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Dear Customer:
We wish to inform you of the terms and conditions under which
interest charges will be applied to your accounts with us.
- You will be charged interest on any credit extended to
or maintained for you by Mesirow Financial for the
purpose of purchasing, carrying, or trading in any securities,
or otherwise.
- The annual rate of interest charged on the net debit balance
in your margin account will be 1 1/2% (or as indicated at
the bottom of this statement) above the broker's call money
rate, which is based on published rates on call money lent
brokers on stock exchange collateral or broker's call money
rate, which is based on published rates for call money lent
brokers on stock exchange collateral or broker's call money
rates quoted by commercial banks, as determined by the Corporation.
The rate of interest applicable to your account is subject
to change without prior notice when changes occur in the
broker's call money rate. If your interest rate is to be
increased for any other reason, you will be given at least
thirty (30) days prior written notice.
The rate of interest charged on the debit balance in your
margin account will be based upon the size of your debit
balance and the market value of the securities in your account,
the equity in your account, the amount of commission paid
by you, and other business considerations.
- Debit balances represent money loaned to you by Mesirow Financial.
When you purchase securities on margin
you must pay the amount of the money required by regulations
of the Federal Reserve Board and the balance of the purchase
price is loaned to you. This loaned portion creates the
debit balance upon which interest is charged. Each additional
purchase adds to your debit balance as do your interest
charges and any other charge which may be addressed to your
account.
- Any credit balance in the cash account will be considered
with the balance in the margin account for the purpose of
computing interest. Only one net entry for interest will
appear in the margin account. Interest charges will be made
on any extension of credit even if it is not directly related
to purchases in your margin account. Examples of such extensions
of credit would include but not be limited to prepayments
to you for securities sold and late payments received from
you on purchases in your cash account.
Interest charged shall be determined by the rate applied
to your margin account.
- Interest is posted to your account on the last Friday
of the month except for year end purposes when it is posted
on Dec. 31. Interest is calculated on the average net daily
debit balance which includes any credit in your cash and
margin accounts during the interest period. The interest
charge is determined by multiplying the average net daily
debit balance by the rate of interest and by a fraction,
the numerator of which is the number of days the debit balance
existed and the denominator of which is three hundred sixty
(360). Your monthly statement will show the average daily
balance and the interest rate used to arrive at the amount
of interest charged.
Any credit that appears on your statement due to short sales
(including short sales against the box) is offset by a debit
of like amount because Mesirow Financial has to borrow
the security in order to deliver it to the buying broker.
The credit generated by any short sales against the box
does not reduce your debit balance for the purpose of computing
interest until the short position is covered.
If the security which you sold short (or sold short against
the box) appreciates in market price over the selling price,
interest will be charged on the appreciation in value. If
the security which you sold short depreciates in market
price, the debit balance is correspondingly reduced by the
decrease in value. This practice is known as "marking-to-market."
Daily, closing prices are used to determine any appreciation
or depreciation of the security sold short.
- On all securities which Mesirow Financial has or
at any time may hold or carry for you in any account of
yours (either individually or jointly with others), or which
may be deposited with Mesirow Financial for any purpose,
as a pledge, has a general lien for the discharge of all
your obligations to it however arising and irrespective
of the number of account you have with it.
Any securities in any of your accounts are collateral for
any debit balance in your accounts with us. A lien is created
by these debits to secure the amount of money owed to
Mesirow Financial. This means that in accordance with the
terms of the margin and lending customer's agreement, securities
in your accounts can be sold to reduce or to liquidate entirely
any debit balance in your account.
- Mesirow Financial may require you to deposit additional
collateral in accordance with the rules and regulations
of the Federal Reserve Board and various exchanges and any
other regulatory agency to whose jurisdiction Fiserv Securities,
Inc. is subject, and in addition may require you to deposit
such additional collateral as Mesirow Financial, in
its sold discretion, determines is needed as security for
your obligations to the Corporation. If there is a decline
in the market value of your securities, Mesirow Financial may request that you deposit additional collateral
in order to improve the margin in your account or accounts.
It is the general policy of the Corporation to require margin
customers to maintain at least a 30% margin, although a
higher margin applies for certain securities (including
stocks and corporate bonds trading at or below a specified
price as determined from time to time by
Mesirow Financial). The Corporation always reserves the right to require
additional margin any time it deeds this desirable. Margin
calls can be satisfied by the deposit of additional securities
and/or cash.
BestVest Investments, Ltd. Interest
Charges
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Margin Interest
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Debit Balance of
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Broker Call, Plus
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Up to $49,999
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1/4%
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$50,000 and over
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Broker Call Rate
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