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M914471105Understanding your cash sweep optionsThe following information is being provided so thatyou can review your cash sweep option(s) with yourMerrill Lynch financial advisor (“financial advisor”)or a Merrill Edge representative. Included is anoverview of cash sweep options and how they work,explanations of protection/insurance coverage, howinterest rates are calculated, and other importantconsiderations. Additionally, the charts at the end ofthis notice provide recent rates for sweep options thatmay be available to you, depending on your accounttype and other eligibility criteria.Automatic cash sweep optionsThe deposit of checks, the sale of securities andother activity generate cash balances in yourbrokerage account. This cash may be automatically“swept” to bank deposit accounts with one or moreMerrill Lynch Affiliated Banks: Bank of America,N.A. (“BANA”), Bank of America California,N.A. (“BA-CA”) or Merrill Lynch InternationalBank Limited (“MLIB”) (“Merrill Lynch AffiliatedBanks”). Or, depending on your account type andthe total asset level of statement-linked accounts,you may be eligible to choose a tax-exempt moneymarket mutual fund from BlackRock or BofA Global Capital Management as an automatic cashsweep option.With an automatic cash sweep feature, also knownas a “Primary Money Account,” you do not needto contact your financial advisor or a MerrillEdge representative to deposit or withdraw fundsfrom your Primary Money Account. The sweephappens automatically.The chart below outlines the available automatic cash sweep options by account type.Primary money accounts for U.S. residents/U.S. citizensAutomatic cash sweep options –bank deposit programsAccount type*NameParticipating banksAutomatic cash sweep options –Money market mutual fundsCash Management Account (CMA Account), CMA SubAccount , CashManagement Account for TrustMerrill Lynch Bank DepositProgram (“MLBD Program”)BANA and BA-CAClients with 250,000 or more in eligiblestatement-linked assets may also designate oneof the following as an automatic sweep option: BIF Tax-Exempt Fund A State Fund under the BIF Multi-StateMunicipal Series Trust† BofA Tax-Exempt Reserves – Investor Class A tax-exempt state fund under the BofAFunds Series Trust‡IRA, Roth, Rollover, SEP, SIMPLE andBASICRetirement Asset SavingsProgram (“RASP”)BANA and BA-CANot availableEducation Savings Account (ESA)RASPBANA and BA-CANot availableHealth Savings Account (HSA) andMedical Savings AccountsMLBD ProgramBANA and BA-CANot availableMerrill Edge Self-Directed CMAMerrill Lynch Direct DepositProgramBANAClients with 250,000 or more in eligiblestatement-linked assets may also designate oneof the following as an automatic sweep option: BIF Tax-Exempt Fund A State Fund under the BIF Multi-StateMunicipal Series TrustMerrill Edge Self-Directed IRA, ROTH,Rollover, SEP and SIMPLERetirement Asset SavingsProgram II (“RASP II”)BANA and BA-CANot available* Cash sweep options for accounts enrolled in Investment Advisory Programs or established through Money Manager Services may differ. The following State Funds are available as part of the BIF Multi-State Municipal Series Trust: CA, CT, MA, MI, NJ, NY, OH and PA.‡ The following tax-exempt state funds are available as part of the BofA Funds Series Trust: BofA California Tax-Exempt Reserves–Investor Class; BofAConnecticut Municipal Reserves–Investor Class; BofA Massachusetts Municipal Reserves–Investor Class; and BofA New York Tax-Exempt Reserves–Investor Class.†1
Understanding your cash sweep optionsPrimary money accounts for non-residents/non-U.S. citizens*Account type†Automatic cash sweep options –Bank deposit programsNameCMA, CMA SubAccount and CashManagement Account for TrustParticipating BanksMLBD ProgramBANA and BA-CAInternational Bank VariableRate Deposit FacilityMLIB‡Automatic cash sweep options –Money market mutual fundsDollar Assets Portfolio§* These automatic cash sweep options are not available to all clients. Jurisdictional restrictions apply. Please contact your financial advisor or a Merrill Edgerepresentative to determine if you are eligible to participate. For additional information on these automatic cash sweep options, please see the accountagreement or contact your financial advisor or a Merrill Edge representative.† Cash sweep options for accounts enrolled in Investment Advisory Programs may differ.‡ Deposits are placed with MLIB, an Irish bank in Dublin. Certain protections are afforded to eligible depositors with deposits held in MLIB under the IrishDeposit Guarantee Scheme. Payments to eligible depositors are limited to a maximum of 100,000 of an eligible depositor’s loss. Further details are availablefrom MLIB or at the website of the Central Bank of Ireland at www.centralbank.ie. MLIB deposits are not insured by the FDIC.