Upgrade Your Vanguard Brokerage Account to a Vanguardadvantage

What’s inside:
Commission and
Fee Schedules
Account upgrade
application
Postage-paid
envelope
Initial margin risk
disclosure statement
Upgrade to a
VanguardAdvantage Account
For upgrading a Vanguard Brokerage nonretirement account to a
VanguardAdvantage ® Account
VanguardAdvantage
disclosure booklet Thank you for your interest in the VanguardAdvantage Account.
This account provides all the features of your Vanguard Brokerage account
plus a cash management service that gives you convenient access to funds in
your account. You’ll be able to invest, save, access cash, and pay bills all with
this one account. You can use your VanguardAdvantage Account to consolidate
assets, making it easier to monitor your money while reducing the number of
statements you receive and the number of websites you have to visit.
It’s easy to get started
This kit has everything you need to upgrade to a VanguardAdvantage Account.
1. Review the enclosed materials.
2. Complete the Brokerage Account Upgrade to VanguardAdvantage Account
Application.
3. Mail your Brokerage Account Upgrade to VanguardAdvantage Account
Application to us in the attached postage-paid envelope.
4. Expect your VanguardAdvantage checkbook and your Visa ® Gold debit card
(if you selected this option) once your account is approved and opened.

Make managing your money easier
You can meet your investment and cash management needs in one place with your VanguardAdvantage
Account. You’ll continue to enjoy all the benefits of a Vanguard Brokerage account, including a wide choice
of investments and a low-cost money market settlement account that delivers competitive returns for your
cash balances.
In addition, you’ll get cash management features that make it more convenient to manage your finances
and get access to your money whenever you choose.
With your VanguardAdvantage Account
you receive:
Account access at ATMs worldwide with a Visa
Gold debit card. All transactions from a PNC
Bank-affiliated ATM are free.
Unlimited, no-minimum checkwriting. Write
as many checks as you need for any amount
by drawing on funds in your money market
settlement account.
Low-interest-rate overdraft protection through a
margin account (subject to approval by Vanguard
Brokerage Services ® ).
Online bill payment capability using our secure
website. You can schedule payments months in
advance for added convenience.
Optional direct deposit to save you time and
keep your investment program on track. You can
arrange direct deposit of recurring payments, such
as salary, Social Security, and pension checks.
Questions?
If you need assistance or have questions, call
our brokerage associates at 800-992-8327 on
business days from 8 a.m. to 10 p.m. or on Saturdays
from 9 a.m to 4 p.m., Eastern time. Or, you can get
many of your questions answered at any time by
visiting www.vanguard.com.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing
in such a fund.

Vanguard Brokerage Services
Commission and Fee Schedules
As of January 2, 2012
Stock and exchange-traded fund (ETF) commissions
Assets invested in
Vanguard funds and Vanguard ETFs Vanguard ETFs 1 Stocks and non-Vanguard ETFs
Less than $50,000 Free $7: first 25 trades 3
(Standard) 2 $20: subsequent trades
$50,000–$500,000 Free All trades: $7
(Voyager Services ® )
$500,000–$1 million Free All trades: $2
(Voyager Select Services ® )
$1 million and above Free Free: first 25 trades 3
(Flagship Services) $2: subsequent trades
1 If you buy and sell the same Vanguard ETF in a Vanguard Brokerage account more than 25 times in a 12-month period, you may be restricted from purchasing that Vanguard
ETF through your Vanguard Brokerage account for 60 days.
2 A $20 account service fee is charged annually. The fee is waived for Voyager, Voyager Select, and Flagship clients.
3 The reduced commission or commission-free transactions will apply to the first 25 transactions in each calendar year to any combination of stocks and non-Vanguard ETFs.
The number of these transactions is limited to 25 per client, as identified by the primary Social Security number on the account. Vanguard Brokerage reserves the right to end
these offers at any time.
You may receive a discount from standard commissions and fees if you are an enrolled client of Vanguard Voyager
Services ®, Vanguard Voyager Select Services ®, or Vanguard Flagship Services ®. Other discounts and fee waivers from
standard commissions may also be available. A separate commission schedule may apply to certain Vanguard Flagship
Services clients.
Eligibility is based on total household assets held at Vanguard, with a minimum of $50,000 to qualify for Vanguard Voyager Services,
$500,000 for Vanguard Voyager Select Services, and $1 million for Vanguard Flagship Services. We determine eligibility by
aggregating assets of all eligible accounts held by the investor and his or her immediate family members who reside at the same
address, including investments in Vanguard mutual funds, Vanguard ETFs ®, certain annuities through Vanguard, The Vanguard 529
Plan, and certain small-business accounts. Assets in employer-sponsored retirement plans for which Vanguard provides recordkeeping
services may be included in determining eligibility if the investor also has a personal account holding Vanguard mutual funds.
Note that assets held in a Vanguard Brokerage Services ® account (other than Vanguard ETFs) aren’t included when determining a
household’s eligibility.
For further information, call Vanguard Brokerage Services at 800-992-8327 on business days from 8 a.m. to 10 p.m. or on Saturdays
from 9 a.m. to 4 p.m., Eastern time, or visit us at vanguard.com/brokerage.
Notes: We can’t accept written instructions for trades. A separate commission is charged for each security bought or sold. Orders
that execute over multiple days are charged separate commissions. In addition, a separate commission is charged for each order
placed for the same security on the same side of the market (buying or selling) on the same day. Orders that are changed by the
client and executed in multiple trades on the same day are charged separate commissions. These commission and fee schedules
are subject to change.
1 of 6

Options
Standard
Voyager Select and
Voyager Services Flagship Services
$20 + $1 per options contract4 $7+ $1 per options contract4 4, 5
$2+ $1 per options contract
4 For Standard Services, option exercises and assignments resulting in a stock trade will be subject to a $20 + $.01 per-share commission. For Voyager Services, option
exercises and assignments resulting in a stock trade will be subject to a $7 + $.01 per-share commission. For Voyager Select and Flagship Services, option exercises and
assignments resulting in a stock trade will be subject to a $2 + $.01 per-share commission. All option exercises and assignments resulting in a cash settlement are subject to
a $2 + $1 per-contract commission.
5 For Flagship clients, options transactions are included in the offer of 25 commission-free transactions described in footnote 3. Subsequent transactions are at the rates shown
in the options fee schedule.
Bonds and CDs
Vanguard Brokerage Services may act as an agent, executing your order at cost plus a commission, or as a principal, adding
markups to purchase prices or subtracting markdowns from sales prices. 6 When acting as a principal for a primary market issue,
Vanguard Brokerage generally receives a fee concession from the issuer.
Security type New issues Existing issues
U.S. Treasury securities Commission-free Commission-free
U.S. government agency Commission-free 7 Standard and Voyager Services: $2 per $1,000
securities, corporate bonds, face amount ($250 maximum)
and certificates of deposit Voyager Select and Flagship Services: $1 per $1,000
face amount ($250 maximum)
Selling CDs prior to maturity: Commission-free
Municipal bonds $50 commission if a fee concession Standard and Voyager Services: $2 per $1,000
isn’t available 7 face amount ($250 maximum)
Voyager Select and Flagship Services: $1 per $1,000
face amount ($250 maximum)
Mortgage-backed securities $50 per transaction $50 per transaction
and commercial paper
Unit investment trusts (UITs) Not available Selling UITs: $35 per transaction
6 Bond and CD prices are available at vanguard.com and are price indications only. Online prices for all secondary-market bonds and CDs are before commissions.
7 Minimum purchase $10,000, subject to dealer minimum.
2 of 6

Mutual funds from other companies: FundAccess ®
Our FundAccess program gives you entry to thousands of mutual funds offered by hundreds of fund companies.
We provide funds with and without transaction fees, and we also offer load funds (see next page).
No-transaction-fee Transaction fee None
(NTF) funds
Minimum initial For most funds: $3,000 for nonretirement accounts and $1,000
investment for IRAs 9
Minimum additional $1,000 for any account type 9
investment
NTF redemption fee 1% of the proceeds ($50 minimum, $250 maximum) for shares
held less than 180 days. The holding period begins on settlement
day—usually the next business day, or three business days after the
trade date. Whether the NTF redemption fee applies is determined
on the trade date of the redemption. The fee is waived for shares
transferred from another firm or financial institution.
Dollar-cost-averaging No fee. Minimum purchase $100; minimum two transactions
transactions
Transaction-fee Transaction fee Standard: $35
(TF) funds Voyager and Voyager Select: $20
Flagship: $8 8
Initial and additional $1,000 9
investments
Fees apply per trade—purchases, sales, or exchanges—
regardless of order size. Purchase fee is added to
order cost. Sales fee is subtracted from order proceeds.
If you exchange shares of a fund for another fund
in the same fund family and share class, the transaction
fee will be paid from your money market settlement fund.
Dollar-cost-averaging $3 per transaction; minimum purchase $100;
transactions minimum two transactions
8 For Flagship clients, TF fund transactions are included in the offer of 25 commission-free transactions described in footnote 3. Subsequent transactions are at the
rates shown in the fee schedule for TF funds above.
9 NTF, TF, and load funds are subject to the greater of the FundAccess minimum investment requirements or those identified in the fund’s prospectus. Vanguard
Brokerage Services may negotiate fund minimum investment requirements that are greater than or less than the program standards noted above.
3 of 6

FundAccess
(continued)
Load funds
Class A shares Front-end load (purchase fee) Varies by fund or fund family and may be as high
as 5.75%.
Discounts (breakpoints) May be available if you make a large purchase, already
hold other mutual funds offered by the same fund
family (individually or combined with a spouse or other
qualifying person), or commit to regularly purchasing
the fund’s shares.
Class B shares Back-end load (redemption fee) Decreases to zero over a period of years. (Also known
as a contingent deferred sales charge.)
Class C shares Back-end load (redemption fee) Smaller than a Class B redemption fee, it decreases
to zero after one year. (Also known as a contingent
deferred sales charge.)
All share classes Sales charges and minimum purchases The schedule for a specific load fund may vary, perhaps
significantly, from the general description shown here.
Check the fund’s prospectus for details. Initial and
additional investments $1,000. 9
Fees Vanguard Brokerage doesn’t charge additional fees
for a purchase, sale, or exchange of any load fund
offered through FundAccess.
Dollar-cost-averaging transactions Vanguard Brokerage doesn’t charge a fee, but sales
charges imposed by the fund still apply. Minimum
transaction $100; minimum two transactions.
9 NTF, TF, and load funds are subject to the greater of the FundAccess minimum investment requirements or those identified in the fund’s prospectus. Vanguard Brokerage
Services may negotiate fund minimum investment requirements that are greater than or less than the program standards noted above.
Note: Individual fund families may impose additional minimums, fees, or charges. For complete information, read the fund prospectus carefully before investing. The offering
conditions of the various funds included in the FundAccess program are subject to change at any time, including, but not limited to, fee classification (NTF, TF, or load) and
transfer eligibility.
4 of 6

Fees for other services
VanguardAdvantage ® account Offered to clients of Voyager Select ($30, charged annually) and Flagship (free).
Insufficient funds: $20. Stop payment: $15. Checkbook reorder: Voyager Select, $9.95; Flagship, free.
VanguardAdvantage Billpay ® service: Voyager Select, $4.95 per month; Flagship, free.
Possible fees at automated teller machines not affiliated with PNC Bank.
Foreign securities $50 processing fee for non-DTC eligible securities (not applicable to American Depositary Receipts) plus
transactions commission. If a trade executes over multiple days, the commission will be charged for each
day on which an execution occurs. Additional fees may apply for trades executed directly on local markets.
American Depositary Receipt Banks that custody ADRs are permitted to charge ADR holders certain fees, as detailed in the ADR
(ADR) fees prospectuses. “Pass-through” ADR fees are collected from Vanguard Brokerage Services by the
Depository Trust Company (DTC) and will be automatically deducted from your brokerage account
and shown on your account statement. Other fees, including dividend processing fees, may be
withheld by the DTC from the amount paid by the issuer.
Wire transfers Vanguard doesn’t charge a fee to wire money to your bank. However, your bank may charge for
receiving wires from your brokerage account or settlement fund.
Miscellaneous fees Other securities transaction or maintenance fees may apply. Call us for additional information.
5 of 6

For more information about Vanguard funds
and mutual funds from other fund companies
offered through Vanguard Brokerage Services,
visit vanguard.com or call 800-992-8327 to
obtain a prospectus. Investment objectives, risks,
charges, expenses, and other important information
are contained in the prospectus; read and consider
it carefully before investing.
You must buy and sell Vanguard ETF Shares
through a broker like Vanguard Brokerage
Services (we offer them commission-free),
or through another broker (which may incur
commissions). See the Vanguard Brokerage
Services Commission and Fee Schedules on
vanguard.com for limits. Vanguard ETFs are
not redeemable directly with an applicant fund
other than in creation unit aggregations. Like
stocks, ETFs are subject to market volatility, so
you could pay more than net asset value when
buying and receive less than net asset value
when selling any ETF.
All investments are subject to risk.
Investments in bond funds are subject to interest rate,
credit, and inflation risk.
Options are a leveraged investment and are
not suitable for every investor. Options involve
risk, including the possibility that you could lose
more money than you invest. Prior to buying
or selling options, you must receive a copy of
Characteristics and Risks of Standardized Options
issued by the OCC. A copy of this booklet is
available at theocc.com. It may also be obtained
from your broker, any exchange on which options
are traded, or by contacting The Options Clearing
Corporation, One North Wacker Dr., Suite 500,
Chicago, IL 60606 (888-678-4667 or 888-OPTIONS).
The booklet contains information on options
issued by the OCC. It is intended for educational
purposes. No statement in the booklet should
be construed as a recommendation to buy or
sell a security or to provide investment advice.
For further assistance, please call the Options
Industry Council (“OIC”) Helpline at 888-OPTIONS
or view the website at 888options.com. The OIC
can provide you with balanced options education
and tools to assist you with your options
questions and trading.
Vanguard Brokerage Services is a division of Vanguard
Marketing Corporation, member FINRA.
© 2011
The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation,
Distributor of the Vanguard Funds.
CMSCHP 122011
6 of 6

Form VAACFPC
Brokerage Account Upgrade to
VanguardAdvantage
Account Application
Effective May 22, 2009
Use this application to upgrade an existing Vanguard Brokerage
nonretirement account to a VanguardAdvantage ® account.
See the most recent Vanguard Brokerage Services ® Commission
and Fee Schedules for any fees that may apply.
Print in capital letters and use black ink.
1. Account Owner Information
Provide the full,
legal name.
>
Vanguard Brokerage Nonretirement Account Number
Name of Owner, Minor, or Trustee
Name first, middle initial, last
Questions?
Call 800-992-8327.
If you need other applications or
forms or want to complete this
application online, visit our website
at www.vanguard.com/
serviceforms.
Last Four Digits of Social Security Number or Individual Taxpayer ID Number Zip Code
Name of Joint Account Owner, Custodian, or Co-Trustee first, middle initial, last
1 of 4

Form VAACFPC
2. VanguardAdvantage Account Options
Check the option(s) you want.
■ VanguardAdvantage Visa ® Gold Debit Card. Use of the card is subject to the terms
and conditions of the VanguardAdvantage Account Services Agreement in the enclosed
VanguardAdvantage Disclosures Booklet.
■ VanguardAdvantage Billpay ® . This option allows you to pay bills online through our
secure website, as well as receive bills electronically. Use of the Billpay service and fees
associated with it are subject to the terms and conditions of the VanguardAdvantage
Account Services Agreement.
■ Overdraft protection through a margin account (available only if you are approved for
margin trading and are not a minor).
Important: Do not check this box if you have already been approved for margin trading in
the Vanguard Brokerage account you are upgrading. You will receive overdraft protection
automatically.
This option is available for transactions made by check, by Visa Gold debit card, and
through Billpay. The amount of your overdraft protection depends on the market value
of the eligible securities in your account.
If the market value of the securities in your margin account declines, or the check, debit
card, or Billpay transactions in your account result in an overdraft situation, you may be
required to deposit more money or securities. If you do not do so, Vanguard Brokerage
may be required to sell all or a portion of your assets.
By checking this box, you indicate that you understand and have carefully considered the
risks associated with margin, and recognize that overdraft protection is subject to the
terms and conditions listed in the Vanguard Brokerage Margin Account Agreement in the
enclosed VanguardAdvantage Disclosures Booklet.
Liquid net worth cash, securities, etc.
$
Total net worth excluding residence
$
Approximate annual income*
$
Number of dependents excluding account owners
*Trustees should indicate the total of the trust’s annual income and any nontrust income.
2 of 4

