[directive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´IXQFWLRQDO HTXLYDOHQWµ RI D SUH LQGLFWPHQW RIIHU ZKHUH D FRXQW\ GRHV QRW KDYH D SUH LQGLFWPHQW FDVH GLVSRVLWLRQ SURJUDP QRWZLWKVWDQGLQJ WKDW WKH GHIHQGDQW KDV DOUHDG\ EHHQ LQGLFWHG 6HH 3DUW ,,  ( DW SS )XUWKHUPRUH $SSOLFDWLRQ 1RWH DOUHDG\ PDNHV FOHDU WKDW D SURVHFXWRU PXVW ZLWKGUDZ DQ\ SHQGLQJ LQLWLDO SRVW LQGLFWPHQW SOHD RIIHU DQG UHSODFH LW ZLWK WKH IXQFWLRQDO HTXLYDOHQW RI D ´ILQDOµ SRVW LQGLFWPHQW SOHD RIIHU LI D FRXUW VFKHGXOHV DQ HYLGHQWLDO KHDULQJ ZLWKLQ WKH QRUPDO GD\ LQWHUYDO EHWZHHQ WKH LQLWLDO SRVW LQGLFWPHQW DQG ILQDO SRVW LQGLFWPHQW SOHD RIIHUV 6SHFLILFDOO\ $SSOLFDWLRQ 1RWH H[SUHVVO\ SURYLGHV WKDW LI VXFK D KHDULQJ LV FRQYHQHG WKH VHFRQG VWHS SOHD RIIHU PXVW DXWRPDWLFDOO\ EH ZLWKGUDZQ DQG EH UHSODFHG ZLWK WKH VR FDOOHG ´ILQDOµ SOHD RIIHU UHSUHVHQWLQJ WKH WKLUG DQG ILQDO VWHS LQ WKH WKUHH WLHUHG JUDGXDWHG SOHD V\VWHP 7KLV LQWHUSUHWDWLRQ ZDV GHHPHG QHFHVVDU\ WR GLVFRXUDJH ´D UDFH WR WKH FRXUWKRXVH WR FRQYHQH HYLGHQWLDU\ KHDULQJV ZLWKLQ WKH GD\ GHDGOLQH µ $SSO\LQJ WKLV VDPH SULQFLSOH ZKHUH D GHIHQGDQW HOHFWV WR H[HUFLVH KLV RU KHU ULJKW WR FRQWHVW WKH DGPLVVLELOLW\ RI HYLGHQFH DQG WKH FRXUW FRQYHQHV D SUHWULDO KHDULQJ RQ WKH GHIHQGDQW·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 ,,, & SS @ $ TXHVWLRQ KDV DULVHQ DV WR WKH PD[LPXP DOORZDEOH GRZQZDUG DGMXVWPHQW IRU FRPSOH[ SURWUDFWHG OLWLJDWLRQ LVVXHV XQGHU WKH $WWRUQH\ *HQHUDO·V 6HSWHPEHU 6XSSOHPHQWDO 'LUHFWLYH ZKLFK WRRN HIIHFW RQ 6HSWHPEHU 7KH 6XSSOHPHQWDO 'LUHFWLYH LQFOXGHV D WDEOH RQ S WKDW GLVSOD\V WKH PD[LPXP DXWKRUL]HG UHGXFWLRQV ZKLFK DUH EDVHG RQ WKH GHJUHH RI WKH SUHVHQW RIIHQVH DQG WKH GHIHQGDQW·V FULPLQDO KLVWRU\ FDWHJRU\ 6SHFLILFDOO\ D TXHVWLRQ KDV EHHQ UDLVHG FRQFHUQLQJ KRZ D SURVHFXWRU VKRXOG KDQGOH D FDVH LQYROYLQJ D YLRODWLRQ RI 1 - 6 $ & 'UXJ )UHH 6FKRRO =RQH ZKLFK LV JUDGHG DV D WKLUG GHJUHH FULPH ZKHUH WKH FDVH LQYROYHV D VHFRQG GHJUHH DPRXQW RI GUXJV 7KH RULJLQDO "%ULPDJHµ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