INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
Offering Circular or any applicable supplement and all the information contained in the
applicable Final Terms;
(b)
(c)
(d)
(e)
(f)
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of
its particular financial situation, an investment in the Notes and the impact the Notes will
have on its overall investment portfolio;
have sufficient financial resources and liquidity to bear all of the risks of an investment in the
Notes, including Notes with amounts payable in one or more currencies, or where the
Specified Currency of the Notes is different from the potential investor’s currency;
have knowledge of and access to appropriate analytical resources to analyze quantitatively
the effect (or value) of any redemption, cap, floor, or other features of the Notes, and the
resulting impact upon the value of the Notes;
understand thoroughly the terms of the Notes and be familiar with any relevant indices and
financial markets; and
be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate, and other factors that may affect its investment and its ability to bear
the applicable risks.
Some Notes are complex financial instruments. A potential investor should not invest in Notes
which are complex financial instruments unless it has the expertise (either alone or with a financial
adviser) to evaluate how such Notes will perform under changing conditions, the resulting effects on the
value of those Notes, and the impact this investment will have on the potential investor’s overall
investment portfolio.
In addition, an investment in Index Linked Notes, Share Linked Notes, GDR/ADR Linked Notes,
FX Linked Notes, Commodity Linked Notes, Fund Linked Notes, Inflation Linked Notes, Hybrid Notes,
or other Notes linked to other Underlying Asset(s) (“Underlying Asset Linked Notes”) may entail
significant risks not associated with investments in conventional securities such as debt or equity
securities, including, but not limited to, the risks set out in “Risks related to the structure of a particular
issue of Notes” set out below.
The Notes are unsecured obligations. The Notes constitute direct, unsubordinated, unconditional,
and unsecured obligations of the Issuer and rank equally among themselves and rank equally (subject to
exceptions as are from time to time provided by applicable laws) with all other present and future direct,
unsubordinated, unconditional, and unsecured indebtedness of the Issuer.
Since the Issuer is a holding company, the right of the Issuer, and hence the right of creditors of the
Issuer (including the Noteholders), to participate in any distribution of the assets of any subsidiary of the
Issuer upon its liquidation or reorganization or otherwise is necessarily subject to the prior claims of
creditors of the subsidiary, except to the extent that claims of the Issuer itself as a creditor of the subsidiary
may be recognized. In addition, dividends, loans and advances from certain subsidiaries to the Issuer are
restricted by net capital requirements under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and under the rules of certain exchanges and other regulatory bodies.
The Issuer may make certain modifications to the Notes without the consent of the Noteholders.
The Terms and Conditions provide that the Principal Agent and the Issuer may, without the consent of
Noteholders, agree to (i) any modification (subject to certain specific exceptions) of the Notes or the
Agency Agreement which is not prejudicial to the interests of the Noteholders or (ii) any modification of
the Notes or the Agency Agreement which is of a formal, minor or technical nature or is made to correct a
manifest error or proven error or to comply with mandatory provisions of law.
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