EXHIBIT 4.17





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                     CAPITAL SECURITIES GUARANTEE AGREEMENT


                                  HSBC USA Inc.


                               Dated as of [     ]


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                             CROSS-REFERENCE TABLE*

       Section of
   Trust Indenture Act                                          Section of
   of 1939, as amended                                     Guarantee Agreement
   -------------------                                     -------------------

        310(a)..................................................4.1(a)
        310(b)..................................................4.1(c), 2.8
        310(c)..................................................Inapplicable
        311(a)..................................................2.2(b)
        311(b)..................................................2.2(b)
        311(c)..................................................Inapplicable
        312(a)..................................................2.2(a)
        312(b)..................................................2.2(b)
        313.....................................................2.3
        314(a)..................................................2.4
        314(b)..................................................Inapplicable
        314(c)..................................................2.5
        314(d)..................................................Inapplicable
        314(e)..................................................1.1, 2.5, 3.2
        314(f)..................................................2.1, 3.2
        315(a)..................................................3.1(d), 3.2(a)
        315(b)..................................................2.7
        315(c)..................................................3.1
        315(d)..................................................3.1(d)
        316(a)..................................................1.1, 2.6, 5.4
        316(b)..................................................5.3
        316(c)..................................................9.2
        317(a)..................................................Inapplicable
        317(b)..................................................Inapplicable
        318(a)..................................................2.1(b)
        318(b)..................................................2.1
        318(c)..................................................2.1(a)


* This Cross-Reference Table does not constitute part of the Capital Securities
Guarantee Agreement.

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                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation.....................................1

                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application...................................5
SECTION 2.2 Lists of Holders of Securities.....................................5
SECTION 2.3 Reports by the Capital Securities Guarantee Trustee................5
SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee...........5
SECTION 2.5 Evidence of Compliance with Conditions Precedent...................6
SECTION 2.6 Events of Default; Waiver..........................................6
SECTION 2.7 Event of Default; Notice...........................................6
SECTION 2.8 Conflicting Interests..............................................6

                                   ARTICLE III

        POWERS, DUTIES AND RIGHTS OF CAPITAL SECURITIES GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Capital Securities Guarantee Trustee......7
SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee.............8
SECTION 3.3 Not Responsible for Recitals or Issuance of Capital Securities
               Guarantee......................................................10

                                   ARTICLE IV

                      CAPITAL SECURITIES GUARANTEE TRUSTEE

SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility.................11
SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
               Guarantee Trustee..............................................11

                                    ARTICLE V

                                    GUARANTEE

SECTION 5.1 Guarantee.........................................................12
SECTION 5.2 Waiver of Notice and Demand.......................................12
SECTION 5.3 Obligations Not Affected..........................................12
SECTION 5.4 Rights of Holders.................................................13
SECTION 5.5 Guarantee of Payment..............................................14
SECTION 5.6 Subrogation.......................................................14
SECTION 5.7 Independent Obligations...........................................14

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions........................................14
SECTION 6.2 Ranking...........................................................15

                                   ARTICLE VII

                                   TERMINATION

SECTION 7.1 Termination.......................................................15

                                  ARTICLE VIII

                                 INDEMNIFICATION

SECTION 8.1 Exculpation.......................................................15
SECTION 8.2 Indemnification...................................................16

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.1 Successors and Assigns............................................16
SECTION 9.2 Modification......................................................16
SECTION 9.3 Notices...........................................................17
SECTION 9.4 Benefit...........................................................18
SECTION 9.5 Governing Law.....................................................18

<PAGE>

                     CAPITAL SECURITIES GUARANTEE AGREEMENT

         This GUARANTEE AGREEMENT (the "Capital Securities Guarantee"), dated as
of [  ], is executed and delivered by HSBC USA Inc., a Maryland corporation (the
"Guarantor"), and Bankers Trust Company, a New York banking corporation, as
indenture trustee, for the benefit of the Holders (as defined herein) from time
to time of the Capital Securities (as defined herein) of HSBC USA Capital Trust
[  ], a Delaware statutory business trust (the "Issuer").

         WHEREAS, pursuant to a Declaration of Trust (the "Declaration," which
expression includes Annex I and Exhibits A-1 and A-2 thereto), dated as of [  ],
2002, among the Trustees, the Guarantor, as Sponsor, and the Administrators
named therein, the Issuer is issuing on the date hereof [  ] capital securities,
having an aggregate Liquidation Amount of $[  ], such capital securities being
designated the [  ]% Capital Securities (collectively the "Capital Securities").

         WHEREAS, as incentive for the Holders to purchase the Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Capital Securities Guarantee, to pay to the Holders
of the Capital Securities the Guarantee Payments (as defined below). The
Guarantor agrees to make certain other payments on the terms and conditions set
forth herein.

