Exhibit (1)(xv)

                               PURCHASE AGREEMENT

The Charles Schwab Family of Funds, a Massachusetts business trust (the
"Trust"), and Charles Schwab & Co., Inc., a California corporation ("Schwab"),
hereby agree as follows:

      1.    The Trust hereby offers and Schwab hereby purchases 1 unit each of
beneficial interest of the Institutional Shares and Select Shares(R) of the
series of shares known as the Schwab Municipal Money Fund (such units of
beneficial interest being hereafter collectively known as the "Shares") at a
price of $ 1.00 each per Share. Schwab hereby acknowledges purchase of the
Shares and the Trust hereby acknowledges receipt from Schwab of funds in the
amount of $2 in full payment for the Shares. It is further agreed that no
certificates for the Shares will be issued by the Trust.

      2.    Schwab represents and warrants to the Trust that the Shares are
being acquired for investment purposes and not with a view of the distribution
thereof.

      3.    The names "The Charles Schwab Family of Funds" and "Trustees of The
Charles Schwab Family of Funds" refer, respectively, to the Trust created and
the Trustees as Trustees but not individually or personally, acting from time to
time under an Agreement and Declaration of Trust dated as of October 20, 1989,
as amended and restated on May 9, 1995, to which reference is hereby made and a
copy of which is on file at the Office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to any and
all amendments thereto so filed or hereafter filed. The obligations of "The
Charles Schwab Family of Funds" entered into in the name or on behalf thereof by
any of the Trustees, representatives or agents are not made individually, but
only in such capacities, and are not binding upon any of the Trustees,
Shareholders or representatives of the Trust personally, but bind only the
assets of the Trust, and all persons dealing with any series of shares of the
Trust must look solely to the assets of the Trust belonging to such series for
the enforcement of any claims against the Trust.

      IN WITNESS WHEREOF, the parties hereto have executed the Agreement as of
      the 29th day of May, 2003.

Attest:                                   THE CHARLES SCHWAB FAMILY OF FUNDS

/s/ Benjamin Douglas                      By:  /s/ Stephen B. Ward
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                                                   Stephen B. Ward,
                                                   Senior Vice President
                                                   and Chief Investment Officer

Attest:                                   CHARLES SCHWAB & CO., INC.

/s/ Benjamin Douglas                      By:  /s/ Randall W. Merk
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                                                   Randall W. Merk,
                                                   Executive Vice President