreement to the terms of the new account or service. As a result, in many cases, you will not need to sign an additional account agreement or other form.
For example, if you enroll in the Merrill Edge® Self-Directed Investing Cash Management Account®(CMA® account) financial service, the disclosures and account agreement for that service are incorporated in this agreement. We will provide those documents to you when you enroll.
The terms governing a specific account or service will control if there are any inconsistencies with the terms of this Client Relationship Agreement. If you are establishing a joint account with this Agreement, you must designate how the account is to be held by the owners of the account.
Eligible joint account designations include:
- JTWROS - Joint Tenants With Right of Survivorship;
- Joint Tenants Without Right of Survivorship – also known as Tenants in Common;
- ATBE - As Tenants by Entirety (for married persons, only in states where applicable);
- Other - Other joint ownership arrangements which you must specify.
b) Additional signatures
You may need to sign more than one Client Relationship Agreement. This will be required if you want to open an account in a capacity other than as an "individual," including as a:
- Trustee of a trust;
- Personal representative or executor of an estate; or
- Guardian.
- Selecting beneficiaries for an individual retirement account;
- Selecting the ownership of a joint account;
- Selecting beneficiaries of an account with the transfer on death service;
- Options trading;
- Financial planning;
- Managed money services; and
- Services involving the transfers of money or securities.
Your signature is required to designate or change beneficiaries to receive the balance of your account upon your death. If you do not do so, your account balance will be paid to your spouse, if he or she survives or, if not, to your estate.
d) Amendments
You agree that Merrill Lynch has the right to amend this Client Relationship Agreement at any time by providing notice of the amendment to you. The amendment will be effective on the date contained in the notice.
2. CUSTOMER INFORMATION AND DUE DILIGENCE
Merrill Lynch, like all U.S. financial institutions, is required to follow federal regulations to assist the government in its efforts to fight money laundering and other financial crimes, and to counter terrorist financing efforts in the U.S. and globally. Merrill Lynch obtains specific personal information from you in order to verify your identity; and you may be required to present documentary evidence of your identity in the form of government-issued identification. Merrill Lynch also uses third-party vendors to verify customer information. Foreign nationals who are permanent legal residents of the U.S. may be required to present a Permanent Resident Card (i.e., "green card") and a Social Security number to open an account in a U.S.-based Merrill Lynch office. Non-individuals (e.g., a business, trust or estate) must submit sufficient evidence of legal status.
In addition to verifying the identity of our customers, Merrill Lynch captures personal information on all customers and related authorized parties who have the ability to transact, control, influence or manage an account, whether directly or indirectly. Merrill Lynch, at its discretion, may elect not to accept an account, or to terminate the account agreement and the account agreements of any related parties.
3. MARGIN LENDING
If any account is established with the Margin Lending Program, you understand and agree that:
- You may borrow money from Merrill Lynch secured by a pledge of your eligible securities and other property in your account;
- You will be charged interest on debit balances at a rate permitted by the laws of the state of New York;
- Certain of your securities may be loaned to Merrill Lynch or loaned out to others; and
- You are bound by the terms of the agreement for the Margin Lending service.
All of your securities and other property in any account - margin or cash - in which you have an interest, or which at any time are in your possession or under your control other than retirement accounts, such as IRAs, shall be subject to a lien for the discharge of any and all indebtedness or any other obligations you may have to Merrill Lynch. Securities and other property held in retirement accounts, such as IRAs, are not subject to this lien, and are not used as security for the payment of your obligations or indebtedness for other accounts - cash or margin - you maintain with Merrill Lynch. You agree that Merrill Lynch holds all of your securities and other property in margin or cash accounts, other than retirement accounts, as security for the payment of any such obligations or indebtedness to Merrill Lynch in any account in which you have an interest. Merrill Lynch, subject to applicable laws, may at any time and without giving you prior notice, use and/or transfer any or all securities and other property in any account in which you have an interest other than retirement accounts, without regard to Merrill Lynch having made any advances in connection with such securities and other property and without regard to the number of accounts you may have with Merrill Lynch. In enforcing the lien, Merrill Lynch, at its sole discretion, may determine which securities and other property are to be sold or which contracts are to be closed.
5. GOVERNING LAW
Unless otherwise specified, your agreements and transactions with Merrill Lynch will be governed by and interpreted under the laws of the State of New York.
You may not use your account or relationship to the firm to process transactions that are prohibited by law, including, but not limited to, restricted transactions prohibited by the Unlawful Internet Gambling Enforcement Act of 2006.
6. FEES
You agree to pay your account fees, service fees, processing and others fees for the transactions and other services you receive from Merrill Lynch. You understand that these fees will be charged to your accounts. You agree that Merrill Lynch may satisfy any amounts you owe to Merrill Lynch from available free credit balances and assets in your account. If necessary, Merrill Lynch is permitted to sell assets in your accounts to pay those amounts due.
a)Securities transactions
When you purchase or sell securities, you may pay for each securities transaction on a per trade basis. This is called transaction-based pricing. Under this type of pricing, you are charged a commission or other compensation for each transaction. This compensation varies based on a number of factors, such as your relationship with Merrill Lynch and Bank of America, the type of security and how often you trade. Commission rates are subject to change.
b) Visa® cards issued by Bank of America, N.A.
There is no annual fee for the Merrill Edge® CMA Access® Visa® card.
This information is subject to change. You may call Merrill Edge Self-Directed at 1.877.653.4732 to verify current fees.
You authorize Merrill Lynch to issue the Visa card that you have requested for use with eligible accounts, and you understand that Merrill Lynch or an affiliate may obtain a credit report in connection with your request.
7.AGREEMENT TO ARBITRATE CONTROVERSIES
This Agreement contains a predispute arbitration clause. By signing an arbitration agreement the parties agree as follows:
- All parties to this Agreement are giving up the right to 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.
- Arbitration awards are generally final and binding; a party"s ability to have a court reverse or modify an arbitration award is very limited.
- The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.
- The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
- The panel of arbitrators may include a minority of arbitrators who were or are affiliated with the securities industry.
- The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
- The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this agreement.
You agree that all controversies that may arise between us shall be determined by arbitration. Such controversies include, but are not limited to, those involving any transaction in any of your accounts with Merrill Lynch, or the construction, performance or breach of any agreement between us, whether entered into or occurring prior, on or subsequent to the date hereof.
Any arbitration pursuant to this provision shall be conducted only before the Financial Industry Regulatory Authority Inc. ("FINRA") or an arbitration facility provided by any other exchange of which Merrill Lynch is a member, and in accordance with the respective arbitration rules then in effect at FINRA or such other exchange.
You may elect in the first instance whether arbitration shall be conducted before FINRA or another exchange of which Merrill Lynch is a member, but if you fail to make such election by registered letter addressed to Merrill Lynch at the office where you maintain your account before the expiration of five (5) days after receipt of a written request from Merrill Lynch to make such election, then Merrill Lynch may make such election.
Judgment upon the award of the arbitrators may be entered in any court, state or federal, having jurisdiction.
No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who is a 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: (i) the class certification is denied; or (ii) the class is decertified; or (iii) 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.
8.IMPORTANT DISCLOSURES
Merrill Lynch is a registered broker-dealer and a wholly-owned subsidiary of Bank of America Corporation. Unless otherwise disclosed, investments through Merrill Lynch are not FDIC Insured, and are not Bank guaranteed, and may lose value.
Merrill Lynch, Pierce, Fenner & Smith Incorporated offers its products, accounts and services through different service models (e.g., self-directed, full-service). Based on the service model, the same or similar products, accounts and services may vary in their price or fee charged to a client.
Vesting age for UTMA (Uniform Transfer to Minor Account) and UGMA accounts (Uniform Gift to Minor Account) defaults to the minimum age defined by individual state laws.
9. SWEEP OF CASH BALANCES
The deposit of checks, the sale of securities, and other activity will periodically generate cash in your Merrill Lynch account. Typically, this cash is "swept" to bank accounts with FIA Card Services, N.A. (the "Merrill Lynch Affiliated Bank") under the Merrill Lynch Direct Deposit Program (the "MLDD Program") or Retirement Asset Savings Program II (the "RASP IISM Program"), where it earns interest.
Deposits held at the Merrill Lynch Affiliated Bank are financially beneficial to Merrill Lynch and its affiliates. Interest rates paid on deposits are determined at the discretion of the Merrill Lynch Affiliated Bank based on economic and business conditions. Rates may change daily. The current yield on any deposits held under the MLDDP and RASP II Programs will be included on your account statement. You can also access current yield information on our website, or by contacting Merrill Edge Self-Directed Investing at 1.877.653.4732.
Your cash in the bank deposit accounts is insured by the Federal Deposit Insurance Corporation ("FDIC") up to a total of the Standard Maximum Deposit Insurance Amount ("SMDIA") per depositor at the Merrill Lynch Affiliated Bank. The SMDIA is $250,000 per depositor, per ownership category. Each individual depositor receives up to the SMDIA of FDIC insurance and each joint account with two depositors up to two times the SMDIA of FDIC insurance. It is your responsibility to monitor the total amount of your deposits with the Merrill Lynch Affiliated Bank to determine the extent of insurance coverage available on your deposits. It is important to note that uninvested cash held in more than one Merrill Lynch account (such as a CMA) may be deposited to the same Merrill Lynch Affiliated Bank. Also, amounts in excess of the applicable FDIC insurance limit may be deposited to the Merrill Lynch Affiliated Bank from the same Merrill Lynch account. Any certificates of deposit that you own issued by a Merrill Lynch Affiliated Bank will also count towards the FDIC insurance limits.
The Securities Investor Protection Corporation ("SIPC") does not cover cash on deposit at the Merrill Lynch Affiliated Bank. You may obtain further information about SIPC, including the SIPC Brochure, via SIPC's website at www.sipc.org or by calling SIPC at 1.202.371.8300.
Merrill Lynch reserves the right to offer different cash sweep arrangements for different accounts or clients. You agree that Merrill Lynch may, at its discretion and from time to time, change the cash sweep arrangement upon prior notice.
10.REPRESENTATIONS AS TO ACCOUNT OWNERSHIP AND CAPACITY TO ENTER INTO AGREEMENT
You represent that no one except the person(s) signing this Agreement, or the beneficial owner(s) if signed in a representative capacity, has an interest in this account or any additional accounts opened in the future for you or for such beneficial owner(s). If this account is beneficially owned by any person who is U.S. Securities and Exchange Act Section 16 reporting person of a U.S. public company, you represent that no funds or assets belonging to such U.S. public company, or any entity affiliate of such U.S. public company, will be invested through this account. If this is an individual account, you represent that you are of legal age to contract in your jurisdiction of residence and that you are not employed by a broker-dealer or other employer whose consent is required to open and maintain this account by regulation or otherwise, unless such consent has been provided to you. If any of the foregoing representations is inaccurate or becomes inaccurate, you will promptly so advise.
You acknowledge that you fully understand English and that written documents, agreements and information concerning your relationship with Merrill Lynch, including but not limited to products, services, transaction and your accounts will be provided to you in English.
11.ELECTRONIC FUND TRANSFERS
If you maintain more than one account with Merrill Lynch with the same ownership type, you may transfer funds to and from each account through Merrill Lynch's electronic funds transfer services.
You authorize Merrill Lynch to accept your telephonic or electronic instructions for those transfers.
If you open any account as the trustee for a grantor revocable living trust, you represent and warrant to Merrill Lynch that:
- The trust permits the funds transfers you are authorizing; or
- If applicable, such funds transfers represent valid partial or total revocations by you and Merrill Lynch may conclusively rely on this representation.
Merrill Lynch may offer you access to third party research on certain U.S. and non-U.S. equity and fixed income securities. You agree that neither Merrill Lynch nor any of its affiliates bears any responsibility or liability for third party research or its content which may be made available to you. You assume full responsibility for any trading decision you make based on third party research. Access to third party research is provided for informational purposes only and does not constitute investment advice. Merrill Lynch does not endorse or otherwise adopt third party research reports or ratings.
Important Information about FDIC Coverage
The FDIC currently insures deposit accounts up to $250,000 per depositor, per ownership category, per bank. To apply the $250,000 coverage limit, the FDIC will add together your deposit accounts that are held in the same ownership category (e.g., individual, joint, trust) and at the same bank. Deposit balances at different banks will be insured separately up to the applicable limits.
Your BA-RI deposits will become deposits with BA-CA, as described above. BA-CA is a separate bank from BANA and FIA Card Services, N.A. (FIA), so any balances you have in accounts with BA-CA will not be counted together for deposit insurance purposes with other deposits you may have at BANA or FIA.
You are responsible for monitoring the total amount of your deposits to determine the extent of insurance coverage available to you. If you have any questions, or need additional information about how to maximize your deposit insurance coverage, please contact your Financial Advisor or (800) MERRILL (637-7455) or visit www.FDIC.gov.