Form VAACFPC
3. Authorization of All Account Owners
Sign here.
All those listed in
Section 1 (except
minors) must sign
exactly as the
account is
registered.
If additional
signatures are
required, attach an
additional sheet.
If you do not have
a postage-paid
envelope, mail to:
For registered or
certified mail, or
overnight delivery,
mail to:
>
>
>
Read the points in this section carefully, and sign below exactly as listed in Section 1.
By signing this Brokerage Account Upgrade to VanguardAdvantage Account Application Agreement
(Application Agreement), You acknowledge that:
VanguardAdvantage Account Services Agreement
You consent and agree to be bound by all terms and conditions of the VanguardAdvantage
Account Services Agreement in the Disclosures Booklet, and acknowledge receipt of a copy of
such agreement. You acknowledge that Vanguard reserves the right to revoke checkwriting and
debit card privileges at any time without prior notice.
You have read and accept the most recent Vanguard Brokerage Services Commission and Fee
Schedules, which You agree may be changed by Vanguard Brokerage from time to time.
VanguardAdvantage Checkwriting Privileges
You acknowledge that the VanguardAdvantage account allows You to write checks (subject to
the conditions listed in the VanguardAdvantage Account Services Agreement) to redeem any
amount of Your available balance. You further acknowledge that Your name and address will
appear on Your checks exactly as they appear on Your VanguardAdvantage account registration,
and that Your check range will begin with number 101.
You understand that VanguardAdvantage checks will replace any existing checks for Your money
market settlement account. Once You receive Your VanguardAdvantage checkbook, You will
destroy any existing checks.
Note: Only one signature is required on the checks—even if Your VanguardAdvantage account is set
up to require more than one signature. See Section 5 of the VanguardAdvantage Account Services
Agreement for more details.
Margin Agreement
Important: This applies to account owners who have applied for overdraft protection through margin
on their accounts.
1. You are applying for authorization to borrow money from Vanguard Brokerage Services using Your
assets as collateral. By signing this Account Application, You acknowledge that You have received
and read a copy of the Vanguard Brokerage Margin Account Agreement (Margin Agreement), Margin
Disclosure of Credit Terms and Policies, and the Initial Margin Risk Disclosure Statement. Please
read all of these enclosed documents carefully.
2. You acknowledge receiving a copy of the Margin Agreement. The Margin Agreement
contains a predispute arbitration clause highlighted in sections 9 and 10 on page 2.
By signing this Account Application, You agree to be bound by the terms of the
Margin Agreement.
Account Owner’s Signature Date mm/dd/yyyy
Joint Account Owner’s Signature Date mm/dd/yyyy
Mailing Information
Mail your completed form and any attached information in the enclosed postage-paid envelope.
Important: Return only pages 1–3 of this form.
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
Vanguard Brokerage Services
455 Devon Park Drive
Wayne, PA 19087-1815
3 of 4

Form VAACFPC
How to deposit stock certificates
If you are depositing stock certificates into your Vanguard
Brokerage account, endorse them as shown below and
make a copy of the endorsed certificates for your records.
Send us the endorsed certificates and account application
by overnight courier, or by registered or certified mail, with
return receipt requested. (Do not include the certificates in
the enclosed postage-paid envelope.)
Where to send certificates
The securities should be endorsed to Vanguard Brokerage
Services. Of course, you remain the beneficial (actual) owner.
To prevent delay or loss, send the endorsed certificates to:
Vanguard Brokerage Services
455 Devon Park Drive
Wayne, PA 19087-1815
If any name on a stock certificate differs in any way from
the name or names on your brokerage account—for example,
John Doe is transferring stock in his name to a jointly owned
brokerage account in the names of John and Mary Doe—you
will need to include a letter of instruction with this form. In
addition, both the letter of instruction and the certificates
must be signed by all parties in the presence of an authorized
member of the Medallion signature guarantee program, which
is described at right.
Certificate Endorsement Instructions
Letter of instruction
The letter of instruction tells us to deposit the certificates
in your brokerage account. The letter must include the
following:
A statement such as the following: “I [we] understand that
I [we] will be relinquishing title and may give up
some or all ownership and rights.”
The name of the corporation, the security’s CUSIP number
(which is a unique identifier of a security), the number of
shares as listed on the certificate, and the certificate number.
The number of the account into which the stock will be
deposited, if you already have an account. (Write it in the
upper right corner of each certificate.) If you are opening
a new account, we will deposit your stock in the account
once it has been approved.
Medallion signature guarantees
The letter of instruction and the certificates must be signed in
the presence of an authorized member of a bank, brokerage
firm, or other acceptable financial institution that participates
in the Medallion signature guarantee program. A Medallion
signature guarantee certifies that signatures are genuine. A
notary public cannot provide a signature guarantee.
To avoid processing delays, sign (endorse) the certificates
on the back of each certificate exactly as the name or names
appear on the face of the certificate.
For Value Received _________________________________
[Leave this space blank.]
hereby sell, assign, and transfer unto
SAMPLE
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
[Leave this space blank.]
PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE
[Leave this space blank.]
[Leave this space blank.]
shares of the common stock represented by the within Certificate and do hereby irrevocably
constitute and appoint
1 [Fill in “Vanguard Brokerage Services”]
Attorney to transfer the said stock on the books of the within-named Corporation
with full power of substitution in the premises.
Dated
2 [Fill in current date.]
Signature
3 [Sign your name exactly as it appears on the face of the
certificate. All owners must sign.]
Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, member FINRA and SIPC.
4
[Record your Vanguard Brokerage account number (if known) on
the front of the certificate, in the upper right corner.]
© 2009
The Vanguard Group, Inc.
All rights reserved.
VAACFPC 062011
4 of 4

