6HUYLFH

6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

&KDSWHU  (QJLQH 6WUXFWXUH

)HDWXUHV

&\OLQGHU
&\OLQGHU &RYHU 6WUXFWXUH

)HDWXUHV

([KDXVWDLUGXFW
6SDUNSOXJ
,QOHWDLUGXFW
3LVWRQ

&\OLQGHUFRYHULVPDGHRIKRUQLQHVV
DOXPLQLXPDOOR\ZKLFKLVILUVWO\
ORZSUHVVXUHPROWHQ DQG WKHQ
PDFKLQLQJ
&DPEHDULQJKROH )RXUYDOYHVWUXFWXUHLVDSSOLHGDQG
6SDUNSOXJSLSH LWV DGYDQWDJH LV LQFUHDVLQJ
,QOHWDLUGXFW HPLVVLRQ FKDQQHO DUHD DQG
GHFUHDVLQJYDOYHPRYHPHQWLQHUWLD
&\OLQGHU&XVKLRQ6WUXFWXUH
&\OLQGHU&XVKLRQ6WUXFWXUH

$JLOH ILEHUERDUG VWUXFWXUH LV

DSSOLHG 0DQ\ PPGLDPHWHU
WKURXJK KROHV DUH SUHVVHG LQ WKH
VWHHOERDUGDQGILEHUOLTXLGPL[WXUH
LVILOWHUHGWKURXJKVWHHOERDUG$QG
WKHQ VHDODQW LV VSUD\HG RQ ERWK
VLGHV RI DJLOH EURDG DQG WKH
LPSRUWDQW SDUW LV DGGLWLRQDOO\
VSUD\HGZLWKVHDOWKUHDG
6SDUN3OXJ3RVLWLRQ
6SDUN3OXJ3RVLWLRQ
6SDUNSOXJLVORFDWHGLQWKHFHQWHU
RI FKDPEHU ZKLFK PD\ OHW IODPH
UHDFKHDFKFKDPEHUFRUQHUDWDOPRVW
WKHVDPHWLPH


 6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

0DLQRLOWXEH
&\OLQGHU0DLQ%HDULQJ&DS
 &\OLQGHU0DLQ%HDULQJ&DS +RUL]RQWDORLOSLSHIURPFOHDQHUWR
PDLQRLOWXEH
+RUL]RQWDORLOSLSHIURPRLOSXPS
WRFOHDQHU

,QWHJUDWHGPDLQEHDULQJFDS

LV DSSOLHG ZKLFK PD\

LQFUHDVH HQJLQH RSHUDWLRQ

ULJLGLW\ REVHUYH DQG

GLVWULEXWH HIILFLHQWO\

SHULRGLF YLDEOH IRUFH

&\OLQGHU JHQHUDWHGE\FUDQNUXQQLQJ
0DLQEHDULQJFDS
DQGHQVXUHHQJLQHVWDEOHDQG

VPRRWKUXQQLQJDWKLJKVSHHG

2L
2LO7XEH)HDWXUHV
2LO7XEH)HDWXUHV ODUJHORDGRUODUJHWRUTXH

 ǃ 0RGXODU RLO SLSH LV

DSSOLHG7KHZKROHRLOSLSH

FRQVLVWVRIWKHKDOIRLOSLSH

FDVWRQF\OLQGHUERG\DQGWKH

RWKHU KDOI RQ IURQW HQG

FRYHU


 6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

8SSHUEDODQFHD[OHERUH
7RPDLQRLOWXEH
+RUL]RQWDORLOSLSHIURPRLOSXPSWRFOHDQHU
+RUL]RQWDORLOSLSHIURPFOHDQHUWRPDLQRLO
WXEH
)LUVWPDLQEHDULQJKROHWREDODQFHD[OH 8SSHUEDODQFHD[OH
/RZHUEDODQFHD[OHERUH )URQWHQGFRYHUSDG
)URQWHQGFRYHU
&OHDQHUVHDW
&OHDQHU
3UHVVXUHOLPLWLQJYDOYH
'ULYHQJHDU
2LOVHDO
&\OLQGHU
/RZHUEDODQFHD[OH
&ROOHFWLQJILOWHU
2LOSXPSUHDUFRYHU
2LOSXPSGULYHJHDU

