Common use of Interest on Margin Clause in Contracts

Interest on Margin. You will pay interest on credit extended by RQD under this Margin Supplement Agreement for the purpose of purchasing, carrying or trading securities. Interest will be charged on your daily net settled debit balance and calculated using the interest rate schedule determined by your Introducing Broker. Your Introducing Broker’s initial interest rate schedule is included in this Margin Supplement Agreement and will remain in effect unless modified under the circumstances described below. You will be provided by your Introducing Broker with thirty (30) calendar days’ written notice of any changes your Introducing Broker elects to makes to its rate schedule. The rate of interest charged for the credit extended to you will be calculated on a 360-day year and actual days elapsed using the rate schedule determined by your Introducing Broker and included in this Margin Agreement. You may contact your Introducing Broker or RQD’s Customer Service Department at ▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ if you have any questions about the margin rates applicable to your Margin Account balances. Contact information for TradingBlock can be found at ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/Help/CustomerService.aspx. RQD is furnishing this statement to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review this Agreement. Further, RQD encourages you to consult your Introducing Broker with any questions or concerns you may have regarding margin accounts, and in particular, your margin account(s). Contact information for TradingBlock can be found at ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/Help/CustomerService.aspx. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from RQD. If you choose to borrow funds from RQD, you will open a margin account with RQD. The securities purchased are RQD’s 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, and, as a result, RQD can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with RQD in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following: You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to RQD to avoid the forced sale of those securities or other securities or assets in your account(s). RQD can force the sale of securities or other assets in your account(s). If the equity in your account falls below the minimum margin requirements or RQD’s higher “house” requirements, RQD can sell the securities or other assets in any of your accounts held at RQD to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale. RQD can sell your securities or other assets without contacting you. Some investors mistakenly believe that RQD must contact them for a margin call to be valid, and that RQD cannot liquidate securities or other assets in their accounts to meet the call unless RQD has contacted them first. This is not the case. RQD may attempt to notify you of a margin call(s) but is not required to do so. However, even if RQD contacts you and provides you with a specific date by which you may meet a margin call(s), RQD may still take necessary steps to protect its financial interests, including immediately selling the securities without notice to you. You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, RQD has the right to decide which security to sell in order to protect its interests. RQD can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in RQD’s policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause RQD to liquidate or sell securities in your account(s). You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to you under certain conditions, you do not have a right to an extension. The IRS requires RQD, as a broker dealer, to treat dividend payments on loaned securities positions as a substitute payment in lieu of a dividend. A substitute payment is not, a qualified dividend and is taxed as ordinary income. Financial regulations may limit, in whole or in part, your ability to exercise voting rights of securities that have been lent or pledged to others. You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials.

Interest on Margin. You will pay interest on credit extended by RQD under this Margin Supplement Agreement for the purpose of purchasing, carrying or trading securities. Interest will be charged on your daily net settled debit balance and calculated using the interest rate schedule determined by your Introducing Broker. Your Introducing Broker’s initial interest rate schedule is included in this Margin Supplement Agreement and will remain in effect unless modified under the circumstances described below. You will be provided by your Introducing Broker with thirty (30) calendar days’ written notice of any changes your Introducing Broker elects to makes to its rate schedule. The rate of interest charged for the credit extended to you will be calculated on a 360-day year and actual days elapsed using the rate schedule determined by your Introducing Broker and included in this Margin Agreement. You may contact your Introducing Broker or RQD’s Customer Service Department at ▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ if you have any questions about the margin rates applicable to your Margin Account balances. Contact information for TradingBlock can be found at ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/Help/CustomerService.aspx. RQD is furnishing this statement to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review this Agreement. Further, RQD encourages you to consult your Introducing Broker with any questions or concerns you may have regarding margin accounts, and in particular, your margin account(s). Contact information for TradingBlock can be found at ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇/Help/CustomerService.aspx. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from RQD. If you choose to borrow funds from RQD, you will open a margin account with RQD. The securities purchased are RQD’s 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, and, as a result, RQD can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with RQD in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following: You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to RQD to avoid the forced sale of those securities or other securities or assets in your account(s). RQD can force the sale of securities or other assets in your account(s). If the equity in your account falls below the minimum margin requirements or RQD’s higher “house” requirements, RQD can sell the securities or other assets in any of your accounts held at RQD to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale. RQD can sell your securities or other assets without contacting you. Some investors mistakenly believe that RQD must contact them for a margin call to be valid, and that RQD cannot liquidate securities or other assets in their accounts to meet the call unless RQD has contacted them first. This is not the case. RQD may attempt to notify you of a margin call(s) but is not required to do so. However, even if RQD contacts you and provides you with a specific date by which you may meet a margin call(s), RQD may still take necessary steps to protect its financial interests, including immediately selling the securities without notice to you. You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, RQD has the right to decide which security to sell in order to protect its interests. RQD can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in RQD’s policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause RQD to liquidate or sell securities in your account(s). You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to you under certain conditions, you do not have a right to an extension. The IRS requires RQD, as a broker dealer, to treat dividend payments on loaned securities positions as a substitute payment in lieu of a dividend. A substitute payment is not, a qualified dividend and is taxed as ordinary income. Financial regulations may limit, in whole or in part, your ability to exercise voting rights of securities that have been lent or pledged to others. You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials.