Court Opinion

ID: 2970636
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:18:18.051718+00
Date Added: 2024-06-11T13:15:07.522055
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
           3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

   (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
               )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6
             )257+(6,;7+&,5&8,7
               BBBBBBBBBBBBBBBBB

,QUH*(5$/' '$/( %8516         ;
DQG/,1'$ s$1( %8516              
                        'HEWRUV 
                                       1RV
BBBBBBBBBBBBBBBBBBBBB                  
                                    !
                                   
$1'5(: : 68+$5                   
             3ODLQWLII$SSHOOHH 
                                   
            Y                     
                                   
                                   
*(5$/' '$/( %8516DQG              
/,1'$ s$1( %8516                  
                   'HIHQGDQWV 
                                   
,0& 0257*$*( &203$1<              
          'HIHQGDQW$SSHOODQW 
                                   
                                   
                                  1
        $SSHDOIURPWKH%DQNUXSWF\$SSHOODWH3DQHO
                    RIWKH6L[WK&LUFXLW
  1Rn:LOOLDP7%RGRK%DQNUXSWF\sXGJH
              $UJXHG1RYHPEHU
          'HFLGHGDQG)LOHG0DUFK

                           
     ,QUH%XUQVHWDO                1RV         1RV                    ,QUH%XUQVHWDO     

    %HIRUH.(,7+.(11('<DQG0225(&LUFXLW                        HLWKHU KDYH ILOHG D QRWLFH RI DSSHDO ZLWKLQ  GD\V ZKLFK
                       sXGJHV                                         ZRXOG KDYH EHHQ E\ )HEUXDU\  RU KDYH ILOHG D PRWLRQ WR
                                                                       H[WHQGWKHWLPHIRUVXFKDQRWLFH5XOHUHTXLUHVWKDW
                     BBBBBBBBBBBBBBBBB                                 VXFKDPRWLRQWRH[WHQGWKHWLPHKDYHEHHQILOHGE\)HEUXDU\
                                                                       RUXSRQDVKRZLQJRIH[FXVDEOHQHJOHFWZLWKLQWZHQW\GD\V
                            &2816(/                                    RIWKDWGDWHZKLFKZRXOGKDYHEHHQ)HEUXDU\)HG5
                                                                       %DQNU3F7KHUXOHPDNHVQRSURYLVLRQIRUDQ\
$5*8('$PHOLD$%RZHU3/81.(77	&221(<                           VXFKPRWLRQWRH[WHQGWKHWLPHIRUDQRWLFHRIDSSHDOEH\RQG
&ROXPEXV2KLRIRU$SSHOODQW)UHGHULF36FKZLHJ5RFN\             )HEUXDU\,0&ILOHGLWVPRWLRQIRUOHDYHWR DPHQGWKH
5LYHU2KLRIRU$SSHOOHH21%5,()$PHOLD$%RZHU                QRWLFH RI DSSHDO RQ 0DUFK  ZKLFK ZDV DIWHU WKH UHOHYDQW
3/81.(77	&221(<&ROXPEXV2KLRIRU$SSHOODQW                      GHDGOLQH%\WKDWSRLQWHYHQDVKRZLQJRIH[FXVDEOHQHJOHFW
)UHGHULF36FKZLHJ5RFN\5LYHU2KLRIRU$SSHOOHH                  ZRXOGQRWKDYHSHUPLWWHG,0&WRDPHQGLWVQRWLFH6HHLG
                                                                       7KHFDVHRQZKLFK,0&UHOLHV0DUNRZLW]Y&DPSEHOO,QUH
                     BBBBBBBBBBBBBBBBB                                 0DUNRZLW]  )G  WK &LU  LV QRW WR WKH
                         23,1,21                                       FRQWUDU\DVLWVWDQGVIRUWKHSURSRVLWLRQWKDWDQRWLFHRIDSSHDO
                     BBBBBBBBBBBBBBBBB                                 ILOHGZKLOHDPRWLRQIRUUHFRQVLGHUDWLRQLVSHQGLQJGRHVQRW
                                                                       EHFRPHHIIHFWLYHXQWLOMXGJPHQW LVHQWHUHGRQWKHSHQGLQJ
   .$5(1 1(/621 0225( &LUFXLW sXGJH  'HIHQGDQW                 PRWLRQ  6HH LG DW   ,Q UH 0DUNRZLW] PDNHV FOHDU
,0&0RUWJDJH&RPSDQ\m,0&lDSSHDOVIURPGHFLVLRQVRI                 KRZHYHUWKDWLIWKHDSSHOODQWZLVKHVWRDSSHDOWKHMXGJPHQW
WKH%DQNUXSWF\$SSHOODWH3DQHOUHMHFWLQJ,0&jVDWWHPSWWR              RQWKHPRWLRQWRUHFRQVLGHUWKHDSSHOODQWPXVWILOHDQHZRU
REWDLQDUHFRYHU\OLHQRQFHUWDLQSURSHUW\&DVH1R          SUHVXPDEO\DPHQGHGQRWLFHRIDSSHDO6HHLG
DQG UHIXVLQJ WR DVVHUW MXULVGLFWLRQ RYHU DQ DSSHDO IURP WKH
EDQNUXSWF\FRXUWEHFDXVHLWZDVQRWWLPHO\ILOHG&DVH1R               %HFDXVH,0&GLGQRWILOHLWVPRWLRQWRDPHQGWKHQRWLFHRI
  7KH 'HEWRUVj PRUWJDJH KDG EHHQ DYRLGHG DQG         DSSHDOZLWKLQWKHWHQGD\SHULRGRI5XOHRUZLWKLQWKH
,0&WKHDVVLJQHHPRUWJDJHFRPSDQ\DVVHUWHGDVDGHIHQVH              VXEVHTXHQWWZHQW\GD\ SHULRGGXULQJZKLFKVXFKDPRWLRQ
WKDW LW ZDV HQWLWOHG WR D OLHQ RQ WKH SURSHUW\ XQGHU WZR    FRXOGKDYHEHHQJUDQWHGXSRQDVKRZLQJRIH[FXVDEOHQHJOHFW
SURYLVLRQV RI WKH %DQNUXSWF\ &RGH WKDW SHUPLW FHUWDLQ           ZHDIILUPWKHGHFLVLRQGLVPLVVLQJWKHDSSHDOLQ&DVH1R
FUHGLWRUV WR REWDLQ OLHQV RQ SURSHUW\ WKDW D GHEWRU KDV       
UHFRYHUHG)LUVW,0&VRXJKWDOLHQXQGHU86&H                              ,9&21&/86,21
DQGDIWHUWKDWUHTXHVWZDVGHQLHGLWVRXJKWWKURXJKDPRWLRQ
IRU UHFRQVLGHUDWLRQ D OLHQ XQGHU D GLIIHUHQW SURYLVLRQ          %HFDXVH,0&ZDVQRWHQWLWOHGWRDOLHQXQGHUDQGGLG
 E  7KH EDQNUXSWF\ FRXUW GHQLHG WKH PRWLRQ IRU         QRWDSSHDOWKHEDQNUXSWF\FRXUWjVPRWLRQWRUHFRQVLGHUZLWKLQ
UHFRQVLGHUDWLRQ DV ZHOO  7KH %DQNUXSWF\ $SSHOODWH 3DQHO        5XOHjVVWULFWWLPHUHTXLUHPHQWVZH$)),50LQERWK
m%$3lDIILUPHGWKHWULDOFRXUWjVUXOLQJRQWKHGHQLDORID           FDVHV
OLHQXQGHUHDQGZLWKUHVSHFWWRWKHEGHIHQVH
FRQFOXGHGWKDW,0&KDGQRWDPHQGHGLWVQRWLFHRIDSSHDOWR
DGGUHVVWKHGHQLDORIWKHPRWLRQIRUUHFRQVLGHUDWLRQZLWKLQWKH
WLPHOLPLWVRIWKH%DQNUXSWF\5XOHV$FFRUGLQJO\WKH%$3
GHFOLQHGWRH[HUFLVHMXULVGLFWLRQRYHUWKDWFODLP
       ,QUH%XUQVHWDO                1RV          1RV                   ,QUH%XUQVHWDO     

  WLPHIRUILOLQJDQRWLFHRIDSSHDOKDVH[SLUHGH[FHSWWKDW                %HFDXVH,0&ZDVQRWHQWLWOHGWRDVVHUWWKHGHIHQVHV
  VXFK D PRWLRQ ILOHG QRW ODWHU WKDQ  GD\V DIWHU WKH           DQGGLGQRWWLPHO\DSSHDOWKHEGHFLVLRQWRWKH%$3
  H[SLUDWLRQRIWKHWLPHIRUILOLQJDQRWLFHRIDSSHDOPD\EH              ZH$)),50LQERWKFDVHV
  JUDQWHG XSRQ D VKRZLQJ RI H[FXVDEOH QHJOHFW  $Q
  H[WHQVLRQRIWLPHIRUILOLQJDQRWLFHRIDSSHDOPD\QRW                                       ,%$&.*5281'
  H[FHHGGD\VIURPWKHH[SLUDWLRQRIWKHWLPHIRUILOLQJ
  DQRWLFHRIDSSHDORWKHUZLVHSUHVFULEHGE\WKLVUXOHRU                 2Q0DUFK'HEWRUV/LQGDsDQH%XUQVDQG*HUDOG
  GD\V IURP WKH GDWH RI HQWU\ RI WKH RUGHU JUDQWLQJ WKH          'DOH%XUQVH[HFXWHGDSURPLVVRU\QRWHSD\DEOHWR'HIHQGDQW
  PRWLRQZKLFKHYHULVODWHU                                              $OWHUQDWLYH0RUWJDJH6RXUFH,QFm$06lLQWKHDPRXQWRI
                                                                            DQG H[HFXWHG D PRUWJDJH GHHG JLYLQJ $06 D
)HG5%DQNU37KLVUXOHFRQIRUPVWR)HGHUDO5XOH                PRUWJDJH LQWHUHVW LQ WKHLU UHVLGHQFH  $06 LPPHGLDWHO\
RI$SSHOODWH3URFHGXUHVHHLG$GYLVRU\&RPPLWWHHjV                DVVLJQHGLWVLQWHUHVWWR,0&0RUWJDJH&RPSDQ\m,0&l,Q
1RWH DQG LW LV VLPLODUO\ LQWHUSUHWHG DV D MXULVGLFWLRQDO          6HSWHPEHURIWKDW\HDUWKH'HEWRUVILOHGIRUEDQNUXSWF\DQG
UHTXLUHPHQWVHH$QGHUVRQY0RXUDGLFN,QUH0RXUDGLFN                  RQ sDQXDU\   WKH 7UXVWHH ILOHG WKLV DGYHUVDU\
)GWK&LU                                          SURFHHGLQJ LQ WKH 8QLWHG 6WDWHV %DQNUXSWF\ &RXUW IRU WKH
                                                                           1RUWKHUQ'LVWULFWRI2KLR
   5XOHDSSOLHVHTXDOO\WRDPHQGHGQRWLFHVRIDSSHDODV
ZHOODVQRWLFHVRIDSSHDO/LNH$SSHOODWH5XOHWKHWH[WRI                $FFRUGLQJ WR WKH FRPSODLQW WKH 7UXVWHH VRXJKW D
ZKLFKUHIHUVRQO\WRQRWLFHVRIDSSHDOEXWZKLFKZHKDYHKHOG              GHFODUDWLRQWKDWSXUVXDQWWR86&DWKH7UXVWHHjV
WRJRYHUQDPHQGHGQRWLFHVDVZHOO%DQNUXSWF\5XOHjV                 LQWHUHVWLQWKHSURSHUW\ZDVVXSHULRUWR$06jVLQWHUHVWLQWKH
WLPHOLPLWIRUILOLQJQRWLFHVRIDSSHDOZRXOGKDYHOLWWOHHIIHFW           SURSHUW\  7KH 7UXVWHH DOOHJHG WKDW WKH PRUWJDJH GHHG KDG
LISDUWLHVFRXOGFLUFXPYHQWLWE\DPHQGLQJDQHDUOLHUQRWLFHWR            EHHQVLJQHGE\RQO\RQHZLWQHVVDQGWKXVGLGQRWFRQIRUP
DGGSDUWLHVRUFODLPVORQJDIWHUWKHSURSHUSHULRGKDGH[SLUHG            ZLWK2KLRODZ7KHEDQNUXSWF\FRXUWFUHGLWHGWKH'HEWRUVj
6HHHJ)33(QWHUVY8QLWHG6WDWHV)G              WHVWLPRQ\WKDWDOWKRXJKWKHGHHGLWVHOIZDVQRWDUL]HGDQGKDG
WK&LUUHIXVLQJWRSHUPLWDSSHOODQWWRDPHQGQRWLFH              VLJQDWXUHV IURP WZR ZLWQHVVHV RQO\ RQH ZLWQHVV KDG EHHQ
RIDSSHDOWRDGGDGGLWLRQDODSSHOODQWDIWHURUDODUJXPHQWKDG              SUHVHQWDWWKHVLJQLQJDQGWKHFRXUWDFFRUGLQJO\FRQFOXGHG
RFFXUUHG                                                                 WKDWWKHVHFRQGZLWQHVVVLJQDWXUHDQGWKHQRWDUL]DWLRQPXVW
                                                                           KDYH EHHQ DGGHG VXEVHTXHQWO\  7KH EDQNUXSWF\ FRXUW
  8QGHU 5XOH  ,0&jV DWWHPSW WR DPHQG LWV QRWLFH RI           FRQFOXGHG WKDW EHFDXVH WKH PRUWJDJH ZDV QRW H[HFXWHG LQ
DSSHDOZDVQRWWLPHO\7KHPRWLRQIRUUHFRQVLGHUDWLRQZDV                 DFFRUGDQFH ZLWK 2KLR ODZ WKH 7UXVWHH FRXOG VHW DVLGH WKH
GHQLHGRQsDQXDU\DQG5XOHUHTXLUHGWKDW,0&                PRUWJDJH XQGHU  86&  D ZKLFK SHUPLWV D
                                                                           WUXVWHHWRDYRLGDQ\WUDQVIHUWKDWZRXOGEHYRLGDEOHE\DERQD
                                                                           ILGHSXUFKDVHUXQGHUVWDWHODZ
     
     6HH 'RQOLQ Y :DWNLQV  )G   Q WK &LU  VHH        ,0& WKHQ DVVHUWHG LWV GHIHQVH WKDW QRWZLWKVWDQGLQJ WKH
DOVR 8QLWHG &RPSXWHU 6\V ,QF Y $7	7 &RUS  )G   WK      DYRLGDQFH86&HHQWLWOHG,0&WRDOLHQRQWKH
&LU  KROGLQJ WKDW 5XOH  SUHYHQWHG DSSHOODWH FRXUW IURP DVVHUWLQJ   SURSHUW\6HFWLRQSURYLGHVIRUWUXVWHHVWRUHFRYHUFHUWDLQ
MXULVGLFWLRQ RYHU DSSHDO RI PRWLRQ WR UHFRQVLGHU ZKHQ LQLWLDO QRWLFH RI    WUDQVIHUUHGSURSHUWLHVDQGIRUSURWHFWLRQWRFHUWDLQFUHGLWRUV
DSSHDO ZDV QRW DPHQGHG WR UDLVH PRWLRQ IRU UHFRQVLGHUDWLRQ XQWLO DIWHU
5XOH jV WLPH OLPLWV KDG H[SLUHG &LW\ RI &KDQXWH .DQVDV Y :LOOLDPV
                                                                           IURPWKDWUHFRYHU\6SHFLILFDOO\DDOORZVDWUXVWHH
1DWXUDO *DV &R  )G   WK &LU  DSSO\LQJ 5XOH
                                                                           ZKRDYRLGVDWUDQVIHUXQGHUDWRUHFRYHUWKHLQWHUHVW
 WR DPHQGPHQW RI QRWLFH RI DSSHDO                                       WKDWZDVWUDQVIHUUHGDQGHSURYLGHVWKDWJRRG IDLWK
     ,QUH%XUQVHWDO                1RV        1RV                    ,QUH%XUQVHWDO     

WUDQVIHUHHV IURP ZKRP D WUXVWHH UHFRYHUV SURSHUW\ XQGHU        &RQJUHVVPDGHDQGWKLVLVQRWRQHRIWKRVHmµUDUHFDVHV>LQ
DDUHHQWLWOHGWRDOLHQRQWKHUHFRYHUHGSURSHUW\WR          ZKLFK@WKHOLWHUDODSSOLFDWLRQRIDVWDWXWHZLOOSURGXFHDUHVXOW
RIIVHW WKH FRVW RI DQ\ LPSURYHPHQW LQFOXGLQJ SD\PHQW RI      GHPRQVWUDEO\ DW RGGV ZLWK WKH LQWHQWLRQV RI LWV GUDIWHUVjl
GHEWWKDWWKHWUDQVIHUHHPDGHIROORZLQJWKHWUDQVIHU,0&           8QLWHG6WDWHVY5RQ3DLU(QWHUV,QF86
DUJXHG WKDW DV D JRRG IDLWK WUDQVIHUHH IURP $06 ZKR        TXRWLQJ*ULIILQY2FHDQLF&RQWUDFWRUV,QF86
LPSURYHGWKHSURSHUW\E\SD\LQJRIIGHEWLWZDVHQWLWOHGWRD           7KH 6XSUHPH &RXUW KDV PDGH FOHDU WKDW LQ
OLHQLQWKHDPRXQWRI                                     EDQNUXSWF\FDVHVZHDUHWRDGKHUHFORVHO\WRWKHWH[WRIWKH
                                                                      VWDWXWHVHH7RLEEY5DGORII86DQG
   7KHEDQNUXSWF\FRXUWFRQFOXGHGWKDW,0&ZDVQRWHQWLWOHG           WKH %DQNUXSWF\ &RGHjV WH[W DQG VWUXFWXUH VXSSRUW RXU
WRDOLHQXQGHUH7KHVWDWXWRU\ODQJXDJHSURYLGHVIRU        FRQFOXVLRQVWKDWUHFRYHU\GRHVQRWDXWRPDWLFDOO\IROORZIURP
D OLHQ WR VHFXUH mWKH FRVW WR VXFK WUDQVIHUHHl RI           DYRLGDQFHDQGWKDWZKHUHWKHUHLVQRUHFRYHU\XQGHUD
LPSURYHPHQWVDQG,0&KDGQRWLQWURGXFHGDQ\HYLGHQFHWKDW            WKHUHDUHQRSURWHFWLRQVXQGHUH$FFRUGLQJO\EHFDXVH
LWKDGDFWXDOO\LQFXUUHGWKHFRVWRIWKHLPSURYHPHQWV5DWKHU       WKH7UXVWHHQHLWKHUVRXJKWQRUQHHGHGWRVHHNUHFRYHU\
WKH HYLGHQFH VXJJHVWHG WKDW WKH PRQH\ XVHG WR VDWLVI\ WKH    LVQRWDWLVVXHLQWKLVFDVH,0&LVWKXVXQDEOHWRREWDLQWKH
'HEWRUVjSULRUPRUWJDJHVKDGFRPHIURP$06DQG,0&ZDV                H OLHQ DQG ZH DIILUP WKH GHFLVLRQ LQ &DVH 1R 
QRWHQWLWOHGWRWDNHDGYDQWDJHRIWKHLPSURYHPHQWVPDGHE\            
$067KHEDQNUXSWF\FRXUWjVRUGHUZDVLVVXHGRQsDQXDU\
DQG,0&ILOHGDQRWLFHRIDSSHDOIURPWKDWMXGJPHQWRQ           ,,,&$6(127+(s$18$5<E
sDQXDU\                                                                            &$6(
   ,0&DOVRILOHGDPRWLRQIRUUHFRQVLGHUDWLRQDUJXLQJIRUWKH         ,0& DOVR DSSHDOV WKH %$3jV FRQFOXVLRQ WKDW WKH SDQHO
ILUVWWLPHWKDWEJRYHUQVWKHUHFRYHU\DQGOLHQLVVXHV        ODFNHGMXULVGLFWLRQWRFRQVLGHU,0&jVDSSHDOIURPWKHsDQXDU\
,0&DUJXHGWKDWWKHEDQNUXSWF\FRXUWjVMXGJPHQWRQH           RUGHUGHQ\LQJLWVPRWLRQIRUUHFRQVLGHUDWLRQ,QRUGHUIRU
RYHUORRNHG WKH OHJLVODWLYH LQWHQW WKDW ZDV H[SUHVVHG LQ        WKH%$3WRKDYHKDGMXULVGLFWLRQRYHU,0&jVDSSHDORIWKH
E%HFDXVHEVWDWHVWKDWLPPHGLDWHJRRGIDLWK          sDQXDU\  RUGHU RQ LWV PRWLRQ IRU UHFRQVLGHUDWLRQ ,0&
WUDQVIHUHHV DUH HQWLWOHG WR WKH VDPH SURWHFWLRQV IURP D       QHHGHG WR WLPHO\ DSSHDO WKDW RUGHU  7KH GHWHUPLQDWLRQ RI
WUXVWHHjVUHFRYHU\DVWKRVHWUDQVIHUHHVVXFKDV$06ZKRWDNH          ZKHWKHU,0&WLPHO\DSSHDOHGLVJRYHUQHGE\)HGHUDO5XOHRI
IRUYDOXHLQJRRGIDLWKDQGZLWKRXWNQRZOHGJHRIYRLGDELOLW\       %DQNUXSWF\3URFHGXUHZKLFKLQUHOHYDQWSDUWUHDGVDV
,0&DUJXHGWKDWHVKRXOGEHLQWHUSUHWHGVLPLODUO\VR           IROORZV
WKDW ,0& DV D JRRG IDLWK WUDQVIHUHH RI $06 ZRXOG EH
HQWLWOHGWRWKHVDPHSURWHFWLRQVDV$06$QGVRWRWKHH[WHQW          D7HQGD\SHULRG7KHQRWLFHRIDSSHDOVKDOOEHILOHG
WKDW$06KDGSURYLGHGWKH'HEWRUVWKHPRQH\WKH\XVHGWR                ZLWKWKHFOHUNZLWKLQGD\VRIWKHGDWHRIWKHHQWU\RI
VDWLVI\WKHLUSULRUPRUWJDJHV,0&DUJXHGWKDWWKHEDQNUXSWF\           WKHMXGJPHQWRUGHURUGHFUHHDSSHDOHGIURP
FRXUW HUUHG LQ ILQGLQJ WKDW ,0& KDG QRW VDWLVILHG WKDW         
UHTXLUHPHQWRIH                                                F([WHQVLRQRIWLPHIRUDSSHDO7KHEDQNUXSWF\
                                                                        MXGJHPD\H[WHQGWKHWLPHIRUILOLQJWKHQRWLFHRIDSSHDO
  2QsDQXDU\WKHEDQNUXSWF\FRXUWGHQLHG,0&jV                E\ DQ\ SDUW\ XQOHVV WKH MXGJPHQW RUGHU RU GHFUHH
PRWLRQIRUUHFRQVLGHUDWLRQ7KHFRXUWZHQWEH\RQGLWVHDUOLHU          DSSHDOHGIURP>LVXQGHUFHUWDLQVWDWXWHVQRWDWLVVXHKHUH@
GHFLVLRQ LQ ZKLFK LW KDG UXOHG WKDW ,0& GLG QRW PHHW WKH     $UHTXHVWWRH[WHQGWKHWLPHIRUILOLQJDQRWLFHRI
UHTXLUHPHQWV RI  H DQG LW UXOHG WKDW   KDG QR     DSSHDOPXVWEHPDGHE\ZULWWHQPRWLRQILOHGEHIRUHWKH
    ,QUH%XUQVHWDO                 1RV         1RV                       ,QUH%XUQVHWDO        

LWVHOI DSSHDU LQ WKH FRGH VHH %ODFN 	 :KLWH &DWWOH &R Y   DSSOLFDELOLW\WRWKHFDVHDWDOO6HFWLRQJRYHUQVRQO\FDVHV
*UDQDGD&DWWOH6HUYV,QF,QUH%ODFN	:KLWH&DWWOH&R           LQZKLFKWKHWUXVWHHDWWHPSWVWRUHFRYHUSURSHUW\RUWKHYDOXH
)GWK&LUm>7@KHUHLVQRWKLQJLQ             RISURSHUW\WKHWUXVWHHLQWKHSUHVHQWFDVHKDGVRXJKWRQO\WR
WKH VWDWXWH RU FDVH ODZ WR VXJJHVW WKDW &RQJUHVV PHDQW >WR    GHFODUHWKDWKLVLQWHUHVWLQWKH'HEWRUVjUHVLGHQFHZDVVXSHULRU
SURWHFW@ RQO\ WUDQVIHUHHV LQ SRVVHVVLRQl DQG OHDYHV mD        WRWKHLQWHUHVWRI$06DQG,0&$FFRUGLQJO\DQ\HIIRUWWR
JDSLQJ KROH    LQ WKH WKHRU\ RI GHIHQVH WR DYRLGDQFH      LPSRUW  E LQWR  H RU DVVHUW DQ\ RI WKH  
SRZHUVl 'DYLG *UD\ &DUOVRQ %DQNUXSWF\jV 2UJDQL]LQJ               GHIHQVHVZDVLUUHOHYDQW
3ULQFLSOH  )OD 6W 8 / 5HY    WKH
GLVWLQFWLRQ WKDW UHVXOWV IURP RXU LQWHUSUHWDWLRQ LV QRW DV        $IWHU WKLV GHQLDO RI WKH PRWLRQ IRU UHFRQVLGHUDWLRQ RQ
EDVHOHVVDVLWVSURSRQHQWVFRQWHQG)LUVWDOWKRXJKWKH,QUH          sDQXDU\  ,0&jV QRWLFH RI DSSHDO     IURP WKH sDQXDU\ 
%ODFN	:KLWH&DWWOH&RFRXUWLVFRUUHFWWKDWWKHFRGHLWVHOI          HMXGJPHQWEHFDPHHIIHFWLYHDQGWKHWHQGD\WLPH
GRHV QRW H[SOLFLWO\ UHIHU WR D SRVVHVVRU\QRQSRVVHVVRU\           SHULRGXQGHU)HG5%DQNU3DLQZKLFK,0&ZRXOG
GLVWLQFWLRQ WKH VWDWXWH GRHV FDUU\ LPSOLFLW VXJJHVWLRQV WKDW    EH UHTXLUHG WR ILOH D QRWLFH RI DSSHDO IURP WKH GHQLDO RI
&RQJUHVV IRUHVDZ WKLV FRQVHTXHQFH  $V RQH FRXUW LQ RXU        PRWLRQ IRU UHFRQVLGHUDWLRQ UHJDUGLQJ WKH  E LVVXH
FLUFXLWKDVVXJJHVWHGWKHYHU\QRWLRQ RI UHFRYHU\VXJJHVWV           EHJDQWRUXQ,0&GLGQRWILOHVXFKDQRWLFHRIDSSHDOEXWRQ
VXFK D SRVVHVVRU\QRQSRVVHVVRU\ GLVWLQFWLRQ  7KDW LV WKH       0DUFKLWILOHGDPRWLRQIRUOHDYHWRDPHQGLWVQRWLFHRI
SUHVHQFH RI UHFRYHU\ XQGHU   DQG SUHVHUYDWLRQ XQGHU         DSSHDO IURP WKH sDQXDU\   H UXOLQJ WR LQFOXGH WKH
                                                                   sDQXDU\EGHFLVLRQ7KHEDQNUXSWF\FRXUWJUDQWHG
                                                                        WKHPRWLRQWKHQH[WGD\DQGRQ0DUFK,0&DPHQGHGLWV
  LVGHSHQGHQWRQZKHWKHUWKHLQWHUHVWWKHWUXVWHHDYRLGHG              QRWLFHRIDSSHDOLQRUGHUWRDSSHDOIURPERWKWKHsDQXDU\
  ZDV SRVVHVVRU\ RU QRQSRVVHVVRU\  ,Q SDUWLFXODU                HUXOLQJDQGWKHsDQXDU\EUXOLQJ
  SUHVHUYDWLRQ XQGHU   LV E\ LWV YHU\ QDWXUH RQO\
  DSSOLFDEOHWRQRQSRVVHVVRU\LQWHUHVWVQDPHO\OLHQV               7KH%$3DIILUPHGWKHEDQNUXSWF\FRXUWRQWKHsDQXDU\
  2QWKHRWKHUKDQGWKHYHU\FRQFHSWRIµUHFRYHU\jLPSDUWV             HDSSHDODQGGLVPLVVHGWKHsDQXDU\EDSSHDO
  WKHQRWLRQWKDWDSRVVHVVRU\LQWHUHVWLQSURSHUW\H[LVWV             :LWKUHVSHFWWRWKHsDQXDU\HDSSHDOWKH%$3UXOHG
  WKDW LV WKH SURSHUW\ WR EH UHFRYHUHG PXVW EH WDQJLEOH       WKDWZDVLQDSSOLFDEOHWRWKHSUHVHQWFDVH7KH%$3
  SURSHUW\  7KH UHDVRQ IRU WKLV LV VHOIHYLGHQW  ZKHQ D     UXOHGWKDWZKHQWKH7UXVWHHKDGDYRLGHGWKHWUDQVIHUXQGHU
  QRQSRVVHVVRU\ LQWHUHVW LQ SURSHUW\ LV DYRLGHG WKHUH LV          ,0&jV LQWHUHVW LQ WKH SURSHUW\ ZDV LPPHGLDWHO\
  QRWKLQJOHIWWRUHFRYHU                                              SUHVHUYHG DQG DXWRPDWLFDOO\ EHFDPH SDUW RI WKH HVWDWH
                                                                        SXUVXDQWWRD$FFRUGLQJO\WKH7UXVWHHQHYHUKDG
0RUJDQY/LEHUW\0RUWJDJH,QUH0RUJDQ%5                WRUHVRUWWRWKHUHFRYHU\SURYLVLRQVRIDQGWKXV,0&
%DQNU1'2KLRFLWDWLRQRPLWWHG6HFRQGWKH            ZDVXQDEOHWRWDNHDGYDQWDJHRIjVGHIHQVHVWKDWFUHDWH
GLVWLQFWLRQGRHVIXUWKHURQHRIEDQNUXSWF\jVLPSRUWDQWJRDOV           OLHQVIROORZLQJWKHUHFRYHU\RISURSHUW\7KHUHIRUHWKH%$3
$OWKRXJKRXULQWHUSUHWDWLRQIDYRUVSRVVHVVRU\WUDQVIHUHHVRYHU          DIILUPHGWKHEDQNUXSWF\FRXUW:LWKUHVSHFWWRWKHsDQXDU\
QRQSRVVHVVRU\WUDQVIHUHHVLWDOVRIDYRUVWKHJHQHUDOFUHGLWRUV          E DSSHDO WKH %$3 UXOHG WKDW ,0& KDG QRW WLPHO\
RYHU WKH QRQSRVVHVVRU\ WUDQVIHUHH E\ QRW SHUPLWWLQJ WKH
QRQSRVVHVVRU\WUDQVIHUHHDHOLHQ
                                                                            