ǃ7KHUHLVDYHUWLFDORLOSLSHLQ
WKH UHDU HQG RI F\OLQGHU FRYHU
ZKLFK SURYLGHV OXEULFDQW WR DLU
URFNHULQVWDOODWLRQVORW GLVWULEXWLRQPHFKDQLVP
YHUWLFDORLOSLSH
&\OLQGHUFRYHU 7KHIURQWHQGFRYHULVPDGHRIPROWHQ
&DPVKDIWEHDULQJKROH KRUQLQHVVDOXPLQXPPHWDO2LOSXPS
&\OLQGHUFRYHUEROWERUH DQGFOHDQHUV\VWHPDUHORFDWHGRQ
3URFHVVSOXJ WKH IURQW HQG FRYHU V ERDUG 7KH
+RUL]RQWDORLOSLSH FRYHUERDUGLWVHOILVIURQWKRXVLQJ
&\OLQGHUYHUWLFDORLOSLSH RIRLOSXPS
&\OLQGHU

)URQW(QG&RYHU)HDWXUHV
)URQW(QG&RYHU)HDWXUHV


 6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ
EDODQFHD[OHRLOVHDODUHSUHVVHG
DQGIL[HGRQIURQWFRYHUERDUG
7KHF\OLQGHUIURQWHQGLVFRPELQHG
DVKRUL]RQWDORLOSLSHDQGWKHUHLV
DQRLOSLSHWROXEULFDWHWKHUHDU
EHDULQJRIORZHUEDODQFHD[OH
%RWKXSSHUDQGORZHUEDODQFHD[OHV
DUH VXSSRUWHG E\ IURQW HQG FRYHU
ERDUG/RZHUEDODQFHD[OHLVDOVR
)URQWHQGFRYHU GULYHQD[OHRIRLOSXPS
8SSHUEDODQFHD[OH
2LOVHDOVHDW
/RZHUEDODQFHD[OH &UDQNVKDIWLVPDGHRIIRUJHGFDUERQ
VWHHOZKLFKVXUIDFHLVPDFKLQLQJ
&UDQN&RQQHFWLQJ5RG0HFKDQLVP
&UDQN&RQQHFWLQJ5RG0HFKDQLVP SURFHVVHG
7KHORFDWLRQRIFUDQNVKDIWRLOSLSH
LVDVVKRZQ
&UDQNVKDIW LV IXOOEDODQFH W\SH
WKDWLV%DODQFH1XPEHU 1XPEHURI
&\OLQGHUVh

7KHURWDU\UDGLXVRIFUDQNVKDIWPDLQ
D[OH FHQWHU DQG FUDQNVKDIW SLQ
FHQWHULVVHSDUDWHO\˄*˅
ˈ
˄*˅
0DLQD[OHGLDPHWHUPPǃ&RQQHFWLQJ
3URFHVVSOXJ URGGLDPHWHUPP˄7KHGLDPHWHURI
0DLQMRLQWMRXUQDOFRQQHFWLQJRLOSLSH *DQGLVVDPH˅
˗
%DODQFHQXPEHU
5HDUHQGIODQJH 7KHUHDUHQGIODQJHLVWKLFNHQHGDV
RLOVHDOWRSDQGGRQ WLPSDFWLW
6HYHQ IO\ZKHHO EROWV DUH SDUW
GLVWULEXWHGDQGWKHUHLVDIO\ZKHHO
ORFNLQJSLQ

$OLJQPHQWPDUNFRQQHFWLQJZLWKIO\ZKHHO
&RQQHFWLQJEROWERUH
FRORUPDUNPDWFKLQJEHDULQJWLOH

)URQWFUDQNRLOVHDORLOSXPSVHDODQGXSSHU


 6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

,W LV PDGH RI PROWHQ KRUQLQHVV

3LVWRQ6WUXFWXUH)HDWXUHV
3LVWRQ6WUXFWXUH)HDWXUHV
DOXPLQXP ZKLFK KDV EHHQ VXUIDFH
SURFHVVHG
7KHUHLVDURXQGQHVVFRQFDYHRQWKH
WRSZKLFKPDNHVFKDPEHUFRPSDFWHG
GHFUHDVHV )9 YDOXH UHGXFHV
QRFXRXVQHVV HPLVVLRQ LQFUHDVHV
SRZHUDQGGHFUHDVHVRLOFRQVXPSWLRQ
7KHUHLVYDOYHSLWRQWKHULJKWVLGH
RI SLVWRQ ZKLFK PDNHV FKDPEHU
VWUXFWXUHPRUHLPSDFWHG