         WHEREAS, the Guarantor is executing and delivering a guarantee
agreement (the "Common Securities Guarantee"), with substantially identical
terms to this Capital Securities Guarantee, for the benefit of the holders of
the Common Securities (as defined herein).

         NOW, THEREFORE, in consideration of the purchase by each Holder of
Capital Securities, which purchase the Guarantor hereby acknowledges shall
benefit the Guarantor, the Guarantor executes and delivers this Capital
Securities Guarantee for the benefit of the Holders.

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

         SECTION 1.1 Definitions and Interpretation

         In this Capital Securities Guarantee, unless the context otherwise
requires:

         (a) capitalized terms used in this Capital Securities Guarantee but not
defined in the preamble above have the respective meanings assigned to them in
this Section 1.1;

         (b) terms defined in the Declaration as at the date of execution of
this Capital Securities Guarantee have the same meaning when used in this
Capital Securities Guarantee unless otherwise defined in this Capital Securities
Guarantee;

         (c) a term defined anywhere in this Capital Securities Guarantee has
the same meaning throughout;

         (d) all references to "the Capital Securities Guarantee" or "this
Capital Securities Guarantee" are to this Capital Securities Guarantee as
modified, supplemented or amended from time to time;

         (e) all references in this Capital Securities Guarantee to Articles and
Sections are to Articles and Sections of this Capital Securities Guarantee,
unless otherwise specified;

         (f) a term defined in the Trust Indenture Act has the same meaning when
used in this Capital Securities Guarantee, unless otherwise defined in this
Capital Securities Guarantee or unless the context otherwise requires; and

         (g) a reference to the singular includes the plural and vice versa.

         "Affiliate" has the same meaning as given to that term in Rule 405
under the Securities Act of 1933, as amended, or any successor rule thereunder.

         "Business Day" means any day other than a Saturday or a Sunday, or a
day on which banking institutions in New York, New York or Buffalo, New York are
authorized or required by law or executive order to close.

         "Capital Securities Guarantee Trustee" means Bankers Trust Company, a
New York banking corporation, until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment pursuant to the
terms of this Capital Securities Guarantee and thereafter means each such
Successor Capital Securities Guarantee Trustee.

         "Common Securities" means the undivided beneficial interests in the
assets of the Issuer, which rank pari passu with the Capital Securities;
provided, however, that if an Event of Default (as defined in the Declaration)
has occurred and is continuing, no payments in respect of Distributions (as
defined in the Declaration) on, or payments upon liquidation, redemption or
otherwise with respect to, the Common Securities shall be made until the holders
of the Capital Securities shall be paid in full the Distributions and the
liquidation, redemption and other payments to which they are entitled.

         "Corporate Trust Office" means the principal office of the Capital
Securities Guarantee Trustee at which the corporate trust business of the
Capital Securities Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this
Agreement is located at Bankers Trust Company, Four Albany Street, New York, New
York 10006, Attention: Corporate Market Services or at any other such address as
the Capital Securities Guarantee Trustee may designate from time to time by
notice to the parties hereto.

         "Covered Person" means any Holder or beneficial owner of Capital
Securities.

         "Debentures" means the series of subordinated debt securities of the
Guarantor designated the [  ]% Junior Subordinated Debentures due [  ] held by
the Property Trustee (as defined in the Declaration) of the Issuer.

         "Event of Default" means a default by the Guarantor on any of its
payment or other obligations under this Capital Securities Guarantee.

         "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Capital Securities, to the extent not
paid or made by the Issuer: (i) any accumulated and unpaid Distributions (as
defined in the Declaration) that are required to be paid on such Capital
Securities to the extent the Issuer has funds on hand legally available
therefor, (ii) the redemption price, including all accumulated and unpaid
Distributions to the date of redemption (the "Redemption Price") to the extent
the Issuer has funds on hand legally available therefor, with respect to any
Capital Securities called for redemption by the Issuer, and (iii) upon a
voluntary or involuntary termination and liquidation of the Issuer (other than
in connection with the distribution of Debentures to the Holders in exchange for
Capital Securities as provided in the Declaration), the lesser of (a) the
aggregate of the Liquidation Amount of and all accumulated and unpaid
Distributions on the Capital Securities to the date of payment, to the extent
the Issuer has funds on hand legally available therefor, and (b) the amount of
assets of the Issuer remaining available for distribution to Holders upon
liquidation of the Issuer.

         "Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor.

         "Indemnified Person" means the Capital Securities Guarantee Trustee,
any Affiliate of the Capital Securities Guarantee Trustee, or any officers,
directors, shareholders, members, partners, employees, representatives,
nominees, custodians or agents of the Capital Securities Guarantee Trustee.

         "Indenture" means the Junior Subordinated Indenture dated as of [  ],
among the Guarantor (the "Debenture Issuer") and Bankers Trust Company, as
trustee, pursuant to which the Debentures are to be issued to the Property
Trustee of the Issuer.

         "Majority in Liquidation Amount of the Capital Securities" means,
except as provided by the Trust Indenture Act, a vote by Holder(s) of Capital
Securities, voting separately as a class, of more than 50% of the aggregate
Liquidation Amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all Capital
Securities.

         "Officers' Certificate" means, with respect to any person, a
certificate signed by the Chairman, a Vice Chairman, the President, or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Guarantor.
Any Officers' Certificate delivered with respect to compliance with a condition
or covenant provided for in this Capital Securities Guarantee shall include:

         (a) a statement that each officer signing the Officers' Certificate has
read the covenant or condition and the definitions relating thereto;

         (b) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

         (c) a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.

         "Other Common Securities Guarantees" shall have the same meaning as
"Other Guarantees" has in the Common Securities Guarantee.

         "Other Debentures" means all junior subordinated debentures issued by
the Guarantor from time to time and sold to trusts established or to be
established by the Guarantor (if any), in each case similar to the Issuer.

         "Other Guarantees" means all guarantees to be issued by the Guarantor
with respect to capital securities (if any) similar to the Capital Securities
issued by other trusts established or to be established by the Guarantor (if
any), in each case similar to the Issuer.

         "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

         "Responsible Officer" means, with respect to the Capital Securities
Guarantee Trustee, any officer within the Corporate Trust Office of the Capital
Securities Guarantee Trustee, including any vice president, any assistant vice
president, director, any managing director, any associate or other officer of
the Corporate Trust Office of the Capital Securities Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer's knowledge of and familiarity with the particular subject.

         "Successor Capital Securities Guarantee Trustee" means a successor
Capital Securities Guarantee Trustee possessing the qualifications to act as
Capital Securities Guarantee Trustee under Section 4.1.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended.

         "Trust Securities" means the Common Securities and the Capital
Securities, collectively.

                                   ARTICLE II

                               TRUST INDENTURE ACT

         SECTION 2.1 Trust Indenture Act; Application

         (a) This Capital Securities Guarantee is subject to the provisions of
the Trust Indenture Act and shall, to the extent applicable to such an
indenture, be governed by such provisions; and

         (b) if and to the extent that any provision of this Capital Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Sections 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

         SECTION 2.2 Lists of Holders of Securities

         (a) The Guarantor shall provide the Capital Securities Guarantee
Trustee (unless the Capital Securities Guarantee Trustee is otherwise the
registrar of the Capital Securities) with a list, in such form as the Capital
Securities Guarantee Trustee may reasonably require, of the names and addresses
of the Holders of the Capital Securities ("List of Holders") as of such date,
(i) within one Business Day after [  ] 1 and [  ] 1 of each year, and (ii) at
any other time within 30 days of receipt by the Guarantor of a written request
for a List of Holders as of a date no more than 14 days before such List of
Holders is given to the Capital Securities Guarantee Trustee, provided that the
Guarantor shall not be obligated to provide such List of Holders at any time the
List of Holders does not differ from the most recent List of Holders given to
the Capital Securities Guarantee Trustee by the Guarantor. The Capital
Securities Guarantee Trustee may destroy any List of Holders previously given to
it on receipt of a new List of Holders.

         (b) The Capital Securities Guarantee Trustee shall comply with its
obligations under Sections 311(a), 311(b) and Section 312(b) of the Trust
Indenture Act.

         SECTION 2.3 Reports by the Capital Securities Guarantee Trustee

         Within 60 days after [  ] 15 of each year, commencing [  ] 15, [  ],
the Capital Securities Guarantee Trustee shall provide to the Holders of the
Capital Securities such reports as are required by Section 313 of the Trust
Indenture Act, if any, in the form and in the manner provided by Section 313 of
the Trust Indenture Act. The Capital Securities Guarantee Trustee shall also
comply with the requirements of Section 313(d) of the Trust Indenture Act.

         SECTION 2.4 Periodic Reports to Capital Securities Guarantee Trustee

         The Guarantor shall provide to the Capital Securities Guarantee Trustee
such documents, reports and information as required by Section 314 (if any) and
the compliance certificate required by Section 314 of the Trust Indenture Act in
the form, in the manner and at the times required by Section 314 of the Trust
Indenture Act. Delivery of such reports, information and documents to the
Capital Securities Guarantee Trustee is for informational purposes only and the
Capital Securities Guarantee Trustee's receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Guarantor's compliance with any of
its covenants hereunder (as to which the Capital Securities Guarantee Trustee is
entitled to rely exclusively on Officers' Certificates).

