*51R0D\ &DVH%ULHI'LJHVW

7LWOH5HSXEOLFRIWKH3KLOLSSLQHVY0DULD/RXUGHV3$6HUHQR

)DFWV
0DULD /RXUGHV 3 $ 6HUHQR ZDV DSSRLQWHG &KLHI -XVWLFH RI WKH 6XSUHPH &RXUW RI WKH
3KLOLSSLQHVE\WKHQ3UHVLGHQW%HQLJQR6$TXLQR,,,LQ3ULRUWRKHUDSSRLQWPHQWWRWKH
6XSUHPH&RXUW6HUHQRVHUYHGDVDIDFXOW\PHPEHURIWKH8QLYHUVLW\RIWKH3KLOLSSLQHV
&ROOHJHRI/DZDQGDVOHJDOFRXQVHOLQYDULRXVJRYHUQPHQWDJHQFLHVLQFOXGLQJVHUYLQJDV
OHJDOFRXQVHOIRUWKH5HSXEOLFLQLQWHUQDWLRQDODUELWUDWLRQV

7KH5HSXEOLFRIWKH3KLOLSSLQHVUHSUHVHQWHGE\6ROLFLWRU*HQHUDO-RVH&&DOLGDILOHGDTXR
ZDUUDQWRSHWLWLRQEHIRUHWKH6XSUHPH&RXUWVHHNLQJWRGHFODUHWKHDSSRLQWPHQWRI6HUHQR
DV&KLHI-XVWLFHYRLG7KHEDVLVIRUWKHSHWLWLRQZDVWKHDOOHJHGIDLOXUHRI6HUHQRWRILOHKHU
6WDWHPHQWVRI$VVHWV/LDELOLWLHVDQG1HW:RUWK 6$/1V UHTXLUHGIRUJRYHUQPHQWSRVLWLRQV
7KHVHILOLQJVZHUHIRUWKHSHULRGZKHQVKHZDVDSURIHVVRUDWWKH83&ROOHJHRI/DZDQG
ZKLOHHPSOR\HGDVOHJDOFRXQVHOIRUWKHJRYHUQPHQW

7KH 6ROLFLWRU *HQHUDO DUJXHG WKDW 6HUHQRdV IDLOXUH WR ILOH DQG VXEPLW KHU 6$/1V
GHPRQVWUDWHGDODFNRILQWHJULW\PDNLQJKHULQHOLJLEOHWRKROGWKHSRVLWLRQRI&KLHI-XVWLFH
7KH SHWLWLRQ ZDV DQFKRUHG RQ WKH QRWLRQ WKDW eSURYHQ LQWHJULW\f LV DQ LQGLVSHQVDEOH
UHTXLUHPHQW IRU DSSRLQWPHQW WR WKH -XGLFLDU\ DV PDQGDWHG E\ WKH &RQVWLWXWLRQ RI WKH
3KLOLSSLQHV

6HUHQRFRXQWHUHGWKDWDVDQLPSHDFKDEOHRIILFHUVKHFDQRQO\EHUHPRYHGWKURXJKWKH
LPSHDFKPHQWSURFHVVSURYLGHGE\WKH&RQVWLWXWLRQDQGWKDWWKHUHPHG\RITXRZDUUDQWRLV
LQDSSOLFDEOH

7KHFDVHWKDWOHGWRWKHRXVWHURI6HUHQRIURPWKHSRVLWLRQRI&KLHI-XVWLFHLQYROYHGDVHULHV
RIOHJDOPDQHXYHULQJVLQLWLDWHGE\WKH2IILFHRIWKH6ROLFLWRU*HQHUDO

,VVXHV
:KHWKHUWKH6XSUHPH&RXUWKDVWKHMXULVGLFWLRQWRKHDUDTXRZDUUDQWRSHWLWLRQDJDLQVW
DQLPSHDFKDEOHRIILFHUVXFKDVWKH&KLHI-XVWLFHRIWKH3KLOLSSLQHV
:KHWKHUWKHUHPHG\RITXRZDUUDQWRLVDSSURSULDWHDJDLQVW6HUHQRJLYHQWKHDOOHJDWLRQV
RIKHUIDLOXUHWRVDWLVI\WKHUHTXLUHPHQWRILQWHJULW\GXHWRQRQILOLQJRI6$/1V
 :KHWKHU 6HUHQR FDQ RQO\ EH UHPRYHG E\ LPSHDFKPHQW DQG QRW E\ DQ\ RWKHU OHJDO
SURFHHGLQJV
:KHWKHUWKHSHWLWLRQLVEDUUHGE\SUHVFULSWLRQ
:KHWKHUWKHVXSSOHPHQWDWLRQRIDJURXQGIRUWD[IUDXGLQWKHTXRZDUUDQWRSHWLWLRQ

bEDWDVRUJ_
 *51R0D\ &DVH%ULHI'LJHVW

FRQVWLWXWHVIRUXPVKRSSLQJ

&RXUWdV'HFLVLRQ
7KH&RXUWDVVHUWHGLWVMXULVGLFWLRQWRKHDUWKHTXRZDUUDQWRSHWLWLRQ,WQRWHGWKDWZKLOH
LPSHDFKPHQWLVDSROLWLFDOSURFHVVTXRZDUUDQWRLVDMXGLFLDOSURFHHGLQJWKDWDGGUHVVHVWKH
OHJDOLW\RIDSXEOLFRIILFLDOdVDSSRLQWPHQW
7KH&RXUWKHOGWKDWWKHIDLOXUHWRILOHWKHUHTXLUHG6$/1VDORQJZLWKRWKHUJURXQGV
VKRZVDODFNRILQWHJULW\WKXVUHQGHULQJ6HUHQRLQHOLJLEOHIRUWKHSRVLWLRQRI&KLHI-XVWLFH
 7KH &RXUW UXOHG WKDW WKH UHPHG\ RI TXR ZDUUDQWR LV QRW H[FOXVLYH WR LPSHDFKPHQW
SURFHHGLQJVDQGWKDWERWKOHJDOUHPHGLHVFRXOGFRH[LVW
7KH&RXUWUHMHFWHGWKHDUJXPHQWWKDWWKHSHWLWLRQZDVEDUUHGE\SUHVFULSWLRQDVVHUWLQJ
WKHSULQFLSOHeQXOOXPWHPSXVRFFXUULWUHJLfZKLFKLPSOLHVWKDWWKH6WDWHLVQRWERXQGE\
SUHVFULSWLRQLQEULQJLQJDFWLRQVLQWKHSXEOLFLQWHUHVW
7KH&RXUWGLGQRWILQGIRUXPVKRSSLQJLQWKHILOLQJRIWKHTXRZDUUDQWRSHWLWLRQFODULI\LQJ
WKDWWKLVFDVHDQGWKHLPSHDFKPHQWSURFHHGLQJVLQYROYHGLIIHUHQWLVVXHVDQGSURFHHGLQJV

'RFWULQH
7KH6XSUHPH&RXUWKDVRULJLQDOMXULVGLFWLRQRYHUSHWLWLRQVIRUTXRZDUUDQWRDJDLQVW
SXEOLFRIILFLDOVLQFOXGLQJWKH&KLHI-XVWLFHDQGVXFKMXULVGLFWLRQFRH[LVWVZLWKWKHSURFHVVRI
LPSHDFKPHQW
 e3URYHQ LQWHJULW\f LV DQ HVVHQWLDO TXDOLILFDWLRQ IRU PHPEHUVKLS LQ WKH -XGLFLDU\ DQG
IDLOXUHWRFRPSO\ZLWKWKHUHTXLUHPHQWRIILOLQJ6$/1VFDQEHDJURXQGWRFKDOOHQJHWKH
YDOLGLW\RIDQDSSRLQWPHQW
7KH6WDWHKDVWKHDXWKRULW\DQGLQWHUHVWLQHQVXULQJWKDWRQO\TXDOLILHGLQGLYLGXDOVKROG
SXEOLFRIILFHDQGWKH6ROLFLWRU*HQHUDOPD\FRPPHQFHDTXRZDUUDQWRDFWLRQWRFKDOOHQJH
WKHDSSRLQWPHQWRIXQTXDOLILHGLQGLYLGXDOV
4XRZDUUDQWRSURFHHGLQJVDQGLPSHDFKPHQWFDQSURFHHGLQGHSHQGHQWO\DQGDUHQRW
PXWXDOO\H[FOXVLYHUHPHGLHV

&ODVV1RWHV
c,QFULPLQDOFDVHVGLVFXVVKRZFULPHVDUHGHILQHGE\ODZQRWLQJWKDWDFWLRQVDUHHLWKHU
PDOXPLQVH ZURQJLQLWVHOI RUPDOXPSURKLELWXP ZURQJEHFDXVHSURKLELWHG 
c ,Q FLYLO FDVHV HPSKDVL]H WKH QHFHVVDU\ HOHPHQWV RI D FODLP VXFK DV EUHDFK GXW\
FDXVDWLRQDQGGDPDJHV
c,QDGPLQLVWUDWLYHRUFRQVWLWXWLRQDOODZRXWOLQHWKHVSHFLILFTXDOLILFDWLRQVIRUSXEOLFRIILFH
SURYLGHGE\VWDWXWHVRUFRQVWLWXWLRQDOSURYLVLRQV
c9HUEDWLPFLWDWLRQe7KH&RQVWLWXWLRQGHPDQGVLQQRXQFHUWDLQWHUPVWKDWWKH&KLHI

bEDWDVRUJ_
 *51R0D\ &DVH%ULHI'LJHVW

-XVWLFH EH WKH HPERGLPHQW RI PRUDO DQG HWKLFDO SULQFLSOHV +H RU VKH PXVW EH RI
XQTXHVWLRQDEOHFKDUDFWHUSRVVHVVHGRIPRUDODXWKRULW\WRGHPDQGREHGLHQFHWRWKHODZDQG
WRLPSRVHWKHUXOHRIFRQGXFWf 3KLO
c([SODLQKRZWKHHOHPHQWVSULQFLSOHVRUVWDWXWHVDUHDSSOLHGLQWKHFDVH+HUHWKHIRFXV
ZDVRQWKHFRQVWLWXWLRQDOTXDOLILFDWLRQRIeSURYHQLQWHJULW\fDQGLWVLQWHUSUHWDWLRQLQOLJKWRI
WKHUHTXLUHPHQWRIILOLQJ6$/1V

+LVWRULFDO%DFNJURXQG
c 7KH TXR ZDUUDQWR SHWLWLRQ DJDLQVW 6HUHQR LV KLVWRULFDOO\ VLJQLILFDQW DV LW LV WKH ILUVW
LQVWDQFHLQ3KLOLSSLQHKLVWRU\ZKHUHDFKLHIMXVWLFHZDVUHPRYHGIURPRIILFHWKURXJKD
SHWLWLRQIRUTXRZDUUDQWR
c7KHFDVHLVVLWXDWHGZLWKLQWKHEURDGHUFRQVWLWXWLRQDOIUDPHZRUNRIFKHFNVDQGEDODQFHV
ZKLFKDOORZVIRUERWKMXGLFLDOUHYLHZDQGLPSHDFKPHQWDVPHFKDQLVPVWRFRUUHFWSXEOLF
ZURQJVDQGHQIRUFHDFFRXQWDELOLW\RISXEOLFRIILFHUV
c,QWKHKLVWRULFDOFRQWH[WRIWKH3KLOLSSLQHVLPSHDFKPHQWKDVWUDGLWLRQDOO\EHHQWKHPHDQV
WRUHPRYHKLJKUDQNLQJRIILFLDOVVXFKDVWKH3UHVLGHQW9LFH3UHVLGHQWDQGPHPEHUVRIWKH
6XSUHPH&RXUW6HUHQRdVFDVHZDVH[FHSWLRQDODVLWLQYRNHGWKHH[WUDRUGLQDU\ZULWRITXR
ZDUUDQWRW\SLFDOO\UHVHUYHGIRULQTXLULQJLQWRWKHDXWKRULW\E\ZKLFKSXEOLFRIILFHLVKHOGWR
FKDOOHQJHKHUDSSRLQWPHQWDQGXOWLPDWHO\RXVWKHUIURPWKHSRVLWLRQRI&KLHI-XVWLFH

bEDWDVRUJ_