Common use of Extension of Credit on Margin Clause in Contracts

Extension of Credit on Margin. Stifel may from time to time, but shall not be obligated to, loan you money for the purchase and/or sale of securities, as well as for other purposes authorized by this Agreement. You agree that all securities held, carried, or maintained by Stifel for any of the accounts you maintain at Stifel and all other property you maintain at Stifel shall be collateral for such extensions of credit to you by Stifel and represent that you have not otherwise pledged such assets as collateral to anyone other than Stifel. You understand that use of margin constitutes a loan to you and a client with a margin account is indebted to Stifel and will be charged interest. As an example, in some ways, a margin account is like a loan or a home equity line of credit. Most homeowners have a house with a market value, a portion which is debt on which he or she pays interest and a portion which is equity. A client may borrow against the equity portion of the market value. If the market value of the house declines below value upon which the home equity line of credit was based, however, the homeowner may wind up owing more money than the value of the house. Similarly, a client with a margin account has current market value, debt on which he or she pays interest, and equity. However, there is more risk to a margin account than a home equity loan. The primary risk in a margin account is that the securities securing the loan might decline in value to the point where the loan, the client’s debit balance, is no longer fully collateralized. You are legally responsible for repayment of the loan in full, re- gardless of what happens to the market value of the securities. In the event the market value of the collateral for your loan declines in value, resulting in a Margin Call or a Maintenance Call (see subparagraphs 2 and 3 below), and you do not make the required payment, the securities in your Account could be sold, subjecting you to a possible loss. FURTHER, BY USING MARGIN, YOU GIVE STIFEL THE RIGHT, AT ITS SOLE DIS- CRETION, AND WITHOUT NOTICE TO YOU, TO LIQUIDATE SECURITIES IN YOUR ACCOUNT(S).

Extension of Credit on Margin. Stifel may from time to time, but shall not be obligated to, loan you money for the purchase pur- chase and/or sale of securities, as well as for other purposes authorized by this Agreement. You agree that all securities held, carried, or maintained by Stifel for any of the accounts you maintain at Stifel and all other property you maintain at Stifel shall be collateral for such extensions of credit to you by Stifel and represent that you have not otherwise pledged such assets as collateral to anyone other than Stifel. You understand that use of margin constitutes a loan to you and a client with a margin mar- gin account is indebted to Stifel and will be charged interest. As an example, in some ways, a margin account is like a loan or a home equity line of credit. Most homeowners have a house with a market value, a portion which is debt on which he or she pays interest and a portion which is equity. A client may borrow against the equity portion of the market value. If the market value of the house declines below value upon which the home equity line of credit was based, however, the homeowner may wind up owing more money than the value of the house. SimilarlySimi- larly, a client with a margin account has current market value, debt on which he or she pays interest, and equity. However, there is more risk to a margin account than a home equity loan. The primary risk in a margin account is that the securities securing the loan might decline in value to the point where the loan, the client’s debit balance, is no longer fully collateralized. You are legally responsible for repayment of the loan in full, re- gardless of what happens to the market value of the securities. In the event the market value of the collateral for your loan declines in value, resulting in a Margin Call or a Maintenance Call (see subparagraphs 2 and 3 below), and you do not make the required payment, the securities in your Account could be sold, subjecting you to a possible loss. FURTHER, BY USING MARGIN, YOU GIVE STIFEL THE RIGHT, AT ITS SOLE DIS- CRETION, AND WITHOUT NOTICE TO YOU, TO LIQUIDATE SECURITIES IN YOUR ACCOUNT(S).

Extension of Credit on Margin. Stifel may from time to time, but shall not be obligated to, loan you money for the purchase and/or sale of securities, as well as for other purposes authorized by this Agreement. You agree that all securities held, carried, or maintained by Stifel for any of the accounts you maintain at Stifel and all other property you maintain at Stifel shall be collateral for such extensions of credit to you by Stifel and represent that you have not otherwise pledged such assets as collateral to anyone other than Stifel. You understand that use of margin constitutes a loan to you and a client customer with a margin account is indebted to Stifel and will be charged interest. As an example, in some ways, a margin account is like a loan or a home equity line of credit. Most homeowners have a house with a market value, a portion which is debt on which he or she pays interest and a portion which is equity. A client customer may borrow against the equity portion of the market value. If the market value of the house declines below value upon which the home equity line of credit was based, however, the homeowner may wind up owing more money than the value of the house. Similarly, a client customer with a margin account has current market value, debt on which he or she pays interest, and equity. However, there is more risk to a margin account than a home equity loan. The primary risk in a margin account is that the securities securing secur- ing the loan might decline in value to the point where the loan, the clientcustomer’s debit balance, is no longer fully collateralized. You are legally responsible for repayment of the loan in full, re- gardless of what happens to the market value of the securities. In the event the market value of the collateral for your loan declines in value, resulting in a Margin Call or a Maintenance Call (see subparagraphs 2 3 and 3 4 below), and you do not make the required payment, the securities in your Account could be sold, subjecting you to a possible loss. FURTHER, BY USING MARGIN, YOU GIVE STIFEL THE RIGHT, AT ITS SOLE DIS- CRETIONDISCRETION, AND WITHOUT NOTICE TO YOU, TO LIQUIDATE SECURITIES SE- CURITIES IN YOUR ACCOUNT(S).