§ Dollar Assets Portfolio (the Fund) is offered only to non-US citizens who are not residents of the United States. It is not offered for sale or sold in theUnited States, its territories or possessions. The Fund may only be offered in jurisdictions in which such offer or sale is permitted. The Fund is a no-loadopen-ended investment company incorporated as an exempted company under the laws of the Cayman Islands. The Fund is a money market fund seekingcurrent income consistent with the preservation of capital and liquidity by investing in a diversified portfolio of United States dollar denominated short-termmoney market instruments of high quality issuers. There can be no assurance that the investment objective of the Fund will be realized. BlackRock InvestmentManagement, LLC acts as the investment adviser (the Investment Adviser) for the Fund, with full responsibility for the selection and management of the Fund’sportfolio investments. The Investment Adviser is registered with the U.S. Securities and Exchange Commission pursuant to the U.S. Investment Advisers Act of1940, as amended.Your Merrill Lynch account statement indicates where your cash balances are currently deposited or invested,as well as recent yield information.Additional money accounts/manual alternativesConsiderations when choosing a cash sweep optionIn addition to your Primary Money Account, youmay be able to choose additional cash sweep optionsor “manual alternatives” that provide automaticwithdrawal/redemption only. Depending on youraccount type, manual alternatives may includetaxable and tax-exempt money market mutual fundsor the Insured Savings Account (ISA ),1 a limitedtransaction deposit program.When choosing a cash sweep option, it is importantto consider the following:If you choose a manual alternative, you mustcontact your financial advisor or a Merrill Edgerepresentative each time you want to invest ordeposit your cash. Otherwise, available cash willcontinue to automatically sweep to your PrimaryMoney Account.Manual alternatives provide an automatic withdrawal/redemption feature in order to satisfy purchases anddebits from your account, including check writing,Visa card activity and other cash managementactivity. Therefore, you do not need to contact yourfinancial advisor or a Merrill Edge representativewhen you need to withdraw funds. However, cashin a manual alternative will only be withdrawnautomatically when the Primary Money Account isdepleted or in the order in which you have designatedfor the account.Please speak with your financial advisor or aMerrill Edge representative to find out more aboutthe manual alternatives that may be available to you. our needs, goals, risk tolerance, investment timeYhorizon and liquidity requirements. Yields may differ between money market mutualfunds and bank deposit programs. Money market mutual funds and bankdeposit programs have different types ofprotection/insurance coverage. See sectionsbelow for additional details. Money market mutual funds have investmentrisk of various degrees and are not guaranteed orinsured as to principal.FDIC insurance and other bank deposit protectionYour sweep deposits in BANA and BA-CA areinsured by the Federal Deposit Insurance Corporation(“FDIC”) up to the applicable standard maximumdeposit insurance amount (“SMDIA”). The SMDIAis currently 250,000 per depositor, per ownershipcategory, per bank. Deposits maintained in differentcategories of legal ownership — such as individualaccounts, joint accounts or certain retirementaccounts — are separately insured by the FDIC, upto applicable insurance limits. FDIC insurance coversboth principal and credited interest. Any accountsor deposits maintained with BANA or BA-CA inthe same legal ownership category, whether directly,Continued on page 32
Understanding your cash sweep optionsthrough other Merrill Lynch accounts or through anyother intermediary, would be aggregated for FDICinsurance limit purposes.Certain protections are afforded to eligible depositorswith deposits held in MLIB under the Irish DepositGuarantee Scheme. Payments to eligible depositorsare limited to a maximum of 100,000 of an eligibledepositor’s loss. Further details are available fromMLIB or at the website of the Central Bank ofIreland at www.centralbank.ie. Deposits placedwithin MLIB are not insured by the FDIC.Clients are responsible for monitoring the totalamount of deposits held at BANA and BA-CA inorder to determine the extent of FDIC insuranceavailable to such deposits. Merrill Lynch is notresponsible for any insured or uninsured portionof such deposits.For additional information on FDIC, visitwww.fdic.gov.SIPC and excess-SIPC coverageThe securities and cash that Merrill Lynch holdsin your brokerage account are protected by theSecurities Investor Protection Corporation (“SIPC”).If a U.S. broker-dealer fails, SIPC funds are availableto make up for any shortfall of client assets that thebroker-dealer was required to maintain — up toa maximum of 500,000 per client for securities,inclusive of up to 250,000 per client for cash.In addition, Merrill Lynch has obtained “excessSIPC” coverage from a Lloyd’s of