Unofficial translation LAW ON GAMES OF CHANCE AND

/$:21*$0(62)&+$1&($1'
(17(57$,10(17*$0(6
8QRIILFLDOWUDQVODWLRQ
*(1(5$/3529,6,216
$UWLFOH
7KLV /DZ UHJXODWHV WKH NLQGV WKH FRQGLWLRQV DQG WKH ZD\ WKH JDPHV RI FKDQFH DQG
HQWHUWDLQPHQWJDPHVDUHRUJDQL]HGLQ5HSXEOLFRI0DFHGRQLD
$UWLFOH
3UHPLXP JDPHV DFFRUGLQJ WR WKLV /DZ DUH JDPHV LQ ZKLFK D JUHDWHU QXPEHU RI
SDUWLFLSDQWVWDNHVSDUWDQGLQZKLFKDSDUWIURPWKHHQWHUWDLQPHQWWKHSDUWLFLSDQWVKDYH
DQRSSRUWXQLW\WRPDNHSURILWLQPRQH\REMHFWVRUULJKWVDQGWKHILQDOUHVXOWRIWKHJDPH
GRHVQRWGHSHQGRQWKHNQRZOHGJHDQGWKHVNLOOVRIWKHSDUWLFLSDQWVLQWKHJDPH
7KHJDPHVZKLFK DUHQRW UHJXODWHGE\ WKLV /DZ DUH QRW FRQVLGHUHG DV JDPHV RI FKDQFH
DQGLWLVSURKLELWHGWRRUJDQL]HWKHP
$UWLFOH
(QWHUWDLQPHQWJDPHVDFFRUGLQJWRWKLV/DZDUHJDPHVRQFRPSXWHUVVLPXODWRUVYLGHR
DXWRPDWHV SLQ EDOO PDFKLQHV GDUW ELOOLDUGV DQG RWKHU VLPLODU PDFKLQHV ZKLFK DUH SXW
LQWR RSHUDWLRQ E\ LQVHUWLQJ FRLQV FKLSV RU E\ SD\PHQW DQG LQ ZKLFK WKH SDUWLFLSDQW
FDQQRWPDNHSURILWLQPRQH\REMHFWVRUULJKWVH[FHSWWKHULJKWRQRQHRUPRUHSUHPLXP
JDPHVRQWKHHQWHUWDLQPHQWPDFKLQH
$UWLFOH
7KHJDPHVRIFKDQFHDQGWKHHQWHUWDLQPHQWJDPHVDUHRUJDQL]HGIRUHQWHUWDLQPHQWRIWKH
SDUWLFLSDQWV LQ WKH JDPH DV ZHOO DV IRU JDLQLQJ DVVHWV ZKLFK SUHVHQW D UHYHQXH IRU WKH
%XGJHWRI5HSXEOLFRI0DFHGRQLD
7KH DVVHWV IURP SDUDJUDSK RI WKLV $UWLFOH ZLOO EH XVHG WR ILQDQFH FHUWDLQ DQQXDO
SURJUDPVDQGWDVNVRIDVVRFLDWLRQVRIFLWL]HQVSURJUDPVRIDVVRFLDWLRQVRIKDQGLFDSSHG
SHUVRQVVSRUWDVVRFLDWLRQVDQGWKH5HG&URVVRI5HSXEOLFRI0DFHGRQLD
7KH GLVWULEXWLRQ RI WKH DVVHWV IURP SDUDJUDSK RI WKLV $UWLFOH LV FDUULHG RXW E\ WKH
*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLDRQWKHEDVLVRIWKHSUHVHQWHGSURJUDPV
$UWLFOH
3DUWLFLSDQWV LQ WKH JDPHV RI FKDQFH DQG WKH HQWHUWDLQPHQW JDPHV DUH WKH KROGHUV RI
ORWWHU\WLFNHWVWRPERODFDUGVFRXSRQVVWXEVFKLSVRUFHUWLILFDWHVIRUWKHDPRXQWSDLG
IRUSDUWLFLSDWLRQLQWKHJDPHLHSHUVRQVZKRKDYHIXOILOOHGWKHFRQGLWLRQVUHJXODWHGE\
WKHUXOHVRIWKHJDPH
$UWLFOH
7KH RUJDQL]HU RI WKH JDPHV RI FKDQFH LQ DFFRUGDQFH ZLWK WKLV /DZ JXDUDQWHHV D
IXOILOOPHQWRIWKHREOLJDWLRQVWRZDUGVWKHSDUWLFLSDQWVLQWKHJDPHV
$UWLFOH
7KHRUJDQL]DWLRQRIJDPHVRIFKDQFHLVDULJKWRI5HSXEOLFRI0DFHGRQLD
$UWLFOH
,QRUGHUWRRUJDQL]HWKHJDPHVRIFKDQFHDOLFHQVHWKDWLVDQDSSURYDOLVLVVXHGWRWKH
RUJDQL]HU
7KHOLFHQVHWKDWLVWKHDSSURYDOLVQRWWUDQVIHUDEOH
,,7<3(62)*$0(62)&+$1&(
$UWLFOH
*DPHVRIFKDQFHFDQEHJHQHUDODQGVSHFLILF
$ *HQHUDOJDPHVRIFKDQFHDUH
'UDZLQJJDPHVORWWRVSRUWVSURJQRVLVORWWHU\LQVWDQWORWWHU\DQGWRPEROD
%HWRQVSRUWVFRPSHWLWLRQVDQG
3UHPLXPJDPHV
% 6SHFLILFJDPHVRIFKDQFHDUH
*DPHVWKDWDUHRUJDQL]HGLQDJDPLQJKRXVHFDVLQRDQG
*DPHVRQVORWPDFKLQHV
$UWLFOH
/RWWRLVDJDPHLQZKLFKWKHSDUWLFLSDQWE\ILOOLQJRXWDFDUGLVVXHGE\WKHRUJDQL]HU
FRQVLVWLQJRIDFRXSRQDQGDVWXERQZKLFKLQDFFRUGDQFHZLWKWKHUXOHVRIWKHJDPH
WKHUHDUHQXPEHUVHQWHUHGJXHVVHVDFHUWDLQJURXSRIQXPEHUVE\FURVVLQJWKHPRXW
E\KLVRZQFKRLFH7KHVWXEZKLFKUHPDLQVIRUWKHSDUWLFLSDQWLQWKHJDPHEULQJVKLP
DJDLQLQDFDVHZKHQWKHQXPEHUVFURVVHGRXWDUHGUDZQRQZLWKDSXEOLFGUDZLQJ
XQGHUDFRQGLWLRQWKDWWKHVDPHQXPEHUVDUHFURVVHGRXWERWKRQWKHVWXEDQGRQWKH
FRXSRQZKLFKLVGHSRVLWHGDWWKHRUJDQL]HUDQGZKHQWKHRWKHUFRQGLWLRQVGHWHUPLQHG
E\WKHUXOHVRIWKHJDPHDUHIXOILOOHG
6SRUWVSURJQRVLVLVDJDPHLQZKLFKWKHSDUWLFLSDQWE\ILOOLQJRXWDWLFNHWLVVXHGE\
WKHRUJDQL]HUFRQVLVWLQJRIDFRXSRQDQGDVWXERQZKLFKWKHFRPSHWLWLYHSDLUVDUH
HQWHUHGJXHVVHVWKHUHVXOWRIWKHJDPHVIRUHDFKSDLUVHSDUDWHO\E\XVLQJVLJQV
GHWHUPLQHGE\WKHUXOHVRIWKHJDPH7KHVWXEWKDWUHPDLQVLQWKHRZQHUVKLSRIWKH
SDUWLFLSDQWRIWKHJDPHEULQJVKLPDJDLQRQO\LIWKHSDUWLFLSDQWKDVJXHVVHGDOORU
DFFRUGLQJWRWKHUXOHVRIWKHJDPHWKHGHWHUPLQHGQXPEHURIUHVXOWVRIWKH
FRPSHWLWLRQVXQGHUDFRQGLWLRQWKDWWKHUHVXOWVWKDWLVWKHVLJQIRUWKHUHVXOWLV
HQWHUHGWKDWLVFURVVHGRXWLGHQWLFDOO\ERWKRQWKHVWXEDQGRQWKHFRXSRQZKLFKLV
GHSRVLWHGDWWKHRUJDQL]HUDQGZKHQWKHRWKHUFRQGLWLRQVGHWHUPLQHGE\WKHUXOHVRI
WKHJDPHDUHIXOILOOHG
7KHUHVXOWVRIWKHFRPSHWLWLRQVZKLFKDUHQRWWDNHQLQWRFRQVLGHUDWLRQRUKHOGZLWKLQWKH
GHWHUPLQHGWLPHOLPLWZLOOEHFRPSHQVDWHGZLWKWKHUHVHUYHFRPSHWLWLRQSDLUV
/RWWHU\LVDJDPHLQZKLFKWKHSDUWLFLSDQWKDVDORWWHU\WLFNHWLVVXHGE\WKHRUJDQL]HU
RQZKLFKLQDFFRUGDQFHZLWKWKHUXOHVRIWKHJDPHFHUWDLQQXPEHULVHQWHUHGWKDWLV
LQZKLFKWKHSDUWLFLSDWLRQLQWKHJDPHLVPDUNHGZLWKFXUUHQWFRQWLQXDOQXPEHUV
7KHORWWHU\WLFNHWEULQJVJDLQZKHQE\SXEOLFGUDZLQJFHUWDLQSDUWVRIWKHQXPEHURU
WKHZKROHQXPEHUHQWHUHGRQWKHWLFNHWDUHGUDZQ
,QVWDQWORWWHU\LVDJDPHLQZKLFKWKHSDUWLFLSDQWKDVDWLFNHWLVVXHGE\WKHRUJDQL]HU
RQZKLFKLQDFFRUGDQFHZLWKWKHUXOHVRIWKHJDPHWKHSDUWLFLSDQWFDQLPPHGLDWHO\
E\RSHQLQJWKHFRYHURUVFUDWFKLQJWKHDSSURSULDWHSURWHFWLRQJDLQIURPWKHHQWHUHG
JDLQLQJDPRXQWFHUWDLQQXPEHURUV\PEROWKURXJKWKHRSSRUWXQLWLHVIRUJDLQLQJD
FRPELQDWLRQRIWKHQXPEHUVDQGWKHV\PEROILQGRXWWKHSRVVLEOHJDLQ
7RPERODLVDJDPHLQZKLFKWKHSDUWLFLSDQWKDVDWRPERODFDUGLVVXHGE\WKH
RUJDQL]HUZKLFKFRQVLVWVRIWKUHHOLQHVZLWKILYHGLIIHUHQWQXPEHUVIURPWKHVHULHVRI
QXPEHUVIURPWRDQGWKHJDLQFDQEHDFTXLUHGZLWKWKRVHFDUGVZKLFKVKRZVXFK
DFRPELQDWLRQRIQXPEHUVJDLQLQJFRPELQDWLRQZKLFKDFFRUGLQJWRWKHUXOHVRIWKH
JDPHLVPDUNHGDVWKHRQHWKDWZLQVDQGWKHQXPEHUVRIWKLVFRPELQDWLRQDUH
GHWHUPLQHGE\DPHFKDQLFSXEOLFGUDZLQJZKLFKLVWKHQDQQRXQFHG
$ZLQQLQJFRPELQDWLRQDFFRUGLQJWRWKHUXOHVRIWKHJDPHFDQEH
$PERWZRQXPEHUVLQDVHULHV
7HUQRWKUHHQXPEHUVLQDVHULHV
/XDWHUQRIRXUQXPEHUVLQRQHVHULHV
/XLQWHUQRDOOWKHQXPEHUVLQWKHVDPHVHULHV
'HVHPWHUQRDOOWKHQXPEHUVLQWZRVHULHVDQG
7RPERODDOOQXPEHUVRQRQHFDUGRIWKHWRPEROD
%HWRQVSRUWVFRPSHWLWLRQVLVDJDPHLQZKLFKWKHSDUWLFLSDQWKDVDWLFNHWRQZKLFKLQ
DFFRUGDQFHZLWKWKHUXOHVRIWKHJDPHWKHQXPEHUVRIWKHFRPSHWLWRUVDUHHQWHUHG
WKDWLVFLUFOHG
3UHPLXPJDPHLVDJDPHZKLFKLQRUGHUWRDGYHUWLVHWKHLURZQSURGXFWVRUVHUYLFHV
IURPWKHDFWLYLW\WKDWWKH\DFWXDOO\FDUU\RXWLVRUJDQL]HGE\WUDGHFRPSDQLHVZLWKD
SXEOLFDQQRXQFHPHQWRIWKHFRQGLWLRQVIRUSDUWLFLSDWLRQLQWKHJDPHGHWHUPLQHGE\
WKHUXOHVRIWKHJDPH
7KHJDLQVRQWKHEDVLVRIWKHSUHPLXPJDPHFDQEHRQO\LQJRRGVDQGVHUYLFHVIURPWKH
JDPHRUJDQL]HU¶VDVVRUWPHQWRISURGXFWVDQGVHUYLFHV
$UWLFOH
7KH WLFNHWV DQG WRPEROD FDUGV IRU FHUWDLQ NLQGV RI JDPHV RI FKDQFH IURP $UWLFOH RI
WKLV/DZDUHUHJLVWHUHGDQGYHULILHGE\WKH0LQLVWU\RI)LQDQFH
7KH FDQFHOLQJ RI WKH QRQ VROG WLFNHWV LV FDUULHG RXW XQGHU D VXSHUYLVLRQ E\ SHUVRQV
DXWKRUL]HGE\WKH0LQLVWHURI)LQDQFH
7KH WLFNHWV DUH SULQWHG E\ WKH VDPH VWDQGDUGV DFFRUGLQJ WR ZKLFK WKH VHFXULWLHV LQ WKH
5HSXEOLFRI0DFHGRQLDDUHSULQWHG
7KHRUJDQL]HUFDUULHVRXWWKHSULQWLQJRIWKHWLFNHWVDQGWKHWRPERODFDUGV
$UWLFOH
6SHFLILF JDPHV RI FKDQFH DUH WKH JDPHV RI FKDQFH ZKLFK DUH RUJDQL]HG LQ D VSHFLDOO\
DUUDQJHG URRPVJDPLQJ KRXVHV LQ ZKLFK WKH SDUWLFLSDQWV LQ WKH JDPH SOD\ DJDLQVW WKH
RUJDQL]HUWKHIROORZLQJJDPHVJDPHVRIFKDQFHZKLFKDUHRUJDQL]HGRQDJDPLQJWDEOH
IRUDJDPHZLWKEDOOVGLFHVDQGFDUGVDQGJDPHVRQVORWPDFKLQHV
7KHJDPHVRQVORWPDFKLQHVDUHJDPHVZKLFKSURYLGHDJDLQLQFKLSVWKDWLVPRQH\IURP
WKHFRPELQDWLRQVDQGVLJQVFOHDUO\YLVLEOHRQWKHFRPELQDWLRQF\OLQGHUVDJDLQLQJOLQH
7KHRUJDQL]HURIWKHVSHFLILFJDPHVRIFKDQFHDSSOLHVWKRVHJHQHUDOO\DFFHSWHGUXOHVIRU
VSHFLILFJDPHVRIFKDQFHZKLFKDUHDSSOLHGLQWKHIDPRXVZRUOGZLGHJDPLQJKRXVHV
,,,25*$1,=,1**$0(62)&+$1&(
$UWLFOH
7KHRUJDQL]DWLRQRIJDPHVRIFKDQFHFDQEHSHUPDQHQWRUWHPSRUDU\
$WUDGHFRPSDQ\FDQFDUU\RXWWKHSHUPDQHQWRUJDQL]DWLRQRIJDPHVRIFKDQFHJHQHUDO
DQGVSHFLILF
$ WHPSRUDU\ RUJDQL]DWLRQ RI JDPHV RI FKDQFH FDQ EH FDUULHG RXW E\ DVVRFLDWLRQV RI
FLWL]HQVIURPWKHILHOGVRISK\VLFDOFXOWXUHWHFKQLFDOFXOWXUHDQGKDQGLFDSSHGSHUVRQVRQ
D EDVLV RQ DQ DSSURYDO 7KH IROORZLQJ JDPHV FDQ EH RUJDQL]HG WHPSRUDULO\ ORWWHU\
WRPERODEHWRQVSRUWVFRPSHWLWLRQVDQGVSRUWVSURJQRVLV
$UWLFOH
)RUHLJQ OHJDO DQG SK\VLFDO SHUVRQV FDQQRW RUJDQL]H LQGHSHQGHQWO\ JDPHV RI FKDQFH
H[FHSWLQWKHFDVHVGHWHUPLQHGZLWKWKLV/DZ
$UWLFOH
7KHRUJDQL]HURIWKHJDPHVRIFKDQFHZKRKDVREWDLQHGDOLFHQVHFDQSDUWLFLSDWHLQWKH
RUJDQL]DWLRQRIWKHJDPHVRIFKDQFHDEURDGDQGFDQRUJDQL]HJDPHVRIFKDQFHWRJHWKHU
ZLWK IRUHLJQ RUJDQL]HUV XQGHU FRQGLWLRQV DQG FULWHULD UHJXODWHG E\ WKH 0LQLVWHU RI
)LQDQFH
$OLFHQVHLHDQDSSURYDOIRURUJDQL]LQJJDPHVRIFKDQFH
$UWLFOH
2QWKHEHKDOIRI5HSXEOLFRI0DFHGRQLDOLFHQVHVIRUSHUPDQHQWRUJDQL]DWLRQRIJDPHV
RIFKDQFHDUHLVVXHGE\WKH*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLD
7KH 0LQLVWHU RI )LQDQFH LVVXHV DQ DSSURYDO IRU D WHPSRUDU\ RUJDQL]DWLRQ RI D JDPH RI
FKDQFHDSUHPLXPJDPH
$UWLFOH
$OLFHQVHIRUDSHUPDQHQWRUJDQL]DWLRQRIJDPHVRIFKDQFHLVLVVXHGRQDEDVLVRIDSXEOLF
DQQRXQFHPHQW
$QDSSURYDOIRUDWHPSRUDU\RUJDQL]DWLRQRIJDPHVRIFKDQFHLVLVVXHGRQWKHEDVLVRIDQ
UHTXHVWIURPWKHRUJDQL]HUZKLFKLVVXEPLWWHGWRWKH0LQLVWU\RI)LQDQFH
$Q DSSURYDO IRU D WHPSRUDU\ RUJDQL]DWLRQ RI WKH JDPHV RI FKDQFH IURP SDUDJUDSK RI
WKLV$UWLFOHLVLVVXHGLQDSHULRGRIQLQHPRQWKVDQGFDQQRWEHH[WHQGHGWKDWLVUHQHZHG
GXULQJWKHFDOHQGDU\HDU
7KHZD\DQGWKHSURFHGXUHIRULVVXLQJOLFHQVHVWKDWLVDSSURYDOVIRURUJDQL]LQJJDPHVRI
FKDQFHDUHPRUHFOHDUO\GHILQHGE\WKH*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLD
$UWLFOH
$ OLFHQVH IRU D SHUPDQHQW RUJDQL]DWLRQ RI D JDPH RI FKDQFH FDQ EH JLYHQ WR D OLPLWHG
FRPSDQ\RUWRDMRLQWVWRFNFRPSDQ\
ZLWKDEDVLFSULQFLSOHRIDWOHDVW'0LQGHQDUFRXQWHUYDOXHDFFRUGLQJWR
WKHPLGGOHH[FKDQJHUDWHRIWKH1DWLRQDO%DQNRI5HSXEOLFRI0DFHGRQLDDQGZLWKD
VHDWLQ5HSXEOLFRI0DFHGRQLD
ZKLFKKDVSURYLGHGWHFKQLFDOWHFKQRORJLFDODQGURRPFRQGLWLRQVIRUFDUU\LQJRXWWKH
DFWLYLW\RIRUJDQL]LQJJDPHVRIFKDQFH
KDVHQJDJHGPDQDJHUVDQGRWKHUSHUVRQVZKRDUHSURIHVVLRQDOO\VNLOOHGDQGZKRKDYH
DUHTXLUHGH[SHULHQFHIRUDFRUUHFWPDQDJLQJRIWKHZRUNDQGZKRKDYHQRWEHHQ
VHQWHQFHGIRUDFULPHFRQQHFWHGZLWKJDPHVRIFKDQFHRUHQWHUWDLQPHQWJDPHVRU
IRUDFULPLQDOGHHGIURPWKHILHOGRIHFRQRPLFVDQG
DWOHDVWVL[PRQWKVSULRUWKHDQQRXQFLQJRIWKHQRWLFHIRUREWDLQLQJDOLFHQVHKDV
VHWWOHGLWVREOLJDWLRQVWRZDUGVWKH6WDWHGRHVQRWKDYHDEORFNHGJLURDFFRXQWDQG
SD\VWKHVDODULHVUHJXODUO\
$UWLFOH
2QO\ RQH OLFHQVH FDQ EH LVVXHG IRU ORWWR DQG DOVR RQO\ RQH OLFHQVH FDQ EH LVVXHG IRU
LQVWDQWORWWHU\
$UWLFOH
$Q DSSURYDO IRU D WHPSRUDU\ RUJDQL]DWLRQ RI JDPHV RI FKDQFH FDQ EH LVVXHG WR DQ
DVVRFLDWLRQRIFLWL]HQVZKLFK
ZLOO SURYLGH WKH WHFKQLFDO WHFKQRORJLFDO DQG WKH URRP FRQGLWLRQV IRU RUJDQL]DWLRQ RI
WKHJDPHRIFKDQFHIRUZKLFKWKHDSSURYDOZDVUHTXHVWHG
ZLOO HODERUDWH LQ D GRFXPHQWHG IRUP WKH QHHG IRU RUJDQL]LQJ JDPHV RI FKDQFH IRU
REWDLQLQJDVVHWVIRUILQDQFLQJWKHQHHGVRIWKHDVVRFLDWLRQV
$UWLFOH
7KH0LQLVWHURI)LQDQFHZLOOGHILQHPRUHFOHDUO\WKHWHFKQLFDOWHFKQRORJLFDOURRPDQG
RWKHUFRQGLWLRQVIURPLWHPVDQGIURP$UWLFOHDQGLWHPIURP$UWLFOHRIWKLV
/DZ
$UWLFOH
&RPSHQVDWLRQKDVWREHSDLGIRUWKHOLFHQVH
7KH*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLDZLWKD'HFLVLRQGHWHUPLQHVWKHRSHQLQJSUL]H
IRUWKHSD\PHQWRIWKHOLFHQVH
7KHKROGHURIWKHOLFHQVHLVREOLJHGWRSD\WKHDVVHWVIRUWKHJLYHQOLFHQVHLHRQWKH
GD\ RI WKH LVVXLQJ WKH OLFHQVH DQG WKH UHVW LQ HTXDO DQQXDO LQVWDOOPHQWV GXH WR -DQXDU\LQWKHFXUUHQW\HDUIRUHDFK\HDURIWKHYDOLGLW\RIWKHOLFHQVH
7KH IXQGV IURP SDUDJUDSK RI WKLV $UWLFOH DUH UHYHQXH IRU WKH %XGJHW RI 5HSXEOLF RI
0DFHGRQLD
$UWLFOH
$ULJKWIRUDOLFHQVHZLOOEH JLYHQWRWKHGHPDQGHUZKR ZLOORIIHUWKHPRVWDSSURSULDWH
ELGIRUSD\LQJWKHOLFHQVH
,Q D FDVH WKDW DW WKH SXEOLF DQQRXQFHPHQW VHYHUDO GHPDQGHUV RI WKH OLFHQVH KDYH
VXEPLWWHG WKH VDPH RIIHU IRU SD\LQJ WKH OLFHQVH DQG DOO RI WKHP IXOILOO WKH FRQGLWLRQV
WKHQ IRU LVVXLQJ RI WKH OLFHQVH D SULRULW\ LV JLYHQ WR WKH RQH ZKR ZLOO SURYLGH KLJKHU
VWDQGDUGVIRUFDUU\LQJRXWWKLVDFWLYLW\
$UWLFOH
7KH OLFHQVH FRQWDLQV WKH ULJKWV DQG WKH REOLJDWLRQV RI WKH RUJDQL]HU RI WKH JDPHV RI
