Documentos de Académico
Documentos de Profesional
Documentos de Cultura
TRAVEL SYSTEM㨉
34.1.2.3 CONSTRUCTION
Shoe assy
34-6
㨇34. TRAVEL SYSTEM㨉
34-7
㨇34. TRAVEL SYSTEM㨉
34.1.3.2 REMOVING
(1) Preparation for removal
Remove crawler (Above mentioned).
(2) Removing upper roller (1)
1.
Remove nuts on support tightening
section, and also remove capscrew (2)
M16X90.
Tools: Socket: 24 mm
Removing upper roller (1)
34.1.3.3 INSTALLING
Installing is done in the reverse order of removing.
(1) Inspection
Before reassembling, check it that it
rotates smooth manually and for leak.
(2) Installing upper roller (1)
1.
Fit it directing nut toward idler side.
2.
Insert it until collar comes in contact with
support.
3.
Fit it directing the countersinking mark of
shaft end upward. Installing upper roller (1)
4.
Apply Loctite #262 on capscrew M16X90,
and tighten it to the specified torque.
Tools: Socket: 24 mm
Tightening torque: 279 N-m (210 lbf-ft)
34-8
㨇34. TRAVEL SYSTEM㨉
34.1.3.4 CONSTRUCTION
34-9
㨇34. TRAVEL SYSTEM㨉
Collar (3) is press fitted into shaft (2). Therefore do not disassemble it.
(2) Assembly
Assembly of the upper roller is done in the reverse order of disassembly.
34-10
㨇34. TRAVEL SYSTEM㨉
If you fail in this operation by pressing the bushing unevenly, the bushing is distorted and gets
unserviceable. In that case, do not re-use the bushing as it may develop malfunctioning after assembly.
34-11
㨇34. TRAVEL SYSTEM㨉
8. Filling oil
Fill in 20 cc (1.22 cuoin) of engine oil API
grade CD #30 through the plug hole in
cover (4).
9. Installing plug (10).
Place seal tape around plug (10) and
screw it into the plug hole of cover (4).
Tools: Allen wrench: 5mm
Tightening torque : 23 N-m (17 lbf-ft)
-After assembling the upper roller, confirm
that oil is not leaking from it and that it
rotates smoothly by hand.
Filling oil
34-12
㨇34. TRAVEL SYSTEM㨉
34-13
㨇34. TRAVEL SYSTEM㨉
34.1.4.2 REMOVAL
(1) Preparation for removal
1. Preparation for removal
Loosen grease nipple to slacken the link.
Put wood blocks on the front and rear
sides of under section of lower frame, and
stabilize the machine.
2. Removing lower roller
Remove capscrew (2) M14X55.
Tools: Socket: 22mm
Weight of lower roller : Approx.15 kg (33
Holding up the lower frame
lbs)
34.1.4.3 INSTALLATION
(1) Securing lower roller temporarily
Apply Loctite #262 on 4 capscrews (2)
and tighten them temporarily.
Tools: Socket: 22 mm
(2) Securing lower roller regularly.
Tighten capscrews (2) to the specified
torque.
(3) Adjusting tension of crawler.
Tighten grease nipple and fill it with grease.
Adjusting tension of crawler
34-14
㨇34. TRAVEL SYSTEM㨉
34.1.4.4 CONSTRUCTION
The shaft (2) extrusion operation may cause the remaining lube oil to flow out. Prepare an oil
container beforehand.
34-15
㨇34. TRAVEL SYSTEM㨉
Hammer the inside surface of roller lightly so as not to damage the surface. Put the extrusion jig (n)
uniformly over the circumference of bushing (3) and extrude it little by little.
(2) Installing
1. Attach O-ring (6) to one side
Install O-ring (6) to shaft groove.
-Apply grease to O-ring.
-Replace O-ring with new one.
Attach O-ring (6) to one side
34-16
㨇34. TRAVEL SYSTEM㨉
34-17
㨇34. TRAVEL SYSTEM㨉
After assembling the lower roller, confirm that oil is not leaking and that the roller rotates smoothly by
hand.
