INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 13:20 – eprint6 – 4247 Section 10
United States Taxation
dividends pursuant to United States federal income tax law), provided that (a) the gain is not effectively
connected with the conduct of trade or business within the United States, or a permanent establishment
maintained in the United States if certain tax treaties apply, (b) in the case of a United States Alien that is
an individual, the United States Alien is not present in the United States for 183 days or more in the
taxable year of the sale, exchange or retirement of the Note, (c) the Note is not a “United States real
property interest” for United States federal income tax purposes, and (d) the United States Alien is not
subject to tax pursuant to certain provisions of United States federal income tax law applicable to certain
expatriates.
Backup Withholding and Information Reporting for Bearer Notes Other than Structured Notes
A 28.00 per cent. backup withholding tax (which will be increased to 31.00 per cent. for the years
2011 and thereafter) and information reporting requirements apply to certain payments of principal of and
interest on an obligation, and payments of the proceeds of the sale of an obligation before maturity, to
certain noncorporate United States holders. Under current United States Treasury Department regulations,
backup withholding and information reporting will not apply to payments of principal of or interest on a
Bearer Note which are made outside the United States (other than payments made to an address in the
United States or by transfer to an account maintained by the holder with a bank in the United States) by
the Issuer or any Paying Agent (acting in its capacity as such) to a United States Alien holder of a Bearer
Note, provided that neither the Issuer nor any such Paying Agent has actual knowledge that the holder is a
United States person. In addition, backup withholding and information reporting will not apply to any
payment of principal of or interest on a Bearer Note to a beneficial owner of a Bearer Note by a foreign
office of a foreign custodian, foreign nominee, or other foreign agent of such beneficial owner, or to any
payment of the proceeds of the sale of a Bearer Note by a foreign office of a foreign “broker” (as defined
in applicable Treasury Regulations), provided that such nominee, custodian, agent or broker derives less
than 50.00 per cent. of its gross income for certain periods from the conduct of a trade or business in the
United States and is not (1) a “controlled foreign corporation” as to the United States or (2) a foreign
partnership that is either engaged in a United States trade or business or whose United States partners in
the aggregate hold more than 50.00 per cent. of the income or capital interests in the partnership within the
meaning of the Code. Payment of principal of or interest on a Bearer Note to the beneficial owner thereof
by a foreign office of any other custodian, nominee, or agent, and payment by a foreign office of any other
broker of the proceeds of a sale of a Bearer Note, will not be subject to backup withholding, but will be
subject to information reporting unless the custodian, nominee, agent, or broker has documentary evidence
in its records that the beneficial owner is not a United States person and certain conditions are met, or the
beneficial owner otherwise establishes an exemption. Payment of principal of or interest on a Bearer Note
to the beneficial owner thereof by a United States office of a custodian, nominee, or agent, or the payment
by the United States office of a broker of the proceeds of a sale of a Bearer Note, is subject to both backup
withholding and information reporting unless the beneficial owner certifies (1) its non-United States status
under penalties of perjury and the payor does not have knowledge that the beneficial owner is a United
States person or (2) otherwise establishes an exemption. All holders should consult their tax advisors
regarding the application of these regulations.
Backup Withholding and Information Reporting for Bearer Notes that Are Structured Notes
The treatment of Structured Notes for purposes of United States backup withholding tax and
information reporting requirements will generally depend on the particular terms of such Structured Note,
the characteristics of the person or entity making a payment and the payee, and the circumstances of
payment. Noteholders should consult their own tax advisors regarding the application of the backup
withholding tax and information reporting rules.
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