Vanguard Brokerage Margin Account Agreement
Effective December 2, 2011
When You buy securities on margin, or enter into short sales, You are
borrowing money or securities from Vanguard Brokerage Services®, a
division of Vanguard Marketing Corporation, member FINRA and SIPC, for
part of Your transactions. All Securities and Other Property in Your Margin
Account (Account) are pledged as collateral to secure this loan. Margin
transactions are riskier and involve the possibility of greater loss than
transactions in which You are not borrowing money. If the value of Your
Securities and Other Property declines, You may be required to deposit
more assets (a “margin call”) to secure Your loan or Your Securities and
Other Property may be sold to pay down or pay off Your loan without prior
notice and at a loss or at lower prices than under other circumstances.
You agree to carefully consider Your own financial condition, tolerance for risk
and investment objectives, as well as market conditions, before You decide to
use margin credit or short account features. By applying for a margin account
and/or placing an order on margin, You acknowledge that You have carefully
considered all of these factors, along with the terms of this Vanguard
Brokerage Margin Account Agreement (Margin Agreement), and have decided
that margin financing is appropriate for You. You also acknowledge that
Vanguard Brokerage Services may, in its discretion, transfer Securities and
Other Property held in Your other accounts with Us, including Your cash
account, to Your Margin Account, and You understand that all transactions
executed through and all Securities and Other Property purchased or
deposited with Vanguard Brokerage Services will be recorded in the Margin
Account. In addition, You acknowledge that purchases of open-end mutual
funds and Vanguard ETFs ® will settle in Your cash account and after thirty
days be journaled into Your Account. All Securities and Other Property now or
hereafter held in this Account may be pledged, repledged, or otherwise used.
In consideration of Our accepting Your orders to trade on margin within Your
Account, You agree that the following terms and conditions apply to Your
Account, in addition to the other terms and conditions contained in the
Vanguard Brokerage Account Agreement (Agreement). The Margin
Agreement is part of the Agreement. Unless otherwise defined in the Margin
Agreement, defined terms have the same meaning as in the Agreement. In
the event any provision of the Margin Agreement conflicts or is inconsistent
with any provision of the Agreement, the provisions of the Margin Agreement
will control for matters or services related to Your Account.
1. Payment for Transactions
You agree that You are responsible for paying for all transactions You
make and all authorized transactions in Your Account. When You purchase
securities on margin, You agree to deposit the required initial equity by the
settlement date and to maintain Your equity at the required levels. However,
Vanguard Brokerage Services reserves the right to liquidate Securities
and Other Property at any time (including on or before settlement date)
depending on market conditions. In addition, You agree to pay any debit
remaining in Your Account if Your positions are liquidated to satisfy a
margin call. We may extend credit to You according to applicable laws and
regulations and Our Margin Disclosure of Credit Terms and Policies. You
agree to use this credit primarily for business and investment purposes.
2. Margin Disclosure of Credit Terms and Policies
All transactions in Your Account are subject to Our Margin Disclosure of
Credit Terms and Policies. You agree not to enter an order in Your Account
until You have read and understood the Margin Disclosure of Credit Terms
and Policies.
3. Maintenance of Collateral
You agree to maintain in Your Account collateral of the type and amount
required by:
Applicable Exchange rules and federal regulations;
Our Margin Disclosure of Credit Terms and Policies; or
Vanguard Brokerage Services, at our discretion.
4. Liquidation
Whenever it is necessary for Our protection or to satisfy a margin call,
deficiency, debit, or other obligation owed Us, We may (but are not required
to) sell, assign, and deliver all or any part of the Securities and Other Property
securing Your obligations, or close any or all transactions in Your Account or
in any of Your accounts with Our affiliates. It is Our policy to attempt to
contact You, when practicable, before taking any action described in this
section. However, We reserve the right to take any such action without prior
notice or demand for additional collateral, and free of any right of redemption.
Any prior demand, call, or notice will not be considered a waiver of Our right
to sell or buy without demand, call, or notice. We may choose which
Securities or Other Property to buy or sell, which transactions to close,
and the sequence and timing of liquidation. We may take such actions on
whatever exchange or market and in whatever manner (including public
auction or private sale) that We choose in the exercise of Our business
judgment. You agree not to hold us liable for the choice of which Securities
or Other Property to buy or sell, or of which transactions to close, or for the
timing or manner of the liquidation. We may transfer Securities and Other
Property from any brokerage account in which You have an interest to any
other brokerage account in which You have an interest, regardless of whether
there are other Account Holders on either account, if We determine that Your
obligations are not adequately secured or to satisfy a margin deficiency or
other obligation. You agree to pay on demand any Account deficiencies after
liquidation, whether liquidation is complete or partial. We are entitled to
exercise the rights described in this section in Our sole discretion at any
time, including whenever any of the following occurs:
The equity level in Your Account falls below required minimums;
Sufficient funds or securities are not deposited to pay for transactions in
Your Account;
A petition of bankruptcy or for the appointment of a receiver is filed by
or against You;
An attachment is levied against any of Your brokerage accounts with us;
You die or become incapacitated or incompetent;
or
Your Vanguard Brokerage account is closed.
5. Short Sales
You agree to designate a sell order as a short sale if, at the time You
place the order, You either do not own the security being sold or are
unable to deliver the security in a timely manner. You agree that short
sale transactions are subject to certain regulatory rules and cannot be
executed under certain market conditions. In addition, depending on market
conditions, Vanguard Brokerage Services cannot guarantee that it will have
shares available to facilitate a short sale. You agree that We may, in Our
discretion and without notice, “buy in” securities to cover any short security
position in Your Account at Your expense. We may take this action either on
a regular settlement, cash, or next-day settlement basis. If You are unable to
cover a short security position (either through delivery of the security or
through our “buying-in” the security) in enough time so We can deliver the
security to its lender (to whom We’re obligated), You agree to reimburse Us
for the losses We sustain as a result of Your failure to deliver the security.
6. Interest on Debit Balances
We will charge interest on Your debit balance according to Our Margin
Disclosure of Credit Terms and Policies. We post accrued but unpaid
interest charges to Your Account each month. We compound the interest
as described in Our Margin Disclosure of Credit Terms and Policies.
7. Pledge of Securities and Other Property
The Securities and Other Property in Your Account may be carried in the
general loan of Vanguard Brokerage Services, and We may pledge, repledge,
hypothecate, or rehypothecate, either separately or together with Securities
of other customers, all Securities and Other Property that You, now or in the
future, carry, hold, or maintain in Your Account. The value of the Securities
and Other Property We pledge or repledge may be greater than the amount
You owe Us, and We are not obligated to retain in Our possession and
control for delivery the same amount of similar Securities and Other Property.
8. Loan Consent
You agree that Securities and Other Property held in Your Margin Account,
now or in the future, may be borrowed (either separately or together with
the property of others) by Us or by others. You agree that Vanguard
Brokerage Services may receive and retain certain benefits (including, but
not limited to, interest on collateral posted for such loans) to which You
will not be entitled. You acknowledge that in certain circumstances, such
borrowings could limit Your ability to exercise voting rights or receive
dividends, in whole or in part, with respect to the Securities and Other
Property lent. You understand that for Securities and Other Property that
are lent by Vanguard Brokerage Services, the dividends paid on such
Securities and Other Property will go to the borrower. No compensation
or other reimbursements will be due to You in connection with such
borrowings. However, if You are allocated a substitute payment in lieu of
dividends, You understand that such a payment may not be entitled to the
same tax treatment as may have been applied to the receipt of a dividend.
You agree that Vanguard Brokerage Services is not required to compensate
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You for any differential tax treatment between dividends and payments in
lieu of dividends. Vanguard Brokerage Services may allocate substitute
payments in any manner permitted by law, rule, or regulation. Please note
that any substitute payments Vanguard Brokerage Services makes are
voluntary and may be discontinued at any time.
9. Required Arbitration Disclosures
The Margin Agreement contains a predispute arbitration clause.
By signing an arbitration agreement, the parties agree as follows:
All parties to the Margin Agreement are giving up the right to
sue each other in court, including the right to a trial by jury,
except as provided by the rules of the arbitration forum in which
a claim is filed.
Arbitration awards are generally final and binding. A party’s
ability to have a court reverse or modify an arbitration award
is very limited.
The ability of the parties to obtain documents, witness statements,
and other discovery is generally more limited in arbitration than in
court proceedings.
The arbitrators do not have to explain the reason(s) for their award
unless, in an eligible case, a joint request for an explained decision
has been submitted by all parties to the panel at least 20 days prior
to the first scheduled hearing date.
The panel of arbitrators may include a minority of arbitrators who
were or are affiliated with the securities industry.
The rules of some arbitration forums may impose time limits
for bringing a claim in arbitration. In some cases, a claim that
is ineligible for arbitration may be brought in court.
The rules of the arbitration forum in which the claim is filed,
and any amendments thereto, shall be incorporated into the
Margin Agreement.
10. Arbitration Agreement
You agree to settle by arbitration any controversy between or
among You and Vanguard Brokerage Services, arising out of or
relating to Vanguard Brokerage Services’ business or the Margin
Agreement. Such arbitration will be conducted by and in accordance
with the securities arbitration rules and regulations then in effect of
the Financial Industry Regulatory Authority (FINRA) or any national
securities exchange that provides a forum for the arbitration of
disputes, provided that Vanguard Brokerage Services is a member
of such national securities exchange at the time the arbitration is
initiated. Arbitration must be commenced by service upon the other
party of a written demand for arbitration or a written notice of
intention to arbitrate, therein electing the arbitration tribunal. In the
event the undersigned does not make such election within five (5)
days of such demand or notice, then the undersigned authorizes
Vanguard Brokerage Services to do so on behalf of the undersigned.
The award of the arbitrator will be final and binding, and judgment
on the award may be entered in any court having jurisdiction.
No person shall bring a putative or certified class action to
arbitration, nor seek to enforce any predispute arbitration agreement
against any person who has initiated in court a putative class action
or who is a member of a putative class who has not opted out of the
class with respect to any claims encompassed by the putative class
action until: (i) the class certification is denied; (ii) the class is
decertified; or (iii) the customer is excluded from the class by the
court. Such forbearance to enforce an agreement to arbitrate shall
not constitute a waiver of any rights under the Margin Agreement
except to the extent stated herein.
11. Governing Law
The Margin Agreement and the Agreement, all transactions made in Your
Account, and all matters arising in connection with the Margin Agreement
and the Agreement will be governed by, and construed and enforced in
accordance with, the laws of the State of New York (regardless of the
choice of law rules thereof).
12. Severability
If any provision or condition of the Margin Agreement shall be held to
be invalid or unenforceable by any court or regulatory or self-regulatory
agency or body, such invalidity or unenforceability shall attach only to
such provision or condition. The validity of the remaining provisions and
conditions shall not be affected thereby, and the Margin Agreement shall
be valid and enforceable as if any such invalid or unenforceable provision
or condition were not contained herein.
13. Assignment
We may assign Our rights and obligations under the Margin Agreement
to any subsidiary, affiliate, or successor by merger or consolidation without
notice to You, or to any other entity after thirty (30) days’ written notice to
You. You may not assign Your rights and obligations under the Margin
Agreement without first obtaining Our written consent. Any assignment
in violation of this provision will be void.
The Margin Agreement is binding upon You and Your heirs, executors,
administrators, successors, and permitted assigns, and it will benefit You
and Your successors and permitted assigns, if any.
14. Amendment
On prior or concurrent written notice to You, We may modify or rescind
existing provisions or add new provisions to the Margin Agreement.
By not closing and/or continuing to use Your Account, You confirm Your
agreement to abide by the Margin Agreement, as amended from time
to time. Amendments will not affect rights or obligations either of Us
incur before the effective date of the amendment. No prior conduct,
past practice, or oral statement by any Vanguard Brokerage employee or
agent can amend or modify this written agreement.
15. Vanguard Brokerage Account Agreement
All transactions in Your Margin Account are subject to the Margin
Agreement and the Agreement in their entireties and any other disclosures,
terms, and agreements relating to Your Account or to particular features
or services offered in connection with Your Account, each as amended
from time to time.
Initial Margin Risk Disclosure Statement
Vanguard Brokerage Services is providing this statement, in accordance
with FINRA rules and regulations, to inform You of some important facts
about purchasing securities on margin and to alert You to the risks involved
with margin Securities in a margin account. Before trading Securities in
Your Margin Account, You should carefully review this Margin Risk
Disclosure Statement. You should call Vanguard Brokerage Services with
any questions or concerns You may have with Your Margin Account.
When You purchase Securities, You may pay for the Securities in full or You
may borrow part of the purchase price from Vanguard Brokerage Services. If
You choose to borrow funds from Vanguard Brokerage Services, You will open
a margin account with Us. The Securities purchased are Our collateral for the
loan to You. If the Securities in Your Account decline in value, so does the value
of the collateral supporting Your loan. As a result, Vanguard Brokerage Services
can take action by issuing a margin call and/or by selling Securities and Other
Property in any of Your accounts held with Vanguard Brokerage Services or any
of its affiliates to satisfy minimum equity requirements.
Before placing any trades in a margin account, it is important that You fully
understand that this activity involves a high degree of risk. These risks
include, but are not limited to, the following:
You can lose more funds than You deposit into Your Margin Account.
If the Securities in Your Margin Account decline in value, You may be
required to deposit additional funds or marginable Securities to prevent
Vanguard Brokerage Services from selling those or other Securities in
Your Account. Market conditions can magnify any potential for loss.
You are fully liable for the funds that You have borrowed. During
periods of extreme market volatility, it is possible that the market value of
the Securities in Your Margin Account (assets held as collateral) may drop
below Your loan value. If this occurs, You will be responsible for covering
the deficit in Your Account. Whenever it is necessary for our protection or
to satisfy a margin call, deficiency, debit, or other obligation owed Us, We
may (but are not required to) sell, assign, and deliver all or any part of the
Securities and Other Property securing Your obligations or close any or
all transactions in any of Your Vanguard Brokerage accounts or in any of
Your accounts with Our affiliates.
Vanguard Brokerage Services can force the sale of Securities and
Other Property in Your Account. You are not entitled to choose
which securities or other assets in Your Account will be liquidated
or sold to meet a margin call. If the equity in Your Account falls below
the maintenance margin requirements, or Vanguard Brokerage Services’
higher “house” maintenance margin requirements (see next item below),
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Vanguard Brokerage Services reserves the right to sell the Securities and
Other Property in Your Account to cover the margin deficiency. You will
also be responsible for any shortfall in the Account after such sale.
Because the Securities and Other Property in Your Account are collateral
for the margin loan that has been granted to You, Vanguard Brokerage
Services has the right to decide which securities to sell in order to
protect its interests.
Vanguard Brokerage Services can increase Our “house” maintenance
margin requirements at any time without advance written notice. At
this time, the minimum margin maintenance requirement is 35% for most
marginable securities held at Vanguard Brokerage Services. Your Account
would be at 35% equity under the following scenario: $100,000 market
value – $65,000 margin debt = 35% equity. However, maintenance
requirements may vary for certain Securities. For example, Vanguard
Brokerage Services now requires a 50% or higher maintenance
requirement for concentrated positions; that is, for margin accounts with a
large percentage of holdings in a small number of securities or for a large
amount of holdings in one particular industry group or sector. In addition,
not all Securities held at Vanguard Brokerage Services are marginable.
Please note that we may change Our “house” maintenance margin
requirements anytime and these changes will take effect immediately and
result in the issuance of a maintenance margin call. Your failure to satisfy
the call may cause Vanguard Brokerage Services to liquidate or sell
Securities and other Property in Your Account. You should ascertain the
margin requirements for a particular Security before placing a trade in a
margin account. If You have any questions about Our margin
requirements, call Us at 800-992-8327 on business days from 8 a.m. to
10 p.m. or on Saturdays from 9 a.m. to 4 p.m., Eastern time.
Vanguard Brokerage Services can sell Your Securities and Other
Property without contacting You. Some investors mistakenly believe
that a firm must contact them for a margin call to be valid and that the
firm cannot liquidate Securities and Other Property in their accounts to
meet the call unless the firm has contacted them first. This is not the
case. Vanguard Brokerage Services will attempt to notify You when a
margin call exists, but is not required to do so. You will normally have
up to five business days (two days for Exchange calls) to satisfy a
margin call. However, even if You are contacted and given explicit
instructions regarding the amount and payment deadline of Your margin
call, Vanguard Brokerage Services can still take necessary steps to
protect its financial interests, including by selling Securities and
Other Property in any of Your accounts held by Vanguard
Brokerage Services or any of its affiliates at any time without
contacting You, if We deem it necessary, to mitigate the risk
associated with adverse market fluctuations or otherwise.
You are not entitled to an extension of time to meet a margin
maintenance call. Although Vanguard Brokerage Services may allow
more time to meet a margin call under extenuating circumstances, You
are not automatically entitled to receive an extension.
Short sales can result in unlimited liability. A short sale occurs when
a client borrows a security and sells it with the expectation that the
price of the security will fall. If the shares of a Security that You have
sold short should no longer be available to borrow (are recalled) by
Vanguard Brokerage Services, Your Account will be subject to a
mandatory “buy-in” at current market prices for all or part of Your
short positions, however high those prices might be. Therefore, before
placing such trades, You should fully understand the risks and
potentially adverse impact such trades might have on Your portfolio.
Interest rates on margin debit balances may vary. Interest charged on
any margin debit balances may be up to 3.00 percentage points above
the Vanguard Brokerage Base Lending Rate. The interest period begins
two business days before the beginning of each month and ends three
business days before the following month’s end. At the close of each
interest period during which credit was extended to You, an interest
charge is computed by multiplying the average daily 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. If there has
been a change in the Vanguard Brokerage 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. 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. If there is a cash balance in both Your cash and margin
accounts, interest will be calculated on the combined debit balance for
that currency and charged to the Margin Account.
Generally, You will not receive interest on any credit balances in Your
short account because such credit collateralizes the stock borrowed
for delivery against the short sale.
All trades will be executed through Your Margin Account. All
securities must be held in Your Margin Account. Purchases of open-end
mutual funds and Vanguard ETFs will settle in Your cash account and
after 30 days be journaled into Your Margin Account.
Information about the rules, regulations, and risks of investing on
margin is available online at the FINRA website at finra.org. We
strongly urge You to access this site for additional information
disclosure or call Us at 800-992-8327 on business days from 8 a.m.
to 10 p.m. or on Saturdays from 9 a.m. to 4 p.m., Eastern time.
Margin Disclosure of Credit Terms and
Policies
General Margin Policies
The amount of credit that may be extended by Vanguard Brokerage
Services and the terms of such extension are governed by rules of the
Federal Reserve Board, FINRA, and the New York Stock Exchange, Inc.,
within the guidelines of these rules and subject to adjustment required by
changes in such rules and Our business judgment.
Vanguard Brokerage Services establishes certain policies with respect to
margin accounts. Vanguard Brokerage Services may require the deposit of
additional acceptable collateral at any time. Margin account equity is the
current market value of Securities and Other Property deposited as security
less the amount owed Vanguard Brokerage Services for credit extended at
its discretion. It is Our general policy to require margin account holders to
maintain equity in their accounts of the greater of 35% of the current market
value or $3 per share for common stock. Vanguard Brokerage Services
applies other standards for other types of Securities. For instance, Securities
valued at less than $5 per share must initially be paid for in full. Also, certain
Securities may be ineligible for margin credit from time to time.
For information with respect to general margin maintenance policies for
municipal bonds, corporate bonds, U.S. Treasury notes and bonds, and
other securities, as well as information about the eligibility of particular
securities for margin credit, please contact Vanguard Brokerage Services
at 800-992-8327.
Notwithstanding the above general policies, Vanguard Brokerage Services
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, Vanguard Brokerage Services may take into
account various factors including the size of the account, the liquidity of a
position, concentrations of Securities in an account, or a decline in
creditworthiness. If You fail to meet a margin call in a timely manner, some
or all of Your positions may be liquidated by Vanguard Brokerage Services at
then-current market prices.
Credit Disclosure
Cash Accounts
Cash accounts may be subject, at Vanguard Brokerage Services’ discretion,
to interest on any debit balances in U.S. dollars or any other currency
resulting from failure to make payment in full for securities purchased, from
failure to timely deliver securities sold, from proceeds of sales paid prior to
settlement date, or for other charges which may be made to the account.
Margin Accounts
Purchases of Securities on credit, commonly known as margin purchases,
enable You to increase the buying power of Your equity and thus increase
the potential for profit or loss. A portion of the purchase price is deposited
when buying securities on margin, and Vanguard Brokerage Services
extends credit for the remainder. This loan appears as a debit balance in
U.S. dollars or any other currency on Your monthly account statement.
Vanguard Brokerage Services charges interest on the debit balance in U.S.
dollars or any other currency and requires You to maintain Securities and
Other Property to secure repayment of funds advanced and interest due.
Interest will be charged in the appropriate currency for any credit extended
to You for the purpose of buying, trading, or carrying any Securities; for any
cash withdrawals made against the collateral of Securities; or for any other
extension of credit. When funds are paid in advance of settlement on the sale
of Securities, interest will be charged in the appropriate currency on such
amount from date of payment until the settlement date. In the event that any
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other charge is made to the account in U.S. dollars or any other currency for
any reason, interest may be charged on the resulting debit balances.
Interest You pay on the loan is paid to Vanguard Brokerage Services.
Interest Rates
Interest charged on any debit balances in cash accounts or on credit
extended in margin accounts may be up to 3.00 percentage points above
the Vanguard Brokerage Base Lending Rate for that currency. The Vanguard
Brokerage Base Lending Rate for each currency will be set with reference
to commercially recognized interest rates, industry conditions relating to the
extension of credit, and general credit market conditions. For a loan in a
currency other than U.S. dollars, the Vanguard Brokerage Base Lending
Rate will be set based on the above-referenced criteria in the country
whose currency is the basis of the loan. The Vanguard Brokerage Base
Lending Rate for each currency will change without prior notice. When the
Vanguard Brokerage Base Lending Rate for a particular currency changes
during an interest period, interest will be calculated according to the
number of days each rate is in effect during that period. If the rate of
interest charged to You increases for any reason other than a change in
the Base Rate, You will be notified at least 30 days in advance.
Interest Period
The interest period begins two business days before the beginning of
each month and ends three business days before the following month’s
end. Accordingly, the interest charges for the period as shown on Your
monthly statement are based only on the daily net debit and credit balances
for the interest period.
Method of Interest Computation
At the close of each interest period during which credit was extended to
You, an interest charge is computed by multiplying the average daily 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. If there has been a change in the Vanguard Brokerage 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. 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.
With the exception of credit balances in 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. Credit balances in one
currency will not be combined or netted with debit balances in a different
currency. If there is a cash balance in both Your cash and margin accounts,
interest will be calculated on the combined debit balance for that currency
and charged to the Margin Account.
Any credit balance 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 in the same position in Your
Margin Account (for instance, short sale against the box). If the security 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 that
You sold short depreciates in market price, the interest charged will
be reduced since Your average debit balance will decline. This practice
is known as “marking-to-the-market.” 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 short position occurs, on the following
business day Your Account will be charged the amount of the dividend or
other distribution.
Deposits of Collateral, Lien on Accounts, and Liquidation
In the event that additional collateral is requested, You may deposit funds or
acceptable Securities into Your Margin Account. If satisfactory collateral is
not promptly deposited after a request is made, Vanguard Brokerage Services
may, at its discretion, liquidate Securities and Other Property held in any of
Your Vanguard Brokerage accounts or in any account held by its affiliates. In
Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, member FINRA and SIPC.
this connection, pursuant to Our Account Agreement and Margin Agreement,
Vanguard Brokerage Services retains a security interest in the Securities and
Other Property held in Your accounts, including Securities held for safekeeping
so long as any credit extended remains outstanding.
Callable Securities
Securities which are held for Your Account and which are in “street name,”
or are being held by a securities depository, are commingled with the same
securities being held for other clients of financial organizations and for
Vanguard Brokerage Services’ own clients. Your ownership of these
Securities is reflected in Our records. You have the right at any time to
require delivery to You of any such Securities that are fully paid for or are in
excess of margin requirements.
The terms of many bonds allow the issuer to partially redeem or “call”
the issue prior to maturity date. Certain preferred stocks are also subject
to being called by the issuer. Whenever any such Security being held by
Us is partially “called,” We will determine, through a random selection
procedure as prescribed by New York Stock Exchange ® rules, the
ownership of the Securities to be submitted for redemption without regard
to unsettled sales. In the event that such Securities owned by You are
selected and redeemed, Your Account will be credited with the proceeds.
Should You not wish to be subject to this random selection process, You
must instruct Vanguard Brokerage Services to deliver Your securities to
You. Delivery will be effected provided, of course, that Your position is
unencumbered or had not already been called by the issuer as described
prior to receipt by Vanguard Brokerage Services of Your instructions. The
probability of one of Your Securities being called is the same whether they
are held by You or by Vanguard Brokerage Services for You.
Miscellaneous Credits
Vanguard Brokerage Services credits to Your Account funds belonging to
You such as dividends, interest, redemptions, and proceeds of corporate
reorganizations on the day such funds are received by Us. These funds
come to Us from issuers and various intermediaries in which We are
participants, such as the Depository Trust Company. Periodically, certain of
those intermediaries pass on to their participants some or all of the interest
earned on funds while in the possession of the intermediary. To the extent
Vanguard Brokerage Services receives such payments, We retain them.
Information regarding when Vanguard Brokerage Services credits Your
Account with funds due to You, when those funds are available to You, and/
or when You begin earning interest on those funds is available from
Vanguard Brokerage Services.
Substitute Payments
To the extent Vanguard Brokerage Services determines (in accordance with
federal income tax regulations) that Your Securities have been loaned, certain
payments You receive with respect to such loaned Securities will be
reclassified as “substitute payments.” The tax consequences of receiving
substitute payments may be different than the tax consequences of receiving
payments made by an issuer of an underlying security. For instance, a
dividend received by an individual may be taxed at a preferential rate if the
dividend is a qualified dividend. Whereas if an individual receives a substitute
payment, the preferential rate for qualified dividends will not apply. Individuals
may also be affected if certain payments (such as exempt-interest, dividends,
capital gains distributions, return of capital, and foreign tax credit dividends)
are reclassified as substitute payments. Corporate taxpayers could also be
affected because the dividends-received deduction is not available with
respect to substitute payments. We suggest You contact Your tax advisor
to discuss the tax-treatment of substitute payments. As permitted under
Your Margin Agreement, Vanguard Brokerage Services may lend shares in
Your Account when Your Account has a debit balance. In the instance where
Securities are on loan over an ex-dividend date, Vanguard Brokerage Services
may issue a substitute payment to the Account in lieu of the dividend and,
subsequently, a tax-differential reimbursement. Substitute payments received
in 2007 and forward, however, may be eligible for a reimbursement to the
lender’s account only if the Account is open on the reimbursement date.
Please note that these reimbursements are subject to change and may be
eliminated without advance notification.
© 2010
The Vanguard Group, Inc.
All rights reserved.
MARAG 122011
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When you upgrade to a VanguardAdvantage Account,
one thing won’t change: You’ll continue to enjoy the
confidence that comes from dealing with Vanguard,
the investment management company known for our
unwavering focus on clients, exceptional value, and
plain talk.
Connect with Vanguard ® > www.vanguard.com > 800-992-8327
For more information about Vanguard funds
and mutual funds from other fund companies
offered through Vanguard Brokerage Services,
visit www.vanguard.com, or call 800-992-8327,
to obtain a prospectus. Investment objectives,
risks, charges, expenses, and other important
information are contained in the prospectus;
read and consider it carefully before investing.
Visa is a trademark of Visa Inc.
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
Vanguard Brokerage Services is a division of Vanguard Marketing
Corporation, member FINRA and SIPC.
© 2011 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
PPVUGCV 092011

VanguardAdvantage ® Account
Disclosures Booklet
VanguardAdvantage Account Services Agreement 1
Vanguard Brokerage Margin Account Agreement 21
Initial Margin Risk Disclosure Statement 27
Margin Disclosure of Credit Terms and Policies 29
Keep this copy for your records.