FKDQFH
7KHOLFHQVHLVLVVXHGIRUDSHULRGXSWRVL[\HDUV
7KHOLFHQVHFDQEHFDQFHOOHGLQDFDQFHOODWLRQSHULRGZKLFKLVRQH\HDU
$UWLFOH
7KHDSSURYDOIRUDWHPSRUDU\RUJDQL]DWLRQRIWKHJDPHVRIFKDQFHLVLVVXHGLQDIRUPRID
'HFLVLRQ
7KHGHFLVLRQFRQWDLQVGDWDSDUWLFXODUO\IRU
WKHRUJDQL]HURIWKHJDPHRIFKDQFH
WKHNLQGRIWKHJDPHRIFKDQFH
WKHGXUDWLRQLQWLPHRIWKHDSSURYDODQG
WKHSODFHZKHUHWKHJDPHRIFKDQFHLVRUJDQL]HG
$Q DSSHDO FDQ EH VXEPLWWHG WR WKH *RYHUQPHQW RI 5HSXEOLF RI 0DFHGRQLD DJDLQVW WKH
GHFLVLRQZLWKZKLFKWKHUHTXHVWIRULVVXLQJWKHDSSURYDOKDVEHHQUHMHFWHG
$UWLFOH
7KH RUJDQL]HU LV REOLJHG WR FDUU\ RXW WKH JDPHV RI FKDQFH IRU ZKLFK KH KDV UHFHLYHG D
OLFHQVHFRQWLQXDOO\,QDFDVHRIFDQFHOODWLRQRIWKHOLFHQVHKHPXVWFRQWLQXHWRFDUU\RXW
WKHDOUHDG\FRPPHQFHGJDPHVRIFKDQFHLQDSHULRGLQZKLFKWKHJDPHVRIFKDQFHWKDW
ZHUHVWDUWHGZLOOEHILQLVKHG
$UWLFOH
7KH SDUWLFLSDWLRQ LQ IRUHLJQ JDPHV RI FKDQFH LV SURKLELWHG LI WKH VWDNHV DUH SDLG IURP
5HSXEOLFRI0DFHGRQLDFROOHFWLQJVWDNHVIRUIRUHLJQJDPHVRIFKDQFHLQWKHFRXQWU\DV
ZHOODVDEXVLQHVVHQGRUVHPHQWRI WKH WLFNHWV D FHUWLILFDWH IRU SDUWLFLSDWLRQ LQ IRUHLJQ
JDPHVRIFKDQFHLQ5HSXEOLFRI_0DFHGRQLD
$UWLFOH
7KHRUJDQL]HUVRIJDPHVRIFKDQFHWKDWKDYHUHFHLYHGDOLFHQVHDUHSXEOLVKHGLQ³2IILFLDO
*D]HWWHRI5HSXEOLFRI0DFHGRQLD´
5XOHVRIWKHJDPHVRIFKDQFH
(YHU\JDPHRIFKDQFHKDVLWVUXOHV
$UWLFOH
7KHRUJDQL]HUGHWHUPLQHVWKHUXOHVRIWKHJDPHRIFKDQFH
$UWLFOH
,QWKHFRXUVHRIWKHJDPHRIFKDQFHWKDWLVGXULQJWKHFRPPHQFHGURXQGWKHUXOHVRIWKH
JDPH FDQQRW EH DOWHUHG ZKLOH WKH FRPPHQFHG JDPH LH WKH FRPPHQFHG URXQG PXVW
ILQLVKFRPSOHWHO\DFFRUGLQJWRWKHVDPHUXOHV
$VDQH[FHSWLRQWKH*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLDDWDQHODERUDWHGUHTXLUHPHQW
IURPWKHRUJDQL]HUPD\DJUHHIRUWKHGD\WREHSRVWSRQHGRUIRUWKHSODFHRIGUDZLQJLH
WKHGHWHUPLQLQJRIWKHJDLQWREHFKDQJHG
,IWKHRUJDQL]HURIWKHJDPHKDVDOUHDG\EHJXQVHOOLQJWLFNHWVDQGWRPERODFDUGVRUVWXEV
LH GLVWULEXWLQJ WKH FHUWLILFDWH E\ SD\PHQW ZKLFK JLYHV WKH ULJKW WR SDUWLFLSDWH LQ WKH
JDPH LH UHFHLYHG SD\PHQWV EHIRUH WKH DQQRXQFHG GUDZLQJ LH EHIRUH WKH HQG RI WKH
JDPHKHFDQFDQFHOWKHRUJDQL]DWLRQRIWKHJDPHLIKHUHWXUQVWKHUHFHLYHGPRQH\XSWR
GD\VIURPWKHFDQFHOODWLRQRIWKHJDPH
$UWLFOH
7KHRUJDQL]HURIWKHJDPHRIFKDQFHGHWHUPLQHVWKHIROORZLQJDV JHQHUDOFRQGLWLRQVRI
WKHUXOHVIRURUJDQL]DWLRQRIDOOJDPHVRIFKDQFH
WKHQDPHDQGWKHGXUDWLRQRIWKHJDPH
WKHFRQGLWLRQVIRUSDUWLFLSDWLRQLQWKHJDPH
WKH SODFH ZKHUH WKH JDPH LV RUJDQL]HG WKDW LV WKH DUHD LQ ZKLFK WKH SD\PHQW IRU
SDUWLFLSDWLRQLQWKHJDPHLVGRQH
WKHKHLJKWRIWKHVWDNHWKDWLVWKHSULFHRIWKHWLFNHWWKHFRPELQDWLRQWKHWRPERODFDUG
RUWKHFKLSDVZHOODVWKHILQDOGHDGOLQHIRUSD\PHQWIRUSDUWLFLSDWLRQLQWKHJDPH
7KHNLQGRIWKHDPRXQWDQGWKHDJJUHJDWHDPRXQWRIWKHJDLQ
7KHDPRXQWDQGWKHPRQH\YDOXHRIWKHLVVXLQJRIWKHWLFNHWVLHWKHWRPERODFDUGV
DQGWKHFKLSV
7KHUHDVRQVIRUZKLFKWKHSDUWLFLSDQWVLQWKHJDPHFDQZLWKGUDZIURPLW
7KHSODFHDQGWKHWLPHWKHZD\WKHSURFHGXUHDQGWKHFRQWUROIRUWKHGUDZLQJWKDW
LVWKHGHWHUPLQDWLRQRIWKHUHVXOWVDQGWKHJDLQ
7KHZD\RIDQQRXQFLQJWKHUHVXOWIURPWKHJDPHDQGWKHDPRXQWRIWKHJDLQLQJIXQG
7KHZD\RISD\PHQWWKDWLVUHDOL]DWLRQRIWKHJDLQ
7KHSHULRGRIWLPHZLWKLQZKLFKWKHSD\PHQWLVFDUULHGRXWWKDWLVWKHJDLQLV
ZLWKGUDZQ
7KHZD\RILQIRUPLQJWKHSDUWLFLSDQWVLQWKHJDPHDERXWLWVUXOHV
7KHZD\RIPDNLQJDFRPSODLQWIRUWKHRUJDQL]DWLRQRIWKHJDPHVRIFKDQFHDQG
VXEPLWWLQJDQREMHFWLRQIURPWKHSOD\HUV
7KHUXOHVIRURUJDQL]LQJJDPHVRIFKDQFHDSDUWIURPWKHHOHPHQWVIURPSDUDJUDSKRI
WKLV/DZDOVRFRQWDLQDGHVFULSWLRQDQGDFRQWHQWRIWKHFHUWLILFDWHRQWKHEDVLVRIZKLFKD
ULJKWIRUSDUWLFLSDWLRQLQWKHJDPHWKHLQGLYLGXDOYDOXHRIWKHJDLQVDQGWKHVRXUFHVRIWKH
PHDQVRISD\PHQWWKDWLVDFRYHURIWKHJDLQVLVDFTXLUHG
$UWLFOH
%\LVVXLQJDOLFHQVHWKDWLVDQDSSURYDOWKHERG\WKDWKDVLVVXHGWKHOLFHQVHWKDWLVWKH
DSSURYDO JLYHV DQ DJUHHPHQW IRU WKH UXOHV RI WKH JDPH RI FKDQFH DQG WKH ERRN RI
UHJXODWLRQVRIWKHJDPLQJKRXVH
7KHUXOHVIRUSDUWLFLSDWLRQLQWKHJDPHKDYHWREHDQQRXQFHGDQGEHDFFHVVLEOHIRUDOOWKH
SDUWLFLSDQWVLQWKHJDPH
$UWLFOH
$FFRUGLQJ WR WKH FKDUDFWHU DQG WKH NLQG RI WKH JDPHV RI FKDQFH WKH RUJDQL]HU RI WKH
JDPHVRIFKDQFHDVVSHFLILFFRQGLWLRQVGHWHUPLQHVWKHIROORZLQJ
WKHFRXUVHRIWKHJDPHRIFKDQFH
WKHUHFHSWLRQRIWKHWLFNHWVRUWKHFHUWLILFDWHIRUWKHFRPSHWLWLRQ
WKHYDOLGLW\RIWKHGRFXPHQWIRUZLWKGUDZLQJDQGSD\PHQWRIWKHJDLQV
WKHUHODWLRQEHWZHHQWKHDPRXQWRIWKHJDLQVDQGWKHDPRXQWRIWKHVWDNHVSDLGIRU
WKHJDPH
7KHUDQNRIWKHJDLQVDQGWKHGLVWULEXWLRQRIWKHDPRXQWRIWKHJDLQVLQWRVHSDUDWH
UDQNVRIJDLQV
&OHDUHUGHILQLWLRQVIRUWKHGUDZLQJWKHQXPEHUDQGWKHNLQGRIWKHFRPSHWLWLRQV
LQFOXGHGLQWKHVSRUWVSURJQRVLVWKHFRPSHWLWLRQSURJUDPV
7KHUHODWLRQVKLSEHWZHHQWKHDPRXQWRIWKHJDLQDQGWKHDPRXQWRIWKHVWDNHLQRQH
VHULHVDQG
7KHQXPEHUDQGWKHKHLJKWRIWKHJDLQVGLVWULEXWHGLQFHUWDLQF\FOHVFODVVHV
$UWLFOH
7KHRUJDQL]HURIWKHJDPHVRIFKDQFHLVREOLJHGLQDFDVHRIPHUJLQJ³SRROXQJ´RIWKH
JDPHVRIFKDQFHIRUZKLFKKHKDVJRWDOLFHQVHWKDWLVDQDSSURYDOWRGHILQHPRUHFOHDUO\
UXOHVIRUWKHPHUJHGJDPHVRIFKDQFH
$UWLFOH
7KHGUDZLQJRIORWWRORWWHU\DQGDGGLWLRQDOGUDZLQJVIRUVSRUWVSURJQRVLVDUHFDUULHGRXW
XQGHUDVXSHUYLVLRQRISHUVRQVDXWKRUL]HGE\WKH0LQLVWHURI)LQDQFH
$UWLFOH
7KH RUJDQL]HU RI WKH JDPHV RI FKDQFH LV REOLJHG WR FDUU\ RXW WKH VHOOLQJ RI WKH WLFNHWV
WRPERODFDUGVDQGWKHVWXEVWKURXJKWKHVHOOLQJSODFHVZKLFKDUHGHWHUPLQHGLQDGYDQFH
,963(&,),&*$0(62)&+$1&(
$UWLFOH
7KHVSHFLILFJDPHVRIFKDQFHDUHRUJDQL]HGRQO\LQDJDPLQJKRXVHFDVLQR
:LWK DQ H[FHSWLRQ RI SDUDJUDSK IURP WKLV $UWLFOH WKH VORW PDFKLQHV XQGHU WKH
FRQGLWLRQVGHWHUPLQHGZLWKWKLV/DZFDQDOVREHSXWRXWVLGHWKHJDPLQJKRXVHVWKDWLVLQ
WKHPDFKLQHFOXEV
$UWLFOH
7KHRUJDQL]HURIWKHVSHFLILF JDPHVRI FKDQFHLVREOLJHGWRNHHS DFDVKERRNLQVXFK D
ZD\ WKDW LW HQDEOHV DQ LQVLJKW LQ WKH GDLO\ VLWXDWLRQ RI WKH UHYHQXHV IURP WKH VSHFLILF
