Master Account Agreement, Including Investment ... - LPL Financial

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ACCOUNT PACKETLPL MASTER – ACCOUNT AGREEMENT1. Please always make payment for the purchase of securities to one of the following parties: LPL for purchases made in yourLPL account, a mutual fund or a variable product sponsor as instructed in the prospectus or a partnership escrow agent asinstructed in the offering memorandum or your TPIA. Do not make payment to any person or entity not named aboveincluding your Representative.2. Do not pay cash or a cash equivalent for a security purchase; use a traceable instrument.3. Be aware that Representatives are prohibited from taking personal possession of your securities, stock powers, monies orany other personal or real property in which you may have an interest. Representatives may not lend to you or borrow fromyou any monies or securities.4. Do not obtain credit or otherwise borrow money to purchase securities except through a properly approved margin account.5. Do not accept any commission rebate or any other inducement with respect to your purchase or sale of securities.6. Do not enter into an understanding whereby you agree to buy securities directly from or sell securities directly to yourRepresentative.7. Do not agree to enter into any other business relationship with your Representative including, but not limited to, helping tocapitalize or finance any business of your Representative.OPERATION OF YOUR CASH ACCOUNT/TERMS1. Applicable Rules & RegulationsAll transactions in your account are subject to the rules, customs and usages of the exchanges, markets or clearing houseswhere the transactions are executed and to all applicable federal and state laws and regulations.2. LienAll securities, commodities and other property which LPL may at any time be carrying for you or which may at any time be inLPL’s possession or under LPL’s control, shall be subject to a general lien and security interest in LPL’s favor for the discharge ofall your indebtedness and other obligations to LPL, without regard to LPL having made any advances in connection with suchsecurities and other property and without regard to the number of accounts you may have with LPL. In enforcing LPL's lien, LPLshall have the discretion to determine which securities and property are to be sold and which contracts are to be closed. Forpurposes of this agreement, "securities, commodities and other property," as used herein shall include, but not be limited to,money, securities, and commodities of every kind and nature and all contracts and options relating thereto, whether for presentor future delivery. Notwithstanding any other provision in this agreement to the contrary, any lien or security interest arising outof fees, charges or other obligations owed to LPL by an account of an individual retirement account or other plan subject to theprohibited transaction provisions of section 4975(c) of the Internal Revenue Code (“Plan”) shall be limited to and enforceableagainst only the assets of such Plan account and any lien or security interest arising out of fees, charges or other obligationsowed to LPL by a non- Plan account shall not extend to or be enforceable against the assets of any Plan account.3. Failure to PayIf upon the purchase or sale of securities by LPL at your direction, you fail to pay for or deliver monies or securities, youauthorize LPL to take those steps necessary to pay for/deliver such monies or securities. You further agree to reimburse LPLfor any loss it may sustain on your behalf, including reasonable costs of collection of any debit balance and any unpaiddeficiency in your account including attorneys’ fees.4. Interest on Debit BalancesCash accounts may be subject, at LPL's discretion, to interest on any debit balances resulting from failure to make paymentin full for securities purchased, failure to timely deliver securities sold, proceeds of sales paid prior to settlement date, or forother charges which may be made to the account.5. Automatic Cash Sweep ProgramBy signing the Account Application, you are consenting, with respect to assets held at LPL, to have cash balances in youraccount transferred automatically into a sweep program, depending on the type of account you hold. Below is a summaryof the general terms and conditions of the sweep programs offered by LPL.AP – LPL – 0 9 14LPL FINANCIAL LLC Page 2Member FINRA / SIPC
