INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Legal and regulatory changes relating to the Commodities may lead to an early redemption.
Commodities are subject to legal and regulatory regimes that may change in ways that could affect the
ability of the Issuer and/or any entities acting on behalf of the Issuer engaged in any underlying or hedging
transactions in respect of the Issuer’s obligations in relation to the Notes to hedge the Issuer’s obligations
under the Notes, and/or could lead to the early redemption of the Notes.
Commodities are subject to legal and regulatory regimes in the United States and, in some cases, in
other countries that may change in ways that could negatively affect the value of the Notes. For example,
in July 2010, the U.S. Congress passed legislation intended to decrease speculation and increase
transparency in the commodities markets. Such legislation, among other things, requires the U.S.
Commodity Futures Trading Commission (“CFTC”) or exchanges to adopt rules establishing position
limits on positions in commodity futures contracts. Such legislation could have an unpredictable impact on
the value of any Commodity Linked Notes. In addition, if the commodities are traded on a non-U.S.
exchange, those foreign markets may be more susceptible to disruption than U.S. exchanges due to the
lack of a government-regulated clearinghouse system and may be subject to exchange controls,
expropriation, burdensome or confiscatory taxation, or moratoriums and political or diplomatic events.
Fund Linked Notes
Risk Factors
A fund may be subject to Fund Events which may adversely impact the value of Fund Linked
Notes. If certain events specified as Fund Events occur, the Calculation Agent may replace the fund by
other funds and thereafter the amount payable in respect of the Notes will depend on and be calculated by
reference to the performance of an alternate asset. This may have a considerable impact on the value of the
Fund Linked Notes and the amount payable in respect of the Fund Linked Notes. Alternatively, any
determination dates and payment dates may be changed by the Calculation Agent, or the amount paid per
Note may be based on the only cash amounts that an investor in the fund actually received, which might be
as low as zero.
Risk from composition and changes to a fund. The management company of a fund can, without
regard to the interests of the investors in the Fund Linked Notes, add, delete or substitute any funds by
reference to which the value of a fund is calculated or make other methodological changes that could
change the investment profile of a fund. The management company may also determine to discontinue a
fund. If a fund is discontinued, it may be replaced by other assets and/or the Fund Linked Notes may be
redeemed early.
In the event that a fund is materially modified or permanently cancelled or the management
company fails to calculate or announce the net asset value of a fund, the Calculation Agent will either
make such adjustments to any variable, calculation methodology, valuation, settlement, payment terms or
any other terms and conditions of the Fund Linked Notes as the Calculation Agent determines appropriate
to account for the effect on the Fund Linked Notes of such events, or may redeem the Fund Linked Notes
early. Any of these decisions or determinations may adversely impact the value of the Fund Linked Notes.
Funds may be subject to transfer restrictions and illiquidity. Funds and the assets thereof may be
subject to transfer restrictions arising by way of applicable securities laws or otherwise. Such restrictions
may mean that purchasers of the Fund Linked Notes are not entitled to acquire interests in the funds
directly. Holders of units or shares in a fund may have the right to transfer or withdraw their investment in
the funds only at certain times and upon completion of certain documentary formalities and such rights
may be subject to suspension or alteration. These circumstances may affect the net asset value of the funds
in question which in turn may adversely impact the value of the Fund Linked Notes.
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