>35(6,'(17,$/'(&5((12@

7+(&+,/'$1'<287+:(/)$5(&2'(

$575LJKWVRIWKH&KLOG $OOFKLOGUHQVKDOOEHHQWLWOHGWRWKHULJKWVKHUHLQVHW
IRUWK ZLWKRXW GLVWLQFWLRQ DV WR OHJLWLPDF\ RU LOOHJLWLPDF\ VH[ VRFLDO VWDWXV UHOLJLRQ
SROLWLFDODQWHFHGHQWVDQGRWKHUIDFWRUV

 (YHU\FKLOGLVHQGRZHGZLWKWKHGLJQLW\DQGZRUWKRIDKXPDQEHLQJIURPWKH
PRPHQWRIKLVFRQFHSWLRQDVJHQHUDOO\DFFHSWHGLQPHGLFDOSDUODQFHDQGKDV
WKHUHIRUHWKHULJKWWREHERUQZHOO

 (YHU\ FKLOG KDV WKH ULJKW WR D ZKROHVRPH IDPLO\ OLIH WKDW ZLOO SURYLGH KLP
ZLWK ORYH FDUH DQG XQGHUVWDQGLQJ JXLGDQFH DQG FRXQVHOLQJ DQG PRUDO DQG
PDWHULDOVHFXULW\

7KH GHSHQGHQW RU DEDQGRQHG FKLOG VKDOO EH SURYLGHG ZLWK WKH QHDUHVW
VXEVWLWXWHIRUDKRPH

 (YHU\FKLOGKDVWKHULJKWWRDZHOOURXQGHGGHYHORSPHQWRIKLVSHUVRQDOLW\WR
WKHHQGWKDWKHPD\EHFRPHDKDSS\XVHIXODQGDFWLYHPHPEHURIVRFLHW\

7KH JLIWHG FKLOG VKDOO EH JLYHQ RSSRUWXQLW\ DQG HQFRXUDJHPHQW WR GHYHORS KLV
VSHFLDOWDOHQWV

7KH HPRWLRQDOO\ GLVWXUEHG RU VRFLDOO\ PDODGMXVWHG FKLOG VKDOO EH WUHDWHG ZLWK
V\PSDWK\DQGXQGHUVWDQGLQJDQGVKDOOEHHQWLWOHGWRWUHDWPHQWDQGFRPSHWHQWFDUH

7KH SK\VLFDOO\ RU PHQWDOO\ KDQGLFDSSHG FKLOG VKDOO EH JLYHQ WKH WUHDWPHQW
HGXFDWLRQDQGFDUHUHTXLUHGE\KLVSDUWLFXODUFRQGLWLRQ

 (YHU\ FKLOG KDV WKH ULJKW WR D EDODQFHG GLHW DGHTXDWH FORWKLQJ VXIILFLHQW
VKHOWHUSURSHUPHGLFDODWWHQWLRQDQGDOOWKHEDVLFSK\VLFDOUHTXLUHPHQWVRID
KHDOWKDQGYLJRURXVOLIH

 (YHU\FKLOGKDVWKHULJKWWREHEURXJKWXSLQDQDWPRVSKHUHRIPRUDOLW\DQG
UHFWLWXGHIRUWKHHQULFKPHQWDQGVWUHQJWKHQLQJRIKLVFKDUDFWHU

 (YHU\FKLOGKDVWKHULJKWWRDQHGXFDWLRQFRPPHQVXUDWHZLWKKLVDELOLWLHVDQG
WR WKH GHYHORSPHQW RI KLV VNLOOV IRU WKH LPSURYHPHQW RI KLV FDSDFLW\ IRU
VHUYLFHWRKLPVHOIDQGWRKLVIHOORZPHQ 








 (YHU\ FKLOG KDV WKH ULJKW WR IXOO RSSRUWXQLWLHV IRU VDIH DQG ZKROHVRPH
UHFUHDWLRQDQGDFWLYLWLHVLQGLYLGXDODVZHOODVVRFLDOIRUWKHZKROHVRPHXVHRI
KLVOHLVXUHKRXUV
 (YHU\ FKLOG KDV WKH ULJKW WR SURWHFWLRQ DJDLQVW H[SORLWDWLRQ LPSURSHU
LQIOXHQFHV KD]DUGV DQG RWKHU FRQGLWLRQV RU FLUFXPVWDQFHV SUHMXGLFLDO WR KLV
SK\VLFDOPHQWDOHPRWLRQDOVRFLDODQGPRUDOGHYHORSPHQW
 (YHU\FKLOGKDVWKHULJKWWROLYHLQDFRPPXQLW\DQGDVRFLHW\WKDWFDQRIIHU
KLP DQ HQYLURQPHQW IUHH IURP SHUQLFLRXV LQIOXHQFHV DQG FRQGXFLYH WR WKH
SURPRWLRQ RI KLV KHDOWK DQG WKH FXOWLYDWLRQ RI KLV GHVLUDEOH WUDLWV DQG
DWWULEXWHV

(YHU\ FKLOG KDV WKH ULJKW WR WKH FDUH DVVLVWDQFH DQG SURWHFWLRQ RI WKH 6WDWH
SDUWLFXODUO\ZKHQKLVSDUHQWVRUJXDUGLDQVIDLORUXQDEOHWRSURYLGHKLPZLWK
KLVIXQGDPHQWDOQHHGVIRUJURZWKGHYHORSPHQWDQGLPSURYHPHQW

(YHU\ FKLOG KDV WKH ULJKW WR DQ HIILFLHQW DQG KRQHVW JRYHUQPHQW WKDW ZLOO
GHHSHQ KLV IDLWK LQ GHPRFUDF\ DQG LQVSLUH KLP ZLWK WKH PRUDOLW\ RI WKH
FRQVWLWXWHGDXWKRULWLHVERWKLQWKHLUSXEOLFDQGSULYDWHOLYHV




(YHU\FKLOGKDVWKHULJKWWRJURZXSDVDIUHHLQGLYLGXDOLQDQDWPRVSKHUHRI
SHDFH XQGHUVWDQGLQJ WROHUDQFH DQG XQLYHUVDO EURWKHUKRRG DQG ZLWK WKH
GHWHUPLQDWLRQWRFRQWULEXWHKLVVKDUHLQWKHEXLOGLQJRIDEHWWHUZRUOG

$57  5HVSRQVLELOLWLHV RI WKH &KLOG (YHU\ FKLOG UHJDUGOHVV RI WKH
FLUFXPVWDQFHV RI WKLV ELUWK VH[ UHOLJLRQ VRFLDO VWDWXV SROLWLFDO DQWHFHGHQWV DQG RWKHU
IDFWRUVVKDOO

6WULYHWROHDGDQXSULJKWDQGYLUWXRXVOLIHLQDFFRUGDQFHZLWKWKHWHQHWVRIKLV
UHOLJLRQWKHWHDFKLQJVRIKLVHOGHUVDQGPHQWRUVDQGWKHELGGLQJVRIDFOHDQ
FRQVFLHQFH

/RYH UHVSHFW DQG REH\ KLV SDUHQWV DQG FRRSHUDWH ZLWK WKHP LQ WKH
VWUHQJWKHQLQJRIWKHIDPLO\

([WHQGWRKLVEURWKHUVDQGVLVWHUVKLVORYHWKRXJKWIXOQHVVDQGKHOSIXOQHVVDQG
HQGHDYRUZLWKWKHPWRNHHSWKHIDPLO\KDUPRQLRXVDQGXQLWHG

([HUW KLV XWPRVW WR GHYHORS KLV SRWHQWLDOLWLHV IRU VHUYLFH SDUWLFXODUO\ E\
XQGHUJRLQJ D IRUPDO HGXFDWLRQ VXLWHG WR KLV DELOLWLHV LQ RUGHU WKDW KH PD\
EHFRPHDQDVVHWWRKLPVHOIDQGWRVRFLHW\


3UHVLGHQWLDO'HFUHH1R



5HVSHFWQRWRQO\KLVHOGHUVEXWDOVRWKHFXVWRPVDQGWUDGLWLRQVRIRXUSHRSOH
WKH PHPRU\ RI RXU KHURHV WKH GXO\ FRQVWLWXWHG DXWKRULWLHV WKH ODZV RI RXU
FRXQWU\DQGWKHSULQFLSOHVDQGLQVWLWXWLRQVRIGHPRFUDF\

3DUWLFLSDWH DFWLYHO\ LQ FLYLF DIIDLUV DQG LQ WKH SURPRWLRQ RI WKH JHQHUDO
ZHOIDUH DOZD\V EHDULQJ LQ PLQG WKDW LW LV WKH \RXWK ZKR ZLOO HYHQWXDOO\ EH
FDOOHG XSRQ WR GLVFKDUJH WKH UHVSRQVLELOLW\ RI OHDGHUVKLS LQ VKDSLQJ WKH
QDWLRQVIXWXUHDQG
+HOS LQ WKH REVHUYDQFH RI LQGLYLGXDO KXPDQ ULJKWV WKH VWUHQJWKHQLQJ RI
IUHHGRPHYHU\ZKHUHWKHIRVWHULQJRIFRRSHUDWLRQDPRQJQDWLRQVLQWKHSXUVXLW
RIWKHLUFRPPRQDVSLUDWLRQVIRUSURJUDPVDQGSURVSHULW\DQGWKHIXUWKHUDQFH
RIZRUOGSHDFH