34-18
㨇34. TRAVEL SYSTEM㨉
34-19
㨇34. TRAVEL SYSTEM㨉
34-20
㨇34. TRAVEL SYSTEM㨉
34.1.5.2 REMOVING
(1) Preparation for removal
Remove crawler. (Above mentioned)
(2) Removing idler assy
Sling idler assy, and push it forward with
bar.
Weight of front idler assy (one side): 73
kg (160 lbs)
(3) Installing
Installing is done in the reverse order of
removing.
34-21
㨇34. TRAVEL SYSTEM㨉
Idler assy
34-22
㨇34. TRAVEL SYSTEM㨉
(2) Assembly
1. Pressing in bushing (4)
Align inner hole of idler (1) and bushing (4)
and press fit it vertically with press so that
jig (V) for bushing press-fitting is inserted
into bushing (4).
2. Installing O-ring (7)
Fit O-ring (7) to O-ring groove on shaft (2).
Pressing in bushing (4)
-Apply grease to O-ring
34-23
㨇34. TRAVEL SYSTEM㨉
-After installing the idler assy to the idler adjuster assy, make certain that no oil leaks from floating
seal and plug (8) and that idler (1) rotates smoothly.
Front idler
34-24
㨇34. TRAVEL SYSTEM㨉
34-25
㨇34. TRAVEL SYSTEM㨉
Large power is needed to set the spring. Prepare a special jig before disassembly and assembly.
34-26
㨇34. TRAVEL SYSTEM㨉
34-27
㨇34. TRAVEL SYSTEM㨉
34-28
㨇34. TRAVEL SYSTEM㨉
(2) Assembly
Assembly is done in the reverse order of disassembly.
34-29
㨇34. TRAVEL SYSTEM㨉
34-30
㨇34. TRAVEL SYSTEM㨉
34.1.6 SPROCKET
34.1.6.1 REMOVING
(1) Preparation for removal
Remove crawler referring to "34.1.2
CRAWLER", lift up crawler frame with
attachment, and put it on square timbers
to float and stabilize.
Removing sprocket
34.1.6.2 INSTALLING
(1) Check before installing
Check the mating portion of the travel
reduction unit and the sprocket, eliminate
burrs and contamination thoroughly and
install the sprocket.
(2) Installing sprocket temporarily
Coat the sprocket attaching capscrews
with Loctite #262 and fasten the sprocket
temporarily.
(3) Installing sprocket completely
Remove the wooden blocks under the
truck frame, bring the machine down on the Installing sprocket completely
ground and tighten the sprocket.
Tools: Socket: 22 mm
Tightening torque: 181 N-m (134 lbf-ft)
34-31
㨇34. TRAVEL SYSTEM㨉
Sprocket
34-32
㨇34. TRAVEL SYSTEM㨉
34-33
㨇34. TRAVEL SYSTEM㨉
34.1.7.2 REMOVING
(1) Preparation for removal
Remove crawler, lift up crawler frame
using attachment, and put it on square
timbers to float and stabilize.
(2) Removing cover (1)
Remove sems-bolt (2) and also remove
covers (1).
Tools: Socket: 19 mm
(3) Preparation of oil pan
34-34
㨇34. TRAVEL SYSTEM㨉
34-35
㨇34. TRAVEL SYSTEM㨉
34.1.7.3 INSTALLING
Installing of the travel motor piping is performed in the reverse order of removal.
1. Cleaning
Check that contact surface of travel motor and crawler frame is free from burr and stain.
2. Tightening torque
Tighten capscrew and hydraulic pipes to the torque specified in "Tightening Torque".
3. Fill inside from motor drain port to casing with hydraulic oil before piping for drain. When starting
operation, operate motor in low idling and at low speed for several minutes, and check it for
possible oil leakage and noise.
Tightening Torque
Parts Size Tools No. Remarks
N-m(lbf-ft)
Capscrew M14 22 (1-3) 181 (134) Apply loctite #262
M16 24 2 279 (210) Apply loctite #262
Flareless nut for ø10 X 1.5 19 - 49 (36)
pipes, sleeve ø15 X 2.0 27 - 118 (87)
ø18 X 2.5 32 - 147 (110)
Connector PF1/4 19 - 36.3 (27)
PF3/8 22 - 73.6 (54)
PF1/2 27 - 108 (80)
34-36
㨇34. TRAVEL SYSTEM㨉
34.1.8.2 REMOVING
(1) Matchmarks
Remove upper structure, apply matchmarks
on inner race of swing bearing and lower
frame.