This page is intentionally left blank.

VanguardAdvantage Account Services Agreement
Checkwriting, Debit Card, ACH, and Related Services
This agreement (the “Agreement”) sets forth the definitive terms and conditions of the VanguardAdvantage
Account Checkwriting, Visa ® Gold Debit Card, Billpay, ACH, and related services (the “Services”) that are
available through your VanguardAdvantage Account. This Agreement is made by and among Vanguard
Brokerage Services ® (Vanguard Brokerage), a division of Vanguard Marketing Corporation; and you, and with
respect to Card, ACH, and check services, BNY Mellon Trust Company and Bank (defined below), and with
respect to the Billpay Service (defined below), CheckFree Services Corporation. By your enrollment in and use of
your VanguardAdvantage Account, you agree to be bound by the terms of this Agreement that are applicable to
the Services that you use.
1. Definitions.
Unless the context otherwise requires, the capitalized terms used in this Agreement have the meanings
specified below:
“Account” means your VanguardAdvantage Account, which consists of (a) your Brokerage Account, (b) your
linked money market settlement fund, and (c) any securities or other property or obligation from time to time
included in your VanguardAdvantage Account by Vanguard Brokerage.
“ACH” means Automated Clearing House.
“ACH Transaction” means any transfer of funds processed through the ACH system.
“ATM” means automated teller machine.
“ATM Withdrawal” means a Card Transaction in which you receive money from an ATM.
“Authorization” means a Card Transaction in which you authorize others to place a hold on your Available
Balance to ensure future payment.
“Available Balance” means the available cash and sweep fund balances in your Account as well as any
available secured credit if you have a margin account, excluding those balances that are subject to Vanguard
Brokerage’s seven-business-day hold or that have otherwise been placed on hold to ensure payment of
previously authorized Transactions.
“Bank” means PNC Bank, N.A., a national bank.
“Banking Day” has different meanings for ATM Withdrawals and for Cash Advances, Purchases, and
Authorizations. A Banking Day may, as applicable, exclude bank or brokerage holidays.
(1) For ATM Withdrawals, we consider there to be seven Banking Days each week for purposes of imposing
security limits on the number and amount. For these purposes, Banking Days begin at 12 midnight,
Eastern time.
(2) For Cash Advances, Purchases, and Authorizations:
(a) We consider there to be six Banking Days each week for purposes of imposing security limits on the
amount you can perform. For these purposes, Banking Days begin at 6 a.m., Eastern time. The period
from Saturday at 6 a.m. to Monday at 6 a.m., Eastern time, is counted as one Banking Day; and
(b) We consider there to be seven Banking Days each week for purposes of imposing security limits on
the number you can perform. For these purposes, Banking Days begin at 12 midnight, Eastern time.
“Billpay Provider” means CheckFree Services Corporation.
“Billpay Service” means the electronic bill payment service offered by Vanguard Brokerage that is accessed
exclusively by means of Vanguard Brokerage’s secure website.
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“Billpay Transaction” means any transaction in which you use the Billpay Service to effect payment.
“BNY Mellon” means BNY Mellon Trust Company, which is responsible for administration of the checkwriting,
ACH, debit card and Billpay services provided hereunder
“Brokerage Account” means the cash and/or margin account opened in your name with Vanguard Brokerage.
“Business Day” means Monday through Friday, excluding federal holidays. Although Vanguard Brokerage’s,
BNY Mellon’s, or the Bank’s offices may be open on certain federal holidays, these days are not considered
Business Days for purposes relating to the transfer of funds.
“Card” means the VanguardAdvantage Account Visa Gold Card issued on your Account.
“Card Transaction” means any transaction in which you use the Card, the Card number, and/or your PIN to
obtain cash through a Cash Advance transaction, to obtain cash from an ATM, or in payment to a merchant for
goods or services.
“Cash Advance” means a Card Transaction in which you receive money back from a merchant or financial
institution. Cash Advances do not include ATM Withdrawals.
“Check,” “Checks,” “Checking” refer to checks drawn on the Bank.
“Check Transaction” means any Transaction in which you use a Check to make a payment.
“Due Date” is the date reflected on your Payee statement on which the payment is due. It is not the late date
or grace period.
“Electronic Funds Transfer” means any transfer of funds initiated or authorized by you through an electronic
payment system such as the ACH network.
“Payee” is the person or entity to which you wish a bill payment to be directed or from which you receive
electronic bills.
“Payment Account” is your VanguardAdvantage Account, from which all payments and Billpay Service fees will
be automatically debited.
“Payment Instructions” is the information provided by you to Vanguard Brokerage for a bill payment to be made
to the Payee (such as, but not limited to, Payee name, Payee account number, and Scheduled Payment Date).
“PIN” means your personal identification number that is associated with your Card.
“Purchase” means a Card Transaction in which you purchase goods or services.
“Regulation E” means Regulation E (12 C.F.R. part 205) of the Board of Governors of the Federal
Reserve System.
“Scheduled Payment” is a payment that has been scheduled through the Billpay Service but has not
begun processing.
“Scheduled Payment Date” is the day you want your Payee to receive your bill payment and the day your
Payment Account will be debited unless it falls on a non-Business Day, in which case it will be considered to be
the previous Business Day.
“Services” means Checkwriting, Card, Billpay, ACH, and related services.
“Transaction” means any Check, Card, Billpay, or ACH Transaction.
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“Unauthorized Transaction” means a Transaction made by someone without your authorization and from
which you received no benefit. This does not include (a) a Card Transaction by a person to whom you furnished
your Card, Card number, or PIN unless you have notified Vanguard Brokerage that Transactions by such persons
are no longer authorized and Vanguard Brokerage has had a reasonable opportunity to act on such notice,
(b) a Transaction made or authorized by you with the intent to defraud, or (c) a Transaction made in error by us.
“Vanguard Brokerage” means Vanguard Brokerage Services, a division of Vanguard Marketing Corporation,
member FINRA and SIPC.
“We,” “Us,” “Our” mean, (a) in connection with Card, Check, and ACH Transactions, as the context requires,
Vanguard Brokerage, BNY Mellon, and/or the Bank; or, (b) in connection with Billpay Services, as the context
requires, Vanguard Brokerage and/or the Billpay Provider.
“You,” “Your,” “Accountholder” mean each person or entity who is a registered owner of the Account.
2. How to Contact Us About Your Account.
2.1 Loss or Theft of Card or Unauthorized Transactions. You must tell Vanguard Brokerage at once if you
believe your Card or Checks have been lost or stolen or if you believe an unauthorized person may know
your PIN or your Billpay Service website password. Similarly, tell Vanguard Brokerage if you believe any
Unauthorized Transactions have been made to your Account or if you believe that someone may attempt
to use the Services without your consent or has transferred money without your permission. See Section
7 for more information about your rights and obligations with respect to Electronic Funds Transfers.
2.2 Errors or Questions About Your Account. Tell Vanguard Brokerage immediately if you think your
Account statement or a Transaction record is wrong or if you need more information about your Account
or any Transaction.
2.3 Contact Information. Call Vanguard Brokerage at 800-992-8327 on business days from 8 a.m. to 10 p.m.
or on Saturdays from 9 a.m. to 4 p.m., Eastern time. Or write to Vanguard Brokerage at:
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
3. General Features of the Services.
3.1 Available Balance.
3.1.1 Your Available Balance may fluctuate from day to day because it is dependent upon changes in
your Account. The Available Balance is reduced shortly after the Bank is notified of a Transaction,
not when a sales draft or Cash Advance draft is paid.
3.1.2 You promise not to make a Transaction (such as issuing a Check, making a Card Transaction,
or requesting a Billpay Transaction) that exceeds your Available Balance. If you do so, you will
incur the insufficient funds fee listed in the Vanguard Brokerage Services Commission and Fee
Schedules. If you attempt to make such a Transaction, it will normally be declined.
3.2 Payment for Transactions.
3.2.1 On a daily basis, BNY Mellon will notify Vanguard Brokerage of the Transactions BNY Mellon
receives on your Account. Vanguard Brokerage will make payments to the Bank (via BNY Mellon)
on your behalf on each Business Day that we receive notice of the Transactions in the following
order of priority: free credit in your Vanguard Brokerage account, cash available in your Vanguard
Brokerage linked money market fund, margin cash available.
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3.2.2 You authorize Vanguard Brokerage to charge your Brokerage Account in order to pay for
Transactions. Each Transaction shall be considered to be your direction to us to charge or reduce
your Available Balance. When you use your Card, the reduction occurs immediately, and you
understand that you have no right to stop payment on any Card Transaction. You understand that
an Authorization will reduce your Available Balance even if it does not result in a Transaction until
the earlier of the completion of the Transaction in whole or in part or the expiration of a time period
specified by us.
3.2.3 If more than one person is authorized to sign on the Account, you authorize us to pay Card
drafts or Checks on the authority of any one of the signatures of the individuals identified on
the appropriate account documentation—even if you have signed documentation on file
with us that states you require more than one signature to act on your Account. You also
acknowledge that the Billpay Service may be established and any Billpay Transaction may be
requested at any time upon the authorization of any one account owner or authorized signer.
See Section 10 for more information about joint accounts.
3.2.3.1 Unauthorized Use. You promise not to let any unauthorized persons make a Transaction,
and you agree not to give or make available to them your PIN, password, or other means to
access your Account or the Services. You are responsible for all payments you authorize
using the Services. If you permit an unauthorized person to make a Transaction or access
your Account, even if the amount exceeds that which you authorized, you will be responsible
for the full amount of all Transactions that result.
3.3 Insufficient Funds; Overdraft Protection.
3.3.1 If the available cash and sweep fund balances in your Account are insufficient to cover a
Transaction and you have not established overdraft protection for your Account, Vanguard
Brokerage may instruct the Bank (via BNY Mellon) to return a Check or Billpay Transaction or
decline a Card Transaction. In each case, the insufficient funds fee listed in the Vanguard
Brokerage Services Commission and Fee Schedules will be debited from your Account. If a
Transaction results in an overdraft situation and you have established overdraft protection by
means of a margin account, you may be required to deposit more money or securities. If you are
unable to do so or if the Transaction exceeds your margin cash available, Vanguard Brokerage
may be required to sell all or a portion of your pledged assets. You will also be subject to
margin interest as disclosed in the Vanguard Brokerage Margin Account Agreement.
3.4 Account Statements.
3.4.1 Vanguard Brokerage will send you an Account statement for every month in which you make a
Transaction. In any event, you will receive an Account statement at least quarterly. Your Account
statement will include the following information:
For Card Transactions. The amount, location, Transaction date, posting date, reference number,
and merchant name (when available).
For Check Transactions. The Check number, amount, and date of payment.
For ACH Transactions. The reference number, a Transaction description, amount, and date
of payment.
For Billpay Transactions. Billpay Transactions will be reflected as either Check or ACH
Transactions, depending upon the form in which the payment is made.

3.5 Your Duty to Examine Statements.
3.5.1 Your Duty to Examine Your Statement—Checks. As used in this section, the term “problem”
means any error, alteration, or unauthorized Transaction (including, but not limited to, forged or
missing signatures, unauthorized wire transfers, and excluding Electronic Funds Transfers) related
to any Check Transaction(s) for your Account. Because you are in the best position to discover
any problem, you will promptly examine your statement and report to Vanguard Brokerage any
problem on or related to your statement. You agree that none of us will be responsible for any
problem related to a Check Transaction that:
You do not report to Vanguard Brokerage in writing within a reasonable time not to exceed 20
calendar days after Vanguard Brokerage mails the statement (or makes the statement available)
to you;
Results from a forgery, counterfeit, or alteration so clever that a reasonable person cannot detect
it (for example, unauthorized Checks made with your facsimile signature device or that look to an
average person as if they contain an authorized signature); or
As otherwise provided by law or regulation.
You may not start a legal action against any of us because of any problem unless: (a) you have
given Vanguard Brokerage the above notice; and (b) the legal action begins within one year after
we first sent or made your statement available to you. If you make a claim against any of us in
connection with a problem, each of us reserves the right to conduct a reasonable investigation
before recrediting your account, and you agree to cooperate in any such investigation. If any of
us requests, you agree to complete an affadavit of forgery or other proof of loss. If you refuse
to sign such an affadavit, none of us will be liable to you for any loss arising from the problem.
For problems involving an electronic banking transaction, please refer to Sections 7 and 8 of
this Agreement.
These time periods for you to examine your statement and report “problems” to Vanguard
Brokerage are without regard to the level of care of any of us or the commercial reasonableness
of our practices, further without regard to whether copies or images of cancelled Checks are
supplied or made available to you. Contact Vanguard Brokerage promptly if you do not
receive your regular statement.
3.5.2 Your Duty to Examine Your Statement—Cards. Please see Section 8 of this agreement
entitled “Additional Terms and Conditions of Electronic Funds Transfers.”
3.5.3 Your Duty to Examine Your Statement—ACH Transactions. Generally, ACH Transactions
for consumer accounts are considered Electronic Funds Transfers. Please see Sections 7 and
8 of this Agreement. For other ACH Transactions, please see “Your Duty to Examine Your
Statement—Checks” above. Also, for ACH Transactions related to electronically re-presented
checks from consumer accounts, please see Section 5.10 of this Agreement.
3.5.4 Your Duty to Examine Your Statement—Billpay Transactions. Please see Section 6 of
this Agreement.
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3.6 Foreign Transactions.
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3.6.1 Foreign Transactions. These are transactions completed outside the United States through
your Account. All debits will be posted in U.S. dollars. Payments to Payees outside the United
States or its territories through the Billpay Service are prohibited. Checks will generally not be
accepted by banks outside of the United States. All Checks must be made payable in U.S. dollars.
See Section 4.4 for more information about Card Transactions made in a foreign currency.
3.6.2 Foreign Transaction Fee. For each Foreign Transaction, a fee (currently 1% of the Transaction
amount) will be charged to your Account whether or not there is a currency conversion.
3.7 Fees. See the fees and charges associated with the Services listed in the Vanguard Brokerage Services
Commission and Fee Schedules. Not included are fees that may be charged by third parties. Any
applicable fees will be charged regardless of whether you use the Service during any billing cycle. You
agree to pay such charges and authorize us to deduct the calculated amount from your Account. Any
other fees associated with your Account will continue to apply. You are responsible for any and all
telephone access and/or internet service fees that may be assessed by your provider.
4. Card Transactions.
4.1 Conveniences.
4.1.1 ATM Withdrawals. You can use your Card to withdraw cash from your Account at ATMs
displaying the Plus ® System or Visa name and logo.
4.1.2 Cash Advances. You can use your Card to receive money (Cash Advances) from your Account
through financial institutions that honor Cards bearing the Visa logo.
4.1.3 Purchases/Authorizations. You can use your Card to buy goods and services (Purchases) from
merchants honoring Visa, to authorize others to place a hold on your Available Balance to ensure
future payment, and to make balance inquiries.
4.2 Out-of-Network Surcharges. These may be imposed for ATM Transactions and balance inquiries.
4.3 Cancellation of Card. The Card can be canceled by any of us at any time without prior notice and
will remain the property of the Bank. Also, your Card will be canceled effective with the closing of
your Account.
4.4 Foreign Currency. Card Transactions made in a foreign currency are converted into U.S. dollar amounts
by Visa using its then-current procedure and rate. At this time, the rate is generally either a wholesale
market or government-mandated rate in effect the day before the Transaction processing date. The
conversion rate used on the processing date may differ from that in effect on the Transaction or periodic
statement posting date.
4.5 Restrictions on Certain Transactions.
4.5.1 You may not use the Checks, Card, or Billpay Service to purchase securities.
4.5.2 You may not use the Card for internet gambling.
4.5.3 Use of the Card for illegal activities is prohibited.

5. Check Transactions.
5.1 Checkwriting Application and Checks. If you have requested Checkwriting privileges for your Account,
Vanguard Brokerage must first approve your application and will then provide you with Checks.
We may refuse any withdrawal that you attempt on forms not approved by us or by any method we do
not specifically permit.
Each Check must be properly completed and signed by an authorized signer (as described below).
We strongly suggest that you date Checks with a current date. We will not be liable to you for any that
are postdated, stale-dated, or do not bear a date. If you do not wish us to pay a Check you have issued,
place a stop payment order with us. Please refer to Section 5.8 Stop Payments—Checks.
5.2 Authorized Signers. In this Agreement, the words “authorized signer” mean any of the
following persons:
Any person (other than a ward, conservatee, or beneficiary) listed on a signature card, application,
resolution, or certificate of authority as being authorized to make withdrawals by Check or otherwise
from your Account;
Any person who has a “power of attorney” or is an attorney-in-fact, agent, guardian, personal
representative, trustee, custodian, or acting in some other fiduciary capacity (collectively, an “agent”)
for an owner;
Any person that you authorize to make withdrawals by Check or otherwise from your Account; or
Any person to whom you make your Checkbook or your Checking account number available.
The words “owner” and “owners” mean all persons (other than a ward, conservatee, or beneficiary)
listed on a signature card or application, but not persons who are authorized signers only because they are
acting as an agent. Each of BNY Mellon and the Bank is authorized to follow the directions of your agent
regarding your Account until it receives written notice that the agency or fiduciary relationship has been
terminated and has had reasonable time to act upon that notice. We will not be liable to you in any way
if your agent misapplies any of the funds from your Account. We have the right to review and retain a
copy of any power of attorney, agency agreement, trust agreement, court order, or other document that
has established the agency or other fiduciary relationship. For corporate, limited liability company, and
partnership accounts, the corporation, limited liability company, or partnership is the “owner.”
5.3 Multiple Required Signature Accounts. If you (a) have specified that some or all Checks must be signed
by more than one person, (b) have specified that the authorized signers for Checks in one category are
different than those for another, or (c) use Checks that require multiple signatures, you acknowledge that
those restrictions are for your internal use only and do not bind us even if you have made us aware of
them in writing or otherwise. Vanguard Brokerage reserves the right to refuse to allow persons to open
Accounts with these types of restrictions.
5.4 Facsimile Signatures. You may wish to use a facsimile signature stamp or other mechanical device to
sign Checks or other orders relating to your Account. If you do, we will, without contacting you, debit the
Account for items bearing an imprint that looks substantially like your authorized mechanical signature,
whether or not such items bear the actual stamp. You agree to notify us and give us a sample imprint if
you plan to use such a device. If you do not, this section still applies. You are responsible for the security
of any such device. None of us will be responsible for payment of unauthorized items bearing an
imprint from or similar to your authorized mechanical signature.
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5.5 Check Transactions. Checks can be used for or may result in the following Transactions:
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Checkwriting capabilities; and
Electronic Funds Transfers (e.g., certain Transactions via the Automated Clearing House).
5.6 Copies of Canceled Checks. We will not return to you Checks that have been paid against your
Account. At your request, we will provide you with photocopies, image copies, or other Account
documentation if they are available to us under our record retention policies. If you request a copy,
we may impose a processing fee.
5.7 Refusing Payment on Your Checks. If one of your Checks is presented for payment and sufficient funds
are not available in your Account, or if the Check is not properly signed or contains some other irregularity,
we may refuse payment and return the Check to the person who presented it. You acknowledge that it is
difficult or impossible for us to verify whether an endorsement by a corporation, other business entity, or
someone other than the person presenting a Check for payment is valid.
5.8 Stop Payments—Checks.
a) Checks. These provisions apply to Checks only.
b) Oral and Written Orders. You are generally permitted to make stop payment orders orally, such as
by telephone. To request a stop payment, please call Vanguard Brokerage at 800-992-8327. The service
representative will tell you what information is needed. If you provide your order in writing, you must
provide the following information to Vanguard Brokerage: Checkwriting number; amount; Check
number; name of party to be paid; date; and your name and address.
The stop payment information must be exact since these orders are handled by computers.
We cannot assure you that an inexact order will be effective, and we will not be responsible
for failure to stop payment.
c) Who and For How Long. You may stop payment on any Check whether you sign it or not. Your
order is generally effective for only six months. We are not obligated to notify you when it expires.
Unless you renew the stop payment for another six months, the Check may be paid even though it is
stale. We will accept stop payment orders from any person with signing authority on your Account,
regardless of who wrote the Check. To reverse a stop payment request, you must contact Vanguard
Brokerage, not BNY Mellon or the Bank. As a security measure, BNY Mellon and the Bank will
accept reverse requests only from Vanguard Brokerage.
d) Indemnity. If you stop payment on an item and any of us incurs any damages or expenses because of
this, you agree to indemnify us for those damages or expenses, including attorneys’ fees. You assign
to each of us all rights against the payee or any other holder of the item. You agree to cooperate with
each of us in any legal actions that we may take against such persons. You should be aware that anyone
holding the item might be entitled to enforce payment against you despite the stop payment order.
If a Check Transaction is inadvertently permitted despite a stop payment order, the following rules
will apply:
You will have to prove to BNY Mellon and the Bank that you have suffered a loss and, if so, the
amount of the loss;
BNY Mellon and the Bank will be able to enforce any rights that the original payee or any other person
who held the Check had against you; and
The Account will not be recredited until you prove your loss and we are satisfied that we are required
by law to do so.

e) Cutoff Time. BNY Mellon and the Bank must receive a stop payment order in time to give them a
reasonable opportunity to act on it and before their stop payment cutoff time. The law provides additional
limitations on BNY Mellon’s and the Bank’s obligation. (For example, you cannot stop payment on an item
that has already been paid.)
f) Charges. Stop payment orders are subject to our current charge for that service.
5.9 Inconsistent Amounts. Checks are processed by computers. The Check amount in numerals is the one
read by the computer. You agree that if the Check amount in words is different, we may charge against
your Account the amount in numbers.
5.10 Consumer Electronic Check Re-presentment.
a) General. If you write a Check on a personal account that is returned unpaid because of insufficient
or uncollected funds, the depositor of the Check or the depositor’s bank may resend (“re-present”)
it electronically. That is, the depositor or the depositor’s bank may send the Bank an electronic
instruction (“electronic re-presented Check”) to charge your Account in the amount of the Check.
b) Handling. If BNY Mellon receives an electronic re-presented Check from the depositor or the
depositor’s bank, via the Bank, BNY Mellon will pay or return the Check as if the original version were
being re-presented to it. The part of this Agreement titled “Electronic Funds Transfers” will not apply.
c) Eligibility. For an electronic re-presented Check to be charged to your Account, all of the following must
be true:
It must relate to a paper Check on a personal account that the Bank returned unpaid because of
insufficient or uncollected funds;
The paper Check must not have contained an unauthorized signature or an alteration and must not
have been a counterfeit;
You must not have placed a stop payment on the paper Check after the Bank returned it unpaid but
before it was collected electronically;
The paper Check must have been less than $2,500 in amount;
The paper Check must have been dated 180 days or less before the date on which the electronic
re-presented Check is sent to the Bank;
The electronic re-presented Check must be for the face amount of the paper Check only and may not
include any collection fee charged by the depositor, the depositor’s bank, or a collection agency;
The payee of the paper Check must have given you notice that, if the Check was returned unpaid
because of insufficient or uncollected funds, it could be collected electronically;
The electronic re-presented Check must have been sent to the Bank no more than twice after the
first time the Bank returned the paper Check or no more than once after the second time;
The electronic re-presented Check must be an “item” as defined in Revised Article 4 of the UCC
(1990 Official Text);
It must contain a preprinted serial number;
It must indicate on the face of the document that the item was returned due to “not sufficient funds,”
“NSF,” “uncollected funds,” or comparable language; and
It must be drawn on a consumer account.
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You may have the right to cause us to reverse any ineligible or unauthorized electronic represented
Check that we charged to your Account. If you want to do so because you placed a stop payment
on the paper Check after the Bank returned it unpaid but before it was collected electronically, you
must notify Vanguard Brokerage within 15 days after we send or make available to you the periodic
statement that reflects payment. If you want to reverse an electronic represented Check for any other
reason, you must give Vanguard Brokerage an affidavit within 15 days after we send or make available
to you the periodic statement that reflects payment of that electronic represented Check. In your affidavit,
you must declare and swear under oath that the electronic represented Check was ineligible or
unauthorized. If Vanguard Brokerage receives your notice or affidavit within the 15-day period, we
will recredit your account with the amount of the charge. Write to Vanguard Brokerage at:
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
d) Stop Payment. If you wish to stop payment of any electronic represented Check, you must follow the
procedures contained in the section for stopping payment of Checks, not Electronic Funds Transfers.
5.11 Insufficient Funds. If one of your Checks is presented for payment and sufficient funds are not available
in your Account, Vanguard Brokerage may cause the Bank (via BNY Mellon) to pay or refuse to pay any or
all such items in our discretion and may also charge your Account a service charge. You have no right to
request that any certain item be paid, and none of us has any responsibility for paying or returning any
item requested. If your Account is overdrawn for any reason, you agree to deposit sufficient funds to cover
the overdraft and our service charge immediately.
A determination of your Available Balance may be made at any time between the receipt of such
presentment or notice and the time of payment or return of the item or debit, and no more than one
such determination need be made. Vanguard Brokerage will determine your Available Balance based
on information provided from time to time by BNY Mellon, which may not be accurate at the time a
particular item is presented to BNY Mellon. You authorize BNY Mellon and/or the Bank to return items for
insufficient funds based on information provided by Vanguard Brokerage.
If there are sufficient funds to cover some but not all of your Transactions, Vanguard Brokerage will allow
those Transactions that can be paid, in any order convenient to us. If, in our sole discretion, we choose
to allow Transactions for which sufficient funds are not available, you agree to repay us immediately the
amount of the funds advanced to you. We may also assess your Account a service charge. At no time
shall we be required to allow you to overdraw your Account even if we had allowed such activity on one
or more prior occasions.
You agree that we do not have to notify you when we refuse to pay a Check you have written,
if we pay a Check that overdraws your Account, or when we impose a fee in connection with either
of these events.
5.12 Use of Check Images and Substitute Checks.
You agree that we may debit your Account for a Check image of an original Check presented for
payment or collection without receipt or review of the original Check. In our sole discretion, we may
return to a presenting bank, returning bank, or paying bank or credit to your Account a paper copy or
paper representation of an original Check (including without limitation an image replacement document
or IRD, or a photocopy) drawn on or returned to your Account that does not otherwise meet the technical
or legal requirements for a substitute Check.
You agree that a Check image that is received or created by the Bank in the Check deposit, collection,
or return process shall be considered a “Check” and/or an “item” for all purposes under this Agreement
and applicable law.

In addition, a Check that you write may be truncated in the collection process and replaced with a
substitute. You authorize us to pay, process, or return a substitute Check in the same manner as a
“Check” or “item” under this Agreement. Substitute Checks are governed under the Check Clearing for
the 21st Century Act (“Check 21 Act”) and the terms of this Agreement to the extent not modified by
the Check 21 Act. Nonetheless, you understand that your Checks are drawn on an omnibus account
maintained by BNY Mellon (on behalf of Vanguard Brokerage) with the Bank and that as a result,
you are not considered a “consumer” as that term is used in the Check 21 Act.
You agree to indemnify and hold harmless us, our employees, and agents from any loss, claim, damage,
or expense that you or any other person may incur directly or indirectly as a result of any action taken by
us to process a Check image or substitute Check instead of the original Check, including the destruction
of the original Check, as described above, to the extent permitted by applicable law.
5.13 Bank Branches. The Bank need not pay any Check presented at a PNC Bank branch office. The Bank
reserves the right to refuse or to impose a charge on anyone who asks the Bank to cash a Check that
you have written. Even if your Check is otherwise properly payable, we will not be liable to you for
dishonor of your Check or otherwise as a result of such refusal.
5.14 Our Duty of Care. Our duty of care to you is satisfied if reasonable banking procedures are followed.
Unless we have specifically agreed with you in writing, our duties will not include monitoring nonstandard
instructions or other legends appearing on Checks. We shall be deemed to have exercised ordinary care
as to your signature if we process your Check by automated means only (so as to clear the largest
number of checks at the lowest cost to customers) or if any unauthorized signature or alteration is so
skillfully made that a reasonably careful person would not readily detect it. A clerical error or mistake in
judgment is not to be considered a failure to meet the duty of care.
6. Billpay Service. Important: If more than one person is authorized to sign on the Account, you authorize us
to establish the Billpay Service and process any Billpay Transaction at any time upon the authorization of any
one account owner or authorized signer identified on the appropriate account documentation—even if you
have signed documentation on file with us that states you require more than one signature to act on
your Account.
6.1 Bill Payment Scheduling. The earliest possible Scheduled Payment Date for each Payee (typically four
[4] or fewer Business Days from the current date) will be designated within the application when you are
scheduling the payment. You must select a Scheduled Payment Date that is no later than the actual Due
Date reflected on your Payee statement unless the Due Date falls on a non-Business Day. In that case,
you must select a Scheduled Payment Date that is at least one Business Day before the actual Due Date.
Scheduled Payment Dates should be prior to any late date or grace period. In some cases beyond the
control of Vanguard Brokerage and/or the Billpay Provider, payment may be made by means of a check
mailed to the Payee via U.S. mail rather than by electronic transfer. In such cases, the check may take up
to eight [8] days to be received by the Payee. To ensure that your payment is received by the Due Date,
we recommend that you select a Scheduled Payment Date that is at least eight [8] Business Days before
the actual Due Date.
6.2 Billpay Service Guarantee. Due to circumstances beyond the control of Vanguard Brokerage and/or the
Billpay Provider, particularly delays in handling and posting payments by Payees or financial institutions,
some transactions may take longer to be credited to your Payee account. We will bear responsibility for
any late-payment-related charges up to $50 should a payment post after its Due Date as long as the
payment was scheduled in accordance with the guidelines described in Section 6.1 above.
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6.3 Payment Authorization and Payment Remittance.
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6.3.1 By providing us with names and account information of Payees to whom you wish to direct
payments, you authorize us to follow the Payment Instructions that we receive through the
Billpay Service. In order to process payments more efficiently and effectively, we may edit or
alter payment data or data formats in accordance with Payee directives.
6.3.2 When we receive a Payment Instruction, you authorize us to debit your Payment Account
and remit funds on your behalf so that the funds arrive as close as reasonably possible to the
Scheduled Payment Date designated by you. You also authorize us to credit your Payment Account
for payments returned to us by the United States Post Office or Payee, or payments remitted to
you on behalf of another authorized user of the Billpay Service.
6.3.3 We will use our best efforts to make all your payments properly. However, we shall incur no
liability and the Billpay Service Guarantee shall be void if we are unable to complete any payments
initiated by you because of the existence of any one or more of the following circumstances:
If, through no fault of ours, your Payment Account does not contain sufficient funds to complete
the Billpay Transaction or the Billpay Transaction would exceed the credit limit of your overdraft
protection through a margin account, if any;
The Billpay Service website is not working properly and you know or have been advised by us
about the malfunction before you execute the Billpay Transaction;
You have not provided us with the correct Payment Account information or the correct name,
address, phone number, or account information for the Payee; and/or
Circumstances beyond our control (such as, but not limited to, fire, flood, or interference from
an outside force) prevent the proper execution of the Billpay Transaction and we have taken
reasonable precautions to avoid those circumstances.
Provided none of the foregoing exceptions are applicable, if we cause an incorrect amount of
funds to be removed from your Payment Account or cause funds from your Payment Account
to be directed to a Payee that does not comply with your Payment Instructions, we shall be
responsible for returning the improperly transferred funds to your Payment Account, directing
to the proper Payee any previously misdirected Billpay Transactions, and, if applicable, any
late-payment-related charges.
6.4 Payment Methods. We reserve the right to select the method by which to remit funds on your behalf
to your Payee. These payment methods may include but may not be limited to electronic payment,
electronic-to-check payment, or laser draft payment.
6.5 Payment Cancellation Requests. You may cancel or edit any Scheduled Payment (including recurring
payments) at no charge by following the directions at the Billpay Service website. Once we have begun
processing a payment, it cannot be canceled or edited; a stop payment request must be submitted.
6.6 Stop Payment Requests. Our ability to process a stop payment request will depend on the payment
method, whether or not a check has cleared, and whether we have a reasonable opportunity to
act after a payment has been processed. If you desire to stop any payment that has already been
processed, you must contact Vanguard Brokerage at 800-992-8327. Although we will make every effort
to accommodate your request, we will have no liability for failing to do so. We may also require you to
present your request in writing within 14 days. The charge for each stop payment request will be the
current charge listed in the Vanguard Brokerage Services Commission and Fee Schedules.
6.7 Prohibited Payments. Payments to Payees outside of the United States or its territories through the
Billpay Service are prohibited.

