All About Portfolio Connection Accounts & Services

Transcription

1 Effective January 1, 2014 All About Portfolio Connection Accounts & Services Disclosure and Supplemental Agreement unionbank.com 2013 Union Bank, N.A. All rights reserved A (1/14) 3.NF-070-PC-1213

2 Investments available through UnionBanc Investment Services LLC (UBIS), a registered broker-dealer, investment advisor, member FINRA/SIPC, and subsidiary of Union Bank, N.A. ( Union Bank ): Are not bank deposits Are not obligations of, or guaranteed by, UnionBanc Investment Services LLC, any bank, or any subsidiary or affiliate thereof Are not insured or guaranteed by the FDIC or by any other government agency Involve investment risk, including the possible loss of principal A Portfolio Connection Account gives you the convenience of investment services through UBIS and personal cash management services administered through Union Bank integrated into one account. Offered through UBIS, the brokerage subsidiary of Union Bank, N.A., Portfolio Connection gives you the control and flexibility to help you meet your financial goals. Portfolio Connection allows you to consolidate such key financial components as investments and certain features of a checking account into one integrated brokerage account. UnionBanc Investment Services Portfolio Connection takes the complexity out of managing multiple accounts and lets you enjoy a wide array of investment and personal cash management services. A Portfolio Connection Brokerage Account with UBIS provides (1) the option to automatically sweep uninvested cash balances on a daily basis into a money market mutual fund or a bank deposit, and (2) the convenience of check writing, direct deposit, access to ATMs, and bill-paying services without having to open a bank account. As this is a brokerage account with cash management features, your Portfolio Connection Brokerage Account is subject to agreements with both UBIS and Union Bank. With respect to the brokerage services provided by UBIS, the UnionBanc Investment Services Bank Deposit Sweep Program (BDSP SM ) All About & Disclosure Document ( BDSP Disclosure ) and the UnionBanc Investment Services Commission & Fee Schedule, as amended from time to time, shall govern. With respect to the cash management features and services offered through Union Bank, such services shall be subject to the All About Personal Accounts & Services Disclosure and Agreement and the applicable fee schedule, as amended from time to time. Both the BDSP Disclosure and All About Personal Accounts & Services Disclosure and Agreement have been provided to you under separate cover. In addition to the BDSP Disclosure and All About Personal Accounts & Services Disclosure and Agreement, this document contains the following supplemental terms (the Supplemental Agreement ) to which your Portfolio Connection Agreement will be subject. Supplemental Agreement In consideration for UBIS accepting Client s account, Client hereby agrees to the following additional terms and provisions (the Supplemental Agreement ): Contractual Relationships Client acknowledges that the Portfolio Brokerage Account (the Account ) is subject to agreements with both UnionBanc Investment Services LLC ( UBIS ) and Union Bank, N.A. ( Union Bank ). Client acknowledges that the UnionBanc Investment Services Bank Deposit Sweep Program BDSP Disclosure All About & Disclosure Document ( BDSP Disclosure ), as amended from time to time, shall govern with respect to brokerage services provided by UBIS. Client acknowledges that with respect to the Account s cash management features and services offered through Union Bank, such services shall be subject to the All About Personal Accounts & Services Disclosure and Agreement, as amended from time to time. Client acknowledges receipt of both the BDSP Disclosure and All About Personal Accounts & Services Disclosure and Agreement and agrees that they, together with the applicable fee schedules and this Supplemental Agreement (collectively the Agreement ), will govern Client s Account. In the event of a conflict between the aforementioned agreements and this Supplemental Agreement, this Supplemental Agreement shall control. Account Is Not FDIC Insured Although the Account offers certain features similar to a checking account, it is a brokerage account and not a bank account. Accordingly, the Account is not insured or guaranteed by the Federal Deposit Insurance Corporation ( FDIC ) or any other government agency. Role of National Financial Services As further described in the BDSP Disclosure, Client acknowledges that unless it has informed UBIS otherwise in writing, National Financial Services ( NFS ) will be the broker-dealer that carries Client s UBIS Account(s) for financial responsibility purposes, will clear transactions for the Account, and will hold the assets in the Account. A list of UBIS and NFS respective responsibilities appears at the end of the BDSP Disclosure in the section entitled Notice to Clients. ACCOUNT FEATURES i. Core Account Investment Vehicles for Sweeps UBIS provides Client with the ability to automatically sweep the cash balances awaiting investment in Client s brokerage account into a core account investment vehicle while Client decides how those funds should be invested. (See also the BDSP Disclosure section entitled Incomes on Balances Awaiting Investment for more information.) Client may choose to sweep the cash balances in its brokerage accounts into either an interest-bearing FDIC-insured deposit account at Union Bank, N.A., or the Reich & Tang California Daily Tax Free Income Fund. The available cash from securities 1 2