London syndicatefor large client accounts. This policy provides furtherprotection (including up to 1.9 million for cash) forcustomers who would not be made whole by SIPC,subject to an aggregate loss limit of 1 billion for allcustomer claims.Please note that money market mutual funds anddeposits in BANA and BA-CA are not “cash” forpurposes of SIPC account protection. Rather, moneymarket mutual funds receive SIPC and excess-SIPCprotection as securities, and deposits in BANA andBA-CA are protected by FDIC insurance. SIPCand excess-SIPC coverage do not protect againstinvestment losses from market action.For additional information on SIPC, visitwww.sipc.org.Benefits of bank deposits to Merrill LynchDeposits held at the Merrill Lynch Affiliated Banksare financially beneficial to Merrill Lynch and itsaffiliates. For example, the Merrill Lynch AffiliatedBanks use bank deposits to fund current and newlending, investment and other business activities. Likeother depository institutions, the profitability of theMerrill Lynch Affiliated Banks is determined in largepart by the difference between the interest paid andother costs incurred by them on bank deposits, andthe interest or other income earned on their loans,investments and other assets. The deposits providea stable source of funding for the Merrill LynchAffiliated Banks, and borrowing costs incurred tofund the business activities of the Merrill LynchAffiliated Banks have been reduced by the use ofdeposits from Merrill Lynch clients.Merrill Lynch receives up to 100 per year fromBANA and BA-CA for each account that sweeps tothe Merrill Lynch Bank Deposit (“MLBD”) Program,Merrill Lynch Direct Deposit Program, RASP orRASP II. Merrill Lynch receives a fee from the ISAbanks of up to 2% per annum of the average dailybalances. This compensation is subject to changefrom time to time and Merrill Lynch may waive allor part of it.Merrill Lynch financial advisors are compensatedbased on their clients’ total deposits held in theMerrill Lynch Affiliated Banks (excludes RASPand RASP II).Interest rates and yieldsInterest rates for the MLBD Program, Merrill LynchDirect Deposit Program, RASP, RASP II and theInternational Bank Variable Rate Deposit Facility: re determined by the Merrill Lynch AffiliatedABanks in their sole discretion. Are variable and may change at any time afterthe account is opened, without notice or limit.Fees may reduce earnings. May be higher or lower than the interest ratesand Annual Percentage Yield (“APY”) availableto other depositors of the Merrill LynchAffiliated Banks for comparable accounts orthe rates of return payable on comparablearrangements offered to Merrill Lynch clients.For certain account types with the MLBD Programor RASP, interest rates are tiered based upon yourrelationship with Merrill Lynch, as described in“Linking accounts.” Clients with higher total eligibleassets may receive a higher yield on their bank deposits.Clients should compare the terms, interest rates,APY, rates of return, required minimum amounts,charges and other features with other accounts andalternative investments before deciding to maintainbalances in deposit accounts through the MLBDProgram, RASP, Merrill Lynch Direct DepositContinued on page 43
Understanding your cash sweep optionsProgram RASP II or the International Bank VariableRate Deposit Facility.Yield information on any deposits held at theMerrill Lynch Affiliated Banks is included onyour Merrill Lynch account statement. You canalso obtain current interest rate information onMyMerrill.com (see the “Deposit Account &Money Fund Rates” link at the bottom of each page)or by contacting your financial advisor or a MerrillEdge representative.Linking accountsYou may be able to “link” your accounts togetherfor statement delivery purposes and to establishhigher levels of eligible assets and a potentially higherinterest-rate tier for the MLBD Program and RASP.For regulatory or other reasons, certain types ofaccounts that can be linked for statement deliverypurposes cannot be linked for the purposeof determining your total eligible assets.Interest-rate tiering does not apply to deposits inthe Merrill Lynch Direct Deposit Program, RASP IIor the International Bank Variable Rate DepositFacility. MLBD Program and RASP deposits fromaccounts enrolled in certain discretionary InvestmentAdvisory Programs receive the Merrill Lynch BankDeposit Program Tier 4 rate.2If you have any questions about linking youraccounts or linking eligibility, please contact yourfinancial advisor or Merrill Edge representative.Additional information on cash sweep optionsYour Merrill Lynch financial advisor or a MerrillEdge representative is available to discuss yourcash sweep options as the yields on respective cashsweep options may change, depending on marketconditions, at different times throughout the year.Please refer to the MLBD Program, RASP, RASP II,Merrill Lynch Direct Deposit Program or theInternational Bank Variable Rate Deposit Facilitydisclosures in