$57   $ERUWLRQ  7KH DERUWLRQ RI D FRQFHLYHG FKLOG ZKHWKHU VXFK DFW EH
LQWHQWLRQDO RU QRW VKDOO EH JRYHUQHG E\ WKH SHUWLQHQW SURYLVLRQV RI WKH 5HYLVHG 3HQDO
&RGH



$573URPRWLRQRI+HDOWK 7KHSURPRWLRQRIWKH&KLOGVKHDOWKVKDOOEHJLQ
ZLWKDGHTXDWHSUHQDWDODQGSRVWQDWDOFDUHERWKIRUKLPDQGKLVPRWKHU$OODSSURSULDWH
PHDVXUHVVKDOOEHWDNHQWRLQVXUHKLVQRUPDOWRWDOGHYHORSPHQW

,W VKDOO EH WKH UHVSRQVLELOLW\ RI WKH KHDOWK ZHOIDUH DQG HGXFDWLRQDO HQWLWLHV WR
DVVLVWWKHSDUHQWVLQORRNLQJDIWHUWKHKHDOWKRIWKHFKLOG

$57   (GXFDWLRQ 7KH VFKRROV DQG RWKHU HQWLWLHV HQJDJHG LQ QRQIRUPDO
HGXFDWLRQVKDOODVVLVWWKHSDUHQWVLQSURYLGLQJWKHEHVWHGXFDWLRQIRUWKHFKLOG



7,7/(,,&+,/'$1'<287+:(/)$5($1'7+(+20(

&KDSWHU

3$5(17$/$87+25,7<

6HFWLRQ$,Q*HQHUDO

$57-RLQW 3DUHQWDO$XWKRULW\ 7KH IDWKHUDQGPRWKHUVKDOOH[HUFLVHMRLQWO\
MXVWDQGUHDVRQDEOHSDUHQWDODXWKRULW\DQGUHVSRQVLELOLW\RYHUWKHLUOHJLWLPDWHRUDGRSWHG
FKLOGUHQ ,Q FDVH RI GLVDJUHHPHQW WKH IDWKHUV GHFLVLRQ VKDOO SUHYDLO XQOHVV WKHUH LV D
MXGLFLDORUGHUWRWKHFRQWUDU\
3UHVLGHQWLDO'HFUHH1R




,Q FDVH RI WKH DEVHQFH RU GHDWK RI HLWKHU SDUHQW WKH SUHVHQW RU VXUYLYLQJ SDUHQW
VKDOO FRQWLQXH WR H[HUFLVH SDUHQWDO DXWKRULW\ RYHU VXFK FKLOGUHQ XQOHVV LQ FDVH RI WKH
VXUYLYLQJ SDUHQWVUHPDUULDJHWKHFRXUWIRUMXVWLILDEOHUHDVRQVDSSRLQWVDQRWKHUSHUVRQ
DVJXDUGLDQ

,Q FDVH RI VHSDUDWLRQ RI KLV SDUHQWV QR FKLOG XQGHU ILYH \HDUV RI DJH VKDOO EH
VHSDUDWHGIURPKLVPRWKHUXQOHVVWKHFRXUWILQGVFRPSHOOLQJUHDVRQVWRGRVR

$57*UDQGSDUHQWV*UDQGSDUHQWVVKDOOEHFRQVXOWHGRQLPSRUWDQWIDPLO\
TXHVWLRQVEXWWKH\VKDOOQRWLQWHUIHUHLQWKHH[HUFLVHRISDUHQWDODXWKRULW\E\WKHSDUHQWV

$57$EVHQFHRU'HDWKRI3DUHQWV*UDQGSDUHQWVDQGLQWKHLUGHIDXOWWKH
ROGHVWEURWKHURUVLVWHUZKRLVDWOHDVWHLJKWHHQ\HDUVRIDJHRUWKHUHODWLYHZKRKDVDFWXDO
FXVWRG\RIWKHFKLOGVKDOOH[HUFLVHSDUHQWDODXWKRULW\LQFDVHRIDEVHQFHRUGHDWKRIERWK
SDUHQWV XQOHVV D JXDUGLDQ KDV EHHQ DSSRLQWHG LQ DFFRUGDQFH ZLWK WKH VXFFHHGLQJ
SURYLVLRQ

$57*XDUGLDQ7KHFRXUWPD\XSRQWKHGHDWKRIWKHSDUHQWVLQWKHFDVHV
PHQWLRQHGLQ$UWVWRRIWKH&LYLO&RGHDSSRLQWDJXDUGLDQIRUWKHSHUVRQDQG
SURSHUW\RIWKHFKLOGRQSHWLWLRQRIDQ\UHODWLYHRUIULHQGRIWKHIDPLO\RUWKH'HSDUWPHQW
RIVRFLDO:HOIDUH

$57   'HSHQGHQW $EDQGRQHG RU 1HJOHFWHG &KLOG  7KH GHSHQGHQW
DEDQGRQHG RU QHJOHFWHG FKLOG VKDOO EH XQGHU WKH SDUHQWDO DXWKRULW\ RI D VXLWDEOH RU
DFFUHGLWDEOH SHUVRQ RU LQVWLWXWLRQ WKDW LV FDULQJ IRU KLP DV SURYLGHG IRU XQGHU WKH IRXU
SUHFHGLQJDUWLFOHVDIWHUWKHFKLOGKDVEHHQGHFODUHGDEDQGRQHGE\HLWKHUWKHFRXUWRUWKH
'HSDUWPHQWRI6RFLDO:HOIDUH

$57   7UDQVIHU WR WKH 'HSDUWPHQW RI 6RFLDO :HOIDUH  7KH GHSHQGHQW
DEDQGRQHGRUQHJOHFWHGFKLOGPD\EHWUDQVIHUUHGWRWKHFDUHRIWKH'HSDUWPHQWRI6RFLDO
:HOIDUH RU D GXO\ OLFHQVHG FKLOGFDULQJ LQVWLWXWLRQ RU LQGLYLGXDO LQ DFFRUGDQFH ZLWK
$UWLFOHV  DQG  RI WKLV &RGH RU XSRQ WKH UHTXHVW RI WKH SHUVRQ RU LQVWLWXWLRQ
H[HUFLVLQJSDUHQWDODXWKRULW\RYHUKLP

$57&DVH6WXG\,WVKDOOEHWKHGXW\RIWKH'HSDUWPHQWRI6RFLDO:HOIDUH
WR PDNH D FDVH VWXG\ RI HYHU\ FKLOG ZKR LV WKH VXEMHFW RI JXDUGLDQVKLS RU FXVWRG\
SURFHHGLQJVDQGWRVXEPLWLWVUHSRUWDQGUHFRPPHQGDWLRQVRQWKHPDWWHUWRWKHFRXUWIRU
LWVJXLGDQFH

$57   ,QWHUYHQWLRQ RI 'HSDUWPHQW RI 6RFLDO :HOIDUH  7KH 'HSDUWPHQW RI
6RFLDO:HOIDUHVKDOOLQWHUYHQHRQEHKDOIRIWKHFKLOGLILWILQGVDIWHULWVFDVHVWXG\WKDW
WKHSHWLWLRQIRUJXDUGLDQVKLSRUFXVWRG\VKRXOGEHGHQLHG


$57,&/($PHQGHGE\$UWLFOHVRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV
$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV




3UHVLGHQWLDO'HFUHH1R



$57   +HDULQJV &RQILGHQWLDO  7KH KHDULQJ RQ JXDUGLDQVKLS DQG FXVWRG\
SURFHHGLQJV PD\ DW WKH GLVFUHWLRQ RI WKH FRXUW EH FORVHG WR WKH SXEOLF DQG WKH UHFRUGV
WKHUHRIVKDOOQRWEHUHOHDVHGZLWKRXWLWVDSSURYDO

$57   5HSHDOLQJ &ODXVH  $OO SURYLVLRQV RI WKH &LYLO &RGH RQ SDUHQWDO
DXWKRULW\ ZKLFK DUH QRW LQFRQVLVWHQW ZLWK WKH SURYLVLRQV RI WKLV &KDSWHU VKDOOUHPDLQ LQ
IRUFH3URYLGHG7KDW$UWLFOHVXSWRLQFOXVLYHRQ$GRSWLRQDUHKHUHE\H[SUHVVO\
UHSHDOHGDQGUHSODFHGE\6HFWLRQ%RIWKLV&KDSWHU

6HFWLRQ%$GRSWLRQ

$57:KR0D\$GRSW$Q\SHUVRQRIDJHDQGLQIXOOSRVVHVVLRQRIKLVFLYLO
ULJKWV PD\ DGRSW  3URYLGHG 7KDW KH LV LQ D SRVLWLRQ WR VXSSRUW DQG FDUH IRU KLV
OHJLWLPDWH OHJLWLPDWHG DFNQRZOHGJHG QDWXUDO FKLOGUHQ RU QDWXUDO FKLOGUHQ E\ OHJDO
ILFWLRQ RU RWKHU LOOHJLWLPDWH FKLOGUHQ LQ NHHSLQJ ZLWK WKH PHDQV ERWK PDWHULDO DQG
RWKHUZLVHRIWKHIDPLO\

,Q DOO FDVHV RI DGRSWLRQ WKH DGRSWHU PXVW EH DW OHDVW ILIWHHQ \HDUV ROGHU WKDQ WKH
SHUVRQWREHDGRSWHG

$57:KR0D\1RW$GRSW7KHIROORZLQJSHUVRQVPD\QRWDGRSW

 $PDUULHGSHUVRQZLWKRXWWKHZULWWHQFRQVHQWRIWKHVSRXVH

 7KH JXDUGLDQ ZLWK UHVSHFW WR WKH ZDUG SULRU WR WKH ILQDO DSSURYDO RI KLV
DFFRXQWV

 $Q\SHUVRQZKRKDVEHHQFRQYLFWHGRIDFULPHLQYROYLQJPRUDOWXUSLWXGH

 $QDOLHQZKRLVGLVTXDOLILHGWRDGRSWDFFRUGLQJWRWKHODZVRIKLVRZQFRXQWU\
RU RQH ZLWK ZKRVH JRYHUQPHQW WKH 5HSXEOLF RI WKH 3KLOLSSLQHV KDV EURNHQ
GLSORPDWLFUHODWLRQV

$57   $GRSWLRQ E\ +XVEDQG DQG :LIH   +XVEDQG DQG ZLIH PD\ MRLQWO\
DGRSW,QVXFKFDVHSDUHQWDODXWKRULW\VKDOOEHH[HUFLVHGDVLIWKHFKLOGZHUHWKHLURZQE\
QDWXUH

$57:KR0D\1RW%H$GRSWHG7KHIROORZLQJPD\QRWEHDGRSWHG

 $PDUULHGSHUVRQZLWKRXWWKHZULWWHQFRQVHQWRIWKHVSRXVH

 $Q$OLHQZLWKZKRVHJRYHUQPHQWWKH5HSXEOLFRIWKH3KLOLSSLQHVKDVEURNHQ
GLSORPDWLFUHODWLRQV


$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV
$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV

$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHIRWKH3KLOLSSLQHV



3UHVLGHQWLDO'HFUHH1R






 $ SHUVRQ ZKR KDV DOUHDG\ DGRSWHG XQOHVV WKH DGRSWLRQ KDV EHHQ SUHYLRXVO\
UHYRNHGRUUHVFLQGHGLQDFFRUGDQFHZLWKWKLV&KDSWHU

$57:KRVH&RQVHQWLV1HFHVVDU\7KHZULWWHQFRQVHQWRIWKHIROORZLQJWR
WKHDGRSWLRQVKDOOEHQHFHVVDU\

 7KHSHUVRQWREHDGRSWHGLIIRXUWHHQ\HDUVRIDJHRURYHU

 7KH QDWXUDO SDUHQWV RI WKH FKLOG RU KLV OHJDO JXDUGLDQ RU WKH 'HSDUWPHQW RI
VRFLDO:HOIDUHRUDQ\GXO\OLFHQVHGFKLOGSODFHPHQWDJHQF\XQGHUZKRVHFDUH
WKHFKLOGPD\EH

 7KHQDWXUDOFKLOGUHQIRXUWHHQ\HDUVDQGDERYHRIWKHDGRSWLQJSDUHQWV

$57 +XUULHG'HFLVLRQV,QDOOSURFHHGLQJVIRUDGRSWLRQVWHSVVKRXOGEH
WDNHQE\WKHFRXUWWRSUHYHQWWKHQDWXUDOSDUHQWVIURPPDNLQJKXUULHGGHFLVLRQVFDXVHGE\
VWUDLQRUDQ[LHW\WRJLYHXSWKHFKLOGDQGWRDVFHUWDLQWKDWDOOPHDVXUHVWRVWUHQJWKHQWKH
IDPLO\KDYHEHHQH[KDXVWHGDQGWKDWDQ\SURORQJHGVWD\RIWKHFKLOGLQKLVRZQKRPHZLOO
EHLQLPLFDOWRKLVZHOIDUHDQGLQWHUHVW

$57   &DVH 6WXG\  1R SHWLWLRQ IRU DGRSWLRQ VKDOO EH JUDQWHG XQOHVV WKH
'HSDUWPHQW RI 6RFLDO :HOIDUH RU WKH 6RFLDO :RUN DQG &RXQVHOLQJ 'LYLVLRQ LQ FDVH RI
-XYHQLOH DQG 'RPHVWLF 5HODWLRQV &RXUWV KDV PDGH D FDVH VWXG\ RI WKH FKLOG WR EH
DGRSWHG KLV QDWXUDO SDUHQWV DV ZHOO DV WKH SURVSHFWLYH DGRSWLQJ SDUHQWV DQG KDV
VXEPLWWHG LWV UHSRUW DQG UHFRPPHQGDWLRQV RQ WKH PDWWHU WR WKH FRXUW KHDULQJ VXFK
SHWLWLRQ  7KH 'HSDUWPHQW RI 6RFLDO :HOIDUH VKDOO LQWHUYHQH RQ EHKDOI RI WKH FKLOG LI LW
ILQGVDIWHUVXFKFDVHVWXG\WKDWWKHSHWLWLRQVKRXOGEHGHQLHG

$57   3URFHGXUH  7KH SURFHHGLQJV IRU DGRSWLRQ VKDOO EH JRYHUQHG E\ WKH
5XOHVRI&RXUWLQVRIDUDVWKH\DUHQRWLQFRQIOLFWZLWKWKLV&KDSWHU

$577ULDO&XVWRG\1RSHWLWLRQIRUDGRSWLRQVKDOOEHILQDOO\JUDQWHGXQOHVV
DQGXQWLOWKHDGRSWLQJSDUHQWVDUHJLYHQE\WKHFRXUWDVXSHUYLVHGWULDOFXVWRG\SHULRGRI
DWOHDVWVL[PRQWKVWRDVVHVVWKHLUDGMXVWPHQWDQGHPRWLRQDOUHDGLQHVVIRUWKHOHJDOXQLRQ
'XULQJ WKH SHULRG RI WULDO FXVWRG\ SDUHQWDO DXWKRULW\ VKDOO EH YHVWHG LQ WKH DGRSWLQJ
SDUHQWV

7KH FRXUW PD\ XSRQ LWV RZQ PRWLRQ RU RQ PRWLRQ RI WKH SHWLWLRQHU UHGXFH RU
GLVSHQVHZLWKWKHWULDOSHULRGLILWILQGVWKDWLWLVWRWKHEHVWLQWHUHVWRIWKHFKLOG,QVXFK
FDVHWKHFRXUWVKDOOVWDWHLWVUHDVRQVIRUUHGXFLQJVDLGSHULRG



$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV
$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV

$57,&/($PHQGHGE\([HFXWLYH2UGHU

$57,&/($PHQGHGE\([HFXWLYH2UGHU



3UHVLGHQWLDO'HFUHH1R



$57'HFUHHRI$GRSWLRQ,IDIWHUFRQVLGHULQJWKHUHSRUWRIWKH'HSDUWPHQW
RI 6RFLDO :HOIDUH RU GXO\ OLFHQVHG FKLOG SODFHPHQW DJHQF\ DQG WKH HYLGHQFH VXEPLWWHG
EHIRUH LW WKH FRXUW LV VDWLVILHG WKDW WKH SHWLWLRQHU LV TXDOLILHG WR PDLQWDLQ FDUH IRU DQG
HGXFDWH WKH FKLOG WKDW WKH WULDO FXVWRG\ SHULRG KDV EHHQ FRPSOHWHG DQG WKDW WKH EHVW
LQWHUHVWV RI WKH FKLOG ZLOO EH SURPRWHG E\ WKH DGRSWLRQ D GHFUHH RI DGRSWLRQ VKDOO EH
HQWHUHGZKLFKVKDOOEHHIIHFWLYHDVRIWKHGDWHWKHRULJLQDOSHWLWLRQZDVILOHG7KHGHFUHH
VKDOOVWDWHWKHQDPHE\ZKLFKWKHFKLOGLVWKHQFHIRUWKWREHNQRZQ

$57   &LYLO 5HJLVWU\5HFRUG7KHDGRSWLRQVKDOOEHUHFRUGHGLQWKHORFDO
FLYLOUHJLVWHUDQGVKDOOEHDQQRWDWHGRQWKHUHFRUGRIELUWKDQGWKHVDPHVKDOOHQWLWOHWKH
DGRSWHGSHUVRQWRWKHLVVXDQFHRIDQDPHQGHGFHUWLILFDWHRIELUWK

$57   &RQILGHQWLDO 1DWXUH RI 3URFHHGLQJV DQG 5HFRUGV  $OO KHDULQJV LQ
DGRSWLRQ FDVHV VKDOO EH FRQILGHQWLDO DQG VKDOO QRW EH RSHQ WR WKH SXEOLF  $OO UHFRUGV
ERRNVDQGSDSHUVUHODWLQJWRWKHDGRSWLRQFDVHVLQWKHILOHVRIWKHFRXUWRIWKH'HSDUWPHQW
RI 6RFLDO :HOIDUH DQG RI DQ\ RWKHU DJHQF\ RU LQVWLWXWLRQ SDUWLFLSDWLQJ LQ WKH DGRSWLRQ
SURFHHGLQJVVKDOOEHNHSWVWULFWO\FRQILGHQWLDO