6.8 Exception Payments. Tax payments and court-ordered payments may be scheduled through the Billpay
Service; however, such payments are discouraged and at your own risk. In no event shall we be liable
for any resulting claims or damages. The Billpay Service Guarantee as it applies to any late-paymentrelated
charges is void when these types of payments are scheduled and/or processed by us. We have
no obligation to research or resolve any claim resulting from an exception payment. All research and
resolution for any misapplied, misposted, or misdirected payments will be your sole responsibility.
6.9 Failed or Returned Transactions; Overdraft Protection. In using the Billpay Service, you are requesting
us to make payments for you from your Payment Account. If we are unable to complete a requested
Transaction for any reason associated with your Payment Account (for example, your Available Balance is
insufficient to cover it), the Billpay Transaction may not be completed. In some instances, you will receive
a return notice from us. In each such case, you agree that:
a) You will reimburse us immediately upon demand the Billpay Transaction amount indicated in the
return notice;
b) For any amount not reimbursed to us within 15 days of the initial notification, you will pay us a late
charge equal to 1.5% monthly interest or the legal maximum, whichever rate is lower; and
c) We are authorized to report the facts concerning the return to a credit-reporting agency.
If a Billpay Transaction results in an overdraft situation and you have established overdraft protection by
means of a margin account, you may be required to deposit more money or securities in your Payment
Account. If you are unable to do so, or if the Billpay Transaction exceeds your margin cash available,
Vanguard Brokerage may be required to sell all or a portion of your pledged assets. You will also be
subject to margin interest as disclosed in your margin agreement.
6.10 Address or Payment Account Changes. It is your sole responsibility to ensure that the contact
information maintained in your user profile on the Billpay Service website is current and accurate.
This includes, but is not limited to, name, address, phone number(s), and e-mail address(es). Changes
can be made either through the Billpay Service website or by contacting Vanguard Brokerage at
800-992-8327. Any changes in your Payment Account should also be made in accordance with
the procedures outlined in the Billpay Service website’s Help area. All changes made are effective
immediately for scheduled and future payments paid from the updated Payment Account information.
We are not responsible for any payment processing errors or fees incurred if you do not provide accurate
Payment Account or contact information.
6.11 Billpay Service Termination, Cancellation, or Suspension. In the event you wish to cancel the Billpay
Service, you may do so through the Billpay Service website or you may contact Vanguard Brokerage via
one of the following methods.
Telephone us at 800-992-8327 on business days from 8 a.m. to 10 p.m. or on Saturdays from
9 a.m. to 4 p.m., Eastern time; or
Write to us at:
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
Any payment(s) we have already processed before the requested cancellation date will be completed.
Scheduled Payments including recurring payments will not be processed. We may terminate or suspend
service to you at any time. Neither shall affect your liability or obligations under this Agreement.
6.12 Payee Limitation. We reserve the right to refuse to pay any Payee. We will notify you promptly.
This notification is not required if you attempt to make a prohibited or exception payment under this
Agreement.
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6.13 Returned Payments. In using the Billpay Service, you understand that Payees and/or the United States
Post Office may return payments to us for various reasons, including but not limited to Payee’s
forwarding address expired, account number not valid, unable to locate account, or account paid in full.
We will use our best efforts to research and correct the payment and return it to your Payee or void it
and credit your Payment Account. You may receive notification from us in these events.
6.14 Information Authorization. Your enrollment in the Billpay Service may not be fulfilled if we cannot
verify your identity or other necessary information or based upon a review of historical records relating to
your Account. Through your enrollment in the Billpay Service, you agree that the Billpay Provider reserves
the right to request a review of your credit rating at its own expense through an authorized bureau. In
addition, you agree that we reserve the right to obtain financial information regarding your account from
a Payee (for example, to resolve payment posting problems or for verification).
6.15 Bill Delivery and Presentment. This feature is for the presentment of electronic bills only; it is your
sole responsibility to contact your Payees directly if you do not receive your bills or account statements.
In addition, if you elect to activate one of the Billpay Service’s electronic bill options, you also agree to
the following:
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6.15.1 Information provided to the Payee. We are unable to update or change your personal information,
including, but not limited to, name, address, phone number(s), and e-mail address(es), with the
electronic Payee. You will need to contact the Payee directly. Additionally, it is your responsibility
to maintain all user names and passwords for all electronic Payee sites. You also agree not to use
someone else’s information to gain unauthorized access to another person’s bill.
6.15.2 Activation. Upon your activation of the electronic bill delivery and presentment feature, we
may notify the Payee of your request to receive electronic billing information. The timing of
presentment of your first electronic bill may vary and may take up to 60 days, depending on the
billing cycle of each Payee. Additionally, your ability to obtain a paper copy of your statement(s) is
at the sole discretion of the Payee. While your request is being activated, it is your responsibility
to keep your accounts current. Each Payee reserves the right to accept or deny your request to
receive electronic bills.
6.15.3 Notification. We will use our best efforts to present all of your electronic bills promptly.
In addition to our posting the bills on the Billpay Service website, the Payee may send an
e-mail notification to the address you provide. It is your sole responsibility to ensure that this
information is accurate. In the event you do not receive notification, it is your responsibility to
periodically log on to the Billpay Service website and check on the delivery of new electronic bills.
Notification time may vary. You are responsible for ensuring timely payment of all bills.
6.15.4 Cancellation of electronic bill notification. You and each electronic Payee reserve the right to
cancel the presentment of electronic bills at any time. The time frame for cancellation may take up
to 60 days, depending on the billing cycle of each Payee. We will notify your electronic Payee(s) as
to the change in status of your account, but it is your sole responsibility to make arrangements for
an alternative form of bill delivery. We will not be responsible for presenting any electronic bills
that are already in process at the time of cancellation.
6.15.5 Nondelivery of electronic bill(s). You agree to hold us harmless should the Payee fail to deliver
your bill(s) or statement(s). You are responsible for ensuring timely payment. Copies of previously
delivered bills must be requested from the Payee directly.
6.15.6 Accuracy and dispute of electronic bill. We are not responsible for the accuracy of your
electronic bill(s). We are only responsible for presenting the information we receive from the Payee.
Any discrepancies or disputes regarding your bill summary or detail must be addressed
with the Payee directly.

This Agreement does not alter any liability or obligations that currently exist between you and
your Payees.
6.16 Exclusions of Warranties; Limitation of Liability.
6.16.1 The Billpay Service website and related documentation are provided “as is” without
warranty of any kind, either express or implied, including but not limited to the implied
warranties of merchantability and fitness for a particular purpose.
6.16.2 This Section 6 constitutes our entire liability and your exclusive remedy with respect to
the Billpay Service. In no event will we be liable for any direct, indirect, special, incidental,
consequential, or exemplary damages, including lost profits (even if advised of the possibility
thereof) arising in any way out of the installation, use, or maintenance of the Billpay
Service website.
7. Automated Clearing House and Other Fund Transfers.
7.1 Money can be credited to or debited from your Account because of ACH or other money transfer
entries. These credits and debits are normally subject to additional rules of the money transfer system
that processes them, such as the rules of the National Automated Clearing House Association and local
ACH operating rules.
7.2 An ACH credit entry to your Account is provisional until the Bank receives final settlement through a
Federal Reserve Bank or otherwise receives payment as provided in Section 403(a) of Article 4A of the
Uniform Commercial Code. The Bank is entitled to a refund of the credit entry if it does not receive final
settlement or payment. In that case, the person who originally sent the credit entry will be considered
not to have paid you.
7.3 In addition, unless required by applicable law, Vanguard Brokerage will generally not give you notice of
the receipt of an entry by the Bank. Entries will, however, be included on your Account statement.
7.4 For instructions on how to make stop payment orders on preauthorized ACH payments, see Section 8.5.
8. Additional Terms and Conditions of Electronic Funds Transfers. These apply only to Electronic Funds
Transfers (for example, Card and ACH Transactions) and only to the extent that Regulation E requires.
8.1 Limits on Dollar Amount of Transactions. The ATM you use may have transactional or daily limits
on the amount of cash that can be obtained. Separately, there is a $500 (or your Available Balance, if
less) maximum ATM Withdrawal limit per Banking Day. A temporary $100 limit per Banking Day may
be imposed for security purposes or when the Transaction volume in your Account exceeds normal
conditions. There may be other limitations stated in this Agreement or in other agreements between
you and Vanguard Brokerage.
8.1.1 Unless a higher amount is authorized, your Card Transactions are limited to $10,000 (or your
Available Balance, if less) per Banking Day. ATM Withdrawals, Cash Advances, Purchases, and
Authorizations all count against this limit.
8.2 Limits on Frequency of Transactions. In addition, we reserve the right to impose a limit on the
number of Card Transactions you can make on any Banking Day. For the purpose of maintaining security,
we will not disclose that limit, except that you will be allowed to make at least five Transactions under
normal conditions.
8.3 Retention of the Card. Your Card may be retained by any ATM, merchant, or participating financial
institution if any of the following conditions is met:
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The PIN is wrong after three attempts (certain ATMs may limit you to fewer attempts).
You exceed the limits on dollar amounts and/or frequency of Transactions.
Your Card was reported lost or stolen.
Your Account has been closed.
Your Card has expired or was replaced.
The machine is not operating properly.
There are other legitimate business reasons.
8.4 Card Transaction Receipts. You will be given a receipt at the time you make Card Transactions except
for those you make by telephone, mail, or via the internet. Receipts may not be provided for Purchases
of $15 or less or for those performed outside the United States. Card Transactions will also be reflected on
your Account statement. See Section 8.6.3 for information on what to do if you believe a Transaction
record is wrong.
8.4.1 Merchants generally maintain receipts of Card Transactions (excluding PIN-based transactions) for
12 months; however, they are not required to provide receipts unless requested in connection
with fraud investigations or other legal purposes. If you call Vanguard Brokerage, we will attempt
to obtain copies of the receipts. This may involve a third-party charge.
8.5 Stop Payment Orders of Preauthorized ACH Payments (other than Billpay Transactions). You can
stop regular ACH payments out of your Account at any time. Simply call or write Vanguard Brokerage in
time for us to receive your request three Business Days or more before the payment is scheduled to be
made (our phone number and address are provided in Section 8.6.4). We may require you to put your
request in writing and get it to us within 14 days after your call. See Section 6.6 for information on
stop payment requests for Billpay Transactions.
8.5.1 Liability for Failure to Stop Payment of Preauthorized ACH Transfers. If you order Vanguard
Brokerage to stop such a payment three Business Days or more before the transfer is scheduled
and we do not do so, we will be liable for your losses or damages.
8.6 Problem Prevention and Resolution.
8.6.1 Taking a few simple steps can help prevent many problems. To protect your Account and limit
your liability, we recommend that you:
Do not provide anyone with your PIN or Billpay password.
Do not write your PIN on your Card.
Do not carry your PIN and Card together in your wallet.
Do not tell anyone your PIN or Billpay password—not even someone from BNY Mellon, the
Bank, Billpay Provider, or Vanguard Brokerage.
8.6.2 Loss or Theft of Card or Unauthorized Transactions. You must tell Vanguard Brokerage at once
if you believe your Card has been lost or stolen or that an unauthorized person may know your PIN or
Billpay Service website password. Calling immediately is the best way to keep your possible losses
down. You could lose all the funds in your Account (plus your maximum overdraft line of credit). If you
tell us within two Business Days after you learn of the loss or theft, you can lose no more than $50.
If you do not tell us within that time and Vanguard Brokerage can prove it could have stopped the
transaction if you had told us, you could lose as much as $500. With respect to ACH Transactions, you
will generally not be liable for Unauthorized Transactions unless you fail to notify us within the time
period described in the next paragraph.

8.6.3 Inaccurate Account Statement. If you think your Account statement or Transaction record is wrong
or you need more information about your Account or any statement, let Vanguard Brokerage know
at once. If you do not notify us within 60 days after the first Account statement on which the error
or problem appeared was mailed to you, you may not get back any money you lose after 60 days if
Vanguard Brokerage can prove that it could have stopped someone from taking the money had you
notified us in a timely manner. If there was a good reason (such as a long trip or a hospital stay) that
kept you from telling us, we will extend the time period.
8.6.4 Notification Methods.
8.6.4.1 Calling Vanguard Brokerage is the quickest way to alert us to a problem. You can reach us
at 800-992-8327 on Business Days from 8 a.m. to 8 p.m., Eastern time (limited services are
available at other times).
8.6.4.2 We may, however, request that you also notify us of your complaint or question in writing
within ten Business Days. Our mailing address is:
Vanguard Brokerage Services
P.O. Box 1170
Valley Forge, PA 19482-1170
Vanguard Brokerage will need all of the following information:
Your name and Account number.
A description of the error or Transaction in question, explaining as clearly as possible
why you believe it is an error or why you need more information.
The dollar amount of the Transaction and, if different, the amount of the suspected error.
8.6.5 Timing of the Error Resolution Process. Except as otherwise stated in this Agreement, we will
determine within ten Business Days after Vanguard Brokerage hears from you whether an error
occurred and will correct any error promptly. If we need more time, however, we may take up to
45 calendar days to investigate your complaint or question. In this event, Vanguard Brokerage will
generally recredit your Account within ten Business Days for the amount you think is in error so
that you will have the use of the money during the time it takes us to complete our investigation.
If Vanguard Brokerage asks you to put your complaint or question in writing and does not receive
it within ten Business Days, we need not recredit your account or may reverse any credit previously
made. Margin Accounts need not be recredited.
8.6.5.1 For Foreign Transactions. For Transactions initiated outside the United States, the applicable
time period for investigations is 90 calendar days.
8.6.5.2 For Point-of-Sale Transactions. For Point-of-Sale Transactions (that is, Purchases and
Cash Advances), the applicable time period for investigations is 90 calendar days.
8.6.5.3 For New Accounts. For Accounts that have been open for 30 calendar days or less, the
applicable time periods for actions stated in Section 8.6.5 are 20 Business Days instead of
10 Business Days and 90 calendar days instead of 45 calendar days.
8.6.5.4 For Notification of the Findings. In any case, Vanguard Brokerage will tell you the results
within three Business Days after we complete our investigation. If we decide that there was
no error, we will reverse the applicable credit and send you a written explanation. You may
ask us for copies of the documents that we used in the investigation.
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8.7 Our Liability for Failure to Complete Transactions.
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8.7.1 If we do not complete an Electronic Funds Transfer to or from your Account on time or in
the correct amount according to this Agreement, we will be liable for your losses or damages,
with some exceptions. We will not be liable if any of the following apply:
Through no fault of ours, you do not have a sufficient Available Balance to make the Transaction.
Any ATM, other device, Card, Billpay Service website, or computer system was not working
properly and you knew about the breakdown when you started the Transaction.
The ATM or other device you are using for the Transaction does not have enough cash.
Your Account is frozen (for example, because of a court order or other similar reason) and we are
not permitted to make the Transaction.
Circumstances beyond our control (such as a fire or flood) prevent the Transaction despite the
reasonable precautions that we have taken.
You fail to enter your correct PIN after the maximum number of attempts permitted.
You fail to use the ATM, other device, Card, Billpay Service website, or computer system
in accordance with instructions.
We have limited or have refused to complete Card, ACH, or Billpay Transactions for
security reasons.
We have reason to believe that the requested Transaction is unauthorized.
8.7.2 Additional exceptions may be stated elsewhere in this Agreement or in your other agreements
with Vanguard Brokerage or that you are otherwise notified of by BNY Mellon, the Bank, Billpay
Provider, or Vanguard Brokerage. We will not be responsible for any person’s actions in refusing
to honor or accept your Card or in taking possession of your Card. In any case, we will be liable
only for actual proven damages if the failure to make the Transaction results from a bona fide
error by us despite our procedures to avoid such errors.
8.8 Preauthorized Credits. If you have arranged to have direct deposits made to your Account at least
once every 60 days from the same person or company, the person or company making the deposit
should notify you every time it sends us the money.
8.9 Accounts That Are Not Consumer Accounts/Non-Personal Accounts.
If you are not a “consumer” as defined in Regulation E, neither Vanguard Brokerage nor the Bank
is required to respond to your questions about Transactions within the time periods specified in this
Section 8, and the limitations on your liability for Unauthorized Transactions described above do not
apply. Similarly, the parameters surrounding liability, confidentiality, and documentation requirements
with respect to Electronic Fund Transfers outlined in this Agreement apply only with respect to
Accounts established primarily for personal, family, or household purposes.
9. Confidentiality.
9.1 Vanguard Brokerage, Billpay Provider, BNY Mellon, and the Bank will not reveal any information to third
parties (other than each other) about your Account and your Transactions except (1) where it is necessary
for completing your Transaction or providing any related benefits to you, (2) to verify the existence and
condition of your Account for a third party such as a credit bureau, merchant, or Payee, (3) to comply with
laws or with orders or subpoenas of government agencies or courts, (4) if you give us written permission,
(5) to other persons and entities in order to resolve disputes arising from Transactions, or (6) in the
circumstances covered by Vanguard’s Privacy Policy, as updated or amended from time to time.

10. Joint Accounts.
10.1 Unless you notify Vanguard Brokerage otherwise and provide such documentation as we require, joint
Accounts shall be held by you jointly with rights of survivorship. Each joint tenant irrevocably appoints the
other as attorney-in-fact to take all action on his or her behalf and to represent him or her in all respects
in connection with this Agreement. We shall be fully protected in acting upon the instructions; sending
confirmation advice, notices, or other communications; or otherwise dealing with either of you.
Each of you shall be liable, jointly and individually, for any amounts due to us pursuant to this Agreement,
whether incurred by either or both of you.
10.2 If “you” shall consist of more than one individual, the obligations of all such persons under this
Agreement shall be joint and several. Each joint Accountholder has authority, acting individually and
without notice to the other, to deal with us as fully and completely as if each is the sole Accountholder.
We are authorized to follow the instructions of any joint Accountholder. We are not responsible for
determining the purpose or propriety of an instruction we receive from any Accountholder or for
the disposition of payments or deliveries among joint Accountholders. Any notice we send to one
Accountholder will be deemed notice to all.
11. Miscellaneous.
11.1 Scope and Transferability. This Agreement shall cover all aspects of your Account described herein
and shall inure to the benefit of our successors whether by merger, consolidation, or otherwise,
and assigns, and we may transfer your Account to our respective successors and assigns, and this
Agreement shall be binding upon your heirs, executors, administrators, successors, and assigns.
11.2 Extraordinary Events. To the fullest extent allowable under law, we are not responsible and you agree
not to hold us liable for losses caused directly or indirectly by conditions beyond our control, including
but not limited to: war, natural disaster, terrorism, government restriction, exchange or market rulings,
strikes, interruptions of communications or data processing services, news or analysts’ reports, market
volatility, or disruptions in orderly trading on any exchange or market.
11.3 Nature of Obligations. The obligations of Vanguard Brokerage, Billpay Provider, BNY Mellon, and the
Bank are set forth in this Agreement. None is liable for the obligations of the others.
11.4 Waiver, Assignment, and Notices. Neither our failure to insist at any time upon strict compliance with
this Agreement or any of the terms hereof nor any continued course of such conduct on our part shall
constitute or be considered a waiver by us of any of our rights or privileges hereunder. Any assignment
of your rights and obligations hereunder or your interest in any property held by or through Vanguard
Brokerage without obtaining the prior written consent of an authorized representative of Vanguard
Brokerage shall be null and void. Notices and other communications (including, without limitation,
margin calls) delivered, faxed, sent by express delivery service, or mailed to the address provided by
you shall, until Vanguard Brokerage has received notice in writing of a different address, be deemed to
have been personally delivered to you.
11.5 Separability. If and to the extent any term or provision herein is or should become invalid or
unenforceable, then (1) the remaining terms and provisions hereof shall be unimpaired and remain in
full force and effect, and (2) the invalid or unenforceable provision or term shall be replaced by a term
or provision that is valid and enforceable and that comes closest to expressing the intention of such
invalid or unenforceable term or provision.
11.6 Headings. The headings of the provisions hereof are for ease of reference only and shall not affect
the interpretation or application of this Agreement or in any way modify or qualify any of the rights or
obligations provided for hereunder.
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11.7 Termination of Account/Agreement. Vanguard Brokerage, BNY Mellon, the Bank, or you may
terminate this Agreement, including the use of Checks, Cards, or other Services, if applicable, at any
time. You shall remain responsible for authorized charges that arise before or after termination. In the
event of termination for whatever reason, you shall promptly destroy all Cards and unused Checks.
Failure to do so may result in a delay in Vanguard Brokerage complying with your instructions regarding
the disposition of assets.
11.8 Representations and Amendments. You agree that we shall have the right to amend this Agreement
at any time by sending notice to you. An amendment shall be effective as of the date we establish. If
we make any changes to this Agreement that will affect you adversely (by increasing costs or liability
to you, or limiting access to your Account), we will notify you prior to the change as required by law.
The change will automatically become effective unless, prior to the effective date, you notify us of your
intention to terminate your Account privileges. We reserve the right to make emergency changes for
security reasons, without prior written notice to you. You understand that additional restrictions may
apply to the Services and that additional documentation may be required by applicable law or our policies
and procedures. You agree to promptly comply with any such restrictions and requests.
11.9 Governing Law. This Agreement shall be governed by the laws of the Commonwealth of
Pennsylvania, except that all Billpay Transactions shall be governed by and construed in
accordance with the laws of the State of Georgia, without regard to its conflicts
of laws provisions.
11.10 Recording Conversations and Monitoring Electronic Communications. For our mutual protection,
you understand, agree, and expressly consent to Vanguard Brokerage’s, BNY Mellon’s, and the Bank’s
electronic recording of any of your telephone conversations with them and to Vanguard Brokerage’s,
BNY Mellon’s, and the Bank’s monitoring of your electronic communications with them, including but
not limited to e-mail and facsimile transmission.
11.11 Priority of Agreements. In the event of any conflict between this Agreement and any other
agreement you have with Vanguard Brokerage Services with respect to your Account, including the
VanguardAdvantage Account Application and the Terms and Conditions of the Billpay Service website,
this Agreement will control. Notwithstanding, in the event of any conflict between this Agreement
and the Vanguard Brokerage Margin Account Agreement, the Vanguard Brokerage Margin Account
Agreement will control.

