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A Message From Wachovia

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Margin Policy Updates - Effective Immediately, 10-10-2008
Unprecedented market conditions necessitate a temporary operating model for the treatment of margin calls:
1. All margin calls will be due in 3 days, unless the call exceeds $250,000 and the account equity is less than 20%
2. Any margin call over $250,000 in an account with less than 20% equity must be met the day after it is created.
·Market depreciation creates a call Tuesday where an account is in a $300,000 call and at 19% equity
·The call is issued and must be met on Wednesday
·If the call is not met, Credit/Margin sells out the account on Thursday at market open.
·If a call exists and trading or market depreciation increases the call over $250,000 where the account equity is less than 20%, the margin call due date will be accelerated. Margin calls will be due the next day.
3. All margin sellouts executed by Operations will commence at market open on past due date
4. Any sellout processed by Credit/Margin operations will cover the entire outstanding margin call.
·$1,000 call due Tuesday
·$1,000 call due Wednesday
·Tuesday's call is not met. On Wednesday at market open, Credit/Margin sells out the account to cover margin calls in the amount of $2,000
5. Credit/Margin can sell out/buy in any security in the clients account to meet a margin call.
6. Notification to clients is not required under the Margin Agreement, and action can be taken at any time after a call has been issued if the Firm decides it is necessary.
7. Credit/Margin sellout commission is not paid to the FA


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