6XEMHFWWRWKHSURYLVLRQVRI$UWLFOHLQDQ\FDVHLQZKLFKLQIRUPDWLRQIURPVXFK
UHFRUGV ERRNV DQG SDSHUV LV QHHGHG WKH SHUVRQ RUDJHQF\UHTXHVWLQJWKHUHOHDVHRIWKH
LQIRUPDWLRQPD\ILOHDSHWLWLRQWRWKHFRXUWZKLFKHQWHUHGWKHGHFUHHRIDGRSWLRQIRULWV
UHOHDVH,IWKHFRXUWILQGVWKDWWKHGLVFORVXUHRIWKHLQIRUPDWLRQLVQHFHVVDU\IRUSXUSRVHV
FRQQHFWHGZLWKRUDULVLQJRXWRIWKHDGRSWLRQDQGZLOOEHIRUWKHEHVWLQWHUHVWRIWKHFKLOG
WKHFRXUWPD\SHUPLWWKHQHFHVVDU\LQIRUPDWLRQWREHUHOHDVHGUHVWULFWLQJWKHSXUSRVHVIRU
ZKLFKLWPD\EHXVHG

$57(IIHFWVRI$GRSWLRQ7KHDGRSWLRQVKDOO

 *LYH WR WKH DGRSWHG SHUVRQ WKH VDPH ULJKWV DQG GXWLHV DV LI KH ZHUH D
OHJLWLPDWH FKLOG RI WKH DGRSWHG  3URYLGHG 7KDW DQ DGRSWHG FKLOG FDQQRW
DFTXLUH3KLOLSSLQHFLWL]HQVKLSE\YLUWXHRIVXFKDGRSWLRQ

 'LVVROYHWKHDXWKRULW\YHVWHGLQWKHQDWXUDOSDUHQWRUSDUHQWVH[FHSWZKHUH
WKHDGRSWHULVWKHVSRXVHRIWKHVXUYLYLQJQDWXUDOSDUHQW

 (QWLWOHWKHDGRSWHGSHUVRQWRXVHWKHDGRSWHUVVXUQDPHDQG

 0DNHWKHDGRSWHGSHUVRQDOHJDOKHLURIWKHDGRSWHU3URYLGHG7KDWLIWKH
DGRSWHU LV VXUYLYHG E\ OHJLWLPDWH SDUHQWV RU DVFHQGDQWV DQG E\ DQ DGRSWHG
SHUVRQ WKH ODWWHU VKDOO QRW KDYH PRUH VXFFHVVLRQDO ULJKWV WKDQ DQ
DFNQRZOHGJHGQDWXUDOFKLOG3URYLGHGIXUWKHU7KDWDQ\SURSHUW\UHFHLYHG
JUDWXLWRXVO\ E\ WKH DGRSWHG IURP WKH DGRSWHU VKDOO UHYHUW WR WKH DGRSWHU
VKRXOG WKH IRUPHU SUHGHFHDVH WKH ODWWHU ZLWKRXW OHJLWLPDWH LVVXH XQOHVV WKH
DGRSWHGKDVGXULQJKLVOLIHWLPHDOLHQDWHGVXFKSURSHUW\3URYLGHGILQDOO\
7KDW LQ WKH ODVW FDVH VKRXOG WKH DGRSWHG OHDYH QR SURSHUW\ RWKHU WKDQ WKDW

$57,&/(1XPEHUVDQG$PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV



3UHVLGHQWLDO'HFUHH1R



UHFHLYHG IURP WKH DGRSWHU DQG KH LV VXUYLYHG E\ LOOHJLWLPDWH LVVXH RU D
VSRXVH VXFK LOOHJLWLPDWH LVVXH FROOHFWLYHO\ RU WKH VSRXVH VKDOO UHFHLYH RQH
IRXUWKRIVXFKSURSHUW\LIWKHDGRSWHGLVVXUYLYHGE\LOOHJLWLPDWHLVVXHDQGD
VSRXVH WKHQ WKH IRUPHU FROOHFWLYHO\ VKDOO UHFHLYH RQHIRXUWK DQG WKH ODWWHU
DOVRRQHIRXUWKWKHUHVWLQDQ\FDVHUHYHUWLQJWRWKHDGRSWHUREVHUYLQJLQWKH
FDVHRIWKHLOOHJLWLPDWHLVVXHWKHSURSRUWLRQSURYLGHGIRULQ$UWLFOHRIWKH
&LYLO&RGH

7KHDGRSWHUVKDOOQRWEHDOHJDOKHLURIWKHDGRSWHGSHUVRQZKRVHSDUHQWVE\
QDWXUHVKDOOLQKHULWIURPKLPH[FHSWWKDWLIWKHODWWHUDUHERWKGHDGWKHDGRSWLQJ
SDUHQW RU SDUHQWV WDNH WKH SODFH RI WKH QDWXUDO SDUHQWV LQ WKH OLQH RI VXFFHVVLRQ
ZKHWKHUWHVWDWHRULQWHVWDWH

$575HVFLVVLRQE\$GRSWHG7KHDGRSWHGSHUVRQRUWKH'HSDUWPHQW
RI 6RFLDO :HOIDUH RU DQ\ GXO\ OLFHQVHG FKLOG SODFHPHQW DJHQF\ LI WKHDGRSWHG LV
VWLOODPLQRURURWKHUZLVHLQFDSDFLWDWHGPD\DVNIRUWKHUHVFLVVLRQRIWKHDGRSWLRQ
RQ WKH VDPH JURXQGV WKDW FDXVH WKH ORVV RI SDUHQWDO DXWKRULW\ XQGHU WKH &LYLO
&RGH



$57 5HYRFDWLRQE\$GRSWHU7KHDGRSWHUPD\SHWLWLRQWKHFRXUWIRUWKH
UHYRFDWLRQRIWKHDGRSWLRQLQDQ\RIWKHVHFDVHV

 ,IWKHDGRSWHGSHUVRQKDVDWWHPSWHGDJDLQVWWKHOLIHRIWKHDGRSWHUDQGRUKLV
VSRXVH

 :KHQ WKH DGRSWHG PLQRU KDV DEDQGRQHG WKH KRPH RI WKH DGRSWHU IRU PRUH
WKDQ WKUHH \HDUV DQG HIIRUWV KDYH EHHQ H[KDXVWHG WR ORFDWH WKH PLQRU ZLWKLQ
WKHVWDWHGSHULRG

 :KHQ E\ RWKHU DFWV WKH DGRSWHG SHUVRQ KDV GHILQLWHO\ UHSXGLDWHG WKH
DGRSWLRQ

$57(IIHFWVRI5HVFLVVLRQRU5HYRFDWLRQ:KHUHWKHDGRSWHGPLQRUKDVQRW
UHDFKHGWKHDJHRIPDMRULW\DWWKHWLPHRIWKHUHYRFDWLRQRUUHVFLVVLRQUHIHUUHGWRLQWKH
QH[W SUHFHGLQJ DUWLFOHV WKH FRXUW LQ WKH VDPH SURFHHGLQJ VKDOO GHWHUPLQH ZKHWKHU KH
VKRXOG EH UHWXUQHG WR WKH SDUHQWDO DXWKRULW\ RI KLV QDWXUDO SDUHQWV RU UHPLWWHG WR WKH
'HSDUWPHQWRI6RFLDO:HOIDUHRUDQ\GXO\OLFHQVHGFKLOGSODFHPHQWDJHQF\RUZKHWKHUD
JXDUGLDQRYHUKLVSHUVRQDQGSURSHUW\VKRXOGEHDSSRLQWHG

:KHUH WKH DGRSWHG FKLOG KDV UHDFKHG WKH DJH RI PDMRULW\ WKH UHYRFDWLRQ RU
UHVFLVVLRQLIDQGZKHQJUDQWHGE\WKHFRXUWVKDOOUHOHDVHKLPIURPDOOREOLJDWLRQVWRKLV
DGRSWLQJ SDUHQWV DQG VKDOO H[WLQJXLVK DOO KLV ULJKWV DJDLQVW WKHP  3URYLGHG 7KDWLIWKH
VDLGDGRSWHGSHUVRQLVSK\VLFDOO\RUPHQWDOO\KDQGLFDSSHGDVWRQHHGRYHUKLVSHUVRQRU


$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV
$57,&/($PHQGHGE\$UWLFOHRIWKH)DPLO\&RGHRIWKH3KLOLSSLQHV




3UHVLGHQWLDO'HFUHH1R



SURSHUW\RUERWKWKHFRXUWPD\DSSRLQWDJXDUGLDQLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI
H[LVWLQJODZ

,QDOOFDVHVRIUHYRFDWLRQRUUHVFLVVLRQWKHDGRSWHGVKDOOORVHWKHULJKWWRFRQWLQXH
XVLQJWKHDGRSWHUVVXUQDPHDQGWKHFRXUWVKDOORUGHUWKHDPHQGPHQWRIWKHUHFRUGVLQWKH
&LYLO5HJLVWUDULQDFFRUGDQFHZLWKLWVGHFLVLRQ




