Common use of Transferable securities Clause in Contracts

Transferable securities. In the event that any securities in your account become non-transferable, NFS may remove them from your account without further notice. Non- transferable securities are those where transfer agent services have not been available for six or more years. A lack of transfer agent services may be due to a number of reasons, including that the issuer of such securities may no longer be in business and may even be insolvent. Note the following: • There are no known markets for these securities. • NFS is unable to deliver certificates to you representing these positions. • These transactions will not appear on Form 1099 or any other tax reporting form. • The removal of the position will not be reported as a taxable distribution and any reinstatement of the position will not be reported as a contribution. • If transfer agent services become available sometime in the future, NFS will use its best efforts to have the position reinstated in your account. • Positions removed from your account will appear on your next available account statement following such removal as an “Expired” transaction. By opening and maintaining an account with NFS, you consent to the actions as described above, and you waive any claims against your Broker/Dealer or NFS arising out of such actions. You also understand that your Broker/Dealer does not provide tax advice concerning your account or any securities that may be the subject of removal from or reinstatement into your account and you agree to consult with your tax advisor concerning any tax implications that may arise as a result of any of these circumstances. Brokerage orders (including those generated by reinvested dividends) are routed through NFS, who in turn sends orders to various exchanges or market centers for execution. In deciding where to send an order, NFS looks at a number of factors, such as size of order, trading characteristics of the security, favorable execution prices (including the opportunity for price improvement), access to reliable market data, availability of efficient automated transaction processing, and execution cost. Some market centers may execute orders at prices superior to the publicly quoted market. Although you can give instructions with a written order (though not an order placed through any telephone, electronic, or online trading system) that the order be sent to a particular marketplace, NFS’s order-routing policies are designed to result in transaction processing that is favorable for you. Note that we and NFS may receive monetary payments or other consideration (such as financial credits or reciprocal business) for directing equity trades to particular broker/dealers or market centers for execution. For the name and address of any credit reporting agency from whom we or NFS has obtained information about you, send a written request to us or the card issuer, as applicable.