00a0393p.06

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
)LOH 1DPH DS
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
,QUH&6& ,1'8675,(6 ,1&
&233(5:(/' 67((/
&203$1<
'HEWRUV
BBBBBBBBBBBBBBBBBBBBBBBB
3(16,21 %(1(),7 *8$5$17<
&25325$7,21
$SSHOODQW
Y
.$7+5<1 $ %(/)$1&(
7UXVWHHWKH&RSSHUZHOG6WHHO
&RPSDQ\/LTXLGDWLRQ7UXVW
$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW<RXQJVWRZQ
1R²3HWHU&(FRQRPXV'LVWULFW-XGJH
$UJXHG6HSWHPEHU
'HFLGHGDQG)LOHG1RYHPEHU

-- 1 of 6 --

,QUH&6&,QGXVWULHV,QFHWDO 1R
%HIRUH-21(65<$1DQG&/$<&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' ,VUDHO *ROGRZLW] 3(16,21 %(1(),7
*8$5$17< &25325$7,21 2)),&( 2) 7+(
*(1(5$/ &2816(/ :DVKLQJWRQ '& IRU $SSHOODQW
0DUF%0HUNOLQ%5286( 0F'2:(//$NURQ2KLR
IRU $SSHOOHH 21 %5,() ,VUDHO *ROGRZLW] 6XVDQ (
%LUHQEDXP.HQQHWK-&RRSHU-DPHV-.HLJKWOH\:LOOOLDP
* %H\HU 3(16,21 %(1(),7 *8$5$17<
&25325$7,212)),&(2)7+(*(1(5$/&2816(/
:DVKLQJWRQ'&IRU$SSHOODQW0DUF%0HUNOLQ&ODLU(
'LFNLQVRQ -RVHSK ) +XWFKLQVRQ -U %5286(
0F'2:(//$NURQ2KLRIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
5<$1 &LUFXLW -XGJH :H PXVW GHFLGH LQ WKLV DSSHDO
ZKHWKHUWKHORZHUFRXUWVHUUHGLQXVLQJD³SUXGHQWLQYHVWRU
UDWH´ WR FDOFXODWH D FODLP LQ D EDQNUXSWF\ SURFHHGLQJ
LQYROYLQJ XQIXQGHG EHQHILW OLDELOLWLHV IRU D GHILQHG EHQHILW
SHQVLRQSODQ '%33 XQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH
6HFXULW\ $FW RI (5,6$ :H PXVW DOVR GHWHUPLQH
ZKHWKHUDFODLPIRUPLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQV
LV HQWLWOHG WR D ³WD[´ SULRULW\ XQGHU 86& † D
FXUUHQWO\† D :HKROGWKDWWKH³SUXGHQWLQYHVWRU
UDWH´LVDQDSSURSULDWHYDOXDWLRQWRROIRUDFODLPLQYROYLQJ
XQIXQGHGEHQHILWOLDELOLWLHVLQWKHEDQNUXSWF\FRQWH[W:H
DOVR KROG WKDW D FODLP IRU PLVVHG PLQLPXP IXQGLQJ
FRQWULEXWLRQVLVQRWHQWLWOHGWRDVHFWLRQ D ³WD[´VWDWXV
ZKHQ D OLHQ KDV QRW EHHQ LPSRVHG XQGHU 86&
† Q GXHWRWKHRSHUDWLRQRIWKHDXWRPDWLFVWD\
86& † D WULJJHUHG E\ D &KDSWHU ILOLQJ LQ
EDQNUXSWF\FRXUW:HPXVWWKHUHIRUHDIILUP