Vanguard Brokerage Margin Account Agreement
When You buy securities on margin or enter into short sales, You are borrowing money or securities from
Vanguard Brokerage Services ® (VBS ® ), a division of Vanguard Marketing Corporation (VMC), member FINRA
and SIPC, for part of Your transactions. All Securities and Other Property in Your Margin Account (Account) are
pledged as collateral to secure this loan. Margin transactions are riskier and involve the possibility of greater
loss than transactions in which You are not borrowing money. If the value of Your Securities and Other Property
declines, You may be required to deposit more assets (a “margin call”) to secure Your loan or Your Securities and
Other Property may be sold to pay down or pay off Your loan without prior notice and at a loss or at lower prices
than under other circumstances.
You agree to carefully consider your own financial condition, tolerance for risk, and investment objectives, as well
as market conditions, before You decide to use margin credit or short account features. By applying for a margin
account and/or placing an order on margin, You acknowledge that You have carefully considered all of these factors,
along with the terms of this Vanguard Brokerage Margin Account Agreement (Margin Agreement), and have
decided that margin financing is appropriate for You. You also acknowledge that VBS may, in its discretion,
transfer Securities and Other Property held in Your other accounts with Us, including Your cash account, to
Your Margin Account, and You understand that all transactions executed through and all Securities and Other
Property purchased or deposited with VBS will be recorded in the Margin Account. In addition, You acknowledge
that purchases of open-end mutual funds and Vanguard ETFs ® will settle in Your cash account and after 30 days
be journaled into Your Account. All Securities and Other Property now or hereafter held in this Account may be
pledged, repledged, or otherwise used.
In consideration of Our accepting Your orders to trade on margin within Your Account, You agree that the
following terms and conditions apply to Your Account, in addition to those contained in the Vanguard Brokerage
Account Agreement (Agreement). The Margin Agreement is part of the Agreement. Unless otherwise defined in
the Margin Agreement, defined terms have the same meaning as in the Agreement. In the event any provision
of the Margin Agreement conflicts or is inconsistent with any provision of the Agreement, the provisions of the
Margin Agreement will control for matters or services related to Your Account.
1. Payment for Transactions
You agree that You are responsible for paying for all transactions You make and all authorized transactions in
Your Account. When You purchase securities on margin, You agree to deposit the required initial equity by
the settlement date and to maintain your equity at the required levels. However, VBS reserves the right
to liquidate Securities and Other Property at any time (including on or before settlement date) depending on
market conditions. In addition, You agree to pay any debit remaining in Your Account if Your positions are
liquidated to satisfy a margin call. We may extend credit to You according to applicable laws and regulations
and Our Margin Disclosure of Credit Terms and Policies. You agree to use this credit primarily for business
and investment purposes.
2. Margin Disclosure of Credit Terms and Policies
All transactions in Your Account are subject to Our Margin Disclosure of Credit Terms and Policies.
You agree not to enter an order in Your Account until you have read and understood the Margin Disclosure
of Credit Terms and Policies.
3. Maintenance of Collateral
You agree to maintain in Your Account collateral of the type and amount required by:
Applicable Exchange rules and federal regulations,
Our Margin Disclosure of Credit Terms and Policies, or
VBS, at our discretion.
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4. Liquidation
Whenever it is necessary for Our protection or to satisfy a margin call, deficiency, debit, or other obligation owed
Us, We may (but are not required to) sell, assign, and deliver all or any part of the Securities and Other Property
securing Your obligations or close any or all transactions in Your Account or in any of Your accounts with Our
affiliates. It is Our policy to attempt to contact You, when practicable, before taking any action described in this
section. However, We reserve the right to take any such action without prior notice or demand for additional
collateral and free of any right of redemption. Any prior demand, call, or notice will not be considered a waiver
of Our right to sell or buy without demand, call, or notice. We may choose which Securities or Other Property to
buy or sell, which transactions to close, and the sequence and timing of liquidation. We may take such actions on
whatever exchange or market and in whatever manner (including public auction or private sale) that We choose in
the exercise of Our business judgment. You agree not to hold us liable for the choice of which Securities or Other
Property to buy or sell, which transactions to close, or the timing or manner of the liquidation. We may transfer
Securities and Other Property from any brokerage account in which You have an interest to any other brokerage
account in which You have an interest regardless of whether there are other Accountholders on either account if
We determine that your obligations are not adequately secured or to satisfy a margin deficiency or other obligation.
You agree to pay on demand any Account deficiencies after liquidation, whether liquidation is complete or partial.
We are entitled to exercise the rights described in this section in Our sole discretion at any time, including
whenever any of the following occurs:
The equity level in Your Account falls below required minimums;
Sufficient funds or securities are not deposited to pay for transactions in Your Account;
A petition of bankruptcy or for the appointment of a receiver is filed by or against You;
An attachment is levied against any of Your brokerage accounts with us;
You die or become incapacitated or incompetent;
or
Your VBS account is closed.
5. Short Sales
You agree to designate a sell order as a short sale if, at the time You place the order, You either do not own
the security being sold or are unable to deliver it in a timely manner. You agree that short sale transactions
are subject to certain regulatory rules and cannot be executed under certain market conditions. In addition,
depending on market conditions, VBS cannot guarantee that it will have shares available to facilitate a short
sale. You agree that We may, in Our discretion and without notice, “buy in” securities to cover any short
security position in Your Account at Your expense. We may take this action either on a regular settlement,
cash, or next-day settlement basis. If You are unable to cover a short security position (either through
delivery of the security or through our buying-in the security) in enough time so We can deliver the security
to its lender (to whom We’re obligated), You agree to reimburse Us for the losses We sustain as a result of
Your failure to deliver the security.
6. Interest on Debit Balances
We will charge interest on Your debit balance according to Our Margin Disclosure of Credit Terms and Policies.
We post accrued but unpaid interest charges to Your Account each month. We compound the interest as
described in Our Margin Disclosure of Credit Terms and Policies.
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7. Pledge of Securities and Other Property
The Securities and Other Property in Your Account may be carried in the general loan of VBS and We may
pledge, repledge, hypothecate, or rehypothecate, either separately or together with Securities of other
customers, all Securities and Other Property that You, now or in the future, carry, hold, or maintain in Your
Account. The value may be greater than the amount You owe Us, and We are not obligated to retain in Our
possession and control for delivery the same amount of similar Securities and Other Property.
8. Loan Consent
You agree that Securities and Other Property held in Your Margin Account, now or in the future, may be
borrowed (either separately or together with the property of others) by Us or by others. You agree that
VBS may receive and retain certain benefits (including but not limited to interest on collateral posted for such
loans) to which You will not be entitled. You acknowledge that in certain circumstances, such borrowings
could limit Your ability to exercise voting rights or receive dividends in whole or in part, with respect to the
Securities and Other Property lent. You understand that the dividends paid on such Securities and Other
Property lent by VBS will go to the borrower. No compensation or other reimbursements will be due to
You in connection with such borrowings. However, if You are allocated a substitute payment in lieu of
dividends, You understand that such a payment may not be entitled to the same tax treatment as may have
been applied to the receipt of a dividend. You agree that VBS is not required to compensate you for any
differential tax treatment between dividends and payments in lieu of dividends. VBS may allocate substitute
payments in any manner permitted by law, rule, or regulation. Please note that any substitute payments VBS
makes are voluntary and may be discontinued at any time.
9. Required Arbitration Disclosures
The Margin Agreement contains a predispute arbitration clause. By signing an arbitration agreement,
the parties agree as follows:
All parties to the Margin Agreement are giving up the right to sue each other in court, including
the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim
is filed.
Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify
an arbitration award is very limited.
The ability of the parties to obtain documents, witness statements, and other discovery is generally
more limited in arbitration than in court proceedings.
The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint
request for an explained decision has been submitted by all parties to the panel at least 20 days prior
to the first scheduled hearing date.
The panel of arbitrators may include a minority of arbitrators who were or are affiliated with the
securities industry.
The rules of some arbitration forums may impose time limits for bringing a claim in arbitration.
In some cases, a claim that is ineligible for arbitration may be brought in court.
The rules of the arbitration forum in which the claim is filed and any amendments thereto shall be
incorporated into the Margin Agreement.
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10. Arbitration Agreement
You agree to settle by arbitration any controversy between or among you and VBS arising out of
or relating to VBS’s business or the Margin Agreement. Such arbitration will be conducted by and
in accordance with the securities arbitration rules and regulations then in effect of the Financial
Industry Regulatory Authority (FINRA) or any national securities exchange that provides a forum for
the arbitration of disputes provided that VBS is a member of such national securities exchange at the
time the arbitration is initiated. Arbitration must be commenced by service upon the other party of
written demand or written notice of intention to arbitrate, therein electing the arbitration tribunal.
In the event the undersigned does not make such election within five (5) days of such demand or
notice, then the undersigned authorizes VBS to do so on behalf of the undersigned. The award of
the arbitrator will be final and binding, and judgment on the award may be entered in any court
having jurisdiction.
No person shall bring a putative or certified class action to arbitration nor seek to enforce any
predispute arbitration agreement against any person who has initiated in court a putative class
action or who is a member of a putative class who has not opted out of the class with respect to
any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the
class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance
to enforce an agreement to arbitrate shall not constitute a waiver of any rights under the Margin
Agreement except to the extent stated herein.
11. Governing Law
The Margin Agreement and the Agreement, all transactions made in Your Account, and all matters arising in
connection will be governed by and construed and enforced in accordance with the laws of the State of New
York (regardless of the choice of law rules thereof).
12. Severability
If any provision or condition of the Margin Agreement shall be held to be invalid or unenforceable by any
court or regulatory or self-regulatory agency or body, such invalidity or unenforceability shall attach only to
such provision or condition. The validity of the remaining provisions and conditions shall not be affected
thereby, and the Margin Agreement shall be valid and enforceable as if any such invalid or unenforceable
provision or condition were not contained herein.
13. Assignment
We may assign Our rights and obligations under the Margin Agreement to any subsidiary, affiliate, or
successor by merger or consolidation without notice to You or to any other entity after thirty (30) days’
written notice to You. You may not assign Your rights and obligations under the Margin Agreement
without first obtaining Our written consent. Any assignment in violation of this provision will be void.
The Margin Agreement is binding upon You and Your heirs, executors, administrators, successors, and
permitted assigns, and it will benefit You and Your successors and permitted assigns, if any.
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14. Amendment
On prior or concurrent written notice to You, We may modify or rescind existing provisions or add new
provisions to the Margin Agreement. By not closing and/or continuing to use Your Account, You confirm
Your agreement to abide by the Margin Agreement as amended from time to time. Amendments will not
affect rights or obligations either of Us incurs before the effective date of the amendment. No prior conduct,
past practice, or oral statement by any VBS employee or agent can amend or modify this written agreement.
15. Vanguard Brokerage Account Agreement
All transactions in Your Margin Account are subject to the Margin Agreement and the Agreement in their
entireties and any other disclosures, terms, and agreements relating to Your Account or to particular features
or services offered in connection with Your Account, each as amended from time to time.
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Initial Margin Risk Disclosure Statement
Vanguard Brokerage Services (VBS) is providing this statement, in accordance with FINRA rules and
regulations, to inform You of some important facts about purchasing securities on margin and to alert You to
the risks involved with margin Securities in a margin account. Before trading Securities in Your Margin Account,
You should carefully review this Margin Risk Disclosure Statement. You should call VBS with any questions or
concerns You may have with Your Margin Account.
When You purchase Securities, You may pay for the Securities in full or You may borrow part of the purchase
price from VBS. If You choose to borrow funds from VBS, You will open a margin account with Us. The Securities
purchased are Our collateral for the loan to You. If the Securities in Your Account decline in value, so does the
value of the collateral supporting the loan. As a result, VBS can take action by issuing a margin call and/or by selling
Securities and Other Property in any of Your accounts held with VBS or any of its affiliates to satisfy minimum
equity requirements.
Before placing any trades in a margin account, it is important that You fully understand that this activity involves
a high degree of risk. These risks include, but are not limited to, the following:
You can lose more funds than You deposit into Your Margin Account. If the Securities in Your Margin
Account decline in value, You may be required to deposit additional funds or marginable Securities to
prevent VBS from selling those or other Securities in Your Account. Market conditions can magnify any
potential for loss.
You are fully liable for the funds that You have borrowed. During periods of extreme market volatility, it
is possible that the market value of the Securities in Your Margin Account (assets held as collateral) may drop
below Your loan value. If this occurs, You will be responsible for covering the deficit in Your Account. Whenever
it is necessary for our protection or to satisfy a margin call, deficiency, debit, or other obligation owed Us, We
may (but are not required to) sell, assign, and deliver all or any part of the Securities and Other Property securing
Your obligations or close any or all transactions in any of Your VBS accounts or in any of Your accounts with
Our affiliates.
Vanguard Brokerage Services can force the sale of Securities and Other Property in Your Account. You
are not entitled to choose which securities or other assets in Your Account will be liquidated or sold to
meet a margin call. If the equity in Your Account falls below the maintenance margin requirements, or VBS’s
higher “house” maintenance margin requirements (see next item below), VBS reserves the right to sell the
Securities and Other Property in Your Account to cover the margin deficiency. You will also be responsible
for any shortfall in the Account after such sale. Because the Securities and Other Property in Your Account are
collateral for the margin loan that has been granted to You, VBS has the right to decide which securities to sell
in order to protect its interests.
VBS can increase Our “house” maintenance margin requirements at any time without advance written
notice. At this time, the minimum margin maintenance requirement is 35% for most marginable securities held
at VBS. Your account would be at 35% equity under the following scenario: $100,000 market value – $65,000
margin debt = 35% equity. However, maintenance requirements may vary for certain Securities. For example,
VBS now requires a 50% or higher maintenance requirement for concentrated positions—that is, for margin
accounts with a large percentage of holdings in a small number of securities or for a large amount of holdings
in one particular industry group or sector. In addition, not all Securities held at VBS are marginable. Please note
that we may change Our “house” maintenance margin requirements anytime and these changes will take
effect immediately and result in the issuance of a maintenance margin call. Your failure to satisfy the call may
cause VBS to liquidate or sell Securities and Other Property in Your Account. You should ascertain the margin
requirements for a particular Security before placing a trade in a margin account. If You have any questions about
Our margin requirements, call Us at 800-992-8327 on business days from 8 a.m. to 10 p.m. or
on Saturdays from 9 a.m. to 4 p.m., Eastern time.
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VBS can sell Your Securities and Other Property without contacting You. Some investors mistakenly
believe that a firm must contact them for a margin call to be valid and that the firm cannot liquidate Securities
and Other Property in their accounts to meet the call unless the firm has contacted them first. This is not the
case. VBS will attempt to notify you when a margin call exists, but is not required to do so. You will normally
have up to five business days (two days for Exchange calls) to satisfy a margin call. However, even if You are
contacted and given explicit instructions regarding the amount and payment deadline of Your margin call, VBS
can still take necessary steps to protect its financial interests, including by selling Securities and Other
Property in any of Your accounts held by VBS or any of its affiliates at any time without contacting You
if We deem it necessary to mitigate the risk associated with adverse market fluctuations or otherwise.
You are not entitled to an extension of time to meet a margin maintenance call. Although VBS may allow
more time to meet a margin call under extenuating circumstances, You are not automatically entitled
to receive an extension.
Short sales can result in unlimited liability. A short sale occurs when a client borrows a security and sells
it with the expectation that the price of the security will fall. If the shares of a Security that you have sold short
should no longer be available to borrow (are recalled) by VBS, Your Account will be subject to a mandatory
“buy-in” at current market prices for all or part of Your short positions, however high those prices might be.
Therefore, before placing such trades, You should fully understand the risks and potentially adverse impact
such trades might have on Your portfolio.
Interest rates on margin debit balances may vary. Interest charged on any margin debit balances may
be up to 3.00 percentage points above the Vanguard Brokerage Base Lending Rate. The interest period begins
two business days before the beginning of each month and ends three business days before the following
month’s end. At the close of each interest period during which credit was extended to You, an interest charge
is computed by multiplying the average daily 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. If there has been a change
in the Vanguard Brokerage 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. 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 period. If there is a cash balance in both Your cash and margin accounts, interest will be
calculated on the combined debit balance for that currency and charged to the Margin Account.
Generally, You will not receive interest on any credit balances in Your short account because such credit
collateralizes the stock borrowed for delivery against the short sale.
All trades will be executed through Your Margin Account. All securities must be held in Your Margin
Account. Purchases of open-end mutual funds and Vanguard ETFs will settle in Your cash account and after
30 days be journaled into Your Margin Account.
Information about the rules, regulations, and risks of investing on margin is available online at the
FINRA website at finra.org. We strongly urge You to access this site for additional information and
disclosure or call Us at 800-992-8327 on business days from 8 a.m. to 10 p.m. or on Saturdays from
9 a.m. to 4 p.m., Eastern time.
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Margin Disclosure of Credit Terms and Policies
General Margin Policies
The amount of credit that may be extended by VBS and the terms of such extension are governed by rules of the
Federal Reserve Board, FINRA, and the New York Stock Exchange, Inc., within the guidelines of these rules and
subject to adjustment required by changes in such rules and Our business judgment.
VBS establishes certain policies with respect to margin accounts. VBS may require the deposit of additional
acceptable collateral at any time. Margin account equity is the current market value of Securities and Other
Property deposited as security less the amount owed VBS for credit extended at its discretion. It is Our general
policy to require margin account holders to maintain equity in their accounts of the greater of 35% of the current
market value or $3 per share for common stock. VBS applies other standards for other types of Securities. For
instance, Securities valued at less than $5 per share must initially be paid for in full. Also, certain Securities may be
ineligible for margin credit from time to time.
For information with respect to general margin maintenance policies for municipal bonds, corporate bonds, U.S.
Treasury notes and bonds, and other securities, as well as information about the eligibility of particular securities
for margin credit, please contact VBS at 800-992-8327.
Notwithstanding the above general policies, VBS 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, VBS may take into account various
factors including the size of the account, the liquidity of a position, concentrations of Securities in an account, or
a decline in creditworthiness. If You fail to meet a margin call in a timely manner, some or all of Your positions
may be liquidated by VBS at then-current market prices.
Credit Disclosure
Cash Accounts
Cash accounts may be subject, at VBS’s discretion, to interest on any debit balances in U.S. dollars or any
other currency resulting from failure to make payment in full for securities purchased, from failure to timely
deliver securities sold, from proceeds of sales paid prior to settlement date, or for other charges which may
be made to the account.
Margin Accounts
Purchases of Securities on credit, commonly known as margin purchases, enable You to increase the buying
power of Your equity and thus increase the potential for profit or loss. A portion of the purchase price is deposited
when buying securities on margin, and VBS extends credit for the remainder. This loan appears as a debit balance
in U.S. dollars or any other currency on Your monthly account statement. VBS charges interest on the debit
balance in U.S. dollars or any other currency and requires you to maintain Securities and Other Property to secure
repayment of funds advanced and interest due.
Interest will be charged in the appropriate currency for any credit extended to You for the purpose of buying,
trading, or carrying any Securities, for any cash withdrawals made against the collateral of Securities, or for any
other extension of credit. When funds are paid in advance of settlement on the sale of Securities, interest will
be charged in the appropriate currency on such amount from date of payment until the settlement date. In the
event that any other charge is made to the account in U.S. dollars or any other currency for any reason,
interest may be charged on the resulting debit balances.
Interest You pay on the loan is paid to VBS.
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Interest Rates
Interest charged on any debit balances in cash accounts or on credit extended in margin accounts may be up
to 3.00 percentage points above the Vanguard Brokerage Base Lending Rate for that currency. The Vanguard
Brokerage Base Lending Rate for each currency will be set with reference to commercially recognized interest
rates, industry conditions relating to the extension of credit, and general credit market conditions. For a loan in
a currency other than U.S. dollars, the Vanguard Brokerage Base Lending Rate will be set based on the abovereferenced
criteria in the country whose currency is the basis of the loan. The Vanguard Brokerage Base Lending
Rate for each currency will change without prior notice. When the Vanguard Brokerage Base Lending Rate for a
particular currency changes during an interest period, interest will be calculated according to the number of days
each rate is in effect during that period. If the rate of interest charged to You increases for any reason other than
a change in the Base Rate, You will be notified at least 30 days in advance.
Interest Period
The interest period begins two business days before the beginning of each month and ends three business days
before the following month’s end. Accordingly, the interest charges for the period as shown on Your monthly
statement are based only on the daily net debit and credit balances for the interest period.
Method of Interest Computation
At the close of each interest period during which credit was extended to You, an interest charge is computed by
multiplying the average daily 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. If there has been a change in the
Vanguard Brokerage 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. 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.
With the exception of credit balances in 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. Credit balances will not be combined or netted with debit balances in a
different currency. If there is a cash balance in both Your cash and margin accounts, interest will be calculated
on the combined debit balance for that currency and charged to the Margin Account.
Any credit balance 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 in the same position in Your
Margin Account (for instance, short sale against the box). If the security 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 that You sold short depreciates in market price, the interest
charged will be reduced since Your average debit balance will decline. This practice is known as “marking-to-themarket.”
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
short position occurs, on the following business day, Your Account will be charged the amount of the dividend or
other distribution.
Deposits of Collateral, Lien on Accounts, and Liquidation
In the event that additional collateral is requested, You may deposit funds or acceptable Securities into Your Margin
Account. If satisfactory collateral is not promptly deposited after a request is made, VBS may, at its discretion,
liquidate Securities and Other Property held in any of Your VBS accounts or in any account held by its affiliates. In
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this connection, pursuant to Our Account Agreement and Margin Agreement, VBS retains a security interest in the
Securities and Other Property held in Your Accounts, including Securities held for safekeeping so long as any credit
extended remains outstanding.
Callable Securities
Securities that are held for Your Account and that are in “street name,” or are being held by a securities
depository, are commingled with the same securities being held for other clients of financial organizations and for
VBS’s own clients. Your ownership of these Securities is reflected in Our records. You have the right at any time
to require delivery to You of any such Securities that are fully paid for or are in excess of margin requirements.
The terms of many bonds allow the issuer to partially redeem or “call” the issue prior to maturity date. Certain
preferred stocks are also subject to being called by the issuer. Whenever any such Security being held by Us is
partially “called,” We will determine, through a random selection procedure as prescribed by New York Stock
Exchange ® rules, the ownership of the Securities to be submitted for redemption without regard to unsettled
sales. In the event that such Securities owned by You are selected and redeemed, Your Account will be credited
with the proceeds.
Should You not wish to be subject to this random selection process, You must instruct VBS to deliver Your
securities to You. Delivery will be effected provided, of course, that Your position is unencumbered or had not
already been called by the issuer as described prior to receipt by VBS of Your instructions. The probability of
one of Your Securities being called is the same whether they are held by You or by VBS for You.
Miscellaneous Credits
VBS credits to Your Account funds belonging to You such as dividends, interest, redemptions, and proceeds of
corporate reorganizations on the day such funds are received by Us. These funds come to Us from issuers and
various intermediaries in which We are participants, such as the Depository Trust Company. Periodically, certain
of those intermediaries pass on to their participants some or all of the interest earned on funds while in the
possession of the intermediary. To the extent VBS receives such payments, We retain them.
Information regarding when VBS credits Your Account with funds due to You, when those funds are available
to You, and/or when You begin earning interest on those funds is available from VBS.
Substitute Payments
To the extent VBS determines (in accordance with federal income tax regulations) that Your Securities have been
loaned, certain payments You receive with respect to such loaned Securities will be reclassified as “substitute
payments.” The tax consequences of receiving substitute payments may be different than the tax consequences of
receiving payments made by an issuer of an underlying security. For instance, a dividend received by an individual
may be taxed at a preferential rate if the dividend is a qualified dividend. Whereas if an individual receives a substitute
payment, the preferential rate for qualified dividends will not apply. Individuals may also be affected if certain
payments (such as exempt-interest dividends, capital gains distributions, return of capital, and foreign tax credit
dividends) are reclassified as substitute payments. Corporate taxpayers could also be affected because the dividendsreceived
deduction is not available with respect to substitute payments. We suggest You contact Your tax advisor
to discuss the tax treatment of substitute payments. As permitted under Your Margin Agreement, VBS may lend
shares in Your Account when Your Account has a debit balance. In the instance where Securities are on loan over
an ex-dividend date, VBS may issue a substitute payment to the Account in lieu of the dividend and, subsequently,
a tax differential reimbursement. Substitute payments received in 2007 and forward, however, may be eligible for a
reimbursement to the lender’s account only if the Account is open on the reimbursement date. Please note that these
reimbursements are subject to change and may be eliminated without advance notification.
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