Common use of Method of Interest Computation Clause in Contracts

Method of Interest Computation. At the close of each monthly interest period during which credit was extended to you, the interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should the applicable schedule rate change during the interest period, separate computations will be made respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest charged. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account at the close of the interest period is added to the opening debit balance for the next interest period. With the exception of credit balances resulting from short sales, all other credit and debit balances will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your cash account and you hold a margin account, interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as the result of any short positions will be disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, i.e., short against the box. If the security in which you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which you sold short depreciates in market price, the interest charged will be reduced since the average debit balance will decline. This practice is commonly known as “marking-to the-market. Weekly, a closing price is used to determine any appreciation or depreciation of the security sold short. If your Account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest charges.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodLPL Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in your short salesaccount, all other credit and debit balances in each portion of your account will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account (i.e., short against the box). If the security in which that you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “"marking-to theto-market". Weekly, a The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following Business Day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate Schedule Rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodSchedule Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in your short salesaccount, all other credit and debit balances in each portion of your account will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest periodInterest Period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account (i.e., short against the box). If the security in which that you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “"marking-to theto-market". Weekly, a The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following Business Day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to youYou, the an interest charge is computed by multiplying the average daily adjusted debit balance Debit Balance by the applicable schedule rate and by the number of days during which a debit balance Debit Balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended made to your Your Account at the close of the interest period Interest Period is added to the opening debit balance Debit Balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in Your short salesaccount, all other credit and debit balances Debit Balances in all of Your accounts will be combined daily and interest will be charged on the resulting average daily net debit balances Debit Balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance Debit Balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you You should be long the same position in your Your margin account, account (i.e., short against the box). If the security in which you that You sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which you that You sold short depreciates in market price, the interest charged will be reduced since the Your average debit balance Debit Balance will decline. This practice is commonly known as “marking-to theto-market. Weekly, a .” The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Your Account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Your Account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following Business Day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended made to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. Pershing Base Lending Rate agreements with our customers are governed by the laws of the State of New York. With the exception of credit balances resulting from in the short salesaccount, all other credit and debit balances in all of your accounts will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin account, account (type 2) interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account i.e., short sale against the box. If the security in which you sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “"marking-to theto-the market. Weekly, a ." The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following business day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodLPL Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in your short salesaccount, all other credit and debit balances in each portion of your account will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account (i.e., short against the box). If the security in which that you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “marking-marking to the-market. Weekly, a .” The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distributiondistribution on the following Business Day. The net debit balance amount of credit that may be extended by LPL and the terms of such extension are governed by rules of the Federal Reserve Board and FINRA. Within the guidelines of these rules and subject to adjustment required by changes in such rules and our business judgment, LPL establishes certain policies with respect to margin accounts. If the market value of securities in a margin account declines, LPL may require the deposit of additional collateral. Margin equity is the current market value of securities and cash deposited as security less the amount owed LPL for credit extended at its discretion. It is LPL’s general policy to require margin account holders to maintain equity in its margin accounts of the greater of 30% of the current market value or $3.00 per share for common stock purchased on margin. LPL applies other standards for other types of securities. For example, securities may be ineligible for margin credit from time to time. For information with respect to general margin maintenance policy as to municipal bonds, corporate bonds, listed United States Treasury notes and bonds, mutual funds, and other securities, as well as information about the eligibility of particular securities for margin credit, please contact your LPL representative. Notwithstanding the above general policies, LPL reserves the right, at its discretion, to require the deposit of additional collateral and to set required margin at a higher or lower amount with respect to particular accounts or classes of accounts as it deems necessary. In making these determinations, LPL may take into account various factors including the size of the account, liquidity of a position, unusual concentrations of securities in an account account, or a decline of credit worthiness. If you fail to meet a margin call in a timely manner, some or all of your positions may be paid in full at any timeliquidated. LPL may exchange credit information about you with others. LPL may request a credit report on you and upon request, thereby avoiding further interest chargesLPL will state the name and address of the consumer reporting agency that furnished it. If LPL extends, updates, or renews your credit, LPL may request a new credit report without notifying you.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended made to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. Pershing Base Lending Rate agreements with our customers are governed by the laws of the State of New York. With the exception of credit balances resulting from in the short salesaccount, all other credit and debit balances in all of your accounts will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account i.e., short sale against the box. If the security in which you sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “"marking-to theto-the market. Weekly, a ." The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following business day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended made to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. Pershing Base Lending Rate agreements with our customers are governed by the laws of the State of New York. With the exception of credit balances resulting from in the short salesaccount, all other credit and debit balances in all of your accounts will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin account, account (type 2) interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account i.e., short sale against the box. If the security in which you sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “marking-to the-"marking‐to‐the market. Weekly, a ." The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following business day.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended made to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in your short salesaccount, all other credit and debit balances in all of your accounts will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account (i.e., short against the box). If the security in which that you sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “marking-to theto-market. Weekly, a ,” The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest chargesdistribution on the following Business Day.