JDPHVRIFKDQFH
7KH0LQLVWHURI)LQDQFHUHJXODWHVWKHFRQWHQWRIWKHFDVKERRNIURPSDUDJUDSKRIWKLV
$UWLFOH
*DPLQJ+RXVHV
$UWLFOH
$JDPLQJKRXVH&$6,12LVDVSHFLDOO\GHFRUDWHGURRPLQZKLFKWKHUHLVDIXQFWLRQDO
DQGWHFKQLFDOHTXLSPHQWZKHUHJDPHVRIFKDQFHDUHRUJDQL]HGZKHUHWKHSDUWLFLSDQWVLQ
WKHJDPHSOD\DJDLQVWWKHRUJDQL]HURIWKHJDPHJDPHVRIFKDQFHZKLFKDUHRUJDQL]HGRQ
DJDPLQJWDEOHIRUDJDPHZLWKEDOOVGLFHVFDUGVDQGJDPHVRQVORWPDFKLQHV
$UWLFOH
$JDPLQJKRXVHFDQEHRUJDQL]HGLQDKRWHOZLWK³ILYH´RU³IRXU´VWDUVRULQDVSHFLDOO\
UHQWHGREMHFWJDPLQJKRXVH
,IWKHJDPLQJKRXVHLVQRWLQDKRWHOLWVKRXOGSURYLGHFDWHULQJVHUYLFHVZKLFKFRUUHVSRQG
WR WKH RQHV IURP WKH ILUVW FDWHJRU\ UHVWDXUDQWV DQG RWKHU FDWHULQJ REMHFWV IRU VHUYLQJ
IRRGDQGGULQNVPDUNHGZLWK³IRXU³VWDUV
$UWLFOH
7KHSD\PHQWVDQGWKHJDLQVRIWKHJDPHVRIFKDQFHLQWKHJDPLQJKRXVHDUHGHWHUPLQHG
LQ GRPHVWLF RU IRUHLJQ H[FKDQJH HVWDEOLVKHG E\ WKH *RYHUQPHQW RI 5HSXEOLF RI
0DFHGRQLDLQWKHOLFHQVHIRURUJDQL]LQJRIWKHJDPLQJKRXVH
7KHJDLQVDUHSDLGLQDIRUHLJQH[FKDQJHRQO\LIWKHSD\PHQWIRUSDUWLFLSDWLRQLQWKHJDPH
ZDVGRQHLQDIRUHLJQH[FKDQJH
$UWLFOH
7KH JDPLQJ KRXVH FDQ VWDUW WR ZRUN RQO\ RQ WKH EDVLV RI D OLFHQVH IRU RUJDQL]LQJ D
JDPLQJKRXVH
$OLFHQVHIRURUJDQL]LQJJDPLQJKRXVHFDQEHLVVXHGE\WKHMRLQWVWRFNFRPSDQ\RUE\D
OLPLWHGFRPSDQ\ZKLFKDSDUWIURPWKHFRQGLWLRQVIURP$UWLFOHRIWKLV /DZ IXOILOOV
WKHIROORZLQJFRQGLWLRQV
HVWDEOLVKHVDIXQGIRUUHVHUYHVZKLFKLVDWOHDVW'0IRUJXDUDQWHHLQJRIWKH
VDIHW\RIWKHZRUNLQJDQGWKHIXOILOOPHQWRIREOLJDWLRQVRIWKHJDPLQJKRXVHWRZDUGV
WKHSDUWLFLSDQWVLQWKHJDPHV
KDVDVHSDUDWHDQGVDIHVSDFHZLWKDFDVKIRUNHHSLQJPRQH\DQGRWKHUYDOXHVDQGIRU
FDUU\LQJRXWH[FKDQJHDFWLYLWLHV
KDVDURRPZKRVHFDSDFLW\FDQQRWEHOHVVWKDQP H[FHSWLQDVSHFLDOO\
HTXLSSHGURRPLQDKRWHOZLWK³ILYH´RU³IRXU´VWDUVZKLFKFDQQRWEHOHVVWKDQP
7RKDYHDWOHDVWWDEOHVIRUGLIIHUHQWNLQGVRIJDPHVZLWKEDOOVGLFHVRUFDUGVDQG
DWOHDVWVORWPDFKLQHV
7RKDYHDSURIHVVLRQDOVWDIIIRUFDUU\LQJRXWWKHJDPHVWKDWLVWRHQJDJHPDQDJHUV
ZKRDUHSURIHVVLRQDOO\VNLOOHGDQGZKRKDYHQRWEHHQSXQLVKHGDQGVHQWHQFHGIRU
FULPLQDOGHHGVFRQQHFWHGZLWKWKHJDPHVRIFKDQFHRUWKHHQWHUWDLQPHQWJDPHV
KDVRUJDQL]HGDUHFHSWLRQVHUYLFHVRWKDWDVXSHUYLVLRQRIWKHSHUVRQVZKRFRPHLQWKH
JDPLQJKRXVHZLOOEHJXDUDQWHHG
KDVRUJDQL]HGDQDSSURSULDWHVXSHUYLVLRQIRUFDUU\LQJRXWWKHJDPHV
NHHSVDVSHFLILFUHFRUGRIWKHYLVLWRUVRIWKHJDPLQJKRXVHZKLFKFRQWDLQVWKHEDVLF
GDWDIRULGHQWLILFDWLRQRIWKHSHUVRQV¶
WKHUHDUHUXOHVIRUDOONLQGVRIJDPHVDFFHVVLEOHWRDOOSDUWLFLSDQWVLQWKHJDPHV
WKHUHLVDERRNRIUXOHVRIWKHJDPLQJKRXVH
7KHDVVHWVWKDWIRUPWKH UHVHUYHIXQG DUHGHSRVLWHGLQVXFKDZD\DQGXQGHUFRQGLWLRQV
WKDWDUHUHJXODWHGE\WKH0LQLVWHURI)LQDQFH
7KHWRWDOQXPEHURIWKHOLFHQVHVWKDWFDQEHLVVXHGIRURUJDQL]DWLRQRIDJDPLQJKRXVHLV
ILYH
,IWKHOLFHQVHVIURPSDUDJUDSKRIWKLV$UWLFOHDUHLVVXHGWKHOLPLWDWLRQGRHVQRWWDNHLQWR
FRQVLGHUDWLRQWKHLVVXLQJRIDOLFHQVHIRURUJDQL]LQJDJDPLQJKRXVHLQDKRWHOZLWK³ILYH´
VWDUVXQGHUFRQGLWLRQVGHWHUPLQHGZLWKWKLV/DZ
$UWLFOH
,QWKHJDPLQJKRXVHRQO\WKRVHJDPHVRIFKDQFHFDQEHRUJDQL]HGWKDWDUHOLVWHGLQWKH
OLFHQVHIRURUJDQL]DWLRQDJDPLQJKRXVH
%HIRUH WKH OLFHQVH IRU RUJDQL]DWLRQ RI D JDPLQJ KRXVH LV LVVXHG WKH RSLQLRQ RI WKH
0LQLVWU\RI,QWHUQDO$IIDLUVKDVWREHREWDLQHG
:LWKWKHUHTXHVWIRUDOLFHQVHIRURUJDQL]LQJDJDPLQJKRXVHWKHUHPXVWEHHQFORVHG
HYLGHQFHWKDWWKHUHJXODWHGFRQGLWLRQVDUHIXOILOOHGWKHUXOHVRIWKHJDPHVRIFKDQFHWKDW
ZLOO EH RUJDQL]HG WKH UXOH ERRN RI WKH JDPLQJ KRXVH WKH KHLJKW DQG WKH ZD\ RI WKH
SURYLGHGDVVHWVIRUJXDUDQWHHLQJWKHSD\PHQWRIWKH JDLQVDV ZHOODVWKHDEVWUDFWIURP
WKHHQWU\RIWKHRUJDQL]HURIJDPHVRIFKDQFHDQGLWVHVWDEOLVKHUVLQWKHWUDGHUHJLVWU\
$UWLFOH
$IRUHLJQOHJDORUDSK\VLFDOSHUVRQXQGHUWKHFRQGLWLRQVGHWHUPLQHGZLWKWKLV/DZFDQ
RUJDQL]HDJDPLQJKRXVHLQGHSHQGHQWO\LQKLVRZQKRWHOWKURXJKWKHIRUPVRILQYHVWLQJ
LQ GRPHVWLF OHJDO SHUVRQV DQG RWKHU IRUPV RI FRRSHUDWLRQ DQG FROODERUDWLRQ LI WKH
LQYHVWPHQWLVKLJKHUWKDQIURPWKHEDVLFSULQFLSOHGHWHUPLQHGZLWKWKLV/DZIRUWKH
FRPSDQLHVWKDWFDQRUJDQL]HDJDPLQJKRXVH
$UWLFOH
9LVLWLQJRIWKHJDPLQJKRXVHLVSHUPLWWHGRQO\WRDGXOWV3HUVRQVLQXQLIRUPDUHDOORZHG
WRHQWHURQO\LIWKH\DUHFDOOHGE\DQDXWKRUL]HGSHUVRQIURPWKHJDPLQJKRXVHLQRUGHUWR
FDUU\RXWWKHLUUHVSRQVLELOLW\
7KHDFFHVVRIWKHYLVLWRUVWRWKHJDPLQJKRXVHFDQEHDOORZHGE\SD\LQJDWLFNHW
$UWLFOH
7KH RUJDQL]HU RI WKH JDPHV RI FKDQFH LQ WKH JDPLQJ KRXVH LV REOLJHG WR VXEPLW D UXOH
ERRNRIWKHJDPLQJKRXVHZKLFKLVDFFHVVLEOHWRWKHYLVLWRUVLQDQDSSURSULDWHZD\RQD
QRWLFHERDUG
7KHUXOHERRNSDUWLFXODUO\FRQWDLQV
RUJDQL]DWLRQRIWKHZRUNRIWKHJDPLQJKRXVHZLWKDGLVWULEXWLRQRIWKHZRUNLQJ
URRPVLQWKHJDPLQJKRXVH
WKHNLQGVRIWKHVSHFLILFJDPHVRIFKDQFHWKDWDUHRUJDQL]HGLQWKHJDPLQJKRXVH
FRQGLWLRQVIRUHQWHULQJWKHJDPLQJKRXVHDQHYLGHQFHIRUWKHLGHQWLW\DQGFRQWURORI
WKHYLVLWRUV
FRQGLWLRQVXQGHUZKLFKLWFDQEHIRUELGGHQIRUFHUWDLQSDUWLFLSDQWVWRWDNHSDUWLQWKH
JDPHVRIFKDQFH
DWLPHIRUSOD\LQJ
ZRUNVDQGWDVNVRIWKHHPSOR\HGLQWKHJDPLQJKRXVHFRQQHFWHGZLWKWKHFDUU\LQJ
RXWRIWKHJDPHVRIFKDQFH
$UWLFOH
$W OHDVW WKUHH TXDUWHUV IURP WKH HPSOR\HG LQ WKH JDPLQJ KRXVH PXVW EH FLWL]HQV RI WKH
5HSXEOLFRI0DFHGRQLD
,WLVIRUELGGHQWKDWWKHHPSOR\HGLQWKHJDPLQJKRXVHDUHWDNHSDUWLQWKHJDPHVWKDWDUH
SOD\HG LQ WKH JDPLQJ KRXVH RU WR UHFHLYH IURP WKH SDUWLFLSDQWV WKH SOD\HUV LQWHQGHG
REMHFWV RI DQ\ NLQG +RZHYHU LW LV DOORZHG WKDW WKH SDUWLFLSDQWV WKH SOD\HUVGHSRVLW
LQWHQGHGREMHFWVZKLFKDUHLQWHQGHGIRUDOOWKHHPSOR\HGRIWKHXVHURIWKHOLFHQVHRQD
VSHFLILHGSODFHLQWKHJDPLQJKRXVHKDOOGHWHUPLQHGIRUWKLVDLPWLSV
$UWLFOH
7KHXVHURIWKHOLFHQVHLVREOLJHGWRLQIRUPWKH0LQLVWU\RI)LQDQFHDERXWHDFKFKDQJHRI
WKH LGHQWLW\ RI WKH SHUVRQV ZKR DUH RZQHUV RI WKH VWRFNV WKDW LV WKH VKDUHV LQ WKH EDVLF
SULQFLSOHRIWKHFRPSDQ\
6/270$&+,1(6
$UWLFOH
7KHVORWPDFKLQHVDUHPDFKLQHVRQZKLFKWKHSDUWLFLSDQWLQWKHJDPHFDQPDNHDJDLQE\
