Common use of Auction Rate Securities Clause in Contracts

Auction Rate Securities. The Program Fee will be applied to certain closed-end funds and municipal bonds, which are bought and sold at auctions held at predetermined intervals. In addition to the Program Fee, WFA and its affiliates also receive a service charge or other compensation for participating in auctions of auction rate closed-end funds and municipal bonds. This service charge or other compensation, a portion of which may be paid to your financial professional, is described generally in the relevant prospectus or offering documents.