Additional Asset-based Fee Deduction Terms Sample Clauses

Additional Asset-based Fee Deduction Terms. You must maintain enough assets in your Sweep Program such that the cash value of your Sweep Program is equal to your annual Asset-based Fee to ensure you have sufficient assets to cover future Asset-based Fee payments. If the value of your Sweep Program is not sufficient to pay your Asset- based Fee and you do not have margin capability, you authorize Sponsor, and Sponsor reserves the right, to sell shares of mutual fund or other securities holdings within your SPS Advantage Account(s) and to transfer the proceeds into the Sweep Program to meet this requirement. Because of mutual fund redemption minimums and other applicable minimums, Sponsor may be required to sell more shares than is necessary to cover the deficiency. Sponsor reserves the right to determine which mutual fund shares or other securities it will sell. If you have margin capability, rather than selling securities to cover your Asset-based Fee, your margin balance will increase. If you acquire securities positions on margin, the cash value that you will need to maintain in the Sweep Program will be higher than would be in the case in the absence of margin since Sponsor includes margin Account balances in the calculation of your Asset-based Fee.