SXWWLQJ WKHP LQWR RSHUDWLRQ ZLWK FKLSV V\VWHPV NH\V RU VRPH RWKHU ZD\ ZLWK
FRPELQDWLRQVDQGVLJQVFOHDUO\YLVLEOHRQWKHFRPELQDWLRQF\OLQGHUVJDLQLQJOLQH
$UWLFOH
,QWKHVORWPDFKLQHVWKHUHPXVWKDYHLQWHJUDWHGILYHVL[FLSKHUFRXQWHUVZKLFKUHJLVWHUWKH
IROORZLQJQXPEHUVWKHQXPEHURIHQWHUHGFKLSVRUFUHGLWVRIWKHPDFKLQHVWKHQXPEHURI
WKHJDPHVSOD\HGRQWKHPDFKLQHWKHQXPEHURIWKHSDLGFRLQVRUFKLSVLQWKHFDVKER[
DQGWKHQXPEHURIKDQGSDLGFKLSV
$UWLFOH
:KHQWKHVORWPDFKLQHVDUHLQWKHJDPLQJKRXVHVFDVLQRVWKHSD\PHQWFDQEHGRQH
SD\PHQW IRU SDUWLFLSDWLRQ LQ WKH JDPHV DQG SD\PHQW RI WKH JDLQLQJ LQ D GRPHVWLF
FXUUHQF\RULQDIRUHLJQFXUUHQF\
$UWLFOH
0DFKLQH±FOXELVDVSHFLDOO\GHFRUDWHGURRPLQDKRWHOZLWK³ILYH´RU³IRXU´VWDUVRULQD
VSHFLDOO\PDGHURRPLQZKLFKRQO\JDPHVRQVORWPDFKLQHVDUHRUJDQL]HG
$UWLFOH
$PDFKLQHFOXEFDQEHRUJDQL]HGLQDURRPZKLFKLVDWOHDVWP ELJDQGZLWKDWOHDVW
PDFKLQHV
,QWKHPDFKLQHFOXEFDWHULQJVHUYLFHVIRUIRRGH[FOXVLYHO\FROGPHDOVDQGGULQNVZKLFK
DUHVHUYHGE\ D VWDQG RU D EDU DQG D VHSDUDWH SURWHFWHG VSDFH ZLWK D FDVK IRU NHHSLQJ
PRQH\DQGRWKHUVHFXULWLHVFDQEHSURYLGHG
$UWLFOH
$IRUHLJQOHJDORUDSK\VLFDOSHUVRQFDQRUJDQL]HLQGHSHQGHQWO\DPDFKLQHFOXERQO\LQ
LWVRZQKRWHOZLWK³ILYH´RU³IRXU´VWDUV
$UWLFOH
%HIRUHWKHOLFHQVHIRURUJDQL]DWLRQRIDPDFKLQHFOXELVEHLQJLVVXHGDQRSLQLRQIURPWKH
0LQLVWU\RI,QWHUQDO$IIDLUVKDVWREHREWDLQHG
7RJHWKHU ZLWK WKH UHTXHVW IRU D OLFHQVH IRU RUJDQL]LQJ PDFKLQH FOXEV SURYHV WKDW WKH
UHJXODWHG FRQGLWLRQV DQG WKH UXOHV IRU WKH JDPHV RI FKDQFH WKDW ZLOO EH RUJDQL]HG DUH
IXOILOOHG DV ZHOO DV DQ DEVWUDFW IURP WKH HQWU\ RI WKH RUJDQL]HU RI WKH JDPH DQG LWV
HVWDEOLVKHUVLQWKHWUDGHUHJLVWHUPXVWEHHQFORVHG
$UWLFOH
7KHFRQGLWLRQVIRUYLVLWLQJDPDFKLQHFOXEDUHGHWHUPLQHGE\WKHXVHURIWKHOLFHQVH
3HUVRQV\RXQJHUWKDQDUHQRWDOORZHGWKHDFFHVVLQWKHPDFKLQHFOXEV
$UWLFOH
7KHVORWPDFKLQHVPXVWSURYLGHDJDLQIRUWKHSDUWLFLSDQWVLQWKHJDPHZKLFKLVQRWORZHU
WKDQIURPWKHDJJUHJDWHVWDNHUHJLVWHUHGLQWKHPDFKLQH
$UWLFOH
7KHHPSOR\HGLQWKHPDFKLQHFOXEDUHQRWDOORZHGWRSDUWLFLSDWHLQWKHJDPH
9(17(57$,10(17*$0(6
$UWLFOH
*DPHV RI FKDQFH FDQ EH RUJDQL]HG LQ D VSHFLDOO\ GHFRUDWHG HQWHUWDLQPHQW FOXEV
HQWHUWDLQPHQWFOXEVZKLFKDUHRUJDQL]HGDVPRYLQJREMHFWVDVZHOODVFDWHULQJREMHFWV
$UWLFOH
(QWHUWDLQPHQWJDPHVFDQEHRUJDQL]HGE\DGRPHVWLFOHJDORUSK\VLFDOSHUVRQ
$ IRUHLJQ OHJDO RU SK\VLFDO SHUVRQ FDQQRW RUJDQL]H HQWHUWDLQPHQW JDPHV QRU
LQGHSHQGHQWO\QHLWKHUWKURXJKIRUPVIRULQYHVWPHQWLQGRPHVWLFOHJDOHQWLWLHVDQGRWKHU
IRUPVRIFRRSHUDWLRQDQGFRRSHUDWLYHZRUNLQJ
$UWLFOH
$Q HQWHUWDLQPHQW FOXE FDQ EH RUJDQL]HG LQ VHSDUDWH URRPV ZKLFK DUH QRW VPDOOHU WKDQ
PXQOHVVWKH\DUHRUJDQL]HGDVDPRYLQJREMHFW
7KH HQWHUWDLQPHQW FOXE PXVW FRQVLVW RI DW OHDVW ILYH HQWHUWDLQPHQW PDFKLQHV YLGHR
JDPHVSLQEDOOPDFKLQHVGDUWWDEOHIRRWEDOOHWF
,IWKHHQWHUWDLQPHQWFOXELVRUJDQL]HGDVDELOOLDUGVFOXEWKHQDURRPRIP PXVWEH
SURYLGHGIRUDELOOLDUGVWDEOH
,Q WKH HQWHUWDLQPHQW FOXEV RUJDQL]HG DV PRYLQJ REMHFWV PD[LPXP WHQ HQWHUWDLQPHQW
PDFKLQHVFDQEHSODFHG
,QFDWHULQJREMHFWVZLWKDVSDFHRIPSODFLQJRIHQWHUWDLQPHQWPDFKLQHVLVIRUELGGHQ
ZKLOHLQWKHREMHFWVRYHUP XSWRILYHPDFKLQHVIRUHQWHUWDLQPHQWFDQEHSODFHG
$UWLFOH
7KHRUJDQL]DWLRQRIJDPHVRQVORWPDFKLQHVLQDQHQWHUWDLQPHQWFOXELVSURKLELWHG
$UWLFOH
7KH DSSURYDO IRU RUJDQL]LQJ DQ HQWHUWDLQPHQW FOXE DQG IRU SODFLQJ HQWHUWDLQPHQW
PDFKLQHVLQFDWHULQJREMHFWVLVLVVXHGE\WKH0LQLVWHURI)LQDQFHDFFRUGLQJWRDSUHYLRXV
RSLQLRQRIWKH0LQLVWU\RI(FRQRP\
:LWK WKH UHTXHVW IRU DQ DSSURYDO IRU RUJDQL]LQJ DQ HQWHUWDLQPHQW FOXE WKDW LV SODFLQJ
HQWHUWDLQPHQW PDFKLQHV LQ D FDWHULQJ REMHFW SURYHV WKDW WKH UHJXODWHG FRQGLWLRQV DUH
IXOILOOHGLQVWUXFWLRQVIRUWKHZD\RISXWWLQJWKHPDFKLQHLQHIIHFWDQGDGHVFULSWLRQRIWKH
JDPHWKHNLQGDQGWKHQXPEHURIWKHPDFKLQHVWKDWLVWKHLQVWUXPHQWVIRUHQWHUWDLQPHQW
WKHSODFHZKHUHWKHPDFKLQHV DUHSXWWKDWLVWKHFDWHULQJREMHFWLIWKH\DUHSODFHG LQ D
FDWHULQJREMHFWDQGGDWDDERXWWKHRUJDQL]HURIWKHHQWHUWDLQPHQWJDPHVPXVWEHHQFORVHG
$Q DSSHDO FDQ EH VXEPLWWHG WR WKH *RYHUQPHQW RI 5HSXEOLF RI 0DFHGRQLD DJDLQVW WKH
GHFLVLRQZKLFKUHMHFWVWKHUHTXHVWIRUJHWWLQJDQDSSURYDO
$UWLFOH
(DFKUHSODFHPHQWRIWKHHQWHUWDLQPHQWPDFKLQHVLQDQRWKHUORFDWLRQLVVXEMHFWHGWRDQHZ
DSSURYDO
9,7+($55$1*(0(177+(%(*,11,1*$1'7+((1'2)7+(:25.,1*
7,0( )25 7+( 25*$1,=$7,21 2) *$0(6 2) &+$1&( $1'
(17(57$,10(17*$0(6210$&+,1(6
$UWLFOH
7KH RUJDQL]HUV RI WKH JDPHV RI FKDQFH DQG HQWHUWDLQPHQW JDPHV FDQ ZRUN RQ HYHU\
ZRUNLQJGD\6XQGD\DQGKROLGD\
$UWLFOH
7KHDUUDQJHPHQWWKHEHJLQQLQJ DQGWKHHQGRIWKHZRUNLQJWLPHLI WKH RUJDQL]DWLRQ RI
WKHJDPHVRIFKDQFHLVFDUULHGRXWLQDFDWHULQJREMHFWLVFDUULHGRXWZLWKLQWKHZRUNLQJ
WLPHRIWKHDSSURSULDWHREMHFW
7KHRUJDQL]DWLRQRIVHSDUDWH JDPHV RI FKDQFH LQ D JDPLQJ KRXVH RU D PDFKLQH FOXE LQ
URRPVVSHFLDOO\GHFRUDWHGIRUWKDWSXUSRVHFDQEHFDUULHGRXWIURPWRR¶FORFN
2UJDQL]DWLRQRIWKHJDPHVRIFKDQFHJHQHUDOZKHQLWLVFDUULHGRXWLQRWKHUREMHFWVFDQ
EHGRQHIURPWRR¶FORFNZKLOHRQ)ULGD\6DWXUGD\DQGKROLGD\VIURPWR
R¶FORFN
$UWLFOH
7KH REMHFWV LQ ZKLFK WKHUH DUH HQWHUWDLQPHQW PDFKLQHV FDQ ZRUN IURP WR R¶FORFNDQGLQVXPPHUWRR¶FORFN
$UWLFOH
7KH RUJDQL]HUV RI WKH JDPHV RI FKDQFH DQG WKH HQWHUWDLQPHQW JDPHV GHWHUPLQH WKH
ZRUNLQJWLPHE\WKHPVHOYHVDFFRUGLQJWRWKHUHJXODWLRQVRIWKLV/DZ
7KHZRUNLQJWLPHLVLQGLFDWHGFOHDUO\DWWKHHQWUDQFHRIWKHREMHFWE\WKHRUJDQL]HURIWKH
JDPHVRIFKDQFH
9,, &21',7,216 $1' :$< 2) 3877,1* 7+( 6/27 0$&+,1(6 $1' 7+(
(17(57$,10(170$&+,1(6,17223(5$7,21
$UWLFOH
7KHVORWPDFKLQHVDQGWKHHQWHUWDLQPHQWPDFKLQHVPXVWEHWHFKQLFDOO\IXQFWLRQDO
7KH GHWHUPLQDWLRQ RI WKH WHFKQLFDO IXQFWLRQLQJ DQG WKH UHSDUDWLRQ RI WKH VORW PDFKLQHV
DQG WKH HQWHUWDLQPHQW PDFKLQHV LV FDUULHG RXW E\ SHUVRQV DXWKRUL]HG E\ WKH 0LQLVWHU RI
)LQDQFH
7KH DXWKRUL]DWLRQV IURP SDUDJUDSK RI WKLV $UWLFOH FDQ EH JLYHQ RQO\ WR WKRVH OHJDO