-- 2 of 6 --

1R ,QUH&6&,QGXVWULHV,QFHWDO
,
8QGHU (5,6$ HPSOR\HUV DUH UHTXLUHG WR SUHIXQG
'%33VE\PDNLQJDQDQQXDOPLQLPXPIXQGLQJFRQWULEXWLRQ
ZKLFK LV WKH FDOFXODWHG SUHVHQW YDOXH RI SUHGLFWHG IXWXUH
SHQVLRQ REOLJDWLRQV LQFXUUHG GXH WR WKH SDUWLFLSDQWV¶
HPSOR\PHQWIRUWKDW\HDUSOXVDQ\SDVWVHUYLFHREOLJDWLRQV
DQG LQVXUHWKH'%33VZLWKWKH3HQVLRQ%HQHILW*XDUDQW\
&RUSRUDWLRQ 3%*& D SULYDWH JRYHUQPHQWDO LQVXUDQFH
FRUSRUDWLRQFUHDWHGXQGHU(5,6$6HH86&††
,ID'%33LVWHUPLQDWHGWKH3%*&LVUHTXLUHGWRSD\
EHQHILWVWREHQHILFLDULHVRIWKH'%33VDVWKH\EHFRPHGXH
HYHQLIWKHDVVHWVRIWKHWHUPLQDWHGSODQDUHLQVXIILFLHQWWR
FRYHU VXFK SD\PHQWV 7KH 3%*& KDV D FODLP DJDLQVW WKH
HPSOR\HUIRUDQ\XQIXQGHGEHQHILWOLDELOLWLHVLWLVIRUFHGWR
SD\$QXQIXQGHGEHQHILWOLDELOLW\LVGHILQHGDVWKHGLIIHUHQFH
EHWZHHQWKHSUHVHQWYDOXHRIWKHSUHGLFWHGIXWXUHOLDELOLWLHVRI
WKHSODQDQGWKHSUHVHQWYDOXHRIWKHSODQ¶VDVVHWV6HH
86&† D
7KHSUHVHQWFDVHDURVHDIWHUWKH&RSSHUZHOG6WHHO&RPSDQ\
EHJDQPLVVLQJLWVPLQLPXPIXQGLQJFRQWULEXWLRQVIRUWKUHHRI
LWV '%33V LQ -XO\ &RSSHUZHOG ILOHG D &KDSWHU
SHWLWLRQLQEDQNUXSWF\FRXUWRQ1RYHPEHULQRUGHU
WRUHRUJDQL]HXQGHUWKH%DQNUXSWF\&RGH7KH3%*&ILOHGDQ
DFWLRQLQIHGHUDOGLVWULFWFRXUWVHHNLQJLQYROXQWDU\WHUPLQDWLRQ
RIWKHWKUHH'%33VEXWWKHSDUWLHVVHWWOHGWKHDFWLRQDQGWKH
'%33VZHUHYROXQWDULO\WHUPLQDWHGDQGWKH3%*&EHFDPH
WKH WUXVWHH RI WKH '%33V $W WKH WLPH WKH '%33V ZHUH
WHUPLQDWHG WKH PLVVHG PLQLPXP IXQGLQJ FRQWULEXWLRQV
WRWDOHG
.DWKU\Q $ %HOIDQFH WKH &KDSWHU WUXVWHH IRU
&RSSHUZHOGLQLWLDWHGDQDFWLRQLQEDQNUXSWF\FRXUWEHFDXVH
RIWKHGLVDJUHHPHQWRYHUERWKWKHDPRXQWDQGWKHSULRULW\RI
WKH 3%*&¶V FODLP %RWK SDUWLHV PRYHG IRU VXPPDU\
MXGJPHQW RQ ERWK LVVXHV 7KH EDQNUXSWF\ FRXUW JUDQWHG
VXPPDU\MXGJPHQWLQIDYRURI%HOIDQFHRQPRVWEXWQRWDOO
RIWKHLVVXHVLQWKHFDVH