$57  $VVLVWDQFH WR :LGRZHG RU $EDQGRQHG 3DUHQW DQG +HU 0LQRU
'HSHQGHQWV7KH6WDWHVKDOOJLYHDVVLVWDQFHWRZLGRZHGRUDEDQGRQHGSDUHQWRUZKHUH
HLWKHU VSRXVH LV RQ SURORQJHG DEVHQFH GXH WR LOOQHVV LPSULVRQPHQW HWF DQG ZKR LV
XQDEOH WR VXSSRUW KLVKHU FKLOGUHQ )LQDQFLDO DQG RWKHU HVVHQWLDO VRFLDO VHUYLFHV VKDOOEH
JLYHQE\WKH1DWLRQDO*RYHUQPHQWRURWKHUGXO\OLFHQVHGDJHQFLHVZLWKVLPLODUIXQFWLRQV
WR KHOS VXFKSDUHQWDFTXLUHWKHQHFHVVDU\NQRZOHGJHRUVNLOOQHHGHGIRUWKHSURSHUFDUH
DQGPDLQWHQDQFHRIWKHIDPLO\

$57$VVLVWDQFHWR8QPDUULHG0RWKHUVDQGWKHLU&KLOGUHQ$Q\XQPDUULHG
PRWKHUQD\EHIRUHDQGDIWHUWKHELUWKRIKHUFKLOGVHHNWKHDVVLVWDQFHDQGDGYLFHRIWKH
'HSDUWPHQW RI 6RFLDO :HOIDUH RU DQ\ GXO\ OLFHQVHG FKLOG SODFHPHQW DJHQF\ 7KH VDLG
DJHQFLHVVKDOORIIHUVSHFLDOL]HGSURIHVVLRQDOVHUYLFHVZKLFKLQFOXGHFRQILGHQWLDOKHOSDQG
SURWHFWLRQWRVXFKPRWKHUDQGKHUFKLOGLQFOXGLQJSODFHPHQWRISURWHFWLRQWRVXFKPRWKHU
DQGFKLOGLQFOXGLQJSODFHPHQWRIVXFKPRWKHUVULJKWVLIDQ\DJDLQVWWKHIDWKHURIVXFK
FKLOG



$57$GPLVVLRQWR6FKRROV7KHVWDWHVKDOOVHHWRLWWKDWQRFKLOGLVUHIXVHG
DGPLVVLRQLQSXEOLFVFKRROV$OOSDUHQWVDUHUHTXLUHGWRHQUROOWKHLUFKLOGUHQLQVFKRROVWR
FRPSOHWHDWOHDVWDQHOHPHQWDU\HGXFDWLRQ

$57   $VVLVWDQFH  7R LPSOHPHQW HIIHFWLYHO\ WKH FRPSXOVRU\ HGXFDWLRQ
SROLF\DOOQHFHVVDU\DVVLVWDQFHSRVVLEOHVKDOOEHJLYHQWRSDUHQWVVSHFLDOO\LQGLJHQWRQHV
RUWKRVHZKRQHHGWKHVHUYLFHVRIFKLOGUHQDWKRPHWRHQDEOHWKHFKLOGUHQWRDFTXLUHDW
OHDVW DQ HOHPHQWDU\ HGXFDWLRQ  6XFK DVVLVWDQFH PD\ EH LQ WKH IRUP RI VSHFLDO VFKRRO
SURJUDPVZKLFKPD\QRWUHTXLUHFRQWLQXRXVDWWHQGDQFHLQVFKRRORUDLGLQWKHIRUP RI
QHFHVVDU\ VFKRRO VXSSOLHV VFKRRO OXQFK RU ZKDWHYHU FRQVWLWXWHV D EDU WR D FKLOGV
DWWHQGDQFHLQVFKRRORUDFFHVVWRHOHPHQWDU\HGXFDWLRQ

$571XUVHU\6FKRRO7RIXUWKHUKHOSSURPRWHWKHZHOIDUHRIFKLOGUHQRI
ZRUNLQJPRWKHUVDQGLQGLJHQWSDUHQWVDQGLQNHHSLQJZLWKWKH&RQVWLWXWLRQDOSURYLVLRQ
RQ WKH PDLQWHQDQFH RI DQ DGHTXDWH V\VWHP RI SXEOLF HGXFDWLRQ SXEOLF QXUVHU\ DQG
NLQGHUJDUWHQ VFKRROV VKDOO EH PDLQWDLQHG ZKHQHYHU SRVVLEOH  7KH RSHUDWLRQ DQG
PDLQWHQDQFHRIVXFKVFKRROVVKDOOEHUHVSRQVLELOLW\RIORFDOJRYHUQPHQWV$LGIURPORFDO
ERDUGIXQGVZKHQDYDLODEOHPD\EHSURYLGHG
3UHVLGHQWLDO'HFUHH1R




$576SHFLDO&ODVVHV:KHUHQHHGVZDUUDQWVWKHUHVKDOOEHDWOHDVWVSHFLDO
FODVVHVLQHYHU\SURYLQFHDQGLISRVVLEOHVSHFLDOVFKRROVIRUWKHSK\VLFDOO\KDQGLFDSSHG
WKH PHQWDOO\ UHWDUGHG WKH HPRWLRQDOO\ GLVWXUEHG DQG WKH VSHFLDOO\ JLIWHG  7KH SULYDWH
VHFWRU VKDOO EH JLYHQDOOWKHQHFHVVDU\LQGXFHPHQWDQGHQFRXUDJHPHQWWRHVWDEOLVKVXFK
FODVVHVRUVFKRROV

$57   6FKRRO 3ODQWV DQG )DFLOLWLHV   /RFDO VFKRRO RIILFLDOV DQG ORFDO
JRYHUQPHQW RIILFLDOV VKDOO VHH WR LW WKDW VFKRRO FKLOGUHQ DQG VWXGHQWV DUH SURYLGHG ZLWK
DGHTXDWHVFKRROURRPVDQGIDFLOLWLHVLQFOXGLQJSOD\JURXQGVSDFHDQGIDFLOLWLHVIRUVSRUWV
DQG SK\VLFDO GHYHORSPHQW DFWLYLWLHV  6XFK RIILFLDOV VKRXOG VHH WR LW WKDW WKH VFKRRO
HQYLURQPHQW LVIUHHIURPKD]DUGVWRWKHKHDOWKDQGVDIHW\RIWKHVWXGHQWVDQGWKDWWKHUH
DUH DGHTXDWH VDIHW\ PHDVXUHV IRU DQ\ HPHUJHQFLHV VXFKDVDFFHVVLEOHH[LWVILUHILJKWLQJ
HTXLSPHQW DQG WKH OLNH   $OO FKLOGUHQ VKDOO KDYH IUHH DFFHVV WR DGHTXDWH DQG PHGLFDO
VHUYLFHV



&KDSWHU

:25.,1*&+,/'5(1


$57   (PSOR\PHQW RI &KLOGUHQ %HORZ 6L[WHHQ <HDUV  &KLOGUHQ EHORZ
VL[WHHQ\HDUVRIDJHPD\EHHPSOR\HGWRSHUIRUPOLJKWZRUNZKLFKLVQRWKDUPIXOWRWKHLU
VDIHW\KHDOWKRUQRUPDOGHYHORSPHQWDQGZKLFKLVQRWSUHMXGLFLDOWRWKHLUVWXGLHV

7KH SURYLVLRQV RI WKH /DERU &RGH UHODWLQJ WR HPSOR\DEOH DJH DQG FRQGLWLRQV RI
HPSOR\PHQW RI FKLOGUHQ DUH KHUHE\ DGRSWHG DV SDUW RI WKLV &RGH LQVRIDU DV QRW
LQFRQVLVWHQWKHUHZLWK

$57'XW\RI(PSOR\HUWR6XEPLW5HSRUW7KHHPSOR\HUVKDOOVXEPLWWR
WKH 'HSDUWPHQW RI /DERU D UHSRUW RI DOO FKLOGUHQ HPSOR\HG E\ KLP  $ VHSDUDWH UHSRUW
VKDOO EH PDGH RI DOO VXFK FKLOGUHQ ZKR DUH IRXQG WR EH KDQGLFDSSHG DIWHU PHGLFDO
H[DPLQDWLRQ7KH6HFUHWDU\RI/DERUVKDOOUHIHUVXFKKDQGLFDSSHGFKLOGUHQWRWKHSURSHU
JRYHUQPHQW RU SULYDWH DJHQFLHV IRU YRFDWLRQDO JXLGDQFH SK\VLFDO DQG YRFDWLRQDO
UHKDELOLWDWLRQDQGSODFHPHQWLQHPSOR\PHQW

