Certain clients receive electronic confirmations through Depository Trust Company or other institutional delivery systems in lieu of hard copy confirmations of each transaction. You should be aware that all of the terms, conditions, and disclosures set forth on such hard copy confirmations will continue to apply to each confirmation processed electronically, including among other things, the following:

• Securities purchased on a cash or margin basis are or may be hypothecated under circumstances which will permit the commingling thereof with securities carried for other clients, but such securities, if hypothecated, will be withdrawn from hypothecation as soon as practicable after receipt of payment herefor.
• If the transaction is a purchase by you in a cash account and sufficient funds are not already in your account with us, it is agreed that you will make full payment for the securities described on the confirmation promptly and not later than settlement date in accordance with the terms of this transaction and that you do not contemplate sale of such securities prior to making such payment. If the securities described are not already held in your account with us, we are acting upon your representation that you or your principal own such securities, and it is agreed that you will promptly and not later than settlement date deposit such securities with us. If full payment for the securities purchased by you in the transaction is not received by us, or if securities sold by you are not delivered to us in proper form on or after the first trading day after settlement date, we may at our option cancel or otherwise liquidate the transaction without notice to you, and you will be liable to us for any resulting loss, including, without limitation, all expenses, attorney's fees, and other costs incurred by us and interest thereon.
• Provisions of agreements and contracts shall inure to any successor of CCMI or NFS.
• It is understood and agreed that all transactions are subject to the rules and customs of the exchange or market (and its clearing house, if any) where they are executed. The name of the broker or party and the time of execution will be furnished on request.
• Commission rates are subject to negotiation, and any commission charged to you on the transaction may be more or less than commissions charged to or by others in similar transactions. The source and amount of other commissions charged by us in connection with the transaction will be furnished on request.
• Call features may exist for securities. Call features for fixed income securities may affect yield. Complete information will be provided upon request.
• The ratings that appear in the description of some fixed income securities have been obtained from ratings services that Pershing believed to be reliable; however, Pershing cannot guarantee their accuracy. Securities for which a rating is not available are marked "UNRATED."
• If the transaction involves an asset-backed security including a municipal collateralized mortgage obligation which represents an interest in or is secured by a pool of receivables or other financial assets that are subject continuously to prepayment, then the actual yield of such security may vary according to the rate at which the underlying receivable or other financial assets are prepaid. Information concerning the factors that affect yield (including at a minimum estimated yield, weighted average life, and the prepayment assumptions of underlying yield) will be furnished upon your written request.

For More Information
Please e-mail us or call Commerce Capital Markets at 1-888-751-9000.

To return to Disclosure Statements, click here.