         SECTION 2.5 Evidence of Compliance with Conditions Precedent

         The Guarantor shall provide to the Capital Securities Guarantee Trustee
such evidence of compliance with any conditions precedent, if any, provided for
in this Capital Securities Guarantee that relate to any of the matters set forth
in Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer pursuant to Section 314(c)(1) may be given in
the form of an Officers' Certificate.

         SECTION 2.6 Events of Default; Waiver

         The Holders of a Majority in Liquidation Amount of Capital Securities
may, by vote, on behalf of the Holders of all of the Capital Securities, waive
any past Event of Default and its consequences. Upon such waiver, any such Event
of Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Capital Securities
Guarantee, but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon.

         SECTION 2.7 Event of Default; Notice

         (a) The Capital Securities Guarantee Trustee shall, within 90 days
after the occurrence of a default with respect to this Capital Securities
Guarantee, mail by first class postage prepaid, to all Holders of the Capital
Securities, notices of all defaults actually known to a Responsible Officer of
the Capital Securities Guarantee Trustee, unless such defaults have been cured
before the giving of such notice, provided that, except in the case of default
in the payment of any Guarantee Payment, the Capital Securities Guarantee
Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee, or a trust committee of directors
and/or a Responsible Officer or Officers of the Capital Securities Guarantee
Trustee in good faith determine that the withholding of such notice is in the
interests of the Holders of the Capital Securities.

         (b) The Capital Securities Guarantee Trustee shall not be deemed to
have knowledge of any Event of Default unless the Capital Securities Guarantee
Trustee shall have received written notice, or a Responsible Officer of the
Capital Securities Guarantee Trustee charged with the administration of the
Declaration shall have obtained actual knowledge, of such Event of Default.

         SECTION 2.8 Conflicting Interests

         The Declaration shall be deemed to be specifically described in this
Capital Securities Guarantee for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

                                   ARTICLE III

                          POWERS, DUTIES AND RIGHTS OF
                      CAPITAL SECURITIES GUARANTEE TRUSTEE

         SECTION 3.1 Powers and Duties of the Capital Securities Guarantee
Trustee

         (a) This Capital Securities Guarantee shall be held by the Capital
Securities Guarantee Trustee for the benefit of the Holders of the Capital
Securities, and the Capital Securities Guarantee Trustee shall not transfer this
Capital Securities Guarantee to any Person except to a Holder of Capital
Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Capital Securities Guarantee Trustee on acceptance by such Successor
Capital Securities Guarantee Trustee of its appointment to act as Successor
Capital Securities Guarantee Trustee. The right, title and interest of the
Capital Securities Guarantee Trustee shall automatically vest in any Successor
Capital Securities Guarantee Trustee, and such vesting and succession of title
shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Capital Securities
Guarantee Trustee.

         (b) If an Event of Default actually known to a Responsible Officer of
the Capital Securities Guarantee Trustee has occurred and is continuing, the
Capital Securities Guarantee Trustee shall enforce this Capital Securities
Guarantee for the benefit of the Holders of the Capital Securities.

         (c) The Capital Securities Guarantee Trustee, before the occurrence of
any Event of Default and after the curing of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Capital Securities Guarantee, and no implied covenants shall be
read into this Capital Securities Guarantee against the Capital Securities
Guarantee Trustee. In case an Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer of the Capital Securities Guarantee Trustee, the Capital Securities
Guarantee Trustee shall exercise such of the rights and powers vested in it by
this Capital Securities Guarantee, and use the same degree of care and skill in
its exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

         (d) No provision of this Capital Securities Guarantee shall be
construed to relieve the Capital Securities Guarantee Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

         (i) prior to the occurrence of any Event of Default and after the
    curing or waiving of all such Events of Default that may have occurred:

             (A) the duties and obligations of the Capital Securities Guarantee
         Trustee shall be determined solely by the express provisions of this
         Capital Securities Guarantee, and the Capital Securities Guarantee
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in this Capital
         Securities Guarantee, and no implied covenants or obligations shall be
         read into this Capital Securities Guarantee against the Capital
         Securities Guarantee Trustee; and

             (B) in the absence of bad faith on the part of the Capital
         Securities Guarantee Trustee, the Capital Securities Guarantee Trustee
         may conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon any certificates or
         opinions furnished to the Capital Securities Guarantee Trustee and
         conforming to the requirements of this Capital Securities Guarantee;
         but in the case of any such certificates or opinions that by any
         provision hereof are specifically required to be furnished to the
         Capital Securities Guarantee Trustee, the Capital Securities Guarantee
         Trustee shall be under a duty to examine the same to determine whether
         or not they conform to the requirements of this Capital Securities
         Guarantee;

         (ii) the Capital Securities Guarantee Trustee shall not be liable for
    any error of judgment made in good faith by a Responsible Officer of the
    Capital Securities Guarantee Trustee, unless it shall be proved that the
    Capital Securities Guarantee Trustee was negligent in ascertaining the
    pertinent facts upon which such judgment was made;

         (iii) the Capital Securities Guarantee Trustee shall not be liable with
    respect to any action taken or omitted to be taken by it in good faith in
    accordance with the direction of the Holders of a Majority in Liquidation
    Amount of the Capital Securities relating to the time, method and place of
    conducting any proceeding for any remedy available to the Capital Securities
    Guarantee Trustee, or exercising any trust or power conferred upon the
    Capital Securities Guarantee Trustee under this Capital Securities
    Guarantee; and

         (iv) no provision of this Capital Securities Guarantee shall require
    the Capital Securities Guarantee Trustee to expend or risk its own funds or
    otherwise incur personal financial liability in the performance of any of
    its duties or in the exercise of any of its rights or powers, if the Capital
    Securities Guarantee Trustee shall have reasonable grounds for believing
    that the repayment of such funds or liability is not reasonably assured to
    it under the terms of this Capital Securities Guarantee or indemnity,
    reasonably satisfactory to the Capital Securities Guarantee Trustee, against
    such risk or liability is not reasonably assured to it.

         SECTION 3.2 Certain Rights of Capital Securities Guarantee Trustee

         (a) Subject to the provisions of Section 3.1:

         (i) The Capital Securities Guarantee Trustee may conclusively rely, and
    shall be fully protected in acting or refraining from acting, upon any
    resolution, certificate, statement instrument, opinion, report, notice,
    request, direction, consent, order, bond, debenture, note, other evidence of
    indebtedness or other paper or document believed by it to be genuine and to
    have been signed, sent or presented by the proper party or parties.

         (ii) Any direction or act of the Guarantor contemplated by this Capital
    Securities Guarantee may be sufficiently evidenced by an Officers'
    Certificate.

         (iii) Whenever, in the administration of this Capital Securities
    Guarantee, the Capital Securities Guarantee Trustee shall deem it desirable
    that a matter be proved or established before taking, suffering or omitting
    any action hereunder, the Capital Securities Guarantee Trustee (unless other
    evidence is herein specifically prescribed) may, in the absence of bad faith
    on its part, request and conclusively rely upon an Officers' Certificate
    which, upon receipt of such request, shall be promptly delivered by the
    Guarantor.

         (iv) The Capital Securities Guarantee Trustee shall have no duty to see
    to any recording, filing or registration of any instrument (or any
    rerecording, refiling or registration thereof).

         (v) The Capital Securities Guarantee Trustee may consult with counsel
    of its selection (which may be counsel to the Guarantor, at the expense of
    the Company) and the advice or opinion of such counsel with respect to legal
    matters shall be full and complete authorization and protection in respect
    of any action taken, suffered or omitted by it hereunder in good faith and
    in accordance with such advice or opinion. Such counsel may be counsel to
    the Guarantor or any of its Affiliates and may include any of its employees.
    The Capital Securities Guarantee Trustee shall have the right at any time to
    seek instructions concerning the administration of this Capital Securities
    Guarantee from any court of competent jurisdiction.

         (vi) The Capital Securities Guarantee Trustee shall be under no
    obligation to exercise any of the rights or powers vested in it by this
    Capital Securities Guarantee at the request or direction of any Holder,
    unless such Holder shall have provided to the Capital Securities Guarantee
    Trustee such security and indemnity, reasonably satisfactory to the Capital
    Securities Guarantee Trustee, against the costs, expenses (including
    attorneys' fees and expenses and the expenses of the Capital Securities
    Guarantee Trustee's agents, nominees or custodians) and liabilities that
    might be incurred by it in complying with such request or direction,
    including such reasonable advances as may be requested by the Capital
    Securities Guarantee Trustee; provided that, nothing contained in this
    Section 3.2(a)(vi) shall be taken to relieve the Capital Securities
    Guarantee Trustee, upon the occurrence of an Event of Default, of its
    obligation to exercise the rights and powers vested in it by this Capital
    Securities Guarantee.

         (vii) The Capital Securities Guarantee Trustee shall not be bound to
    make any investigation into the facts or matters stated in any resolution,
    certificate, statement, instrument, opinion, report, notice, request,
    direction, consent, order, bond, debenture, note, other evidence of
    indebtedness or other paper or document, but the Capital Securities
    Guarantee Trustee, in its discretion, may make such further inquiry or
    investigation into such facts or matters as it may see fit.

