Resolving Unpaid Debts or Other Obligations. If your available balance is not enough to satisfy a given debit, we reserve the right to take action as we see fit, including any of the following: • decline to honor the debit, which may result in fees (such as a returned check fee) or other consequences for you • if you have a margin account and the unsatisfied debit is for a securities purchase, draw on the available balance of another account of yours that we hold Note that at any time, we may reduce your available balance based on obligations that have been incurred but not yet debited, It is important to understand that we have additional choices for resolving unsatisfied obligations. Like many other securities brokers, we reserve the right to sell, transfer or otherwise use any assets or other property in which you have an interest —either currently or at any other time — to discharge any obligations you may have to us or the holding company (including unmatured and contingent obligations), and to do so without further notice or demand. For example, if you have bought securities but not paid for them, we may sell them ourselves and use the proceeds to settle the purchase. We may also use property to satisfy a margin deficiency or other obligation, whether or not we have made advances in connection with this property. This provision extends to any property held by you or carried for any account of yours, including any credit balances, assets, and contracts, as well as shares of any mutual funds or other investment companies for which we, or an affiliate provides management or administrative services. Although we may use other methods when we determine they may be more appropriate, we reserve the right to use the provisions described in this section at any time, except in cases involving retirement accounts when these provisions would conflict with the Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of 1986, both as amended.
Resolving Unpaid Debts or Other Obligations. You will maintain enough assets in your account to satisfy all obligations as they become due, and you authorize us or the Clearing Firm to take whatever steps we or the Clearing Firm may consider necessary to resolve unpaid debts or other obligations. If your available balance is not sufficient to satisfy any debt or obligation, we and the Clearing Firm reserve the right to take action as we see fit, including any of the following: • Decline to honor the debit, which may result in fees (such as a returned check fee) or other consequences for you. • If you have a margin account and the unsatisfied debit is for a securities purchase, you authorize us to draw on any available assets in any account you maintain with us as otherwise authorized by law. • If you have a margin account, we or the Clearing Firm may transfer to that account any unresolved debit from other accounts you maintain with us. In the event funds or securities are deposited to your account due to an error by us or the Clearing Firm, we reserve the right to debit your account for any such assets. If such funds or securities are subsequently removed by you from your account, we reserve the right to take any action necessary, including legal action, to retrieve assets to which you were not entitled.