Method of Interest Computation. At the close of each monthly interest period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance for that currency by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodPershing Base Lending Rate for that currency, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest charged. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account at the close of the interest period is added to the opening debit balance for that currency for the next interest period. Agreements are governed by the laws of the State of New York. With the exception of credit balances resulting from short salesin your Short Account, all other credit and debit balances in the same currency will be combined daily and interest will be charged on the resulting average daily net debit balances for that currency for the interest period. If there is a debit in your cash account Account and you hold a margin accountMargin Account, interest will be calculated on the combined debit balance for that currency and charged to the margin accountMargin Account. Any credit balance as the result of any short positions will be in your Short Account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, Margin Account; i.e., short sale against the box. If the security in which that you sold short (or sold short against the box) appreciates in market price over the selling price, interest will be charged in U.S. dollars or any other currency on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “marking-to to-the-market. .” Weekly, a closing price is used to determine any appreciation or depreciation of the security sold short. If your Account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day day, your Account will be charged the amount of the dividend or other distribution. The net debit balance in an account may be paid in full at any time, thereby avoiding further interest charges.

Method of Interest Computation. At the close of each monthly interest period Interest Period during which credit was extended to you, the an interest charge is computed by multiplying the average daily adjusted debit balance by the applicable schedule rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should If there has been a change in the applicable schedule rate change during the interest periodLPL Base Lending Rate, separate computations will be made with respect to each rate of charge for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a divisor of 360 days is used in determining the interest chargedPeriod. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account account at the close of the interest period Interest Period is added to the opening debit balance for the next interest periodInterest Period unless paid. With the exception of credit balances resulting from in your short salesaccount, all other credit and debit balances in each portion of your account will be combined daily and interest will be charged on the resulting average daily net debit balances for the interest period. If there is a debit in your the cash account (type 1) and you hold there is a margin accountaccount (type 2), interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as in the result of any short positions will be account is disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long the same position in your margin account, account (i.e., short against the box). If the security in which that you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if the security which that you sold short depreciates in market price, the interest charged will be reduced since the your average debit balance will decline. This practice is commonly known as “marking-marking to the-market. Weekly, a .” The daily closing price is used to determine any appreciation or depreciation of the security sold short. If your Account account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account account will be charged the amount of the dividend or other distributiondistribution on the following Business Day. The net debit balance amount of credit that may be extended by LPL and the terms of such extension are governed by rules of the Federal Reserve Board and FINRA. Within the guidelines of these rules and subject to adjustment required by changes in such rules and our business judgement, LPL establishes certain policies with respect to margin accounts. If the market value of securities in a margin account declines, LPL may require the deposit of additional collateral. Margin account equity is the current market value of securities and cash deposited as security less the amount owed LPL for credit extended at its discretion. It is LPL’s general policy to require margin account holders to maintain equity in its margin accounts of the greater of 30% of the current market value or $3.00 per share for common stock purchased on margin. LPL applies other standards for other types of securities. For example, securities may be ineligible for margin credit from time to time. For information with respect to general margin maintenance policy as to municipal bonds, corporate bonds, listed United States Treasury notes and bonds, mutual funds, and other securities, as well as information about the eligibility of particular securities for margin credit, please contact your LPL representative. Notwithstanding the above general policies, LPL reserves the right, at its discretion, to require the deposit of additional collateral and to set required margin at a higher or lower amount with respect to particular accounts or classes of accounts as it deems necessary. In making these determinations, LPL may take into account various factors including the size of the account, liquidity of a position, unusual concentrations of securities in an account account, or a decline of credit worthiness. If you fail to meet a margin call in a timely manner, some or all of your positions may be paid in full at any timeliquidated. LPL may exchange credit information about you with others. LPL may request a credit report on you and upon request, thereby avoiding further interest charges.LPL will state the name and address of the consumer reporting agency that furnished it. If LPL extends, updates, or renews your credit, LPL may request a new credit report without notifying you. Client Signature Client Name (print) Date Client Signature Client Name (print) Date Investment Advisor Representative Signature Accepted: LPL Financial Corporation Investment Advisor Representative Name (print) Date Signature Date

Method of Interest Computation. At the close of each monthly interest period during which credit was extended to you, the interest charge is computed by multiplying the average daily daily- adjusted debit balance by the applicable schedule interest rate and by the number of days during which a debit balance was outstanding and then dividing by 360. Should the applicable schedule rate change during the interest period, separate computations will be made with respect to each rate of charge charged for the appropriate number of days at each rate during the interest period. Interest charged is calculated on a settlement date basis. Please note that a A divisor of 360 days is used in determining the interest charged. The use of this divisor will affect the actual interest charged on an annualized basis and will result in a slightly higher rate on such an annualized basis than the scheduled rate described. If not paid, the interest charge for credit extended to your Account at the close of the interest period is added to the opening debit balance for the next interest period. With the exception of credit balances resulting from short sales, all other credit and debit balances will be combined daily and interest will be charged on the resulting average daily net adjusted debit balances for the interest period. If there is a debit in your cash account and you hold a margin account, interest will be calculated on the combined debit balance and charged to the margin account. Any credit balance as the result of any short positions will be disregarded because such credit collateralizes the stock borrowed for delivery against the short sale. Such credit is disregarded even if you should be long in the same position in your margin account, i.e.that is, short against the box. If the security in which you sold short (or sold against the box) appreciates in market price over the selling price, interest will be charged on the appreciation in value. Correspondingly, if If the security which you sold short depreciates in market price, the interest charged will be reduced since the average debit balance will decline. This practice is commonly known as “"marking-to to- the-market. Weekly." Daily, a closing price is used to determine any appreciation or depreciation of the security sold short. If your Account is short shares of stock on the record date of a dividend or other distribution, however such a short position occurs, on the following business day your Account will be charged the amount of the dividend or other distribution. The net daily adjusted debit balance in an account may be paid in full at any time, thereby avoiding time to avoid further interest charges.