UBS Deposit Account Sweep Program Disclosure Statement Contents

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Summary 3

How the Program Works 4 Eligibility 4 Deposit Procedures 4 Withdrawal Procedures 4 Sweep Limit or Cap Election 4

Interest Rates 5 General 5 Interest Rate Tiers 5 The Value of Your Eligible Marketing Relationship Assets 5

Viewing Information About Your Deposit Accounts 5

Changes to the Program 5

Notices 5

Your Relationship with UBS and UBS Bank USA 5

Benefits to UBS and its Affiliates 6

FDIC Deposit Insurance 6 General Information 6 Questions about FDIC Deposit Insurance Coverage 7

SIPC® Protection 7

Alternatives to the Deposit Account Sweep Program 7

2 UBS Deposit Account Sweep Program About Your UBS Account: Deposit Account Sweep Program

Summary the amount of free cash balances that will be swept into We refer to funds on the Deposit Accounts. The limit you may elect is $250,000 deposit in the Deposit Through the UBS Deposit Account Sweep Program (the or more for an individual Securities Account, and $500,000 Accounts as “Deposited “Program”), available cash balances in eligible Resource or more for a joint Securities Account. Funds.” ® ® Management Accounts (RMAs ), Individual Retirement Throughout this Accounts (IRAs), Basic Investment Accounts, Business Amounts in excess of the automatic cap in Advisory disclosure statement, Services Account BSAs®, Coverdell Education Savings Accounts or the cap you impose for Brokerage Accounts, “Program” refers to the Accounts, and Investment Advisory Accounts (each if any, will be swept to a money market fund. UBS Deposit Account a “Securities Account”) at UBS Financial Services Inc. Sweep Program and UBS Financial Services Incorporated of Puerto Rico If you have multiple Securities Accounts in the same described here. (collectively “UBS”) are automatically deposited into insurable capacity for purposes of FDIC insurance, or if you interest bearing deposit accounts (the “Deposit Accounts”) hold other deposits (including certificates of deposit) at The “Bank” is UBS Bank USA, an affiliate at UBS Bank USA (Member FDIC) (the “Bank”). the Bank, you may exceed the applicable FDIC insurance of UBS Financial limits even if there is a cap on the amount of cash that Services Inc. Each Securities Account is either a “Brokerage Account” will be swept from those Securities Accounts into Deposit or an “Advisory Account.” Advisory Accounts eligible for Accounts. Your “Deposit Accounts” the Program are those enrolled in any of the following are interest-bearing programs: Managed Accounts Consulting Program, For more detailed information on the items covered in this FDIC-insured transaction Portfolio Management Program, ACCESS, Managed introduction section, see “Sweep Limit or Cap Election” on and money market Portfolio Program, UBS Strategic Wealth Portfolio, UBS page 4 and “FDIC Deposit Insurance” on page 6. deposit accounts. Strategic Advisor, and Private Wealth Solutions and such “Free cash balances” other programs as UBS may add from time to time. All Interest Rates include immediately other accounts eligible for the Program are Brokerage Interest rates paid on your Deposited Funds are determined available funds not Accounts. by the Bank in its discretion based upon a variety of required to pay debits or factors, including economic and business conditions. charges to your Account. Each business day, as long as all debits and charges to your The Bank sets different interest rates for different Securities Account have been satisfied, we will automatically “tiers” of UBS clients. These interest tiers are based upon “Business days” are transfer, or “sweep,” free cash balances of $1.00 or more your total eligible Marketing Relationship assets. See Monday through Friday. Bank holidays in the from your Securities Account (other than IRAs where we “Marketing Relationship Assets” in the “General Terms State of New York will sweep balances of $.01 or