U.S. Consumer Privacy Notice
|
Rev. 01/2013
|
| FACTS |  |
| Why? | Financial companies choose how they share your personal information, Under federal, law that means personally identifiable information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The types of personal information we collect and share
depend on the product or service you have with us. This information can
include:
|
| How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Bank of America chooses to share; and whether you can limit this sharing. |
| Reasons we can share your personal information | Does Bank of America share? | Can you limit this sharing? |
| For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| For our marketing purposes - with service providers we use to offer our products and services to you (please see below to limit the ways we contact you) | Yes | No |
| For joint marketing with other financial companies | Yes | No |
| For our affiliates' everyday business purposes - information about your transactions and experiences | Yes | No |
| For our affiliates' everyday business purposes - information about your creditworthiness | Yes | Yes |
| For nonaffiliates to market to you - for all credit card accounts | Yes | Yes |
| For nonaffiliates to market to you - for accounts and services endorsed by another organization (e.g., debit card co-branded with a baseball team) "Sponsored Accounts" | Yes | Yes |
| For nonaffiliates to market to you - for accounts other than credit card accounts and Sponsored Accounts, such as insurance, investments, deposit and lending | No | We don't share |
| To limit our sharing |
If you are a new customer, we can begin sharing your information 45 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
| To limit direct marketing contact |
Direct marketing is email, postal mail and telephone marketing. Your telephone and postal mail opt-out choices will last for five years, subject to applicable law. Even if you limit direct marketing, we may still contact you to service your account or as otherwise allowed by law. |
| Questions? | Call 1.888.341.5000 or go to bankofamerica.com/privacy |
| Who we are | |
| Who is providing this notice? | Bank of America U.S. legal entities that utilize the names: Bank of America, Banc of America, U.S. Trust, LandSafe or Merrill Lynch, as well as the entities listed in the Bank of America U.S. legal entities section. |
| What we do | |
| How does Bank of America protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. For more information visit bankofamerica.com/security. |
| How does Bank of America collect my personal information? | We collect your personal information, for example, when you:
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why can't I limit all sharing? | Federal law gives you the right to limit some but not all sharing related to:
State laws and individual Bank of America companies may give you more rights to limit sharing. See Other important information section for your rights under state law. |
| What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to you alone unless you tell us otherwise. However your choice to limit sharing with nonaffiliates to market to you for credit card accounts or Sponsored Accounts will apply to all joint account holders. If you have more than one credit card account or Sponsored Account and you choose to opt out, you will need to do so for each account. |
| Definitions | |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies
|
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies
|
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
|
| Other important information |
| Do Not Call Policy. This notice is the Bank of America Do Not Call Policy under the Telephone Consumer Protection Act. We do not solicit via telephone numbers listed on the state or federal Do Not Call lists, unless the law allows. Bank of America employees receive training on how to document and process telephone marketing choices. Consumers who ask not to receive telephone solicitations from Bank of America will be placed on the Bank of America Do Not Call list and will not be called in any future campaigns, including those of Bank of America affiliates. If you communicate with us by telephone, we may monitor or record the call. |
| For Nevada residents only. We are providing you this notice under state law. You may be placed on our internal Do Not Call List by following the directions in the To limit direct marketing contact section. Nevada law requires we provide the following contact information: Bureau of Consumer Protection, Office of the Nevada Attorney General, 555 E. Washington St., Suite 3900, Las Vegas, NV 89101; Phone number- 702.486.3132; email: BCPINFO@ag.state.nv.us. Bank of America, P.O. Box 25118, FL1-300-01-29, Tampa, FL 33633-5118; Phone number- 1.888.341.5000; email: Click on "Contact Us" at bankofamerica.com/privacy. |
| Vermont: Under Vermont law, we will not share information we collect about Vermont residents with companies outside of our corporate family, unless the law allows. For example, we may share information with your consent, to service your accounts or under joint marketing agreements with other financial institutions with which we have joint marketing agreements. We will not share information about your creditworthiness within our corporate family except with your consent, but we may share information about our transactions or experiences with you within our corporate family without your consent. |
| California: Under California law, we will not share information we collect about you with companies outside of Bank of America, unless the law allows. For example, we may share information with your consent, to service your accounts, or to provide rewards or benefits you are entitled to. We will limit sharing among our companies to the extent required by California law. |
| For Insurance Customers in AZ, CA, CT, GA, IL, ME, MA, MN, MT, NV, NJ, NC, OH, OR and VA only. The term "Information" in this part means customer information obtained in an insurance transaction. We may give your Information to state insurance officials, law enforcement, group policy holders about claims experience or auditors as the law allows or requires. We may give your Information to insurance support companies that may keep it or give it to others. We may share medical Information so we can learn if you qualify for coverage, process claims or prevent fraud or if you say we can. To see your Information, write Insurance Services, TX2-977-01-39, 5401 North Beach Street, Fort Worth, TX 76137, Attn: Data Request. You must state your full name, address, the insurance company, policy number (if relevant) and the Information you want. We will tell you what Information we have. You may see and copy the Information (unless privileged) at our office or ask that we mail you a copy for a fee. If you think any Information is wrong, you must write us. We will let you know what actions we take. If you do not agree with our actions, you may send us a statement. |
| For MA Insurance Customers only. You may ask in writing the specific reasons for an adverse underwriting decision. An adverse underwriting decision is where we decline your application for insurance, offer to insure you at a higher than standard rate or terminate your coverage. |
| Bank of America U.S. legal entities |
| Bank of America U.S. legal entities that utilize the names: Bank of America, Banc of America, U.S. Trust, LandSafe or Merrill Lynch, as well as the following entities: BACAP Alternative Advisors, Inc., BofA Advisors, LLC, BofA Distributors, Inc., General Fidelity Life Insurance Company, Managed Account Advisors LLC, NationsCredit Financial Services Corporation, The Princeton Retirement Group, Inc., SA Mortgage Services, LLC |
Federally Required Affiliate Marketing Notice
YOUR CHOICE TO LIMIT MARKETING- The Bank of America companies listed in this document are providing this notice.
- Federal law gives you the right to limit some but not all marketing from all the Bank of America affiliated companies. Federal law also requires us to give you this notice to tell you about your choice to limit marketing from all the Bank of America affiliated companies.
- You may limit all the Bank of America affiliated companies, such as the banking, loan, credit card, insurance and securities companies, from marketing their products or services to you based upon your personal information that they receive from other Bank of America companies. This information includes your income, your account history and your credit score.
- Your choice to limit marketing offers from all the Bank of America affiliated companies will apply for at least 5 years from when you tell us your choice. Before your choice to limit marketing expires, you will receive a renewal notice that will allow you to continue to limit marketing offers from all the Bank of America affiliated companies for at least another 5 years.
- You may tell us your choice to limit marketing offers, and you may tell us the choices for other customers who are joint account holders with you.
- This limitation will not apply in certain circumstances, such as when you have an account or service relationship with the Bank of America company that is marketing to you.
- For individuals with business purpose accounts, this limitation will only apply to marketing to individuals and not marketing to a business.
Bank of America Companies:
This notice applies to all Bank of America entities that utilize the names:
Bank of America
Banc of America
US Trust
LandSafe
Merrill Lynch
These entities include banks and trust companies; credit card companies; brokerage and investment companies; insurance and annuities companies; and real estate companies. In addition, this notice applies to the following Bank of America companies:
Managed Account Advisors LLC
The Princeton Retirement Group, Inc.
General Fidelity Life Insurance Company
SA Mortgage Services, LLC
NationsCredit Financial Services Corporation
BAL Corporate Aviation, LLC
BAL Energy Holding, LLC
BAL Energy Management, LLC
BAL Investment & Advisory, Inc.
BAL Solar I, LLC
BAL Solar II, LLC
BAL Solar III, LLC
BAPCC II, LLC
©2013 Bank of America Corporation
Notification of Order Name Changes
As a result of a Financial Industry Regulatory Authority (FINRA) rule change that applies to all FINRA member firms, including Merrill Lynch, on or about January 21, 2013, Stop and Stop Limit orders will be renamed Stop Quote and Stop Quote Limit orders, respectively. Depending on your Merrill Lynch service channel, you may have the option to place one or both of these order types. Investors generally use Stop Quote and Stop Quote Limit orders to either limit a loss or protect a gain on a security. For your convenience, below is a description of a Stop Quote order and a Stop Quote Limit order, including the triggering events.
Previous Order Name
Stop Order
New Order Name
Stop Quote Order Description
A sell Stop Quote order is placed at a stop price below the current market price and will trigger, if the national best bid quote is at or lower than the specified stop price.
A buy Stop Quote order is placed at a stop price above the current market price and will trigger if the national best offer quote is at or higher than the specified stop price.
Once triggered, a Stop Quote order becomes a market order (buy or sell, as applicable), and execution prices can deviate significantly from the specified stop price.
Previous Order Name
Stop Limit Order
New Order Name
Stop Quote Limit Order Description
A Stop Quote Limit order combines the features of a Stop Quote order and a limit order.
A sell Stop Quote Limit order is placed at a stop price below the current market price and will trigger, if the national best bid quote is at or lower than the specified stop price.
A buy Stop Quote Limit order is placed at a stop price above the current market price and will trigger, if the national best offer quote is at or higher than the specified stop price.
Once triggered, a Stop Quote Limit order becomes a limit order (buy or sell, as applicable) at a specified limit price, and execution may not occur as the market price can move away from the specified limit price.
Merrill Lynch is the marketing name for Merrill Lynch Wealth Management, Merrill Edge™, and The Private Banking and Investment Group, all of which are made available through Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”). Merrill Lynch makes available products and services offered by MLPF&S and other subsidiaries of Bank of America Corporation (“BAC”). Banking products are provided by Bank of America, N.A., and affiliated banks, members FDIC and wholly owned subsidiaries of BAC. Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
MLPF&S is a registered broker-dealer, member SIPC and a wholly owned subsidiary of BAC. Merrill Lynch, Bank of America, N.A., and their affiliates make available investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation or in which Bank of America Corporation has a substantial economic interest, including BofA™ Global Capital Management.
2013 Bank of America Corporation. All rights reserved. Code 470009PM-0113
Please review these agreements related to your CMA Account: Merrill Edge Self-Directed Investing CMA Account, Margin Lending Program Truth in Lending Disclosure Statement, Margin Client Agreement.
Merrill Edge® Self-Directed Investing Cash Management Account® (CMA® Account)
Disclosures and Account Agreement
The following pages contain the disclosures and agreement
governing your Merrill Edge Self-Directed Investing CMA Account,
including disclosures required by federal law.
ABOUT YOUR ACCOUNTS1. A Merrill Edge Self-Directed Investing CMA account is a securities account that offers you (hereafter referred to as "you" or "account holder" or "each person named on the account") access to a full range of investment products and services.
MERRILL EDGE SELF-DIRECTED INVESTING CMA ACCOUNT 2. A Merrill Edge Self-Directed Investing CMA account is an investment account that lets you trade and research mutual funds, stocks, fixed income and other securities, while providing check-writing, online bill payment, and a Visa card.
3. Merrill Lynch, Pierce, Fenner & Smith Incorporated (hereafter referred to as "Merrill Lynch" or "we" or "our" or "us") is a registered broker-dealer and a wholly owned subsidiary of Bank of America Corporation. Merrill Lynch is not a bank and is separate from its FDIC-insured affiliates, which include FIA Card Services, N.A., Bank of America California, N.A., Bank of America, N.A. (hereafter referred to as the "Merrill Lynch Affiliated Banks") or other depository institutions. Banking services available through the Merrill Edge Self-Directed Investing CMA Account are provided by or through licensed banks.
4. Merrill Edge Self-Directed CMA Accounts are governed by the rules and regulations of the Securities and Exchange Commission (SEC), the Federal Reserve System, the State of New York, and the Financial Industry Regulatory Authority (FINRA), as well as Merrill Lynch's own policies and procedures.
5. Except where disclosed, securities sold, offered or recommended by Merrill Lynch are not insured by the Federal Deposit Insurance Corporation (FDIC), may fluctuate in value, and are not obligations of, or endorsed or guaranteed in any way by, any bank. Merrill Lynch is solely responsible for its own contractual obligations and commitments.
OPENING AN ACCOUNT
6. To open an account you must provide certain information about yourself and other account holders.
7. Merrill Lynch, like all U.S. financial institutions, is required to follow federal regulations to assist the government in its efforts to fight money laundering and other financial crimes, and to counter terrorist financing efforts in the U.S. and globally. Merrill Lynch obtains specific personal information from you in order to verify your identity; and you may be required to present documentary evidence of your identity in the form of government-issued identification. Merrill Lynch also uses third-party vendors to verify customer information. Foreign nationals who are permanent legal residents of the U.S. may be required to present a Permanent Resident Card (i.e., "green card") and a Social Security number to open an account in a U.S.-based Merrill Lynch office. Non-individuals (e.g., a business, trust or estate) must submit sufficient evidence of legal status.
8. In addition to verifying the identity of our customers, Merrill Lynch captures personal information on all customers and related authorized parties who have the ability to transact, control, influence or manage an account, whether directly or indirectly. Merrill Lynch, at its discretion, may elect not to accept an account, or to terminate the account agreement and the account agreements of any related parties.
9. You may open a Merrill Edge Self-Directed Investing CMA account with a minimum of $2,000 in any combination of cash and securities.
INVESTING
10. Your account is used to buy, sell and hold securities and other property.
11. Please note that your account is debited on the settlement date of a securities transaction and not on the trade date.
12. Unless you are enrolled in our Margin Lending Program, trades must be conducted on a "fully paid basis," meaning they must be paid in full on the settlement date. If you wish to trade on margin, your account must be opened as a margin account (see "About Margin Lending," see number 154).
SIPC and "excess-SIPC" coverage
13. The securities and cash we hold in your account are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000 (inclusive of up to a maximum of $250,000 for cash).
14. In addition, Merrill Lynch has obtained "excess-SIPC" coverage from a Lloyd's of London syndicate. This policy provides further protection for each customer (including up to $1.9 million for cash), subject to an aggregate loss limit of $1 billion for all customer claims.
15. Neither SIPC protection nor the additional "excess-SIPC" coverage applies to deposits made through a bank deposit program, at the Merrill Lynch Affiliated Banks or elsewhere, or to other assets that are not securities, nor does it protect you against fluctuations in the market value of securities.
16. Each account held by a separate customer (as defined by applicable law) is treated separately for purposes of the above protection.
17. You may obtain further information about the SIPC, including the SIPC brochure, via the SIPC's website at http://www.sipc.org or by calling the SIPC at 202.371.8300.
CASH MANAGEMENT
18. The deposit of checks, the sale of securities and other activity generate cash in your account. Available cash balances are automatically swept into bank deposit accounts with FIA Card Services, N.A. (under the Merrill Lynch Direct Deposit Program), or an available tax-exempt money market mutual fund if your account has assets of $250,000 or more.
19. The option you select is known as your "primary money account." You initially select your primary money account by speaking to a Merrill Edge Representative. If you ever want to change your primary money account, you must contact a Merrill Edge Representative.
20. Your Merrill Lynch statement will indicate where your cash balances are deposited or invested.
21. At any time, you may withdraw available cash balances held in your account or access your money accounts using checks or Visa cards issued for use with your account or through electronic transfers. Cash balances will be used and money account balances will automatically be redeemed or withdrawn to pay for securities purchases or to meet margin calls or other obligations that arise in connection with your account (see "When and how your account is debited," number 71).
22. Deposited funds typically post to the account within 2 days of receipt. Funds are available for investment when posted, but can be held from withdrawal for up to 8 days. However, funds from electronic fund transfers, other than debits to third-party bank accounts originated through Merrill Lynch, and funds from deposits of many types of checks frequently can be withdrawn the next business day following their receipt by Merrill Lynch. Longer delays generally apply, among other things, to larger dollar deposits and deposits to new accounts. You can request more specific information about availability by calling the Investment Center at 1.877.653.4732. A business day is defined as one in which both the New York Stock Exchange and New York banks are open for business.
23. If we cease to offer a particular money account, we are authorized (but not obligated) to place cash balances automatically in another comparable money account.
24. Considerations when choosing a primary and/or an additional money account
- Think about your needs, goals, risk tolerance, investment time horizon and liquidity requirements.
- Yields may differ between money market mutual funds and bank deposit programs.
- Money market mutual funds and bank deposit programs have different types of protection/insurance coverage.
- Money market mutual funds have investment risk of various degrees and are not guaranteed or insured as to principal.
25. In your Merrill Edge Self-Directed Investing CMA Account, cash balances of $1 or more are automatically swept into your primary money account on the business day after the funds are received, provided the funds are received before our cashiering deadline.
26. If you have pending transactions in your Merrill Edge Self-Directed Investing CMA Account, on the business day funds are to be swept into your primary money account, the amount of those transactions may be deducted from the sweep amount.
27. Only whole dollar amounts are swept into your primary money account.
Primary Money Account-Merrill Lynch Direct Deposit Program
28. The Merrill Lynch Direct Deposit Program sweeps available cash balances to a separate bank deposit account at FIA Card Services, N.A. (member FDIC). Funds held in this account are protected by FDIC insurance for up to $250,000 per depositor, per ownership category, per bank.
29. Interest rates for the Merrill Lynch Direct Deposit Program are determined at the discretion of FIA based on economic and business conditions and are subject to change. A Merrill Edge Representative will be available to discuss alternatives for your cash or bank deposit account balances. However, Merrill Lynch does not undertake any obligation to ensure you receive any particular rate of interest, or to advise you to invest your cash or bank deposit balances in higher-yielding cash alternatives. The interest rates for the bank deposit accounts may be different from yields on money market funds and other cash alternatives. For current yields on bank deposit balances, call the Investment Center at 1.877.653.4732 or visit merrilledge.com (see the "Deposit Account & Money Fund Rates" link at the bottom of each page).
30. Interest on bank deposit accounts maintained through the Merrill Lynch Direct Deposit Program will be compounded on a daily basis and credited monthly.
31. For additional information about the Merrill Lynch Direct Deposit Program, including information about FDIC insurance and the way bank deposits benefit Merrill Lynch and FIA, see "About the Merrill Lynch Direct Deposit Program," page 18.
Primary money account-money market mutual funds
32. If your Merrill Edge Self-Directed Investing CMA Account has assets of $250,000 or more, you may also designate one of the following tax-exempt money market funds as your money account:
- BlackRock Investor Fund (BIF) Tax-Exempt Fund
- A State Fund under the BIF Multi-State Municipal Series Trust
- California
- Connecticut
- Massachusetts
- Michigan
- New Jersey
- New York
- Ohio
- Pennsylvania
34. See the applicable prospectuses for information on money market funds. We reserve the right to change, or add to, the available money market funds from time to time.
35. As with any investment in securities, investments in money market funds may fluctuate in value.
36. Investing involves risk. for more complete information on any mutual fund, please request a prospectus and/or, if available, a summary prospectus from a Merrill Edge Representative and read it carefully. Before investing, carefully consider the investment objectives, risks, and charges and expenses of the fund. This and other information can be found in the fund's prospectus and/or, if available, summary prospectus.
37. An investment in a money market fund is not a bank deposit, and is not insured or guaranteed by Bank of America, N.A., Merrill Lynch or any bank or affiliate of Merrill Lynch, the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a money market fund. Yields may vary daily.
38. Upon your purchase of any security, including a money market mutual fund, Merrill Lynch will receive compensation in accordance with the particular instrument(s) you purchased.
39. You may purchase shares in any of the money market funds without opening a Merrill Lynch account. Shares may be purchased through:
Merrill Lynch Financial Data Services Inc. Transfer Agency Operations Department P.O. Box 45290 Jacksonville, FL 32232-5290 40. For current yields on the tax-exempt money funds available as your primary money account, call the Investment Center at 1.877.653.4732 or visit merrilledge.com (see the "Deposit Account & Money Fund Rates" link at the bottom of each page).
41. Shares purchased through Financial Data Services will not be charged any Merrill Edge Self-Directed Investing CMA service fees. However, certain minimum investment requirements exist, and such share holders will not receive the additional services available to Merrill Edge Self-Directed Investing CMA Account holders.
42. Dividends are declared daily on money market fund shares and reinvested in additional shares, which are credited to your account each month.
Additional money accounts 43. You may only establish one primary money account for the automatic investment or deposit of cash balances in your account. However, you may establish multiple additional money accounts and make direct investments or deposits at any time by speaking to a Merrill Edge Representative.
44. If you have established money accounts in addition to your primary money account, and you do not have sufficient balances in your primary money account, your additional money account balances will be withdrawn or redeemed to satisfy securities and cash management transactions, including check writing and Visa card activity, in or through your account.
45. If you choose to establish more than one additional money account, you may designate the order in which the additional money account balances will be automatically withdrawn or redeemed to satisfy transactions in or through your account by speaking to a Merrill Edge Representative.
46. There may be minimum dollar requirements for direct investments or deposits into the available money accounts. Ask for the applicable money market fund prospectus or deposit account program disclosures for details on direct investments or deposits.
47. The following money market funds and deposit accounts are available as additional money accounts:
- BofA Cash Reserves � Investor Class
- BofA Government Reserves � Investor Class
- BofA Treasury Reserves � Investor Class
- BofA Government Plus Reserves � Investor Class
- BIF Money Fund
- BIF Treasury Fund
- BIF Government Securities Fund
- Merrill Lynch Direct Deposit Program
49. You may also be issued one or more Visa cards for use with your Merrill Edge Self-Directed Investing CMA Account. Visa cards may be used to make purchases at Visa participating establishments or to obtain cash and cash advances from ATMs and Visa participating banks or branches.
50. The Visa cards are issued to you by BANA, and checks are drawn on UMB Bank, n.a., or BANA, or such other bank as selected from time to time by Merrill Lynch. Check transactions are processed through an account established by Merrill Lynch with UMB Bank, n.a., or BANA.
51. ATM withdrawals and Visa card cash advances are debited against your Merrill Edge Self-Directed Investing CMA Account when the charge is presented to us. Visa card purchases are debited from your account once a month.
Purchasing power 52. The amount available for Visa card, check and other transactions is called your "purchasing power." Since your purchasing power is dependent upon a variety of factors, such as Visa card usage and, if you participate in the Margin Lending Program, the price of the securities held in your account, your purchasing power will fluctuate from day to day.
53. Purchasing power equals the total of any available cash balances in your account, your available money account balances and available credit through margin lending (if applicable).
54. Your purchasing power is adjusted at the following times:
- When the Visa card issuer is notified of a charge, not when charges are paid;
- On the trade date of securities transactions, not the settlement date;
- When you request a next-day fund transfer through the FTS, provided there is a sufficient balance in your account; and
- Two days prior to any future or recurring transfers through FTS, again provided there is a sufficient balance.
Exceeding your purchasing power 56. If you exceed your purchasing power in your Merrill Edge Self-Directed Investing CMA Account, you will be in default, which may result in, among other things, termination of your subscription to the Merrill Edge Self-Directed Investing CMA Account.
57. If a transaction in your Merrill Edge Self-Directed Investing CMA Account causes you to be in default, BANA may, but is not obligated to, accept the transaction amount exceeding your purchasing power as an overdraft and make unsecured advances of funds on your behalf. If BANA does so, you will be notified and you agree to pay immediately the amount of the overdraft together with any applicable finance charges. BANA overdraft loans incur finance charges on the average daily balance at an annual rate specified in the account agreement.
ATM transactions 58. In order to access an ATM using your Visa card, you will need a personal identification number (PIN). Upon receipt of your card, you will need to call Merrill Lynch to obtain a PIN. You should safeguard your PIN: Do not write it on your card or keep it in any place where it may be found with your card. Once a PIN is established, you will have the ability to change the PIN at most Bank of America ATMs. If you lose or forget your PIN, call the Investment Center at 1.877.653.4732.
59. Cash withdrawals: You may withdraw up to $2,500 a day with your Visa card. Please note, some ATM operators may have different limits on withdrawals. In addition, cash advances may be limited by banks to $5,000 per account per day.
60. There are no fixed limits on your Visa card transactions. You are only limited by your purchasing power or spending limit (see "Purchasing power," see number 52).
61. Deposits: You may deposit checks and cash at any deposit-taking Bank of America ATM. Checks may also be deposited at any Merrill Lynch branch office, but cash can only be deposited at a Bank of America ATM-it cannot be accepted at any Merrill Lynch branch office.
Deposit Type: Checks; Bank of America Deposit-Taking ATM: Yes; Merrill Lynch Branch Office (Cashier): Yes Deposit Type: Cash; Bank of America Deposit-Taking ATM: Yes; Merrill Lynch Branch Office (Cashier): No Deposits to brokerage accounts are not accepted by Bank of America banking center tellers.
62. Purchasing power (available balance) inquiry: You may view your account's purchasing power at most Bank of America ATMs by choosing to check your "Available Balance" on the ATM screen. Your purchasing power will be reflected at the ATM as follows:
- Total Available funds:1 This is the total amount of funds available to you at the time of your ATM balance inquiry.
1 Total Available Funds is not your account value; it's the amount available for purchases and/or transactions in your account at a particular point in time.
Checkwriting 64. Checks should be written in U.S. dollars only.
65. You may not use checks for your Merrill Edge Self-Directed CMA Account to:
- Purchase securities
- Purchase shares of the money funds
- Make deposits through the Merrill Lynch Direct Deposit Program
- Make payments on outstanding loans from, or overdraft advances extended by, BANA
67. The bank through which your checks are processed and Merrill Lynch reserve the right to pay post-dated checks, although it and we are not obligated to do so. The bank and we also reserve the right not to pay checks that it or we determine, in our sole discretion, are incomplete or improperly completed. Any checks that exceed your purchasing power or spending limit may also not be honored.
68. If you request checks be signed with a signature stamp or signature plate, you agree that such requirements are for your internal purposes only, and neither Merrill Lynch nor the bank through which your checks are processed will have any responsibility or liability for the payment of any check signed with a signature stamp/plate.
69. You may request a stop payment on a check. To stop payment, call the Investment Center at 1.877.653.4732 and provide details of the check, including the number, date, payee and exact amount. There may be a fee for this service (see "Other Fees and Charges," number 184).
70. If you provide information that is incorrect or untimely, or you do not comply promptly with a request for other reasonable information, neither Merrill Lynch nor the bank through which checks are processed will be responsible if payment cannot be stopped. If, for any reason, Merrill Lynch fails to stop payment on a check, we may, without liability, delay re-crediting your account while we determine the rights of parties involved. In addition, neither Merrill Lynch nor the bank processing your checks will be liable if, through inadvertent payment contrary to a request to stop payment, other items are returned unpaid.
When and how your account is debited 71. You agree to pay BANA for the Visa card purchases (including direct debits) posted to your Visa card account. You authorize Merrill Lynch to pay BANA from the assets in your Merrill Edge Self-Directed Investing CMA Account, including, if applicable, by making loans to you. Merrill Lynch will not debit your Merrill Edge Self-Directed Investing CMA Account until the Wednesday before the last Friday of the month for all purchases posted to your Visa card account for that monthly period ("Delayed Debit"). If purchases exceed $100,000 in a monthly cycle, you must execute a Statement of Purpose (Federal Reserve Form U-1) for BANA. If the Form U-1 is not on file, the entire amount of outstanding purchases will be immediately debited from your Merrill Edge Self-Directed Investing CMA Account. Any subsequent charges not exceeding $100,000 clearing the account during the same monthly cycle will be debited on the Wednesday before the last Friday of the month. Cash advances and ATM transactions obtained with your Visa card(s) at participating financial institutions or at ATMs will not be delayed and will be paid from the Merrill Edge Self-Directed Investing CMA Account on the date that the notice of the transaction is received by Merrill Lynch.
72. We will make payments for debits in the following order of priority:
- Available cash balances in your account
- Available balances in money accounts
- Available credit through margin lending (if enrolled)
74. Please note, if you expect to charge more than $100,000 to your Visa card in any monthly cycle, you must complete a Statement of Purpose form (Federal Reserve Form FR U-1) for the bank that issued your Visa card. If this form is not completed, the entire amount of your outstanding card purchases will be immediately debited from your account. Subsequent charges, provided they total less than $100,000, will continue to be debited on a monthly basis.
75. If for any reason your participation in the Merrill Edge CMA Access® Visa® Deferred Debit is cancelled, you must cease using your card(s). Current charges will be debited to your account on the next business day, and new items will be debited on receipt instead of at the end of the monthly cycle.
Charges made abroad 76. An international transaction fee equal to 2% applies to the U.S. dollar amount of all transactions that occur outside the U.S., including purchases, credits, ATM withdrawals and cash advance transactions. This fee will only apply to transactions submitted to Visa in a currency other than U.S. dollars and will be in addition to any other applicable transaction fees.
77. Visa transactions in a foreign currency are converted by Visa into a U.S. dollar amount in accordance with Visa's operating regulations and conversion procedures in effect at the time the transaction is processed. Visa's regulations and procedures currently provide that the currency conversion rate used is a rate selected by Visa from the range of rates available in wholesale currency markets, which rate may vary from the rate Visa itself receives, or a government-mandated rate. The method of currency conversion is subject to change by Visa without notice.
78. The currency conversion rate in effect on the processing date may also differ from the rate in effect on the transaction date or posting date. Transactions made in a foreign currency that are submitted to Visa in U.S. dollars will be posted to your account in that U.S. dollar amount.
Billing rights and overdrafts 79. YOUR BILLING RIGHTS
KEEP THIS NOTICE FOR FUTURE USE
80. This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
Notify us in case of errors or questions 81. If you think any transaction on your account statement or a BANA overdraft notice is wrong, or if you need more information about a transaction, you should write to Bank of America, N.A. (BANA), as soon as possible at:
Merrill Lynch
Attn: CMA Operations
NJ2-800-01-03
P.O. Box 1501
Pennington, NJ 08534-0671 82. In your letter, provide the following information:
- Your name, address and account number;
- The dollar amount of the suspected error;
- A description of the item in question; and
- Why you believe there is an error.
Your rights and our responsibilities after we receive your written notice 84. BANA must acknowledge your letter within 30 days unless it has corrected the error by then. Within 90 days, it must either correct the error or explain why it believes the statement or overdraft notice was correct.
85. After BANA receives your letter, it cannot try to collect an amount you question or report you as delinquent. It can continue to bill you for the amount, including finance charges, and can apply any unpaid amount against your purchasing power. You do not have to pay any questioned amount while BANA is investigating, but you are still obligated to pay any amount that is not in question.
86. If it is found that a mistake was made on your overdraft notice, you will not have to pay any related finance charges. If the bank finds that a mistake was not made on your statement or overdraft notice, you will have to pay the questioned amount, including any overdraft finance charges. The bank will notify you through us in writing of the amount owed and due date for payment.
87. If you fail to pay the amount that Bank of America, N.A., thinks that you owe, it may report you as delinquent. However, if Bank of America, N.A.'s explanation does not satisfy you, and you write to it within 10 days telling it that you still refuse to pay, it must tell anyone it reports you to that you have a question about your monthly transaction statement or overdraft notice. And, BANA must tell you the name of anyone it reported you to. Bank of America, N.A., must tell anyone it reports you to that the matter has been settled with you when it finally is.
88. If the bank does not follow these rules, it cannot collect the first $50 of the questioned amount, even if your statement or overdraft notice is correct.
ACCOUNT INFORMATION 89. You can obtain account information in three ways: through our Investment Center at 1.877.653.4732; on your account statements; and through merrilledge.com (once activated).
90. For more information on merrilledge.com, see number 94.
91. For deaf or hard-of-hearing clients, the TTY number is 866.ML7.DEAF (866.657.3323). Hours are 8:30 a.m. to 4:30 p.m., Monday through Friday ET.
Monthly transaction statements
92. Merrill Edge Self-Directed Investing CMA Account statements are sent each month.
93. Your statement(s) will include details of:
- Securities bought, sold and held in your account
- Other types of transactions in your account, including credit interest charges, if any
- Money account transactions
- Dividends or interest received on money account balances
- Visa card purchases and cash advances
- Checks drawn on your account
- Pre-authorized electronic transfers
- Other fund transfers
- Electronic bill payments
- ATM withdrawals and deposits
- Mobile check deposits
95. You may enroll in these services when you open your account. Once you have established an account and we have your signature on file, you may be eligible to enroll in these services at a later date.
HISTORICAL PRICING AND VALUATION SERVICE 96. You can request a report showing the securities held in your Merrill Edge Self-Directed Investing CMA Account as of a specific date. For an additional fee, you may also request that we provide historical values for publicly traded securities for gift, estate tax or other planning purposes.
97. Call the Investment Center at 1.877.653.4732 for more information about this service.
ACCOUNT STATEMENT LINKING 98. The Statement Link Service allows Merrill Lynch accounts to be "linked" so that account statements for all linked accounts are mailed in a single package.
99. Statements for linked accounts are sent to one of the account holders, who has been appointed as the other account holders' "agent" to receive their monthly statements and related notices or communications. Please note, all account holders remain responsible for verifying the accuracy of their individual statements, reading notices and directing activity in their individual accounts.
100. The assets of linked accounts are not commingled, and each account holder retains control over his or her individual account.
ACCOUNT LINKING TO BANK OF AMERICA DEBIT CARD 101. Certain Merrill Lynch brokerage accounts can be linked to a Bank of America debit card. Linking your brokerage account to your Bank of America debit card allows you to access your brokerage account at most Bank of America ATMs. If you choose to link your brokerage account to your Bank of America debit card and you also have a Merrill Lynch-branded deferred debit Visa card for your brokerage account, both cards will remain active with their respective PINs; however, your Merrill Lynch card will not be able to access your Bank of America deposit accounts. Please note though that any limitations applicable to the card being used (such as daily cash withdrawal limits) will apply when that card is used-regardless of the account being accessed. Linking of a brokerage account to a Bank of America debit card will allow you to transfer funds between your brokerage accounts at Merrill Lynch and your deposit accounts at Bank of America when using your Bank of America debit card.
102. Point of sale transactions with your Merrill Lynch deferred debit card will continue to clear against your brokerage account, and point of sale transactions with your Bank of America debit card will continue to clear against your primary bank account linked to that card.
103. Certain accounts may not have this ability. Please contact the Investment Center at 1.877.653.4732 if you have any questions.
AUTOMATED INVESTING 104. When you enroll in automated investing, we will automatically buy shares on your behalf in a mutual fund according to a predetermined schedule. You may enroll to invest through your accounts or transfer funds from your accounts for investment through another Merrill Lynch account. All mutual fund purchases are subject to the eligibility terms in the mutual fund's prospectus or statement of additional information. The availability of certain mutual funds and/or share classes offered by a mutual fund may be limited at Merrill Lynch to specific service models.
105. A Merrill Edge Representative can provide you with further information about this service.
ELECTRONIC BILL PAYMENT 106. You can pay your monthly bills with ease using our electronic bill payment service (also referred to as Bill Pay). The service allows you to make one-time or recurring payments from your Merrill Edge Self-Directed Investing CMA Account to third parties using your Web- connected home or office computer.
107. Bill payments are debited to your account electronically or by drafts that clear like Merrill Edge Self-Directed Investing CMA Account checks. Bill payments are clearly indicated on your monthly statements.
108. For fees applicable to this service, see "About Fees," see 182.
109. In the event of erroneous bill payments, we are authorized to credit or debit your account to correct such transactions, subject to applicable laws, rules and regulations. Payments will not be cleared if they exceed your purchasing power or spending limit (see "Merrill Edge CMA Access® Visa® Deferred Debit and Checks," number 48), and BANA is not obligated to provide you with funds as an overdraft.
110. For more information on electronic bill payment, refer to Bill Pay service at merrilledge.com or call the Investment Center at 1.877.653.4732.
DIRECT DEPOSIT 111. Through the direct deposit service, you can have payroll, pension, Social Security and other recurring payments sent electronically into your account on your payroll date or on the effective date of the payment, and those payments will be swept into your primary money account on the business day after the funds and data necessary to identify your account are received.
112. Go to merrilledge.com for more information about enrolling in this service.
DIRECT REINVESTMENT 113. By enrolling in the direct reinvestment service, you can have dividends from all New York Stock Exchange, American Stock Exchange and Nasdaq Stock Market-listed stocks and most mutual funds automatically reinvested into more shares of the same stock or fund without commission charges.
114. Call the Investment Center at 1.877.653.4732 for more information on this service.
FUNDS TRANSFER SERVICE 115. You can transfer funds electronically to accounts outside Merrill Lynch or to other central asset accounts at Merrill Lynch by enrolling in the Funds Transfer Service (FTS). There is a $100 minimum for electronic fund transfers.
116. You can arrange a funds transfer online at merrilledge.com or by calling 1.877.653.4732. Transfers will be completed as soon as the next business day (or the same day if between Merrill Lynch accounts). You can also set up recurring transfers.
117. Your accounts will be debited in the same order of priority described under "Merrill Edge CMA Access® Visa® Deferred Debit and Checks," see number 48, and the transfer will not be completed if it exceeds your purchasing power or spending limit. Fund transfers to your account will not be reflected in your purchasing power or spending limit for up to 6 days, subject to applicable laws.
118. Restrictions apply on fund transfers from certain fiduciary accounts. Call 1.877.653.4732 for details.
119. Please note that you will be prompted to call us to set up a password for use in initiating transfers. You should safeguard this password and not share it with anyone.
120. In the event of erroneous fund transfers, we are authorized to credit or debit your account to correct such transactions, subject to applicable laws, rules and regulations.
MERRILLEDGE.COM (www.merrilledge.com) 121. All account holders may enroll in merrilledge.com. This Internet- based service provides 24-hour access to your account information, Merrill Lynch research and investment information, market data, news and e-mail.
122. To activate this service, a User ID and password are required. It is important to safeguard this information.
123. If you have not created a User ID and password or have forgotten either of them, you can request this information online at merrilledge.com or by calling 1.877.653.4732.
INTER-COMPANY TRANSFER OF FUNDS 124. If you have both a Bank of America checking or savings account and a Merrill Lynch brokerage account, you may be able to transfer funds between these accounts using BankofAmerica.com or merrilledge.com. In order to transfer funds, your online profiles must be linked. To link your online profiles, log on to either BankofAmerica.com or merrilledge.com and follow the instructions to link your accounts. If you have any questions, please call 1.877.653.4732.
ADDITIONAL NOTES ON ELECTRONIC TRANSFERS 125. Your account may be subject to the federal law on electronic fund transfers if you maintain the account as a natural person (as opposed to a trustee or in another capacity) and have established your account primarily for personal, household or family purposes. Your rights and responsibilities will depend on the type of electronic transfer. From time to time, these rights and responsibilities may change. You will be notified of any changes as required by applicable law. If the change is necessary for security reasons, you do not have to be notified in advance.
126. Electronic transfers include:
- Visa card cash advances
- Visa point of sale transactions
- ATM withdrawals
- Transfers through a direct deposit service
- Transfers through the FTS
- Transfers through an ATM
- Pre-authorized debits through a program offered by a third party or us
- Transfers to and from your account under a bank deposit program
- Payments through our Bill Pay service or Merrill Lynch standing letters of authorization
128. Call immediately if a Visa card is lost or stolen, or if you think someone has transferred or may transfer funds from your account without permission:
- 800.262.LOST Toll-free
- 609.818.8000 From outside U.S. (collect calls accepted)
Merrill Lynch
Bankcard Processing
P.O. Box 1519
Pennington, NJ 08534-1519
130.Any funds that are redeemed or withdrawn in connection with a transaction for which you are not liable will be credited back to you or your account.
Limits on electronic transfers 131. You are limited to $2,500 a day in ATM withdrawals using your Visa card. Some ATM transactions that exceed this limit may be completed. In general, you may make an unlimited number of withdrawals, although some transactions may be limited or not completed for security reasons. Some ATM owners and operators may have limits on the frequency of transactions and the amount of cash withdrawals permitted.
Transaction information 132. You will be sent a monthly statement listing all electronic transfers for the preceding month. In addition, you will receive a receipt for all electronic transfers made with a Visa card at ATMs or other electronic terminals in the U.S.
133. You may also check on the status of transfers at any time by calling the Investment Center at 1.877.653.4732. Information about transfers is also available online at merrilledge.com.
Recurring transfers 134. To stop recurring electronic payments or transfers, call the Investment Center at 1.877.653.4732. If you prefer, you may write to us at:
Merrill Lynch
Attn: CMA Operations
NJ2-800-01-03
P.O. Box 1501
Pennington, NJ 08534-0671
135. Your notice to cease payments should be timed to arrive at least three business days before the payment is due to be made. If you have been asked to put a stop payment request in writing, you must write to us at the above address within 14 days of your telephone call.
136. Once stopped, recurring payments will not resume until we receive notice from you. Any request to change the title of an account will be treated as a request to stop payment of electronic transfers.
137. If you request that we stop a regular payment at least three business days before the electronic payment is scheduled and we do not do so, we will be liable for your losses or damages.
138. You may be charged a fee for stop payment requests. See "Other Fees and Charges," see number 184, for current fee information.
139. If you have arranged with a third party for recurring transfers from your account of variable amounts, the third party will notify you 10 days before each electronic payment of the amount and date of payment. If you prefer, you may choose to get this notice only when the amount falls outside certain limits.
140. If you have a Visa card, you will receive advance notice of the varying amounts of the monthly debit if the amount of the debit exceeds $500,000.
Our liability for failure to make transfers 141. If an electronic transfer is not completed on time or in the correct amount according to agreements governing the Merrill Edge Self-Directed CMA Account, we or the Visa card issuer may be liable for the resulting losses or damages.
142. There are some exceptions. Merrill Lynch and the Visa card issuer will not be liable, for instance, if:
- Through no fault on our or its part, the transfer amount will exceed your purchasing power or spending limit;
- Circumstances beyond our or its control (such as fire or flood) prevent the transfer, despite reasonable precautions that were taken;
- The ATM, electronic terminal or electronic system was not working properly and you knew about the breakdown when the transfer started; or
- The ATM where you obtained cash did not have enough cash.
Reporting errors or questions 144. If you see an error or have a question about an electronic transfer, including electronic bill payments, call the Investment Center at 1.877.653.4732 or write to us at the address below. We must receive notice of problems or errors within 60 days after the first statement or receipt was sent on which the problem or error appeared.
145. If you call us, we may ask you to report the error or problem in writing within 10 business days.
146. Report errors or problems in writing to: Merrill Lynch Attn: CMA Operations NJ2-800-01-03 P.O. Box 1501 Pennington, NJ 08534-0671
147. Include the following information:
- Your name, address and account number
- A description of the error or the electronic transfer you are unsure about
- The amount of the suspected error
149. If it is decided that no error occurred, you will be sent a written explanation within three business days after the investigation is finished. You may ask for copies of the documents used in the investigation.
Disclosure of account information 150. Subject to applicable law, we, the Visa card issuer or banks holding your deposit accounts will disclose information to third parties about your Merrill Edge Self-Directed CMA Account and Visa card only:
- Where it is necessary to complete a transaction;
- To third parties, including our affiliates, who have a business purpose for requesting information regarding the account or card;
- To credit bureaus and other consumer-reporting agencies;
- To comply with a government agency or court orders;
- If you have given written permission; or
- If you authorize a merchant to automatically initiate recurring payments.
152. Effective October, 28, 2013, federal law will provide certain rights and obligations related to Remittance Transfers that may differ from rights and obligations that apply to other types of electronic transfers, including disclosure, cancellation and error resolution rights. To the extent the provisions of this agreement are inconsistent with the oral or written disclosures provided to you for a Remittance Transfer governed by section 919 of the Electronic Fund Transfer Act (EFTA), 15 U.S.C. Section 1693o-1, the terms of such disclosures shall govern. Notwithstanding anything to the contrary contained herein, rights and obligations that apply to Remittance Transfers are as set forth in EFTA, and as applicable, as set forth in New York law.
153. Wire transfers to your account or funded from your account or otherwise funded by you may involve one or more funds transfer systems, including without limitation, Fedwire or Clearing House Interbank Payments System (CHIPS). Accordingly, notwithstanding any choice of law that may be provided elsewhere in this agreement, such wire transfers will be governed by the rules of any funds transfer system through which the transfers are made, as amended from time to time, including without limitation, Fedwire, the National Automated Clearing House Association, any regional association (each an "ACH") and CHIPS. Funds transfers through Fedwire will be governed by and subject to, Regulation J, Subpart B, and Uniform Commercial Code Article 4A incorporated by reference hereunder. Wire transfers through CHIPS are governed by, and subject to, CHIPS Rules and Administrative Procedures and by the laws of the State of New York, including Article 4-A of the New York Uniform Commercial Code, regardless of whether the payment message is part of a wire transfer that is a Remittance Transfer, except that in the case of an inconsistency between New York law and EFTA, EFTA shall govern.
ABOUT MARGIN LENDING 154. Our Margin Lending Program allows you to borrow against the value of eligible securities in your Merrill Edge Self-Directed CMA Account. We may refer to the program as the Margin Lending Program. You can use a margin loan to buy securities or sell securities "short," or as a source of credit for purchases using your CMA Visa card or checks.
155. Currently, you can borrow up to 50% of the market value of most exchange-listed stocks in your Merrill Edge Self-Directed CMA Account. A greater or lesser percentage of the value of bonds and other types of investments is available.
156. With margin lending, you pay interest only on the amount you borrow. Payments are not required as long as your account meets minimum equity requirements. There are no filing fees, application fees or points.
157. You must keep a minimum of $2,000 in equity in your Merrill Edge Self-Directed CMA Account to remain eligible for margin lending. In general, you may enroll only one account. Certain fiduciary accounts, such as custodial accounts, are not eligible for this program
158. Margin requirements are subject to change and may vary depending upon factors such as security type, market price and concentration. Certain Internet-related and other volatile securities and holders of controlled and restricted securities may be subject to higher initial equity and maintenance requirements. Merrill Lynch may change initial equity and maintenance requirements at any time without notice.
159. Borrowing against tax-exempt bonds, tax-exempt municipal funds and tax-exempt unit investment trusts may involve the loss of the interest deduction from taxable income. You should check with your tax advisor before borrowing against tax-exempt investments or having them priced in your account.
Margin interest rates 160. Interest will be charged for any loan extended to you, whether for the purpose of buying, trading or carrying securities or for other purposes.
Eligible securities, borrowing limits and maintenance requirements* Security: Common Stock: Initial Equity At Least 50% of purchase cost; Borrowing Power Up To 50% of long-market value; Maintenance Requirement At Least 30% of long-market value.
Security: State and municipal bonds: Initial Equity At Least 20% of purchase cost or 7% of principal, whichever is greater; Borrowing Power Up To 80% of long-market value or any amount over 7% of principal, whichever is less; Maintenance Requirement At Least 15% of long-market value or 7% of principal, whichever is greater
Security: Most Merrill Lynch-sponsored unit investment trusts: Initial Equity At Least 100% of purchase cost; Borrowing Power Up To 50% of long-market value once fund has been owned for 31 days; Maintenance Requirement At Least 30% of long-market value, regardless of share price.
Security: Other approved unit investment trusts: Initial Equity At Least 100% of purchase cost; Borrowing Power Up To 50% of long-market value once fund has been owned for 31 days; Maintenance Requirement At Least 30% of long-market value, regardless of share price.
Security: Approved open-end mutual funds†??Equity At Least 100% of purchase cost; Borrowing Power Up To 50% of long-market value once fund has been owned for 31 days; Maintenance Requirement At Least 30% of long-market value, regardless of share price.
Security: Convertible bonds: Initial Equity At Least 50% of purchase cost; Borrowing Power Up To 50% of long-market value or any amount over 7% of principal, whichever is less; Maintenance Requirement At Least 30% of long-market value or 7% of principal, whichever is greater
Security: Non-convertible bonds: Initial Equity At Least 30% of purchase cost or 7% of principal, whichever is greater; Borrowing Power Up To 70% of long-market value or any amount over 7% of principal, whichever is less; Maintenance Requirement At Least 30% of long-market value or any 7% of principal, whichever is greater.
Security: U.S. Treasury notes and bills: Initial Equity At Least 5% of purchase cost�; Borrowing Power Up To 95% of long-market value; Maintenance Requirement At Least 5% of long-market value�.
Security: U.S. Treasury bonds: Initial Equity At Least 8% of purchase cost�; Borrowing Power Up To 92% of long-market value; Maintenance Requirement At Least 6% of long-market value�.
Security: Other government agency issues: Initial Equity At Least 10-15% of purchase cost�; Borrowing Power Up To 90% of long-market value; Maintenance Requirement At Least 6-10% of long-market value�.
*This chart is only intended as a general guide. Please call the Investment Center at 1.877.653.4732 for more complete information on margin eligibility, initial equity and maintenance requirements.
† Credit is not extended on money market mutual funds.
� Minimum requirement is 3% of principal amount. 161. Your interest rate will be the current Merrill Lynch base lending rate (BLR) plus a supplementary percentage based on your average daily loan balance. The BLR is adjusted from time to time with reference to commercial interest rates and market conditions. To obtain the current BLR, call the Investment Center at 1.877.653.4732.
On average daily balances of less than $25,000: Rate* ML BLR + 3.375%
On average daily balances of $25,000�$99,999: Rate* ML BLR + 2.250%
On average daily balances of $100,000�$499,999: Rate* ML BLR + 0.875%
On average daily balances of $500,000�$999,999: Rate* ML BLR + 0.625%
On average daily balances of $1,000,000�$4,999,999 Rate* ML BLR � 0.000%
On average daily balances of $5,000,000�$9,999,999 Rate* ML BLR � 0.500%
On average daily balances of more than $10,000,000 Rate* ML BLR � 0.750%
*Rates effective as of 3.4.2013.
162. The rates shown may vary in individual situations at Merrill Lynch's discretion.
163. Your total interest rate is subject to change without notice in accordance with changes in the BLR and your average daily loan balance. If there is a change in the BLR during a charge period, you will be charged the new interest rate for the remainder of the charge period or until another change in the BLR occurs. If your rate is changed for any other reason, you will receive a written notice at least 30 days before the change.
164. Your account statement will show the interest rate applied, the average daily loan balance, the number of days the loan was outstanding, and the actual interest charged to your account for the charge period. If there was a change in the BLR during the charge period, your account statement will itemize that information for each rate applied during the charge period.
Charge period 165. The period for which interest charges are made runs from the last Friday of each month up to and including the last Thursday of the following month. There are three variations to this: (1) if the last Friday of the month is a holiday, then the interest charge period will end one business day earlier; (2) in December, the interest charge period will end on the next-to-last business day of the year (and the interest charge period for January of the following year will begin on the last business day of the year); and (3) for accounts that receive calendar month-end statements, the interest charge period runs from the last business day of the calendar month up to and including the next-to-last business day of the calendar month.
166. The interest charge period parallels the monthly statement period, except that interest for the final day of the statement period will be carried over and reflected on the next month's statement. The final day of the statement period is the last Friday of the month, except (1) if that Friday is a holiday, the final day of the statement period is the prior business day; (2) in December, when the final day of the statement period is the last business day of the year; and (3) for accounts that receive calendar month-end statements, the final day of the statement period is the last business day of the calendar month.
167. The average daily debit-balance entry which will appear on your statement is calculated based upon the number of days on which there was a debit balance in your account and not on the total number of days in either the charge period or the statement period.
Calculation of charges 168. The interest charge is determined at the close of the charge period by multiplying the average daily loan balance by the applicable interest rate and the number of days a loan was outstanding, then dividing by 360.
169. If the base lending rate was changed during the charge period, interest charges are calculated separately for the appropriate number of days at each rate and itemized on your statement.
170. Interest charges are due and payable at the close of the charge period. The exact amount due may be obtained by contacting the Investment Center at 1.877.653.4732. If you do not pay the interest charge at the close of the charge period, the interest will be added to the opening loan balance for the next charge period.
Short sales 171. The market values of securities you sell "short" are adjusted daily for interest calculation purposes by a process called "marking to market." "Short sales against the box" are treated in exactly the same way as short sales.
172. The market value of all securities sold short in your account, including securities sold "short against the box," are treated as a debit for the purpose of calculating interest charges. The closing market value of the securities which were sold short is determined each business day and is either added to the net debit balance or subtracted from the net credit balance in order to calculate interest charges.
173. If the total market value of the securities sold short increases, then the debit adjustment to the net balance will increase by the same amount for the calculation of interest charges. Conversely, if the total market value of the securities sold short decreases, then the debit adjustment to the net balance will also decrease by a like amount for the calculation of interest charges. The market value of "long" securities held in your account against which a short sale is made is not included in the computation of interest charges.
174. Please note that upward or downward adjustments of balances are for interest calculation purposes only.
A note on selling securities not in your account 175. If you sell securities through us that you own but have not yet placed into your account, they must be delivered to Merrill Lynch by the settlement date of the transaction. Proceeds of such sales will not be used as an offset in calculating interest charges until the securities are received into your account in good deliverable form. Similarly, credits resulting from the exercise of employee stock options and sale of the underlying stock will not be used as an offset until the securities are actually received into your account in good deliverable form.
The exercise of an employee stock option may include either (1) a loan to you by Merrill Lynch for the amount of the exercise price, together with any additional tax withholding, up to the maximum amount that may be obtained under federal law, currently 50% of the value of most equity securities; or (2) an advance of funds for the amount of the exercise price, together with any additional tax withholding up to the net sales proceeds to be received if you are exercising an option and concurrently selling the securities. In computing interest charges, any credit resulting from the proceeds of such a sale will not be used as an offset until the securities to be obtained on the exercise of your employee stock option are actually received into your account in good deliverable form.
Option trading 176. Options can be traded through your Merrill Edge Self-Directed CMA Account and may be used to hedge a leveraged position. However, options themselves cannot be bought or sold on credit or borrowed against for purchases of any kind.
177. Please note that option trading must be approved in advance by Merrill Lynch and additional documents are necessary. Option transactions involve certain risks and are not appropriate for every investor. Contact the Investment Center at 1.877.653.4732 for specific information.
178. Writers of options, other than certain covered call writers and certain writers of cash-secured puts, must comply with the applicable initial equity and maintenance requirements that are set by Merrill Lynch, subject to minimum requirements imposed by the Federal Reserve Board, by securities and options exchanges, and by other self-regulatory organizations. These requirements vary depending on the underlying interest and the number of option contracts sold, and may be increased at any time by any of the above-mentioned organizations.
179. In addition, we may impose certain position limits, and additional initial equity and maintenance requirements may be imposed from time to time without notice. If these limits and requirements are not met, Merrill Lynch may close sufficient option contracts to bring the account into compliance with them.
Liens and additional collateral 180. Any securities or other property in any of your accounts with us are collateral for any debit balances in any of your accounts. A lien is created by these debits to secure the amount owed to us. We retain the right to require additional collateral any time we deem it necessary for our protection. These maintenance calls can be met by the prompt delivery of either additional acceptable securities or cash.
181. In accordance with the terms of our Client Agreement, should the equity in your account(s) fall below our minimum maintenance requirements for margin, securities in your account(s) may be sold to reduce or satisfy your debit balance. At present our minimum maintenance requirement for equity stocks eligible for margin is 30% of their current market value or $3 a share, whichever is greater. As to our minimum requirements for other types of securities or transactions, contact the Merrill Edge Self-Directed Investment Center. Minimum maintenance requirement as well as initial requirements are subject to change without notice.
You agree that to the extent permitted by New York law, Merrill Lynch shall collect from you reasonable costs and expenses of collection of any such debit balance(s) and any unpaid deficiency in your account, including but not limited to attorneys' fees that Merrill Lynch incurs or pays in connection with such efforts.
ABOUT FEES 182. Unless otherwise indicated, all fees are nonrefundable and are subject to change upon notice.
ANNUAL ACCOUNT AND VISA CARD FEES
Merrill Edge Self-Directed CMA Account: No fee
CMA Access Visa card:No fee
FEES FOR OPTIONAL SERVICES
merrilledge.com: No fee
Electronic bill payment: No fee
Funds Transfer Service: No fee
Account linking: No fee
TRANSACTION FEES Securities purchases/sales: Commissions vary*
Money fund share purchases: No fee
Money fund share redemptions: No fee
Checkwriting: No fee
ATM transactions (cash advance, balance inquiry, deposit): No ATM fees will be charged to Merrill Edge Self-Directed clients when accessing any Bank of America or non-Bank of America ATM. ATM Operator Fees at non Bank of America ATM machines: No reimbursements on fees/surcharges.
Visa international transaction fee: 2% of the U.S. dollar amount of all transactions occurring outside the U.S.
Cash advances on Visa cards: 0.25% of total dollar amount, $2.50 minimum†
Account transfers (to another firm): $49.95
*On most transactions, there is also a processing fee (shown on the confirmation) to help cover the costs associated with trades and statement processing. † International cash advances on domestic Merrill Edge Self-Directed CMA Accounts will not be charged FINANCE CHARGES Bank of America, N.A. overdrafts daily periodic rate: 0.049315% (18% annual percentage rate) Margin interest charges: See "Margin Interest Rates," see number 160.
OTHER FEES AND CHARGES 183. You will be charged brokerage fees for securities transactions made through your account. Visit merrilledge.com for more information.
184. The following miscellaneous fees may apply to Merrill Edge Self- Directed CMA Accounts:
Stop payment order: $0
Wire transfer domestic or international (U.S. currency): $24.95
International Fedwire (Outgoing) (Non-U.S. currency): $0
Returned deposit fee: $0
Returned check fee: $30
Voluntary exchange fee: $30
Return of pre-authorized debit: $20
Security delivery (Not DRS* eligible or not participating securities): $500
Security delivery (DRS eligible)*: $25
Deposit of bond coupon: $5
Reregister deceased name securities: $50
Clearance/Collection of non-U.S. dollar deposits: $10/$60
*DRS eligibility is determined by the issuer of the stock.
185. Charges may also be imposed for transfers through the FTS that are rejected due to insufficient or uncollected funds, and for providing originals or copies of checks that have been processed.
186. We receive a distribution fee and an affiliate receives a management fee from the money market funds. In addition, other affiliates of ours may receive fees for providing services, such as management and transfer agency services, to the money market funds. We also receive a recordkeeping and services fee from FIA Card Services, N.A., with respect to deposits in the Merrill Lynch Direct Deposit Program. In connection with Visa cards, our affiliates may receive fees from sources other than Merrill Lynch clients.
187.Merrill Lynch and the Merrill Lynch Affiliated Banks reserve the right to change any fees or charges, or to implement additional fees or charges at any time, subject to the applicable law.
ACCOUNT AGREEMENT 188. By maintaining your Merrill Edge Self-Directed CMA Account, you acknowledge that you have received and read this agreement, the Merrill Edge Self-Directed CMA Account disclosures, any applicable money market fund prospectuses and the Merrill Lynch Direct Deposit Program disclosures, and that you are agreeing to the terms and conditions in these documents.
189. You certify that all information you provide in connection with the establishment of your accounts, including in reference to checks and Visa cards, is true and correct and that Merrill Lynch, the Merrill Lynch Affiliated Banks and UMB Bank, n.a., may rely on and verify such information.
Securities and other property 190. In this agreement, the term "securities and other property" means money, securities, securities entitlements, financial assets, investment property, financial instruments and commodities of every kind and nature and related contracts and options relating thereto, whether for present or future delivery. This includes securities and other property currently or in the future held, carried or maintained by us or by any of our affiliates, in our possession or control (or the possession or control of our affiliates) for any purpose, for any of your accounts now or in the future opened, including any accounts in which you may have an interest.
Merrill Edge Self-Directed CMA Account 191. The Merrill Edge Self-Directed CMA Account consists of:
- A Merrill Edge Self-Directed Investing CMA Account;
- A money account for each such account (see "Primary money accounts" and "Additional money accounts," see numbers 25-47);
- Visa cards and a checkwriting facility; and
- An optional Margin Lending Program.
193. You agree that Merrill Lynch may reasonably withhold access to money account balances until we are satisfied that amounts credited to your accounts have been collected. We may satisfy amounts you owe in connection with your accounts (including debit balances in your accounts, Visa card debits or charges, checks presented, or investments or deposits later reversed) from your assets, including money account balances, or through margin lending (if applicable).
194. You accept that certain fees (see "About Fees," see number 182), which are subject to change, will be charged to your accounts for financial services we provide.
Extraordinary events 195. You agree that Merrill Lynch, its affiliates, UMB Bank, n.a., and the Merrill Lynch Affiliated Banks will not be liable for loss caused directly or indirectly by government restrictions, exchange or market rulings, suspension of trading, war, strikes or other conditions beyond their control.
Account documents 196. You agree that we, UMB Bank, n.a., and the Merrill Lynch Affiliated Banks have the right, subject to applicable law, to amend any agreements and disclosures relating to your accounts, including this account agreement, by notifying you in writing. You agree that any such amendments shall be effective as of any date we or UMB Bank, n.a., and the Merrill Lynch Affiliated Banks establish, subject to applicable law. Unless the context otherwise requires, the term "agreement" shall include the agreements and disclosures relating to your account, as amended from time to time.
197. You accept there may be additional documentation required from you by applicable law or by the policies and procedures of Merrill Lynch, UMB Bank, n.a., or the Merrill Lynch Affiliated Banks. You agree to comply promptly with any such requests for additional documentation.
Credit information 198. You authorize Merrill Lynch and its affiliates (including the Merrill Lynch Affiliated Banks) to request a consumer report about you from one or more consumer reporting agencies for the purposes of:
- Evaluating your application for the CMA financial service or related program or service;
- Reviewing or collecting any account opened for you; or
- Any other legitimate business purpose.
200. You understand that Merrill Lynch shares information with its affiliates, UMB Bank, n.a., and the Merrill Lynch Affiliated Banks in accordance with our privacy policies. For more information on how and why we can share information, please read our "U.S. Consumer Privacy Notice" by visiting www.ml.com/privacy.
Account notices and communications 201. You agree that communications, including monthly statements and other notices, may be sent to your address or to such other address as you provide in writing.
202. All communications so sent, whether by mail, messenger or otherwise, will be considered to have been given to you personally upon such sending, whether or not you actually receive them.
203. Reports of the execution of orders (confirmations) and statements of account shall be conclusive if not objected to by written notice delivered to us within 10 business days after delivery of or communication of the reports or statements to you by us.
Joint accounts and joint and several liability 204. If there is more than one account holder, their obligations are "joint and several." The legal ownership of the account shall be in such form as you designate and as confirmed by Merrill Lynch, as reflected in the account title. If no designation is made, Merrill Lynch is authorized to deal with account holders as tenants in common (without rights of survivorship).
205. If you are a U.S. citizen, legal ownership of the account will be governed by the internal laws of your state of permanent residence. If you are a nonresident alien, you agree that the form of joint ownership designated for the account shall be governed by the internal laws of the State of New York (notwithstanding the laws of any other jurisdiction to the contrary). You also agree to submit to the jurisdiction of the courts of New York and the federal courts in the Southern District of New York for purposes of determining all matters with regard to the account and consent to service of process by certified mail to the account's address of record.
206. All account holders agree that each account holder has authority to transact any business on behalf of the account as fully and completely as if he or she were sole owner of the account.
207. Merrill Lynch is authorized, subject to our policies and procedures, to accept written or oral orders and instructions with respect to the account from each account holder, without notice to any other account holder, for the receipt or transfer and withdrawal of funds by check, wire transfer or otherwise, and for the purchase, sale, exchange, transfer or other disposition of securities and other property (with or without consideration), including, but not limited to, checks drawn to, or transfers made directly to, the account holder requesting the check or transfer and/or to third parties.
208. Merrill Lynch reserves the right to require joint instructions by all account holders or a court order at any time with regard to the transfer of funds or securities.
209. If the account holders have enrolled in the Margin Lending Program, all account holders further agree that all securities and other property that Merrill Lynch may be holding for any of them, either in this account or otherwise, shall be subject to a lien for the discharge of obligations of this account to Merrill Lynch. Such lien is in addition to any rights and remedies Merrill Lynch may otherwise have.
210. All statements, notices or other communications sent or given to one account holder by Merrill Lynch shall be considered notice to all account holders.
Ownership changes on joint accounts 211. On the death of an account holder, the divorce of married account holders, the assignment of an account holder's interest or other event that causes a change in ownership, all account holders or the surviving account holder(s), as applicable, shall immediately give Merrill Lynch written notice thereof. In such event, Merrill Lynch may take such action, including requiring such documents or imposing such restrictions on the account, as we deem necessary in the circumstances.
212. The estate of a deceased account holder and a departing account holder by assignment or divorce shall remain liable, jointly and severally, with the remaining or surviving account holder(s) for any obligations of the account arising before Merrill Lynch receives such notice, or incurred in liquidation of the account or the adjustment of the interests of the account holders.
213. In the event of any such change of ownership of the account, Merrill Lynch is authorized to divide or retitle the account in accordance with the form of legal ownership of the account as reflected on our records or by written instructions of the remaining or surviving account holder(s), or by obtaining a court order, as we may reasonably determine is appropriate in the circumstances.
214. Unless agreed otherwise among account holders in writing provided to Merrill Lynch, joint accounts designated "with right of survivorship" (e.g., JTWROS) shall vest the interest of a deceased account holder in the surviving account holder(s). Accounts designated "without right of survivorship" (e.g., TIC) shall entitle the estate of a deceased account holder and the surviving account holder(s) to equal shares of the account.
215. All account holders agree to indemnify Merrill Lynch against any liability, loss or expense incurred from acting in accordance with this agreement in the event of a change of ownership of the account.
Visa cards and checks 216. You agree that Visa cards issued to you remain the property of the issuing bank and may be cancelled by the issuing bank at any time without prior notice.
217. You agree that you will be liable for all authorized transactions arising through the use of Visa cards and checks. You will be responsible, on a continuing basis, for the safekeeping of your cards and checks and shall not permit an unauthorized person to have access to them.
218. In addition, you will be responsible for reviewing your monthly statement in order to discover and report to Merrill Lynch any possible unauthorized use of your Visa cards and checks. You agree to notify us immediately if you believe or have reason to believe there may be or has been an unauthorized use of your Visa cards or checks.
219. Unless limited by law, you agree you are liable for any losses and damages arising from any breach of these undertakings to safeguard your Visa cards or checks, to review your statements and to promptly report any unauthorized activity.
220. You also agree to pay the reasonable costs and expenses of collecting any unpaid balance due, including any accrued finance charges, as a result of any overdraft(s), including attorneys' fees, to the extent allowed by law, involved in such collection.
221. You understand that, under this agreement, UMB Bank, n.a., and the Merrill Lynch Affiliated Banks have not taken a security interest in any of the assets in your account or money accounts.
222. You agree to pay Bank of America, N.A. (BANA), for all purchases made using your Visa cards. You authorize Merrill Lynch to pay BANA from the cash balances in your account, through a margin loan (if you have enrolled in the margin lending service) or by withdrawing or redeeming your money account balances. Payments will be made in the order described in number 72. Payments will be made on the Wednesday before the last Friday of each month for all purchases made in that monthly period.
223. If at any time, however, your total purchases exceed $100,000 during any monthly cycle, the entire amount will immediately be debited from your account, unless BANA has received a signed statement of purpose form (Federal Reserve Form FR U-1) from you. Further charges (provided they are less than $100,000) will be debited at the normal time. You agree to waive your right under federal law to be notified in advance of variable debits provided the amount does not exceed $500,000.
224. You may make payments by other means, provided they are compatible with our operations and procedures, and you agree to notify Merrill Lynch of your intention to do so.
225. You agree that you will not dispose of assets in your Merrill Edge Self-Directed CMA Account or any other account with Merrill Lynch or its affiliates if such disposal will negatively affect your ability to pay BANA for card transactions. You may continue, however, to trade securities in your Merrill Edge Self-Directed CMA Account.
Purchasing power 226. You agree that you will not incur charges with your checks and cards that exceed your purchasing power, which is defined as the total cash or free credit balance in your account, your available money account balances and, if applicable, available credit under the Margin Lending Program. You understand that your purchasing power may fluctuate from time to time and day to day.
227. If a charge exceeds your purchasing power, you will be in default, and Merrill Lynch may, among other things, terminate your subscription to the Merrill Edge Self-Directed CMA Account.
Overdrafts 228. If you exceed your purchasing power, Bank of America, N.A. (BANA), may accept the transaction as an overdraft and advance you funds for the amount exceeding your purchasing power. If this happens, you will be notified and you agree that you will immediately pay the amount of the overdraft and any applicable finance charge.
229. Finance charges will be imposed for overdrafts at an 18% annual percentage rate. The daily periodic rate is 0.049315%.
230. We figure the finance charge by applying the periodic rate to the "average daily balance" of your overdrafts. To get the "average daily balance," we take the beginning balance of your overdrafts each day, add any new overdrafts, and subtract any payments or credits, and unpaid finance charges. This gives us the daily balance. Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the "average daily balance."
231. Finance charges accrue from the date BANA accepts an overdraft until the date on which payment is made. Any payments you make will be applied on the date of receipt, first to any accrued and unpaid finance charges and then to the balance of overdrafts in the order they were incurred.
232. You will be notified in writing if you have been provided with an overdraft.
233. You may remit payment for your overdraft in one of the following manners:
- Transfer funds from another Merrill Lynch account at merrilledge.com (if applicable).
- Send a check or money order, payable to Merrill Lynch, to:
Merrill Lynch
P.O. Box 256
Newark, NJ 07101-0256
Include your account number on your check or money order to ensure proper credit to your account. You may not use a Merrill Lynch check drawn on the same account that has the debit balance. - Make a deposit at any Merrill Lynch branch office or Bank of America deposit-taking ATM.
- Wire funds from an external account at another institution to your Merrill Lynch account.
- Liquidate securities held in the account.
- Consider upgrading to a margin account and transfer the debit for an interest rate lower than the overdraft. Current margin rates can be viewed on merrilledge.com or by contacting a Merrill Edge Representative at 1.877.653.4732.
Pledging and lending assets 235. If you enroll in the Margin Lending Program, you agree that we have the right, subject to limitations under applicable laws, rules and regulations, to pledge or repledge securities and other property in your accounts, either separately or in common with other such securities or property, and for any amount due in your account, or a greater amount. We may do so without notice to you and without retaining in our possession or under our control for delivery a like amount of similar securities or other property.
236. In return for extending credit to you under the Margin Lending Program, you acknowledge and agree that we may lend, either to Merrill Lynch or to others, the securities in your account (along with all attendant rights of ownership), to the extent not prohibited by applicable laws, rules and regulations. You understand that we may receive and retain certain benefits to which you will not be entitled in connection with such loans. You agree that, in certain circumstances, such loans could limit your ability to exercise voting rights, in whole or in part, with respect to the securities lent. In addition, you acknowledge that, in using certain securities in your account for, among other things, settling short sales and lending the securities for short sales, we may receive compensation in connection therewith.
Exercising employee stock options 237. In order to sell shares under your company's stock option plan, you hereby constitute and appoint Merrill Lynch as your agent and attorney- in-fact for the purpose of:
- Determining and selling the number of shares of stock required to pay the amounts due upon exercise of the options;
- Making such payments; and
- Taking such further actions as shall be necessary to implement your employee stock option exercises.
239. All company stock held or carried in your Merrill Edge Self-Directed CMA Account shall be subject to a lien for the discharge of any debt resulting from funds advanced to you for payment of the stock option exercise, applicable taxes, interest, and fees or commission.
Margin Lending Program 240. If enrolled in the Margin Lending Program, you agree to maintain such securities and other property in your account as required by Merrill Lynch.
241. In this agreement, the term "securities and other property" means money, securities, securities entitlements, financial assets, investment property, financial instruments and commodities of every kind and nature and related contracts and options relating thereto, whether for present or future delivery. This includes securities and other property currently or in the future held, carried or maintained by us or by any of our affiliates, in our possession or control (or the possession or control of our affiliates) for any purpose, for any of your accounts now or in the future opened, including any accounts in which you may have an interest.
242. You understand and agree that any credit extended to you in connection with your Merrill Edge Self-Directed CMA Account is primarily for investment or business purposes.
243. You agree that your monthly margin loan balance shall be charged interest at a rate permitted by the laws of the State of New York. If interest charges are not paid at the close of a charge period, they will be added to the opening balance for the next charge period. Interest will then be charged upon the entire opening balance of that next charge period.
244. Merrill Lynch has the right to make a margin or maintenance call and require additional collateral:
- in accordance with our general policies on maintenance requirements for margin lending, which may be modified, amended or supplemented from time to time;
- if in our discretion we consider it necessary for our protection at an earlier or later time than called for in the general policies;
- in the event that a petition in bankruptcy or for appointment of a receiver is filed by or against you;
- if an attachment is levied against your accounts; or
- in the event of your death.
- Sell any or all securities and other property in your accounts with us or any of our affiliates, whether carried individually or jointly with others;
- Buy any or all securities and other property which may be short in such accounts; and
- Cancel any open orders and close any or all outstanding contracts.
247. Any such sales or purchases may be made at our discretion on any exchange or other market where such business is usually transacted, or at public auction or private sale; and we may be the purchaser for our own account. You agree that our giving of any prior demand or call or prior notice of the time and place of such sale or purchase shall not be considered a waiver of our right to sell or buy without any such demand, call or notice as provided in this agreement.
Security interest in favor of Merrill Lynch 248. Whether you enroll in the Margin Lending Program or not, the following additional provisions will apply to your account.
249. You agree that at all times you are liable for the payment of, and agree to pay on demand, any debit balance or other obligations owing in any of your accounts at Merrill Lynch. You are liable for any deficiency remaining in such accounts in the event of the liquidation thereof, in whole or in part, by us or by you.
250. You agree that to the extent permitted by New York law, Merrill Lynch shall collect from you reasonable costs and expenses of collection of any such debit balance(s) and any unpaid deficiency in your account, including but not limited to attorneys' fees, that Merrill Lynch incurs or pays in connection with such efforts.
251. You agree that all securities and other property in any account- margin or cash-in which you have an interest, or which at any time are in your possession or under your control, other than retirement accounts, such as IRAs, shall be subject to a lien for the discharge of all your indebtedness and any other obligations that you may owe to Merrill Lynch and are held by us or our affiliates as security for payment of any indebtedness or obligations to Merrill Lynch in any of your accounts with us, including accounts in which you have an interest. Securities and other property held in retirement accounts, such as IRAs, are not subject to this lien and are not used as security for the payment of your obligations or indebtedness for other accounts, cash or margin you maintain with Merrill Lynch.
252. Merrill Lynch, subject to applicable laws, retains the right to transfer securities and other property between accounts without giving prior notice whenever, in our judgment, we consider it necessary for our protection.
253. In enforcing our lien, we shall have the discretion to determine which securities and property are to be sold and which contracts are to be closed.
254. All securities and other property will be treated as financial assets under Article 8 of the New York Commercial Codes.
Liability for costs of collection 255. To the extent permitted by the laws of the State of New York, you agree to pay Merrill Lynch the reasonable costs and expenses of collection, including attorneys' fees, for any debit balance and any unpaid deficiency that you owe.
Termination 256. Merrill Lynch, FIA or you may terminate or suspend the Merrill Edge Self-Directed CMA Account and close your account(s) at any time and for any reason. You agree that you will remain responsible for authorized charges and any debit balances that arise before or after termination. Merrill Lynch may redeem all money market fund shares and withdraw all funds from bank deposit accounts.
257. Merrill Lynch requires that you provide transfer instructions to transfer your account to another financial institution or liquidation instructions within 30 days of receiving written notification from Merrill Lynch and FIA informing you that we are terminating your account. If such instructions are not submitted by you within 30 days, cash, money market mutual funds and bank deposits will be liquidated or withdrawn, and the proceeds will be sent to you in the form of a check; equity securities eligible for Direct Registration will be issued to you in statement form; equity and fixed income securities eligible for certificate delivery will be issued to you in that form; and equity and fixed income securities ineligible for certificate delivery will be liquidated. Any non-transferable securities, including but not limited to mutual fund positions and option contracts, will be liquidated at current market prices. Sale proceeds will also be issued to you in the form of a check. Liquidation of any security will likely be a taxable event and may incur fees, including mutual fund contingent deferred sales charges, or other applicable liquidation fees. Merrill Lynch recommends that you consult a tax advisor to determine what result, if any, liquidation may have on your tax situation.
258. Upon termination, you agree to promptly return all Visa cards and unused checks to us and discontinue use of any other means of access to your account. Failure to do so may result in a delay in complying with your instructions as to the disposition of your assets.
Applicable laws and rules 259. This agreement, with respect to all portions of the Merrill Edge Self-Directed CMA Account, including interest charges on loans made to you, will be governed by and interpreted under the laws of the State of New York. The terms of the agreement with Bank of America, N.A., are governed by federal and North Carolina law. The terms of the agreements with FIA Card Services, N.A., are governed by federal and Delaware law. The terms of the agreement with UMB Bank, n.a., are governed by Missouri law. Your rights and obligations for Remittance Transfers will be governed by and interpreted as described in the section titled "Remittance Transfers."
260. All transactions in your account shall be subject to the constitution, rules, regulations, customs and usages of the exchange or market and its clearinghouse, if any, on which such transactions are executed by us or our agents, including our subsidiaries and affiliates.
261. You may not use your account or relationship to the firm to process transactions that are prohibited by law, including, but not limited to, restricted transactions prohibited by the Unlawful Internet Gambling Enforcement Act of 2006.
262. Wire transfers to your account or funded from your account or otherwise funded by you may involve one or more funds transfer systems, including without limitation, Fedwire or Clearing House Interbank Payments System (CHIPS). Accordingly, notwithstanding any choice of law that may be provided elsewhere in this agreement, such wire transfers will be governed by the rules of any funds transfer system through which the transfers are made, as amended from time to time, including without limitation, Fedwire, the National Automated Clearing House Association, any regional association (each an "ACH") and CHIPS. Funds transfers through Fedwire will be governed by and subject to, Regulation J, Subpart B, and Uniform Commercial Code Article 4A incorporated by reference hereunder. Wire transfers through CHIPS are governed by, and subject to, CHIPS Rules and Administrative Procedures and by the laws of the State of New York, including Article 4-A of the New York Uniform Commercial Code, regardless of whether the payment message is part of a wire transfer that is a Remittance Transfer, except that in the case of an inconsistency between New York law and EFTA, EFTA shall govern.
263. Notice to all non-U.S. individual clients and U.S. citizens residing abroad: Certain U.S.-situs assets held within your account with Merrill Lynch may be subject to U.S. estate taxes in the event of your death. To ensure any U.S. estate tax liabilities are satisfied, U.S. law imposes a lien on all your assets held with Merrill Lynch at your death. As a result of this lien and the potential liability of Merrill Lynch for any unsatisfied U.S. estate tax, all of the assets in your account(s) with Merrill Lynch at your death will be restricted from withdrawal or transfer until (i) Merrill Lynch concludes that an exception applies based on an affidavit confirming your total U.S. assets held at death, your country of citizenship, and your country of permanent residence; (ii) Merrill Lynch receives documentation satisfactory to Merrill Lynch confirming that your assets are subject to a probate proceeding within the U.S.; or (iii) a release from the U.S. Internal Revenue Service (IRS), known as a "Federal Transfer Certificate," is provided to Merrill Lynch (obtaining this from the IRS can take up to a year or more). As Merrill Lynch does not provide tax advice, please seek guidance on this topic from your own legal or tax advisor.
264. If any provision of this agreement is held to be invalid, illegal, void or unenforceable, by reason of any law, rule, administrative order or judicial decision, such determination will not affect the validity of the remaining provisions of this agreement.
Disputes 265. If we believe there is a dispute concerning the control or ownership of assets of the account, we may, but are not obligated to, take one or more of the following actions, without any liability, until such dispute is resolved to our satisfaction:
- Restrict activity in the account;
- Require that all instructions be in writing, signed by the account holder or, if applicable, all account holders or persons claiming ownership or authority to control the account;
- Suspend or terminate the Merrill Edge Self-Directed CMA Account; and/or
- File an interpleader action in an appropriate court at the expense of the account holder(s).
Headings 267. The heading of each provision of this agreement is for descriptive purposes only and shall not be deemed to modify or qualify any of the rights or obligations set forth in each such provision.
L-11-13
SECURITIES-BASED LOANS DISCLOSURE STATEMENT Risk factors you should consider before using margin or other loans secured by your securities accounts 1. Merrill Lynch is furnishing this Disclosure Statement to provide you with a summary of the risks involved in purchasing securities on margin or otherwise borrowing funds secured by assets in your securities account(s), known as "securities-based credit." You should understand those risks before using securities-based credit as part of your investment strategy or as a liquidity source. In addition, you should understand:
- The terms of your loan agreement;
- The interest rate you will pay;
- Initial margin and maintenance requirements and how market fluctuations may result in a "maintenance call"; and
- The lender's procedures for issuing maintenance calls and liquidating securities and other assets in your accounts.
MARGIN 3. When you purchase securities, you may pay for the securities in full or, if your account has been established as a margin account with the Margin Lending Program, you may borrow part of the purchase price from Merrill Lynch, thereby "leveraging" your investment. If you choose to borrow funds for your purchase, Merrill Lynch's collateral for the loan will be the securities purchased, other assets in your margin account and your assets in any other accounts at Merrill Lynch, other than retirement accounts (such as IRAs). If the securities in your margin account decline in value, so does the value of the collateral supporting your loan and, as a result, Merrill Lynch can take action, including issuing a margin call and/or selling securities in your account with Merrill Lynch to maintain the required equity in your account.
4. If your securities account has a Visa card and/or checks, you may also create a margin debit if your withdrawals (by Visa card, checks, pre-authorized debits, FTS or other transfers) exceed the sum of any available free credit balances plus available money account balances (such as bank deposit balances or money market funds). Please refer to your account documents for more information.
5. You should note that it may be more advantageous to pay cash than to use margin for smaller securities purchases. On smaller purchases of securities, a higher percentage of the transaction costs goes to commissions and interest charges, which are generally higher on smaller balances. The commissions plus the interest charges could equal or exceed any appreciation in your securities.
BORROWING FOR PURPOSES OTHER THAN MARGIN 6. You may also borrow against the value of securities or other assets in your securities accounts for purposes other than to purchase securities. When you do so, the assets in your account are "pledged" as collateral to secure the loan. In such cases, your loan may be made by Merrill Lynch (in a margin account) or by an affiliated lender in a separate loan account with the lender. For example, the Loan Management Account® (LMA® account) is a loan made by our affiliate, Bank of America, N.A., that is secured by a pledge of assets in your Merrill Lynch securities account.
7. The assets eligible for collateral for these types of loans differ from the assets eligible for margin loans. For example, investment grade certificates of deposit (CDs) are eligible assets for non-margin loans but are not eligible for margin loans.
Interest rates 8. Interest rates vary by loan program, so be sure you understand how interest rates are determined. The interest rate charged on the loan will reduce your overall rate of return. Interest expense for taxable securities purchased on margin may be deductible up to net investment income. Merrill Lynch is not a tax advisor, and you should consult your tax advisor regarding your particular situation.
9. Interest rates are usually based on an index plus or minus a percentage. The index may be an internal one, such as our base lending rate (BLR) for margin, or an external one, such as the one-month London Interbank Offered Rate (LIBOR). In either case, your interest rate can change without notice to you if the index changes. A fixed rate of interest may be available with certain loan programs.
10. Your interest rate may be based on your outstanding loan balance (as in our Margin Lending Program) or on the total credit available (as in the Loan Management Account). As a result, your interest rate can change without notice to you in accord with changes to your loan balance or available credit.
11. Interest charges not paid at the close of the applicable interest period are typically added to your loan balance. You can elect to pay the interest charges plus any principal balance. Your interest charges will be shown on your account statements.
Maintenance requirements 12. Your pledged assets must meet specified maintenance requirements. In other words, the assets must at all times maintain a certain minimum value. If the assets in your account decline in value and fall below these maintenance requirements, the lender may require you to deposit additional collateral-known as a "margin call" or "maintenance call" -or take other action as permitted by the loan agreement. The lender is also permitted, for example, to sell assets in any of your pledged Merrill Lynch accounts to meet maintenance requirements.
13. The forced sale of your assets may negatively affect your ability to follow your investment strategy or achieve your investment objectives. Some or all of the assets may be sold at prices higher than what it initially cost you to acquire them. If that happens, you may suffer adverse tax consequences.
14. You can reduce the possibility of maintenance calls by carefully considering the volatility of the securities you pledge as collateral and the amount that you borrow. Risk-management strategies you should consider include:
- Borrowing less than the maximum allowable amount.
- Borrowing against a portfolio of less-volatile securities such as government Treasuries, high-grade corporate bonds and blue-chip stocks.
- Pledging a diversified portfolio as collateral.
- Watching your portfolio carefully, especially when market conditions are fluctuating. By doing so, you will be aware of a potential decline in value before a maintenance call becomes necessary.
- You can lose more funds than you deposit in your margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to us to avoid the forced sale of those securities or other assets in your account(s).
- We can force the sale of securities or other property in your account(s). If the equity in your account falls below the maintenance margin requirements or our higher "house" requirements, we can sell the assets in your accounts pledged by you to Merrill Lynch to cover the margin deficiency. For margin loans, we can sell the assets in any of your accounts held by Merrill Lynch. For other securities- based loans, you should check your loan agreement. You also will be responsible for any remaining loan balance in the account after such a sale.
- We can sell your securities or other property without contacting you. Investors sometimes mistakenly believe that they must be contacted for a maintenance call to be valid, and that securities or other property in their accounts cannot be liquidated to meet the call unless they are contacted first. This is not the case. We will attempt to notify you of maintenance calls, but we are not required to do so. Even if we have contacted you and provided a specific date by which you can meet a maintenance call, we can still take necessary steps to protect our interests, including immediately selling the securities or other property without notice to you.
- You are not entitled to choose which securities or other property in your account(s) are liquidated or sold to meet a maintenance call. Because the securities and other assets in your account(s) are collateral for the loan, we have the right to decide which assets to sell in order to protect our interests.
- We can increase our "house" maintenance requirements at any time and are not required to provide you advance written notice. These changes in our policy may take effect immediately and may result in the issuance of a maintenance call. Your failure to satisfy the call may cause us to liquidate or sell assets in your account(s).
- You are not entitled to an extension of time on a maintenance call. While an extension of time to meet maintenance requirements may be available to you under certain conditions, you do not have a right to the extension.
L-09-12
ABOUT THE MERRILL LYNCH DIRECT DEPOSIT PROGRAM 1 This section describes the manner in which free credit balances of customers ("you," "your" and "yours") of the Merrill Edge Self-Directed CMA Account will be deposited in bank deposit accounts established in the name of Merrill Lynch as your agent at FIA Card Services, N.A. (FIA), by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch). This feature is called the Merrill Lynch Direct Deposit Program (MLDD Program).
2 If you subscribe to the MLDD Program for your Merrill Edge Self- Directed CMA Account, Merrill Lynch, as your agent, will establish two bank deposit accounts on your behalf at FIA: (1) a bank transaction account (BTA); and (2) a money market deposit account (MMDA). The BTAs and MMDAs established through the MLDD Program are each a "Deposit Account."
ELIGIBILITY 3 The MLDD Program is available only to individuals and certain fiduciaries and trusts, provided the beneficiaries are individuals or otherwise eligible.
HOW THE PROGRAM WORKS 4 The timing of the deposit of available free credit balances will be as set forth in the Merrill Edge Self-Directed CMA Account Agreement.
5 ] For Merrill Edge Self-Directed CMA Accounts, regardless of the number of owners (e.g., joint, single), free credit balances are remitted automatically for deposit by Merrill Lynch, acting as your agent, to your Deposit Accounts established by Merrill Lynch at FIA. Merrill Lynch will make this deposit on your behalf without reference to the amount deposited with FIA, or any other amounts you may have on deposit with FIA.
6 All deposits made to the Deposit Accounts will be made to your MMDA accounts, except as described under "Transfers and withdrawals," page 18.
7 All deposits made to the Deposit Accounts will be made to your MMDAs, except as described under "Transfers and withdrawals," page 18.
Important deposit insurance considerations 8 All funds on deposit in each Merrill Lynch Affiliated Bank are eligible for insurance by the FDIC. Deposits are insured up to the SMDIA, per ownership category, per bank, as defined in paragraph 35. For purposes of determining deposit insurance coverage, all accounts or deposits (including CDs you hold either directly or through any other account at Merrill Lynch or any other intermediary) in the same Merrill Lynch Affiliated Bank will be aggregated. Amounts on deposit at FIA in the same insurable capacity in excess of the applicable FDIC insurance limit will not be covered by FDIC insurance. You are responsible for monitoring the total amount of all Merrill Lynch Affiliated Bank deposits in order for you to determine the extent of insurance coverage available to you on those deposits, including the Deposit Accounts and CDs.
9 If you have elected the MLDD Program sweep feature in connection with more than one Merrill Lynch account, you should note that remittances of funds from the Merrill Edge Self-Directed CMA Account securities accounts to the Deposit Accounts are made by Merrill Lynch, as your agent, on an automated and independent basis. Merrill Lynch will not monitor and adjust deposits to the Deposit Accounts to achieve the greatest deposit insurance coverage for you between or among your Merrill Lynch accounts. Persons with more than one Merrill Lynch account with the MLDD Program should consider various alternatives to lessen the amount of their uninsured Deposit Accounts. These alternatives may include selecting a different money account into which available cash balances in their second (or additional) Merrill Lynch accounts are swept, and carefully monitoring and periodically adjusting the amount of their deposits with FIA (whether in the Deposit Accounts, CDs or other deposits).
10 Merrill Lynch is not responsible for any insured or uninsured portion of the deposits made under the MLDD Program, or any CDs or any other deposits you may have.
11 For more information on FDIC deposit insurance, see "About Deposit Insurance," page 19.
Transfers and withdrawals 12 Withdrawals will be made from your BTAs by Merrill Lynch as your agent as necessary to satisfy debits (securities purchases, checks, Visa and other charges) in your Merrill Edge Self-Directed CMA Account. If you have Deposit Accounts with FIA, then withdrawals will be made from your Deposit Accounts at FIA.
13 If funds in a BTA are insufficient to satisfy a debit, funds in the MMDA at FIA will be transferred to the BTA at FIA to satisfy the pending withdrawal, plus a "cushion" to be determined from time to time by Merrill Lynch. Federal banking regulations generally limit the transfers from an MMDA to a total of six during a monthly statement cycle, and certain aggregation rules may apply to transfers from the MMDAs at FIA. At any point during a month in which transfers from the MMDAs at FIA have reached the applicable limit, funds will be transferred from all MMDAs you have at FIA to the related BTAs. For the remainder of the month, free credit balances in your Merrill Edge Self-Directed CMA Account will be deposited in your BTAs instead of the MMDAs as described above. At the beginning of each month, all funds in the BTAs (less $1) will be transferred to the MMDAs. The limits on MMDA transfers will not limit the number of withdrawals you can make from funds on deposit at FIA through the MLDD Program.
14 As required by federal regulations, FIA reserves the right to require seven days' prior notice before permitting a transfer out of the BTAs and MMDAs. FIA has not exercised this right in the past.
15 The BTAs and MMDAs are not transferable.
Interest rates and yields 16 Interest rates paid on deposits in the MLDD Program are determined at the discretion of FIA based on economic and business conditions. Interest rates may change daily. The current yield on any deposits held in the MLDD Program is included on your Merrill Lynch account statement. Recent yields may be accessed on merrilledge.com (see the "Deposit Account & Money Fund Rates" link at the bottom of each page) or by contacting a Merrill Edge Representative at 1.877.653.4732.
17 Balances in the BTAs and MMDAs at FIA will earn the same interest rate and rate of return.
18 The rates of return paid with respect to the accounts may be higher or lower than the rates of return available to direct depositors of FIA for comparable accounts. Of course, you should compare the terms, rates of return, required minimum amounts, charges and other features of the deposits at FIA with other accounts, sweep programs and alternative investments offered by Merrill Lynch or other institutions.
19 Interest will accrue on Deposit Account balances from the day they are deposited to FIA to (but not including) the date of withdrawal, and will be compounded daily and credited monthly. FIA uses the daily balance method to calculate interest on the accounts. This method applies the applicable rate to the principal in the accounts each day.
Account statements and information 20 All deposits to and withdrawals from your Deposit Accounts will be confirmed and appear in chronological sequence on separate monthly Merrill Edge Self-Directed CMA Account statements. In addition, the statements will show the total of your opening and closing deposit balances for the period at FIA. To determine your total deposits in FIA through the MLDD Program, you will need to add the balances shown on each statement. The statements will also include interest earned for the period at FIA.
21 You may obtain information about your accounts with FIA including balances and checking activity, by accessing your account via merrilledge.com.
Your relationship with Merrill Lynch 22 Merrill Lynch is acting as agent and messenger for its customers for the deposits at FIA. The separate accounts established by Merrill Lynch on your behalf will be evidenced by a book entry on the account records of FIA and reflected on your periodic Merrill Lynch account statements. No evidence of ownership, such as a passbook or certificate, will be issued to you.
23 Checks clear through the check writing facility provided for your Merrill Edge Self-Directed CMA Account, which results in debits directly against your Merrill Edge Self-Directed CMA Account at Merrill Lynch. As a central asset account, the Merrill Edge Self-Directed CMA Account is an investment and money management vehicle. The Visa card and checking features are intended to provide you with easy access to assets in your account. The Merrill Edge Self-Directed CMA Account is not a bank account. Checks are provided to you by Merrill Lynch and not by FIA. In addition, all transactions are effected through Merrill Lynch, as agent, and not directly between you and FIA.
24 Deposits with FIA are obligations of FIA only and are not guaranteed by or obligations of Bank of America Corporation or any other subsidiary thereof. Upon request, you will be provided with the publicly available summary financial information that Merrill Lynch has relating to the FIA. Merrill Lynch is not a bank. Securities made available through Merrill Lynch are not guaranteed by any bank, are not insured by the FDIC and may lose value.
25 Merrill Lynch may, in its sole discretion and without notice, terminate your use of the Merrill Edge Self-Directed CMA Account. FIA may also terminate, in its sole discretion and without notice, your Deposit Accounts. If Merrill Lynch does not wish to continue to act as your agent with respect to your Deposit Accounts, you may deal directly with FIA, subject to its rules with respect to maintaining direct bank accounts. Similarly, if you decide that you no longer wish to have Merrill Lynch act as your agent and messenger with respect to the Deposit Accounts established for you at FIA, you may establish a direct relationship with FIA, subject to its rules with respect to maintaining such accounts, by requesting to have the accounts established in your name. This will result in severance of the Deposit Accounts from your Merrill Edge Self-Directed CMA Account.
26 As stated in the Merrill Edge Self-Directed CMA Account Disclosures and Account Agreement, Merrill Lynch may delay payment from your account for a certain number of days based upon factors including whether the source of the funds placed in your Merrill Edge Self- Directed CMA Account was an electronic funds transfer, check, draft or similar instrument.
Benefits to Merrill Lynch 27 Deposits held in FIA are financially beneficial to Merrill Lynch and its affiliates. FIA uses bank deposits to fund current and new lending, investment and other business activities. Like other depository institutions, the profitability of FIA is determined in large part by the difference between the interest paid and other costs incurred by FIA on bank deposits, and the interest or other income earned on their loans, investments and other assets. The deposits provide a stable source of funding for FIA and borrowing costs incurred to fund the business activities of FIA have been reduced by the use of deposits from Merrill Lynch clients.
28 Merrill Lynch receives compensation from FIA of up to $65 per year for each Merrill Edge Self-Directed CMA Account that has uninvested cash balances automatically swept to FIA under the MLDD Program. The amount of this compensation is subject to change from time to time, and Merrill Lynch may waive all or part of it. Other than the regular annual Merrill Lynch account fees, there will be no charge, fee or commission imposed with respect to your deposits with FIA.
ABOUT DEPOSIT INSURANCE FDIC insurance 29 FDIC insurance covers all deposit accounts at an FDIC insured bank, which includes MLDD Program deposits. Deposits maintained in different categories of legal ownership-such as individual accounts, joint accounts or certain retirement accounts-are separately insured by the FDIC, up to the applicable SMDIA per depository institution. The SMDIA is $250,000 per depositor, per ownership category, per bank.
30 Your FDIC protection takes effect as soon as FIA receives your deposits from Merrill Lynch. Amounts in excess of the applicable FDIC insurance limit may be deposited to the Merrill Lynch Affiliated Banks from the same Merrill Lynch account. It is important to note that uninvested cash held in more than one Merrill Lynch account may be deposited to the same Merrill Lynch Affiliated Banks. Any accounts or deposits (e.g., CDs) maintained with a Merrill Lynch Affiliated Bank in the same legal ownership category, whether directly, through other Merrill Lynch accounts or through any other intermediary, would be aggregated for FDIC insurance limit purposes.
31 You are responsible for monitoring the total amount of your deposits in order for you to determine the extent of insurance coverage available to you on your deposits, including any CDs. Merrill Lynch is not responsible for any insured or uninsured portion of MlDD program deposits, CDs or any other deposits.
32 Merrill Lynch will not be obligated to you for amounts not covered by deposit insurance, nor will Merrill Lynch be obligated to make any payments to you in satisfaction of a loss you might incur as a result of a delay in insurance payouts applicable to your Deposit Accounts. Merrill Lynch will not be obligated to credit your Merrill Edge Self- Directed CMA Account with funds in advance of their payment to Merrill Lynch by the FDIC. Each Deposit Account constitutes a direct obligation of the issuing depository institution and is not directly or indirectly an obligation of Merrill Lynch.
33 Since deposit insurance coverage is based on a customer's funds on deposit in any one depository institution, coverage can change if two or more institutions where you have funds on deposit merge or consolidate. Please note that if your deposits at a depository institution are assumed by another depository institution ("acquirer") pursuant to a merger or consolidation, such deposits will continue to be separately insured from the deposits that you might have established with the acquirer until the expiration of a six-month period from the date of the acquisition. Thereafter, any assumed deposits will be aggregated with your existing deposits with the acquirer held in the same ownership category for purposes of federal deposit insurance. Any deposit opened at the acquired institution after the acquisition will be aggregated with deposits established with the acquirer for purposes of federal deposit insurance.
34 The application of the SMDIA is illustrated by several common situations discussed below. For additional information, including FDIC rules related to retirement accounts, visit www.fdic.gov.
Individual customer accounts 35 An individual account is an account owned by one person. Individual accounts include accounts established for the benefit of the owner by agents, nominees, guardians, custodians or conservators, and accounts established by a business that is a sole proprietorship. All individual accounts established by, or for the benefit of, the same owner at an FDIC insured institution are added together and the total is insured up to $250,000.
36 For example, funds in accounts held by a custodian under the Uniform Gifts to Minors Act are not treated as owned by the custodian, but are added to other deposits of the minor held in an individual capacity and insured up to $250,000.
Joint accounts 37 A joint account is an account owned by two or more people. Each co-owner's interest in joint accounts at an FDIC-insured institution is insured up to $250,000. For example, a joint account owned by two persons would be eligible for insurance coverage of up to $500,000 ($250,000 for each person), subject to aggregation with each co- owner's interests in other joint accounts at the same depository institution. Joint accounts are separately insured from the co-owner's deposits maintained in other ownership categories at the depository institution (e.g., individual accounts) if each co-owner (1) is an individual person; and (2) has signed an account agreement with Merrill Lynch and has an equal right of withdrawal from the account.
Revocable trust accounts 38 A revocable trust is an account that indicates an intention that funds will belong to named beneficiaries upon the owner's death and that it can be revoked or terminated at the discretion of the owner (frequently referred to as a "transfer on death" account). The FDIC's insurance regulations distinguish between two types of revocable trusts-formal trusts and informal trusts.
39 A formal revocable trust is established through a written trust document or agreement. The beneficiaries must be a natural living person and/or a charity/non-profit organization recognized by the IRS. Because Merrill Lynch account records do not specifically name the beneficiaries of a formal revocable trust, it is necessary for the account title to indicate that the account is held by a formal revocable trust in order for each named beneficiary to qualify for FDIC insurance.
40 An informal revocable trust is created if all of the following conditions are met: (1) the account title must include commonly accepted terms such as "transfer on death," "in trust for" or similar language to indicate the existence of a trust relationship (the terms may be abbreviated); (2) the beneficiaries must be identified by name in the deposit account records for the bank; (3) the beneficiaries must be a natural living person and/or a charity/non-profit organization recognized by the IRS.
41 FDIC coverage is determined by the number of beneficiaries named by an owner and the amount of the deposit. For revocable trust accounts where the owner has a balance of $1,250,000 or less at an FDIC-insured institution and has named five or fewer beneficiaries, rather than evaluate the proportional interest of each beneficiary, the maximum coverage is determined by multiplying the number of beneficiaries by $250,000. For revocable trust accounts where the owner has more than $1,250,000 and has named six or more unique beneficiaries, each with an equal interest in the trust, the calculation is the same as for revocable trusts that name five or fewer beneficiaries. The maximum insurance coverage is up to $1,500,000. For revocable trust accounts where the owner has more than $1,250,000 at an FDIC-insured institution and has named more than five beneficiaries in the revocable trust with unequal interests, the maximum coverage is the greater of (i) $1,250,000 or (ii) the aggregate amount of all the beneficiaries' proportional interests in the revocable trusts, limited to $250,000 per beneficiary.
42 Properly established revocable trust account deposits, whether formal or informal, are separately insured from the owner's deposits maintained in other ownership categories at the depository institution. However, a revocable trust account established by a husband and wife that names the husband and wife as sole beneficiaries will be treated as a joint account and will be aggregated with other joint accounts subject to the rules described above under "Joint Accounts." A living trust is a formal revocable trust over which the owner retains ownership and control of the assets and designation of beneficiaries during his or her lifetime. Living trusts are subject to special rules, which you should review carefully in order to determine the available FDIC deposit insurance coverage.
Irrevocable trust accounts 43 An irrevocable trust is an account in which the grantor gives up all power to the trust. The irrevocable trust may be created through an irrevocable trust document or agreement, statute or court order, or could spring from a revocable trust. The deposit account records of the depository institution must disclose the existence of the trust relationship. The interests of the beneficiaries must be non-contingent (i.e., capable of determination without evaluation of contingencies) and ascertainable from the deposit account records of the depository institution or from the records of the trustee maintained in good faith and in the regular course of business. The value of each beneficiary's interest must be capable of determination in accordance with FDIC regulations. The trust must be valid under state law. Irrevocable trust accounts are separately insured from the owner's deposits maintained in other ownership categories at the depository institution (e.g., revocable trust accounts). The interests of a beneficiary in all deposit accounts under an irrevocable trust established by the same grantor, at the same FDIC- insured institution, are added together and insured up to $250,000. If the owner retains an interest in the trust, that interest is added to the owner's single accounts, if any, and that total is insured up to $250,000.
Treatment of accounts upon death of owner 44 Under certain circumstances, if you become the owner of deposits at a depository institution because another depositor dies, beginning six months after the death of the depositor, the FDIC will aggregate those deposits for purposes of the SMDIA with any other deposits that you own in the same ownership category at the depository institution. Accounts that may be subject to this FDIC policy include joint accounts, "payable on death" accounts and certain trust accounts. For example, in the event of the death of one of two co-owners of a joint account, beginning six months after the death of the depositor, all the funds would be treated as individually held by the surviving co-owner and would, therefore, be aggregated with all other individually owned deposits of such survivor at the same depository institution for insurance purposes, unless some other action is taken. The FDIC provides the six month "grace period" to permit you to restructure your deposits to obtain the maximum amount of deposit insurance for which you are eligible.
Payments under adverse circumstances 45 In the event that federal deposit insurance payments become necessary, the FDIC is required to pay principal plus unpaid and accrued interest to the date of the closing of the relevant depository institution as prescribed by law and applicable regulations. Since there is no specific time period Merrill Lynch Bank Deposit Program during which the FDIC must make available such insurance payments, you should be prepared for the possibility of an indeterminate delay in obtaining insurance payments. In addition, you may be required to provide certain documentation to the FDIC and to Merrill Lynch before any insurance payments are released to you. For example, if a deposit account is held by you as trustee for the benefit of trust participants, you may be required to furnish an affidavit to that effect; you may be required to furnish other affidavits and indemnities regarding the insurance payments.
Additional information from the FDIC 46 If you have questions about FDIC insurance coverage, you may obtain information by contacting the FDIC (1) by letter at FDIC, Attn: Deposit Insurance Outreach, 550 17th Street, N.W., Washington, D.C. 20429; (2) by phone at 877.ASK.FDIC (877.275.3342) or 800.925.4618 (hearing impaired); or (3) by visiting the FDIC website at www.fdic.gov.
L-01-13
Merrill Edge is available through Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S), and consists of the Merrill Edge Advisory Center� (investment guidance) and self-directed online investing.
MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation.
Banking Products are provided by Bank of America, N.A. and affiliated banks, members FDIC and wholly owned subsidiaries of Bank of America Corporation.
Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
© 2013 Bank of America Corporation. All rights reserved. BRO-04-13-2304 11/2013 470819PM-1113
By signing below, you represent and agree that:
- You are the person(s) named in the "Personal Information" section(s) of this application, you acknowledge that you are of legal age under the laws of your place of residence, and have reviewed all information contained in this application whether prefilled systematically, by a representative, or entered by you and you confirm that all the information is accurate;
- You agree to receive electronic delivery of all documents related to your accounts (in accordance with Section 3 of the Merrill Edge Self-Directed Investing Terms of Service);
- You have received, reviewed and agreed to the terms of the:
- Bank of America Privacy Policy for U.S. Consumers
- Federally Required Affiliate Marketing Notice
- Merrill Lynch Agreements & Disclosures
- Any computers you are using for this application and will use to review subsequent electronic communications meet the System Requirements, as described in Section 3 of the Merrill Edge Self-Directed Investing Terms of Service;
- You authorize us to obtain a credit report or account information from credit or information services agencies to help verify the information you provide in this application for consideration of other accounts and services and for any other lawful purpose;
- Merrill Lynch has a lien on your accounts and assets in those accounts for any payment obligations you have to Merrill Lynch, in accordance with the Merrill Lynch Agreements and Disclosures, including Section 3 of the Merrill Edge Client Relationship Agreement.;
- New York law governs your agreements and transactions unless we indicate otherwise;
- The Primary Account holder has completed the Taxpayer Certification;
- Unless you have declined margin lending in the account features section above or your account is not eligible, margin loans may be extended to you from time to time, and certain of your securities may be loaned to Merrill Lynch or loaned out to others, pursuant to section 2 of the client relationship agreement and the applicable paragraph of the securities account agreement.
- If you are a trustee or other fiduciary, the trust or estate is eligible for the Merrill Lynch bank deposit program (if applicable).
- You acknowledge and understand that non-deposit investment products are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer and wholly owned subsidiary of Bank of America Corporation, and that investment products offered through MLPF&S and insurance and annuity products offered through its subsidiary, Merrill Lynch Life Agency Inc. (i) are not insured by the FDIC or any federal government agency, (ii) are not a deposit or other obligation of, or guaranteed by, issued or underwritten by Bank of America, N.A. or any of its bank affiliates, (iii) are subject to investment risks, including possible loss of the principal amount invested, and (iv) are not a condition to any banking service or activity; and
- You agree to arbitrate all controversies that may arise between you and us, in accordance with the Merrill Lynch Agreements and Disclosures, including Section 7 of the Merrill Edge Self-Directed Investing Client Relationship Agreement.
Comments
Post a Comment