INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
At meetings of Noteholders, the decision of the majority will bind all Noteholders. The Terms and
Conditions contain provisions for calling meetings of Noteholders to consider matters affecting their
interests generally. These provisions permit defined majorities to bind all Noteholders, including
Noteholders who did not attend and vote at the relevant meeting and Noteholders who voted in a manner
contrary to the majority.
The secondary market price of the Notes may be less than the Issue Price. Investors should note
that, in certain circumstances immediately following the issue of the Notes, the secondary market price of
the Notes may be less than the Issue Price in the event that the Issue Price included the fees to be paid to
distributor(s).
Failure by an investor to pay installments in respect of Partly Paid Notes may result in the
investor losing all of his investment. The Issuer may issue Notes where the Issue Price is payable in more
than one installment. Failure to pay the Issuer any subsequent installment could result in an investor losing
all of his investment.
Notes may be subject to optional redemption by the Issuer, which may limit their market value.
An optional redemption feature of Notes is likely to limit their market value. During any period when the
Issuer may elect to redeem Notes, the market value of those Notes generally will not rise substantially
above the price at which they can be redeemed. This also may be true prior to any redemption period.
The Issuer may be expected to redeem Notes when its cost of borrowing is lower than the interest
rate on the Notes. At those times, a Noteholder generally would not be able to reinvest the redemption
proceeds at an effective interest rate as high as the interest rate on the Notes being redeemed and may only
be able to do so at a significantly lower rate. Potential investors should consider reinvestment risk in light
of other investments available at that time.
The yield on the Notes may be less than the yield on a conventional debt security of comparable
maturity. Any yield that an investor may receive on the Notes, which could be negative, may be less than
the return an investor would earn if the investor purchased a conventional debt security with the same
maturity date. As a result, an investment in the Notes may not reflect the full opportunity cost to an
investor when factors that affect the time value of money are considered.
Movements in the level or price of an Underlying Asset will affect the performance of the Notes.
The level or price of the Underlying Asset may be subject to significant fluctuations that may not correlate
with changes in interest rates, currencies or indices and the timing of changes in the relevant level or price
of the Underlying Asset. This may affect the actual yield to investors, even if the average level or price of
the Underlying Asset during the life of the Notes is consistent with investors’ expectations. In general, the
earlier the change in the level or price of an Underlying Asset or result of a formula, the greater the effect
on the yield of the Notes.
Leverage will magnify the effect of changes in the Underlying Asset. If the formula used to
determine any amount payable and/or non-cash consideration deliverable contains a multiplier or leverage
factor, then the percentage change in the value of the Note will be greater than any positive and/or negative
performance of the Underlying Asset(s). Any Notes which include such multiplier or leverage factor
represent a very speculative and risky form of investment since any change in the value of the Underlying
Asset(s) carries the risk of a correspondingly higher change in the value of the Notes.
A postponement of valuation or determination due to a Market Disruption Event and Disrupted
Day may have an adverse effect on the value of the Notes. If the Notes include provisions dealing with
the occurrence of a Market Disruption Event or a failure of an exchange or related exchange to open on a
Valuation Date, an Averaging Date, or a Pricing Date and the Calculation Agent determines that a Market
Disruption Event or other such failure has occurred or exists on any relevant date, any consequential
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