         (viii) The Capital Securities Guarantee Trustee may execute any of the
    trusts or powers hereunder or perform any duties hereunder either directly
    or by or through agents, nominees, custodians or attorneys, and the Capital
    Securities Guarantee Trustee shall not be responsible for any misconduct or
    negligence on the part of any agent or attorney appointed with due care by
    it hereunder.

         (ix) Any action taken by the Capital Securities Guarantee Trustee or
    its agents hereunder shall bind the Holders of the Capital Securities, and
    the signature of the Capital Securities Guarantee Trustee or its agents
    alone shall be sufficient and effective to perform any such action. No third
    party shall be required to inquire as to the authority of the Capital
    Securities Guarantee Trustee to so act or as to its compliance with any of
    the terms and provisions of this Capital Securities Guarantee, both of which
    shall be conclusively evidenced by the Capital Securities Guarantee
    Trustee's or its agent's taking such action.

         (x) Whenever in the administration of this Capital Securities Guarantee
    the Capital Securities Guarantee Trustee shall deem it desirable to receive
    instructions with respect to enforcing any remedy or right or taking any
    other action hereunder, the Capital Securities Guarantee Trustee (i) may
    request instructions from the Holders of a Majority in Liquidation Amount of
    the Capital Securities, (ii) may refrain from enforcing such remedy or right
    or taking such other action until such instructions are received, and (iii)
    shall be protected in conclusively relying on or acting in accordance with
    such instructions.

         (xi) The Capital Securities Guarantee Trustee shall not be liable for
    any action taken, suffered, or omitted to be taken by it in good faith,
    without negligence, and reasonably believed by it to be authorized or within
    the discretion or rights or powers conferred upon it by this Capital
    Securities Guarantee.

         (b) No provision of this Capital Securities Guarantee shall be deemed
to impose any duty or obligation on the Capital Securities Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Capital Securities Guarantee Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts
or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Capital Securities Guarantee Trustee shall be
construed to be a duty.

         SECTION 3.3 Not Responsible for Recitals or Issuance of Capital
Securities Guarantee

                  The recitals contained in this Capital Securities Guarantee
shall be taken as the statements of the Guarantor, and the Capital Securities
Guarantee Trustee does not assume any responsibility for their correctness. The
Capital Securities Guarantee Trustee makes no representation as to the validity
or sufficiency of this Capital Securities Guarantee.

                                   ARTICLE IV

                      CAPITAL SECURITIES GUARANTEE TRUSTEE

         SECTION 4.1 Capital Securities Guarantee Trustee; Eligibility

         (a) There shall at all times be a Capital Securities Guarantee Trustee
which shall:

         (i) not be an Affiliate of the Guarantor; and

         (ii) be a corporation organized and doing business under the laws of
    the United States of America or any State or Territory thereof or of the
    District of Columbia, or a corporation or Person permitted by the Securities
    and Exchange Commission to act as an institutional trustee under the Trust
    Indenture Act, authorized under such laws to exercise corporate trust
    powers, having a combined capital and surplus of at least 150 million U.S.
    dollars ($150,000,000), and subject to supervision or examination by
    Federal, State, Territorial or District of Columbia authority. If such
    corporation publishes reports of condition at least annually, pursuant to
    law or to the requirements of the supervising or examining authority
    referred to above, then, for the purposes of this Section 4.1(a)(ii), the
    combined capital and surplus of such corporation shall be deemed to be its
    combined capital and surplus as set forth in its most recent report of
    condition so published.

         (b) If at any time the Capital Securities Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Capital Securities Guarantee
Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2(c).

         (c) If the Capital Securities Guarantee Trustee has or shall acquire
any "conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Capital Securities Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

         SECTION 4.2 Appointment, Removal and Resignation of Capital Securities
Guarantee Trustee

         (a) Subject to Section 4.2(b), the Capital Securities Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.

         (b) The Capital Securities Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Capital Securities Guarantee Trustee and
delivered to the Guarantor.

         (c) The Capital Securities Guarantee Trustee shall hold office until a
Successor Capital Securities Guarantee Trustee shall have been appointed or
until its removal or resignation. The Capital Securities Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Capital Securities Guarantee Trustee and
delivered to the Guarantor, which resignation shall not take effect until a
Successor Capital Securities Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Capital Securities Guarantee Trustee and delivered to the Guarantor and the
resigning Capital Securities Guarantee Trustee.

         (d) If no Successor Capital Securities Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within
60 days after delivery of an instrument of removal or resignation, the Capital
Securities Guarantee Trustee resigning or being removed may petition any court
of competent jurisdiction for appointment of a Successor Capital Securities
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Capital Securities Guarantee
Trustee.

