Portfolio Connection Brokerage Account - Union Bank

Effective January 1, 2012 

Portfolio 

Connection 

Brokerage 

Account 

Disclosure and Agreement 

UBC2871b_02022-A_1110_PortCon_AA_r2a.indd 1 

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Table of Contents 

1. GENERAL DISCLOSURES AND DEFINITIONS 

A. Meaning of Words in This Agreement 

B. Customer Identification Program (CIP) Notice 

C. Customer Due Diligence 

D. English Language Controlling 

E. Headings 

F. Business Days 

G. Transaction Settlement Deadlines 

H. Extraordinary Events 

I. Governing Law and Applicable Regulations 

J. Clearing Broker Relationship/Safekeeping 

K. Notice to Customers 

L. Contacting Me by Telephone 

M. Amendments/Termination 

N. Waivers 

O. Severability 

2. BROKERAGE FEATURES 

A. General 

i. Authority and Ownership 

ii. Appointment of Investment Services as Agent 

iii. Investment Objectives 

iv. Fees and Charges 

v. Statements/Confirmations 

vi. Statement Householding 

vii. Use of Nominees 

viii. Use of Institutional Delivery System 

ix. Collection Obligations 

x. Non-Personal Transactions or Instruction Requests 

xi. Corporate Actions and Advice 

xii. Account Information Released to Issuers of Securities 

xiii. Purchase and Sale Orders/Interest and Dividends/ 

Custody 

a. Purchase and Sales Orders 

b. Interest and Dividends 

c. Custody 

xiv. Core Account Investment Vehicle 

a. Money Market Mutual Fund 

b. Bank Deposit Sweep Program 

c. General Information 

xv. Joint Accounts 

xvi. Power of Attorney 

xvii. Security Interest 

xviii. Taxation of Account 

xix. Account Protection 


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xx. Dividend Reinvestment 

xxi. Payment for Order Flow 

B. Account Features 

i. Core Account Investment Vehicles for Sweeps 

ii. Online Investing and Telephone Investing 

a. Disclaimers 

b. Limitations of Liabilities 

c. Confidentiality 

d. Re-dissemination 

e. Trading 

f. Termination 

iii. Payment of Checks and Other Transactions 

iv. Check-Writing Privileges 

v. Margin Orders/Loans and Options 

(Requires Separate Application) 

vi. Transfer on Death (TOD) Designation 

For information regarding your Portfolio Connection Cash 

Management Features and Services, please refer to the 

All About Personal Accounts & Services Disclosure and Agreement. 


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Portfolio Connection Agreement 

Investments available through UnionBanc Investment Services LLC, 

a registered broker-dealer, investment advisor, member FINRA/SIPC 

and subsidiary of Union Bank®, N.A.: 

• Are not bank deposits 

• Are not obligations of, or guaranteed by, UnionBanc 

Investment Services LLC, any bank or any subsidiary or 

affiliate thereof 

• Are not insured or guaranteed by the FDIC or by any other 

government agency 

• Involve investment risk, including the possible loss of principal 

This Agreement governs the terms and conditions of my Portfolio 

Connection Brokerage Account with a) UnionBanc Investment 

Services LLC (”Investment Services”), the Introducing Broker, b) 

National Financial Services, LLC (“NFS”), a FINRA member firm, 

the Clearing Broker, and c) Union Bank, N.A. (“Bank”), when they 

have accepted it in their respective offices. A Portfolio Connection 

Brokerage Account with Investment Services provides (i) the cash 

management investment option to automatically sweep uninvested 

cash balances on a daily basis into a money market mutual fund 

or a bank deposit and (ii) the convenience of bill-paying services 

without having to open a bank account. This Agreement also governs 

the terms and conditions of the cash management features of my 

Portfolio Connection Brokerage Account and the related processing 

provided by the Bank. 

This Agreement, the All About Personal Accounts & Services Disclosure 

and Agreement, and either the UnionBanc Investment Services Bank 

Deposit Sweep Program (BDSP SM ) All About & Disclosure Document 

or the prospectus for the HighMark® California Tax-Free Money 

Market Fund as applicable to my sweep feature and the related 

Portfolio Connection Brokerage Account Application constitute the 

entire Agreement between the parties with respect to my Portfolio 

Connection Brokerage Account. All previous Portfolio Connection 

agreements and instructions, whether written or oral, between 

Investment Services, NFS and/or the Bank and me are hereby 

superseded. 

Upon account acceptance by Investment Services and NFS, I will 

have a Portfolio Connection Brokerage Account through Investment 

Services and held at NFS to be used for buying and selling permissible 

securities and other permissible properties and for conducting other 

permissible transactions according to my instructions. 

I understand that Investment Services or NFS can change the Core 

Account Investment Vehicle(s) available for my account at any time, 

including changing the Core Account Investment Vehicle from a 

mutual fund to a bank deposit account. 

In consideration for Investment Services’ and NFS’s accepting my 

account(s), I agree to the following provisions: 

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1. GENERAL DISCLOSURES AND DEFINITIONS 

I AGREE THAT I WILL OBTAIN AND READ THE PROSPECTUS OF 

ANY MUTUAL FUND AND THE OFFERING MEMORANDUM FOR 

ANY NEW ISSUE SECURITY I INSTRUCT INVESTMENT SERVICES 

AND/OR NFS TO PURCHASE. 

A. Meaning of Words in This Agreement 

As used in this agreement, “I,” “me,” “my,” “our,” “us,” and “we” refer 

to the person(s) who signed this Agreement and others who are 

legally obligated on the Portfolio Connection Brokerage Account and/ 

or are authorized to take actions with respect to investments in the 

Portfolio Connection Brokerage Account on my behalf, or the entity 

on whose behalf this Agreement is executed. “You” and “your” refer 

to Investment Services, NFS and/or the Bank as the context requires, 

and their officers, directors, agents and/or employees. References 

to a Portfolio Connection Brokerage Account include both the 

brokerage and settlement services, features and transactions for the 

affiliated Core Investment Account Vehicle I have with Investment 

Services, the Bank, and NFS, and cash management services, 

features, and transactions conducted and processed by the Bank. 

Cash management services provided by the Bank may include, but 

are not limited to, check cashing, ATM deposits and withdrawals, and 

wire and ACH transfers. A complete listing of services and fees is 

contained in the Portfolio Connection Handbook and Fee Schedules, 

respectively. References to “securities” mean permissible securities 

of any kind, whether for present or future delivery. The words “other 

property” mean permissible investments other than securities, 

available in U.S. markets, including money market instruments and 

financial instruments, such terms to include but not be limited to 

certificates of deposit, bankers acceptances and commercial paper. 

Reference to “transactions” means permissible transactions in 

securities and other property available in U.S. markets, including but 

not limited to wire transfers, checks, ATM deposits and withdrawals, 

and ACH payments. 

B. Customer Identification Program (CIP) Notice 

To help the government fight the funding of terrorism and money 

laundering activities, federal law requires all financial institutions to 

obtain, verify, and record information that identifies each person and/ 

or entity that opens an account, and to understand the anticipated 

activity of the account. 