-- 3 of 6 --

,QUH&6&,QGXVWULHV,QFHWDO 1R
,QRUGHUIRUDOORI&RSSHUZHOG¶VGHEWWREHGHDOWZLWKXQGHU
D&KDSWHUUHRUJDQL]DWLRQSODQLWZDVQHFHVVDU\WRUHGXFH
DOORILWVOLDELOLWLHVWRSUHVHQWYDOXH7KH3%*&DUJXHGWKDW
WKHSUHVHQWYDOXHRILWVXQIXQGHGEHQHILWOLDELOLW\FODLPZDV
XVLQJDQLQYHVWPHQWUHWXUQUDWHRIIRU
WKHILUVW\HDUVDQGWKHUHDIWHU7KHEDQNUXSWF\FRXUW
KHOG WKDW WKH LQYHVWPHQW UHWXUQ UDWHV WKH 3%*& XVHG LQ
GHWHUPLQLQJ WKH SUHVHQW YDOXH RI WKH XQIXQGHG EHQHILW
OLDELOLWLHVZRXOGJLYHWKH3%*&D³ZLQGIDOO´DQGHOHFWHGWR
DSSO\ D ³SUXGHQW LQYHVWRU UDWH´ WKDW ZKLFK D UHDVRQDEO\
SUXGHQWLQYHVWRUZRXOGUHFHLYHIURPLQYHVWLQJWKHIXQGV7KH
SDUWLHVVWLSXODWHGD³SUXGHQWLQYHVWRUUDWH´ZRXOGEHD
UHWXUQUHVXOWLQJLQDFODLPLQWKHDPRXQWRI
7KH EDQNUXSWF\ FRXUW DOVR KHOG WKDW WKH SRUWLRQ RI WKH
PLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQVDWWULEXWDEOHWRQRUPDO
FRVWV ZDV HQWLWOHG WR DQ ³DGPLQLVWUDWLYH´ SULRULW\ XQGHU
86&† E $ SXUVXDQWWRWKLVFRXUW¶VGHFLVLRQLQ
3HQVLRQ %HQHILW *XDUDQW\ &RUS Y 6XQDUKDXVHUPDQ ,QF
)G WK &LU 7KH SDUWLHV VWLSXODWHG WKDW
RI WKH PLVVHG PLQLPXP IXQGLQJ FRQWULEXWLRQV
FRXOGEHDWWULEXWHGWRQRUPDOFRVWV
7KH3%*&DSSHDOHGWKHEDQNUXSWF\FRXUW¶V RUGHUWRWKH
IHGHUDO GLVWULFW FRXUW 7KH GLVWULFW FRXUW DIILUPHG WKH
EDQNUXSWF\FRXUW¶VMXGJPHQWDQGFRQFOXGHGWKDWQRSRUWLRQRI
WKHPLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQFODLPZDVHQWLWOHG
WRSULRULW\DVD³WD[´XQGHUWKH%DQNUXSWF\&RGH7KHDSSHDO
WRWKLVFRXUWIROORZHG
,,
,Q DQ DSSHDO IURP D EDQNUXSWF\ FRXUW ZH UHYLHZ WKH
EDQNUXSWF\ FRXUW¶V ILQGLQJV RI IDFW IRU FOHDU HUURU DQG WKH
GLVWULFWFRXUW¶VOHJDOFRQFOXVLRQVGHQRYR6HH,QUH+LJKODQG
6XSHUVWRUHV,QF)G WK&LU ,QWKLV
FDVHDOOLVVXHVRIIDFWZHUHVWLSXODWHGE\WKHSDUWLHVVRRQO\
OHJDOFRQFOXVLRQVDUHXQGHUUHYLHZ
1R ,QUH&6&,QGXVWULHV,QFHWDO
LQWHUUHODWLRQVKLSEHWZHHQ(5,6$DQGWKH%DQNUXSWF\&RGHLQ
WKLVFDVH7KHSODLQODQJXDJHRIVHFWLRQ Q & UHTXLUHV
RQO\ WKH DPRXQW WR ZKLFK D ³OLHQ LV LPSRVHG >WR@ EH
WUHDWHG DV WD[HV´ (PSKDVLV DGGHG $FFRUGLQJ WR IDFWV
VWLSXODWHG E\ WKH SDUWLHV WKH OLHQ LPSRVHG E\ VHFWLRQ
Q ZRXOGKDYHDULVHQGD\VIROORZLQJ-DQXDU\
WKH GDWH XSRQ ZKLFK PLVVHG PLQLPXP IXQGLQJ
FRQWULEXWLRQVH[FHHGHGPLOOLRQ +RZHYHU&RSSHUZHOG
KDG DOUHDG\ ILOHG IRU &KDSWHU UHRUJDQL]DWLRQ RQ
1RYHPEHU WULJJHULQJ DQ DXWRPDWLF VWD\ ZKLFK
SUHYHQWHG ³DQ\ DFW WR FUHDWH SHUIHFW RU HQIRUFH DQ\ OLHQ
DJDLQVWSURSHUW\RIWKHHVWDWH´86&† D
:H KROG WKDW EHFDXVH D OLHQ ZDV QHYHU LPSRVHG RQ WKH
PLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQVSXUVXDQWWR86&
† Q WKH3%*&¶VFODLPFDQQRWEHWUHDWHGDVDWD[DQG
WKHUHIRUHGRHVQRWZDUUDQWDSULRULW\VWDWXVXQGHU86&
† D
9
)RUWKHIRUHJRLQJUHDVRQVWKHGLVWULFWFRXUWRUGHUDIILUPLQJ
WKHEDQNUXSWF\FRXUWLV$)),50('

-- 4 of 6 --

,QUH&6&,QGXVWULHV,QFHWDO 1R
,9
:HQH[WDGGUHVVWKH3%*&¶VFRQWHQWLRQWKDWWKHPLVVHG
PLQLPXPIXQGLQJFRQWULEXWLRQVLQH[FHVVRIPLOOLRQDUH
HQWLWOHG WR D ³WD[´ SULRULW\ XQGHU 86& † D
FXUUHQWYHUVLRQDW86&† D GXHWRDVWDWXWRU\
OLHQLPSRVHGSXUVXDQWWR86&† Q
6HFWLRQ Q % SURYLGHVWKDWWKHUHVKDOOEHDOLHQLQ
IDYRURIWKHSODQZKHQWKHWRWDODPRXQWXQSDLGDQGRYHUGXH
H[FHHGVPLOOLRQ)XUWKHUPRUH86&† Q DV
LWH[LVWHGLQVWDWHVLQSHUWLQHQWSDUW
% 3HULRGRIOLHQ
7KH OLHQ LPSRVHG VKDOO DULVH RQ WKH WK GD\
IROORZLQJWKHGXHGDWHIRUWKHUHTXLUHGLQVWDOOPHQW
& &HUWDLQUXOHVWRDSSO\
$Q\DPRXQWZLWKUHVSHFWWRZKLFKDOLHQLVLPSRVHG
VKDOOEHWUHDWHGDVWD[HVGXHDQGRZLQJWKH8QLWHG6WDWHV

86&† Q HPSKDVLVDGGHG
7KHGLVWULFWFRXUWWKRXJKWLWZDVQHFHVVDU\WRH[DPLQHWKH
LQWHUSOD\ EHWZHHQ WKH (5,6$ DQG %DQNUXSWF\ &RGH
SURYLVLRQVLQYROYHGLQRUGHUWRGHWHUPLQHZKHWKHU&RQJUHVV
LQWHQGHG WKH ³WD[´ LQ VHFWLRQ Q WR EH JLYHQ WD[
WUHDWPHQWLQWKHEDQNUXSWF\FRQWH[W7KHFRXUWILUVWORRNHG
IRUDQ³H[SOLFLWFRQQHFWLRQ´EHWZHHQVHFWLRQ Q LQ(5,6$
DQGWKH%DQNUXSWF\&RGH)LQGLQJQR³FRQQHFWRU´EHWZHHQ
WKH VWDWXWHV WKH FRXUW WKHQ SHUIRUPHG D ³IXQFWLRQDO
H[DPLQDWLRQ´WRGHWHUPLQHWKHQDWXUHRIWKH³WD[´LQVHFWLRQ
Q DQGFRQFOXGHGWKDWWKHPLVVHGIXQGLQJFRQWULEXWLRQV
ZHUHQRWHQWLWOHGWRSULRULW\DVD³WD[´XQGHUVHFWLRQ D
LQWKH%DQNUXSWF\&RGHEHFDXVHWKHWUXHQDWXUHRIWKHWD[DW
LVVXHZDVQRWWRIXQGDIXQFWLRQRIWKH8QLWHG6WDWHV
:HDJUHHZLWKWKHGLVWULFWFRXUW¶VFRQFOXVLRQWKDWWKHFODLP
ZDVQRWHQWLWOHGWRD³WD[´SULRULW\LQWKHEDQNUXSWF\FRQWH[W
EXW GR QRW WKLQN LW ZDV QHFHVVDU\ WR H[DPLQH WKH
1R ,QUH&6&,QGXVWULHV,QFHWDO
,,,
:H FRQVLGHU LQLWLDOO\ ZKHWKHU WKH FRXUWV EHORZ HUUHG LQ
GHWHUPLQLQJ WKDW WKH ³SUXGHQW LQYHVWRU UDWH´ ZDV WKH
DSSURSULDWHYDOXDWLRQWRROIRUFDOFXODWLQJWKHSUHVHQWYDOXHRI
WKHFODLPIRUXQIXQGHGEHQHILWOLDELOLWLHV:HFRQFOXGHWKDW
WKH\GLGQRW
8QGHU86&† E WKHEDQNUXSWF\FRXUWPXVWXSRQ
REMHFWLRQWRDFODLP³GHWHUPLQHWKHDPRXQWRIVXFKFODLPLQ
ODZIXOFXUUHQF\RIWKH8QLWHG6WDWHVDVRIWKHGDWHRIWKHILOLQJ
RIWKHSHWLWLRQ´7KHUHIRUHWKHEDQNUXSWF\FRXUWPXVWYDOXH
SUHVHQW FODLPV DQG UHGXFH FODLPV IRU IXWXUH SD\PHQW WR
SUHVHQWYDOXHZKLOHDOVRNHHSLQJLQPLQGWKDWDIXQGDPHQWDO
REMHFWLYHRIWKH%DQNUXSWF\&RGHLVWRWUHDWVLPLODUO\VLWXDWHG
FUHGLWRUVHTXDOO\6HH86&† D ,QRUGHUIRU
WKH 3%*&¶V FODLP WR UHFHLYH SUHIHUHQWLDO WUHDWPHQW LQ D
EDQNUXSWF\SURFHHGLQJWKHUHPXVWEHDFOHDUDXWKRUL]DWLRQIRU
VXFKWUHDWPHQWIURP&RQJUHVV6HH,QUH:KLWH0RWRU&RUS
)G WK&LU
7KH3%*&¶VFODLPDULVHVXQGHU86&† E $
ZKLFKSURYLGHVLQSHUWLQHQWSDUW³>/@LDELOLW\WRWKH>3%*&@
VKDOOEHWKHWRWDODPRXQWRIWKHXQIXQGHGEHQHILWOLDELOLWLHV
DV RI WKH WHUPLQDWLRQ GDWH WR DOO SDUWLFLSDQWV DQG
EHQHILFLDULHVXQGHUWKHSODQ´7KHDPRXQWRIWKHXQIXQGHG
EHQHILWOLDELOLWLHVLVGHILQHGDV
WKHH[FHVV LIDQ\ RI²
$ WKHYDOXHRIWKHEHQHILWOLDELOLWLHVXQGHUWKHSODQ
GHWHUPLQHG DV RI VXFK GDWH RQ WKH EDVLV RI
DVVXPSWLRQVSUHVFULEHGE\WKH>3%*&@IRUSXUSRVHVRI
VHFWLRQRIWKLVWLWOH RYHU
% WKHFXUUHQWYDOXH DVRIVXFKGDWH RIWKHDVVHWV
RIWKHSODQ
86&† D

-- 5 of 6 --

,QUH&6&,QGXVWULHV,QFHWDO 1R
7KH3%*&DUJXHVWKDWVHFWLRQ D FRQVWLWXWHVDQ
H[SOLFLWGHOHJDWLRQRIUXOHPDNLQJDXWKRULW\WKDWDOORZVLWWR
SUHVFULEHWKHDVVXPSWLRQVXVHGWRYDOXHDWHUPLQDWHGSHQVLRQ
SODQ¶VXQIXQGHGEHQHILWOLDELOLWLHV7KH3%*&IXUWKHUDUJXHV
WKDW WKH YDOXDWLRQ DVVXPSWLRQV LQ LWV UHJXODWLRQV DUH
UHDVRQDEOHEHFDXVHWKH\DUHFDOFXODWHGWRUHSOLFDWHWKHPDUNHW
SULFHRIDQQXLWLHVVROGE\SULYDWHLQVXUDQFHFRPSDQLHVDQG
ZKHQHPSOR\HUVWHUPLQDWHIXOO\IXQGHG'%33VYROXQWDULO\
WKH\DUHUHTXLUHGWRSXUFKDVHDQQXLWLHVWRFRYHUWKHOLIHWLPH
EHQHILWV RI SODQ EHQHILFLDULHV 6HH &)5 ††
UHFRGLILHGDW&)5†
%HOIDQFHDUJXHVWKDWWKHUHJXODWLRQVWKH3%*&LVUHO\LQJRQ
XVH H[FHSWLRQDOO\ ORZ LQWHUHVW UDWHV LQ RUGHU WR GLVFRXUDJH
HPSOR\HUV IURP YROXQWDULO\ WHUPLQDWLQJ YLDEOH '%33V
WKHUHIRUHWKHUHJXODWLRQVDUHLQDSSOLFDEOHZLWKLQDEDQNUXSWF\
FRQWH[W ZKHQ WKH HPSOR\HU LV LQ ILQDQFLDO GLVWUHVV
)XUWKHUPRUHEHFDXVHWKH(5,6$SURYLVLRQDWLVVXH86&
† D FRQIOLFWVZLWKWKH%DQNUXSWF\&RGH¶VPDQGDWH
WKDW VDPHFODVV FUHGLWRUV EH WUHDWHG HTXDOO\ 86&
† D WKH(5,6$SURYLVLRQPXVWEHVXERUGLQDWHG
7KLV VDPH LVVXH ZDV UHFHQWO\ FRQVLGHUHG E\ WKH 7HQWK
&LUFXLW LQ 3HQVLRQ %HQHILW *XDUDQW\ &RUS Y &) ,
)DEULFDWRUVRI8WDK,QF)G WK&LU
FHUW GHQLHG 6 &W 7KH &) , FRXUW
FRQFOXGHGWKDWQRWKLQJLQ(5,6$SUHYHQWVWKHYDOXDWLRQRIDQ
XQIXQGHGEHQHILWOLDELOLW\FODLPXVLQJWKH³SUXGHQWLQYHVWRU
UDWH´6HHLGDW7RUHDFKWKLVFRQFOXVLRQWKH&) ,
FRXUWVWDWHG
86&† D FRQIOLFWVZLWKSURYLVLRQVRIWKH
%DQNUXSWF\ &RGH DQG DV WKH GLVWULFW FRXUW KHOG WKLV
FRQIOLFW PXVW EH FRQWUROOHG E\ WKH %DQNUXSWF\ &RGH
,QGHHGWKHYHU\DFWLRQLQZKLFKWKHFODLPDULVHVLVDIWHU
DOO EDQNUXSWF\ &RQJUHVV KDV SURYLGHG YHU\ SUHFLVH
FRQWRXUVRIKRZFODLPVWKDWDUHDGPLQLVWHUHGLQ&KDSWHU
DUHWREHGHFLGHGDQGKDVSURQRXQFHGDVDFDUGLQDO
UXOHWKDWDOOFODLPVZLWKLQWKHVDPHFODVVPXVWEHWUHDWHG
DOLNH86&† D 7KDWSULQFLSOHZRXOGEH
1R ,QUH&6&,QGXVWULHV,QFHWDO
YLRODWHGKHUHLI3%*&¶VLQWHUSUHWDWLRQRI† D
ZHUHDGRSWHGEHFDXVH3%*&¶VGLVFRXQWUDWHZRXOGDSSO\
RQO\WRLWDQGQRWDQ\RWKHUJHQHUDOXQVHFXUHGFUHGLWRU
&RQJUHVV KDV PDGH FOHDU ZKHQ (5,6$ FRQIOLFWV ZLWK
DQRWKHU SURYLVLRQ RI IHGHUDO ODZ (5,6$ PXVW EH
VXERUGLQDWHG86&† G
,G
:HDUHQRWHQWLUHO\SHUVXDGHGWKDWWKHGLVWULFWDQG&) ,
FRXUWVZHUHFRUUHFWLQFRQFOXGLQJWKDW86&† G
ZKLFK SURYLGHV WKDW ³>Q@RWKLQJ LQ WKLV VXEFKDSWHU VKDOO EH
FRQVWUXHG WR DOWHU DPHQG PRGLI\ LQYDOLGDWH LPSDLU RU
VXSHUVHGH DQ\ ODZ RI WKH 8QLWHG 6WDWHV´ UHTXLUHV WKDW WKH
(5,6$SURYLVLRQ86&† D EHVXERUGLQDWHG
WRWKH%DQNUXSWF\&RGH6HFWLRQ G RQLWVIDFHDSSOLHV
RQO\ WR VXEFKDSWHU , RI (5,6$ ZKHUHDV WKH GHILQLWLRQ RI
XQIXQGHGEHQHILWOLDELOLWLHVVHFWLRQ D LVIRXQGLQ
VXEFKDSWHU,,,RI(5,6$
+RZHYHUZHEHOLHYHWKDWWKHEDQNUXSWF\FRXUW¶VDXWKRULW\
XQGHU86&†† E DQG D WRGHWHUPLQHWKH
DPRXQW RI FODLPV LQ EDQNUXSWF\ SURFHHGLQJV DQG WUHDW
FUHGLWRUVLQWKHVDPHFODVVHTXDOO\JLYHVLWWKHDXWKRULW\WR
YDOXH XQIXQGHG EHQHILW OLDELOLWLHV FODLPV XVLQJ D ³SUXGHQW
LQYHVWRUUDWH´,Q5DOHLJKY,OOLQRLV'HSDUWPHQWRI5HYHQXH
6&W WKH6XSUHPH&RXUWUHFHQWO\
UHLWHUDWHGWKHSULQFLSOHWKDWWKHYDOLGLW\RIDFODLPLVJRYHUQHG
E\QRQEDQNUXSWF\ODZ:KLOHWKHYDOLGLW\RIDFODLPPLJKWEH
DPDWWHUIRUQRQEDQNUXSWF\ODZEDQNUXSWF\FRXUWVKDYHWKH
VWDWXWRU\DXWKRULW\WRGHWHUPLQHWKHDOORZDELOLW\DQGDPRXQW
RIWKHFODLP
7KH3%*&¶VDXWKRULW\WRSURPXOJDWHUHJXODWLRQVJRYHUQLQJ
WKHYDOXDWLRQRIXQIXQGHGEHQHILWOLDELOLWLHVGRHVQRWH[WHQG
VRIDUDVWRVXERUGLQDWHWKHDXWKRULW\RIWKHEDQNUXSWF\FRXUWV
WRYDOXHFODLPVLQEDQNUXSWF\SURFHHGLQJV,QWKLVFDVHWKH
3%*&VKRXOGEHWUHDWHGOLNHDQ\RWKHUXQVHFXUHGFUHGLWRULQ
WKH EDQNUXSWF\ UHRUJDQL]DWLRQ WKHUHIRUH WKH XVH RI WKH
³SUXGHQW LQYHVWRU UDWH´ WR YDOXH WKH 3%*&¶V FODLP ZDV
DSSURSULDWH

-- 6 of 6 --