(2) Remove 30 capscrews (2) M16 X 85 for
installation inner race.
Tools: Socket: 24 mm
Matchmarks
34-37
㨇34. TRAVEL SYSTEM㨉
34.1.8.3 INSTALLING
(1) Cleaning
Clean it completely so that installing
surfaces of swing bearing and lower frame
are free from dust and dirt.
(2) Installing
Install swing bearing on lower frame
meeting the matchmarks and positioning the
S mark on inner race as shown in the right
Fig..
(3) Temporary fastening of inner race
Coat the threads of the capscrews (2) with
Loctite #262 and tighten all the capscrews Location of S mark on swing bearing
(2) temporarily.
Tools: Socket: 24 mm
34.1.8.4 CONSTRUCTION
34-38
㨇34. TRAVEL SYSTEM㨉
(2) Installing
1. Thoroughly remove the grease from the
groove of the seal (8) located on the inner
surface of the outer race (2) and from the
groove of the seal (9) located on the
surface of the inner race (1).
Coat the grooves with adhesive Cyano
Bond P0-1 equivalent. fit seal (9) and place
it on a surface plate.
34-39
㨇34. TRAVEL SYSTEM㨉
To insert ball (3) and retainer (4), use a push rod, etc., to protect persons from injury from inserting
fingers into plug hole.
4. Fit plug (6) to outer race (2) while checking it for direction and position of taper pin hole.
5. Coat seal (8) with adhesive Cyano Bond P0-1 equivalent and fit it in the groove of outer race (2).
6. Check that grease nipple (10) is properly fitted, and fill it with grease. Then, check bearing for
smooth rotation and flaws on seal lip portion.
34-40
㨇34. TRAVEL SYSTEM㨉
HYDRAULIC CIRCUIT
34-41
㨇34. TRAVEL SYSTEM㨉
34-42
㨇34. TRAVEL SYSTEM㨉
34-43
㨇34. TRAVEL SYSTEM㨉
34-44
㨇34. TRAVEL SYSTEM㨉
34.2.1.2 JIGS
(1) Jig for floating seal fitting
34-45
㨇34. TRAVEL SYSTEM㨉
34.2.1.3 DISASSEMBLING
(1) Disassembling
1. Clean the outside surface of travel unit
prior to disassembly. Be sure to attach the
parts to the original positions.
For this purpose, we strongly recommend
to record the original positions of parts
before and during disassembling.
2. Remove the drain plug and drain lubricating
oil.
The travel unit oil capacity is 1.35L. Place
the travel unit on flat and clean ground.
Remove the relief valve (1) first, and the removal of 8 bolts (2) and the motor cover (3) becomes
easier.
34-46
㨇34. TRAVEL SYSTEM㨉
Raise the motor cover and insert 2 flat-blade screwdrivers in the space between the casing and the
body, and pry them slowly and the motor cover can be removed with relative ease.
(Do not damage the O-ring on the mating surface.)
The strong spring force is applied to the cover (8). Loosen bolts gradually with care to ensure safe
and prevent the cover from damaging when removing.
34-47
㨇34. TRAVEL SYSTEM㨉
34-48
㨇34. TRAVEL SYSTEM㨉
34-49
㨇34. TRAVEL SYSTEM㨉
Be sure to cover the brake piston to prevent being injured by springing out of the brake piston in
blowing air in.
34-50
㨇34. TRAVEL SYSTEM㨉
34-51
㨇34. TRAVEL SYSTEM㨉
34-52
㨇34. TRAVEL SYSTEM㨉
During disassembling the cylinder barrel, use a press machine and hold the spring in compressed state
to ensure the safety and to prevent the parts damage.