                                                                              3XUVXDQW WR )HGHUDO 5XOH RI %DQNUXSWF\ 3URFHGXUH E D QRWLFH
  5HJDUGOHVV RI ZKHWKHU WKH SRVVHVVRU\QRQSRVVHVVRU\                RI DSSHDO ILOHG DIWHU HQWU\ RI MXGJPHQW EXW SULRU WR WKH GLVSRVLWLRQ RI D
GLVWLQFWLRQ LV RQH WKDW &RQJUHVV LQWHQGHG LW LV RQH WKDW      WLPHO\ PRWLRQ IRU UHFRQVLGHUDWLRQ EHFRPHV HIIHFWLYH XSRQ WKH GLVSRVLWLRQ
                                                                        RI WKH PRWLRQ IRU UHFRQVLGHUDWLRQ
     ,QUH%XUQVHWDO                 1RV         1RV                        ,QUH%XUQVHWDO       

DSSHDOHG  7KH WHQGD\ SHULRG LQ ZKLFK ,0& VKRXOG KDYH         VWDWXWRU\VFKHPHSURYLGHGWKDWLPPHGLDWHO\XSRQDYRLGDQFH
DSSHDOHGWKHsDQXDU\MXGJPHQWH[SLUHGRQ)HEUXDU\DQG             RI WKH WUDQVIHU ,0&jV LQWHUHVW LQ WKH 'HEWRUVj SURSHUW\
WKH WZHQW\GD\ SHULRG WKDW )HGHUDO 5XOH RI %DQNUXSWF\            UHWXUQHGWRWKHHVWDWHZLWKRXWQHHGIRUUHVRUWWRWKHUHFRYHU\
3URFHGXUHFDOORZVZRXOGEHDSSHOODQWVWRPRYHWR              SURFHVV  )LUVW WKH WUDQVIHU ZDV DYRLGHG XQGHU  D
H[WHQG WKH WLPH IRU ILOLQJ D QRWLFH RI DSSHDO H[SLUHG RQ      6HFRQGSURYLGHVWKDWZKHQDWUDQVIHULVDYRLGHGXQGHU
)HEUXDU\7KXVWKHGLVWULFWFRXUWODFNHGWKHDXWKRULW\WR           WKHWUDQVIHULVmSUHVHUYHGIRUWKHEHQHILWRIWKHHVWDWHl
JUDQW DQ H[WHQVLRQ DQG WR SHUPLW WKH DPHQGHG QRWLFH RI         86&6HFWLRQWKHQPDNHVH[SOLFLWWKDWDQ\
DSSHDO                                                                 LQWHUHVW WKDW LV mSUHVHUYHG IRU WKH EHQHILW RI    WKH HVWDWH
                                                                        XQGHUVHFWLRQlLVSDUWRIWKHEDQNUXSWF\HVWDWH
  ,0& WLPHO\ DSSHDOHG IURP ERWK GHFLVLRQV DQG ZH KDYH          86&D7KXVLPPHGLDWHO\XSRQDYRLGDQFHRIWKH
MXULVGLFWLRQRYHUWKHDSSHDOVSXUVXDQWWR86&:H          WUDQVIHU,0&jVPRUWJDJHLQWHUHVWZDVSUHVHUYHGDQGEHFDPH
UHYLHZ WKH GHFLVLRQ RI WKH EDQNUXSWF\ FRXUW GLUHFWO\            SDUWRIWKHHVWDWH
UHYLHZLQJ LWV IDFWXDO ILQGLQJV IRU FOHDU HUURU DQG LWV OHJDO
FRQFOXVLRQVGHQRYR+DUNHUY7URXWPDQ,QUH7URXWPDQ                  $VDWH[WXDODQGFRQFHSWXDOPDWWHUWKHUHDUHVWURQJUHDVRQV
(QWHUSULVHV,QF)GWK&LU                  WR DIILUP WKH %$3jV FRQFOXVLRQ WKDW   GLG QRW DSSO\
                                                                        EHFDXVH WKH 7UXVWHH QHYHU VRXJKW UHFRYHU\  $V D WH[WXDO
    ,,&$6(127+(s$18$5<H                      PDWWHU WKH VWDWXWH FOHDUO\ LQGLFDWHV WKDW DYRLGDQFH DQG
                         &$6(                                           UHFRYHU\DUHGLVWLQFWDQGWKHSHUPLVVLYHODQJXDJHRI
                                                                        VXJJHVWV WKDW UHFRYHU\ LV DQ RSWLRQDO UHPHG\ WKDW LQ FDVHV
   7KLVFDVHLQYROYHVWZRPDLQFRQFHSWVLQEDQNUXSWF\ODZ              VXFK DV WKLV RQH QHHG QRW EH SXUVXHG  $V D FRQFHSWXDO
7KHILUVWFRQFHSWLVDYRLGDQFHWKURXJKZKLFKDWUXVWHHLVDEOH         PDWWHUWKH%$3jVLQWHUSUHWDWLRQRIIHUVDFRKHUHQWH[SODQDWLRQ
WR QXOOLI\ D PRUWJDJHLQWHUHVW WUDQVIHU WKDW LQ VRPH ZD\        RIDYRLGDQFHUHFRYHU\DQG,0&jVLQWHUHVWXSRQDYRLGDQFH
GLPLQLVKHG WKH HVWDWH  ,W LV XQFRQWURYHUWHG KHUH WKDW WKH     ,0&jVLQWHUHVWZDVSUHVHUYHGE\DQGUHWXUQHGWRWKH
7UXVWHH DYRLGHG,0&jVPRUWJDJHLQWKH'HEWRUVjSURSHUW\               HVWDWHXQGHU5HFRYHU\ZDVQRWQHFHVVDU\EHFDXVHWKH
7KHTXHVWLRQKRZHYHULVZKDWKDSSHQHGWR,0&jVPRUWJDJH               FRGHLWVHOISURYLGHGIRUWKHLQWHUHVWjVUHWXUQWRWKHHVWDWH
LQWHUHVWXSRQDYRLGDQFH,0&DUJXHVWKDWRQFHWKHWUDQVIHU
ZDV DYRLGHG WKH 7UXVWHH UHFRYHUHG WKH LQWHUHVW XQGHU              :HUHFRJQL]HWKDWXQGHURXULQWHUSUHWDWLRQPDQ\FDVHVZLOO
 D  5HFRYHU\ WKH VHFRQG FRQFHSW LV D VWDWXWRU\        WXUQRQZKHWKHUDSDUWLFXODUFUHGLWRUjVLQWHUHVWLQWKHGHEWRUjV
PHFKDQLVPWKURXJKZKLFKSURSHUW\PD\EHUHWXUQHGWRWKH                 SURSHUW\SULRUWRWKDWLQWHUHVWEHLQJDYRLGHGZDVSRVVHVVRU\
HVWDWH7KH7UXVWHHDUJXHVWKDWUHFRYHU\ZDVXQQHFHVVDU\LQ            RU QRQSRVVHVVRU\  ,Q WKH FDVH RI FUHGLWRUV ZKR KDYH
WKHSUHVHQWFDVHEHFDXVH,0&jVLQWHUHVWUHWXUQHGWRWKHHVWDWH         SRVVHVVRU\LQWHUHVWVLQWKHGHEWRUjVSURSHUW\WKHWUXVWHHZLOO
LPPHGLDWHO\ZKHQWKHPRUWJDJHZDVDYRLGHGZLWKRXW                JHQHUDOO\KDYHWRSXUVXHUHFRYHU\EHFDXVHPHUHDYRLGDQFH
UHFRYHU\:HDJUHH$FFRUGLQJO\ZHGRQRWQHHGWRGHFLGH             ZRXOGQRWEULQJWKHSURSHUW\EDFNLQWRWKHHVWDWHjVSRVVHVVLRQ
ZKHWKHUDV,0&DVVHUWVWKHSURWHFWLRQVRIIHUHGLQH            ,Q FRQWUDVW LQ FDVHV LQYROYLQJ FUHGLWRUV VXFK DV ,0& ZKR
DSSO\QRWRQO\WRWKHLQLWLDOJRRGIDLWKWUDQVIHUHHVEXWDOVRWR       KDYHQRQSRVVHVVRU\LQWHUHVWVLQWKHGHEWRUjVSURSHUW\WUXVWHHV
DQ\VXEVHTXHQWJRRGIDLWKWUDQVIHUHHV                                  ZLOOJHQHUDOO\QRWKDYHWRVHHNUHFRYHU\DQGWKHFUHGLWRUVZLOO
                                                                        QRWEHHQWLWOHGWRDQ\RIWKHHSURWHFWLRQV
$5HOHYDQW6WDWXWHV
                                                                          $OWKRXJK FULWLFV DUJXH WKDW WKLV GLVWLQFWLRQ EHWZHHQ WKH
  6HYHUDOSRUWLRQVRIWKHEDQNUXSWF\FRGHDUHUHOHYDQWWRWKLV          KROGHUVRISRVVHVVRU\DQGQRQSRVVHVVRU\LQWHUHVWVGRHVQRW
GLVFXVVLRQ7KHDQDO\VLVEHJLQVZLWK86&ZKLFK
       ,QUH%XUQVHWDO                 1RV           1RV                    ,QUH%XUQVHWDO        

FRQFHSWV RI DYRLGLQJ D WUDQVIHU DQG UHFRYHULQJ IURP WKH              SURYLGHV IRU WKH UHFRYHU\ RI SURSHUW\ DYRLGHG XQGHU RWKHU
WUDQVIHUHHl+55HS1RDWUHSULQWHG                 VHFWLRQV DQG LQ  H RIIHUV SURWHFWLRQV IRU FHUWDLQ
LQ86&&$17KHIDFWWKDWDYRLGDQFH                    FUHGLWRUV7KHUHOHYDQWSDUWVRIUHDGDVIROORZV
DQGUHFRYHU\DUHGLVWLQFWGRHVQRWPHDQWKDWDYRLGDQFHFDQQRW
WULJJHUUHFRYHU\EXWLWGRHVVXJJHVWWKDWDYRLGDQFHQHHGQRW                  D([FHSWDVRWKHUZLVHSURYLGHGLQWKLVVHFWLRQWRWKH
DOZD\VWULJJHUUHFRYHU\                                                       H[WHQWWKDWDWUDQVIHULVDYRLGHGXQGHUVHFWLRQ
                                                                               ERUDRIWKLVWLWOHWKHWUXVWHH
   6HFRQGWKHIDFWWKDWDYRLGDQFHLVDQHFHVVDU\SUHFRQGLWLRQ                 PD\UHFRYHUIRUWKHEHQHILWRIWKHHVWDWHWKHSURSHUW\
WR   UHFRYHU\ GRHV QRW LPSO\ WKDW DYRLGDQFH LV D                WUDQVIHUUHGRULIWKHFRXUWVRRUGHUVWKHYDOXHRIVXFK
VXIILFLHQW FRQGLWLRQ IRU   UHFRYHU\ RU WKDW DYRLGDQFH              SURSHUW\ IURP n  WKH LQLWLDO WUDQVIHUHH RI VXFK
DXWRPDWLFDOO\WULJJHUVUHFRYHU\7KHWUXVWHHjVUHPHG\                   WUDQVIHURUWKHHQWLW\IRUZKRVHEHQHILWVXFKWUDQVIHUZDV
RIUHFRYHU\LVQHFHVVDU\RQO\ZKHQWKHUHPHG\RIDYRLGDQFH                     PDGHRUDQ\LPPHGLDWHRUPHGLDWHWUDQVIHUHHRIVXFK
LVLQDGHTXDWH7KDWLVZKHQWKHDYRLGDQFHRIDWUDQVIHUGRHV                 LQLWLDOWUDQVIHUHH
QRW IXOO\ VDWLVI\ WKH HVWDWH WKHQ WKH WUXVWHH PD\ VHHN WR           E7KHWUXVWHHPD\QRWUHFRYHUXQGHUVHFWLRQDRI
UHFRYHU WKH SURSHUW\ WUDQVIHUUHG EXW ZKHQ WKH DYRLGDQFH                WKLVVHFWLRQIURPnDWUDQVIHUHHWKDWWDNHVIRUYDOXH
DORQHLVDVXIILFLHQWUHPHG\WKHUHLVQRQHHGIRUWKHWUXVWHHWR              LQFOXGLQJ VDWLVIDFWLRQ RU VHFXULQJ RI D SUHVHQW RU
VHHN UHFRYHU\  8QOLNH WKH FRXUW LQ ,Q UH .UXHJHU ZKLFK             DQWHFHGHQWGHEWLQJRRGIDLWKDQGZLWKRXWNQRZOHGJHRI
GHWHUPLQHG WKDW WKH VWDWXWH PDGH UHFRYHU\ DXWRPDWLF XSRQ                WKH YRLGDELOLW\ RI WKH WUDQVIHU DYRLGHG RU  DQ\
DYRLGDQFH  :/  DW 
 ZH FRQFOXGH WKDW WKH                LPPHGLDWH RU PHGLDWH JRRG IDLWK WUDQVIHUHH RI VXFK
ODQJXDJH RI   VWDWLQJ WKDW WKH mWUXVWHH PD\ UHFRYHUl             WUDQVIHUHH
SURSHUW\ IROORZLQJ DYRLGDQFH  86&   HPSKDVLV                 
DGGHG LV SHUPLVVLYH UDWKHU WKDQ PDQGDWRU\ WKH WUXVWHH                H  $ JRRG IDLWK WUDQVIHUHH IURP ZKRP WKH WUXVWHH
mPXVWl UHFRYHU RU GHVFULSWLYH WKH WUXVWHH mWKHUHE\l                    PD\UHFRYHUXQGHUVXEVHFWLRQDRIWKLVVHFWLRQKDVD
UHFRYHUV6HHDOVR'DYLG*(SVWHLQHWDO%DQNUXSWF\                    OLHQRQWKHSURSHUW\UHFRYHUHGWRVHFXUHWKHOHVVHURIn
  DW  :HVW  m5HFRYHU\ JRHV EH\RQG                       $ WKH FRVW WR VXFK WUDQVIHUHH RI DQ\ LPSURYHPHQW
DYRLGDQFH5HFRYHU\LVDEDQNUXSWF\UHPHG\IRUDYRLGDQFH                      PDGH DIWHU WKH WUDQVIHU OHVV WKH DPRXQW RI DQ\ SURILW
ZKLFK PDNHV WUDQVIHUHHV RI WKH DIIHFWHG SURSHUW\ DQG DOVR             UHDOL]HG E\ RU DFFUXLQJ WR VXFK WUDQVIHUHH IURP VXFK
SHRSOHIRUZKRVHEHQHILWWKHWUDQVIHUZDVPDGHSHUVRQDOO\                     SURSHUW\ DQG % DQ\ LQFUHDVH LQ WKH YDOXH RI VXFK
DFFRXQWDEOHWRWKHHVWDWHIRUWKHUHWXUQRIWKHSURSHUW\RUIRU                SURSHUW\DVDUHVXOWRIVXFKLPSURYHPHQWRIWKHSURSHUW\
LWVYDOXHl                                                                  WUDQVIHUUHG    ,Q WKLV VXEVHFWLRQ mLPSURYHPHQWl
                                                                               LQFOXGHV'SD\PHQWRIDQ\GHEWVHFXUHGE\DOLHQRQ
  (YHQ DVVXPLQJ WKDW WKH GHIHFWLYH PRUWJDJH FUHDWHG D                   VXFKSURSHUW\WKDWLVVXSHULRURUHTXDOWRWKHULJKWVRIWKH
SURSHUW\LQWHUHVWXQGHU2KLRODZDQDVVXPSWLRQZHLPSOLFLWO\                  WUXVWHH
PDGH LQ =DSWRFN\ VHH ,Q UH =DSWRFN\  )G DW 
DYRLGDQFH RI WKDW LQWHUHVW ZDV DQ DGHTXDWH UHPHG\  7KH              86&    $FFRUGLQJO\ IRU WKH SUHVHQW FDVH ,0&
                                                                             DUJXHV WKDW DIWHU WKH 7UXVWHH DYRLGHG WKH PRUWJDJH XQGHU
                                                                             WKH7UXVWHHLPSOLFLWO\VRXJKWWRUHFRYHUWKHLQWHUHVW
     
     6HH +DUULVRQ Y %UHQW 7RZLQJ &R ,Q UH + 	 6 7UDQVS &R
                                                                    
                                                                             XQGHUDZLWKRXWVXFKLPSOLFLWUHFRYHU\,0&DUJXHV
)G   WK &LU  m>$@FFRUGLQJ WR WKH OLWHUDO ODQJXDJH RI WKH   WKH 7UXVWHH FRXOG QRW KDYH JDLQHG WKH IXOO LQWHUHVW LQ WKH
VWDWXWH WKHUH PXVW EH DQ DYRLGDEOH WUDQVIHU EHIRUH WKHUH FDQ EH UHFRYHU\     SURSHUW\7KXV,0&DVDJRRGIDLWKWUDQVIHUHHZDVHQWLWOHG
E\ WKH WUXVWHH SXUVXDQW WR VHFWLRQ Dl
      ,QUH%XUQVHWDO                 1RV      1RV                    ,QUH%XUQVHWDO      

WRDOLHQSXUVXDQWWRHIRUWKHFRVWRIWKHLPSURYHPHQWV       %$YRLGDQFHDQG5HFRYHU\
WKDWLWPDGHWRWKHSURSHUW\
                                                                        7KH 7UXVWHH SURSHUO\ DYRLGHG WKH PRUWJDJH IRU EHLQJ
  7KUHHRWKHUVWDWXWHVDUHDOVRUHOHYDQW7KHILUVWLVD     LPSURSHUO\ZLWQHVVHG2KLR5HYLVHG&RGHZKLFK
ZKLFK GHILQHV WKH SURSHUW\ WKDW FRPSULVHV WKH EDQNUXSWF\       SULRUWRLWVUHSHDOSURYLGHGUHFRUGHGPRUWJDJHVDQLUUHEXWWDEOH
HVWDWH                                                               SUHVXPSWLRQ RI YDOLGLW\ GRHV QRW JRYHUQ WKLV FDVH ZKLFK
                                                                      LQYROYHV D EDQNUXSWF\ SHWLWLRQ   ILOHG EHIRUH WKH VKRUWOLYHG
    >7KH@HVWDWHLVFRPSULVHGRIDOOWKHIROORZLQJSURSHUW\          EHFDPHHIIHFWLYH $V ZH KHOGLQ=DSWRFN\Y
    ZKHUHYHUORFDWHGDQGE\ZKRPHYHUKHOG$Q\           &KDVH 0DQKDWWDQ %DQN ,Q UH =DSWRFN\  )G 
    LQWHUHVWLQSURSHUW\WKDWWKHWUXVWHHUHFRYHUVXQGHUVHFWLRQ       WK &LU  DQRWKHU FDVH WKDW LQYROYHG D
    RIWKLVWLWOH$Q\LQWHUHVWLQSURSHUW\     EDQNUXSWF\SHWLWLRQILOHGEHIRUHZHQWLQWRHIIHFW
    SUHVHUYHGIRUWKHEHQHILWRIRUWUDQVIHUUHGWRWKHHVWDWH          86&  D JLYHV WKH WUXVWHH WKH SRZHU WR DYRLG D
    XQGHUVHFWLRQRIWKLVWLWOH                            PRUWJDJHWKDWZDVLPSURSHUO\ZLWQHVVHGXQGHU2KLRODZ
86&D7KHVHFRQGLVDZKLFKJLYHVWKH             $FFRUGLQJO\ZHPXVWGHWHUPLQHZKHWKHU,0&LVHQWLWOHGWR
WUXVWHHWKHSRZHUWRDYRLGWKHPRUWJDJHIRUEHLQJLPSURSHUO\          DOLHQLQWHUHVWLQWKHSURSHUW\SXUVXDQWWRH&RXUWVLQ
ZLWQHVVHG                                                            WKLVFLUFXLWKDYHVSOLWRQWKHLVVXH&RPSDUH(LVHQY$OOLHG
                                                                      %DQFVKDUHV 0RUWJDJH &RUS ,Q UH 3ULHVW  %5 
    7KHWUXVWHHVKDOOKDYHWKHULJKWVDQGSRZHUVRIRU         %DQNU1'2KLRKROGLQJWKDWPRUWJDJHLQWHUHVWLV
    PD\DYRLGDQ\WUDQVIHURISURSHUW\RIWKHGHEWRURUDQ\           SUHVHUYHGIRUWKHHVWDWHLPPHGLDWHO\XSRQDYRLGDQFHZLWKRXW
    REOLJDWLRQLQFXUUHGE\WKHGHEWRUWKDWLVYRLGDEOHE\       UHFRXUVHWRUHFRYHU\ZLWK+HOEOLQJY.UXHJHU,QUH
     D ERQD ILGH SXUFKDVHU RI UHDO SURSHUW\ RWKHU WKDQ   .UXHJHU 1R   :/  %DQNU 1'
    IL[WXUHVIURPWKHGHEWRUDJDLQVWZKRPDSSOLFDEOHODZ            2KLRsXQHKROGLQJWKDWOLHQLVDYDLODEOHWR
    SHUPLWV VXFK WUDQVIHU WR EH SHUIHFWHG WKDW REWDLQV WKH   WUDQVIHUHHDIWHUPRUWJDJHZDVDYRLGHGHYHQLIWKHUHZDVQR
    VWDWXVRIDERQDILGHSXUFKDVHUDQGKDVSHUIHFWHGVXFK            DFWXDOUHFRYHU\:HDJUHHZLWKWKHFRXUWLQ,QUH3ULHVWDQG
    WUDQVIHUDWWKHWLPHRIWKHFRPPHQFHPHQWRIWKHFDVH             KROGWKDWEHFDXVHWKH7UXVWHHQHLWKHUVRXJKWQRUQHHGHGWR
    ZKHWKHURUQRWVXFKDSXUFKDVHUH[LVWV                           VHHNUHFRYHU\KHUHGLGQRWDSSO\DQGWKHHOLHQ
                                                                      WKDW,0&VRXJKWZDVXQDYDLODEOH
 86&  D  7KH WKLUG LV   ZKLFK JRYHUQV
WUDQVIHUVWKDWDUHDYRLGHGDQGSUHVHUYHVWKHPIRUWKHHVWDWH            )LUVW DYRLGDQFH DQG UHFRYHU\ DUH GLVWLQFW FRQFHSWV DQG
                                                                      SURFHVVHV7KLVLVFOHDUIURPERWKWKHVWDWXWHLWVHOIDQGIURP
    $Q\WUDQVIHUDYRLGHGXQGHUVHFWLRQ            LWVOHJLVODWLYHKLVWRU\$YRLGDQFHDQGUHFRYHU\DUHDGGUHVVHG
    RUDRIWKLVWLWOHRUDQ\OLHQYRLGXQGHU         LQ WZR VHSDUDWH VHFWLRQV RI WKH FRGH  86&   DQG
    VHFWLRQGRIWKLVWLWOHLVSUHVHUYHGIRUWKHEHQHILWRI       UHVSHFWLYHO\ DQG KDYH WZR VHSDUDWH VWDWXWHV RI
    WKHHVWDWHEXWRQO\ZLWKUHVSHFWWRSURSHUW\RIWKHHVWDWH       OLPLWDWLRQV  86&  D DQG  I UHVSHFWLYHO\
                                                                      $FFRUGLQJWRWKH+RXVH5HSRUWIRUWKH%DQNUXSWF\5HIRUP
86&                                                      $FWRImHQXQFLDWHVWKHVHSDUDWLRQEHWZHHQWKH

                                                                          
                                                                           6HFWLRQ  EHFDPH HIIHFWLYH RQ sXQH   DQG ZDV
                                                                      UHSHDOHG LQ DQ DFW VLJQHG E\ WKH *RYHUQRU RQ 1RYHPEHU  