INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 13:20 – eprint6 – 4247 Section 10
Backup Withholding and Information Reporting for Registered Notes (including Registered Notes
that Are Structured Notes)
Payments of principal and interest, and the accrual of original issue discount, if any, with respect to
a Registered Note and proceeds from the sale of a Registered Note held by a United States Alien holder
will not be subject to information reporting and backup withholding so long as the Certification
Requirement is met and the Issuer does not have actual knowledge that the certification is false (or such
holder otherwise establishes an exemption).
Recently Enacted Legislation
United States Taxation
Legislation (Section 1471 of the Code) was enacted on March 18, 2010 that will, effective for
payments made after December 31, 2012, impose a 30 per cent. U.S. withholding tax on certain U.S.
source payments, including interest (and original issue discount), other fixed determinable annual or
periodical gain, profits, and income, and on the gross proceeds from the disposition of property of a type
which can produce U.S. source interest, if paid to a foreign financial institution, unless such institution
enters into an agreement with the Treasury to collect and provide to the Treasury substantial information
regarding U.S. account holders, including certain account holders that are foreign entities with U.S.
owners, with such institution. The legislation (Section 1472 of the Code) also generally imposes a
withholding tax of 30% on the above described payments and gross proceeds paid to a non-financial
foreign entity unless such entity provides the withholding agent with a certification that it does not have
any substantial U.S. owners or a certification identifying the direct and indirect substantial U.S. owners of
the entity. Under certain circumstances, a holder may be eligible for refunds or credits of such taxes. These
withholding and reporting requirements will generally apply to payments made after December 31, 2012,
and if the Issuer determines withholding is appropriate with respect to the Notes, the Issuer will withhold
tax at the applicable statutory rate; however, the withholding tax will generally not be imposed on
payments pursuant to obligations outstanding as of March 18, 2012. Noteholders are urged to consult with
their own tax advisors regarding the possible implications of this recently enacted legislation on their
investment in the Notes.
THE UNITED STATES FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE IS
INCLUDED FOR GENERAL INFORMATION ONLY AND MAY OR MAY NOT BE APPLICABLE
DEPENDING UPON A NOTEHOLDER’S PARTICULAR SITUATION. NOTEHOLDERS SHOULD
CONSULT THEIR OWN TAX ADVISERS WITH RESPECT TO THE TAX CONSEQUENCES TO
THEM OF THE OWNERSHIP AND DISPOSITION OF THE NOTES, INCLUDING THE TAX
CONSEQUENCES UNDER STATE, LOCAL, FOREIGN, AND OTHER TAX LAWS AND THE
POSSIBLE EFFECTS OF CHANGES IN FEDERAL OR OTHER TAX LAWS.
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