Common use of Liquidation of Collateral Clause in Contracts

Liquidation of Collateral. When you borrow on margin, some or all of the securities in your Account become Stifel’s collateral for the loan to you. A decline in the value of these securities is a decline in the value of the collateral. If the collateral in your Account falls below either industry minimums or Stifel’s require- ments, Stifel can sell securities or other assets in your Account to cover the deficiency without notice to you. Stifel may also sell property in your accounts and cancel open orders for the purchase or sale of property without notice if, in our discre- tion, it is necessary for our protection or in the event you fail to make payment(s) for loan balances. In such events, Stifel also