         (e) No Capital Securities Guarantee Trustee shall be liable for the
acts or omissions to act of any Successor Capital securities Guarantee Trustee.

         (f) No appointment of any Successor Capital Securities Guarantee
Trustee shall be effective until all amounts not subject to a good faith dispute
which are known to be owed to the Capital Securities Guarantee Trustee and which
are then due have been paid; provided that upon such payment, within five
Business Days of a request by the Guarantor, the Capital Securities Guarantee
Trustee shall certify that all such amounts have been paid.

                                    ARTICLE V

                                    GUARANTEE

         SECTION 5.1 Guarantee

         The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of
set-off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.

         SECTION 5.2 Waiver of Notice and Demand

         The Guarantor hereby waives notice of acceptance of this Capital
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Issuer or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

         SECTION 5.3 Obligations Not Affected

         The obligations, covenants, agreements and duties of the Guarantor
under this Capital Securities Guarantee shall in no way be affected or impaired
by reason of the happening from time to time of any of the following:

         (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Capital Securities to be performed
or observed by the Issuer;

         (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Capital Securities or the extension of
time for the performance of any other obligation under, arising out of, or in
connection with, the Capital Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures permitted by the Indenture);

         (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any
action on the part of the Issuer granting indulgence or extension of any kind;

         (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

         (e) any invalidity of, or defect or deficiency in, the Capital
Securities;

         (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

         (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor with respect to the
Guarantee Payments shall be absolute and unconditional under any and all
circumstances.

         There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

         SECTION 5.4 Rights of Holders

         (a) The Holders of a Majority in Liquidation Amount of the Capital
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Capital Securities Guarantee Trustee
in respect of this Capital Securities Guarantee or to direct the exercise of any
trust or power conferred upon the Capital Securities Guarantee Trustee under
this Capital Securities Guarantee.

         (b) If the Capital Securities Guarantee Trustee fails to enforce such
Capital Securities Guarantee, any Holder of Capital Securities may institute a
legal proceeding directly against the Guarantor to enforce its rights under this
Capital Securities Guarantee, without first instituting a legal proceeding
against the Issuer, the Capital Securities Guarantee Trustee or any other person
or entity. The Guarantor waives any right or remedy to require that any action
be brought first against the Issuer or any other person or entity before
proceeding directly against the Guarantor.

         SECTION 5.5 Guarantee of Payment

         This Capital Securities Guarantee creates a guarantee of payment and
not of collection.

         SECTION 5.6 Subrogation

         The Guarantor shall be subrogated to all (if any) rights of the Holders
of Capital Securities against the Issuer in respect of any amounts paid to such
Holders by the Guarantor under this Capital Securities Guarantee; provided,
however, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Capital Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Capital Securities Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

         SECTION 5.7 Independent Obligations

         The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Capital
Securities, and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Capital
Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

         SECTION 6.1 Limitation of Transactions

         So long as any Capital Securities remain outstanding, the Guarantor
shall not (i) declare or pay any dividends or distributions on, or redeem,
purchase, acquire, or make a liquidation payment with respect to, any of the
Guarantor's capital stock (which includes common and preferred stock) or (ii)
make any payment of principal, interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Guarantor (including any Other
Debentures) that rank pari passu with or junior in right of payment to the
Debentures or (iii) make any guarantee payments with respect to any guarantee by
the Guarantor of the debt securities of any subsidiary of the Guarantor
(including any Other Guarantees) if such guarantee ranks pari passu or junior in
right of payment to the Debentures (other than (a) dividends or distributions in
shares of or options, warrants or rights to subscribe for or purchase shares of,
common stock of the Guarantor, (b) any declaration of a dividend in connection
with the implementation of a stockholders' rights plan, or the issuance of stock
under any such plan in the future, or the redemption or repurchase of any such
rights pursuant thereto, (c) payments under the Capital Securities Guarantee,
(d) as a result of a reclassification of the Guarantor's capital stock or the
exchange or the conversion of one class or series of the Guarantor's capital
stock for another class or series of the Guarantor's capital stock, (e) the
purchase of fractional interests in shares of the Guarantor's capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, and (f) purchases of common stock related
to the issuance of common stock or rights under any of the Guarantor's benefit
plans for its directors, officers or employees or any of the Guarantor's
dividend reinvestment plans) if at such time (i) there shall have occurred any
event of which the Guarantor has actual knowledge that (a) is, or with the
giving of notice or the lapse of time, or both, would be an Event of Default and
(b) in respect of which the Guarantor shall not have taken reasonable steps to
cure, (ii) if such Debentures are held by the Property Trustee, the Guarantor
shall be in default with respect to its payment of any obligations under this
Capital Securities Guarantee or (iii) the Guarantor shall have given notice of
its election of the exercise of its right to extend the interest payment period
pursuant to Section 16.01 of the Indenture and any such extension shall be
continuing.