What this means to me: When I open an account, you will ask for my name, 

street address, date of birth (for individuals) and other information that 

will allow you to identify me. You will also ask to see my driver’s license, 

tax identification number or other identifying documents. 

C. Customer Due Diligence 

Customer ID/USA PATRIOT Act and Transaction Information 

Requirements. To aid Investment Services and NFS in complying with 

the USA PATRIOT Act and related laws and regulations, you may also 

ask me for specific information regarding the nature of anticipated 

activity, the sources of my funds, the purposes of transactions, 

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the relationship I have with persons to whom I send funds and 

the persons who send funds to me, the anticipated frequency of 

such transactions, the ultimate beneficiaries of funds I send and 

receive, and other questions that may help to clarify the nature and 

purpose of transactions. This information may include the full name, 

permanent address, Social Security and/or Employer Identification 

Number, driver’s license or passport, or occupation or profession for 

the individual conducting the transaction. If this information is not 

provided, I acknowledge and agree that you are required to refuse to 

handle the transaction. 

You may, at your sole discretion, elect not to open an account, to 

limit, restrict or refuse to process transactions in an existing account, 

or to close any existing account, with or without cause. This will 

typically be done if you are not able to understand the purpose of 

the account, the structure of an organization, the authority of the 

signers, the documentation provided or the general risk associated 

with the establishment of the account, and to comply with the USA 

PATRIOT Act and related laws and regulations. You may elect not to 

disclose the specific reason. 

D. English Language Controlling 

I agree that English is the controlling language of this Agreement 

and of the Portfolio Connection Brokerage Account and services 

described or referred to herein. In case of any disagreement between 

English and another language you may use in communicating with 

me in writing, the English language version is controlling, unless 

you agree otherwise with me in writing, or the laws governing my 

account specifically require a different result. I agree that all written 

instructions I give you (for example, traditional paper checks) will be 

in English. I further agree that you may decline to process requests, 

such as checks, drafts or other instruments for the payment of funds 

written in a language other than English, whether issued by me or 

another person, without liability on your part. 

E. Headings 

Headings are for convenience only and are not part of this Agreement. 

F. Business Days 

For the purpose of this Agreement, business days are Monday 

through Friday, excluding legal holidays. 

G. Transaction Settlement Deadlines 

Unless notified to the contrary, I need to pay for all transactions by 

2 p.m. Eastern Time/11 a.m. Pacific Time on the settlement date and 

deliver all securities and other property in time for you to receive 

them one business day before the settlement date. You and NFS 

reserve the right to cancel or liquidate, at my risk, any transactions 

not settled in a timely way. I understand that under current securities 

settlement rules, settlement of securities trades and trades of 

other property ranges between the same day as the trade and three 

business days from the trade. 

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H. Extraordinary Events 

Neither Investment Services, NFS nor the Bank shall be liable for any 

loss or delay caused directly or indirectly by war; natural disasters; 

government restrictions; exchange or market rulings; extraordinary 

exchange or market conditions including volatility and trading volumes; 

telecommunications, utility or equipment failures; or other conditions 

beyond Investment Services’, NFS’s, or the Bank’s reasonable control. 

I. Governing Law and Applicable Regulations 

This Agreement and all transactions hereunder shall be governed by 

the laws of the State of California without giving effect to the choice 

of law or conflict of laws provisions thereof. All transactions for my 

Portfolio Connection Brokerage Account shall be further subject to 

the regulations of all applicable federal, state, and regulatory agencies, 

including but not limited to the Securities and Exchange Commission, 

the applicable self-regulatory organizations, the Board of Governors 

of the Federal Reserve System, the Office of the Comptroller of the 

Currency, and the constitution, rules and customs of the exchange 

or market where executed. Actual deliveries are intended on all 

transactions. I agree not to exceed the exercise limits and/or position 

limits set by the option exchanges for my Portfolio Connection 

Brokerage Account, acting alone or in concert with others. 

J. Clearing Broker Relationship/Safekeeping 

I understand that all information supplied by me will be subject 

to verification, and I warrant that all information I have provided 

on the Portfolio Connection Brokerage Account Application is 

correct. I understand that Investment Services has entered into an 

agreement with NFS to execute and clear all brokerage transactions. 

NFS will provide margin loans if authorized. I understand that 

neither Investment Services nor NFS provides investment advice 

for the purchase or sale of options in connection with this Portfolio 

Connection Brokerage Account, nor do you give advice or offer any 

opinion with respect to any stocks or options, and that no fiduciary 

relationship exists. Transactions for securities and other property 

may also be executed through other entities, including the Bank and 

its affiliates, and I acknowledge and agree that the Bank or an affiliate 

may serve as principal and receive compensation. I understand that 

securities and other property purchased for my Portfolio Connection 

Brokerage Account may be held by NFS, and such securities and cash 

will be protected by the Securities Investor Protection Corporation 

(SIPC) to the maximum amount allowed by law. I understand that 

other property may be held with other entities and such property 

may or may not be protected by SIPC. I further understand that my 

Portfolio Connection Brokerage Account may consist of accounts at 

NFS and other entities simultaneously. 

Certain securities and other property may not be held for 

safekeeping with NFS but, instead, may be held with the Bank’s 

Global Markets division. Such safekeeping services are not offered 

through the Bank’s Trust/Custody group. Certain services and 

features offered through my Portfolio Connection Brokerage Account 

may not be available for securities and other assets safekept by 

the Bank’s Global Markets division, such as securities held on 

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margin. The Bank or its affiliates will provide me with statements/ 

confirmations for the securities and other assets that it or they 

safekeep on my behalf. Separate fees may apply. 

K. Notice to Customers 

Financial Industry Regulatory Authority (FINRA) Rule 4311 requires 

that the allocation between Investment Services and NFS of certain 

functions regarding the administration of my Portfolio Connection 

Brokerage Account be disclosed to me. The following is a summary 

of the allocation services performed by Investment Services and 

NFS. A more complete description is available upon request. 

Investment Services is responsible for: 

(1) Obtaining and verifying Portfolio Connection Brokerage Account 

information and documentation 

(2) Opening and approving my Portfolio Connection Brokerage 

Account 

(3) Transmitting timely and accurate instructions to NFS with 

respect to my Portfolio Connection Brokerage Account 

(4) Determining the suitability of investment recommendations 

and advice that Investment Services provides 

(5) Operating and supervising my Portfolio Connection Brokerage 

Account and its own activities in compliance with applicable 

laws and regulations, including compliance with margin rules 

pertaining to my margin account 

(6) Maintaining the required books and records for the services 

it performs, and 

(7) Advising me of margin requirements and ensuring that my 

account remains in compliance with applicable federal, selfregulatory, 

industry and NFS margin requirements if I have a 

margin account. 

NFS shall, at the direction of Investment Services: 

(1) Execute, clear and settle transactions processed through NFS by 

Investment Services 

(2) Prepare and send transaction confirmations and periodic 

statements of my Portfolio Connection Brokerage Account 

(unless Investment Services has undertaken to do so) 

(3) Act as custodian for funds, securities and other property received 

by NFS on my behalf 

(4) Follow the instructions of Investment Services with respect to 

transactions and the receipt and delivery of funds and securities 

for my Portfolio Connection Brokerage Account, and 

(5) Extend margin credit for purchasing or carrying securities 

on margin if I have been approved for margin borrowing. 

