©2022 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.
(0322-126K) APP36766-19 (01/22)
Page 2 of 3
Schwab One
®
Custodial Beneficiary Conversion Account Application Agreement - Client Copy
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 deficiency or other obligation.
You agree to pay on demand any account
deficiencies after liquidation, 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 specific
demand or notice shall invalidate this waiver.
Section 9: Interest on Debit Balances.
We will charge and compound interest on your
debit balances (whether in a Margin or Cash
Account) according to our Disclosure of Credit
Terms and Policies.
Section 10: Borrowing Money and Margin
Trading.
All margin transactions are subject to our
Disclosure of Credit Terms and Policies and our
Margin Disclosure Statement. You agree not to
enter an order for a margin transaction until you
have read and understood the Disclosure of
Credit Terms and Policies and the Margin
Disclosure Statement.
Section 11: Loan Consent.
You agree that property held in your Margin
Account, now or in the future, may be borrowed
(either separately or together with the property
of others) by us (acting as principal) or by others.
You agree that Schwab can receive and retain
certain benefits (including, but not limited to,
interest on collateral posted for such loans) to
which you will not be entitled. You acknowledge
that, in certain circumstances, such borrowings
could limit your ability to exercise voting rights or
receive dividends, in whole or in part, with
respect to the property lent. You understand that
for property that is lent by Schwab, the
dividends paid on such property will go to the
borrower. No compensation or other
reimbursements will be due to you in connection
with such borrowings. However, if you are
allocated a substitute payment in lieu of
dividends, you understand that such a payment
may not be entitled to the same tax treatment as
may have been applied to the receipt of a
dividend. You agree that Schwab is not required
to compensate you for any differential tax
treatment between dividends and payments in
lieu of dividends. Schwab may allocate
payments in lieu of dividends by any mechanism
permitted by law, including by using a lottery
allocation system.
Section 12: Using the Check and Visa
®
Debit
Card Features.
If you have requested check or Visa Debit Card
features through your Account, you authorize
checks and Visa Debit Cards to be issued as
indicated in your Account Application. You agree
that each Account Holder is authorized to write
checks and engage in Visa Debit Card
transactions, and you understand that if the
checking feature is terminated, your Visa Debit
Card will be automatically cancelled.
Section 13: Verification.
You authorize Schwab to inquire from any
source, including a consumer reporting agency,
as to your identity (as required by federal law),
creditworthiness and ongoing eligibility for the
Account of the Account Holders, any other
person referred to on this Application, or any
person whom Schwab is later notified is
associated with or has an interest in the Account
(as well as such persons' spouses if they live in a
community-property jurisdiction) at account
opening, at any time throughout the life of the
Account, and thereafter for debt collection or
investigative purposes.
Section 14: 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
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 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
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:
1. the class certification is denied;
2. the class is decertified; or
3. the customer is excluded from the class by
the court.
Such forbearance to enforce an agreement to
arbitrate shall not constitute a waiver of any
rights under this Agreement except to the
extent stated herein.
Section 15: Arbitration Agreement.
Any controversy or claim arising out of or
relating to (i) this Agreement, any other
agreement with Schwab, an instruction or
authorization provided to Schwab or the breach
of any such agreements, instructions, or
authorizations; (ii) the Account, any other
Schwab account or Services; (iii) transactions
in the Account or any other Schwab account;
(iv) or in any way arising from the relationship
with Schwab, its parent, subsidiaries, affiliates,
officers, directors, employees, agents or service
providers ("Related Third Parties"), including
any controversy over the arbitrability of a
dispute, will be settled by arbitration.
This arbitration agreement will be binding upon
and inure to the benefit of the parties hereto
and their respective representatives, attorneys-
in-fact, heirs, successors, assigns and any
other persons having or claiming to have a legal
or beneficial interest in the Account, including
court-appointed trustees and receivers. This
arbitration agreement will also inure to the
benefit of third-party service providers that
assist Schwab in providing Services ("Third-
Party Service Providers") and such Third-Party
Service Providers are deemed to be third-party
beneficiaries of this arbitration agreement. The
parties agree that this arbitration agreement
will apply even if the application to open the
Account is denied and will survive the closure
of your Account and/or the termination of
services rendered under this Agreement.
Such arbitration will be conducted by, and
according to the securities arbitration rules and
regulations then in effect of, the Financial
