INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
full redemption proceeds owing to them if they redeemed their shares on the relevant date, an adjustment
may be made by the Calculation Agent when calculating the return on the Notes to the net asset value per
share of the relevant fund, thereby reducing the return on the Notes.
In the case of Fund Linked Notes linked to Exchange Traded Funds (“ETFs”), if the Calculation
Agent determines that an event giving rise to a Disrupted Day has occurred at any relevant time, any such
determination may have an effect on the timing of valuation and consequently the value of the Notes
and/or may delay settlement in respect of the Notes. Potential investors should review the relevant Terms
and Conditions and the applicable Final Terms to ascertain whether and how such provisions apply to the
Fund Linked Notes.
In the case of Fund Linked Notes linked to ETFs following the declaration by the ETF of the
occurrence of any Potential Adjustment Event, the Calculation Agent will, in its sole and absolute
discretion, determine whether such Potential Adjustment Event has a diluting or concentrative effect on the
theoretical relevant Fund Shares and, if so, will (i) make the corresponding adjustment, if any, to any of
the terms of the relevant Conditions and/or the applicable Final Terms as the Calculation Agent in its sole
and absolute discretion determines appropriate to account for that diluting or concentrative effect and (ii)
determine the effective date of that adjustment. Such adjustment may have an adverse effect on the value
and liquidity of the affected Fund Linked Notes.
In addition, in the case of Fund Linked Notes linked to ETFs, if a Merger Event, Tender Offer, De-
Listing, Material Underlying Event, Nationalization, or Insolvency occurs in relation to any Fund Share,
the Issuer in its sole and absolute discretion may take the action described in (i) or (ii) below:
(i)
(ii)
require the Calculation Agent to determine in its sole and absolute discretion the appropriate
adjustment, if any, to be made to any of the relevant Conditions and/or the applicable Final
Terms to account for the Merger Event, Tender Offer, De-Listing, Material Underlying Event,
Nationalization, or Insolvency and determine the effective date of that adjustment. Such
adjustment may have an adverse effect on the value and liquidity of the affected Fund Linked
Notes; and
redeem or cancel, as applicable, all of the Fund Linked Notes. Following such redemption or
cancellation an investor generally would not be able to reinvest the redemption proceeds at an
effective interest rate as high as the interest rate on the relevant Notes being redeemed or
cancelled 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 market price of Fund Linked Notes may be volatile and may depend on the time remaining to
the redemption date and the volatility of the price of fund share(s) or unit(s). The price of fund share(s) or
unit(s) may be affected by the economic, financial and political events in one or more jurisdictions,
including factors affecting the exchange(s) or quotation system(s) on which any units in the fund or funds
may be traded.
Inflation Linked Notes
The relevant consumer price index or other formula linked to a measure of inflation to which the
Notes are linked may be subject to significant fluctuations that may not correlate with other indices. Any
movement in the level of the index may result in a reduction of the interest payable on the Notes and, in
the case of Notes with a redemption amount linked to inflation, in a reduction of the amount payable on
redemption, which in some cases could be less than the amount originally invested.
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