Investment Services is responsible for ensuring that my Portfolio 

Connection Brokerage Account is in compliance with federal, 

industry and NFS margin rules, and for advising me of margin 

requirements. NFS shall maintain the required books and records for 

the services it performs. Certain pricing and other information may 

be provided by Investment Services or obtained from third parties, 

which have not been verified by NFS. 

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L. Contacting Me by Telephone 

By opening or maintaining a Portfolio Connection Brokerage Account 

with you, I give you and your authorized representatives my express 

consent to contact me by telephone, whether cellular (mobile) 

phone or landline, to communicate with me about any aspect of 

my Portfolio Connection Brokerage Account relationship with you, 

including without limitation debts or other obligations that may arise 

from time to time under this Agreement or under any agreement 

referenced herein. I expressly consent to the use of pre-recorded 

messages, artificial voices and/or autodialed calls when you contact 

me by telephone. 

M. Amendments/Termination 

Investment Services, NFS and the Bank may amend (add to, change 

or delete), terminate or restrict the services contemplated by this 

Agreement or provide me with additional disclosures, at any time, in 

any respect, effective upon 30 days’ advance notice to me. 

My use of the services provided hereunder, after you send such 

amendment, notice or disclosures shall constitute my agreement 

thereto. I have the right to terminate this Agreement at any time by 

sending written notice to: 

UnionBanc Investment Services, LLC 

P. O. Box 513100 

Los Angeles, CA 90051-1100 

In the event that Investment Services determines that the Core 

Account Sweep Vehicle in which my funds awaiting investment are 

invested is no longer an eligible Core Account Investment Vehicle, 

I authorize the withdrawal of my account balance from such Core 

Account Sweep Vehicle investment and agree that such funds 

may be invested in a different Core Account Investment Vehicle 

that (i) may not be a bank deposit, (ii) may not be eligible for FDIC 

insurance, and (iii) may not provide the same interest rate and/or 

rate of return as my previous Core Account Investment Vehicle. 

I will continue to be responsible for any obligations I incurred prior to 

any termination of this Agreement. Any termination will only affect 

transactions initiated after receipt of such notice; provided, however, 

that Investment Services, NFS and the Bank, as applicable, have a 

reasonable time to act on it. 

Upon termination of this Agreement as provided above you shall 

have a reasonable amount of time to transfer the securities and 

other property held in the Portfolio Connection Brokerage Account 

in accordance with my written instructions or those of the person or 

entity legally entitled to receive such securities and other property. 

After notification, all transactions will be restricted to those detailed 

in my instructions to transfer or liquidate my account. Your fees 

and costs related to termination including, without limitation, costs 

for shipping securities and other property held in the Portfolio 

Connection Brokerage Account and costs of registering securities and 

other property and generating reports and accounting for disposition 

of cash shall be charged to the Portfolio Connection Brokerage 

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Account. I will be responsible for notifying other third parties, such as 

government agencies and financial institutions, to redirect any direct 

deposits to or payments from my terminated Portfolio Connection 

Brokerage Account. 

N. Waivers 

I agree that you may delay enforcing your rights under this 

Agreement without losing them. Any waiver by you shall not be 

deemed a waiver of other rights or of the same right at another time. 

O. Severability 

If any provision of this Agreement is determined to be void or invalid, 

the rest of the Agreement will remain in full force and effect. 

2. BROKERAGE FEATURES 

A. General 

i. Authority and Ownership 

I represent that I have the legal capacity to enter into this Agreement 

and am authorized to do so. I will provide you with all necessary 

documentation authorizing the opening of and effecting transactions 

in my Portfolio Connection Brokerage Account. I will be the owner 

of all securities and other property purchased, held and sold in my 

Portfolio Connection Brokerage Account or will otherwise have the 

authority to purchase, hold and sell securities and other property. 

The information I provide you with respect to opening my Portfolio 

Connection Brokerage Account is true and correct in all respects, 

and I will notify you of any material changes. 

I may not grant, transfer or assign any of my rights under this Agreement 

to anyone else without the prior written consent of Investment Services 

and NFS. Ownership of this Portfolio Connection Brokerage Account 

is not transferable. 

If I am an employee of a broker-dealer or municipal securities dealer, 

I will notify you thereof at or before the time my Portfolio Connection 

Brokerage Account is opened, or at such later time as I become such. 

I authorize you to send duplicate confirmations to my employer or 

referring entity, respectively, if you are requested or required to do so. 

ii. Appointment of Investment Services as Agent 

I appoint Investment Services as my agent for the purpose of 

carrying out my directions with respect to the purchase and sale and 

settlement of securities and other property in accordance with this 

Agreement, and I assume all risks with respect to the purchase and 

sale of securities and other property. I authorize you to take such 

steps as are reasonably necessary to carry out my directions and your 

duties, including but not limited to appointing and using independent 

contractors or subagents, including National Financial Services, for 

Investment Services’ Portfolio Connection Brokerage Account. To 

carry out my directions, you and such agents are authorized to open 

and close my Portfolio Connection Brokerage Account; maintain 

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customer records; hold securities and other property in bearer, 

registered or book entry form; and place and withdraw orders. 

For questions or problems on the Investment or Brokerage functioning 

of my Portfolio Connection Brokerage Account, I can contact: 

UnionBanc Investment Services, LLC 

P. O. Box 513100 

Los Angeles, CA 90051-1100 

1-800-634-1100 

Toll-free within the U.S. 

1-213-236-7919 

Outside the U.S. 

iii. Investment Objectives 

As the account owner, I am responsible for ranking my account’s 

investment objectives by order of importance. I understand that 

on the Portfolio Connection Brokerage Account Application I have 

provided you, I have ranked my investment objectives by order of 

importance and that rank number 1 has the highest importance. 

Neither Investment Services nor NFS can assure me that any given 

investment or strategy will achieve my investment objectives. The 

investments listed within each investment objective below are for 

illustrative purposes only. They reflect common types of investments 

often associated with such investment objectives. They are not 

intended to serve as investment advice. 

