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 *(5$/' '$/( %8516 ; DQG/,1'$ s$1( %8516  'HEWRUV   1RV BBBBBBBBBBBBBBBBBBBBB   !  $1'5(: : 68+$5  3ODLQWLII$SSHOOHH   Y    *(5$/' '$/( %8516DQG  /,1'$ s$1( %8516  'HIHQGDQWV   ,0& 0257*$*( &203$1<  'HIHQGDQW$SSHOODQW    1 $SSHDOIURPWKH%DQNUXSWF\$SSHOODWH3DQHO RIWKH6L[WK&LUFXLW 1R n:LOOLDP7%RGRK%DQNUXSWF\sXGJH $UJXHG 1RYHPEHU 'HFLGHGDQG)LOHG 0DUFK

  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

%HIRUH .(,7+.(11('<DQG0225(&LUFXLW HLWKHU KDYH ILOHG D QRWLFH RI DSSHDO ZLWKLQ  GD\V ZKLFK s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sXGJH  'HIHQGDQW PRWLRQ  6HH LG DW   ,Q UH 0DUNRZLW] PDNHV FOHDU ,0&0RUWJDJH&RPSDQ\ m,0&l DSSHDOVIURPGHFLVLRQVRI KRZHYHUWKDWLIWKHDSSHOODQWZLVKHVWRDSSHDOWKHMXGJPHQW WKH%DQNUXSWF\$SSHOODWH3DQHOUHMHFWLQJ,0&jVDWWHPSWWR RQWKHPRWLRQWRUHFRQVLGHUWKHDSSHOODQWPXVWILOHDQHZ RU REWDLQDUHFRYHU\OLHQRQFHUWDLQSURSHUW\ &DVH1R SUHVXPDEO\DPHQGHG QRWLFHRIDSSHDO6HHLG DQG UHIXVLQJ WR DVVHUW MXULVGLFWLRQ RYHU DQ DSSHDO IURP WKH EDQNUXSWF\FRXUWEHFDXVHLWZDVQRWWLPHO\ILOHG &DVH1R %HFDXVH,0&GLGQRWILOHLWVPRWLRQWRDPHQGWKHQRWLFHRI    7KH 'HEWRUVj PRUWJDJH KDG EHHQ DYRLGHG DQG DSSHDOZLWKLQWKHWHQGD\SHULRGRI5XOHRUZLWKLQWKH ,0&WKHDVVLJQHHPRUWJDJHFRPSDQ\DVVHUWHGDVDGHIHQVH VXEVHTXHQWWZHQW\GD\ SHULRGGXULQJZKLFKVXFKDPRWLRQ WKDW LW ZDV HQWLWOHG WR D OLHQ RQ WKH SURSHUW\ XQGHU WZR FRXOGKDYHEHHQJUDQWHGXSRQDVKRZLQJRIH[FXVDEOHQHJOHFW SURYLVLRQV RI WKH %DQNUXSWF\ &RGH WKDW SHUPLW FHUWDLQ ZHDIILUPWKHGHFLVLRQGLVPLVVLQJWKHDSSHDOLQ&DVH1R FUHGLWRUV WR REWDLQ OLHQV RQ SURSHUW\ WKDW D GHEWRU KDV  UHFRYHUHG)LUVW,0&VRXJKWDOLHQXQGHU86&† H  ,9&21&/86,21 DQGDIWHUWKDWUHTXHVWZDVGHQLHGLWVRXJKWWKURXJKDPRWLRQ IRU UHFRQVLGHUDWLRQ D OLHQ XQGHU D GLIIHUHQW SURYLVLRQ %HFDXVH,0&ZDVQRWHQWLWOHGWRDOLHQXQGHU†DQGGLG †  E   7KH EDQNUXSWF\ FRXUW GHQLHG WKH PRWLRQ IRU QRWDSSHDOWKHEDQNUXSWF\FRXUWjVPRWLRQWRUHFRQVLGHUZLWKLQ UHFRQVLGHUDWLRQ DV ZHOO  7KH %DQNUXSWF\ $SSHOODWH 3DQHO 5XOHjVVWULFWWLPHUHTXLUHPHQWVZH$)),50LQERWK m%$3l DIILUPHGWKHWULDOFRXUWjVUXOLQJRQWKHGHQLDORID FDVHV OLHQXQGHU† H DQGZLWKUHVSHFWWRWKH† E GHIHQVH FRQFOXGHGWKDW,0&KDGQRWDPHQGHGLWVQRWLFHRIDSSHDOWR DGGUHVVWKHGHQLDORIWKHPRWLRQIRUUHFRQVLGHUDWLRQZLWKLQWKH WLPHOLPLWVRIWKH%DQNUXSWF\5XOHV$FFRUGLQJO\WKH%$3 GHFOLQHGWRH[HUFLVHMXULVGLFWLRQRYHUWKDWFODLP  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

WLPHIRUILOLQJDQRWLFHRIDSSHDOKDVH[SLUHGH[FHSWWKDW %HFDXVH,0&ZDVQRWHQWLWOHGWRDVVHUWWKH†GHIHQVHV VXFK D PRWLRQ ILOHG QRW ODWHU WKDQ  GD\V DIWHU WKH DQGGLGQRWWLPHO\DSSHDOWKH† E GHFLVLRQWRWKH%$3 H[SLUDWLRQRIWKHWLPHIRUILOLQJDQRWLFHRIDSSHDOPD\EH ZH$)),50LQERWKFDVHV JUDQWHG XSRQ D VKRZLQJ RI H[FXVDEOH QHJOHFW  $Q H[WHQVLRQRIWLPHIRUILOLQJDQRWLFHRIDSSHDOPD\QRW ,%$&.*5281' H[FHHGGD\VIURPWKHH[SLUDWLRQRIWKHWLPHIRUILOLQJ DQRWLFHRIDSSHDORWKHUZLVHSUHVFULEHGE\WKLVUXOHRU 2Q0DUFK 'HEWRUV/LQGDsDQH%XUQVDQG*HUDOG GD\V IURP WKH GDWH RI HQWU\ RI WKH RUGHU JUDQWLQJ WKH 'DOH%XUQVH[HFXWHGDSURPLVVRU\QRWHSD\DEOHWR'HIHQGDQW PRWLRQZKLFKHYHULVODWHU $OWHUQDWLYH0RUWJDJH6RXUFH,QF m$06l LQWKHDPRXQWRI   DQG H[HFXWHG D PRUWJDJH GHHG JLYLQJ $06 D )HG5%DQNU37KLVUXOHFRQIRUPVWR)HGHUDO5XOH PRUWJDJH LQWHUHVW LQ WKHLU UHVLGHQFH  $06 LPPHGLDWHO\ RI$SSHOODWH3URFHGXUHVHHLG $GYLVRU\&RPPLWWHHjV DVVLJQHGLWVLQWHUHVWWR,0&0RUWJDJH&RPSDQ\ m,0&l ,Q 1RWH DQG LW LV VLPLODUO\ LQWHUSUHWHG DV D MXULVGLFWLRQDO 6HSWHPEHURIWKDW\HDUWKH'HEWRUVILOHGIRUEDQNUXSWF\DQG UHTXLUHPHQWVHH$QGHUVRQY0RXUDGLFN ,QUH0RXUDGLFN  RQ sDQXDU\    WKH 7UXVWHH ILOHG WKLV DGYHUVDU\ )G WK&LU   SURFHHGLQJ LQ WKH 8QLWHG 6WDWHV %DQNUXSWF\ &RXUW IRU WKH 1RUWKHUQ'LVWULFWRI2KLR 5XOHDSSOLHVHTXDOO\WRDPHQGHGQRWLFHVRIDSSHDODV ZHOODVQRWLFHVRIDSSHDO/LNH$SSHOODWH5XOHWKHWH[WRI $FFRUGLQJ WR WKH FRPSODLQW WKH 7UXVWHH VRXJKW D ZKLFKUHIHUVRQO\WRQRWLFHVRIDSSHDOEXWZKLFKZHKDYHKHOG GHFODUDWLRQWKDWSXUVXDQWWR86&† D WKH7UXVWHHjV WRJRYHUQDPHQGHGQRWLFHVDVZHOO%DQNUXSWF\5XOHjV LQWHUHVWLQWKHSURSHUW\ZDVVXSHULRUWR$06jVLQWHUHVWLQWKH WLPHOLPLWIRUILOLQJQRWLFHVRIDSSHDOZRXOGKDYHOLWWOHHIIHFW SURSHUW\  7KH 7UXVWHH DOOHJHG WKDW WKH PRUWJDJH GHHG KDG LISDUWLHVFRXOGFLUFXPYHQWLWE\DPHQGLQJDQHDUOLHUQRWLFHWR EHHQVLJQHGE\RQO\RQHZLWQHVVDQGWKXVGLGQRWFRQIRUP DGGSDUWLHVRUFODLPVORQJDIWHUWKHSURSHUSHULRGKDGH[SLUHG ZLWK2KLRODZ7KHEDQNUXSWF\FRXUWFUHGLWHGWKH'HEWRUVj 6HHHJ)33(QWHUVY8QLWHG6WDWHV)G WHVWLPRQ\WKDWDOWKRXJKWKHGHHGLWVHOIZDVQRWDUL]HGDQGKDG WK&LU   UHIXVLQJWRSHUPLWDSSHOODQWWRDPHQGQRWLFH VLJQDWXUHV IURP WZR ZLWQHVVHV RQO\ RQH ZLWQHVV KDG EHHQ RIDSSHDOWRDGGDGGLWLRQDODSSHOODQWDIWHURUDODUJXPHQWKDG SUHVHQWDWWKHVLJQLQJDQGWKHFRXUWDFFRUGLQJO\FRQFOXGHG RFFXUUHG  WKDWWKHVHFRQGZLWQHVVVLJQDWXUHDQGWKHQRWDUL]DWLRQPXVW KDYH EHHQ DGGHG VXEVHTXHQWO\  7KH EDQNUXSWF\ FRXUW 8QGHU 5XOH  ,0&jV DWWHPSW WR DPHQG LWV QRWLFH RI FRQFOXGHG WKDW EHFDXVH WKH PRUWJDJH ZDV QRW H[HFXWHG LQ DSSHDOZDVQRWWLPHO\7KHPRWLRQIRUUHFRQVLGHUDWLRQZDV DFFRUGDQFH ZLWK 2KLR ODZ WKH 7UXVWHH FRXOG VHW DVLGH WKH GHQLHGRQsDQXDU\DQG5XOHUHTXLUHGWKDW,0& PRUWJDJH XQGHU  86& †  D   ZKLFK SHUPLWV D WUXVWHHWRDYRLGDQ\WUDQVIHUWKDWZRXOGEHYRLGDEOHE\DERQD ILGHSXUFKDVHUXQGHUVWDWHODZ  6HH 'RQOLQ Y :DWNLQV  )G   Q WK &LU   VHH ,0& WKHQ DVVHUWHG LWV GHIHQVH WKDW QRWZLWKVWDQGLQJ WKH DOVR 8QLWHG &RPSXWHU 6\V ,QF Y $7 7 &RUS   )G   WK DYRLGDQFH86&† H HQWLWOHG,0&WRDOLHQRQWKH &LU  KROGLQJ WKDW 5XOH  SUHYHQWHG DSSHOODWH FRXUW IURP DVVHUWLQJ SURSHUW\6HFWLRQSURYLGHVIRUWUXVWHHVWRUHFRYHUFHUWDLQ MXULVGLFWLRQ RYHU DSSHDO RI PRWLRQ WR UHFRQVLGHU ZKHQ LQLWLDO QRWLFH RI WUDQVIHUUHGSURSHUWLHVDQGIRUSURWHFWLRQWRFHUWDLQFUHGLWRUV DSSHDO ZDV QRW DPHQGHG WR UDLVH PRWLRQ IRU UHFRQVLGHUDWLRQ XQWLO DIWHU 5XOH jV WLPH OLPLWV KDG H[SLUHG &LW\ RI &KDQXWH .DQVDV Y :LOOLDPV IURPWKDWUHFRYHU\6SHFLILFDOO\† D DOORZVDWUXVWHH 1DWXUDO *DV &R  )G   WK &LU   DSSO\LQJ 5XOH ZKRDYRLGVDWUDQVIHUXQGHU† D  WRUHFRYHUWKHLQWHUHVW  WR DPHQGPHQW RI QRWLFH RI DSSHDO  WKDWZDVWUDQVIHUUHGDQG† H SURYLGHVWKDWJRRG IDLWK  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

WUDQVIHUHHV IURP ZKRP D WUXVWHH UHFRYHUV SURSHUW\ XQGHU &RQJUHVVPDGHDQGWKLVLVQRWRQHRIWKRVHmµUDUHFDVHV>LQ † D DUHHQWLWOHGWRDOLHQRQWKHUHFRYHUHGSURSHUW\WR ZKLFK@WKHOLWHUDODSSOLFDWLRQRIDVWDWXWHZLOOSURGXFHDUHVXOW RIIVHW WKH FRVW RI DQ\ LPSURYHPHQW LQFOXGLQJ SD\PHQW RI GHPRQVWUDEO\ DW RGGV ZLWK WKH LQWHQWLRQV RI LWV GUDIWHUVjl GHEW WKDWWKHWUDQVIHUHHPDGHIROORZLQJWKHWUDQVIHU,0& 8QLWHG6WDWHVY5RQ3DLU(QWHUV,QF 86 DUJXHG WKDW DV D JRRG IDLWK WUDQVIHUHH IURP $06  ZKR    TXRWLQJ*ULIILQY2FHDQLF&RQWUDFWRUV,QF86 LPSURYHGWKHSURSHUW\E\SD\LQJRIIGHEWLWZDVHQWLWOHGWRD      7KH 6XSUHPH &RXUW KDV PDGH FOHDU WKDW LQ OLHQLQWKHDPRXQWRI  EDQNUXSWF\FDVHVZHDUHWRDGKHUHFORVHO\WRWKHWH[WRIWKH VWDWXWHVHH7RLEEY5DGORII86   DQG 7KHEDQNUXSWF\FRXUWFRQFOXGHGWKDW,0&ZDVQRWHQWLWOHG WKH %DQNUXSWF\ &RGHjV WH[W DQG VWUXFWXUH VXSSRUW RXU WRDOLHQXQGHU† H 7KHVWDWXWRU\ODQJXDJHSURYLGHVIRU FRQFOXVLRQVWKDWUHFRYHU\GRHVQRWDXWRPDWLFDOO\IROORZIURP D OLHQ WR VHFXUH mWKH FRVW WR VXFK WUDQVIHUHHl RI DYRLGDQFHDQGWKDWZKHUHWKHUHLVQRUHFRYHU\XQGHU† D  LPSURYHPHQWVDQG,0&KDGQRWLQWURGXFHGDQ\HYLGHQFHWKDW WKHUHDUHQRSURWHFWLRQVXQGHU† H $FFRUGLQJO\EHFDXVH LWKDGDFWXDOO\LQFXUUHGWKHFRVWRIWKHLPSURYHPHQWV5DWKHU WKH7UXVWHHQHLWKHUVRXJKWQRUQHHGHGWRVHHNUHFRYHU\† WKH HYLGHQFH VXJJHVWHG WKDW WKH PRQH\ XVHG WR VDWLVI\ WKH LVQRWDWLVVXHLQWKLVFDVH,0&LVWKXVXQDEOHWRREWDLQWKH 'HEWRUVjSULRUPRUWJDJHVKDGFRPHIURP$06DQG,0&ZDV †  H  OLHQ DQG ZH DIILUP WKH GHFLVLRQ LQ &DVH 1R  QRWHQWLWOHGWRWDNHDGYDQWDJHRIWKHLPSURYHPHQWVPDGHE\  $067KHEDQNUXSWF\FRXUWjVRUGHUZDVLVVXHGRQsDQXDU\ DQG,0&ILOHGDQRWLFHRIDSSHDOIURPWKDWMXGJPHQWRQ ,,,&$6(12 7+(s$18$5<† E sDQXDU\ &$6( ,0&DOVRILOHGDPRWLRQIRUUHFRQVLGHUDWLRQDUJXLQJIRUWKH ,0& DOVR DSSHDOV WKH %$3jV FRQFOXVLRQ WKDW WKH SDQHO ILUVWWLPHWKDW† E JRYHUQVWKHUHFRYHU\DQGOLHQLVVXHV ODFNHGMXULVGLFWLRQWRFRQVLGHU,0&jVDSSHDOIURPWKHsDQXDU\ ,0&DUJXHGWKDWWKHEDQNUXSWF\FRXUWjVMXGJPHQWRQ† H RUGHUGHQ\LQJLWVPRWLRQIRUUHFRQVLGHUDWLRQ,QRUGHUIRU RYHUORRNHG WKH OHJLVODWLYH LQWHQW WKDW ZDV H[SUHVVHG LQ WKH%$3WRKDYHKDGMXULVGLFWLRQRYHU,0&jVDSSHDORIWKH † E %HFDXVH† E VWDWHVWKDWLPPHGLDWHJRRGIDLWK sDQXDU\  RUGHU RQ LWV PRWLRQ IRU UHFRQVLGHUDWLRQ ,0& WUDQVIHUHHV DUH HQWLWOHG WR WKH VDPH SURWHFWLRQV IURP D QHHGHG WR WLPHO\ DSSHDO WKDW RUGHU  7KH GHWHUPLQDWLRQ RI WUXVWHHjVUHFRYHU\DVWKRVHWUDQVIHUHHVVXFKDV$06ZKRWDNH ZKHWKHU,0&WLPHO\DSSHDOHGLVJRYHUQHGE\)HGHUDO5XOHRI IRUYDOXHLQJRRGIDLWKDQGZLWKRXWNQRZOHGJHRIYRLGDELOLW\ %DQNUXSWF\3URFHGXUHZKLFKLQUHOHYDQWSDUWUHDGVDV ,0&DUJXHGWKDW† H VKRXOGEHLQWHUSUHWHGVLPLODUO\VR IROORZV WKDW ,0& DV D JRRG IDLWK WUDQVIHUHH RI $06 ZRXOG EH HQWLWOHGWRWKHVDPHSURWHFWLRQVDV$06$QGVRWRWKHH[WHQW D 7HQGD\SHULRG7KHQRWLFHRIDSSHDOVKDOOEHILOHG WKDW$06KDGSURYLGHGWKH'HEWRUVWKHPRQH\WKH\XVHGWR ZLWKWKHFOHUNZLWKLQGD\VRIWKHGDWHRIWKHHQWU\RI VDWLVI\WKHLUSULRUPRUWJDJHV,0&DUJXHGWKDWWKHEDQNUXSWF\ WKHMXGJPHQWRUGHURUGHFUHHDSSHDOHGIURP FRXUW HUUHG LQ ILQGLQJ WKDW ,0& KDG QRW VDWLVILHG WKDW  UHTXLUHPHQWRI† H  F ([WHQVLRQRIWLPHIRUDSSHDO  7KHEDQNUXSWF\ MXGJHPD\H[WHQGWKHWLPHIRUILOLQJWKHQRWLFHRIDSSHDO 2QsDQXDU\WKHEDQNUXSWF\FRXUWGHQLHG,0&jV E\ DQ\ SDUW\ XQOHVV WKH MXGJPHQW RUGHU RU GHFUHH PRWLRQIRUUHFRQVLGHUDWLRQ7KHFRXUWZHQWEH\RQGLWVHDUOLHU DSSHDOHGIURP>LVXQGHUFHUWDLQVWDWXWHVQRWDWLVVXHKHUH@ GHFLVLRQ LQ ZKLFK LW KDG UXOHG WKDW ,0& GLG QRW PHHW WKH  $UHTXHVWWRH[WHQGWKHWLPHIRUILOLQJDQRWLFHRI UHTXLUHPHQWV RI †  H  DQG LW UXOHG WKDW †  KDG QR DSSHDOPXVWEHPDGHE\ZULWWHQPRWLRQILOHGEHIRUHWKH  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

LWVHOI DSSHDU LQ WKH FRGH VHH %ODFN  :KLWH &DWWOH &R Y DSSOLFDELOLW\WRWKHFDVHDWDOO6HFWLRQJRYHUQVRQO\FDVHV *UDQDGD&DWWOH6HUYV,QF ,QUH%ODFN :KLWH&DWWOH&R  LQZKLFKWKHWUXVWHHDWWHPSWVWRUHFRYHUSURSHUW\RUWKHYDOXH )G WK&LU   m>7@KHUHLVQRWKLQJLQ RISURSHUW\ WKHWUXVWHHLQWKHSUHVHQWFDVHKDGVRXJKWRQO\WR WKH VWDWXWH RU FDVH ODZ WR VXJJHVW WKDW &RQJUHVV PHDQW >WR GHFODUHWKDWKLVLQWHUHVWLQWKH'HEWRUVjUHVLGHQFHZDVVXSHULRU SURWHFW@ RQO\ WUDQVIHUHHV LQ SRVVHVVLRQl  DQG OHDYHV mD WRWKHLQWHUHVWRI$06DQG,0&$FFRUGLQJO\DQ\HIIRUWWR JDSLQJ KROH    LQ WKH WKHRU\ RI GHIHQVH WR DYRLGDQFH LPSRUW †  E  LQWR †  H  RU DVVHUW DQ\ RI WKH †  SRZHUVl 'DYLG *UD\ &DUOVRQ %DQNUXSWF\jV 2UJDQL]LQJ GHIHQVHVZDVLUUHOHYDQW 3ULQFLSOH  )OD 6W 8 / 5HY       WKH GLVWLQFWLRQ WKDW UHVXOWV IURP RXU LQWHUSUHWDWLRQ LV QRW DV $IWHU WKLV GHQLDO RI WKH PRWLRQ IRU UHFRQVLGHUDWLRQ RQ EDVHOHVVDVLWVSURSRQHQWVFRQWHQG)LUVWDOWKRXJKWKH,QUH sDQXDU\  ,0&jV QRWLFH RI DSSHDO IURP WKH sDQXDU\  %ODFN :KLWH&DWWOH&RFRXUWLVFRUUHFWWKDWWKHFRGHLWVHOI † H MXGJPHQWEHFDPHHIIHFWLYHDQGWKHWHQGD\WLPH GRHV QRW H[SOLFLWO\ UHIHU WR D SRVVHVVRU\QRQSRVVHVVRU\ SHULRGXQGHU)HG5%DQNU3 D LQZKLFK,0&ZRXOG GLVWLQFWLRQ WKH VWDWXWH GRHV FDUU\ LPSOLFLW VXJJHVWLRQV WKDW EH UHTXLUHG WR ILOH D QRWLFH RI DSSHDO IURP WKH GHQLDO RI &RQJUHVV IRUHVDZ WKLV FRQVHTXHQFH  $V RQH FRXUW LQ RXU PRWLRQ IRU UHFRQVLGHUDWLRQ UHJDUGLQJ WKH †  E  LVVXH FLUFXLWKDVVXJJHVWHGWKHYHU\QRWLRQ RI UHFRYHU\VXJJHVWV EHJDQWRUXQ,0&GLGQRWILOHVXFKDQRWLFHRIDSSHDOEXWRQ VXFK D SRVVHVVRU\QRQSRVVHVVRU\ GLVWLQFWLRQ  7KDW LV WKH 0DUFKLWILOHGDPRWLRQIRUOHDYHWRDPHQGLWVQRWLFHRI SUHVHQFH RI UHFRYHU\ XQGHU †  DQG SUHVHUYDWLRQ XQGHU DSSHDO IURP WKH sDQXDU\  †  H  UXOLQJ WR LQFOXGH WKH † sDQXDU\† E GHFLVLRQ7KHEDQNUXSWF\FRXUWJUDQWHG WKHPRWLRQWKHQH[WGD\DQGRQ0DUFK ,0&DPHQGHGLWV LVGHSHQGHQWRQZKHWKHUWKHLQWHUHVWWKHWUXVWHHDYRLGHG QRWLFHRIDSSHDOLQRUGHUWRDSSHDOIURPERWKWKHsDQXDU\ ZDV SRVVHVVRU\ RU QRQSRVVHVVRU\  ,Q SDUWLFXODU † H UXOLQJDQGWKHsDQXDU\† E UXOLQJ SUHVHUYDWLRQ XQGHU †  LV E\ LWV YHU\ QDWXUH RQO\ DSSOLFDEOHWRQRQSRVVHVVRU\LQWHUHVWVQDPHO\OLHQV 7KH%$3DIILUPHGWKHEDQNUXSWF\FRXUWRQWKHsDQXDU\ 2QWKHRWKHUKDQGWKHYHU\FRQFHSWRIµUHFRYHU\jLPSDUWV † H DSSHDODQGGLVPLVVHGWKHsDQXDU\† E DSSHDO WKHQRWLRQWKDWDSRVVHVVRU\LQWHUHVWLQSURSHUW\H[LVWV :LWKUHVSHFWWRWKHsDQXDU\† H DSSHDOWKH%$3UXOHG WKDW LV WKH SURSHUW\ WR EH UHFRYHUHG PXVW EH WDQJLEOH WKDW†ZDVLQDSSOLFDEOHWRWKHSUHVHQWFDVH7KH%$3 SURSHUW\  7KH UHDVRQ IRU WKLV LV VHOIHYLGHQW   ZKHQ D UXOHGWKDWZKHQWKH7UXVWHHKDGDYRLGHGWKHWUDQVIHUXQGHU QRQSRVVHVVRU\ LQWHUHVW LQ SURSHUW\ LV DYRLGHG WKHUH LV †  ,0&jV LQWHUHVW LQ WKH SURSHUW\ ZDV LPPHGLDWHO\ QRWKLQJOHIWWRUHFRYHU SUHVHUYHG DQG DXWRPDWLFDOO\ EHFDPH SDUW RI WKH HVWDWH SXUVXDQWWR† D  $FFRUGLQJO\WKH7UXVWHHQHYHUKDG 0RUJDQY/LEHUW\0RUWJDJH ,QUH0RUJDQ %5 WRUHVRUWWRWKHUHFRYHU\SURYLVLRQVRI†DQGWKXV,0&   %DQNU1'2KLR  FLWDWLRQRPLWWHG 6HFRQGWKH ZDVXQDEOHWRWDNHDGYDQWDJHRI†jVGHIHQVHVWKDWFUHDWH GLVWLQFWLRQGRHVIXUWKHURQHRIEDQNUXSWF\jVLPSRUWDQWJRDOV OLHQVIROORZLQJWKHUHFRYHU\RISURSHUW\7KHUHIRUHWKH%$3 $OWKRXJKRXULQWHUSUHWDWLRQIDYRUVSRVVHVVRU\WUDQVIHUHHVRYHU DIILUPHGWKHEDQNUXSWF\FRXUW:LWKUHVSHFWWRWKHsDQXDU\ QRQSRVVHVVRU\WUDQVIHUHHVLWDOVRIDYRUVWKHJHQHUDOFUHGLWRUV †  E  DSSHDO WKH %$3 UXOHG WKDW ,0& KDG QRW WLPHO\ RYHU WKH QRQSRVVHVVRU\ WUDQVIHUHH E\ QRW SHUPLWWLQJ WKH QRQSRVVHVVRU\WUDQVIHUHHD† H OLHQ  3XUVXDQW WR )HGHUDO 5XOH RI %DQNUXSWF\ 3URFHGXUH  E  D QRWLFH 5HJDUGOHVV RI ZKHWKHU WKH SRVVHVVRU\QRQSRVVHVVRU\ RI DSSHDO ILOHG DIWHU HQWU\ RI MXGJPHQW EXW SULRU WR WKH GLVSRVLWLRQ RI D GLVWLQFWLRQ LV RQH WKDW &RQJUHVV LQWHQGHG LW LV RQH WKDW WLPHO\ PRWLRQ IRU UHFRQVLGHUDWLRQ EHFRPHV HIIHFWLYH XSRQ WKH GLVSRVLWLRQ RI WKH PRWLRQ IRU UHFRQVLGHUDWLRQ  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

DSSHDOHG  7KH WHQGD\ SHULRG LQ ZKLFK ,0& VKRXOG KDYH VWDWXWRU\VFKHPHSURYLGHGWKDWLPPHGLDWHO\XSRQDYRLGDQFH DSSHDOHGWKHsDQXDU\MXGJPHQWH[SLUHGRQ)HEUXDU\DQG RI WKH WUDQVIHU ,0&jV LQWHUHVW LQ WKH 'HEWRUVj SURSHUW\ WKH WZHQW\GD\ SHULRG WKDW )HGHUDO 5XOH RI %DQNUXSWF\ UHWXUQHGWRWKHHVWDWHZLWKRXWQHHGIRUUHVRUWWRWKHUHFRYHU\ 3URFHGXUH F  DOORZVZRXOGEHDSSHOODQWVWRPRYHWR SURFHVV  )LUVW WKH WUDQVIHU ZDV DYRLGHG XQGHU †  D  H[WHQG WKH WLPH IRU ILOLQJ D QRWLFH RI DSSHDO H[SLUHG RQ 6HFRQG†SURYLGHVWKDWZKHQDWUDQVIHULVDYRLGHGXQGHU )HEUXDU\7KXVWKHGLVWULFWFRXUWODFNHGWKHDXWKRULW\WR †WKHWUDQVIHULVmSUHVHUYHGIRUWKHEHQHILWRIWKHHVWDWHl JUDQW DQ H[WHQVLRQ DQG WR SHUPLW WKH DPHQGHG QRWLFH RI 86&†6HFWLRQWKHQPDNHVH[SOLFLWWKDWDQ\ DSSHDO LQWHUHVW WKDW LV mSUHVHUYHG IRU WKH EHQHILW RI    WKH HVWDWH XQGHUVHFWLRQlLVSDUWRIWKHEDQNUXSWF\HVWDWH ,0& WLPHO\ DSSHDOHG IURP ERWK GHFLVLRQV DQG ZH KDYH 86&† D  7KXVLPPHGLDWHO\XSRQDYRLGDQFHRIWKH MXULVGLFWLRQRYHUWKHDSSHDOVSXUVXDQWWR86&†:H WUDQVIHU,0&jVPRUWJDJHLQWHUHVWZDVSUHVHUYHGDQGEHFDPH UHYLHZ WKH GHFLVLRQ RI WKH EDQNUXSWF\ FRXUW GLUHFWO\ SDUWRIWKHHVWDWH UHYLHZLQJ LWV IDFWXDO ILQGLQJV IRU FOHDU HUURU DQG LWV OHJDO FRQFOXVLRQVGHQRYR+DUNHUY7URXWPDQ ,QUH7URXWPDQ $VDWH[WXDODQGFRQFHSWXDOPDWWHUWKHUHDUHVWURQJUHDVRQV (QWHUSULVHV,QF )G  WK&LU  WR DIILUP WKH %$3jV FRQFOXVLRQ WKDW †  GLG QRW DSSO\ EHFDXVH WKH 7UXVWHH QHYHU VRXJKW UHFRYHU\  $V D WH[WXDO ,,&$6(12 7+(s$18$5<† H PDWWHU WKH VWDWXWH FOHDUO\ LQGLFDWHV WKDW DYRLGDQFH DQG &$6( UHFRYHU\DUHGLVWLQFWDQGWKHSHUPLVVLYHODQJXDJHRI† VXJJHVWV WKDW UHFRYHU\ LV DQ RSWLRQDO UHPHG\ WKDW LQ FDVHV 7KLVFDVHLQYROYHVWZRPDLQFRQFHSWVLQEDQNUXSWF\ODZ VXFK DV WKLV RQH QHHG QRW EH SXUVXHG  $V D FRQFHSWXDO 7KHILUVWFRQFHSWLVDYRLGDQFHWKURXJKZKLFKDWUXVWHHLVDEOH PDWWHUWKH%$3jVLQWHUSUHWDWLRQRIIHUVDFRKHUHQWH[SODQDWLRQ WR QXOOLI\ D PRUWJDJHLQWHUHVW WUDQVIHU WKDW LQ VRPH ZD\ RIDYRLGDQFHUHFRYHU\DQG,0&jVLQWHUHVW XSRQDYRLGDQFH GLPLQLVKHG WKH HVWDWH  ,W LV XQFRQWURYHUWHG KHUH WKDW WKH ,0&jVLQWHUHVWZDVSUHVHUYHGE\†DQGUHWXUQHGWRWKH 7UXVWHH DYRLGHG,0&jVPRUWJDJHLQWKH'HEWRUVjSURSHUW\ HVWDWHXQGHU†5HFRYHU\ZDVQRWQHFHVVDU\EHFDXVHWKH 7KHTXHVWLRQKRZHYHULVZKDWKDSSHQHGWR,0&jVPRUWJDJH FRGHLWVHOISURYLGHGIRUWKHLQWHUHVWjVUHWXUQWRWKHHVWDWH LQWHUHVWXSRQDYRLGDQFH,0&DUJXHVWKDWRQFHWKHWUDQVIHU ZDV DYRLGHG WKH 7UXVWHH UHFRYHUHG WKH LQWHUHVW XQGHU :HUHFRJQL]HWKDWXQGHURXULQWHUSUHWDWLRQPDQ\FDVHVZLOO †  D   5HFRYHU\ WKH VHFRQG FRQFHSW LV D VWDWXWRU\ WXUQRQZKHWKHUDSDUWLFXODUFUHGLWRUjVLQWHUHVWLQWKHGHEWRUjV PHFKDQLVPWKURXJKZKLFKSURSHUW\PD\EHUHWXUQHGWRWKH SURSHUW\SULRUWRWKDWLQWHUHVWEHLQJDYRLGHGZDVSRVVHVVRU\ HVWDWH7KH7UXVWHHDUJXHVWKDWUHFRYHU\ZDVXQQHFHVVDU\LQ RU QRQSRVVHVVRU\  ,Q WKH FDVH RI FUHGLWRUV ZKR KDYH WKHSUHVHQWFDVHEHFDXVH,0&jVLQWHUHVWUHWXUQHGWRWKHHVWDWH SRVVHVVRU\LQWHUHVWVLQWKHGHEWRUjVSURSHUW\WKHWUXVWHHZLOO LPPHGLDWHO\ZKHQWKHPRUWJDJHZDVDYRLGHGZLWKRXW† JHQHUDOO\KDYHWRSXUVXHUHFRYHU\EHFDXVHPHUHDYRLGDQFH UHFRYHU\:HDJUHH$FFRUGLQJO\ZHGRQRWQHHGWRGHFLGH ZRXOGQRWEULQJWKHSURSHUW\EDFNLQWRWKHHVWDWHjVSRVVHVVLRQ ZKHWKHUDV,0&DVVHUWVWKHSURWHFWLRQVRIIHUHGLQ† H ,Q FRQWUDVW LQ FDVHV LQYROYLQJ FUHGLWRUV VXFK DV ,0& ZKR DSSO\QRWRQO\WRWKHLQLWLDOJRRGIDLWKWUDQVIHUHHVEXWDOVRWR KDYHQRQSRVVHVVRU\LQWHUHVWVLQWKHGHEWRUjVSURSHUW\WUXVWHHV DQ\VXEVHTXHQWJRRGIDLWKWUDQVIHUHHV ZLOOJHQHUDOO\QRWKDYHWRVHHNUHFRYHU\DQGWKHFUHGLWRUVZLOO QRWEHHQWLWOHGWRDQ\RIWKH† H SURWHFWLRQV $5HOHYDQW6WDWXWHV $OWKRXJK FULWLFV DUJXH WKDW WKLV GLVWLQFWLRQ EHWZHHQ WKH 6HYHUDOSRUWLRQVRIWKHEDQNUXSWF\FRGHDUHUHOHYDQWWRWKLV KROGHUVRISRVVHVVRU\DQGQRQSRVVHVVRU\LQWHUHVWVGRHVQRW GLVFXVVLRQ7KHDQDO\VLVEHJLQVZLWK86&†ZKLFK  ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO 

FRQFHSWV RI DYRLGLQJ D WUDQVIHU DQG UHFRYHULQJ IURP WKH SURYLGHV IRU WKH UHFRYHU\ RI SURSHUW\ DYRLGHG XQGHU RWKHU WUDQVIHUHHl+55HS1R  DW   UHSULQWHG VHFWLRQV DQG LQ †  H  RIIHUV SURWHFWLRQV IRU FHUWDLQ LQ 86&&$17KHIDFWWKDWDYRLGDQFH FUHGLWRUV7KHUHOHYDQWSDUWVRI†UHDGDVIROORZV DQGUHFRYHU\DUHGLVWLQFWGRHVQRWPHDQWKDWDYRLGDQFHFDQQRW WULJJHUUHFRYHU\EXWLWGRHVVXJJHVWWKDWDYRLGDQFHQHHGQRW D ([FHSWDVRWKHUZLVHSURYLGHGLQWKLVVHFWLRQWRWKH DOZD\VWULJJHUUHFRYHU\ H[WHQWWKDWDWUDQVIHULVDYRLGHGXQGHUVHFWLRQ   E RU D RIWKLVWLWOHWKHWUXVWHH 6HFRQGWKHIDFWWKDWDYRLGDQFHLVDQHFHVVDU\SUHFRQGLWLRQ PD\UHFRYHUIRUWKHEHQHILWRIWKHHVWDWHWKHSURSHUW\ WR †  UHFRYHU\ GRHV QRW LPSO\ WKDW DYRLGDQFH LV D WUDQVIHUUHGRULIWKHFRXUWVRRUGHUVWKHYDOXHRIVXFK