Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

The value of derivative Notes on the secondary market is subject to greater levels of risk
than is the value of other Notes. The secondary market, if any, for derivative Notes will be
affected by a number of factors, irrespective of the creditworthiness of the Issuer and the
value of the applicable currency, commodity, share, interest rate or other index, including
the volatility of the applicable currency, commodity, shares, interest rate or other index, the
time remaining to the maturity of such Notes, the amount outstanding of such Notes and
market interest rates. The value of the applicable currency, commodity, shares or interest
rate index depends on a number of interrelated factors, including economic, financial and
political events beyond the Issuer's control. Additionally, if the formula used to determine
the amount of principal, premium and/or interest payable with respect to derivative Notes
contains a multiplier or leverage factor, the effect of any change in the applicable currency,
commodity, shares, interest rate or other index will be increased. The historic experience of
the relevant currencies, commodities, shares or interest rate indices should not be taken as
an indication of future performance of such currencies, commodities, shares, interest rate or
other indices during the term of any derivative Note. Additionally, there may be regulatory
and other ramifications associated with the ownership by certain investors of certain derivative
Notes.
The credit ratings assigned to the Issuer are a reflection of the credit status of the Issuer, and
in no way a reflection of the potential impact of any of the factors discussed above, or any
other factors, on the market value of any derivative Note. Accordingly, prospective investors
should consult their own financial and legal advisors as to the risks entailed by an investment
in derivative Notes and the suitability of such Notes in light of the investor’s particular
circumstances.
Potential conflicts of interest
The Issuer, the Dealers or any of their respective affiliates may, on their own account or for
the account of managed assets or clients’ assets, be party to transactions regarding the Underlying.
Such transactions may not be for the benefit of the investors of the Notes and may
have positive or negative effects on the value of the Underlying and thus on the value of the
Notes.
Furthermore, the Issuer, the Dealers or any of their respective affiliates may have additional
roles such as calculation agent, paying agent and custodian and/or index sponsor or index
licensor in respect of the Underlying. The Issuer may also issue other derivative instruments
based on the Underlying. The issue and sale of such Notes competing with the Notes may
influence the value of such Notes.
Under certain circumstances, the Issuer may use the proceeds from the sale of Structured
Notes in whole or in part for hedging activities. The Issuer believes that such hedging activities,
under normal circumstances, have no material effect on the value of the Notes.
There is, however, the possibility that such hedging activities of the Issuer may affect the
value of such Notes.
The Issuer may receive unofficial information with regard to any Underlying of Notes. The
Issuer is, however, not obliged to publish such information.
In some cases, the Issuer, the Dealers or any of their respective affiliates may act as market
maker for the Underlying, in particular if the Issuer has issued the relevant Underlying. By
such market making, the Issuer will largely determine the price of the Underlying and thus
influence the value of the Structured Notes. The prices established by the Issuer in its capacity
as market maker may not always correspond to the prices which would have developed
in a liquid market without such market making.
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