your account agreement for additionaland more detailed information concerning sweepdeposits with the Merrill Lynch Affiliated Banks. Foradditional information on ISA, refer to your ISA FactSheet or contact your financial advisor or MerrillEdge representative.The charts below and on the following pagedisplay cash sweep options that may be availableto you, depending on your account type and othereligibility criteria. If you have any questions, pleasecontact your financial advisor or a Merrill Edgerepresentative.1I SA is a series of electronically linked money market deposit accounts(“MMDAs”) into which funds are deposited on your behalf by Merrill Lynch.The MMDAs are held at one or more depository institutions, whose depositsare insured by the FDIC, including depository institutions affiliated withMerrill Lynch and its parent, Bank of America Corporation. The ISA programis not appropriate for clients who anticipate effecting frequent third-partypayments or transfers, including payments or transfers by check or through theFunds Transfer Service. ISA has a minimum opening deposit of 1,000.2P lease refer to the Recent Yields on bank deposits table for the Tier 4 rate(as of 9/4/2014).Recent yields on bank depositsBank deposits available through Merrill Lynch accounts*MLBD Program – Tier 1 ( 250,000)MLBD Program – Tier 2 ( 250,000 to 1M)MLBD Program – Tier 3 ( 1M to 10M)MLBD Program – Tier 4 ( 10M)MLBD Program – Tier 5†ISARASP – Tier 1 ( 250,000)RASP – Tier 2 ( 250,000 to 1M)RASP – Tier 3 ( 1M to 10M)RASP – Tier 4 ( 10M)Merrill Lynch Direct Deposit ProgramRASP IIInternational Bank Variable Rate Deposit FacilityAPY as of 03%0.05%0.01%0.01%0.02%* Please note: Availability is based on account type and may depend on other eligibility criteria.†Offered during previous promotions; currently new enrollments are not being accepted.Important informationThe availability of the bank deposits included in the Recent yields on bank deposits table is based on account type and may depend on other eligibilitycriteria. Yields shown are indicative of recent yields as of the date shown and are subject to change and availability.The Recent yields on bank deposits table does not constitute a recommendation or solicitation by Merrill Lynch for the purchase or sale of any particular product.Continued on page 54
Understanding your cash sweep optionsBank depositsAnnual Percentage Yield (“APY”) of a bank deposit account is a rate based on daily compounding of interest, and assumes interest is not withdrawn from thedeposit account and there is no change to the interest rate for one year. Note that the interest rate (and APY) may change at any time at the depository bank’sdiscretion, after the deposit account is opened. The depository bank uses the daily balance method to calculate interest on your deposit account, whichapplies a daily periodic rate to the principal in your deposit account each day. Fees may reduce earnings.Recent yields on money market mutual fundsMoney market mutual funds*TaxableBIF Money FundBIF Treasury FundBIF Government Securities FundReady Assets U.S.A. Government Money FundReady Assets U.S. Treasury Money FundReady Assets Prime Money FundRetirement Reserves Money Fund Class I (closed to new investors)Retirement Reserves Money Fund Class IIBofA Cash Reserves Fund – Investor ClassBofA Cash Reserves Fund – Investor II ClassBofA Treasury Reserves Fund – Investor ClassBofA Treasury Reserves Fund – Investor II ClassBofA Government Reserves Fund – Investor ClassBofA Government Reserves Fund – Investor II ClassBofA Government Plus Reserves Fund – Investor ClassBofA Government Plus Reserves Fund – Investor II ClassDollar Asset Portfolio (DAP)†Tax-exemptBIF Tax-Exempt FundBIF California Municipal Money FundBIF Connecticut Municipal Money FundBIF Massachusetts Municipal Money FundBIF Michigan Municipal Money FundBIF New Jersey Municipal Money FundBIF New York Municipal Money FundBIF Ohio Municipal Money FundBIF Pennsylvania Municipal Money FundBofA Tax-Exempt Reserves Fund – Investor ClassBofA California Tax-Exempt Reserves Fund – Investor ClassBofA Connecticut Municipal Reserves Fund – Investor ClassBofA Massachusetts Municipal Reserves Fund – Investor ClassBofA New York Tax-Exempt Reserves Fund – Investor ClassTaxableequivalent yield@39.6% tax rateas of 9/4/2014Seven-day yieldas of .00%0.00%0.00%0.00%0.00%0.00%0.00%* Please note: Availability is based on account type and may depend on other eligibility criteria. This option is only available to non-residents/non-U.S. citizens. Please see page 2 for related information. DAP may or may not have tax consequencesdepending on your country of tax residence and individual tax status. If you have any questio
BIF Tax-Exempt Fund . The Fund is a money market fund seeking current income consistent with the preservation of capital and liquidity by investing in a diversified portfolio of United States dollar denominated short-term money market instruments of high quality issuers. There can be n