VXIILFLHQW FRQGLWLRQ IRU †  UHFRYHU\ RU WKDW DYRLGDQFH SURSHUW\ IURP n   WKH LQLWLDO WUDQVIHUHH RI VXFK DXWRPDWLFDOO\WULJJHUV†UHFRYHU\7KHWUXVWHHjVUHPHG\ WUDQVIHURUWKHHQWLW\IRUZKRVHEHQHILWVXFKWUDQVIHUZDV RIUHFRYHU\LVQHFHVVDU\RQO\ZKHQWKHUHPHG\RIDYRLGDQFH PDGH RU  DQ\LPPHGLDWHRUPHGLDWHWUDQVIHUHHRIVXFK LVLQDGHTXDWH7KDWLVZKHQWKHDYRLGDQFHRIDWUDQVIHUGRHV LQLWLDOWUDQVIHUHH QRW IXOO\ VDWLVI\ WKH HVWDWH WKHQ WKH WUXVWHH PD\ VHHN WR E 7KHWUXVWHHPD\QRWUHFRYHUXQGHUVHFWLRQ D  RI UHFRYHU WKH SURSHUW\ WUDQVIHUUHG EXW ZKHQ WKH DYRLGDQFH WKLVVHFWLRQIURPn  DWUDQVIHUHHWKDWWDNHVIRUYDOXH DORQHLVDVXIILFLHQWUHPHG\WKHUHLVQRQHHGIRUWKHWUXVWHHWR LQFOXGLQJ VDWLVIDFWLRQ RU VHFXULQJ RI D SUHVHQW RU VHHN UHFRYHU\  8QOLNH WKH FRXUW LQ ,Q UH .UXHJHU ZKLFK DQWHFHGHQWGHEWLQJRRGIDLWKDQGZLWKRXWNQRZOHGJHRI GHWHUPLQHG WKDW WKH VWDWXWH PDGH UHFRYHU\ DXWRPDWLF XSRQ WKH YRLGDELOLW\ RI WKH WUDQVIHU DYRLGHG  RU   DQ\ DYRLGDQFH  :/   DW  ZH FRQFOXGH WKDW WKH LPPHGLDWH RU PHGLDWH JRRG IDLWK WUDQVIHUHH RI VXFK ODQJXDJH RI †  VWDWLQJ WKDW WKH mWUXVWHH PD\ UHFRYHUl WUDQVIHUHH SURSHUW\ IROORZLQJ DYRLGDQFH  86& †  HPSKDVLV  DGGHG  LV SHUPLVVLYH UDWKHU WKDQ PDQGDWRU\ WKH WUXVWHH H    $ JRRG IDLWK WUDQVIHUHH IURP ZKRP WKH WUXVWHH mPXVWl UHFRYHU  RU GHVFULSWLYH WKH WUXVWHH mWKHUHE\l PD\UHFRYHUXQGHUVXEVHFWLRQ D RIWKLVVHFWLRQKDVD UHFRYHUV 6HHDOVR'DYLG*(SVWHLQHWDO%DQNUXSWF\ OLHQRQWKHSURSHUW\UHFRYHUHGWRVHFXUHWKHOHVVHURIn †   DW  :HVW    m5HFRYHU\ JRHV EH\RQG $  WKH FRVW WR VXFK WUDQVIHUHH RI DQ\ LPSURYHPHQW DYRLGDQFH5HFRYHU\LVDEDQNUXSWF\UHPHG\IRUDYRLGDQFH PDGH DIWHU WKH WUDQVIHU OHVV WKH DPRXQW RI DQ\ SURILW ZKLFK PDNHV WUDQVIHUHHV RI WKH DIIHFWHG SURSHUW\ DQG DOVR UHDOL]HG E\ RU DFFUXLQJ WR VXFK WUDQVIHUHH IURP VXFK SHRSOHIRUZKRVHEHQHILWWKHWUDQVIHUZDVPDGHSHUVRQDOO\ SURSHUW\  DQG %  DQ\ LQFUHDVH LQ WKH YDOXH RI VXFK DFFRXQWDEOHWRWKHHVWDWHIRUWKHUHWXUQRIWKHSURSHUW\RUIRU SURSHUW\DVDUHVXOWRIVXFKLPSURYHPHQWRIWKHSURSHUW\ LWVYDOXHl  WUDQVIHUUHG     ,Q WKLV VXEVHFWLRQ mLPSURYHPHQWl LQFOXGHV ' SD\PHQWRIDQ\GHEWVHFXUHGE\DOLHQRQ (YHQ DVVXPLQJ WKDW WKH GHIHFWLYH PRUWJDJH FUHDWHG D VXFKSURSHUW\WKDWLVVXSHULRURUHTXDOWRWKHULJKWVRIWKH SURSHUW\LQWHUHVWXQGHU2KLRODZDQDVVXPSWLRQZHLPSOLFLWO\ WUXVWHH PDGH LQ =DSWRFN\ VHH ,Q UH =DSWRFN\  )G DW  DYRLGDQFH RI WKDW LQWHUHVW ZDV DQ DGHTXDWH UHPHG\  7KH  86& †   $FFRUGLQJO\ IRU WKH SUHVHQW FDVH ,0& DUJXHV WKDW DIWHU WKH 7UXVWHH DYRLGHG WKH PRUWJDJH XQGHU †WKH7UXVWHHLPSOLFLWO\VRXJKWWRUHFRYHUWKHLQWHUHVW  6HH +DUULVRQ Y %UHQW 7RZLQJ &R ,Q UH + 6 7UDQVS &R   XQGHU† D ZLWKRXWVXFKLPSOLFLWUHFRYHU\,0&DUJXHV )G   WK &LU   m>$@FFRUGLQJ WR WKH OLWHUDO ODQJXDJH RI WKH WKH 7UXVWHH FRXOG QRW KDYH JDLQHG WKH IXOO LQWHUHVW LQ WKH VWDWXWH WKHUH PXVW EH DQ DYRLGDEOH WUDQVIHU EHIRUH WKHUH FDQ EH UHFRYHU\ SURSHUW\7KXV,0&DVDJRRGIDLWKWUDQVIHUHHZDVHQWLWOHG E\ WKH WUXVWHH SXUVXDQW WR VHFWLRQ  D l   ,QUH%XUQVHWDO 1RV  1RV  ,QUH%XUQVHWDO

WRDOLHQSXUVXDQWWR† H IRUWKHFRVWRIWKHLPSURYHPHQWV %$YRLGDQFHDQG5HFRYHU\ WKDWLWPDGHWRWKHSURSHUW\ 7KH 7UXVWHH SURSHUO\ DYRLGHG WKH PRUWJDJH IRU EHLQJ 7KUHHRWKHUVWDWXWHVDUHDOVRUHOHYDQW7KHILUVWLV† D  LPSURSHUO\ZLWQHVVHG2KLR5HYLVHG&RGH†ZKLFK ZKLFK GHILQHV WKH SURSHUW\ WKDW FRPSULVHV WKH EDQNUXSWF\ SULRUWRLWVUHSHDOSURYLGHGUHFRUGHGPRUWJDJHVDQLUUHEXWWDEOH HVWDWH SUHVXPSWLRQ RI YDOLGLW\ GRHV QRW JRYHUQ WKLV FDVH ZKLFK LQYROYHV D EDQNUXSWF\ SHWLWLRQ ILOHG EHIRUH WKH VKRUWOLYHG >7KH@HVWDWHLVFRPSULVHGRIDOOWKHIROORZLQJSURSHUW\ †EHFDPHHIIHFWLYH $V ZH KHOGLQ=DSWRFN\Y ZKHUHYHUORFDWHGDQGE\ZKRPHYHUKHOG   $Q\ &KDVH 0DQKDWWDQ %DQN ,Q UH =DSWRFN\   )G  LQWHUHVWLQSURSHUW\WKDWWKHWUXVWHHUHFRYHUVXQGHUVHFWLRQ  WK &LU   DQRWKHU FDVH WKDW LQYROYHG D RIWKLVWLWOH  $Q\LQWHUHVWLQSURSHUW\ EDQNUXSWF\SHWLWLRQILOHGEHIRUH†ZHQWLQWRHIIHFW SUHVHUYHGIRUWKHEHQHILWRIRUWUDQVIHUUHGWRWKHHVWDWH  86& †  D  JLYHV WKH WUXVWHH WKH SRZHU WR DYRLG D XQGHUVHFWLRQRIWKLVWLWOH PRUWJDJHWKDWZDVLPSURSHUO\ZLWQHVVHGXQGHU2KLRODZ 86&† D 7KHVHFRQGLV† D ZKLFKJLYHVWKH $FFRUGLQJO\ZHPXVWGHWHUPLQHZKHWKHU,0&LVHQWLWOHGWR WUXVWHHWKHSRZHUWRDYRLGWKHPRUWJDJHIRUEHLQJLPSURSHUO\ DOLHQLQWHUHVWLQWKHSURSHUW\SXUVXDQWWR† H &RXUWVLQ ZLWQHVVHG WKLVFLUFXLWKDYHVSOLWRQWKHLVVXH&RPSDUH(LVHQY$OOLHG %DQFVKDUHV 0RUWJDJH &RUS ,Q UH 3ULHVW   %5  7KHWUXVWHHVKDOOKDYHWKHULJKWVDQGSRZHUVRIRU %DQNU1'2KLR  KROGLQJWKDWPRUWJDJHLQWHUHVWLV PD\DYRLGDQ\WUDQVIHURISURSHUW\RIWKHGHEWRURUDQ\ SUHVHUYHGIRUWKHHVWDWHLPPHGLDWHO\XSRQDYRLGDQFHZLWKRXW REOLJDWLRQLQFXUUHGE\WKHGHEWRUWKDWLVYRLGDEOHE\ UHFRXUVHWR†UHFRYHU\ ZLWK+HOEOLQJY.UXHJHU ,QUH   D ERQD ILGH SXUFKDVHU RI UHDO SURSHUW\ RWKHU WKDQ .UXHJHU  1R   :/   %DQNU 1' IL[WXUHVIURPWKHGHEWRUDJDLQVWZKRPDSSOLFDEOHODZ 2KLRsXQH  KROGLQJWKDW†OLHQLVDYDLODEOHWR SHUPLWV VXFK WUDQVIHU WR EH SHUIHFWHG WKDW REWDLQV WKH WUDQVIHUHHDIWHUPRUWJDJHZDVDYRLGHGHYHQLIWKHUHZDVQR VWDWXVRIDERQDILGHSXUFKDVHUDQGKDVSHUIHFWHGVXFK DFWXDOUHFRYHU\ :HDJUHHZLWKWKHFRXUWLQ,QUH3ULHVWDQG WUDQVIHUDWWKHWLPHRIWKHFRPPHQFHPHQWRIWKHFDVH KROGWKDWEHFDXVHWKH7UXVWHHQHLWKHUVRXJKWQRUQHHGHGWR ZKHWKHURUQRWVXFKDSXUFKDVHUH[LVWV VHHNUHFRYHU\KHUH†GLGQRWDSSO\DQGWKH† H OLHQ WKDW,0&VRXJKWZDVXQDYDLODEOH  86& †  D   7KH WKLUG LV †  ZKLFK JRYHUQV WUDQVIHUVWKDWDUHDYRLGHGDQGSUHVHUYHVWKHPIRUWKHHVWDWH )LUVW DYRLGDQFH DQG UHFRYHU\ DUH GLVWLQFW FRQFHSWV DQG SURFHVVHV7KLVLVFOHDUIURPERWKWKHVWDWXWHLWVHOIDQGIURP $Q\WUDQVIHUDYRLGHGXQGHUVHFWLRQ LWVOHJLVODWLYHKLVWRU\$YRLGDQFHDQGUHFRYHU\DUHDGGUHVVHG  RU D RIWKLVWLWOHRUDQ\OLHQYRLGXQGHU LQ WZR VHSDUDWH VHFWLRQV RI WKH FRGH  86& †  DQG VHFWLRQ G RIWKLVWLWOHLVSUHVHUYHGIRUWKHEHQHILWRI †  UHVSHFWLYHO\ DQG KDYH WZR VHSDUDWH VWDWXWHV RI WKHHVWDWHEXWRQO\ZLWKUHVSHFWWRSURSHUW\RIWKHHVWDWH OLPLWDWLRQV  86& †  D  DQG †  I  UHVSHFWLYHO\ $FFRUGLQJWRWKH+RXVH5HSRUWIRUWKH%DQNUXSWF\5HIRUP 86&† $FWRI †mHQXQFLDWHVWKHVHSDUDWLRQEHWZHHQWKH

 6HFWLRQ  EHFDPH HIIHFWLYH RQ sXQH    DQG ZDV UHSHDOHG LQ DQ DFW VLJQHG E\ WKH *RYHUQRU RQ 1RYHPEHU