INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
RISK FACTORS
The following section does not describe all of the risks and investment considerations (including
those relating to the prospective investor’s particular circumstances) with respect to an investment in the
Notes. Prospective investors should consult their own financial, legal, tax, and other professional advisors
as to the risks arising from an investment in an issue of Notes (in particular, to evaluate the sensitivity of
an investment to changes in economic conditions, interest rates, exchange rates, or other indices or factors
which may have a bearing on the merits and risk of an investment), and the suitability of the investment for
the investor. The Issuer believes that the factors described below and in the Issuer’s 2009 Form 10-K
Annual Report under the caption “Item 1A Risk Factors” represent the principal risks inherent in an
investment in the Notes.
The Issuer believes that the following factors may affect its ability to fulfill its obligations under the
Notes issued under the Program. In addition, factors which are material for the purpose of assessing the
market for Notes under the Program are also described below.
Risks relating to the Issuer’s business
As a large, international financial services company, the Issuer faces risks that are inherent in the
business and market places in which it operates. Factors that could affect the Issuer’s business and future
financial performance include the general business, economic, and political conditions in the United States
and in other countries, competition in the Issuer’s industry, credit risks, changes in applicable laws or
regulations, governmental fiscal and monetary policies and liquidity of global markets. These and other
factors or risks relating to the Issuer’s business are described in the Issuer’s 2009 Form 10-K Annual
Report, under the caption “Item 1A. Risk Factors”.
Risks relating to Notes generally
Investors risk losing all of their investment in the Notes
Potential investors should be aware that depending on the terms of the relevant Notes and in
the case of Notes linked to Underlying Asset(s), (i) they may receive no or a limited amount of
interest, (ii) payments may occur at a different time than expected, and (iii) except in the case of
Principal Protected Notes, they may lose all or a substantial portion of their investment if the value
of the Underlying Asset(s) does not move in the anticipated direction.
Investors in Principal Protected Notes may still be subject to loss of some or all of their
investment if the Issuer is subject to bankruptcy or insolvency proceedings or some other event
occurs which impairs the ability of the Issuer to meet its obligations under the Notes. An investor
may also lose some or all of its investment if it seeks to sell the relevant Notes prior to their
scheduled maturity, and the sale price of the Notes in the secondary market is less than the initial
investment or the relevant Notes are subject to certain adjustments in accordance with the terms
and conditions of such Notes that may result in the scheduled amount to be paid or asset(s) to be
delivered upon redemption being reduced to or being valued at an amount less than an investor’s
initial investment.
The Notes may not be a suitable investment for all investors. Each potential investor in the Notes
must determine the suitability of that investment in light of its own circumstances. In particular, each
potential investor should:
(a)
have sufficient knowledge and experience to evaluate the Notes, the merits and risks of
investing in the Notes, and the information contained or incorporated by reference in this
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