Common use of Loan or Pledge of Securities Clause in Contracts

Loan or Pledge of Securities. You authorize Clearing Firm to lend either to itself or to others any securities and/or other property, together with all attendant rights of ownership, held by it in your margin account. You acknowledge that in connection with such loans, Clearing Firm may receive and retain certain benefits to which you will not be entitled. In certain circumstances, such loans may limit, in whole or in part, your ability to exercise voting rights of the securities lent. This authorization shall apply to all accounts carried by Clearing Firm for you and shall remain in full force until written notice or revocation is received by Clearing Firm. Within the limitations imposed by applicable laws, rules, and regulations, you agree that all of your securities and/or other property may be pledged and repledged and hypothecated and rehypothecated by Clearing Firm from time to time without notifying you, either separately or together with other securities and/or other property of other bona fide customers for any amount due to it in any Account in which you have an interest. Clearing Firm may do so without retaining in its possession or control for delivery a like amount of similar securities and/or other property. Clearing Firm may receive compensation in connection with the lending of customer securities. When your securities are lent, you may receive substitute interest, dividend, or other payments (“substitute payments”), instead of qualified dividends, tax exempt interest payments, or tax deferred payments. Because substitute payments do not maintain their characterization as qualified dividends, tax exempt interest payments, or tax deferred payments, you may be subject to income tax or a higher tax rate as a result of receiving a substitute payment.