Pledge of Securities Account and Other Property. All secu- rities and other property held, carried, or maintained by Stifel in your Securities Account or in any of the accounts you maintain at Stifel may be pledged and repledged by Stifel from time to time, without notice to you, either separately or in common with other such securities and other property for any amount due in your accounts, or for any greater amount, and Stifel may do so without retaining in Stifel’s possession or control for delivery a like amount of similar securities and/or other property. Securities used as collateral for a margin loan may be re- hypothecated (loaned to another brokerage firm as a stock loan) by Stifel. Stock loans are made from an available pool of excess margin securities that may or may not be directly attributable to a specific client. Stock loans that are outstanding over a particular security’s ex- dividend date may result in certain clients receiving “cash-in- lieu” payments rather than dividends. “Cash-in-lieu” payments are typically subject to ordinary income tax rates. The specific clients affected are determined through an allocation process. Stock loans that are outstanding over the proxy record date may result in certain clients having a reduced ability to partici- xxxx in the proxy vote. Stifel will reduce the shares available to vote due to the outstanding stock loans. This reduction may be done by random allocation to specific accounts or by reducing the vote for all accounts with shares in the excess margin pool.