Preservation of Capital: 

●● 

Seeks to maintain principal 

●● 

Interested in investments with low risk of principal loss 

Typical Investments: 

●● 

Money Market Mutual Funds 

●● 

High-quality, short-term fixed-income investments 

Income: 

●● 

Seeks to generate income from investments 

●● 

Interested in investments with low risk of principal loss 


●● 

High-quality, short- and medium-term fixed-income investments 

●● 

Short-term bond funds 

Capital Appreciation: 

●● 

Seeks to grow principal value over time 

●● 

Willing to invest in securities with moderate to above-average risk 

of principal loss 


●● 

●● 

Common stocks 

Equity mutual funds or index funds 

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Trading Profits: 

●● 

Seeks to take advantage of short-term trading opportunities 

(a high-risk strategy) 


●● 

Short-term purchases and sales of volatile or low-priced 

common stocks 

●● 

Equity or index options strategies such as puts or calls, spreads, 

straddles and combinations 

Speculation: 

●● 

●● 

Seeks to significantly increase principal 

Willing to accept a greater degree of risk by investing in securities 

with a correspondingly higher risk of loss of principal 


●● 

Lower-quality, fixed-income investments 

●● 

Initial public offerings (IPOs) 

●● 

Volatile or low-priced common stocks 

●● 

Equity or index options strategies such as puts or calls, spreads, 

straddles and combinations 

●● 

Short-term or day-trading strategies 

Other: 

●● 

Other types of risks and investments that I designate 

●● 

A combination of the investment options listed above 

iv. Fees and Charges 

I understand that you will charge brokerage commissions and other 

fees for execution of my transactions. I understand that you may 

charge me for additional custody and/or safekeeping for securities and 

other property custodied and safekept by the Bank’s Global Markets 

division. You may also impose various service charges and other fees 

relating to my Portfolio Connection Brokerage Account, including but 

not limited to fees and charges associated with the cash management 

transactions processed by the Bank. Fees and charges will be made in 

accordance with your then prevailing fee schedule applicable to this 

Portfolio Connection Brokerage Account. Your compensation may 

consist of certain fees and allowances, including service payments 

or a percentage of a sales load which you may receive from mutual 

funds, as disclosed in the mutual fund prospectuses. In addition, you 

may receive distribution fees from a fund under a fund’s 12b-1 plan. 

I understand that Investment Services may be paid a portion of this 

fee as compensation. I understand that purchases of no-load mutual 

funds directly from issuer, principal underwriter, or distributor may 

be available without transaction fees. For further information, I will 

consult the applicable fund’s prospectus. 

I agree to pay all such charges, commissions and fees at your then 

prevailing rates through my Portfolio Connection Brokerage Account, 

and I authorize you to debit my Portfolio Connection Brokerage 

Account for the amount thereof. I also understand that charges, 

commissions and fees may be changed from time to time and I agree 

to be bound thereby. 

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v. Statements/Confirmations 

I agree to promptly examine all statements and confirmations sent to 

me in connection with my Portfolio Connection Brokerage Account. 

I will notify Investment Services and NFS of any errors, inaccuracies 

or discrepancies to information reported to me within 10 days after 

you make the statement available to me and within 5 days after you 

make a confirmation available to me. Otherwise, such information 

will be deemed approved by me. 

I will direct inquiries or concerns regarding my Portfolio Connection 

Brokerage Account or the activity therein to the Investment Services 

toll-free number within the U.S. at 1-800-634-1100, from outside 

the U.S. by calling 1-213-236-7919, by using the address on the 

Portfolio Connection Brokerage Account Application, or to NFS, 

which carries my Portfolio Connection Brokerage Account and acts 

as my custodian for funds and securities deposited with NFS by 

me through Investment Services, or as a result of transactions NFS 

processes for my Portfolio Connection Brokerage Account. NFS may 

be contacted by calling 1-800-801-9942. I agree to confirm any oral 

communication regarding inaccuracies or discrepancies in writing. 

When contacting either Investment Services or NFS, I will provide 

my complete Portfolio Connection Brokerage Account number. You 

may request that I provide such documentation as may be necessary 

to substantiate my claim. I may request a confirmation for any 

transaction effected on my behalf, and such confirmation shall be 

sent within the time prescribed by law. 

The market values, ratings and prices reported on statements 

represent the prices, ratings and values provided to Investment 

Services, the Bank’s affiliates and NFS by third-party quotation 

services which are generally recognized as industry experts and 

believed to be reliable. Investment Services, NFS and the Bank do 

not guarantee the accuracy of such values, ratings and prices. The 

actual price at which securities may be bought and sold may be 

significantly different from those shown on the statement. 

vi. Statement Householding 

Unless I object, statement householding is an automatic service 

which links and consolidates all statements for my brokerage 

accounts, including Portfolio Connection, which meet certain criteria 

and sends these statements to me in one envelope. My brokerage 

accounts must meet the following criteria: 1) They have the same 

exact address in our records; 2) they all have the same registration 

code group (i.e., individual, joint, etc.); 3) the same Tax Identification 

Number (TIN) is used for all accounts; and 4) the same last name is 

associated with each TIN. For Uniform Gift to Minors Act (UGMA) 

and Uniform Transfers to Minors Act (UTMA) accounts, there is an 

exception to the exact TIN matching criteria. For these accounts, 

the Custodian’s TIN is used for matching purposes, rather than the 

minor’s TIN. The consolidated envelope will contain a statement for 

each account in the household relationship, as well as a Consolidated 

Summary of Accounts page. If any account holder changes an 

address on any account in the household, then the account will be 

excluded from both the consolidated envelope and the Consolidated 

Summary of Accounts page. 

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If the above criteria are not met, but I would still like to receive my 

statements in one envelope, I will contact Investment Services to 

request a statement householding form. 

vii. Use of Nominees 

You shall have the right to hold all registered securities and other 

property in the name of NFS or its nominee. 

viii. Use of Institutional Delivery System 

Notwithstanding any other provisions in this Agreement, I 

understand and agree that you may settle all securities and 

other property transactions effected by me through the use of an 

institutional delivery system. You may deliver or receive securities 

and other property in accordance with appropriate trade reports 

or statements received through an institutional delivery system in 

accordance with normal industry practices. 

ix. Collection Obligations 

You shall collect income and principal of which you have received 

actual notice in accordance with normal industry practices. You 

shall collect the income when paid and the principal when paid on 

maturity, redemption and sale or otherwise. You shall be under 

no obligation or duty to take any action to effect collection of any 

amount of which you have not received actual notice nor shall you 

have any obligation to effect collection if the securities or other 

property upon which such amount is payable is in default, or if 

payment is delayed or refused after due demand provided however, 

you shall have no duty to make such demands. You shall credit any 

such payments according to the payment instructions I provide. 

x. Non-Personal Transactions or Instruction Requests 

To protect my account from unauthorized access, I acknowledge 

that you will accept transaction or instruction requests not made in 

person only if you can reasonably determine my identity. You may 

require me to use passwords or personal identification numbers 

(PINs). You may contact me by telephone, or use another means 

to authenticate my identity and validate my request. Unless I have 

made special arrangements with you, you have no obligation to act 

upon instructions I give you via facsimile transmission, text message, 

email or leave by voicemail or on a telephone answering machine. 

Notwithstanding the foregoing, I authorize you to act on telephone, 

electronic, telex, wire, written, fax and any other instructions 

you believe in good faith that I have authorized. For our mutual 

protection, I authorize you to monitor and record any telephone 

conversation without further reminding me of the monitoring 

and recording. An intermittent telephone beep tone constitutes 

notification that the phone call may be monitored and recorded, and 

that continued communication shall be deemed consent by me to a 

monitoring and recordation of the conversation. 

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xi. Corporate Actions and Advice 

NFS or Investment Services, as appropriate, shall notify me of 

the actual receipt, if any, of notices of redemption, conversions, 

subscription rights, script certificates and other such corporate 

actions on a best-efforts basis. You have no obligation to monitor 

financial publications or otherwise monitor for notices of corporate 

actions, and you are not obligated to respond or take any action 

unless directed by me. 

I assume all responsibility and risk for the investment, review and 

reinvestment of all securities and other property in my Portfolio 

Connection Brokerage Account. You shall make all purchases, sales, 

exchanges, investments and reinvestments only upon receipt of and 

pursuant to my instructions. 

You shall have no discretionary power or control over any decisions 

made by me or on my behalf, whether or not any advice you may 

render is used in my decision. I understand that any advice which 

you may render is solely incidental to the conduct of your business 

under this Agreement, that such advice will not serve as the 

primary basis for any decision by me or on my behalf and that you 

may change your recommendations without notice to me. I further 

understand that you believe your advice is based on information from 

sources you consider reliable, but you do not warrant the accuracy, 

completeness or reliability of information from such sources. In 

this regard, if you supply a prospectus, offering circular or other 

materials related to an investment, you similarly believe it is based on 

information from sources you consider to be reliable, but you do not 

warrant its accuracy, completeness or reliability. I understand that 

you do not endorse any particular investment product, specifically 

including any mutual fund which is advised by your affiliates or you. 

xii. Account Information Released to Issuers of Securities 

Unless I instruct you otherwise, I authorize you to disclose my name, 

address and securities positions to issuers in whose securities I hold 

a position. 

xiii. Purchase and Sale Orders/Interest and Dividends/Custody 

a. Purchase and Sale Orders. Securities or other property I may have 

in my possession must be received by you in good transferable 

form prior to execution of any sell order. Unless I specify that the 

order be executed on a specific exchange or market and you have 

agreed to such execution, you will, at your sole discretion, and 

without prior notice to me, execute any order to purchase or sell 

securities in any location or on any market or exchange, where 

such security is traded. I understand that if I request transactions 

to be executed on a specific market or exchange and you agree, 

separate fees may apply. 

I will not buy or sell any securities or other property of which I 

am an affiliated party, or sell any restricted or control securities, 

except in compliance with applicable laws and regulations and 

with prior notice to you thereof. 

Monies credited to a Portfolio Connection Brokerage Account 

which is invested in an affiliated Money Market Mutual Fund will 

12 


10/24/11 10:06 AM

earn dividends, if any, as described in the Fund’s prospectus. I 

understand that access to the shares of a mutual fund purchased 

or redeemed with checks may be withheld to assure that such 

checks have been finally paid. Such withholding may result in 

dishonor of other checks or of other debit items if monies are not 

otherwise available to me. 

b. Interest and Dividends. Interest and dividend payments with 

respect to the assets in my Portfolio Connection Brokerage 

Account will be credited to the affiliated Money Market Mutual 

Fund when paid. 

c. Custody. Unless you notify me otherwise, securities and other 

property in, and purchased/sold for, my Portfolio Connection 

Brokerage Account by the Bank will be held by the Bank pursuant 

to the additional custody or safekeeping provisions herein; and 

unless you notify me otherwise, securities and other property 

in, and purchased/sold for, my Portfolio Connection Brokerage 

Account will be held by NFS. 

xiv. Core Account Investment Vehicle 

UnionBanc Investment Services provides customers the opportunity 

to earn income on un-invested cash in their brokerage account— 

through the Bank Deposit Sweep Program* or the affiliated money 

market mutual fund sweep option. The Deposit Sweep Option is 

the default Core Account Investment Vehicle for most types of 

UnionBanc Investment Services accounts, based on the type and 

nature of the account ownership. When the option you choose for 

your Core Account Investment Vehicle is the Bank Deposit Sweep 

Program, cash balances (or free credit balances) are automatically 

“swept” into an interest-bearing deposit account at Union Bank, 

N.A. Please refer to the Bank Deposit Sweep Program disclosure 

document for that product’s specific product features. For the 

HighMark California Tax-Free Money Market Fund, carefully 

consider the investment objectives, risks, and charges and expenses 

before investing in a mutual fund. I acknowledge receipt of the 

prospectus, which contains this and other important information that 

was provided to me if I selected the money market mutual fund as 

my Core Account Investment Vehicle. I may also obtain a prospectus 

from a UnionBanc Investment Services Financial Advisor or by calling 

1-800-634-1100. Please be sure to read the prospectus carefully 

before investing. 

a. Money Market Mutual Fund. You will promptly credit all 

proceeds from all transactions, including deposits, to my Core 

Account. If I have designated an affiliated Money Market 

Mutual Fund within which to settle transactions within my 

Portfolio Connection Brokerage Account, I acknowledge 

*Bank Deposit Sweep Program funds are FDIC-insured when they have 

been swept into a Union Bank deposit account and are SIPC-insured 

when they have been swept into a UnionBanc Investment Services 

brokerage account. Please note that FDIC and SIPC are two separate, 

unrelated insurance entities and have different types of coverage. For 

more information about FDIC coverage, please visit www.fdic.gov; and 

for more information about SIPC coverage, please visit www.sipc.org. 

13 


10/24/11 10:06 AM

eceipt of the prospectus for the designated affiliated Money 

Market Mutual Fund, and I authorize, but do not require, you to 

automatically invest in such affiliated Money Market Mutual 

Funds on a daily basis, the free credit balances in my Portfolio 

Connection Brokerage Account (such balances defined as cash 

that my be transferred without giving rise to interest charges), 

in excess of $1.00, including interest and dividend paid to me. 

All investments must meet the fund’s investment minimums. 

Money in my Core Account Investment Vehicle earns 

dividends, as described in the applicable fund’s prospectus. If, 

in the future, I have a different money market fund for my Core 

Account Investment Vehicle, these provisions still apply. 

b. Bank Deposit Sweep Program. You will promptly credit all 

proceeds from all transactions, including deposits, to my Core 

Account. If I have a Bank Deposit Sweep Program as my Core 

Account Investment Vehicle, my Core Account credits (which 

are considered cash balances awaiting reinvestment) will be 

moved each day to the Bank Deposit Sweep Program. Money in 

the Bank Deposit Sweep Program earns interest, as described in 

the applicable disclosure document, and the rate of such interest 

paid is determined by the Bank, also as indicated in the applicable 

disclosure document, and may change at any time without notice 

to you. To learn more, please refer to the Bank Deposit Sweep 

Program disclosure document. 

c. General Information. I understand that any such automatic 

investment by you shall be subject to prior payment by you, and on 

my behalf, of any margin loan balances, and any other obligation 

in my Portfolio Connection Brokerage Account, including but not 

limited to settlement of securities transactions. Amounts of less 

than $1.00 will be automatically invested weekly. 