)RUZDUGPDUN
9DOYHSLW

7KHUHDUHWZRDLUULQJVORWVDQGRQH
RLOULQJVORW$RLOUHWXUQKROHLV
GULOOHGLQWKHRLOULQJVORWZKLFK
OXEULFDWH SLVWRQ SLQ PDWLQJ DQG
UHGXFHG\QDPLFSUHVVXUHRIRLOULQJ

QG
VW DLUULQJVORW
2LOUHWXUQKROH
2LOULQJVORW

7KHUHLVRLOVORWLQWKHLQVLGHXSSHU
RISLVWRQSLQVHDWLQJZKLFKFROOHFW
VSODVKRLOWROXEULFDWHSLVWRQSLQ
PDWLQJ

OXEULFDQWFKDQQHO
3LVWRQSLQKROH


6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

$XWRPDWLF7HQVLRQHU
$XWRPDWLF7HQVLRQHU 
 $LU

'LVWULEXWLRQ

0HFKDQLVP

([KDXVWYDOYHURFNHUDUP

([KDXVWYDOYHURFNHUDUP

,QWDNHYDOYHURFNHUDUP

2SHUDWLQJIRUFH11 &LUFOLS

,QWDNHYDOYH

7KHWUXQNSLVWRQFRPSUHVVLRQPPXQGHU URFNHUDUP

WKHRSHUDWLQJIRUFHRI11

PPIUHHRYHUKDQJ

OLTXLGVWRUHFKDPEHU

2LOVHDO

6SDFLQJULQJ

7UXQNSLVWRQ $XWRPDWLFWHQVLRQHULVWR

&KHFNYDOYH PDNHWLPLQJEHOWWHQVLRQHG

([SDQGLQJVSULQJ ,QDQRSHUDWLRQF\FOHWKH

:RUNLQJFKDPEHU EHOW WHQVLRQ LV QRW


6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

FRQVWDQW DQG FKDQJLQJ SHULRGLFDOO\ ODWWHU ZLOO LQMHFW

:LWK XVDJH WLPH LQFUHDVLQJ DQG EHOW LQFRPLQJRLOIURPURFNHUWR

DJLQJ WHQVLRQHU PD\ EH WHQVLRQHG OXEULFDWHDLUGLVWULEXWLRQ

DXWRPDWLFDOO\WRSUHYHQWEHOWVOLGLQJ PHFKDQLVP

DQG DIIHFW HQJLQH DLU GLVWULEXWLRQ

SKDVH
,QWDNHYDOYHURFNHUDUP

,GOHUZKHHO

,QWDNHYDOYHURFNHUDUP

,GOHUZKHHO

7KHWZRKROORZURFNHURIRLOKROHFDQ

QHLWKHUEHH[FKDQJHGQRUEHUHYHUVHO\

LQVWDOOHG

(LJKW LQWDNH YDOYH URFNHU DUPV DUH

GLYLGHG LQWR JURXS $ DQG % ZLWKRXW

H[FKDQJH )RXU H[KDXVW YDOYH URFNHU

DUPV DUH H[FKDQJHDEOH 7KH %HDULQJMRXUQDO

LQWDNHH[KDXVWYDOYHURFNHUDUPVDUH
%HDULQJMRXUQDO
PDGH RI DOXPLQXP PHWDO ZKLFK PD\

GHFUHDVHZHLJKWUHGXFHFUDQNVKDIWFDP

ORDGH[WHQGLWVOLIHWLPHDQGLPSURYH

HQJLQHSHUIRUPDQFHDQGIXHOHFRQRPLFV

7KHUHDUHRLOSLSHDQGRLOLQMHFWLRQKROH

ZKLFKDUHVXSSRUWHGE\K\GUDXOLFSROHLQ

LQWDNHH[KDXVWYDOYHURFNHUDUPV7KH


6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

8SSHUVLWHRIVSULQJV

&RORULGHQWLILFDWLRQ
7KH YDOYH VSULQJ LV
9DOYHVSULQJ
QRQLVRPHWU\ VWUXFWXUH
9DOYHJXLGH
ZKLFK PD\ SUHYHQW
9DOYHRLOVHDO
V\PSDWKHWLFYLEUDWLRQDQG
/RZHUVLWHRIVSULQJV
UXSWXUH 3OHDVH QRWLFH

WKDW WKH FRORUPDUNHG

VKRXOGEHXSZDUGVDQGWKH

ODUJHUGLVWDQWLVXSZDUGV

6SULQJ VHFWLRQ LV

6SLUDOLQQHUVLGH
HOOLSWRLG ZKLFK VXUIDFH
6SLUDORXWHUVLGH
LVVKRWEODVWLQJSURFHVVHG

WR LPSURYH IDWLJXH

UHVLVWDQFH

,GOHUZKHHOURFNHUDUPLVDGRSWHG
LQWKHURFNHUDUPVRDVWRUHGXFH
WKHDEUDVLRQEHWZHHQFDPVKDIWFDP
DQGURFNHUDUP

&DPVKDIWLVPDGHRIVSKHURLGDOJUDSKLWH

LURQRISRLQWEHDULQJDQGQRVSHFLDO

EHDULQJ


6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

:RUNLQJ VXUIDFH ZLGWK

PP

7KH YDOYH LV RI XPEUHOOD

VWUXFWXUH 7KH LQWDNH

YDOYH LV VLPLODU WR WKH

H[KDXVWYDOYHEXWWKHVL]H
9DOYH
RIWKHIRUPHULVDOLWWOH

ELJJHUWKDQWKHODWHU(DFK
,QOHWYDOYHLVOLPLWLVPP
F\OLQGHULVRIIRXUYDOYH

VWUXFWXUH ZKLFK PD\

LPSURYH HPLVVLRQ
([KDXVWYDOYHLVPPOLPLWLVPP
HIILFLHQF\ GHFUHDVH

ZHLJKW DQG LQHUWLD

UHVLVWDQFHDQGH[WHQGWKH

OLIH WLPH RI YDOYH DQG

YDOYHVHDW%HVLGHVLWLW

LV RI EHQHILW IRU VSDUN

SOXJ DOORFDWLRQ ZKLFK

LPSURYHEXUQLQJHIILFLHQF\

DQG UHGXFH LQMXUDQW

HPLVVLRQ DQG IXHO

FRQVXPSWLRQ

9DOYH RLO VHDO LV RI

VWHHOVKHOI DQG
9DOYHVHDW
UXEEHUULQJVSULQJ

WHQVLRQVWUXFWXUH7KH


6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

3OHDVHQRWHWKDWDOLJQWKH

PDUNVRIFUDQNVKDIW%EHOWJHDU

DQGIURQWHQGFRYHUDQGWKHPDUNV
7LPLQJ*HDUV7UDLQ
 7LPLQJ*HDUV7UDLQ
RIXSSHUOHIWEDODQFHD[OHEHOW
8SSHU %DODQFH $[OH %HOW
JHDU DQG IURQW HQG FRYHU ZKHQ

)LWWLQJ0DUN LQVWDOOLQJ OHIW EDODQFH D[OH

EHOWJHDUZKLFKLVDVVKRZQ

7LPLQJ %HOW )LWWLQJ

0DUN

1RWFKDURXQGIURQWHQGFRYHU

7ULDQJOHVLJQRQWKHOHIWEDODQFHD[OH

EHOWJHDU

0DUNVRQIURQWHQGFRYHU

1RWFKRQWKHFUDQNVKDIWEHDULQJGLVF

7KHUHLVDQLQGHSHQGHQWWUDQVPLVVLRQ

EHOWRQWKHXSSHUOHIWEDODQFHD[OH

7HQVLRQ ZKHHO % LV ORFDWHG RQ WKH

0DUNVRQWKHFUDQNVKDIWEHOW
ORRVHQHG VLGH ZKLFK LV WR DGMXVW
JHDU
EHOW WHQVLRQ PDQXDOO\ 7KH WHHWK
1RWFKRQWKHYDOYHFRYHU
QXPEHURIGULYHJHDULVWHHWKDQG
0DUNVRQWKHIURQWHQGFRYHU
WKHWHHWKQXPEHURIGULYHQJHDULV
0DUNVRQWKHFUDQNVKDIWWLPLQJ

EHOWJHDU

0DUNVRQWKHRLOSXPSEHOWJHDU


 6HUYLFH
6HUYLFH0DQXDOIRU&KHU\g
&KHU\g7LJJR7
7LJJR7(QJLQH
7(QJLQH6HFWLRQ

2LO3XPS*HDUV0DUN

3OHDVH DOLJQ WKH PDUNV RI

GULYHGULYHQJHDUVZKHQLQVWDOOLQJ

RLOSXPSJHDUVDVVKRZQ

2LOSXPSGULYHQJHDU
0DUNVRQGULYHGULYHQJHDU
2LOSXPSGULYHJHDU

3OHDVHQRWHWKDWDOLJQWKHPDUNVRIFDPVKDIW

EHOW JHDU DQG YDOYH FRYHU WKH PDUNV RI

FUDQNVKDIWWLPLQJEHOWJHDUDQGIURQWHQGFRYHU

DQGWKHPDUNVRIRLOSXPSEHOWJHDUDQGIURQW

HQGFRYHUZKHQLQVWDOOLQJWLPLQJEHOW7KH

PPOHQJWKVFUHZGULYHPXVWEHLQVHUWHGLQWR

WKHORZHUEDODQFHWHVWKROHRWKHUZLVHWXUQ

DURXQGRLOSXPSEHOWJHDUDQGWKHQDOLJQWLPLQJ

PDUN


 6HUYLFH0DQXDOIRU
6HUYLFH0DQXDOIRU&KHU\
IRU&KHU\g
&KHU\g7LJJR7(
7LJJR7(Q
(QJLQH6HFWLRQ
JLQH6HFWLRQ


 /XEULFDWLRQ

6\VWHP 6WUXFWXUH

)HDWXUHV

)URQWHQGFRYHU

)URQWHQGFRYHUSDG

2LOSXPSUHDUFRYHU

2LOSXPSGULYHQJHDU

2LOSXPSGULYHJHDU

'ULYHQJHDU

'ULYHJHDU

2LOSXPSUHDUFRYHU

)URQWHQGFRYHU

2LOFOHDQHUVHDW

2LOFOHDQHU

&ROOHFWLQJILOWHU

/RZRLOKRXVLQJ


 6HUYLFH0DQXDOIRU
6HUYLFH0DQXDOIRU&KHU\
IRU&KHU\g
&KHU\g7LJJR7(
7LJJR7(Q
(QJLQH6HFWLRQ
JLQH6HFWLRQ

 VKRXOGEHFRQVLGHUHGZKHQGHVLJQLQJURWRU

SXPSEXWLWZLOOFRQVXPHSRZHUGXULQJORZ

ORDGLQJ

)LOWHUVHDWLQJ

*DVNHW

3UHVVXUHOLPLWLQJYDOYHSOXQJHU

6SULQJ

6SDFHU
2LO ILOWHU VHDWLQJ DQG SUHVVXUH
2LOILOWHU
OLPLWLQJ YDOYH  3UHVVXUH OLPLWLQJ
3OXJVFUHZ
YDOYHLVRISOXQJHUVSULQJVWUXFWXU
([WHUQDOJHDURLOSXPSLVDSSOLHG

DQGLWVRLOVXSSO\SHUIRUPDQFHLV

EHWWHUWKDQFXUUHQWURWRUSXPS7KH

HIILFLHQF\RIH[WHUQDOJHDUSXPSLV

KLJKWKDWLVWKHHIILFLHQF\RI

RLOVXSSO\LVSURSRUWLRQDOWRWKH

VSHHG ZKLFK PD\ VDWLVI\

ODUJHORDGRLOVXSSO\UHTXLUHPHQW

+RZHYHU LI URWRU SXPS VSHHG

LQFUHDVHWKHRLOSXPSHIILFLHQF\

ZLOOLQFUHDVHDWORZVSHHGEXWLW

ZLOOGURSJUDGXDOO\ZKHQWKHVSHHG

UHDFK PLGVSHHG DV VKRZQ ZKLFK

ZLOOFDXVHODFNRIODUJHORDGRLO

VXSSO\ 7KHUHIRUH ODUJH ORDG