Common use of Allocation of Deposits Clause in Contracts

Allocation of Deposits. (a) TDAC shall allocate TDAC Customer funds in the TDAC Master Accounts so that an amount that is less than or equal to the TDAC Customer’s FDIC insurance limit be deposited in the TDAC Master Account at TD Bank, with any overage to be allocated to the TDAC Master Account at TD Bank USA, and TDATC shall allocate TDATC Customer funds to the TDATC Master Accounts held at TD Bank USA. (b) The Depository Institutions recognize that TDA and TDATC may enter into agreements similar to this Agreement with other depository institutions for the purpose of providing FDIC insurance to Customer Accounts that exceed the Depository Institutions’ FDIC insurance limits. The Depository Institutions agree that the selection of other depository institutions to participate in the offering of Money Market Deposit Accounts to Customers shall be in the sole discretion of TDA and TDATC, subject to TD Parent’s right to object based on reasonable commercial business considerations, provided, however, that regardless of any such objection, the final decision concerning the selection of the other depository institutions remains in the sole discretion of TDA and TDATC. The effectiveness of this Agreement shall in no way be conditioned upon the participation with by other designated or undesignated depository institutions in the offering of Money Market Deposit Accounts to Customers. TDA and TDATC recognize that the Depository Institutions may offer Money Market Deposit Accounts to persons other than the Customers without restriction. (c) In the event that TDA or TDATC enter into agreements similar to this Agreement with other depository institutions, it is understood and agreed that the funds of the Customers shall be allocated to the depository institutions offering Money Market Deposit Accounts as the Customers and TDAC or TDATC as agent for the Customers shall determine appropriate. In this regard, the Depository Institutions recognize that TDA and TDATC may (i) provide the Customers with a list of depository institutions making Money Market Deposit Accounts available, (ii) pursuant to the direction of a Customer, place funds in a Money Market Deposit Account at the depository institution that the Customer has selected, and (iii) deposit in excess of FDIC insurance limits applicable to a Customer in a Money Market Deposit Account at the depository institution selected by the Customer.

Allocation of Deposits. (a) TDAC shall allocate TDAC Customer funds in the TDAC Master Accounts so that an amount that is less than or equal to the each TDAC Customer’s FDIC deposit insurance limit be is deposited in the TDAC Master Account at TD Bank, with any overage to be allocated to the TDAC Master Account at TD Bank USA, and TDATC shall allocate TDATC Customer funds to the TDATC Master Accounts held at TD Bank USA. As may be agreed by TDA and the Depository Institutions from time to time, in writing and in accordance with Section 5(i), TDAC may allocate TDAC Customer funds in such different manner as so agreed in order to reduce FDIC deposit insurance premiums. (b) The Depository Institutions recognize that TDA and TDATC the Ameritrade Companies may enter into agreements similar to this Agreement in respect of Money Market Deposit Accounts with other depository institutions for for, among other reasons as provided in Section 5(a), the purpose of providing FDIC insurance to Customer Accounts that exceed the Depository Institutions’ FDIC deposit insurance limits, including, but not limited to, pursuant to the terms of Section 18(d). The Depository Institutions agree that the selection of other depository institutions to participate in the offering of Money Market Deposit Accounts to Customers shall be in the sole discretion of TDA and TDATCthe Ameritrade Companies, subject to TD Parent’s right to object based on reasonable commercial business considerations, ; provided, however, that regardless of any such objection, the final decision concerning the selection of the other depository institutions remains in the sole discretion of TDA and TDATCthe Ameritrade Companies. The effectiveness of this Agreement shall in no way be conditioned upon the participation with by other designated or undesignated depository institutions in the offering of Money Market Deposit Accounts to Customers. TDA Ameritrade Companies recognize and TDATC recognize acknowledge that the Depository Institutions may offer Money Market Deposit Accounts to persons other than the Customers without restriction. (c) In the event that TDA or TDATC the Ameritrade Companies enter into agreements similar to this Agreement with other depository institutionsinstitutions as permitted by Section 7(b), it is understood and agreed that the funds of the Customers in excess of the applicable FDIC insurance limits at the Depository Institutions shall be allocated to the depository institutions offering Money Market Deposit Accounts as the Customers and TDAC or TDATC as agent for the Customers shall determine appropriate. In this regard, the Depository Institutions recognize that TDA and TDATC the Ameritrade Companies may (i) provide the Customers with a list of depository institutions making Money Market Deposit Accounts available, and (ii) pursuant to the direction of a Customer, place funds in a Money Market Deposit Account at the depository institution that the Customer has selected, and (iii) deposit in excess of FDIC insurance limits applicable to a Customer in a Money Market Deposit Account at the depository institution selected by the CustomerCustomer all Customer funds in excess of the FDIC deposit insurance limits available at the Depository Institutions. (d) If at any time a Depository Institution is not legally permitted to accept deposits in a Master Account (whether because it has been deemed to be “adequately capitalized,” as defined in 12 C.F.R. Section 337.6, and has not yet received a waiver from the FDIC, or is deemed to be less than “adequately capitalized,” or otherwise), TDAC and TDATC shall direct Customer deposits to the other Depository Institution (including, in the case of TDATC, to TD Bank) to the extent required to comply with applicable law and subject to applicable deposit insurance limitations. To the extent that neither Depository Institution is then able to accept such Customer deposits, or the remaining Depository Institution that is permitted to accept such deposits has reached its FDIC deposit insurance limit for applicable Customer Accounts, the Ameritrade Companies shall not direct such excess Customer deposits to any Depository Institution but may direct such excess Customer deposits to other depository institutions pursuant to Section 7(b).