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 D S

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<   1R  '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 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW<RXQJVWRZQ 1R n3HWHU&(FRQRPXV'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG 1RYHPEHU

  ,QUH&6&,QGXVWULHV,QFHWDO 1R 

%HIRUH s21(65<$1DQG&/$<&LUFXLWsXGJHV 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.HQQHWKs&RRSHUsDPHVs.HLJKWOH\:LOOOLDP * %H\HU 3(16,21 %(1(),7 *8$5$17< &25325$7,212)),&(2)7+(*(1(5$/&2816(/ :DVKLQJWRQ'&IRU$SSHOODQW0DUF%0HUNOLQ&ODLU( 'LFNLQVRQ sRVHSK ) +XWFKLQVRQ sU %5286( 0F'2:(//$NURQ2KLRIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5<$1 &LUFXLW sXGJH  :H PXVW GHFLGH LQ WKLV DSSHDO ZKHWKHUWKHORZHUFRXUWVHUUHGLQXVLQJDmSUXGHQWLQYHVWRU UDWHl 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 mWD[l SULRULW\ XQGHU  86& †  D  FXUUHQWO\† D  :HKROGWKDWWKHmSUXGHQWLQYHVWRU UDWHlLVDQDSSURSULDWHYDOXDWLRQWRROIRUDFODLPLQYROYLQJ XQIXQGHGEHQHILWOLDELOLWLHVLQWKHEDQNUXSWF\FRQWH[W:H DOVR KROG WKDW D FODLP IRU PLVVHG PLQLPXP IXQGLQJ FRQWULEXWLRQVLVQRWHQWLWOHGWRDVHFWLRQ D  mWD[lVWDWXV ZKHQ D OLHQ KDV QRW EHHQ LPSRVHG XQGHU  86& † Q  GXHWRWKHRSHUDWLRQRIWKHDXWRPDWLFVWD\ 86& †  D   WULJJHUHG E\ D &KDSWHU  ILOLQJ LQ EDQNUXSWF\FRXUW:HPXVWWKHUHIRUHDIILUP 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 SDUWLFLSDQWVj HPSOR\PHQWIRUWKDW\HDUSOXVDQ\SDVWVHUYLFHREOLJDWLRQV DQG  LQVXUHWKH'%33VZLWKWKH3HQVLRQ%HQHILW*XDUDQW\ &RUSRUDWLRQ 3%*&  D SULYDWH JRYHUQPHQWDO LQVXUDQFH FRUSRUDWLRQFUHDWHGXQGHU(5,6$6HH 86&†† ,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 WKHSODQDQGWKHSUHVHQWYDOXHRIWKHSODQjVDVVHWV6HH 86&† D   7KHSUHVHQWFDVHDURVHDIWHUWKH&RSSHUZHOG6WHHO&RPSDQ\ EHJDQPLVVLQJLWVPLQLPXPIXQGLQJFRQWULEXWLRQVIRUWKUHHRI LWV '%33V LQ s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jV FODLP  %RWK SDUWLHV PRYHG IRU VXPPDU\ MXGJPHQW RQ ERWK LVVXHV  7KH EDQNUXSWF\ FRXUW JUDQWHG VXPPDU\MXGJPHQWLQIDYRURI%HOIDQFHRQPRVWEXWQRWDOO RIWKHLVVXHVLQWKHFDVH  ,QUH&6&,QGXVWULHV,QFHWDO 1R  1R  ,QUH&6&,QGXVWULHV,QFHWDO

,QRUGHUIRUDOORI&RSSHUZHOGjVGHEWWREHGHDOWZLWKXQGHU LQWHUUHODWLRQVKLSEHWZHHQ(5,6$DQGWKH%DQNUXSWF\&RGHLQ D&KDSWHUUHRUJDQL]DWLRQSODQLWZDVQHFHVVDU\WRUHGXFH WKLVFDVH7KHSODLQODQJXDJHRIVHFWLRQ Q  & UHTXLUHV DOORILWVOLDELOLWLHVWRSUHVHQWYDOXH7KH3%*&DUJXHGWKDW RQO\ WKH DPRXQW WR ZKLFK D mOLHQ LV LPSRVHG    >WR@ EH WKHSUHVHQWYDOXHRILWVXQIXQGHGEHQHILWOLDELOLW\FODLPZDV WUHDWHG DV WD[HVl  (PSKDVLV DGGHG   $FFRUGLQJ WR IDFWV   XVLQJDQLQYHVWPHQWUHWXUQUDWHRIIRU VWLSXODWHG E\ WKH SDUWLHV WKH OLHQ LPSRVHG E\ VHFWLRQ WKHILUVW\HDUVDQGWKHUHDIWHU7KHEDQNUXSWF\FRXUW  Q  ZRXOGKDYHDULVHQGD\VIROORZLQJsDQXDU\ KHOG WKDW WKH LQYHVWPHQW UHWXUQ UDWHV WKH 3%*& XVHG LQ   WKH GDWH XSRQ ZKLFK PLVVHG PLQLPXP IXQGLQJ GHWHUPLQLQJ WKH SUHVHQW YDOXH RI WKH XQIXQGHG EHQHILW FRQWULEXWLRQVH[FHHGHGPLOOLRQ +RZHYHU&RSSHUZHOG OLDELOLWLHVZRXOGJLYHWKH3%*&DmZLQGIDOOlDQGHOHFWHGWR KDG DOUHDG\ ILOHG IRU &KDSWHU  UHRUJDQL]DWLRQ RQ DSSO\ D mSUXGHQW LQYHVWRU UDWHl WKDW ZKLFK D UHDVRQDEO\ 1RYHPEHU    WULJJHULQJ DQ DXWRPDWLF VWD\ ZKLFK SUXGHQWLQYHVWRUZRXOGUHFHLYHIURPLQYHVWLQJWKHIXQGV7KH SUHYHQWHG mDQ\ DFW WR FUHDWH SHUIHFW RU HQIRUFH DQ\ OLHQ SDUWLHVVWLSXODWHGDmSUXGHQWLQYHVWRUUDWHlZRXOGEHD DJDLQVWSURSHUW\RIWKHHVWDWHl86&† D   UHWXUQUHVXOWLQJLQDFODLPLQWKHDPRXQWRI  :H KROG WKDW EHFDXVH D OLHQ ZDV QHYHU LPSRVHG RQ WKH 7KH EDQNUXSWF\ FRXUW DOVR KHOG WKDW WKH SRUWLRQ RI WKH PLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQVSXUVXDQWWR86& PLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQVDWWULEXWDEOHWRQRUPDO † Q  WKH3%*&jVFODLPFDQQRWEHWUHDWHGDVDWD[DQG FRVWV ZDV HQWLWOHG WR DQ mDGPLQLVWUDWLYHl SULRULW\ XQGHU  WKHUHIRUHGRHVQRWZDUUDQWDSULRULW\VWDWXVXQGHU86& 86& †  E  $  SXUVXDQW WR WKLV FRXUWjV GHFLVLRQ LQ † D   3HQVLRQ %HQHILW *XDUDQW\ &RUS Y 6XQDUKDXVHUPDQ ,QF  )G  WK &LU     7KH SDUWLHV VWLSXODWHG WKDW 9  RI WKH PLVVHG PLQLPXP IXQGLQJ FRQWULEXWLRQV FRXOGEHDWWULEXWHGWRQRUPDOFRVWV )RUWKHIRUHJRLQJUHDVRQVWKHGLVWULFWFRXUWRUGHUDIILUPLQJ WKHEDQNUXSWF\FRXUWLV$)),50(' 7KH 3%*& DSSHDOHG WKH EDQNUXSWF\ FRXUWjV RUGHU WR WKH IHGHUDO GLVWULFW FRXUW  7KH GLVWULFW FRXUW DIILUPHG WKH EDQNUXSWF\FRXUWjVMXGJPHQWDQGFRQFOXGHGWKDWQRSRUWLRQRI WKHPLVVHGPLQLPXPIXQGLQJFRQWULEXWLRQFODLPZDVHQWLWOHG WRSULRULW\DVDmWD[lXQGHUWKH%DQNUXSWF\&RGH7KHDSSHDO WRWKLVFRXUWIROORZHG ,, ,Q DQ DSSHDO IURP D EDQNUXSWF\ FRXUW ZH UHYLHZ WKH EDQNUXSWF\ FRXUWjV ILQGLQJV RI IDFW IRU FOHDU HUURU DQG WKH GLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGHQRYR6HH,QUH+LJKODQG 6XSHUVWRUHV,QF)G WK&LU  ,QWKLV FDVHDOOLVVXHVRIIDFWZHUHVWLSXODWHGE\WKHSDUWLHVVRRQO\ OHJDOFRQFOXVLRQVDUHXQGHUUHYLHZ  ,QUH&6&,QGXVWULHV,QFHWDO 1R  1R  ,QUH&6&,QGXVWULHV,QFHWDO 

,9 ,,, :HQH[WDGGUHVVWKH3%*&jVFRQWHQWLRQWKDWWKHPLVVHG :H FRQVLGHU LQLWLDOO\ ZKHWKHU WKH FRXUWV EHORZ HUUHG LQ PLQLPXPIXQGLQJFRQWULEXWLRQVLQH[FHVVRIPLOOLRQDUH GHWHUPLQLQJ WKDW WKH mSUXGHQW LQYHVWRU UDWHl ZDV WKH HQWLWOHG WR D mWD[l SULRULW\ XQGHU  86& †  D  DSSURSULDWHYDOXDWLRQWRROIRUFDOFXODWLQJWKHSUHVHQWYDOXHRI FXUUHQWYHUVLRQDW86&† D  GXHWRDVWDWXWRU\ WKHFODLPIRUXQIXQGHGEHQHILWOLDELOLWLHV:HFRQFOXGHWKDW OLHQLPSRVHGSXUVXDQWWR86&† Q  WKH\GLGQRW 6HFWLRQ Q  % SURYLGHVWKDWWKHUHVKDOOEHDOLHQLQ 8QGHU86&† E WKHEDQNUXSWF\FRXUWPXVWXSRQ IDYRURIWKHSODQZKHQWKHWRWDODPRXQWXQSDLGDQGRYHUGXH REMHFWLRQWRDFODLPmGHWHUPLQHWKHDPRXQWRIVXFKFODLPLQ H[FHHGVPLOOLRQ)XUWKHUPRUH86&† Q  DV ODZIXOFXUUHQF\RIWKH8QLWHG6WDWHVDVRIWKHGDWHRIWKHILOLQJ LWH[LVWHGLQ VWDWHVLQSHUWLQHQWSDUW  RIWKHSHWLWLRQl7KHUHIRUHWKHEDQNUXSWF\FRXUWPXVWYDOXH SUHVHQW FODLPV DQG UHGXFH FODLPV IRU IXWXUH SD\PHQW WR % 3HULRGRIOLHQ SUHVHQWYDOXHZKLOHDOVRNHHSLQJLQPLQGWKDWDIXQGDPHQWDO 7KH OLHQ LPSRVHG    VKDOO DULVH RQ WKH WK GD\ REMHFWLYHRIWKH%DQNUXSWF\&RGHLVWRWUHDWVLPLODUO\VLWXDWHG IROORZLQJWKHGXHGDWHIRUWKHUHTXLUHGLQVWDOOPHQW FUHGLWRUVHTXDOO\6HH86&† D  ,QRUGHUIRU WKH 3%*&jV FODLP WR UHFHLYH SUHIHUHQWLDO WUHDWPHQW LQ D & &HUWDLQUXOHVWRDSSO\ EDQNUXSWF\SURFHHGLQJWKHUHPXVWEHDFOHDUDXWKRUL]DWLRQIRU $Q\DPRXQWZLWKUHVSHFWWRZKLFKDOLHQLVLPSRVHG VXFKWUHDWPHQWIURP&RQJUHVV6HH,QUH:KLWH0RWRU&RUS VKDOOEHWUHDWHGDVWD[HVGXHDQGRZLQJWKH8QLWHG6WDWHV )G WK&LU    7KH3%*&jVFODLPDULVHVXQGHU 86&† E  $  86&† Q   HPSKDVLVDGGHG  ZKLFKSURYLGHVLQSHUWLQHQWSDUW m>/@LDELOLW\WRWKH>3%*&@ VKDOOEHWKHWRWDODPRXQWRIWKHXQIXQGHGEHQHILWOLDELOLWLHV 7KHGLVWULFWFRXUWWKRXJKWLWZDVQHFHVVDU\WRH[DPLQHWKH DV RI WKH WHUPLQDWLRQ GDWH  WR DOO SDUWLFLSDQWV DQG LQWHUSOD\ EHWZHHQ WKH (5,6$ DQG %DQNUXSWF\ &RGH EHQHILFLDULHVXQGHUWKHSODQl7KHDPRXQWRIWKHXQIXQGHG SURYLVLRQVLQYROYHGLQRUGHUWRGHWHUPLQHZKHWKHU&RQJUHVV EHQHILWOLDELOLWLHVLVGHILQHGDV  LQWHQGHG WKH mWD[l LQ VHFWLRQ  Q   WR EH JLYHQ WD[ WUHDWPHQWLQWKHEDQNUXSWF\FRQWH[W7KHFRXUWILUVWORRNHG WKHH[FHVV LIDQ\ RIn IRUDQmH[SOLFLWFRQQHFWLRQlEHWZHHQVHFWLRQ Q LQ(5,6$ DQGWKH%DQNUXSWF\&RGH)LQGLQJQRmFRQQHFWRUlEHWZHHQ $ WKHYDOXHRIWKHEHQHILWOLDELOLWLHVXQGHUWKHSODQ WKH VWDWXWHV WKH FRXUW WKHQ SHUIRUPHG D mIXQFWLRQDO GHWHUPLQHG DV RI VXFK GDWH RQ WKH EDVLV RI H[DPLQDWLRQlWRGHWHUPLQHWKHQDWXUHRIWKHmWD[lLQVHFWLRQ DVVXPSWLRQVSUHVFULEHGE\WKH>3%*&@IRUSXUSRVHVRI  Q DQGFRQFOXGHGWKDWWKHPLVVHGIXQGLQJFRQWULEXWLRQV VHFWLRQRIWKLVWLWOH RYHU ZHUHQRWHQWLWOHGWRSULRULW\DVDmWD[lXQGHUVHFWLRQ D  LQWKH%DQNUXSWF\&RGHEHFDXVHWKHWUXHQDWXUHRIWKHWD[DW % WKHFXUUHQWYDOXH DVRIVXFKGDWH RIWKHDVVHWV LVVXHZDVQRWWRIXQGDIXQFWLRQRIWKH8QLWHG6WDWHV RIWKHSODQ

:HDJUHHZLWKWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDWWKHFODLP  86&† D   ZDVQRWHQWLWOHGWRDmWD[lSULRULW\LQWKHEDQNUXSWF\FRQWH[W EXW GR QRW WKLQN LW ZDV QHFHVVDU\ WR H[DPLQH WKH  ,QUH&6&,QGXVWULHV,QFHWDO 1R  1R  ,QUH&6&,QGXVWULHV,QFHWDO 

7KH3%*&DUJXHVWKDWVHFWLRQ D  FRQVWLWXWHVDQ YLRODWHGKHUHLI3%*&jVLQWHUSUHWDWLRQRI† D  H[SOLFLWGHOHJDWLRQRIUXOHPDNLQJDXWKRULW\WKDWDOORZVLWWR ZHUHDGRSWHGEHFDXVH3%*&jVGLVFRXQWUDWHZRXOGDSSO\ SUHVFULEHWKHDVVXPSWLRQVXVHGWRYDOXHDWHUPLQDWHGSHQVLRQ RQO\WRLWDQGQRWDQ\RWKHUJHQHUDOXQVHFXUHGFUHGLWRU SODQjVXQIXQGHGEHQHILWOLDELOLWLHV7KH3%*&IXUWKHUDUJXHV &RQJUHVV KDV PDGH FOHDU ZKHQ (5,6$ FRQIOLFWV ZLWK WKDW WKH YDOXDWLRQ DVVXPSWLRQV LQ LWV UHJXODWLRQV DUH DQRWKHU SURYLVLRQ RI IHGHUDO ODZ (5,6$ PXVW EH UHDVRQDEOHEHFDXVHWKH\DUHFDOFXODWHGWRUHSOLFDWHWKHPDUNHW VXERUGLQDWHG 86&† G  SULFHRIDQQXLWLHVVROGE\SULYDWHLQVXUDQFHFRPSDQLHVDQG ZKHQHPSOR\HUVWHUPLQDWHIXOO\IXQGHG'%33VYROXQWDULO\ ,G WKH\DUHUHTXLUHGWRSXUFKDVHDQQXLWLHVWRFRYHUWKHOLIHWLPH EHQHILWV RI SODQ EHQHILFLDULHV  6HH   &)5 ††  :HDUHQRWHQWLUHO\SHUVXDGHGWKDWWKHGLVWULFWDQG&) ,   UHFRGLILHGDW &)5†   FRXUWVZHUHFRUUHFWLQFRQFOXGLQJWKDW 86&† G  ZKLFK SURYLGHV WKDW m>Q@RWKLQJ LQ WKLV VXEFKDSWHU VKDOO EH %HOIDQFHDUJXHVWKDWWKHUHJXODWLRQVWKH3%*&LVUHO\LQJRQ FRQVWUXHG WR DOWHU DPHQG PRGLI\ LQYDOLGDWH LPSDLU RU XVH H[FHSWLRQDOO\ ORZ LQWHUHVW UDWHV LQ RUGHU WR GLVFRXUDJH VXSHUVHGH DQ\ ODZ RI WKH 8QLWHG 6WDWHVl UHTXLUHV WKDW WKH HPSOR\HUV IURP YROXQWDULO\ WHUPLQDWLQJ YLDEOH '%33V (5,6$SURYLVLRQ 86&† D  EHVXERUGLQDWHG WKHUHIRUHWKHUHJXODWLRQVDUHLQDSSOLFDEOHZLWKLQDEDQNUXSWF\ WRWKH%DQNUXSWF\&RGH6HFWLRQ G RQLWVIDFHDSSOLHV FRQWH[W ZKHQ WKH HPSOR\HU LV LQ ILQDQFLDO GLVWUHVV RQO\ WR VXEFKDSWHU , RI (5,6$ ZKHUHDV WKH GHILQLWLRQ RI )XUWKHUPRUHEHFDXVHWKH(5,6$SURYLVLRQDWLVVXH 86& XQIXQGHGEHQHILWOLDELOLWLHVVHFWLRQ D  LVIRXQGLQ † D  FRQIOLFWVZLWKWKH%DQNUXSWF\&RGHjVPDQGDWH VXEFKDSWHU,,,RI(5,6$ WKDW VDPHFODVV FUHGLWRUV EH WUHDWHG HTXDOO\  86& † D  WKH(5,6$SURYLVLRQPXVWEHVXERUGLQDWHG +RZHYHUZHEHOLHYHWKDWWKHEDQNUXSWF\FRXUWjVDXWKRULW\ XQGHU86&†† E DQG D  WRGHWHUPLQHWKH 7KLV VDPH LVVXH ZDV UHFHQWO\ FRQVLGHUHG E\ WKH 7HQWK DPRXQW RI FODLPV LQ EDQNUXSWF\ SURFHHGLQJV DQG WUHDW &LUFXLW LQ 3HQVLRQ %HQHILW *XDUDQW\ &RUS Y &) , FUHGLWRUVLQWKHVDPHFODVVHTXDOO\JLYHVLWWKHDXWKRULW\WR )DEULFDWRUVRI8WDK,QF)G  WK&LU   YDOXH XQIXQGHG EHQHILW OLDELOLWLHV FODLPV XVLQJ D mSUXGHQW FHUW GHQLHG   6 &W     7KH &) , FRXUW LQYHVWRUUDWHl,Q5DOHLJKY,OOLQRLV'HSDUWPHQWRI5HYHQXH FRQFOXGHGWKDWQRWKLQJLQ(5,6$SUHYHQWVWKHYDOXDWLRQRIDQ 6&W     WKH6XSUHPH&RXUWUHFHQWO\ XQIXQGHGEHQHILWOLDELOLW\FODLPXVLQJWKHmSUXGHQWLQYHVWRU UHLWHUDWHGWKHSULQFLSOHWKDWWKHYDOLGLW\RIDFODLPLVJRYHUQHG UDWHl6HHLGDW7RUHDFKWKLVFRQFOXVLRQWKH&) , E\QRQEDQNUXSWF\ODZ:KLOHWKHYDOLGLW\RIDFODLPPLJKWEH FRXUWVWDWHG  DPDWWHUIRUQRQEDQNUXSWF\ODZEDQNUXSWF\FRXUWVKDYHWKH VWDWXWRU\DXWKRULW\WRGHWHUPLQHWKHDOORZDELOLW\DQGDPRXQW  86&† D  FRQIOLFWVZLWKSURYLVLRQVRIWKH RIWKHFODLP %DQNUXSWF\ &RGH DQG DV WKH GLVWULFW FRXUW KHOG WKLV FRQIOLFW PXVW EH FRQWUROOHG E\ WKH %DQNUXSWF\ &RGH 7KH3%*&j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† D  7KDWSULQFLSOHZRXOGEH mSUXGHQW LQYHVWRU UDWHl WR YDOXH WKH 3%*&jV FODLP ZDV DSSURSULDWH