34-53
㨇34. TRAVEL SYSTEM㨉
34-54
㨇34. TRAVEL SYSTEM㨉
34-55
㨇34. TRAVEL SYSTEM㨉
34-56
㨇34. TRAVEL SYSTEM㨉
34-57
㨇34. TRAVEL SYSTEM㨉
34-58
㨇34. TRAVEL SYSTEM㨉
casing.
34-59
㨇34. TRAVEL SYSTEM㨉
34-60
㨇34. TRAVEL SYSTEM㨉
(2) Assembling
1. Be sure to check that all parts are clean and free from earth and dirt.
Check all O-ring, backup ring and oil seal fitted on travel unit for poor condition. When any
defect was found, replace it with new one.
Install the new floating seal.
Place the body casing on clean sheet spread on flat ground.
34-61
㨇34. TRAVEL SYSTEM㨉
Clean and dry O-ring (rubber) and seal ring (metal) before attaching the floating seal.
Apply SAE30 engine oil or gear oil 80W-90 to the contact surface of the seal ring.
34-62
㨇34. TRAVEL SYSTEM㨉
-Clean and dry O-ring (rubber) and seal ring (metal) before attaching the floating seal.
Apply SAE30 engine oil or gear oil 80W-90 to the contact surface of the seal ring.
-When joining 2 parts, use caution to prevent damage like scratch and so on to the floating seal.
With the ring gear placed on the body casing, there is a space left between them. This space is not a
problem because it is caused by the action of a floating seal. This space is eliminated by attaching
ring nut (68).
34-63
㨇34. TRAVEL SYSTEM㨉
When attaching the pin (67) to the ring nut (68), new hole must be drilled on the opposite side of
the original hole. Because the ring nut position is not always the same after adjustment performed by
the procedure 10).
34-64
㨇34. TRAVEL SYSTEM㨉
34-65
㨇34. TRAVEL SYSTEM㨉
34-66
㨇34. TRAVEL SYSTEM㨉
34-67
㨇34. TRAVEL SYSTEM㨉
34-68
㨇34. TRAVEL SYSTEM㨉
34-69
㨇34. TRAVEL SYSTEM㨉
34-70
㨇34. TRAVEL SYSTEM㨉
34-71
㨇34. TRAVEL SYSTEM㨉
34-72
㨇34. TRAVEL SYSTEM㨉
34-73
㨇34. TRAVEL SYSTEM㨉
Fill the case of motor with hydraulic oil to prevent damage of the motor before starting operation.
34-74
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-1
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
75SR-3 : YT08-30001~
(NA)
SK75SR-3 : YT07-25001~
(SE Asia & Oceania)
Preface
Troubleshooting provides process locating for
the cause of trouble in the order that trouble
occurred. This manual describes how to solve
the specific phenomenon systematically as
early as possible. For troubleshooting
concerning the inside of equipment, refer to
troubleshooting for each manual of equipment.
Attending the field to verify actual thing.
46-2
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-3
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Classify failures into the following 3 types and carry out the troubleshooting.
46-4
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
If the fuse of mechatro controller has blown, the following display appears on the gauge cluster.
46-5
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
When error code was displayed on the gauge cluster with the aid of self-diagnosis display function,
carry out the troubleshooting referring to applicable page in the contents of error codes.
46-6
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-7
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-8
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-1
Error code A015
Trouble Not yet adjusted engine or failed adjustment of engine (A adjustment)
Judging Engine adjustment is missed. Or it is impossible to set the adjusting value within the adjusting
condition range.
Symptom Deviated from the reqired value, but no problem in normal operations.
Control in the
Rotate with the default engine
event of failure
Returned in
The engine adjustment is completed normally.
normal condition
Table 46-2
Error code A025
Trouble Not yet adjusted engine or failed adjustment of pump proportional valve (B adjustment)
Judging Pump proportional valve adjustment is missed. Or it is impossible to set the adjusting value
condition within the adjusting range.
Symptom Deviated from the rated output, but no problem in normal operation
Control in the
Workable with the default proportional valve output.
event of failure
Returned in
The pump proportional valve adjustment is completed normally.
normal condition
46-9
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-3
Error code A215
Trouble The data of ROM adjustment is written incorrectly.