more), into your Deposit and Conditions” of the Agreements and Disclosures and New York Stock Accounts at the Bank subject to any cap described in the booklet (“General Terms and Conditions”) you received Exchange holidays are “Sweep Limit or Cap Election” section below. after you opened your Securities Account (which is not business days. available at ubs.com/accountdisclosures) and “The Value of FDIC Deposit Insurance Your Eligible Marketing Relationship Assets” on page 5 for Deposited Funds are Deposited Funds will be eligible for federal deposit detailed information about Marketing Relationship assets insured by the FDIC up insurance from the Federal Deposit Insurance Corporation and how they are calculated. to $250,000 for each insurable capacity, (the “FDIC”) up to $250,000 (including principal and subject to FDIC accrued interest) for each insurable capacity (for example, Clients with higher total eligible Marketing Relationship aggregation rules. individual, joint, IRA, etc.). assets will generally receive higher interest rates on Deposited Funds than clients with lower total eligible For purposes of calculating the FDIC insurance for your Marketing Relationship assets. Interest rates paid on the funds, deposit accounts (including certificates of deposit Deposited Funds may change daily. Information regarding issued by the Bank) that you may establish in the same current interest rates on the Deposit Accounts is available insurable capacity directly with the Bank or through an online at ubs.com/sweepyields or by calling your Financial intermediary, such as UBS, will be aggregated with the Advisor. For more detailed information on the items Deposit Accounts you establish through the Program in covered in this introduction, see “Interest Rates” and the same insurable capacity. The extent of, and limitations “Alternatives to the Deposit Account Sweep Program.” on, federal deposit insurance are discussed in the section titled “FDIC Deposit Insurance,” which you should review Your Alternatives carefully. If you have more than one Account that sweeps If you are eligible to participate in the Program but do not to the Bank, the amount deposited at the Bank may wish to have your free cash balances deposited with the exceed the amount covered by FDIC insurance (currently Bank through the Program, you may elect at any time to $250,000 per insurable capacity). You are responsible have your free cash automatically swept without limit into for monitoring the total amount of your funds on a tax-exempt UBS Money Market Fund or, for Puerto Rico deposit with the Bank in order to determine the residents only, into the Puerto Rico Short Term Investment extent of deposit insurance coverage available to you Fund, Inc. Please note that clients with Basic Investment on those deposits, including deposits in the Deposit Accounts, IRAs and other tax-deferred accounts are not Accounts. eligible to select a tax-exempt sweep fund. You may wish to consider alternatives to the available Sweep options No SIPC Protection for the investment of your cash. See “Alternatives to the The Deposit Accounts are not protected by the Securities Program.” Investor Protection Corporation (“SIPC”). See “SIPC Protection” on page 7. Financial Benefits to UBS Financial Services Inc. and Conflicts of Interest Sweep Limit or Cap Election UBS Financial Services Inc. will receive, to the extent For Advisory Accounts an automatic limit or “cap” of permitted by applicable law, an annual fee of up to $25 $250,000 per Securities Account owner will apply from the Bank for each UBS Securities Account that to the amounts that can be swept into the Deposit sweeps into Deposit Accounts at the Bank and the Bank Accounts. receives certain benefits. For more information, see “Your Relationship With UBS and UBS Bank USA” and “Benefits For Brokerage Accounts, no automatic limit or “cap” to UBS and its Affiliates.” applies, however, you may elect to place a limit or cap on

3 About Your UBS Account: Deposit Account Sweep Program Please ask your Financial How the Program Works related TA until the end of the month. At the beginning Advisor for additional of the next month, funds on deposit in your TA will be details concerning Eligibility transferred to your MMDA, less any threshold balance we eligibility. The Program is available only to individuals, IRAs, trusts (as elect to maintain. The limit on MMDA transfers will not long as all beneficiaries of the trust accounts are natural limit the number of withdrawals you can make from funds “TA” means a persons or nonprofit organizations), sole proprietors and on deposit at the Bank. transaction account governmental entities (each an “Eligible Participant”). Custodial accounts are eligible for the Program if each To reduce the number of transfers between your MMDA “MMDA” means a beneficiary is an Eligible Participant. Note, however, that and TA, UBS Financial Services Inc. may elect to maintain money market deposit an Eligible Participant will be considered by UBS (at its a threshold balance in your TA based upon the amount of account discretion) to be a non-Eligible Participant if UBS becomes debit activity in your Account. You will earn the same rate aware that the entity is prohibited as a matter of law from of interest and receive the same level of FDIC insurance “Taxable Funds” include holding funds at the Bank. coverage regardless of the allocation of your funds the UBS RMA Money between your MMDA and TA. Market Portfolio, Other entities organized or operated to make a profit, such the UBS RMA U.S. as corporations, partnerships, limited liability companies, Sweep Limit or Cap Election Government Portfolio, associations, business trusts or other organizations are If you hold an Advisory Account, an automatic limit or cap the UBS Cashfund Inc. not eligible for the Program. In addition, the Program is of $250,000 per account owner will apply to the amounts and the UBS Retirement not currently available to certain specified types of clients that can be swept into your Deposit Accounts. Amounts Money Fund. including: in excess of the cap will be swept into the default Sweep •• Nonprofit organizations, including organizations Fund designated for your advisory program and account “Tax-Exempt Sweep described in sections 501(c)(3) through (13) and (19) of type unless you select a different Sweep Fund option for Funds” include the UBS the Internal Revenue Code of 1986, as amended (the which you may be eligible. For more information, contact RMA Tax-Free Fund Inc., “Code”), your Financial Advisor. the UBS RMA California •• Estates, Municipal Money Fund, •• Those who are not residents of the United States, or If you hold a Brokerage Account, you may place a limit, or the UBS RMA New York •• Retirement plans qualified under Section 401(a) (other cap on the amount of cash balances that will be swept into Municipal Money Fund than IRAs established under the Code) or Section 403(b) the Deposit Accounts by contacting your Financial Advisor. and Puerto Rico Short Term Investment Fund, (7) of the Code or under any other employee retirement The cap may be set at $250,000 or more for individual Inc. or welfare plan subject to the Employee Retirement accounts and at $500,000 or more for joint accounts (in Income Security Act of 1974, as amended (“ERISA”). each case, on a per-account basis). If you choose a cap “Sweep Funds” include; for your Brokerage Account, amounts in excess of the cap • UBS RMA Money Deposit Procedures will be swept, without limit, into the UBS money market Market Funds When free cash balances in your Securities Account are or other fund that you select from those offered by UBS • UBS Retirement first available to be swept to the Bank (as described in the for this purpose (the “Sweep Fund(s)”). The availability Money Fund and Important Information About Your New Account booklet), of certain Sweep Funds may be restricted depending on • Puerto Rico Short Term Investment UBS, acting as your agent, will open Deposit Accounts the type of Securities Account and the amount of eligible Fund, Inc. consisting of a transaction account (“TA”) and a money assets you hold with UBS on a Marketing Relationship market deposit account (“MMDA”) on your behalf at the basis. Please contact your Financial Advisor for a list of the These are fully described Bank. Acting as your agent, UBS will deposit available currently available Sweep Funds. in the prospectuses cash balances into your MMDA at the Bank (so long as all debits and charges to your Securities Account are satisfied). When converting a Brokerage Account to an Advisory For more information, All withdrawals will be made from your TA. Periodically, account your Deposit Account balance will be automatically contact your Financial UBS will transfer funds from your MMDA to your TA capped based on account ownership limits. Amounts in Advisor. as necessary to satisfy debits received in your Securities excess of the cap will be swept into your secondary sweep Account (for example, for securities purchases, checking option. The RMA Money Fund, Cash Reserves Money and debit card activity, etc.). Transfers from the MMDA to Fund (for Individual Retirement Accounts), Liquid Assets the TA and withdrawals from the TA are discussed below (for Individual Retirement Accounts) or Tax-Free Money under “Withdrawal Procedures.” Fund you selected will be used as your secondary sweep option for your investment advisory account depending Contact your Financial Advisor if, at any time, you would on your program selection and account type. If you would like to withdraw your funds from the Bank, close your like to change the money market fund used as your Deposit Accounts with the Bank and designate the Bank as secondary sweep option, if applicable, please contact ineligible to receive future deposits, or if eligible, choose a your Financial Advisor. tax-exempt Sweep Fund. Please note that you will be responsible for Withdrawal Procedures monitoring the total amount of deposits that you As your agent, UBS Financial Services Inc. will make the have with the Bank in order to determine the extent necessary withdrawals from your Deposit Accounts to of deposit insurance coverage available to you. satisfy debits or charges in your Securities Account. Debits Neither UBS nor UBS AG will be responsible for any are amounts due to UBS on settlement date for securities insured or uninsured portion of the Deposit Accounts. purchases as well as other debits and fees from your Please be aware that because UBS’s cap (whether Account, including, without limitation, margin loans and voluntary or mandatory) is on a per-account basis, if fees. Charges are amounts due to UBS for checks, bill you have multiple accounts at UBS held in the same payments and electronic funds transfers, UBS Visa® debit insurable capacity that sweep into the Bank, or if card purchases and cash withdrawals. No debits or charges, you hold other deposits at the Bank (including CDs), including, without limitation, charges resulting from check you may exceed the applicable FDIC insurance limits writing, will be satisfied directly from your Deposit Account. even though you have elected to cap the amount of cash balances that will be swept into the Deposit As required by federal banking regulations, the Bank Accounts. You should carefully review the section reserves the right to require seven days’ prior notice before titled “FDIC Deposit Insurance.” permitting a transfer of funds out of the Deposit Accounts. The Bank has no intention of exercising this right at the For accounts that exceed the cap amount at the time present time. the cap is elected or set, UBS will rebalance your Deposit Account to the cap level on the following business day. Federal banking regulations generally limit the transfers Please be aware that the monthly interest accrued on the from an MMDA to a total of six (6) during a monthly Deposit Accounts, will be credited on the fifth business statement cycle. At any point during a month in which day of each month (as of the fourth business day of each transfers from your MMDA have reached the applicable month) and will not be subject to the cap. In this case, UBS limit, all funds will be transferred from your MMDA to the will rebalance your Deposit Account to the cap level on the

4 About Your UBS Account: Deposit Account Sweep Program day following the interest posting. During the intervening The Bank reserves the right to change its eligible asset tiers If you have questions time, your Deposit Accounts may exceed your cap level. at any time without notice. Information regarding current about interest rates Following the establishment of your cap, your election of interest rates and interest rate tiers is available online at paid on your Deposit a cap and your cap level will appear on your UBS periodic ubs.com/sweepyields, through UBS‘s Online Services or by Accounts or rates of return on other sweep account statement. calling your Financial Advisor. options, call your Financial Advisor. Prospectuses for the available Sweep Funds are available The Value of Your Eligible Marketing Relationship Assets online at ubs.com/sweepyields, or may be obtained by The value of your eligible Marketing Relationship assets will contacting your Financial Advisor. An investment in a be calculated at each calendar month-end. This valuation For more information money market fund is not insured or guaranteed by will then be used to determine your interest rate tier for about householding the FDIC or any other government agency. Although each the interest period beginning on the fifth business day of rules, contact your money market fund seeks to preserve the value of your the immediately following month. If you establish a new Financial Advisor. investment at $1.00 per share, it is possible to lose money Securities Account that is not part of an existing Marketing by investing in the money market funds. Money Market Relationship, in most cases your Securities Account will Not all assets qualify as funds are sold by prospectus. Investors should consider be placed in the asset tier of $500,000 to $999,999 until Marketing Relationship assets. For more the investment objectives, charges, and expenses and risk the value of your eligible Marketing Relationship assets information, contact factors carefully before investing. The prospectus contains is calculated at the end of the following calendar month. your Financial Advisor. this and other information. Please read it carefully before However, if you have a pre-existing relationship with UBS, you invest. your Securities Account will be placed in the asset tier applicable to the amount of eligible assets actually held in With UBS Online Services your Securities Account as of the prior calendar month- you can view your UBS Interest Rates end. Account information and monitor balances in your Deposit Accounts at the General Bank online at any time. The Bank will pay the same rate of interest on your TA Viewing Information About Your Deposit Accounts To enroll, contact your and MMDA. Interest rates will be established periodically Financial Advisor. UBS based on prevailing business and economic conditions, as All activity in your Deposit Accounts, including the initial Online Services is free of well as the nature and scope of your relationship with us. deposit, opening and closing balances and any interest charge for all Securities Interest rates paid on Deposit Accounts may change daily. earned for the period, will appear on your periodic Accounts. New interest rates will be made available on the business Securities Account statement. day following the day when the interest rate is set, and will UBS may modify the apply to balances in the Deposit Accounts on the day it is Program. made available. Changes to the Program

Interest will accrue on Deposit Account balances from the UBS may modify the Program at any time in its sole day funds are deposited at the Bank through the business discretion. Such modifications may include, but are not day preceding the date of withdrawal from the Bank. limited to, adding depository institutions to the Program. Interest on account balances will be accrued daily, rounded Changes to the Program will be effective as described in up or down each day to the nearest $0.01. As a result, the “General Terms and Conditions” of the Agreements balances in the Deposit Accounts that earn daily total and Disclosures booklet. interest of less than half a cent will not accrue any interest. Interest will be compounded daily and credited We will notify you in advance of any material changes to on the fifth business day of each month (as of the fourth the Program. If new depository institutions are added to business day of each month). Please note that due to the Program we will give you the opportunity to designate year-end processes, in addition to the regular crediting a new depository institution as ineligible to receive your of interest in January of each year, interest will also be deposits before any funds are deposited into a new credited on the first business day of January (as of the last depository institution. business day in December).

Interest rates paid on your Deposit Accounts may Notices equal, exceed, or be lower than the prevailing rate of return of the Sweep Funds. The rates of return All notices to you regarding the Program may be by means paid with respect to the Deposit Accounts may be higher of a letter, an entry on your periodic account statement, or lower than the rates of return available to depositors an entry on a trade confirmation or by any means set forth making deposits directly with the Bank or other depository in the “General Terms and Conditions” of the Agreements institutions in comparable accounts. You should compare and Disclosures booklet. the terms, rates of return, required minimum amounts, charges and other features of the Program with other accounts and alternative investments. Your Relationship with UBS and UBS Bank USA

Interest Rate Tiers Under the Program, UBS Financial Services Inc. acts as your The Bank’s interest rates are tiered based upon the value of agent in establishing your Deposit Accounts at the Bank, a client’s eligible Marketing Relationship assets (as defined and depositing funds into them and withdrawing funds in the General Terms and Conditions). Generally, clients from them. No passbook, certificate or other evidence with a higher value of eligible Marketing Relationship of ownership will be issued to you. Your ownership of assets will receive higher interest rates than those with a the deposited funds will be evidenced by a book entry lower value of eligible Marketing Relationship assets. The on the Securities Account records of the Bank and by Bank’s interest rate tiers are: the records UBS Financial Services Inc. maintains as your custodian. As discussed above, your periodic Securities Interest Rate Tiers Account statement will reflect the balances in your Deposit $10 million and more Accounts at the Bank. You should retain the statements for $2 million to $9,999,999 your records. $1 million to $1,999,999 $500,000 to $999,999 UBS Financial Services Inc. may, in its sole discretion $250,000 to $499,999 and without notice, terminate your participation in less than $250,000 the Program at any time. If this occurs, you may deal directly with the Bank subject to its rules with respect to maintaining Deposit Accounts. Similarly, if you

5 About Your UBS Account: Deposit Account Sweep Program terminate your participation in the Program, you may the unlikely event that federal deposit insurance payments establish a direct relationship with the Bank, subject become necessary, payments of principal plus unpaid and to the policies of the Bank, by requesting to have the accrued interest will be made to you. There is no specific Deposit Accounts established in your name. This will time period during which the FDIC must make insurance result in the separation of the Deposit Accounts from payments available. You may be required to provide your Securities Account. documentation to the FDIC and UBS before insurance payments are made. For example, if you hold deposits UBS Financial Services Inc. will receive an annual fee from as trustee for the benefit of trust participants, you may the Bank of up to $25 for each UBS Securities Account be required to furnish affidavits and provide indemnities that sweeps into a Deposit Account at the Bank, to regarding an insurance payment. the extent permitted by law. UBS reserves the right to increase, decrease or waive all of part of this fee. Other Under certain circumstances, if you become the owner than applicable fees and charges imposed by UBS on your of deposits at the Bank because another depositor dies, Securities Accounts (such as for returned checks or stop- beginning six months after the death of the depositor, payments), which are described in the “Fees and Charges” the FDIC will aggregate those deposits to calculate the section of the Agreements and Disclosures booklet, there maximum insurance amount with any other deposit that will be no charge, fee or commission imposed on your you own in the same insurable capacity at the Bank. Securities Account with respect to the Program. Examples of accounts that may be subject to this FDIC policy include joint accounts, “payable on death” accounts and certain trust accounts. The FDIC provides the six-month Benefits to UBS and its Affiliates “grace period” to permit you to restructure your deposits to obtain the maximum amount of deposit insurance The Bank uses the cash balances in the Deposit Accounts for which you are eligible. If deposits in your Deposit to fund new lending and investment activity. The Bank will Accounts or other deposits at the Bank are assumed by seek to make a profit by achieving a positive “spread,” another depository institution as a result of a merger or or difference between (a) the sum of the amount of consolidation, such deposits will continue to be separately interest that it pays for deposits and (b) the sum of the insured from deposits that you might have established amount of interest that it charges for loans and the return with the acquirer until the expiration of a six-month period on investments made with any deposits that it does not from the date of the acquisition. Thereafter, any assumed need to fund loans. As with other depository institutions, deposits will be aggregated with your existing deposits the profitability of the Bank is determined largely by with the acquirer held in the same insurable capacity for the difference between the interest paid and the costs purposes of federal deposit insurance. Any deposit opened associated with its deposits, and the interest or other at the depository institution after the acquisition will be income earned by the Bank on its loans, investments and aggregated with deposits established with the acquirer for other assets. Like other depository institutions, the Bank purposes of federal deposit insurance as well. improves its profitability when it lowers the interest rates paid on its deposits, including the Deposit Accounts. The The application of the maximum insurance amount is Bank has no obligation to pay interest based upon the illustrated by several common factual situations discussed Bank’s profitability or the income earned on Bank loans, below and on the next page. investments or other assets. Individual Accounts Funds owned by an individual and held in an account “FDIC” refers to FDIC Deposit Insurance in the name of an agent or nominee of such individual the Federal Deposit (such as the Deposit Accounts held through UBS) or held Insurance Corporation. General Information by a custodian (for example, under the Uniform Gifts to The Deposit Accounts are insured by the FDIC, an Minors Act or the Uniform Transfers to Minors Act) are independent agency of the U.S. government, to a not treated as owned by the agent, nominee or custodian, maximum amount equal to $250,000 per depositor but are added to other deposits of that individual held (including principal and interest) when aggregated with all in the same insurable capacity (including funds held in a other deposits held by you in the same insurable capacity sole proprietorship) and are insured up to $250,000 in the at the Bank. Your funds become eligible for deposit aggregate. insurance immediately upon placement in your Deposit Accounts. Generally, any accounts or deposits (including Joint Accounts CDs issued by the Bank) that you maintain directly with An individual’s interest in funds held under any form of the Bank, or through an intermediary (such as UBS) in joint ownership valid under applicable state law may be the same insurable capacity in which the deposits in the insured up to $250,000 in the aggregate, separately and Deposit Accounts are maintained, will be aggregated with in addition to the $250,000 allowed on other deposits the deposits in your Deposit Accounts, for purposes of individually owned by any of the co-owners of such calculating the maximum insurance amount. In the unlikely accounts (referred to here as a “Joint Account”). For event that the Bank should fail, the Deposit Accounts example, a Joint Account owned by two persons would are insured, up to the maximum insurance amount, for be eligible for insurance coverage of up to $500,000 principal and interest accrued to the day the Bank is closed. ($250,000 for each person), subject to aggregation with Interest is determined for insurance purposes in accordance each owner’s interests in other Joint Accounts at the bank. with federal law and regulations. Joint Accounts will be insured separately from individually owned accounts only if each of the co-owners is an Note that if you hold multiple Securities Accounts with UBS individual person, has signed a UBS Account agreement in the same insurable capacity that sweep to the Deposit and has a right of withdrawal on the same basis as the Accounts, once cash in those Accounts exceeds $250,000 other co-owners. or $500,000 (as applicable) in the aggregate, then your funds on deposit with the Bank will exceed FDIC insurance Revocable Trust Accounts coverage limits. Deposits of any one depository institution held in a “revocable trust” are generally insured up to $250,000 per You are responsible for monitoring the total amount beneficiary if the beneficiary is a natural person, charity of deposits that you have with the Bank in order to or other non-profit organization. There are two types of determine the extent of deposit insurance coverage revocable trusts recognized by the FDIC: informal and available to you. formal.