3 transactions and dividend and interest payments, and other activities in Client s brokerage account, will be automatically deposited or swept into this cash management investment vehicle. If Client elects to participate in the sweep program, Client will review the BDSP Disclosure, especially as to eligibility and applicable limits of the Federal Deposit Insurance Corporation ( FDIC ) insurance coverage and Securities Investor Protection Corporation ( SIPC ) fund protection. If Client elects to participate in the sweep program with the Reich & Tang California Daily Tax Free Income Fund as Client s sweep vehicle, Client will review the prospectus. Client acknowledges receipt of the BDSP Disclosure or Reich & Tang prospectus as applicable. This sweep program should not be viewed as a long-term investment option. If Client desires, as part of an investment strategy or otherwise, to maintain a cash position in the Account for other than a short period of time and/or is seeking the highest yields currently available in the market for Client s cash balances, Client will contact Client s Investment Representative to discuss other investment options that may be available outside of the sweep program that may be better suited to Client s goals. ii. Payment of Checks and Other Transactions Shares of a money market mutual fund will be redeemed at their net asset value. Client agrees that Client s shares may be redeemed automatically to satisfy any debit balance in Client s Portfolio Connection Brokerage Account, checks, debit card transactions, electronic funds transfers, overdrafts, and other authorized debit items. Client may also request, via telephone, to redeem shares of a money market mutual fund and to transfer these funds to a bank account that Client designates. Client may elect to send such funds by means of the Federal Reserve Wire System, an automated clearinghouse system, or through another payment system. Except as otherwise limited by federal or state law, Client ratifies such actions and agrees that neither UBIS nor Union Bank nor a fund s transfer agent will be liable for any loss, liability, cost, or expense for (1) any action made in accordance with the procedures set forth herein or in the applicable fund prospectus, or (2) acting upon instructions with respect to money transfers given by any person they or it believes to be genuine, provided the funds are transferred to the bank account designated by Client. All debit items, including drafts, checks, debit card transactions, investment transactions, and other items and transactions, will be accumulated daily and paid by NFS to the extent to which sufficient funds are available. Client agrees to maintain sufficient assets in Client s selected affiliated core account investment vehicle to satisfy all obligations as they become due. Client understands that payment of any debit item may be made first from Client s core account investment vehicle balance available that day (defined as cash available to you on demand without giving rise to margin interest charges), and second, when Client has no remaining cash balance, from any available margin loan value of Client s marginable securities. Client understands that in the event margin credit is extended by NFS, interest will accrue beginning on the date credit is extended, and is defined in and subject to the terms of a separate Margin Account Agreement. Payments for debit items may be made on Client s behalf in the following order as they become due: First, securities transactions (including margin calls) and other account fees; Second, debit card transactions; and Third, any Portfolio Connection Brokerage Account checks. Neither UBIS nor NFS nor Union Bank will be responsible for the dishonor of any transaction due to an insufficient available balance. Client understands that other transactions that Client initiates or has consented to may reduce Client s available balance. Client also understands that due to the transmission time of certain data between financial institutions, debit card authorizations may be limited even if funds were contributed or released to the core account investment vehicle the previous Business Day. If any liability arises in Client s Portfolio Connection Brokerage Account that remains unpaid after payment is requested of Client, NFS and UBIS will have the right to sell, liquidate, transfer, redeem, or otherwise apply any asset, money, property, security, or shares that Client, either now or later, has an interest in for the purpose of satisfying that obligation. No further demand or notice shall be required prior to taking such an action. iii. Check-Writing Privileges Checks drawn against Client s Portfolio Connection Brokerage Account are payable through Union Bank. Client will be charged fees for events or services such as stop payment requests, dishonored checks, copies of checks, or excessive check-writing activity, as set forth in the applicable Union Bank fee schedule. Client s checks may be dishonored if the available balance in Client s account is insufficient to honor a check in full. For additional information regarding Portfolio Connection Cash Management Features and Services, please refer to the All About Personal Accounts & Services Disclosure and Agreement. Amendments/Termination UBIS, NFS, and Union Bank may amend (add to, change, or delete), terminate, or restrict the services contemplated by this Agreement or provide Client with additional disclosures at any time, in any respect, effective upon 30 days advance notice to Client. Client s use of the services provided hereunder, after receipt of such amendment, notice, or disclosure, shall constitute Client s agreement thereto. Client has the right to terminate this Agreement at any time by sending written notice to: UnionBanc Investment Services LLC P.O. Box Los Angeles, CA