For securities sold or purchased through you and any resulting credit 

or debit balances, I hereby authorize you to automatically settle all 

transactions through the affiliated Core Vehicle designated in the 

Portfolio Connection Account Application. In the event that I carry a 

margin account with NFS, I further authorize you to transfer from the 

designated Core Vehicle any sums necessary to maintain the required 

minimum equity in such margin accounts. In the event that the Core 

Vehicle contains insufficient available funds to cover the transaction, 

I authorize you to instruct the Bank to, and the Bank may, debit any 

of my/our savings, time, money market or other deposit accounts at 

the Bank or any such Bank accounts in which I have an interest for 

the amount of any insufficiency. My Portfolio Connection Brokerage 

Account statement details all activity in the Core Vehicle. This is 

provided in lieu of a confirmation that might otherwise be provided to 

me with respect to those transactions. 

xv. Joint Accounts 

If this is a joint account, “I” refers to all Portfolio Connection 

Brokerage Account holders, and each of the Portfolio Connection 

Brokerage Account holders jointly and severally agrees that any 

account holder has authority on behalf of the joint account to: 

●● 

Buy, sell (including short sales) and otherwise deal in stocks, 

bonds, options and other eligible securities or other investments on 

margin or otherwise; 

14 


10/24/11 10:06 AM

●● 

●● 

●● 

●● 

Receive demands, notices, confirmations, reports, statements of 

accounts and communications of every kind on behalf of the joint 

account; 

Receive money, securities and property of every kind, and dispose 

of the same on behalf of the joint account; 

Make agreements relating to any of the foregoing matters and to 

terminate, modify or waive any of the provisions of the agreement 

on behalf of the joint account; and 

Deal with Investment Services as fully and completely as if he or 

she alone were interested in this Account and without notice to the 

other account participants. 

All obligations and liabilities arising under this Agreement are joint 

and several, and may be enforced by Investment Services, the Bank 

or NFS against any or all Account holders. 

Investment Services, NFS and the Bank are authorized to follow the 

instructions of any joint Portfolio Connection Brokerage Account 

holder without notice to any other account holder in every respect 

and to deliver any or all monies, securities or other property to 

any joint account holder upon the instructions of any joint account 

holder, or to any other person upon such instructions, even if such 

delivery or payment is to that joint account holder personally and 

not to the other(s). Investment Services, NFS and the Bank will be 

under no obligation to inquire into the purpose or propriety of such 

delivery or payment and are not bound to inquire into the disposition 

or application of such delivery or payment. This authority remains in 

force until written notice to the contrary is addressed to Investment 

Services and delivered to its office. Investment Services or NFS, at 

their sole discretion and for their sole protection, may terminate 

the Portfolio Connection Brokerage Account upon receipt of such 

notice. However, Investment Services retains the right at all times 

to require written consent of all Portfolio Connection Brokerage 

Account holders prior to acting upon the instructions of any Portfolio 

Connection Brokerage Account holder. 

xvi. Power of Attorney 

If you honor a Power of Attorney, the person I designate to act for me 

is an authorized signer under this Agreement. All owners of a jointly 

held account must act together when I wish to authorize a person to 

act for me under a Power of Attorney. 

xvii. Security Interest 

Any credit balances, securities or other property in which I may have 

an interest held by NFS, Investments Services or the Bank shall be 

subject to a general lien for the discharge of my obligations to you, 

NFS or the Bank, and any you may sell, transfer or assign any such 

securities or other property to satisfy a margin deficiency or other 

obligation whether or not you have made advances with respect to 

such property. Without notice to me, such property may be carried in 

your general accounts, and all securities may be pledged, repledged, 

hypothecated or rehypothecated separately or in common with 

other securities or any other property for the sum due to you, or for 

a greater sum, and without retaining in your possession and control 

15 


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for delivery a like amount of similar securities or other property. At 

any time in your discretion, you may, without notice to me, apply 

or transfer any securities or any other property interchangeable 

between my accounts, whether individual or joint, from any of my 

accounts to any other of my accounts. 

xviii. Taxation of Account 

I am responsible for filing any and all tax returns and for paying 

the taxes on all securities and other property and income from my 

Portfolio Connection Brokerage Account. 

xix. Account Protection 

Securities in accounts carried by National Financial Services 

LLC (NFS) are protected by the Securities Investor Protection 

Corporation (SIPC) up to $500,000 (including cash claims which 

are limited to $250,000). NFS has arranged for additional insurance 

protection for cash and securities to supplement its SIPC coverage. 

Neither coverage protects against a decline in the market value of 

securities or to securities that are considered ineligible for coverage. 

I understand that an explanatory brochure of SIPC coverage is 

available upon request by contacting SIPC at 1-202-371-8300 or at 

www.sipc.org. 

xx. Dividend Reinvestment 

With this feature, all dividends paid by securities that I designate for 

reinvestment are automatically reinvested in additional shares of the 

same security. (“Dividends” here means cash dividends and capital 

gain distributions, but not cash-in-lieu payments, late ex-dividend 

payments and special dividend payments.) In designating any 

security for reinvestment, I authorize NFS to purchase shares of that 

security for my account. 

To be eligible for this feature, a security must satisfy all of the following: 

●● 

Be a closed-end fund, domestic common stock or American 

Depository Receipt (ADR) 

●● 

Be margin-eligible (as defined by NFS) 

●● 

Be listed on the New York Stock Exchange or the American Stock 

Exchange, or traded on NASDAQ 

●● 

Be held in street name by NFS (or at a securities depository on 

its behalf) 

●● 

Not be held as a short position. 

Dividends are reinvested in shares that satisfy all of the following: 

●● 

The security is eligible for dividend reinvestment 

●● 

Shares are owned on the dividend record date 

●● 

Shares are owned on the dividend payable date (or the posting 

date, for shares handled through the DTC program described 

below), even if I sell them that day 

●● 

●● 

Trade in the security has been settled on or before the record date 

The shares are designated for reinvestment as of 9:00 p.m. Eastern 

Time or 6:00 p.m. Pacific Time on the record date (or, if the record 

date is not a business day, then the last business day before the 

record date). 

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10/24/11 10:06 AM

If I designate securities on an account-wide basis for dividend 

reinvestment, any ineligible securities I own will automatically be 

designated for reinvestment if and when they become eligible. 

If I designate securities individually for dividend reinvestment, and 

want to designate a new security I am buying, I can do so when I place 

my order to buy the security; however, if I am buying through a limit 

order, I will have to reconfirm the dividend reinvestment designation at 

the end of every business week in which my order remains unfilled. 

If an issuer delays a dividend, the reinvestment will occur on the day 

the dividend is actually paid. 

Automatic dividend reinvestments often involve purchase of partial 

shares, calculated to three decimal places. Partial shares pay pro-rated 

dividends and can be sold if I sell my entire share position, and will be 

liquidated automatically in transfers and certain other situations. 

Although for dividend reinvestments my regular Portfolio Connection 

Brokerage Account Statement takes the place of a confirmation, I can 

obtain immediate information the day after the reinvestment date by 

contacting you. 

If I transfer or reregister my Portfolio Connection Brokerage Account 

with you (for example, by changing from individual to joint registration), 

I need to re-designate any securities whose dividends I want reinvested. 

At NFS’s option, NFS may buy reinvestment shares through a 

program offered by the Depository Trust Company (DTC) that offers 

a share price discount of up to 5%. To find out which securities are 

currently available through the DTC, I may contact you. I understand 

the availability of securities in this program may change without 

notice. I also understand that DTC program transactions take longer 

to process: although the transactions are effective as of the dividend 

payable date, they are generally not posted to my Account until 10 

to 15 days later. If I sell my dividend generating shares before the 

posting date, the dividend will not be reinvested. 

To remove securities from the dividend reinvestment service, I will 

notify you in writing or by phone during business hours. You must 

receive my notification by 8:00 p.m. Eastern Time or 5:00 p.m. Pacific 

Time, one business day before the record date (or, if the record date is 

not a business day, then two business days before the record date). 

I acknowledge that dividend reinvestment does not assure a profit on 

my investments and does not protect against loss in declining markets. 

xxii. Payment for Order Flow 

Investment Services or NFS transmits customer orders for execution 

to various exchanges or market centers based on a number of factors. 

These include: size of order, trading characteristics of the security, 

favorable execution prices (including the opportunity for price 

17 


10/24/11 10:06 AM

improvement), access to reliable market data, availability of efficient 

automated transaction processing and reduced execution costs 

through price concessions for the market centers. Certain market 

centers may execute orders at prices superior to the publicly quoted 

market in accordance with their rules or practices. I understand that 

Investment Services’ and NFS’s order-routing policies, taking into 

consideration all the factors listed above, are designed to result in 

favorable transaction processing for me. While I may specify that an 

order be directed to a particular market center for execution, I agree 

that Investment Services and NFS may, without incurring liability to 

me, transmit my orders for execution to an exchange or market center 

other than the one I specify. I acknowledge that orders placed through 

any telephone, electronic or online trading systems cannot specify a 

particular market center for execution. 

Investment Services and/or NFS may receive remuneration, 

compensation or other consideration for directing customer orders 

for equity securities to particular broker-dealers or market centers 

for execution. Such considerations may take the form of financial 

credits, monetary payments or reciprocal business. 

B. Account Features 

i. Core Account Investment Vehicles for Sweeps 

UnionBanc Investment Services LLC provides the ability for me to 

automatically “sweep” the cash balances awaiting investment in my 

brokerage account into a core account investment vehicle while I 

decide how those funds should be invested. I may choose to sweep 

the cash balances in my brokerage accounts into either an interestbearing 

FDIC-insured deposit account at Union Bank, N.A., or the 

HighMark California Tax-Free Money Market Fund. The available 

cash from securities transactions, dividend and interest payments, 

and other activities in my brokerage account will be automatically 

deposited or “swept” into this cash management investment vehicle. 

If I elect to participate in the sweep program, I will review the Bank 

Deposit Sweep Program All About and Disclosure Document for the 

BDSP sweep vehicle, especially as to eligibility and applicable limits 

of the Federal Deposit Insurance Corporation (“FDIC”) insurance 

coverage and Securities Investor Protection Corporation (“SIPC”) 

fund protection. If I elect to participate in the sweep program with 

the HighMark California Tax-Free Money Market Fund as my sweep 

vehicle, I will review the prospectus. I acknowledge receipt of the 

BDSP disclosure or HighMark prospectus as applicable. 

This sweep program should not be viewed as a long-term investment 

option. If I desire, as part of an investment strategy or otherwise, to 

maintain a cash position in my account for other than a short period 

of time and/or am seeking the highest yields currently available 

in the market for my cash balances, I will contact my Investment 

Representative to discuss other investment options that may be available 

outside of the sweep program that may be better suited to my goals. 

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ii. Online Investing and Telephone Investing 

Unless I request otherwise in writing, I hereby authorize and request 

that Investment Services, NFS, and the Bank provide me with access 

to and use of one or more of your electronic investment services 

(Telephone Investing and Online Investing, etc.). I agree that I will 

hold Investment Services harmless for any loss, liability, cost or 

expense for acting on my instructions received via authorized means 

pertaining to securities or other permissible properties. 

a. Disclaimers. Although investment and market data information 

available through these services is obtained from independent and 

reliable sources, Investment Services and NFS neither endorse this 

information nor guarantee its accuracy, non-infringement, security, 

completeness, timeliness or sequence, nor give any express or 

implied warranties, including warranties of merchantability or 

fitness, for a particular use. Investment Services and NFS neither 

guarantee investment performance, suitability or profitability 

of a security or investment, nor provide investment advice or 

recommendations, nor provide legal, tax or accounting advice. 

b. Limitations of Liabilities. I agree that Investment Services, NFS 

and any other disseminating party shall not be liable, and agree 

to indemnify and hold such parties harmless, for any loss, 

damage or expense for acting on my instruction or attributable 

to any inaccuracy, error, delay in, transmission or omission of, 

nonperformance, interruption or unavailability of any information 

due either to any act or omission not constituting gross 

negligence or willful misconduct by such parties or to any “force 

majeure” (i.e., flood, weather conditions, earthquake, or other act 

of God, fire, war, insurrection, riot, labor dispute, accident, action 

of government, communications, power failure, or equipment 

or software malfunction) or to any other cause beyond the 

reasonable control of such parties. Investment Services, NFS and 

any other disseminating party shall not be liable for any indirect, 

incidental or consequential damages, including lost profits or 

trading losses, arising out of reliance upon or the inability to 

access or use these services or any information as described in 

the preceding. 

This includes, for example, any action that is done in accordance 

with the procedures described in this agreement or an applicable 

mutual fund or securities prospectus or Bank Deposit Sweep 

Program disclosure document or other investment description. 

Although all entities that provide services to your account 

strive to ensure the quality and reliability of those services, 

neither Investment Services nor NFS can be responsible for the 

availability, accuracy, timeliness, completeness or security of any 

service related to your account. 

c. Confidentiality. I understand that I am responsible for 

maintaining the confidentiality of my User Identification (ID) 

number and Personal Identification Number (PIN) and other 

account information. I agree to allow only those persons or 

entities authorized by me, and whose names I have provided 

to you, to access or use my account for any purpose, including 

order entry, inquiry or for quotes. I agree to immediately notify 

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Investment Services if there is unauthorized use of my User ID, 

PIN or other security data or if there is a discrepancy in the 

account balance, stock position or order status or any other type 

of suspicious or unexplained occurrence relating to electronic 

services in my account. 

I agree that my use of electronic services may involve the 

transmission of personal financial information, including the identity, 

number and net dollar price of shares traded, and that neither 

Investment Services nor NFS guarantees the security of electronic 

transmission of this and other information over the Internet. I 

consent to the electronic transmission of such information through 

these services. Due to the inherently limited security mechanisms 

for the Internet, neither Investment Services nor NFS guarantees 

the privacy, security or authenticity of electronic transmissions. 

If I have already been assigned a User Identification (ID) number 

for another account or accounts with Investment Services, or am 

registering multiple accounts, I may, but am not required to, have 

different User IDs for each account. All users accessing via the 

same User ID are able to trade and obtain account information 

equally and from any and all accounts linked to that User ID. 

d. Re-dissemination. I agree not to cause or permit any information 

to be published, broadcast, retransmitted, reproduced, 

professionally or commercially exploited, or otherwise redisseminated 

or to be used to create any derivative works, 

including databases. 

e. Trading. Investments placed through electronic services will be 

settled in the same manner as currently established for nonelectronic 

transactions. I understand that orders entered through 

electronic services may be subject to Investment Services’ 

review, approval and release. Receiving an order reference 

number online or an order number on the phone is not an 

indication of an approved order. An approved order will be given 

the status “Open” in the Order Status/Open Orders section 

of the electronic services system. In the event that Investment 

Services does not approve the order, Investment Services 

may attempt to contact me as soon as possible at my primary 

telephone number. Investment Services and NFS cannot be held 

responsible for any lost profits or increased losses that may 

result from their failure to accept my order through electronic 

services. Trades may experience a short delay prior to release to 

the market. Investment Services and NFS will not be held liable 

for any lost profits or increased losses due to such delays. Trades 

placed through electronic services while the market is closed will 

be released to the market when it reopens. 

f. Termination. Investment Services reserves the right to terminate 

my electronic services access if I do not log on to the electronic 

services secured area for 90 consecutive days. 

iii. Payment of Checks and Other Transactions 

Shares of the affiliated Money Market Mutual Fund will be redeemed 

at their net asset value. I agree that my shares may be redeemed 

automatically to satisfy any debit balance in my Portfolio Connection 

Brokerage Account, checks, Debit Card transactions, electronic 

20 


10/24/11 10:06 AM

funds transfers, overdrafts and other authorized debit items. I may 

also request, via telephone, to redeem shares of my affiliated Money 

Market Mutual Fund and to transfer these funds to a bank account 

which I designate. I may elect to send such funds by means of the 

Federal Reserve Wire System, an automated clearinghouse system, 

or through another payment system. Except as otherwise limited 

by federal or state law, I ratify such actions and agree that neither 

you nor a fund’s transfer agent will be liable for any loss, liability, 

cost or expense for (i) any action made in accordance with the 

procedures set forth herein or in the applicable fund prospectus, or 

(ii) acting upon instructions with respect to money transfers given 

by any person you or it believes to be genuine, provided the funds are 

transferred to the bank account designated by me. 

All debit items, including drafts, checks, Debit Card transactions, 

investment transactions and other items and transactions will be 

accumulated daily and paid by NFS to the extent sufficient funds 

are available. I agree to maintain sufficient assets in my selected 

affiliated Core Account Investment Vehicle to satisfy all obligations 

as they become due. I understand that payment of any debit item 

may be made first from my Core Account Investment Vehicle 

balance available that day (defined as cash available to me on 

demand without giving rise to margin interest charges), and second, 

when I have no remaining cash balance from any available margin 

loan value of my marginable securities. I understand that in the event 

margin credit is extended by NFS, interest will accrue beginning on 

the date credit is extended, and is defined in and subject to the terms 

of a separate Margin Account Agreement. 

Payments for debit items may be made on my behalf in the following 

order as they become due: 

●● 

●● 

●● 

First, securities transactions (including margin calls) and other 

account fees; 

Second, Debit Card transactions; and 

Third, any Portfolio Connection Brokerage Account checks. 

Neither Investment Services, nor NFS, nor the Bank will be responsible 

for the dishonor of any transaction due to an insufficient available 

balance. I understand other transactions that I initiate or that I have 

consented to may reduce my available balance. I also understand 

that due to the transmission time of certain data between financial 

institutions, Debit Card authorizations may be limited even if funds 

were contributed or released to the Core Account Investment 

Vehicle the previous business day. 

If any liability arises in my Portfolio Connection Brokerage Account 

which remains unpaid after payment is requested of me, NFS and 

Investment Services will have the right to sell, liquidate, transfer, 

redeem or otherwise apply any asset, money, property, security or 

shares which either of you now or later have an interest in for the 

purpose of satisfying that obligation. No further demand or notice 

shall be required prior to taking such an action. 

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iv. Check-Writing Privileges 

Checks drawn against my Portfolio Connection Brokerage Account 

are payable through the Bank. I will be charged fees for events or 

services such as stop payment requests, dishonored checks, copies 

of checks or excessive check-writing activity, as set forth in the 

Portfolio Connection Brokerage Account Fee Schedule. My checks may be 

dishonored if the available balance in my account is insufficient to 

honor a check in full. 

v. Margin Orders/Loans and Options (Requires Separate Application) 

I agree that in giving orders to sell, all “short” sale orders will be 

designated as “short” by me and all “long” sale orders will be 

designated as “long” by me, and that the designation of a sell order 

as “long” is a representation on my part that I own the security and, 

if the security is not in your possession, I will deliver it to you on or 

before the settlement date. 

I understand and agree that margin loans, if any, provided to me 

will be made by NFS and not by Investment Services or the Bank 

and that Investment Services may charge me for any sums due 

Investment Services or NFS in connection with my margin/option 

account. I will not request that any transaction in options be effected 

for my Account unless each request is in compliance with the 

Investment Services Option Agreement and compliance program. 

Any margin credit extended by NFS will be in accordance with NFS’s 

then prevailing margin agreement and margin credit policies. By 

requesting margin credit, I acknowledge that I have read and agree 

to such agreement and that I will comply with all requirements which 

NFS may impose with respect to such loans. 

vi. Transfer on Death (TOD) Designation 

For individuals in certain jurisdictions, the Uniform TOD Security 

Registration Act permits my Portfolio Connection Brokerage Account 

to be registered under a “Transfer on Death” ownership designation 

that will cause my Account to pass to named beneficiary(ies) on 

my death or the death of the survivor of multiple owners. As a 

consequence, the Act permits the non-probate transfer of securities 

that would presumptively supersede the terms of my Will, revocable 

trust or other estate planning dispositive arrangements. I can 

change my beneficiary designation at any time by filling out a new 

Beneficiary Designation form. You will rely on the latest Beneficiary 

Designation in your possession. I acknowledge and agree that 

I cannot change my beneficiary by will, codicil or trust, or other 

testamentary document. If you consider it necessary, you may 

request additional documents from any beneficiaries before you 

transfer assets to them from my account. I understand that although 

NFS may hold in a nominee name securities that are in a TOD 

account, NFS has no responsibility to determine the registration or 

ownership of the account as a whole, either before or after my death. 

I understand that neither Investment Services nor NFS will advise me on 

whether TOD registration is appropriate for my tax or estate planning 

purposes. I understand that registering a securities account in TOD form 

is legal only in certain states, so it is important to consult my own legal 

or tax advisor before establishing or revoking a TOD registration. 

22 


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I acknowledge that Per Stirpes designation rules may vary from state 

to state. It is my responsibility to consult with an estate planning attorney 

to determine whether this designation is available and/or appropriate. 

By checking the Per Stirpes box on the Portfolio Connection New 

Accounts Application and completing the required TOD form, I am 

agreeing that if that beneficiary predeceases me, his or her share of 

the account will pass to his or her lineal descendants per stirpes as 

determined by laws of the predeceased beneficiary’s domicile that 

govern inheritance by descendants of an intestate. 

If more than one person is named and no share percentages are 

indicated, payment will be made in equal shares to my beneficiaries 

who survive me. If a percentage is indicated for a primary beneficiary 

who does not survive me, and if I have not checked the Per Stirpes 

box, the percentage of that beneficiary’s designated share will be 

divided equally among the surviving primary beneficiaries. If there is 

no primary beneficiary living at the time of my death, I hereby specify 

that the balance is to be distributed to the contingent beneficiary or 

beneficiaries listed. 

For information regarding your Portfolio Connection Cash 

Management Features and Services, please refer to the 

All About Personal Accounts & Services Disclosure and Agreement. 

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10/24/11 10:06 AM

Portfolio Connection Brokerage Account - Union Bank

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