Judging Check adjustment data, and judge the content of memory is correct or not. (Trouble history
condition only)
Symptom No affect.
Control in the
Control at side of correct memory data.
event of failure
Returned in
It does not regain. Replace controller.
normal condition
Table 46-4
Error code A225
Trouble The data of ROM adjustment is written incorrectly.
Judging
Check adjustment data, and judge the data is correct or not.
condition
Symptom It is not normal output, but no problem in normal operation
Control in the
Control can be done by default value.
event of failure
Returned in
It does not regain. Replace controller.
normal condition
46-10
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-5
Error code A235
Trouble The data of ROM hourmeter is written incorrectly.
Judging
Check hourmeter memory, and judge the data is correct or not. (Trouble history only)
condition
Symptom No affect.
Control in the
Control at side of correct memory data.
event of failure
Returned in
It does not regain. Replace controller.
normal condition
Table 46-6
Error code A245
Trouble The data of ROM hourmeter is written incorrectly.
Judging
Check hourmeter memory, and judge the data is incorrect.
condition
Symptom The hour meter data which was judged as error is taken as 0 Hr. No problem in normal
operation
Control in the
Normal control is available.
event of failure
Returned in
It does not regain. Replace controller.
normal condition
Service Screen No.
diagnosis Screen No.
checking screen Screen No.
Checking object Checking contents and remedy
1 Mechatro controller Check that the error is corrected after replacement of controller.
2
3
46-11
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-7
Error code A255
Trouble The data of proportional valve adjustment is written incorrectly.
Judging
Check proportional valve adjustment data, and judge the data is incorrect.
condition
Symptom It is not normal output, but no problem in normal operation
Control in the
Using fixed value of proportional valve correction data, usual control is done.
event of failure
Returned in
It does not regain. Replace controller.
normal condition
Table 46-8
Error code B012
Trouble Boom up pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the sensor
condition after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom In case that auto acceleration is turned ON, even when control lever was shifted to neutral,
engine speed does not slow down.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-12
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-9
Error code B013
Trouble Boom up pressure sensor's wiring disconnects.
Judging
The input voltage from boom up pressure sensor is less than 0.1V.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted to neutral,
engine speed does not slow down.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-10
Error code B014
Trouble Boom up pressure sensor's power source is shortcut.
Judging
The input voltage from boom up pressure sensor is 4.7V or more.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted to neutral,
engine speed does not slow down.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-13
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-11
Error code B022
Trouble Boom down pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the sensor
condition after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom In case that auto acceleration is turned ON, even when control lever was shifted to neutral,
engine speed does not slow down.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
Table 46-12
Error code B023
Trouble Boom down pressure sensor's wiring is disconnecting.
Judging
The input voltage from boom down pressure sensor is 0.1V or less.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted, engine
speed dose not rise.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-14
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-13
Error code B024
Trouble Boom down pressure sensor's power source is shortcut.
Judging
The input voltage from boom down pressure sensor is 4.7V or more.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted, engine
speed dose not rise.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-14
Error code B032
Trouble Arm-out pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the sensor
condition after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom In case that auto acceleration is turned ON, even when control lever was shifted, engine
speed dose not rise.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-15
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-15
Error code B033
Trouble Arm-out pressure sensor's wiring is disconnecting.
Judging
The input voltage from arm-out pressure sensor is 0.1V or less.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted, engine
speed dose not rise.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-16
Error code B034
Trouble Arm-out pressure sensor's power source is shortcut.
Judging
The input voltage from arm-out pressure sensor is 4.7V or more.
condition
Symptom In case that auto acceleration is turned ON, even when control lever was shifted, engine
speed dose not rise.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-16
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-17
Error code B042
Trouble Arm-in pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the arm-in
condition pressure sensor after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom Swing parking brake cannot be released during arm-in.
Control in the
The arm-in pressure is controlled to 0 MPa.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
Table 46-18
Error code B043
Trouble Arm-in pressure sensor's wiring is disconnecting.
Judging
The input voltage from arm-in pressure sensor is 0.1V or less.
condition
Symptom Swing parking brake cannot be released during arm-in.
