INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 12:23 – eprint6 – 4247 Section 09
ANNEX 7
ADDITIONAL TERMS AND CONDITIONS FOR INFLATION LINKED NOTES
The terms and conditions applicable to Inflation Linked Notes shall comprise the Terms and
Conditions of the Notes and the additional Terms and Conditions set out below (the “Inflation Linked
Conditions”), in each case subject to completion and/or amendment in the applicable Final Terms. In the
event of any inconsistency between the Terms and Conditions of the Notes, and the Inflation Linked
Conditions, the Inflation Linked Conditions shall prevail. In the event of any inconsistency between (i) the
Terms and Conditions of the Notes and/or the Inflation Linked Conditions and (ii) the Final Terms, the
Final Terms shall prevail.
1. Definitions
For the purpose of the Inflation Linked Notes:
Additional Terms and Conditions for Inflation Linked Notes
“Cut-Off Date” means, in respect of a Determination Date, five Business Days prior to such
Determination Date, unless otherwise stated in the applicable Final Terms.
“Delayed Index Level Event” means, in respect of any Determination Date and an Inflation Index,
that the relevant Index Sponsor fails to publish or announce the level of such Index (the “Relevant Level”)
in respect of any Reference Month which is to be utilized in any calculation or determination to be made
by the Issuer in respect of such Determination Date, at any time on or prior to the Cut-Off Date.
“Determination Date” means each date specified as such in the applicable Final Terms.
“End Date” means each date specified as such in the applicable Final Terms.
“Fallback Bond” means, in respect of an Inflation Index, a bond selected by the Calculation Agent
and issued by the government of the country to whose level of inflation the relevant Inflation Index relates
and which pays a coupon or redemption amount which is calculated by reference to such Inflation Index,
with a maturity date which falls on (a) the same day as the End Date as specified in the applicable Final
Terms, (b) the next longest maturity after the End Date if there is no such bond maturing on the End Date,
or (c) the next shortest maturity before the End Date if no bond defined in (a) or (b) is selected by the
Calculation Agent. If the relevant Inflation Index relates to the level of inflation across the European
Monetary Union, the Calculation Agent will select an inflation-linked bond that is a debt obligation of one
of the governments (but not any government agency) of France, Italy, Germany, or Spain and which pays a
coupon or redemption amount which is calculated by reference to the level of inflation in the European
Monetary Union. In each case, the Calculation Agent will select the Fallback Bond from those inflationlinked
bonds issued on or before the Issue Date and, if there is more than one inflation-linked bond
maturing on the same date, the Fallback Bond shall be selected by the Calculation Agent from those
bonds. If the Fallback Bond redeems, the Calculation Agent will select a new Fallback Bond on the same
basis, but selected from all eligible bonds in issue at the time the original Fallback Bond redeems
(including any bond for which the redeemed bond is exchanged).
“Inflation Index” means each inflation index specified in the applicable Final Terms and related
expressions shall be construed accordingly.
“Inflation Index Sponsor” means, in relation to an Inflation Index, the entity that publishes or
announces (directly or through an agent) the level of such Inflation Index which, as of the Issue Date, is
the Inflation Index Sponsor specified in the applicable Final Terms.
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