Neither UBS nor UBS AG will be responsible for any Informal revocable trusts include accounts in which the insured or uninsured portion of the Deposit Accounts. In owner shows an intent that, at his or her death, the funds

6 shall belong to one or more specified beneficiaries. These insurance coverage of deposits held in more than one About Your UBS Account: Deposit Account Sweep Program trusts may be referred to as a “Totten trust” account, insurable capacity. You may also obtain information by “payable upon death” account or a “transfer on death” contacting the FDIC, Consumer Response Center: account. Each beneficiary must be included in UBS’s •• By mail: Deposit Insurance Outreach account records. Division of Depositor and Consumer Protection Supervision and Consumer Affairs Formal revocable trusts are written trust arrangements 550 17th Street, N.W. in which the owner retains ownership and control of Washington, D.C. 20429 the assets and designation of beneficiaries during his or •• By phone: 877-275-3342 or 800-925-4618 (TDD) her lifetime. The trusts may be referred to as “living” or •• By e-mail: use the FDIC’s On-line Customer Assistance “family” trusts. The beneficiaries of a formal revocable Form available on the FDIC’s website. trust do not need to be included in UBS’s account records. •• Online: fdic.gov.

Under FDIC rules, if a revocable trust has five or fewer beneficiaries, FDIC coverage will be up to $250,000 per SIPC Protection beneficiary, multiplied by the number of beneficiaries, regardless of the proportional interests of each beneficiary UBS Financial Services Inc. and UBS Financial Services in the revocable trust. If the trust has six or more Incorporated of Puerto Rico are members of the Securities beneficiaries, the funds will be insured for the greater of Investor Protection Corporation (SIPC), which provides $1,250,000 or the aggregate amount of all beneficiaries’ protection for your Securities Account(s) with us up to proportional interest, limited to $250,000 per beneficiary. $500,000, including $250,000 for free cash balances in the unlikely event that the Firm fails financially. SIPC Deposits in all revocable trusts of the same owner— asset protection limits apply, in aggregate, to all Securities informal and formal—at the same depository institution Accounts that you hold in a particular legal capacity. The will be aggregated for insurance purposes. A revocable Sweep Funds and other Sweep options are not bank trust established by two owners where the owners are the deposits and are not protected by the FDIC. However, sole beneficiaries will be treated as a Joint Account under balances in the Sweep Funds and other Sweep options are applicable rules and will be aggregated with other Joint covered by the SIPC and the supplemental insurance we Accounts. have obtained for your benefit. For more information, see the Additional Disclosures section of this booklet. Irrevocable Trust Accounts Funds held in an account established pursuant to an irrevocable trust agreement created by the same grantor Alternatives to the Deposit Account Sweep Program (as determined under applicable state law) will be insured for up to $250,000 per beneficiary provided that the If you are eligible to participate in the Program but do beneficiary’s interest in the account is non-contingent not wish to have the free cash balances in your Securities (in other words, capable of determination without Account(s) deposited with the Bank through the Program, evaluation of contingencies). According to the FDIC, you may elect to have your available free cash balances Coverdell Education Savings Accounts should be treated as automatically swept into a tax-exempt Sweep Fund. The irrevocable trust accounts for deposit insurance purposes. following tax-exempt Sweep Funds are currently available The deposit insurance of each beneficiary’s interest is for free cash balances: separate from the coverage provided for other accounts •• UBS RMA Tax-Free Fund Inc. maintained by the beneficiary, the grantor, the trustee or •• UBS RMA California Municipal Money Fund other beneficiaries. A beneficiary’s interest in funds held in •• UBS RMA New York Municipal Money Fund irrevocable trust accounts created by the same grantor at •• The Puerto Rico Short Term Investment Fund, Inc. the same institution will be aggregated and insured up to $250,000. State-specific municipal funds are intended for residents of those states only. The Puerto Rico Short Term Medical Savings Accounts Investment Fund, Inc. is offered exclusively to Puerto Rico Funds held in a Medical Savings Account, sometimes residents as defined in the fund’s prospectus. The Puerto referred to as an Archer Medical Savings Account, will Rico Short Term Investment Fund, Inc. is not a money be eligible for deposit insurance as either an individual market fund registered under the U.S. Investment Company account, a revocable trust account or an employee benefit Act of 1940, does not comply with rules applicable to U.S. plan. You may wish to consult with your attorney or the registered funds and presents a higher degree of risk than FDIC to determine the available coverage. those funds. The Puerto Rico Short Term Investment Fund, Inc is sold by prospectus only, is not FDIC-Insured, not Individual Retirement Accounts bank guaranteed, and may lose value. Funds held in an IRA, including traditional, Roth, SEP and SIMPLE IRAs are insured up to $250,000 in the aggregate. You may elect a tax-exempt Sweep Fund when you open Funds held in an IRA will be aggregated with funds held your Securities Account or by contacting your Financial in some other retirement plans in which the owner of the Advisor at any time. Please note that Basic Investment IRA has an interest. Under FDIC regulations an individual’s Accounts, IRAs and other tax-deferred accounts are not interest in deposits at the Bank held by (i) IRAs, (ii) deferred eligible to select a tax-exempt Sweep Fund. compensation plans for certain employees of state or local governments or tax-exempt organizations (i.e., Section 457 UBS also offers a number of investment products that you Plans), (iii) self-directed “Keogh Plans” of owner-employees may wish to consider as alternatives to maintaining cash described in section 401(d) of the Internal Revenue Code deposits at the Bank through the Program. Consider your of 1986, as amended, and (iv) self-directed defined investment objectives, liquidity needs and risk tolerance contribution plans, will be insured for up to $250,000 in when you review these alternatives. Some of these the aggregate whether or not maintained by the same alternatives may pay an interest rate or dividend that is employer or employee organization. Thus, the owner of an higher than the rate you receive on the Deposit Accounts. IRA will only be entitled to insurance up to $250,000 for While deposits in the Deposit Accounts, certificates of interests in retirement plans and accounts holding funds at deposit and any other available deposit products offered the Bank that are subject to aggregation. by FDIC-insured depository institutions are covered by FDIC insurance up to applicable limits, other investment Questions about FDIC Deposit Insurance Coverage alternatives, such as money market funds, are not FDIC- If you have questions about basic FDIC insurance coverage, insured, are not guaranteed by a bank, and may lose value. please contact your Financial Advisor. You may wish to seek advice from your own attorney concerning FDIC

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