         SECTION 6.2 Ranking

         This Capital Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of
payment to Senior Indebtedness (as defined in the Indenture), in the same manner
that the Debentures are subordinated to Senior Indebtedness pursuant to the
Indenture and pari passu with the Debentures, it being understood that the terms
of Article XV of the Indenture shall apply to the obligations of the Guarantor
under this Capital Securities Guarantee as if (x) such Article XV were set forth
herein in full and (y) such obligations were substituted for the term
"Securities" appearing in such Article XV.

                                   ARTICLE VII

                                   TERMINATION

         SECTION 7.1 Termination

         This Capital Securities Guarantee shall terminate and be of no further
force and effect (i) upon full payment of the applicable Redemption Price (as
defined in the Declaration) of all Capital Securities, (ii) upon liquidation of
the Issuer, the full payment of the amounts payable in accordance with the
Declaration or (iii) the distribution of the Debentures to the Holders of all of
the Capital Securities. Notwithstanding the foregoing, this Capital Securities
Guarantee will continue to be effective or will be reinstated, as the case may
be, if at any time any Holder of Capital Securities must restore payment of any
sums paid under the Capital Securities or under this Capital Securities
Guarantee.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         SECTION 8.1 Exculpation

         (a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor or any Covered Person for any loss,
damage or claim incurred by reason of any act or omission performed or omitted
by such Indemnified Person in good faith in accordance with this Capital
Securities Guarantee and in a manner that such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by this Capital Securities Guarantee or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred
by reason of such Indemnified Person's negligence or willful misconduct with
respect to such acts or omissions.

         (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Capital Securities might properly be paid.

         SECTION 8.2 Indemnification

         The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses (including
reasonable legal fees and expenses) of defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The obligation to
indemnify as set forth in this Section 8.2 shall survive the termination of this
Capital Securities Guarantee or the earlier resignation or removal of the
Capital Securities Guarantee Trustee.

                                   ARTICLE IX

                                  MISCELLANEOUS

         SECTION 9.1 Successors and Assigns

         All guarantees and agreements contained in this Capital Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding.

         SECTION 9.2 Modification

         Except with respect to any changes that do not materially adversely
affect the rights of Holders (in which case no consent of Holders will be
required), this Capital Securities Guarantee may only be amended with the prior
approval of the Holders of a Majority in Liquidation Amount of the Capital
Securities (including the stated amount that would be paid on redemption,
liquidation or otherwise, plus accrued and unpaid Distributions to the date upon
which the voting percentages are determined). All modifications shall be
executed by the Guarantor and the Capital Securities Guarantee Trustee. The
provisions of Section 12.2 of the Declaration with respect to meetings of
Holders of the Capital Securities apply to the giving of such approval.

         SECTION 9.3 Notices

         All notices provided for in this Capital Securities Guarantee shall be
in writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

         (a) If given to the Issuer, at the Issuer's mailing address set forth
below (or such other address as the Issuer may give notice of to the Holders of
the Common Securities):

                      HSBC USA Capital Trust [   ]
                      c/o HSBC USA Inc.
                      452 Fifth Avenue
                      New York, New York 10018
                      Attention: Administrator
                      Telecopy:  [        ]

         (b) If given to the Capital Securities Guarantee Trustee, at the
Capital Securities Guarantee Trustee's mailing address set forth below (or such
other address as the Capital Securities Guarantee Trustee may give notice of to
the Holders of the Capital Securities):

                      Bankers Trust Company
                      Four Albany Street
                      Fourth Floor
                      New York, New York 10006
                      Attention: Corporate Trust and Agency Group
                      Telecopy: [(212) 250-6961/6962]

         (c) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders of the Capital Securities):

                      HSBC USA Inc.
                      452 Fifth Avenue
                      New York, New York 10018
                      Attention: General Counsel and Secretary
                      Telecopy: [      ]

         (d) If given to any Holder of Capital Securities, at the address set
forth on the books and records of the Issuer.

         All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

         SECTION 9.4 Benefit

         This Capital Securities Guarantee is solely for the benefit of the
Holders of the Capital Securities and, subject to Section 3.1(a), is not
separately transferable from the Capital Securities.

         SECTION 9.5 Governing Law

         THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

<PAGE>

         THIS CAPITAL SECURITIES GUARANTEE is executed as of the day and year
first above written.


                                         HSBC USA INC., as Guarantor



                                         By:
                                             -----------------------------------
                                         Name:
                                         Title:


                                         BANKERS TRUST COMPANY, as Capital
                                         Securities Guarantee Trustee



                                         By:
                                             -----------------------------------
                                         Name:
                                         Title: