The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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² ² 'HSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWV7KHDPRXQWFKDUJHGIRUWKHYHKLFOH VGHFOLQHLQYDOXH WKURXJKQRUPDOXVHDQGIRURWKHULWHPVSDLGRYHUWKHOHDVHWHUP 5HQWFKDUJH7KHDPRXQWFKDUJHGLQDGGLWLRQWRWKHGHSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWV 7RWDORIEDVHPRQWKO\SD\PHQWV7KHGHSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWVSOXVWKHUHQWFKDUJH /HDVHSD\PHQWV7KHQXPEHURISD\PHQWVLQ\RXUOHDVH %DVHPRQWKO\SD\PHQW 0RQWKO\VDOHVXVHWD[ BBBBBBBBBBBBBBBBBBBBB ¸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·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² ² 'HSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWV7KHDPRXQWFKDUJHGIRUWKHYHKLFOH VGHFOLQHLQYDOXH WKURXJKQRUPDOXVHDQGIRURWKHULWHPVSDLGRYHUWKHOHDVHWHUP 5HQWFKDUJH7KHDPRXQWFKDUJHGLQDGGLWLRQWRWKHGHSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWV 7RWDORIEDVHPRQWKO\SD\PHQWV7KHGHSUHFLDWLRQDQGDQ\DPRUWL]HGDPRXQWVSOXVWKHUHQWFKDUJH /HDVHSD\PHQWV7KHQXPEHURISD\PHQWVLQ\RXUOHDVH %DVHPRQWKO\SD\PHQW 0RQWKO\VDOHVXVHWD[ BBBBBBBBBBBBBBBBBBBBB ¸ 7RWDOPRQWKO\SD\PHQW (DUO\7HUPLQDWLRQ<RXPD\KDYHWRSD\DVXEVWDQWLDOFKDUJHLI\RXHQGWKLVOHDVHHDUO\7KHFKDUJHPD\EHXSWRVHYHUDO WKRXVDQGGROODUV7KHDFWXDOFKDUJHZLOOGHSHQGRQZKHQWKHOHDVHLVWHUPLQDWHG7KHHDUOLHU\RXHQGWKHOHDVHWKHJUHDWHU WKLVFKDUJHLVOLNHO\WREH ([FHVVLYH:HDUDQG8VH<RXPD\EHFKDUJHGIRUH[FHVVLYHZHDUEDVHGRQRXUVWDQGDUGVIRUQRUPDOXVH>DQGIRUPLOHDJHLQH[FHVV RI BBBBBBBBBBPLOHVSHU\HDUDWWKHUDWHRIBBBBBBBBSHUPLOH@ 3XUFKDVH2SWLRQDW(QGRI/HDVH7HUP><RXKDYHDQRSWLRQWRSXUFKDVHWKHYHKLFOHDWWKHHQGRIWKHOHDVHWHUPIRUBBBBBBBBBBBB >DQGDSXUFKDVHRSWLRQIHHRIBBBBBBBBBBBBBBBBB@@><RXGRQRWKDYHDQRSWLRQWRSXUFKDVHWKHYHKLFOHDWWKHHQGRIWKHOHDVHWHUP@ 2WKHU,PSRUWDQW7HUPV6HH\RXUOHDVHGRFXPHQWVIRUDGGLWLRQDOLQIRUPDWLRQRQHDUO\WHUPLQDWLRQSXUFKDVHRSWLRQVDQGPDLQWHQDQFH UHVSRQVLELOLWLHVZDUUDQWLHVODWHDQGGHIDXOWFKDUJHVLQVXUDQFHDQGDQ\VHFXULW\LQWHUHVWLIDSSOLFDEOH $SSHQGL[$0RGHO&ORVHG(QGRU1HW9HKLFOH/HDVH'LVFORVXUHV 3DJHRI >7KHIROORZLQJSURYLVLRQVDUHWKHQRQVHJUHJDWHGGLVFORVXUHVUHTXLUHGXQGHU5HJXODWLRQ0@ <HDU 0DNH 'HVFULSWLRQRI/HDVHG3URSHUW\ 0RGHO %RG\6W\OH 9HKLFOH,' 2IILFLDO)HHVDQG7D[HV7KHWRWDODPRXQW\RXZLOOSD\IRURIILFLDODQGOLFHQVHIHHVUHJLVWUDWLRQWLWOHDQGWD[HVRYHUWKHWHUPRI\RXUOHDVHZKHWKHU LQFOXGHGZLWK\RXUPRQWKO\SD\PHQWVRUDVVHVVHGRWKHUZLVH ,QVXUDQFH7KHIROORZLQJW\SHVDQGDPRXQWVRILQVXUDQFHZLOOEHDFTXLUHGLQFRQQHFWLRQZLWKWKLVOHDVH :H OHVVRU ZLOOSURYLGHWKHLQVXUDQFHFRYHUDJHTXRWHGDERYHIRUDWRWDOSUHPLXPFRVWRI <RX OHVVHH DJUHHWRSURYLGHLQVXUDQFHFRYHUDJHLQWKHDPRXQWDQGW\SHVLQGLFDWHGDERYH 6WDQGDUGVIRU:HDUDQG8VH7KHIROORZLQJVWDQGDUGVDUHDSSOLFDEOHIRUGHWHUPLQLQJXQUHDVRQDEOHRUH[FHVVZHDUDQGXVHRIWKHOHDVHGYHKLFOH 0DLQWHQDQFH ><RXDUHUHVSRQVLEOHIRUWKHIROORZLQJPDLQWHQDQFHDQGVHUYLFLQJRIWKHOHDVHGYHKLFOH @ >:HDUHUHVSRQVLEOHIRUWKHIROORZLQJPDLQWHQDQFHDQGVHUYLFLQJRIWKHOHDVHGYHKLFOH @ :DUUDQWLHV7KHOHDVHGYHKLFOHLVVXEMHFWWRWKHIROORZLQJH[SUHVVZDUUDQWLHV (DUO\7HUPLQDWLRQDQG'HIDXOW D <RXPD\WHUPLQDWHWKLVOHDVHEHIRUHWKHHQGRIWKHOHDVHWHUPXQGHUWKHIROORZLQJFRQGLWLRQV 7KHFKDUJHIRUVXFKHDUO\WHUPLQDWLRQLV E :HPD\WHUPLQDWHWKLVOHDVHEHIRUHWKHHQGRIWKHOHDVHWHUPXQGHUWKHIROORZLQJFRQGLWLRQV 8SRQVXFKWHUPLQDWLRQZHVKDOOEHHQWLWOHGWRWKHIROORZLQJFKDUJH V IRU F 7RWKHH[WHQWWKHVHFKDUJHVWDNHLQWRDFFRXQWWKHYDOXHRIWKHYHKLFOHDWWHUPLQDWLRQLI\RXGLVDJUHHZLWKWKHYDOXHZHDVVLJQWRWKHYHKLFOH\RXPD\REWDLQ DW\RXURZQH[SHQVHIURPDQLQGHSHQGHQWWKLUGSDUW\DJUHHDEOHWRERWKRIXVDSURIHVVLRQDODSSUDLVDORIWKHBBBBBBBBBBBBBBBBBBBYDOXHRIWKHOHDVHGYHKLFOH ZKLFKFRXOGEHUHDOL]HGDWVDOH7KHDSSUDLVHGYDOXHVKDOOWKHQEHXVHGDVWKHDFWXDOYDOXH 6HFXULW\,QWHUHVW:HUHVHUYHDVHFXULW\LQWHUHVWRIWKHIROORZLQJW\SHLQWKHSURSHUW\OLVWHGEHORZWRVHFXUHSHUIRUPDQFHRI\RXUREOLJDWLRQVXQGHUWKLVOHDVH /DWH3D\PHQWV7KHFKDUJHIRUODWHSD\PHQWVLV 2SWLRQWR3XUFKDVH/HDVHG3URSHUW\3ULRUWRWKH(QGRIWKH/HDVH ><RXKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGYHKLFOHSULRUWRWKHHQGRIWKHWHUP 7KHSULFHZLOOEH>BBBBBBBBBBBBBBBBBBBBBBB>WKHPHWKRGRIGHWHUPLQLQJWKHSULFH@@><RXGRQRWKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGYHKLFOH@ $SSHQGL[$0RGHO)XUQLWXUH/HDVH'LVFORVXUHV )HGHUDO&RQVXPHU/HDVLQJ$FW'LVFORVXUHV 'DWH /HVVRU V /HVVHH V 'HVFULSWLRQRI/HDVHG3URSHUW\ ,WHP $PRXQW'XHDW/HDVH6LJQLQJ RU'HOLYHU\ )LUVWPRQWKO\SD\PHQW BBBBBBBB 5HIXQGDEOHVHFXULW\GHSRVLW BBBBBBBB 'HOLYHU\,QVWDOODWLRQIHH BBBBBBBB BBBBBBBBBBBBBBBBBBB BBBBBBBB 7RWDO BBBBBBBB &RORU 6WRFN 0RQWKO\3D\PHQWV <RXUILUVWPRQWKO\SD\PHQWRIBBBBBBBBBBBBB LVGXHRQ BBBBBBBBBBBBBBBBBBBBBIROORZHGE\ BBBBBBSD\PHQWVRIBBBBBBBBBBBGXHRQ WKH BBBBBBBBBRIHDFKPRQWK7KHWRWDORI\RXU PRQWKO\SD\PHQWVLVBBBBBBBBBBBBB 0IJ 4XDQWLW\ 2WKHU&KDUJHV QRWSDUWRI 7RWDORI3D\PHQWV \RXUPRQWKO\SD\PHQW 7KHDPRXQW\RX ZLOOKDYHSDLGE\ 3LFNXSIHH BBBBBBBBB WKHHQGRIWKHOHDVH BBBBBBBBB BBBBBBBBB 7RWDO BBBBBBBBB BBBBBBBBBBBBBBBB 3XUFKDVH2SWLRQDW(QGRI/HDVH7HUP><RXKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGSURSHUW\DWWKHHQGRIWKHOHDVHWHUPIRUBBBBBBBBBBB >DQGDSXUFKDVHRSWLRQIHHRIBBBBBBBBBBBBBBB@@><RXGRQRWKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGSURSHUW\DWWKHHQGRIWKHOHDVHWHUP@ 2WKHU,PSRUWDQW7HUPV6HH\RXUOHDVHGRFXPHQWVIRUDGGLWLRQDOLQIRUPDWLRQRQHDUO\WHUPLQDWLRQSXUFKDVHRSWLRQVDQGPDLQWHQDQFH UHVSRQVLELOLWLHVZDUUDQWLHVODWHDQGGHIDXOWFKDUJHVLQVXUDQFHDQGDQ\VHFXULW\LQWHUHVWLIDSSOLFDEOH >7KHIROORZLQJSURYLVLRQVDUHWKHQRQVHJUHJDWHGGLVFORVXUHVUHTXLUHGXQGHU5HJXODWLRQ0@ 2IILFLDO)HHVDQG7D[HV7KHWRWDODPRXQW\RXZLOOSD\IRURIILFLDOIHHVDQGWD[HVRYHUWKHWHUPRI\RXUOHDVHZKHWKHULQFOXGHGZLWK\RXUPRQWKO\ SD\PHQWVRUDVVHVVHGRWKHUZLVHBBBBBBBBBBBBBBBBB ,QVXUDQFH7KHIROORZLQJW\SHVDQGDPRXQWVRILQVXUDQFHZLOOEHDFTXLUHGLQFRQQHFWLRQZLWKWKLVOHDVHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBB:H OHVVRU ZLOOSURYLGHWKHLQVXUDQFHFRYHUDJHTXRWHGDERYHIRUDWRWDOSUHPLXPFRVWRIBBBBBBBBBBBBBBBBB BBBBBB<RX OHVVHH DJUHHWRSURYLGHLQVXUDQFHFRYHUDJHLQWKHDPRXQWDQGW\SHVLQGLFDWHGDERYH 6WDQGDUGVIRU:HDUDQG8VH7KHIROORZLQJVWDQGDUGVDUHDSSOLFDEOHIRUGHWHUPLQLQJXQUHDVRQDEOHRUH[FHVVZHDUDQGXVHRIWKHOHDVHGSURSHUW\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0DLQWHQDQFH ><RXDUHUHVSRQVLEOHIRUWKHIROORZLQJPDLQWHQDQFHDQGVHUYLFLQJRIWKHOHDVHGSURSHUW\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB@ >:HDUHUHVSRQVLEOHIRUWKHIROORZLQJPDLQWHQDQFHDQGVHUYLFLQJRIWKHOHDVHGSURSHUW\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB@ :DUUDQWLHV7KHOHDVHGSURSHUW\LVVXEMHFWWRWKHIROORZLQJH[SUHVVZDUUDQWLHV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB (DUO\7HUPLQDWLRQDQG'HIDXOW D <RXPD\WHUPLQDWHWKLVOHDVHEHIRUHWKHHQGRIWKHOHDVHWHUPXQGHUWKHIROORZLQJFRQGLWLRQV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7KHFKDUJHIRUVXFKHDUO\WHUPLQDWLRQLVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB E :HPD\WHUPLQDWHWKLVOHDVHEHIRUHWKHHQGRIWKHOHDVHWHUPXQGHUWKHIROORZLQJFRQGLWLRQVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 8SRQVXFKWHUPLQDWLRQZHVKDOOEHHQWLWOHGWRWKHIROORZLQJFKDUJH V IRUBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $SSHQGL[$0RGHO)XUQLWXUH/HDVH'LVFORVXUHV 3DJHRI (DUO\7HUPLQDWLRQDQG'HIDXOW FRQWLQXHG F 7RWKHH[WHQWWKHVHFKDUJHVWDNHLQWRDFFRXQWWKHYDOXHRIWKHOHDVHGSURSHUW\DWWHUPLQDWLRQLI\RXGLVDJUHHZLWKWKHYDOXHZHDVVLJQWRWKH SURSHUW\\RXPD\REWDLQDW\RXURZQH[SHQVHIURPDQLQGHSHQGHQWWKLUGSDUW\DJUHHDEOHWRERWKRIXVDSURIHVVLRQDODSSUDLVDORIWKH BBBBBBBBBBBBBBYDOXHRIWKHSURSHUW\ZKLFKFRXOGEHUHDOL]HGDWVDOH7KHDSSUDLVHGYDOXHVKDOOWKHQEHXVHGDVWKHDFWXDOYDOXH 6HFXULW\,QWHUHVW:HUHVHUYHDVHFXULW\LQWHUHVWRIWKHIROORZLQJW\SHLQWKHSURSHUW\OLVWHGEHORZWRVHFXUHSHUIRUPDQFHRI\RXUREOLJDWLRQVXQGHUWKLVOHDVH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB /DWH3D\PHQWV7KHFKDUJHIRUODWHSD\PHQWVLVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 3XUFKDVH2SWLRQ3ULRUWRWKH(QGRIWKH/HDVH7HUP ><RXKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGSURSHUW\SULRUWRWKHHQGRIWKHWHUP7KHSULFHZLOOEH>BBBBBBBBB@WKHPHWKRGRIGHWHUPLQLQJ WKHSULFH@@ ><RXGRQRWKDYHDQRSWLRQWRSXUFKDVHWKHOHDVHGSURSHUW\@