Client
Information
Statement
of Interest Charges
and Margin Account Policy
To assist you in managing your borrowing needs and to familiarize
you with the terms under which credit is extended on your account,
we have developed this statement of Interest Charges. Please review
the margin requirements and the explanation of applicable interest
rate charges prior to establishing a margin position.
Accounts on Which Interest is Charged
Payments for purchases in cash accounts should be received on or
before the settlement date shown on the trade confirm. If your payment
is received after the due date, a late payment charge may be posed
to your cash account. Disbursement
for a sale in a cash account is not required to be made prior to
the settlement date displayed on the confirmation of the transaction.
Occasionally, we may honor your request to receive payment of the
sale proceeds prior to the due date. If this privilege is utilized,
an interest charge will be posted to your account.
Interest
may be charged on margin credit extended for the purpose of purchasing,
carrying, or trading in securities. Interest charged is calculated
on a settlement date basis and the detail supporting the calculation
will be displayed on your monthly statement.
Calculation of Interest
Your annual rate of interest will vary depending on the size of
your daily adjusted debit balance. The adjusted debit balance is
the total of the settled balances in all margin accounts reduced
by any available free credit balances in your cash account.
Short
positions are "marked-to-market" daily. Since the security sold
short must be borrowed in order to deliver it to the buying broker,
the credit that results from the sale is not available to you. Thereafter,
the market value of the short sale is debited against your margin
balance to arrive at an adjusted debit balance for interest purposes.
The daily closing price is used to determine any appreciation or
depreciation of a security sold short which will then adjust your
daily net balance.
The
annual rate of interest applicable to your account will be computed
at a selected rate above the broker's call money rate. The broker's
call money rate is the rate banks charge securities brokers. This
cost of money fluctuates and will result in an automatic change
in your interest rate without prior notice to you. The
table of rates is as follows:
| Adjusted
Debit Balance ($) |
Rate
of Interest |
| 0-24,999 |
Broker
Call + 3.25 |
| 25,000
- 49,999 |
Broker
Call + 2.75 |
| 50,000
- 99,999 |
Broker
Call + 2.25 |
| 100,000
- 249,999 |
Broker
Call + 2.00 |
| 250,000
- 499,999 |
Broker
Call + 1.75 |
| 500,000
- 749,999 |
Broker
Call + 1.50 |
| 750,000
- 999,999 |
Broker
Call + 1.25 |
| 1,000,000
+ |
Broker
Call + 1.00 |
Interest is computed daily on the basis of a 360 day year using
the following formula:
Lien and Collateral
BNY Clearing Services, our clearing agent, has a general lien on
all securities that they have, hold or carry for you (either individually
or jointly with others) or that may be deposited with them for any
purpose at any time.
BNY Clearing Services may require you to deposit additional collateral
in the form of cash or securities in accordance with the rules and
regulations of the Federal Reserve Board, the New York Stock Exchange,
Inc., the American Stock Exchange, Inc., other national securities
exchanges, associations or regulatory agencies under whose jurisdiction
we are subject and BNY Clearing Services' own minimum house margin
maintenance requirements for securities approved by them for use
as collateral on credit extended in a margin account.
If such additional collateral is requested by them and is not deposited
by you into your account(s), securities in your account(s) may be
sold to reduce or satisfy debit balance. BNY Clearing Services retains
the right to require you to deposit additional collateral as they,
at their sole discretion, may determine is needed as security for
your obligations to them. We believe the basis of effective service
lies in maintaining good communications. Therefore, if you have
any questions concerning your account, margin requirements, interest
or policies, please do not hesitate to call your Investment Consultant.
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