SHUVRQV ZKR GR QRW RUJDQL]H JDPHV RI FKDQFH DQG HQWHUWDLQPHQW JDPHV RU ZKR GR QRW
UHQWVORWPDFKLQHVDQGHQWHUWDLQPHQWPDFKLQHV
$UWLFOH
7KH DXWKRUL]HG OHJDO SHUVRQ LVVXHV D FHUWLILFDWH IRU WKH SURSHU IXQFWLRQLQJ RI WKH VORW
PDFKLQHLHWKHHQWHUWDLQPHQWPDFKLQH
7KHZD\WKHFRQGLWLRQVDQGWKHGHDGOLQHVIRUGHWHUPLQLQJWKHWHFKQLFDOIXQFWLRQLQJRI
WKHVORWPDFKLQHVDQGWKHPDFKLQHVIRUJDPHVRIFKDQFHDQGWKHIRUPRIWKHGRFXPHQW
ZLWK ZKLFK WKH WHFKQLFDO SURSHU IXQFWLRQLQJ RI WKH VORW PDFKLQHV DQG WKH HQWHUWDLQPHQW
PDFKLQHVLVFRQILUPHGDUHUHJXODWHGE\WKH0LQLVWHURI)LQDQFH
$UWLFOH
7KH VORW PDFKLQHV DQG HQWHUWDLQPHQW PDFKLQHV ZKLFK DUH WHFKQLFDOO\ IXQFWLRQDO DUH
REOLJDWRULO\VWDPSHG
7KH0LQLVWHURI)LQDQFHGHWHUPLQHVPRUHFOHDUO\WKHNLQGDQGWKHIRUPRIWKHVWDPS
$UWLFOH
7KH VORW PDFKLQHV IRU JDPHV RI FKDQFH DQG HQWHUWDLQPHQW JDPHV ZKLFK DUH WHFKQLFDOO\
IXQFWLRQDO DQG KDYH D VWDPS FDQ EH SXW LQ RSHUDWLRQ LI WKH\ KDYH D PDUNLQJ DQG
UHJLVWUDWLRQSODWH
7KHWDEOHVIRUJDPHVZLWKEDOOVGLFHVRUFDUGVZKLFKDUHLQXVHDOVRKDYHPDUNLQJDQG
UHJLVWUDWLRQSODWHV
5HFRUGDQGUHJLVWHUIRUWKHLVVXHGPDUNLQJDQGUHJLVWUDWLRQSODWHVDUHFDUULHGRXWE\WKH
0LQLVWU\ RI )LQDQFH 7KH 0LQLVWHU RI )LQDQFH UHJXODWHV WKH ZD\ RI FDUU\LQJ RXW WKH
UHFRUGUHJLVWHUDQGWKHIRUPDQGFRQWHQWRIWKHSODWH
9,,, *$,1,1* )81' $1' '(7(50,1,1* $1' 5($/,=$7,21 2) 7+( *$,1
,17+(*(1(5$/*$0(62)&+$1&(
$UWLFOH
7KHJDLQLQJIXQGLQWKHJDPHVRIFKDQFHLVGHWHUPLQHGE\WKHSULQFLSOHZKLFKIRUORWWHU\
DQGLQVWDQWORWWHU\LVFRQVLVWHGRIWKHDJJUHJDWHDPRXQWRIWKHLVVXLQJRIWKHWLFNHWVZKLOH
IRUWRPERODORWWRVSRUWVSURJQRVLVDQGEHWRQVSRUWVFRPSHWLWLRQVWKHDJJUHJDWHDPRXQW
RIWKHSD\PHQWIRUSDUWLFLSDWLRQLQWKHJDPH
7KH JDLQLQJ IXQG IRU FHUWDLQ JDPHV RI FKDQFH PXVW EH DW OHDVW IURP WKH SULQFLSOH
IURPSDUDJUDSKRIWKLV$UWLFOH
$UWLFOH
7KHGHWHUPLQLQJRIWKHUHVXOWVRIWKHJDPHVRIFKDQFHDQGWKHGHWHUPLQLQJRIWKHJDLQV
H[FHSWIRUWKHVSHFLILFJDPHVRIFKDQFHLVGRQHSXEOLFO\ZLWKDVSHFLDO&RPPLVVLRQRI
WKUHHPHPEHUVGHWHUPLQHGE\DQDXWKRUL]HGERG\RIWKHRUJDQL]HURIWKHJDPH
)RU GHWHUPLQDWLRQ RI WKH UHVXOWV DQG WKH JDLQV D UHJLVWHU LV FRPSRVHG VLJQHG E\ DOO
PHPEHUV RI WKH &RPPLVVLRQ ,Q WKH UHJLVWHU WKH QDPH WKH SODFH DQG WKH FRXUVH RI WKH
SURFHVV RI GUDZLQJ DUH HQWHUHG DV ZHOO DV WKH NLQG WKH QXPEHU DQG WKH YDOXH RI WKH
JDLQV7KHRUJDQL]HULVREOLJHGWRVXEPLWRQHFRS\RIWKHVHDOHGUHJLVWHUWRWKHERG\WKDW
KDVLVVXHGWKHOLFHQVHWKDWLVWKHDSSURYDOIRURUJDQL]LQJJDPHVRIFKDQFH
$UWLFOH
7KHRUJDQL]HULVREOLJHGWRDQQRXQFHWKHUHSRUWIRUGHWHUPLQLQJWKHUHVXOWVDQGWKHJDLQV
IURP WKH JDPH RI FKDQFH LPPHGLDWHO\ ODWHVW XS WR VHYHQ GD\V IURP WKH GD\ RI WKH
GUDZLQJRIWKHJDLQVWKDWLVWKHGD\RIGHWHUPLQLQJWKHUHVXOWVRIWKHJDPHWKURXJKWKH
PHDQVIRUSXEOLFLQIRUPLQJ
$UWLFOH
7KHSD\PHQWWKHUDLVLQJWKDWLVWKHUHDOL]DWLRQRIWKH JDLQVLVGRQHZLWKLQWKHGHDGOLQH
GHWHUPLQHG E\ WKH UXOHV RI WKH JDPHV RI FKDQFH ZKLFK FDQQRW EH ORQJHU WKDQ GD\V
IURP WKH GD\ RI DQQRXQFHPHQW RI WKH UHSRUW IRU WKH UHVXOWV DQG IRU WKH JDLQV IURP WKH
JDPH
$IWHU WKH GHDGOLQH IURP SDUDJUDSK IURP WKLV $UWLFOH LV SDVVHG WKH ULJKW IRU SD\PHQW
WKDWLVWKHULJKWIRUUHDOL]DWLRQRIWKHJDLQH[SLUHV
7KHXQSDLGJDLQVIURPSDUDJUDSKRIWKLV$UWLFOHDUHUHYHQXHRIWKH%XGJHWRI5HSXEOLF
RI0DFHGRQLDDQGZLOOEHGLVWULEXWHGLQDFFRUGDQFHZLWK$UWLFOHRIWKLV/DZ
7KHKROGHURIWKHGRFXPHQWIRUWKHSDLGDPRXQWIRUSDUWLFLSDWLRQLQWKHJDPHKDVDULJKW
ZLWKLQ WKH GHDGOLQH GHWHUPLQHG E\ WKH UXOHV RI WKH JDPH WR VXEPLW DQ REMHFWLRQ WR WKH
RUJDQL]HURIWKHJDPHWRUHFRJQL]HWKHULJKWIRUWKHJDLQ,IWKHREMHFWLRQLVUHMHFWHGWKH
KROGHURIWKHULJKWVFDQZLWKLQGD\VIURPWKHGD\RIWKHUHFHLYLQJWKHDQQRXQFHPHQW
IRUUHMHFWLRQRIWKHRIIHUZLWKDFKDUJHWRWKHDXWKRUL]HGFRXUWUHTXHVWDUHFRJQLWLRQRI
WKHULJKWIRUWKHJDLQ
,;63(&,$/$//2:$1&(6
$UWLFOH
7KH KROGHUV WKDW LV WKH XVHUV RI WKH VORW PDFKLQHV DQG WKH HQWHUWDLQPHQW PDFKLQHV LQ
RUGHU WR GHWHUPLQH WKHLU WHFKQLFDO IXQFWLRQLQJ SD\ WKH DXWKRUL]HG H[HFXWRU RI WKH
WHFKQLFDOFKHFNDQDOORZDQFHDFFRUGLQJWRWKHH[HFXWRU¶VSULFHOLVWZKLFKZDVDSSURYHG
E\WKH0LQLVWU\RI)LQDQFH
$UWLFOH
7KH KROGHUV WKDW LV WKH XVHUV RI WKH VORW PDFKLQHV DQG WKH HQWHUWDLQPHQW PDFKLQHV IRU
VWDPSLQJWKHVORWPDFKLQHWKDWLVWKHHQWHUWDLQPHQWPDFKLQHSD\WKHDXWKRUL]HGH[HFXWRU
DQDOORZDQFHDFFRUGLQJWRWKHPDUNHWSULFHRIWKHVHUYLFH
$UWLFOH
7KHRUJDQL]HUVRIVSHFLILFJDPHVRIFKDQFHDQGRIHQWHUWDLQPHQWJDPHVSD\DQDOORZDQFH
LQDPRQWKO\VXP
7KH PRQWKO\ OXPS VXP LQ VRPH NLQGV RI JDPHV ZKLFK DUH RUJDQL]HG RQ D WDEOH VORW
PDFKLQHVDQGHQWHUWDLQPHQWPDFKLQHVZLOOEH
IRUDWDEOHLQDJDPLQJKRXVH'0
IRUDVORWPDFKLQH'0
IRUDPDFKLQHIRUHQWHUWDLQPHQWJDPHV'0
7KHSDLGDPRXQWVDUHUHFRJQL]HGDVH[SHQGLWXUH
$UWLFOH
7KH REOLJDWLRQ IURP $UWLFOH SDUDJUDSK RI WKLV /DZ LV SDLG RQ WKH ILIWHHQWK RI WKH
FXUUHQWPRQWKIRUWKHSUHYLRXVPRQWK
$SURYHIRUWKHSD\PHQWIURPSDUDJUDSKRIWKLV$UWLFOHLVVXEPLWWHGWRWKH0LQLVWU\RI
)LQDQFHXSWRWKUHHGD\VIURPWKHGD\RIWKHSD\PHQW
$UWLFOH
7KHRUJDQL]HUVRIWKHJDPHVRIFKDQFHLQWKHPDFKLQHFOXEVDUHREOLJHGWRVXEPLWWRWKH
0LQLVWU\RI)LQDQFHPRQWKO\UHSRUWVIRUZRUNLQJXSWRWKHILIWHHQWKRIWKHFXUUHQWPRQWK
IRUWKHSUHYLRXVPRQWK
7KH0LQLVWHURI)LQDQFHUHJXODWHVWKHFRQWHQWRIWKHUHSRUW
;6(&5(&<2)7+(*$0(6
$UWLFOH
7KH RUJDQL]HUV RI WKH JDPHV RI FKDQFH WKH VKDUH KROGHUV WKDW LV WKH DVVRFLDWHV WKH
HPSOR\HGFRQWUDFWXDOSDUWQHUVDVZHOODVRWKHUSHUVRQVZKRZRUNIRUWKHRUJDQL]HUPXVW
NHHSWKHVHFUHWIRUWKHSDUWLFLSDQWVDQGWKHLUSDUWLFLSDWLRQLQWKHJDPHJDLQRUORVW,IWKH
0DQDJLQJ %RDUG %RGLHV ZKLOH FDUU\LQJ RXW RI RIILFLDO DFWLYLW\ ILQG RXW IDFWV WKDW DUH
VXEMHFWHGWRVHFUHF\LQYLHZWRWKH JDPHKDYHWRWUHDWWKLVVHFUHF\ DVDQRIILFLDOVHFUHW
IURPZKLFKWKH\DUHUHOHDVHGRQO\LQWKHFDVHVGHWHUPLQHGZLWKWKLV/DZ
$QREOLJDWLRQIRUNHHSLQJWKHVHFUHWGRHVQRWH[LVW
GXULQJWKHSURFHVVIRUFLYLORUFULPLQDOVXEMHFWV
GXULQJWKHSURFHVVIRULQKHULWDQFHDQGOHJDOFXVWRG\
