INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
postponement of the relevant date or any alternative provisions for valuation provided in the Notes may
have an adverse effect on the value of the Notes or of any amounts payable under the Notes.
The occurrence of a Payment Disruption Event may lead to a delayed and/or reduced payment. If
Payment Disruption Event is applicable to a Note, as specified in the applicable Final Terms, then, in the
event that the Calculation Agent determines, in its sole discretion, that an event that (i) prevents, restricts,
or delays the Issuer from converting or delivering relevant currencies, (ii) imposes capital controls, or (iii)
implements changes to laws relating to foreign investments (a “Payment Disruption Event”) has occurred
or is likely to occur, then either (a) the relevant payment date in respect of the Notes or (b) the Issuer’s
obligation to make a payment in respect of such payment date may be postponed to a date falling five
Business Days (or such other date as may be determined by the Calculation Agent and notified to
Noteholders) after the date on which the Payment Disruption Event is no longer occurring. No accrued
interest will be payable in respect of any such postponement and no Event of Default in respect of the
Notes will result from such postponement. Partial payments or physical delivery of shares in lieu of cash
settlement of Share Linked Notes may, in the Issuer’s sole discretion, be made during such period (after
deduction for any expenses). In the event that a Payment Disruption Event is still continuing on the date
which is one year after the last date on which amounts are due under the Notes (the “Payment Event Cut-
Off Date”), then (1) such final payment date shall be extended to the Payment Event Cut-Off Date and (2)
the remaining amounts payable under the Notes shall be deemed to be zero and the Issuer shall have no
obligations whatsoever under the Notes. Therefore, in a case where Payment Disruption Event is relevant
as specified in the applicable Final Terms, the Noteholder could lose all or part of its investment in the
Notes.
In the event that the Issuer satisfies its obligation to make a cash payment by the delivery of shares
following the occurrence of a Payment Disruption Event, Noteholders may be unable to sell such shares,
or may be unable to sell them at a price equal to the cash payment that would have been payable but for
the occurrence of the Payment Disruption Event.
There may be conflicts of interest between the Issuer, its Affiliates and the Noteholders. The
Issuer and/or any of its Affiliates or agents may engage in activities that may result in conflicts of interest
between its and its Affiliates’ or agents’ financial interests on the one hand and the interests of the
Noteholders on the other hand. The Issuer and/or any of its Affiliates or agents may also engage in trading
activities (including hedging activities) related to the Underlying Asset(s) underlying any Notes and other
instruments or derivative products based on or related to the Underlying Asset(s) underlying any Notes for
their proprietary accounts or for other accounts under their management. The Issuer and/or any of its
Affiliates or agents may also issue other derivative instruments in respect of the Underlying Asset(s)
underlying any Notes. The Issuer and/or any of its Affiliates or agents may also act as underwriter in
connection with future offerings of shares or other securities related to an issue of Notes or may act as
financial adviser to certain companies whose shares are included in a basket of shares, or in a commercial
banking capacity for any such companies. Such activities could present certain conflicts of interest, could
influence the prices of such shares or other securities and could adversely affect the value of such
securities. The Issuer also may enter into arrangements with Affiliates or agents to hedge market risks
associated with its obligations under the securities. Any such Affiliate or agent would expect to make a
profit in connection with such arrangements. The Issuer would not seek competitive bids for such
arrangements from unaffiliated parties.
Where the Notes are offered to the public, as the Dealer(s) and any distributors act pursuant to a
mandate granted by the Issuer and they receive fees on the basis of the services performed and the
outcome of the placement of the Notes, potential conflicts of interest could arise.
Any additional risk factors relating to additional conflicts of interest with respect to a specific series
of Notes will be specified in the applicable Final Terms.
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