©2020 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. CC3994425 (0620-0A9Z) APP63584-14 (06/20)
Section 2: Acceptance of Agreement and
Disclosures. You agree that the Agreement and
Disclosures govern all aspects of your relation-
ship with Schwab, including all transactions
between Schwab and you and all products and
services now or in the future offered through
Schwab. Schwab may rely on your use of
Schwab’s products and services as evidence of
your continued acceptance of the Agreement
and Disclosures.
Section 3: Your Representations and Warran-
ties. You represent and warrant that: (a)you are
of legal age in the state in which you live and you
are authorized to enter into this Agreement;
(b)you have supplied accurate information in
your Account Application; (c)no one except the
Account Holders listed on the Account Applica-
tion (and if community property is held, the
Account Holders’ spouses) has an interest in the
Account; (d)no additional authorizations from
third parties are required for you to open the
Account and effect transactions therein;
(e)except as you have otherwise indicated on
your Account Application or in writing to us,
(i)you are not an employee of or afliated with
any securities exchange or member rm of any
exchange, the Financial Industry Regulatory
Authority (FINRA), or any securities rm, bank,
trust company, or insurance company; and
(ii)you are not a director, 10% benecial
shareholder, policy-making ofcer, or otherwise
an “afliate” (as dened in Rule 144 under the
Securities Act of 1933) of a publicly traded
company; and (f)this Application Agreement, as
amended from time to time, is a legal, valid and
binding obligation, enforceable against you in
accordance with its terms.
Section 4: Account Handling. Schwab will
automatically hold all of your securities
purchased, sales proceeds, dividends and
interest. Schwab will also release your name,
address and securities positions to companies
in which we hold securities for your Account
upon request, unless you notify us otherwise in
writing. If you maintain more than one account
at Schwab, you authorize Schwab to transfer
assets between your accounts when no written
authorization is requested.
Section 5: Responsibility for Investment
Decisions. You agree that you and any agent
under a power of attorney or Investment Advisor
(if you have one) are solely responsible for
investment decisions in your Account, including
whether to buy or sell or hold a particular secu-
rity. Unless required by law, or unless Schwab
provides advice to you that is clearly identied
as an individualized recommendation for you,
you understand that Schwab has no obligation
to determine whether a particular transaction,
strategy, or purchase or sale of a security is in
your best interest. Your obligation includes an
afrmative duty to monitor and stay informed
about your Account and your investments and
respond to changes as you deem appropriate.
Unless we otherwise agree with you in writing,
Schwab does not monitor your account(s) or
investments and has no obligation to update an
investment recommendation, nancial advice, or
nancial plan we may give you. Such recommen-
dation, nancial advice, or nancial plan only
applies at the point in time we provide it to you.
You acknowledge that Schwab does not provide
tax or legal advice.
Section 6: Payment of Indebtedness. You agree
to make payment of any indebtedness related to
your Account, including, but not limited to, any
such indebtedness that results from instructions
provided to Schwab by you, your agent or any
attorney-in-fact under a power of attorney or
Investment Advisor authorized to make transac-
tions in your Account. We may elect anytime, with
or without notice, to make any debit balance or
other obligation related to your Account immedi-
ately due and payable. We may report any
past-due account to a consumer and/or
securities credit reporting agency. We may also
refer your Account to a collection agency.
Section 7: Security for Indebtedness. Note:
This section does not apply to any tax-qualied
accounts subject to the prohibited transaction
rules of the Internal Revenue Code or ERISA, or
any indebtedness arising therefrom.
As security for the repayment of all present or
future indebtedness owed to us by any Account
Holder under the Schwab One Account Agree-
ment or otherwise, each Account Holder grants
to us a continuing security interest in and lien
on, and a right of setoff with respect to, all
Securities and Other Property that are, now or in
the future, held, carried or maintained for any
purpose in or through the Schwab One Account,
and, to the extent of such Account Holder’s
interest in or through, any present or future
account with us in which the Account Holder has
an interest.
If you owe money to Schwab as the result of
activity in your Account and there are assets
available in any account that you hold at Schwab
which could fully or partially satisfy the debt, you
agree that upon Schwab’s written demand, you
will execute all documents necessary to effect a
distribution from your account and agree to pay
or cause such funds to be paid immediately to
Schwab in order to satisfy your indebtedness
to Schwab.
Section 8: Liquidations. Whenever it is neces-
sary for our protection or to satisfy a margin
deciency, debit or other obligation owed us, we
may (but are not required to) sell, assign and
deliver all or any part of the property securing
your obligations, or close any or all transactions
in your Account. We may choose which property
to buy or sell, which transactions to close and
the sequence and timing of liquidation. We may
take such actions on whatever exchange or
market and in whatever manner (including public
auction or private sale) that we choose in the ex-
ercise of our business judgment. You agree not
to hold us liable for the choice of which property
to buy or sell or of which transactions to close
or for timing or manner of liquidation.
In certain circumstances we may, at our sole
discretion, liquidate your entire margin loan
balance to satisfy a margin call. You agree not
to hold us liable for taking such action.
We may transfer property from any non-retirement
brokerage account in which you have an interest
to any other brokerage accounts in which you
have an interest regardless of whether there
are other Account Holders on either account,
if we determine that your obligations are not
adequately secured or to satisfy a margin de-
ciency or other obligation. You agree to pay on
demand any account deciencies after liquida-
tion, whether liquidation is complete or partial.
All of the above may be done without demand
for margin or notice of purchase, sale, transfer
or cancellation to you. No demand for margin or
notice shall impose on Schwab any obligation to
make such demand or provide such notice to
you in the future. Any such notice or demand is
hereby expressly waived, and no specic
demand or notice shall invalidate this waiver.
Section 9: Interest on Debit Balances. We will
charge and compound interest on your debit
balances according to our Disclosure of Credit
Terms and Policies.
Section 10: Using the Check Feature. If you
have requested the check feature through
your Account, you authorize checks to be issued
as indicated in your Account Application. You
agree that each Account Holder is authorized to
write checks.
Section 11: Verification. You authorize Schwab to
inquire from any source, including a consumer
reporting agency, as to the identity (as required by
law), creditworthiness and ongoing eligibility for
the Account of the Account Holders, any other
person referred to on this application, or any
person who Schwab is later notied is associated
with or has an interest in the Account at account
opening, at any time throughout the life of the
Account, and thereafter for debt collection or
investigative purposes.
Section 12: Required Arbitration Disclosures.
Regulatory authorities require that any
brokerage agreement containing a predispute
arbitration agreement must disclose that this
agreement contains a predispute arbitration
clause. This Agreement contains a predispute
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 docu-
ments, 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 will typically 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.
No person shall bring a putative or certified
class action to arbitration, nor seek to enforce
any predispute arbitration agreement against
any person who has initiated in court a putative
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