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Risk Management Roles and Responsibilities

Roles of Wells Fargo

Wells Fargo offers its swaps and other derivative products, services, and transactions solely as principal, and not as an agent, broker, advisor, or fiduciary for its customers. Any agency, brokerage, advisory, or fiduciary service that Wells Fargo (or any of its affiliates) may otherwise provide to its customers or to their affiliates does not include swaps and other derivative products, services, and transactions unless otherwise expressly agreed in writing signed by Wells Fargo (or the relevant Wells Fargo affiliate).
Unless otherwise expressly agreed, swaps are offered by Wells Fargo Bank, N.A., a swap dealer registered with the Commodity Futures Trading Commission ("CFTC") and member of the National Futures Association ("NFA"), and certain derivatives clearing services are offered by Wells Fargo Securities, LLC, a CFTC-registered futures commission merchant and NFA member. See
Wells Fargo Bank, N.A. is not acting as a municipal advisor and the information presented herein is not intended to be, and does not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Responsibilities of the customer

For any swaps and other derivative products, services, and transactions, Wells Fargo would be acting at arm’s-length as a party to the contract or as a U.S. registered futures commission merchant carrying a cleared swap or other position in a customer’s account, and not as a financial advisor. Therefore, customers are responsible for making their own evaluations of these products, services, and transactions and the risks involved based upon the advice of their own financial, legal, tax, accounting, and other professional advisors. Before entering into swaps or other derivatives, customers should consider whether they are appropriate for them in light of their individual objectives, experience, and other circumstances. While customers can use swaps and other derivatives as an effective hedging tool to reduce or eliminate certain risks associated with an asset or liability, this presumes holding these hedges to maturity and not disposing of the asset or liability during the term of the hedge. Whether they use them for hedging or another purpose, customers should be satisfied that they sufficiently understand the risks, including the risk of loss in the event of early termination of the swap and the risk associated with an early repayment or other disposition of the underlying asset or liability prior to the swap's maturity.