ACCOUNT PACKETLPL MASTER – ACCOUNT AGREEMENTMulti-Bank Insured Cash Account (“ICA”) Program General Terms and ConditionsIf your account is eligible for the ICA program, the available cash balances (from securities transactions, dividend andinterest payments and other activities) in your account will automatically be deposited into interest-bearing Federal DepositInsurance Corporation (“FDIC”) insured deposit accounts (“Deposit Accounts”) at one or more banks or other depositoryinstitutions (each, a “Bank”).Eligibility. The ICA program is available only to individuals, trusts (so long as all beneficiaries of the trust accounts arenatural persons), and sole proprietorships. Custodial accounts are eligible for the ICA program if each beneficiary is aneligible person. LPL may at its discretion deem an eligible person to be an ineligible person if LPL becomes aware that theperson is prohibited as a matter of law from holding funds at the Bank. Entities organized or operated to make a profit,such as corporations, partnerships, associations, business trusts, and other organizations (other than sole proprietorships)are not eligible for the ICA program. Please consult your Representative for additional details concerning eligibility.FDIC Insurance. The Deposit Accounts available through the ICA program are eligible for insurance by the FDIC up to$250,000 in principal and accrued interest per depositor (including individual retirement accounts (“IRAs”), Roth IRAs, andcertain other retirement accounts) in each insurable capacity (e.g. individual, trust, joint, etc.) per Bank. As your agent, LPLwill place up to $246,500 of your available cash for an individual or trust account, and up to $493,000 for a joint account, inone Bank. As your agent, LPL will open Deposit Accounts at additional Banks so that funds in excess of $246,500 for anindividual or trust account (or $493,000 for a joint account) may be swept into those accounts, which are also eligible fordeposit insurance. If $246,500 has been deposited for you (or $493,000 for your joint account) through the ICA program ineach Bank up to $1.5 million, excess funds above $1.5 million of deposit insurance ($3 million for joint accounts) will beinvested in the J.P. Morgan Prime Money Market Fund - Service Shares. A prospectus for the J.P. Morgan Prime MoneyMarket Fund - Service Shares is available from LPL Financial upon request. If invested in the J.P. Morgan Prime MoneyMarket Fund - Service Shares, your funds are not eligible for FDIC deposit insurance. Deposit Accounts are not protectedby the Securities Investor Protection Corporation (SIPC).The ability of the ICA program to sweep your uninvested cash into Bank deposit accounts depends, however, on thecapacity of the Banks to accept new deposits. If one or more of the Banks at which you do not already have depositsdecline to accept your uninvested cash, your cash that cannot be fully deposited into the Banks will be automaticallyinvested into the J.P. Morgan Prime Money Market Fund – Service Shares just as it will be when your available cash exceedsthe maximum level of available deposit insurance (currently $1.5 million for individual accounts and $3 million for jointaccounts). In the event of insufficient capacity, LPL will seek to make deposits under the ICA program such that at leastsome of your cash will be deposited in a Deposit Account consistent with the priority bank list. When Bank capacity isrestored under the ICA program, your funds that are invested in J.P. Morgan Prime Money Market Fund will beautomatically moved from the J.P. Morgan Prime Money Market Fund, and LPL, as agent, will deposit those funds intoDeposit Accounts with the available Bank(s), subject to the maximum amount of FDIC insurance.Interest. You will receive the same interest rates on the funds in your accounts at each Bank. All Banks will use the sameinterest rate tiers and will pay the same rate of interest on the Deposit Accounts within each interest rate tier, which aredescribed in greater detail in the ICA Disclosure Booklet available from your Representative or on www.lpl.com. Theinterest rates on the Deposit Accounts are determined by the amount the Banks are willing to pay on the Deposit Accountsminus the fees paid to LPL and other parties, as described in the Booklet. The interest rates paid on Deposit Accounts maychange as frequently as daily. You may contact your Representative or access our website at www.lpl.com to determine thecurrent interest rate on the Deposit Accounts for each interest rate tier.Fees. LPL receives a fee equal to a percentage of the average daily deposit balance in the ICA. The fee paid to LPL may beat an annual rate of up to an average of 200 basis points as applied across all ICA deposit accounts taken in the aggregate.AP – LPL – 0 9 14LPL FINANCIAL LLC Page 3Member FINRA / SIPC
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