4 Waivers Client agrees that UBIS or Union Bank may delay enforcing their rights under this Agreement without losing them. Any such waiver by UBIS or Union Bank shall not be deemed a waiver of other rights or of the same right at another time. NOTES Governing Law and Applicable Regulations Except as otherwise provided in the Pre-Dispute Arbitration Agreement contained in the BDSP Disclosure, this Agreement and all transactions hereunder shall be governed by the laws of the State of California without giving effect to the choice of law or conflict of laws provisions thereof. All transactions for Client s Account shall be further subject to the regulations of all applicable federal, state, and regulatory agencies, including, but not limited to, the Securities and Exchange Commission; the applicable self-regulatory organizations; the Board of Governors of the Federal Reserve System; the Office of the Comptroller of the Currency; and the constitution, rules, and customs of the exchange or market (and its clearing house, if any) where such transactions are executed. Actual deliveries are intended on all transactions. Client agrees not to exceed the exercise limits and/or position limits set by the option exchanges for Client s own Account, acting alone or in concert with others. Questions For questions or problems regarding the Investment or Brokerage functioning of Client s Portfolio Connection Brokerage Account, Client can contact: UnionBanc Investment Services LLC P.O. Box Los Angeles, CA Toll-free within the U.S Outside the U.S. 5 6

5 July 2014 News From Union Bank On July 1, 2014, Union Bank changed its legal name from Union Bank, N.A. to MUFG Union Bank, N.A. Although it s only the addition of four letters, the change positions us to better leverage the strength and global reach of our parent company, Mitsubishi UFJ Financial Group, Inc. (MUFG; see below to learn more). Union Bank has been a part of MUFG and its predecessor companies for almost twenty years, and while our legal name is changing, the branches and offices where you do business will continue to carry the Union Bank name. It s business as usual, as there are no actions you need to take in anticipation of this legal name change; and you will still enjoy the same products and services you have come to expect from us. For more information, please visit unionbank.com/mufgunionbank. About MUFG Mitsubishi UFJ Financial Group, Inc. (MUFG) is a family of companies that represents one of the world s largest and most stable 1 financial organizations. Headquartered in Tokyo with approximately 258 trillion (JPY) or $2.5 trillion (USD) in assets as of March 31, 2014, over 1,100 offices in over 40 countries, and over 140,000 employees across the globe, it is also one of the best-capitalized financial companies in the world 2. MUFG s vision is to be the world s most trusted financial group, and Union Bank will continue to strive to exceed expectations and provide strong and stable partnership to our clients, our employees, and our communities in pursuit of that vision. 1 Global Finance, World s 50 Safest Banks, October Assets are calculated according to Japanese GAAP. Equivalent U.S. dollar amounts are provided for reference purposes only, based on the final BTMU official Telegraphic Transfer Middle rate on the date of record MUFG Union Bank, N.A. All rights reserved (07/14)