$575HJLVWHURI&KLOGUHQ(YHU\HPSOR\HULQDQ\FRPPHUFLDOLQGXVWULDO
RUDJULFXOWXUDOHVWDEOLVKPHQWRUHQWHUSULVHVKDOONHHS

 $UHJLVWHURIDOOFKLOGUHQHPSOR\HGE\KLPLQGLFDWLQJWKHGDWHVRIWKHLUELUWK

 $ VHSDUDWH ILOH IRU WKH ZULWWHQ FRQVHQW WR WKHLU HPSOR\PHQW JLYHQ E\ WKHLU
SDUHQWVRUJXDUGLDQV

3UHVLGHQWLDO'HFUHH1R






 $VHSDUDWHILOHIRUWKHLUHGXFDWLRQDODQGPHGLFDOFHUWLILFDWHVDQG

 $ VHSDUDWH ILOH IRU VSHFLDO ZRUN SHUPLWV LVVXHG E\ WKH 6HFUHWDU\ RI ODERU LQ
DFFRUGDQFHZLWKH[LVWLQJODZV

$57   (GXFDWLRQ RI &KLOGUHQ (PSOR\HG DV 'RPHVWLFV   ,I D GRPHVWLF LV
XQGHU VL[WHHQ \HDUV RI DJH WKH KHDG RI WKH IDPLO\ VKDOO JLYH KLP DQ RSSRUWXQLW\ WR
FRPSOHWH DW OHDVW HOHPHQWDU\ HGXFDWLRQ DV UHTXLUHG XQGHU $UWLFOH   7KH FRVW RI VXFK
HGXFDWLRQVKDOOEHDSDUWRIWKHGRPHVWLFVFRPSHQVDWLRQXQOHVVWKHUHLVDVWLSXODWLRQWR
WKHFRQWUDU\



$57  &ODVVLILFDWLRQ RI &KLOG DQG \RXWK :HOIDUH $JHQFLHV  3XEOLF DQG
SULYDWH FKLOG ZHOIDUH DJHQFLHV SURYLGLQJ HQFRXUDJHPHQW FDUH DQG SURWHFWLRQ WR DQ\
FDWHJRU\ RI FKLOGUHQ DQG \RXWK ZKHWKHU PHQWDOO\ JLIWHG GHSHQGHQW DEDQGRQHG
QHJOHFWHGDEXVHGKDQGLFDSSHGGLVWXUEHGRU\RXWKIXORIIHQGHUVFODVVLILHGDQGGHILQHGDV
IROORZVVKDOOEHFRRUGLQDWHGE\WKH'HSDUWPHQWRI6RFLDO:HOIDUH

$PDWHUQLW\LVDQLQVWLWXWLRQRUSODFHRIUHVLGHQFHZKRVHSULPDU\IXQFWLRQLVWR
JLYH VKHOWHU DQG FDUH WR SUHJQDQW ZRPHQ DQG WKHLU LQIDQWV EHIRUH GXULQJ DQG DIWHU
GHOLYHU\

$57+HDOWK\*URZWKRI&KLOGUHQ3XUVXDQWWRLWVREOLJDWLRQWRDVVLVWWKH
SDUHQWV LQ WKH SURSHU XSEULQJLQJ RI WKH FKLOG WKH 6WDWH VKDOO ZKHQHYHU SRVVLEOH LQ
FROODERUDWLRQDQGFRRSHUDWLRQZLWKORFDOJRYHUQPHQWHVWDEOLVK

3XHULFXOWXUHDQGVLPLODUFHQWHUV
-XYHQLOHFRXUWV

&KLOGZHOIDUHDJHQFLHV

2USKDQDJHVDQGRWKHUVLPLODULQVWLWXWLRQVDQG


&KLOGUHQVUHFUHDWLRQFHQWHUV

$57  3XHULFXOWXUH RU +HDOWK &HQWHUV  3XHULFXOWXUH RU KHDOWK FHQWHUV VKDOO
EH HVWDEOLVKHG  LQ HYHU\ EDUDQJD\ WR SHUIRUP DPRQJ RWKHU WKLQJV WKH IROORZLQJ
IXQFWLRQV

'LVVHPLQDWH LQIRUPDWLRQ FRQFHUQLQJ WKH KHDOWK RI FKLOGUHQ DQG H[SHFWDQW RU
QXUVLQJPRWKHUV

3URYLGH FRQVXOWDWLRQ VHUYLFH DQG WUHDWPHQW ZKHQHYHU QHFHVVDU\ IRU WKH
FKLOGUHQDQGWKHH[SHFWDQWRUQXUVLQJPRWKHUV


3UHVLGHQWLDO'HFUHH1R







3URYLGH JXLGDQFH DQG VSHFLDO WUHDWPHQW WR FKLOGUHQ ZLWK SK\VLFDO KDQGLFDSV
DQG
$GYLVHFKLOGZHOIDUHLQVWLWXWLRQVRQPDWWHUVUHODWLQJWRQXWULWLRQDQGK\JLHQH



$57   /HJDO &XVWRG\  :KHQ DQ\ FKLOG VKDOO KDYH EHHQ FRPPLWWHG LQ
DFFRUGDQFH ZLWK WKH SUHFHGLQJ DUWLFOH DQG VXFK FKLOG VKDOO KDYH EHHQ DFFHSWHG E\ WKH
'HSDUWPHQWRI6RFLDO:HOIDUHRUDQ\GXO\OLFHQVHGFKLOGSODFHPHQWDJHQF\RULQGLYLGXDO
WKH ULJKWV RI KLV QDWXUDO SDUHQWV JXDUGLDQ RU RWKHU FXVWRGLDQ WR H[HUFLVH SDUHQWDO
DXWKRULW\RYHUKLPVKDOOFHDVH6XFKDJHQF\RULQGLYLGXDOVKDOOHHQWLWOHGWRWKHFXVWRG\
DQG FRQWURO RI VXFK FKLOG GXULQJ KLV PLQRULW\ DQG VKDOO KDYH DXWKRULW\ WR FDUH IRU
HGXFDWH WUDLQ DQG SODFH KLP RXW WHPSRUDULO\ RU IRU FXVWRG\ DQG FDUH LQ D GXO\ OLFHQVHG
FKLOG SODFHPHQW DJHQF\  6XFK DJHQF\ RU LQGLYLGXDO PD\ LQWHUYHQH LQ DGRSWLRQ
SURFHHGLQJVLQVXFKPDQQHUDVVKDOOEHVWLQVXUHWRWKHFKLOGVZHOIDUH


$577HPSRUDU\&XVWRG\RI&KLOG6XEMHFWWRUHJXODWLRQE\WKH
'HSDUWPHQWRI6RFLDO:HOIDUHDQGZLWKWKHSHUPLVVLRQRIWKHFRXUWLQFDVHRIMXGLFLDO
FRPPLWPHQWWKHFRPSHWHQWDXWKRULWLHVRIDQ\GXO\OLFHQVHGFKLOGSODFHPHQWDJHQF\RU
LQGLYLGXDOWRZKLFKDFKLOGKDVEHHQFRPPLWWHGPD\SODFHKLPLQWKHFDUHRIDQ\VXLWDEOH
SHUVRQDWWKHODWWHUVUHTXHVWIRUDSHULRGQRWH[FHHGLQJRQHPRQWKDWDWLPH



&KDSWHU

0(17$//<5(7$5'('3+<6,&$//<+$1',&$33('(027,21$//<
',6785%('$1'0(17$//,//&+,/'5(1


$57   0HQWDOO\5HWDUGHG &KLOGUHQ  0HQWDOO\ UHWDUGHG FKLOGUHQ DUH 
VRFLDOO\ LQFRPSHWHQW WKDW LV VRFLDOO\ LQDGHTXDWH DQG RFFXSDWLRQDOO\ LQFRPSHWHQW DQG
XQDEOH WR PDQDJH WKHLU RZQ DIIDLUV  PHQWDOO\ VXEQRUPDO  UHWDUGHG LQWHOOHFWXDOO\
IURP ELUWK RU HDUO\ DJH  UHWDUGHG DW PDWXULW\  PHQWDOO\ GHILFLHQW DV D UHVXOW RI
FRQVWLWXWLRQDORULJLQWKURXJKKHUHGLW\RUGLVHDVHDQGHVVHQWLDOO\LQFXUDEOH

$57&ODVVLILFDWLRQRI0HQWDO5HWDUGDWLRQ0HQWDO5HWDUGDWLRQLVGLYLGHG
LQWRIRXUFODVVLILFDWLRQV

 &XVWRGLDO *URXS  7KH PHPEHUV RI WKLV FODVVLILFDWLRQ DUH VHYHUHO\ RU
SURIRXQGO\UHWDUGHGKHQFHWKHOHDVWFDSDEOHJURXS7KLVLQFOXGHWKRVHZLWK
,4VWR

3UHVLGHQWLDO'HFUHH1R



 7UDLQDEOH*URXS7KHPHPEHUVRIWKLVJURXSFRQVLVWRIWKRVHZLWK,4V
IURPWRDERXWRQHZKREHORQJVWRWKLVJURXSVKRZVDPHQWDOOHYHODQG
UDWH RI GHYHORSPHQW ZKLFK LV  WR  WKDW WKH DYHUDJH FKLOG LV XQDEOH WR
DFTXLUH KLJKHU DFDGHPLF VNLOOV EXW FDQ XVXDOO\ DFTXLUH WKH EDVLF VNLOOV IRU
OLYLQJWRDUHDVRQDEOHGHJUHH+HFDQOLNHZLVHDWWDLQDSULPDU\JUDGHOHYHORI
HGXFDWLRQLIKHUHFHLYHVHIIHFWLYHLQVWUXFWLRQ

 (GXFDEOH*URXS7KLVJURXSV,4UDQJHVIURPDERXWWRDERXWDQG
WKH LQWHOOHFWXDO GHYHORSPHQW LV DSSUR[LPDWHO\  WR  RI WKDW H[SHFWHG RI
QRUPDO FKLOG RI WKH VDPH FKURQRORJLFDO DJH  7KH GHJUHH RI VXFFHVV RU
DFFRPSOLVKPHQW WKDW WKH\ ZLOO UHDFK LQ OLIH GHSHQGV YHU\ PXFK RQ WKH
TXDOLW\ DQG W\SH RI HGXFDWLRQ WKH\ UHFHLYH DV ZHOO DV RQ WKH WUHDWPHQW DW
KRPHDQGLQWKHFRPPXQLW\0DQ\RIWKHHGXFDEOHUHWDUGDWHVPD\UHDFKWK
RUWKJUDGHHGXFDWLRQDOOHYHODQGFDQGHYHORSRFFXSDWLRQDOVNLOOVZKLFKPD\
UHVXOWLQSDUWLDORUFRPSOHWHHFRQRPLFLQGHSHQGHQFHLQDGXOWKRRG

 %RUGHUOLQHRU/RZ1RUPDO*URXS7KLVLVWKHKLJKHVWJURXSRIPHQWDOO\
UHWDUGHG ZLWK ,4V IURP DERXW  WR DERXW   7KH PHPEHUV RI WKLV
FODVVLILFDWLRQDUHRQO\VOLJKWO\UHWDUGHGDQGWKH\FDQXVXDOO\JHWE\LQUHJXODU
FODVVHV LI WKH\ UHFHLYH VRPH H[WUD KHOS JXLGDQFH DQG FRQVLGHUDWLRQ  7KH\
KDYH WR VSHQG PXFK PRUH WLPH ZLWK WKHLU VWXGLHV WKDQ GR PRVW FKLOGUHQ LQ
RUGHUWRSDVV7KRVHZKRFDQQRWPDNHLWDUHXVXDOO\KDQGLFDSSHGE\RQHRU
PRUHRWKHUFRQGLWLRQVDVLGHIURPWKDWRILQWHOOLJHQFH

$57   3K\VLFDOO\ +DQGLFDSSHG &KLOGUHQ   3K\VLFDOO\ DQG KDQGLFDSSHG

FKLOGUHQ DUH WKRVH ZKR DUH FULSSOHG GHDI PXWH EOLQG RU RWKHUZLVH GHIHFWLYH ZKLFK
UHVWULFWVWKHLUPHDQVRIDFWLRQRUFRPPXQLFDWLRQZLWKRWKHUV

$57(PRWLRQDOO\'LVWXUEHG&KLOGUHQ(PRWLRQDOO\GLVWXUEHGFKLOGUHQDUH
WKRVH ZKRDOWKRXJKQRWDIIOLFWHGZLWKLQVDQLW\RUPHQWDOGHIHFWDUHXQDEOHWRPDLQWDLQ
QRUPDO VRFLDO UHODWLRQV ZLWK RWKHUV DQG WKH FRPPXQLW\ LQ JHQHUDO GXH WR HPRWLRQDO
SUREOHPVRUFRPSOH[HV

$57   $GPLVVLRQ RI 'LVDEOHG &KLOGUHQ   0HQWDOO\ LOO FKLOGUHQ DUH WKRVH
ZLWKDQ\EHKDYLRUDOGLVRUGHUVZKHWKHUIXQFWLRQDORURUJDQLFZKLFKLVRIVXFKDGHJUHHRI
VHYHULW\DVWRUHTXLUHSURIHVVLRQDOKHOSRUKRVSLWDOL]DWLRQ

$57$GPLVVLRQRI'LVDEOHG&KLOGUHQ7KH'HSDUWPHQWRI6RFLDO:HOIDUH
XSRQ WKH DSSOLFDWLRQ RI WKH SDUHQWV DQG JXDUGLDQV DQG WKH UHFRPPHQGDWLRQ RI DQ\
UHSXWDEOH GLDJQRVWLF FHQWHU RU FOLQLF VKDOO UHIHU DQGRU DGPLW GLVDEOHG FKLOGUHQ WR DQ\
SXEOLFRUSULYDWHLQVWLWXWLRQSURYLGLQJWKHSURSHUFDUHWUDLQLQJDQGUHKDELOLWDWLRQ

'LVDEOHG FKLOGUHQ DUH XVHG LQ WKLV &KDSWHU VKDOO LQFOXGH PHQWDOO\ UHWDUGHG
SK\VLFDOO\KDQGLFDSSHGHPRWLRQDOO\GLVWXUEHGDQGVHYHUHPHQWDOO\LOOFKLOGUHQ


3UHVLGHQWLDO'HFUHH1R



$57   7UDLQLQJ DQG 2SSRUWXQLWLHV IRU 'LVDEOHG &KLOGUHQ  6SHFLDOL]HG

HGXFDWLRQDOVHUYLFHVVKDOOEHH[SDQGHGDQGLPSURYHGWRSURYLGHDSSURSULDWHRSSRUWXQLWLHV
IRU GLVDEOHG FKLOGUHQ  9RFDWLRQDO UHKDELOLWDWLRQ DQG PDQSRZHU FRQVHUYDWLRQ DJHQFLHV
VKDOO WUDLQ GLVDEOHG FKLOGUHQ IRU VSHFLDOL]HG W\SHV RI MREV VHUYLFHV DQG EXVLQHVV ZKLFK
FRXOG EH OHDUQHG RQO\ E\ WKHP DQG VKDOO KHOS SURYLGH RSSRUWXQLWLHV IRU WKHLU IXWXUH
RFFXSDWLRQDO SODFHPHQW  3URYLGHG  7KDW DJHQFLHV DQG RUJDQL]DWLRQV HQJDJHG LQ
SURJUDPV DQGVHUYLFHVIRUWKHGLVDEOHGQHHGQRWEHOLPLWHGWRPLQRUV3HUVRQVRIOHJDO
DJHPD\EHDGPLWWHGZKHQHYHUIDFLOLWLHVDUHDYDLODEOHIRUWKHP

$573ODQQLQJRI3URJUDPVDQG6HUYLFHV6HOHFWHGSLORWGHPRQVWUDWLRQ
SURMHFWV QHHGHG E\ WKH GLVDEOHG FKLOGUHQ VKDOO EH GHYHORSHG DQG VKDOO EH WKH EDVLV IRU
SODQQLQJ H[SDQGHG SURJUDPV DQG VHUYLFHV WKURXJKRXW WKH QDWLRQ  7KHUH VKDOO EH
HVWDEOLVKHG DUHD FHQWHUV GHVLJQHG WR EULQJ WRJHWKHU DQ DJJUHJDWH RI VHUYLFHV WR VHUYH DOO
DJHVRIWKHGLVDEOHGZLWKLQDVSHFLILHGJHRJUDSKLFDODUHD

$57   'RQDWLRQV  'RQDWLRQV WR DJHQFLHV DQG RUJDQL]DWLRQV HQJDJHG LQ
SURJUDPV DQG VHUYLFHV IRU GLVDEOHG FKLOGUHQ VKDOO EH GHGXFWLEOH LQ DFFRUGDQFH ZLWK WKH
SURYLVLRQRI3UHVLGHQWLDO'HFUHH1R

$57   3HWLWLRQ IRU &RPPLWPHQW  :KHUH D FKLOG DSSHDUV WR EH PHQWDOO\
UHWDUGHG SK\VLFDOO\ KDQGLFDSSHG HPRWLRQDOO\ GLVWXUEHG RU PHQWDOO\ LOO DQG QHHGV
LQVWLWXWLRQDO FDUH EXW KLV SDUHQWV RU JXDUGLDQV DUH RSSRVHG WKHUHWR WKH 'HSDUWPHQW RI
VRFLDO:HOIDUHRUDQ\GXO\OLFHQVHGFKLOGSODFHPHQWDJHQF\RULQGLYLGXDOVKDOOKDYHWKH
DXWKRULW\ WR ILOH D SHWLWLRQ IRU FRPPLWPHQWRIWKHVDLGFKLOGWRDQ\UHSXWDEOHLQVWLWXWLRQ
SURYLGLQJFDUHWUDLQLQJDQGUHKDELOLWDWLRQIRUGLVDEOHGFKLOGUHQ

7KH SDUHQWV RU JXDUGLDQ RI WKH FKLOG PD\ ILOH D VLPLODU SHWLWLRQ LQ FDVH QR
LPPHGLDWHSODFHPHQWFDQEHDUUDQJHGIRUWKHGLVDEOHGFKLOGZKHQWKHZHOIDUHDQGLQWHUHVW
RIFKLOGLVDWVWDNH

$57   9HQXH  7KH SHWLWLRQ IRU FRPPLWPHQW RI D GLVDEOHG FKLOG VKDOO EH
ILOHG ZLWK WKH -XYHQLOH DQG 'RPHVWLF 5HODWLRQV &RXUW LI DQ\ RU ZLWK WKH FRXUW RI )LUVW
,QVWDQFHRIWKHSURYLQFHRU&LW\&RXUWZKHUHWKHSDUHQWRUJXDUGLDQUHVLGHVRUZKHUHWKH
FKLOGLVIRXQG

$57&RQWHQWVRI3HWLWLRQ7KHSHWLWLRQIRUFRPPLWPHQWPXVWVWDWHVRIDU
DVNQRZQWRWKHSHWLWLRQHU

 7KH IDFWV VKRZLQJ WKDW WKH FKLOG DSSHDUV WR EHPHQWDOO\UHWDUGHGSK\VLFDOO\
KDQGLFDSSHG HPRWLRQDOO\ GLVWXUEHG RU PHQWDOO\ LOO DQG QHHGV LQVWLWXWLRQDO
FDUH

 7KH IDFW WKDW WKH SDUHQWV RU JXDUGLDQ RU DQ\ GXO\ OLFHQVHG GLVDEOHG FKLOG
SODFHPHQWDJHQF\DVWKHFDVHPD\EHKDVRSSRVHGWKHFRPPLWPHQWRIVXFK
FKLOG

3UHVLGHQWLDO'HFUHH1R






 7KHQDPHRIWKHSDUHQWVDQGWKHLUUHVLGHQFHLINQRZQRULIWKHFKLOGKDVQR
SDUHQWVRUSDUHQWOLYLQJWKHQDPHVDQGWKHUHVLGHQFHRIWKHJXDUGLDQLIDQ\
DQG
 7KHQDPHRIWKHLQVWLWXWLRQZKHUHWKHFKLOGLVWREHFRPPLWWHG

7KHSHWLWLRQVKDOOEHYHULILHGDQGVKDOOEHVXIILFLHQWLIEDVHGXSRQWKHLQIRUPDWLRQ
DQGEHOLHIRIWKHSHWLWLRQHU

$57   2UGHU RI +HDULQJ   ,I WKH SHWLWLRQ ILOHG LV VXIILFLHQW LQ IRUP DQG
VXEVWDQFHWKHFRXUWE\DQRUGHUUHFLWLQJWKHSXUSRVHRIWKHSHWLWLRQVKDOOIL[WKHGDWHIRU
WKH KHDULQJWKHUHRIDQGDFRS\RIVXFKRUGHUVKDOOEHVHUYHGRQWKHFKLOGDOOHJHGWREH
PHQWDOO\ UHWDUGHG RU SK\VLFDOO\ KDQGLFDSSHG RU HPRWLRQDOO\ GLVWXUEHG RU PHQWDOO\ LOO
DQGRQWKHSHUVRQKDYLQJFKDUJHRIKLPRUDQ\RIKLVUHODWLYHVUHVLGLQJLQWKHSURYLQFHRU
FLW\ DV WKH MXGJH PD\ GHHP SURSHU  7KH FRXUW VKDOO IXUWKHUPRUH RUGHU WKH VKHULII WR
SURGXFHLISRVVLEOHWKHDOOHJHGGLVDEOHGFKLOGRQWKHGDWHRIWKHKHDULQJ

$57+HDULQJDQG-XGJPHQW8SRQVDWLVIDFWRU\SURRIWKDWWKHLQVWLWXWLRQDO
FDUH RI WKH FKLOG LV IRU KLP RU WKH SXEOLF ZHOIDUH DQG WKDW KLV SDUHQWV RU JXDUGLDQ RU
UHODWLYHVDUHXQDEOHIRUDQ\UHDVRQWRWDNHSURSHUFDUHRIKLPWKH&RXUWVKDOORUGHUKLV
FRPPLWPHQWWRWKHSURSHULQVWLWXWLRQIRUGLVDEOHGFKLOGUHQ

$57   'LVSRVLWLRQ RI 3URSHUW\ RU 0RQH\  7KH &RXUW LQ LWV RUGHU RI
FRPPLWPHQW VKDOO PDNH SURSHU SURYLVLRQV IRU WKH FXVWRG\ RI SURSHUW\ RU PRQH\
EHORQJLQJWREHFRPPLWWHGFKLOG

$57)LQGLQJVDQG2WKHU'DWD7KH&RXUWVKDOOIXUQLVKWKHLQVWLWXWLRQWR
ZKLFK WKH FKLOG KDV EHHQ FRPPLWWHG ZLWK D FRS\ RI LWV MXGJPHQW WRJHWKHU ZLWK DOO WKH
VRFLDODQGRWKHUGDWDSHUWLQHQWWRWKHFDVH

$57   ([SHQVHV  7KH H[SHQVH RI PDLQWDLQLQJ D GLVDEOHG FKLOG LQ WKH
LQVWLWXWLRQ WR ZKLFK KH KDV EHHQ FRPPLWWHG VKDOO EH ERUQH SULPDULO\ E\ WKH SDUHQWV RU
JXDUGLDQDQGVHFRQGDULO\E\VXFKGLVDEOHGFKLOGLIKHKDVSURSHUW\RIKLVRZQ

,Q DOO FDVHV ZKHUH WKH H[SHQVHV IRU WKH PDLQWHQDQFH IRU WKH GLVDEOHG FDQQRW EH
SDLG LQDFFRUGDQFHZLWKWKHQH[WSUHFHGLQJSDUDJUDSKWKHVDPHRUVXFKSDUWWKHUHRIDV
PD\UHPDLQXQSDLGVKDOOEHERUQHE\WKH'HSDUWPHQWRI6RFLDO:HOIDUH

$57&KLOGUHQ:LWK&HUHEUDO3DOV\&KLOGUHQDIIOLFWHGZLWKFHUHEUDOSDOV\
VKDOOEHFRPPLWWHGWRWKHLQVWLWXWLRQZKLFKXQGHUWKHFLUFXPVWDQFHVRIWKHSDUWLFXODUFKLOG
FRQFHUQHGLVEHVWHTXLSSHGWRWUHDWDQGFDUHIRUKLP

$57'LVFKDUJHRI&KLOG-XGLFLDOO\&RPPLWWHG7KH&RXUWVKDOORUGHUWKH
GLVFKDUJHRIDQ\FKLOGMXGLFLDOO\FRPPLWWHGWRWKHLQVWLWXWLRQIRUGLVDEOHGFKLOGUHQLILWLV
FHUWLILHGE\WKH'HSDUWPHQWRI6RFLDO:HOIDUHWKDW

3UHVLGHQWLDO'HFUHH1R






 +HKDVEHHQFHUWLILHGE\WKHGXO\OLFHQVHGGLVDEOHGFKLOGSODFHPHQWDJHQF\WR
EHQRORQJHUDKD]DUGWRKLPVHOIRUWRWKHFRPPXQLW\

 +H KDV EHHQ VXIILFLHQWO\ UHKDELOLWDWHG IURP KLV SK\VLFDO KDQGLFDS RU LI RI
ZRUNDJHLVDOUHDG\ILWWRHQJDJHLQDJDLQIXORFFXSDWLRQRU
 +HDKVEHHQUHOLHYHGRIKLVHPRWLRQDOSUREOHPVDQGFRPSOH[HVDQGLVUHDG\
WRDVVXPHQRUPDOVRFLDOUHODWLRQV

$57   'LVFKDUJH RI &KLOG 9ROXQWDULO\ &RPPLWWHG  $Q\ FKLOG YROXQWDULO\
FRPPLWWHGWRDQLQVWLWXWLRQIRUGLVDEOHGFKLOGUHQPD\EHGLVFKDUJHGE\WKH'HSDUWPHQWRI
6RFLDO:HOIDUHPRWXSURSULRRUXSRQWKHUHTXHVWRIKLVSDUHQWVRUJXDUGLDQRQDQ\RIWKH
JURXQGV VSHFLILHG LQ WKH SUHFHGLQJ DUWLFOH  ,Q WKH ODWWHU FDVH WKH 'HSDUWPHQW RI 6RFLDO
:HOIDUH PD\ UHIXVH WR GLVFKDUJH WKH FKLOG LI LQ LWV RSLQLRQ KLV UHOHDVH ZRXOG EH
SUHMXGLFLDOWRKLPRUWRWKHFRPPXQLW\

$57$VVLVWDQFHRI)LVFDO7KHSURYLQFLDORUFLW\ILVFDOVKDOOUHSUHVHQWWKH
'HSDUWPHQWRI6RFLDO:HOIDUHRUDQ\UHFRJQL]HGOHJDODVVRFLDWLRQLQDOOMXGLFLDOPDWWHUV
DULVLQJXQGHUWKHSURYLVLRQVRIWKLV&KDSWHU



$57  &LYLO /LDELOLW\ RI <RXWKIXO 2IIHQGHUV  7KH FLYLO OLDELOLW\ IRU DFWV
FRPPLWWHGE\D\RXWKIXORIIHQGHUVKDOOGHYROYHXSRQWKHRIIHQGHUVIDWKHUDQGLQFDVHRI
KLVGHDWKRULQFDSDFLW\XSRQWKHPRWKHURULQFDVHRIKHUGHDWKRULQFDSDFLW\XSRQWKH
JXDUGLDQ&LYLOOLDELOLW\PD\DOVREHYROXQWDULO\DVVXPHGE\DUHODWLYHRUIDPLO\IULHQGRI
WKH\RXWKIXORIIHQGHU




'RQHLQWKH&LW\RI0DQLODWKLVWKGD\RI'HFHPEHULQWKH\HDURI2XU/RUG
QLQHWHHQKXQGUHGDQGVHYHQW\IRXU


3UHVLGHQWLDO'HFUHH1R