LIWKHSDUWLFLSDQWLQWKHJDPHH[SOLFLWO\DJUHHVWRUHYHDOWKHVHFUHW
;,6859(,//$1&($1'&21752/
$UWLFOH
6XUYHLOODQFHRYHUWKHLPSOHPHQWDWLRQRIWKHUHJXODWLRQVRIWKLVODZLVFDUULHGRXWE\
WKH0LQLVWU\RI)LQDQFH
$UWLFOH
7KHVXUYHLOODQFHDQGFRQWUROGXULQJWKHRUJDQL]DWLRQRIWKHJDPHVRIFKDQFHDUH
FDUULHGRXWE\WKHDXWKRUL]HGFOHUNVRIWKH0LQLVWU\RI)LQDQFHLQVSHFWRUV
'XULQJWKHLPSOHPHQWDWLRQRIWKHPRQLWRULQJDQGFRQWUROWKHLQVSHFWRUGRHVWKH
IROORZLQJWKLQJV
FRQWURORIWKHRUJDQL]DWLRQRIWKHJDPHVRIFKDQFHZKHWKHUWKHJDPHVRIFKDQFHDUH
FDUULHGRXWLQDFFRUGDQFHZLWKWKHOLFHQVHWKDWLVWKHDSSURYDO DQGWKHUXOHVRIWKH
JDPHVRIFKDQFH
WKHH[LVWHQFHRIWKHUXOHVGHWHUPLQHGZLWKWKLV/DZIRURUJDQL]LQJWKHJDPHVRI
FKDQFHDQGWKHHQWHUWDLQPHQWJDPHV
FRQWURORYHUWKHEXVLQHVVOLNHDQGWKHRWKHUURRPVLQZKLFKWKHJDPHVRIFKDQFHDQG
WKHHQWHUWDLQPHQWJDPHVDUHRUJDQL]HG
FRQWURORIWKHVORWPDFKLQHVHQWHUWDLQPHQWJDPHVLQUHJDUGWRWKHLUQXPEHU
WHFKQLFDOIXQFWLRQLQJDQGWKHVWDPSDQGFKHFNRIWKHSODWHVIRUPDUNLQJRIWKHVORW
PDFKLQHVPDFKLQHVIRUHQWHUWDLQPHQWJDPHVDQGWKHWDEOHVRQZKLFKWKHJDPHVRQ
FKDQFHDUHRUJDQL]HG
FRQWURORIWKHFRUUHFWQHVVLQWKHNHHSLQJRIWKHEXVLQHVVERRNVDQGWKHRWKHU
GRFXPHQWDWLRQFRQQHFWHGZLWKRUJDQL]LQJWKHJDPHVRIFKDQFHDQGWKH
HQWHUWDLQPHQWJDPHV
FRQWUROIRUSD\PHQWRIWKHWD[HVDQGRWKHUSD\PHQWVGHWHUPLQHGZLWKWKLVODZ
FRQWURORIWKHWRPERODFDUGVDQGWKHWLFNHWV
FDUULHVRXWRWKHUDFWLYLWLHVIRUFRQWUROOLQJWKHH[HFXWLRQRIWKHJDPHVRIFKDQFH
DQGRUJDQL]DWLRQRIWKHHQWHUWDLQPHQWJDPHVLQDFFRUGDQFHZLWKWKLV/DZ
$UWLFOH
&RQWLQXHGGD\WRGD\VXUYHLOODQFHDQGFRQWUROLVHVWDEOLVKHGLQWKHRUJDQL]DWLRQRIWKH
JDPHVRIFKDQFHLQWKHJDPLQJKRXVHV
7KH VXUYHLOODQFH DQG FRQWURO IURP SDUDJUDSK RI WKLV $UWLFOH DUH SHUIRUPHG E\ DQ
DXWKRULVHGFOHUN±LQVSHFWRUZKRLVDSSRLQWHGE\WKH0LQLVWHURI)LQDQFH
$UWLFOH
,I LOOHJDO PDWWHUV RU LUUHJXODULWLHV LQ WKH RUJDQLVDWLRQ RI WKH JDPHV RI FKDQFH RU WKH
HQWHUWDLQPHQW JDPHV DUH IRXQG GXULQJ WKH SURFHGXUH RI FRQWURO WKH LQVSHFWRU FDUULHV D
'HFLVLRQZLWKZKLFKWKHRUJDQLVHURIWKHJDPHVRIFKDQFHRUWKHHQWHUWDLQPHQWJDPHVLV
REOLJHGWRXQGHUWDNHDFWLRQVIRUHOLPLQDWLRQRIWKHIRXQGLOOHJDOPDWWHUVRULUUHJXODULWLHV
,IWKHRUJDQLVHURIWKHJDPHVRIFKDQFHRUWKHHQWHUWDLQPHQWJDPHVGRHVQRWHOLPLQDWHWKH
LOOHJDO PDWWHUV RU LUUHJXODULWLHV LQ WKH SHULRG GHWHUPLQHG LQ WKH 'HFLVLRQ IURP WKH
SDUDJUDSKRIWKLV$UWLFOHWKHLQVSHFWRUZLOOVXEPLWDUHSRUWWRWKH0LQLVWHURI)LQDQFH
ZKRFDQLQLWLDWHDSURFHGXUHIRUWDNLQJWKHOLFHQFHDZD\RUWKHSHUPLVVLRQIRURUJDQLVLQJ
WKHJDPHVRIFKDQFHDQGWKHHQWHUWDLQPHQWJDPHV
$UWLFOH
7KH LQVSHFWRU LQ FDVHV ZKHQ WKH RUJDQLVDWLRQ RI WKH JDPHV RI FKDQFH DQG WKH
HQWHUWDLQPHQWJDPHVLVSHUIRUPHGFRQWUDU\WRWKHLVVXHGOLFHQFHRUSHUPLVVLRQFRQWUDU\
WR UXOHV IRU JDPHV RI FKDQFH RU ILQGV WKDW WKH FRQGLWLRQV VXEVFULEHG LQ WKH ODZ IRU
RUJDQLVLQJWKHJDPHVRIFKDQFHDQGWKHHQWHUWDLQPHQWJDPHVKDYHFKDQJHGWHPSRUDULO\
SURKLELWV WKH RUJDQLVLQJ WKH JDPHV RI FKDQFH DQG WKH HQWHUWDLQPHQW JDPHV SHUIRUPV
FORVXUH RI WKH JDPLQJ KRXVH RU FORVXUH WKH URRPV ZKHUH WKH JDPHV RI FKDQFH DUH
SHUIRUPHGLHWKHHQWHUWDLQPHQWJDPHV
7KH LQVSHFWRU DOVR SURKLELWV WKH RUJDQLVDWLRQ RI JDPHV RI FKDQFH DQG HQWHUWDLQPHQW
JDPHV WKDW DUH RUJDQLVHG ZLWKRXW OLFHQFH RU DSSURYDO SHUIRUPV FORVXUH RI WKH JDPLQJ
KRXVHRUWKHURRPZKHUHWKHJDPHVRIFKDQFHLHHQWHUWDLQPHQWJDPHVDUHSHUIRUPHG
$UWLFOH
7KH0LQLVWHURI)LQDQFHLQWKHFDVHVIURPDUWLFOHSDUDJUDSKRIWKLV/DZVXEPLWVD
SURSRVDOWRWKH*RYHUQPHQWRIWKH5HSXEOLFRI0DFHGRQLDIRUWDNLQJWKHOLFHQFHDZD\RU
WDNLQJ WKH DSSURYDO IRU RUJDQLVLQJ WKH JDPHV RI FKDQFH DQG WKH HQWHUWDLQPHQW JDPHV
DZD\
:KHQ WKH RUJDQL]HU RI WKH JDPHV RI FKDQFH KDV QRW SDLG WKH FRPSHQVDWLRQ ZLWKLQ WKH
WHUPGHWHUPLQHGLQ$UWLFOHSDUDJUDSKWKH0LQLVWHURI)LQDQFHVVXEPLWVDSURSRVDOWR
WKH*RYHUQPHQWRI5HSXEOLFRI0DFHGRQLDIRUWKHOLFHQFHWREHWDNHQDZD\
$UWLFOH
,I GXULQJ WKH FRQWURO WKH LQVSHFWRU ILQGV WKDW WKHUH LV D JURXQGHG VXVSLFLRQ IRU DQ
LQIULQJHPHQW GHWHUPLQHG ZLWK WKLV /DZ KH LV REOLJHG WR VXEPLW DQ DSSHDO WR WKH
DXWKRULVHGERG\RUWKHDXWKRULVHGFRXUW
;,,3(1$/7<3529,6,216
$UWLFOH
$ WUDGH FRPSDQ\ DQG RWKHU OHJDO HQWLW\ ZLOO EH SXQLVKHG ZLWK SHQDOW\ IURP WR
'HQDUV
LILWRUJDQLVHVJDPLQJKRXVHLHRUJDQLVHVJDPHVRIFKDQFHGHWHUPLQHGZLWKWKLV/DZ
ZLWKRXWKDYLQJDOLFHQFHLHDSSURYDOIURPDQDXWKRULVHGERG\$UWLFOH
LILWHQGRUVHVWKHOLFHQFHLHDSSURYDOWRDQRWKHURUJDQLVHU$UWLFOHSDUDJUDSK
ZKLFKGRHVQRWFRPSO\ZLWKWKHFRQGLWLRQVSUHVFULEHGZLWKWKHOLFHQFHLHDSSURYDO
IRUWKHSHUPLWWHGJDPHRIFKDQFH$UWLFOHVDQG
ZKLFK RUJDQLVHV HQWHUWDLQPHQW JDPHV ZLWKRXW DSSURYDO IURP DQ DXWKRULVHG ERG\
$UWLFOH
ZKLFK RUJDQLVHV JDPHV RI FKDQFH RXW RI WKH JDPLQJ KRXVH WKDW DUH VXSSRVHG WR EH
RUJDQL]HGRQO\LQDJDPLQJKRXVH$UWLFOHSDUDJUDSKDQG
ZKLFK LPSOHPHQWV WKH JDPH RI FKDQFH HYHQ DIWHU WKH OLFHQFH LH DSSURYDO LV WDNHQ
DZD\$UWLFOHVDQG
7KHUHVSRQVLEOHSHUVRQIURPWKHWUDGHFRPSDQ\LHWKHOHJDOHQWLW\ZLOOEHSXQLVKHGIRU
LQIULQJHPHQWIURPSDUDJUDSKRIWKLVDUWLFOHZLWKSHQDOW\IURPWR'HQDUV
:LWKUHVSHFWWRWKHLQIULQJHPHQWIURPSDUDJUDSKRIWKLVDUWLFOHDVHFXULW\PHDVXUHIRU
FRQILVFDWLQJWKHVORWPDFKLQHVDQGWKHHQWHUWDLQPHQWJDPHVZLOOEHXWWHUHG
$UWLFOH
$ WUDGH FRPSDQ\ DQG RWKHU OHJDO HQWLW\ ZLOO EH SXQLVKHG ZLWK SHQDOW\ IURP WR
'HQDUVVDODULHVLI
'RHVQRWNHHSDFDVKERRNLQDZD\WKDWHQDEOHVDQLQVLGHLQWKHGDLO\VLWXDWLRQRIWKH
UHYHQXHVRIWKHVSHFLILFJDPHVRIFKDQFH$UWLFOH
2UJDQL]HV JDPHV RI FKDQFH LQ D JDPLQJ KRXVH RU D PDFKLQH FOXE ZLWK D SD\PHQW
FRQWUDU\WRWKHSURYLVLRQVRIWKLV/DZ$UWLFOHDQG
2UJDQL]HV JDPHV RQ D VORW PDFKLQH RQ ZKLFK D JDLQ DERYH WKH DPRXQW GHWHUPLQHG
ZLWKWKLV/DZFDQEHUHDOL]HG$UWLFOH
GRHVQRWSD\WKHXQVHWWOHGJDLQVLQWKH%XGJHWRI5HSXEOLFRI0DFHGRQLD$UWLFOH
7KH UHVSRQVLEOH SHUVRQ LQ D WUDGH FRPSDQ\ RU RWKHU OHJDO SHUVRQ ZLOO EH SXQLVKHG IRU
LQIULQJHPHQWRISDUDJUDSKRIWKLV$UWLFOHZLWKDSHQDOW\RIWR'HQDUV
$UWLFOH
$ WUDGH FRPSDQ\ DQG RWKHU OHJDO HQWLW\ ZLOO EH SXQLVKHG ZLWK SHQDOW\ IURP WR
'HQDUVLI
3XWV LQ FLUFXODWLRQ FRQWUDU\ RI WKH ZD\ GHWHUPLQHG E\ WKLV /DZ WRPEROD FDUGV DQG
WLFNHWV$UWLFOH
7KHOLFHQFHXVHUSDUWLFLSDWHVLQIRUHLJQJDPHVRIFKDQFHFRQWUDU\WRWKLV/DZ$UWLFOH
&ROOHFWV VWDNHV IRU IRUHLJQ JDPHV RI FKDQFH LQ WKH FRXQWU\ DQG EXVLQHVV HQGRUVHG
WLFNHWV¶FHUWLILFDWHVIRUSOD\LQJIRUHLJQJDPHVRIFKDQFHLQWKHFRXQWU\$UWLFOH
2UJDQL]HV JDPHV RI FKDQFH FRQWUDU\ WR WKH UXOHV RI WKH JDPH RI FKDQFH DQG LQ WKH
FRXUVHWKHJDPHFKDQJHVLWVUXOHV$UWLFOH
7KHGHWHUPLQDWLRQDQGWKHUHDOL]DWLRQRIWKHJDLQLVQRWFDUULHGRXWLQDZD\UHJXODWHG
ZLWKWKHSURYLVLRQVRIWKLV/DZ$ULWFOHDQG
7KHRUJDQL]HUGRHVQRWVXEPLWDVHDOHGUHFRUGIRUWKHGHWHUPLQHGUHVXOWVDQGWKHJDLQV
IURPWKHILQLVKHGJDPHVRIFKDQFHWRWKHDXWKRUL]HGERG\$UWLFOHSDUDJUDSK
7KH UHVSRQVLEOH SHUVRQ LQ D WUDGH FRPSDQ\ RU RWKHU OHJDO SHUVRQ ZLOO EH SXQLVKHG IRU
LQIULQJHPHQWRISDUDJUDSKRIWKLV$UWLFOHZLWKDSHQDOW\RIWR'HQDUV
$UWLFOH
$ WUDGH FRPSDQ\ RU RWKHU OHJDO HQWLW\ ZLOO EH SXQLVKHG ZLWK D SHQDOW\ RI WR
'HQDUV IRU LQIULQJHPHQW LI LW GRHV QRW SUHVHQW WKH ERRN RI UHJXODWLRQV IRU WKH
ZRUN RI D JDPLQJ KRXVH DQG WKH UXOHV IRU HYHU\ NLQG RI JDPHV RI FKDQFH LQ D ZD\
GHWHUPLQHGZLWKWKHSURYLVLRQVRIWKLV/DZ$UWLFOHSDUDJUDSK
7KHUHVSRQVLEOHSHUVRQLQWKHWUDGH FRPSDQ\RURWKHUOHJDO HQWLW\ZLOODOVREHSXQLVKHG
IRUDQLQIULQJHPHQWIURPSDUDJUDSKRIWKLV$UWLFOHSHQDOW\RIWR'HQDUV
$UWLFOH
$SHQDOW\RIWR'HQDUVIRULQIULQJHPHQWZLOOEHSDLGE\
7KH SHUVRQ HPSOR\HG LQ D JDPLQJ KRXVH ZKR SDUWLFLSDWHV LQ D VSHFLILF JDPH RI
FKDQFHLQDJDPLQJKRXVH$UWLFOHDQG
7KHSHUVRQHPSOR\HGLQWKHJDPLQJKRXVHLIKHUHFHLYHVREMHFWVRIDQ\NLQGH[FHSW
LQWKHFDVHVIURP$UWLFOHSDUDJUDSKRIWKLV/DZ
$UWLFOH
$SHQDOW\RIWR'HQDUVIRULQIULQJHPHQWZLOOEHSDLGE\
$Q LQGLYLGXDO ZKR ZLOO RUJDQLVH DQ\ NLQG RI JDPH RI FKDQFH DV DQ LQGHSHQGHQW
DFWLYLW\RURFFXSDWLRQ$UWLFOHVDQGDQG
$Q LQGLYLGXDO ZKR ZLOO RUJDQL]H HQWHUWDLQPHQW JDPHV DV DQ LQGHSHQGHQW DFWLYLW\
ZLWKRXWDQDSSURYDORIDXWKRUL]HGERG\$UWLFOH
:LWK UHVSHFW WR LQIULQJHPHQW IURP SDUDJUDSK RI WKLV DUWLFOH D VHFXULW\ PHDVXUH IRU
FRQILVFDWLQJWKHVORWPDFKLQHVLHWKHHQWHUWDLQPHQWPDFKLQHVZLOOEHXWWHUHG
;,975$16)250$7,212)62&,$/&$3,7$/$7/277(5<2)
0$&('21,$
$UWLFOH
7UDQVIRUPDWLRQ RI VRFLDO FDSLWDO DW /RWWHU\ RI 0DFHGRQLD ZLOO EH SHUIRUPHG XQGHU
FRQGLWLRQVDQGSURFHGXUHGHWHUPLQHGE\WKH/DZRQ7UDQVIRUPDWLRQRI(QWHUSULVHVZLWK
6RFLDO&DSLWDOXQOHVVLWLVRWKHUZLVHVWDWHGE\WKLVODZ
$UWLFOH
/RWWHU\ RI 0DFHGRQLD FDUULHV 'HFLVLRQ IRU WUDQVIRUPDWLRQ ZLWKLQ VL[ PRQWKV VWDUWLQJ
IURPWKHGD\WKLV/DZFRPHVLQWRHIIHFW
,IWKH'HFLVLRQIRUWUDQVIRUPDWLRQLVQRWFDUULHGE\WKHSHULRGGHWHUPLQHGLQSDUDJUDSK
RIWKLV$UWLFOHWKH$JHQF\IRU7UDQVIRUPDWLRQRI6RFLDOO\2ZQHG(QWHUSULVHVRI5HSXEOLF
RI0DFHGRQLDZLOOFRQGXFWWKHSURFHGXUH
$UWLFOH
%HIRUHWKH'HFLVLRQIRUWUDQVIRUPDWLRQRI/RWWHU\RI0DFHGRQLDLVEURXJKWDQHVWLPDWLRQ
RIWKHSXEOLFFDSLWDOYDOXHLVPDGHLQDFFRUGDQFHZLWKWKH0HWKRGRORJ\IRUHVWLPDWLRQRI
WKHYDOXHRIWKHVRFLDOO\RZQHGHQWHUSULVHV
$UWLFOH
7UDQVIRUPDWLRQ RI /RWWHU\ RI 0DFHGRQLD ZLOO EH FDUULHG RXW E\ RUJDQLVLQJ LW DV D MRLQW
VWRFN FRPSDQ\ DFFRUGLQJ WR WKH PHWKRGV DQG WKH SURFHGXUH GHWHUPLQHG E\ WKH /DZ RQ
7UDQVIRUPDWLRQRI6RFLDOO\2ZQHG(QWHUSULVHV
;975$16,7,21$1'),1$/3529,6,216
$UWLFOH
7KHSHUPDQHQWRUJDQL]HUVRIVSHFLILFJDPHVRIFKDQFHFRQWLQXHZLWKWKHLUZRUNXQWLOWKH
LVVXDQFHRIWKHILUVWOLFHQVHVIRURUJDQL]LQJJDPHVRIFKDQFHDIWHUWKHILUVWDGYHUWLVHPHQW
IRU WKHLU LVVXDQFH LQ DFFRUGDQFH ZLWK WKLV /DZ DQG ZLWK UHVSHFW WR WKH RWKHU JDPHV RI
FKDQFHXQWLOWKHSHULRGGHWHUPLQHGLQWKHFHUWLILFDWHZLWKZKLFKRUJDQL]LQJWKHJDPHVRI
FKDQFHLVDSSURYHG
/RWWHU\RI0DFHGRQLDFRQWLQXHVRUJDQLVLQJJHQHUDOJDPHVRIFKDQFHXQWLOWKHLVVXDQFHRI
WKH ILUVW OLFHQVHV IRU RUJDQL]LQJ VXFK JDPHV DIWHU WKH ILUVW SXEOLVKHG DGYHUWLVHPHQW LQ
DFFRUGDQFHZLWKWKLV/DZ
$UWLFOHD
:LWK DQ H[FHSWLRQ LQ WKH ILUVW \HDU DIWHU WKLV /DZ KDV FRPH LQWR HIIHFW D OLFHQFH IRU
RUJDQL]LQJVSHFLILFJDPHVRIFKDQFHLQJDPLQJKRXVHLHPDFKLQHFOXEFDQEHLVVXHGDQG
SURYLGLQJZLWKLQVL[PRQWKVIURPWKHGD\WKHOLFHQFHLVREWDLQHGLQYHVWPHQWVWREHPDGH
LQ WKH KRWHO LQ ZKLFK VSHFLILF JDPHV RI FKDQFH ZLOO EH RUJDQL]HG LQ RUGHU WR PHHW WKH
FRQGLWLRQVIRUDFTXLULQJDFDWHJRU\ZLWKIRXULHILYHVWDUV
7KH KROGHUV RI WKH OLFHQFH IRU RUJDQL]LQJ VSHFLILF JDPHV RI FKDQFH VHWWOH WKH
FRPSHQVDWLRQGHWHUPLQHGLQWKLV/DZVWDUWLQJIRUPWKHGD\ZKHQWKHOLFHQFHLVREWDLQHG
,IWKHKROGHURIWKHOLFHQFHGRHVQRWPHHWWKHFRQGLWLRQVGHWHUPLQHGLQSDUDJUDSKRIWKLV
$UWLFOHDQGWKHOLFHQFHLVREWDLQHGXQGHUWKHVHFRQGLWLRQVWKHOLFHQFHLVWDNHQDZD\DQG
WKHDVVHWVSDLGIRUWKHFRPSHQVDWLRQIRUWKHOLFHQFHDUHQRWUHWXUQHG
$UWLFOH
7KH RUJDQL]HUV RI JDPHV RI FKDQFH FRQWLQXH WKHLU DFWLYLW\ LQ WKH IROORZLQJ VL[ PRQWKV
VWDUWLQJIURPWKHGD\WKLV/DZFRPHVLQWRHIIHFW'XULQJWKLVSHULRGWKH\DUHREOLJHGWR
FRRUGLQDWHWKHLUDFWLYLW\ZLWKWKHSURYLVLRQVRIWKLV/DZDVZHOODVWRVXEPLWQHZUHTXHVW
IRULVVXDQFHRIDSSURYDOUHJDUGLQJWKHRUJDQL]DWLRQRIHQWHUWDLQPHQWJDPHV
$UWLFOH
/HJDO HQWLWLHV FDQ DOVR DSSHDU DV RUJDQL]HUV RI WKH JDPHV RI FKDQFH DQG HQWHUWDLQPHQW
JDPHVLQDFFRUGDQFHZLWKWKHFRQGLWLRQVGHWHUPLQHGZLWKWKLV/DZLIXQWLOWKHVXEPLVVLRQ
IRU WKH UHTXHVW IRU REWDLQLQJ OLFHQVH LH DSSURYDO WKH\ DUH QRW RUJDQLVHG DV WUDGH
FRPSDQLHV ZLWK DQ REOLJDWLRQ WR GR WKDW ZLWKLQ WKH SHULRG GHWHUPLQHG ZLWK WKH /DZ RQ
7UDGH&RPSDQLHV
$UWLFOH
7KH/DZRQ*DPHVRI&KDQFHDQG(QWHUWDLQPHQW*DPHVRQ0DFKLQHVFHDVHVWREHYDOLG
RQWKHGD\WKLV/DZFRPHVLQWRHIIHFW³2IILFLDO*D]HWWHRI650´QXPEHU
DQG³2IILFLDO*D]HWWHRI5HSXEOLFRI0DFHGRQLD´QXPEHUDQG
$UWLFOH
7KLV /DZ FRPHV LQWR HIIHFW RQ WKH HLJKWK GD\ VWDUWLQJ IURP WKH GD\ LW LV SXEOLVKHG LQ
³2IILFLDO*D]HWWHRI5HSXEOLFRI0DFHGRQLD´