Differing Risk and Account Protection. Money Market Mutual Funds in the Cash Sweep Program and the Expanded Bank Deposit Sweep (and Standard Bank Deposit Sweep) are subject to different risks and account protection: • Money Market Mutual Funds in the Cash Sweep Program invest in high quality, short- term securities and seek to maintain a stable value but are subject to market risks and potential value loss. They are not bank accounts and not subject to FDIC insurance protection. They are instead covered by SIPC, which protects against the custodial risk (and not a decline in market value) when a brokerage firm fails by replacing missing securities and cash up to a limit of $500,000, of which $250,000 may be cash. • The Standard Bank Deposit Sweep and Expanded Bank Deposit Sweep are not subject to market risk and value loss but are subject to the risk of a bank's failure. In the unlikely event a bank fails, deposits at each Program Bank are eligible for FDIC insurance protection up to a limit of $250,000 (including principal and interest) per depositor in each insurable capacity (e.g., individual or joint). This limit includes any other deposits you may have at each bank outside of these programs. You are responsible for monitoring your bank balances in these programs and the balances in any of your other bank accounts at the same bank to determine if these, in total, exceed FDIC insurance limits. Monies held in the Standard Bank Deposit Sweep and Expanded Bank Deposit Sweep are not covered by SIPC. If you do not select a Cash Sweep Vehicle, un-invested cash balances will be placed in the FDIC-Insured Bank Deposit Sweep.
Differing Risk and Account Protection. Money Market Mutual Funds in the Cash Sweep Program and the Expanded Bank Deposit Sweep (and Standard Bank Deposit Sweep) are subject to different risks and account protection: • Money Market Mutual Funds in the Cash Sweep Program invest in high quality, short- term securities and seek to maintain a stable value but are subject to market risks and potential value loss. They are not bank accounts and not subject to FDIC insurance protection. They are instead covered by SIPC, which protects against the custodial risk (and not a decline in market value) when a brokerage firm fails by replacing missing securities and cash up to a limit of $500,000, of which $250,000 may be cash. • The Standard Bank Deposit Sweep and Expanded Bank Deposit Sweep are not subject to market risk and value loss but are subject to the risk of a bank's failure. In the unlikely event a bank fails, deposits at each Program Bank are eligible for FDIC insurance protection up to a limit of $250,000 (including principal and interest) per depositor in each insurable capacity (e.g., individual or joint). This limit includes any other deposits you may have at each bank outside of these programs. You are responsible for monitoring your bank balances in these programs and the balances in any of your other bank accounts at the same bank to determine if these, in total, exceed FDIC insurance limits. Monies held in the Standard Bank Deposit Sweep and Expanded Bank Deposit Sweep are not covered by SIPC. Cash Sweep Program Disclosure Statement Introduction. Under the Cash Sweep Program (the "Cash Sweep Program"), un-invested cash balances for which no interest is otherwise earned or paid in your account are automatically swept into interest-bearing deposit accounts ("Standard Bank Deposit Sweep" and “Expanded Bank Deposit Sweep”, together the “Bank Deposit Sweep Programs”) or, if available, stable-value money market mutual funds ("Money Market Funds") or such other sweep arrangements made available to you (collectively "Cash Sweep Vehicles"), until these balances are invested by you or otherwise needed to satisfy obligations arising in connection with your account.