Control in the
The arm-in pressure is controlled to 0 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-17
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-19
Error code B044
Trouble Arm-in pressure sensor's power source is shortcut.
Judging
The input voltage from arm-in pressure sensor is 4.7V or more.
condition
Symptom Swing parking brake cannot be released during arm-in.
Control in the
The arm-in pressure is controlled to 0 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-20
Error code B072
Trouble Swing right pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the swing
condition pressure sensor after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the
diagnosis higher one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing right pressure sensor When B072 is cancelled and other error occurs by turning starter switch
SE-40 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing right When B072 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-315F Check wiring for possible failure according to the wiring checking
CN-103F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-18
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-21
Error code B073
Trouble Swing right pressure sensor's wiring is disconnected.
Judging
The input voltage from swing pressure sensor is 0.1V or less.
condition
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the higher
diagnosis one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing right pressure sensor When B073 is cancelled and other error occurs by turning starter switch
SE-40 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing right When B073 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-315F Check wiring for possible failure according to the wiring checking
CN-103F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-19
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-22
Error code B074
Trouble Swing pressure sensor's power source is shortcut.
Judging
The input voltage from swing pressure sensor is 4.7V or more.
condition
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the higher
diagnosis one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing right pressure sensor When B074 is cancelled and other error occurs by turning starter switch
SE-40 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing right When B074 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-315F Check wiring for possible failure according to the wiring checking
CN-103F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-20
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-23
Error code B082
Trouble Swing left pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the swing
condition left pressure sensor after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the higher
diagnosis one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing pressure sensor When B082 is cancelled and other error occurs by turning starter switch
SE-41 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing When B082 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-316F Check wiring for possible failure according to the wiring checking
CN-104F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-21
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-24
Error code B083
Trouble Swing left pressure sensor's wiring is disconnected.
Judging
The input voltage from swing left pressure sensor is 0.1V or less.
condition
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the higher
diagnosis one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing pressure sensor When B083 is cancelled and other error occurs by turning starter switch
SE-41 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing When B083 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-316F Check wiring for possible failure according to the wiring checking
CN-104F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-22
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-25
Error code B084
Trouble Swing left pressure sensor's power source is shortcut.
Judging
The input voltage from bucket dump pressure sensor is 4.7V or more.
condition
Symptom Swing parking brake does not work.
Control in the
Swing parking solenoid valve is changed to non-excitation.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
B-7 SWING
Service Screen No. 6 (Higher Pressure is selected between swing left and right, and the higher
diagnosis one is indicated.)
checking screen Screen No.
Screen No.
Checking object Checking contents and remedy
1 -Swing pressure sensor When B084 is cancelled and other error occurs by turning starter switch
SE-41 on after exchanging the connector with other sensor.
Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between swing When B084 is displayed after turning the starter switch on after the
pressure sensor and controller connector is exchanged with other sensor.
CN-316F Check wiring for possible failure according to the wiring checking
CN-104F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
Table 46-26
Error code B092
Trouble Travel right pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the travel
condition right pressure sensor after starter switch ON is in the range of 1.4V or more to less than
4.7V.
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-23
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-27
Error code B093
Trouble Travel right pressure sensor's wiring is disconnected.
Judging
The input voltage from Travel right pressure sensor is 0.1V or less.
condition
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-28
Error code B094
Trouble Travel right pressure sensor's power source is shortcut.
Judging
The input voltage from Travel right pressure sensor is 4.7V or more.
condition
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-24
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-29
Error code B102
Trouble Travel left pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the travel
condition left pressure sensor after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
Table 46-30
Error code B103
Trouble Travel left pressure sensor's wiring is disconnected.
Judging
The input voltage from Travel left pressure sensor is 0.1V or less.
condition
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-25
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-31
Error code B104
Trouble Travel left pressure sensor's power source is shortcut.
Judging
The input voltage from Travel left pressure sensor is 4.7V or more.
condition
Symptom Engine speed of high idling at H mode rises to 2150 rpm.
Control in the
During parking, the 2000 rpm limitation of engine speed is not done.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-32
Error code B172
Trouble P2 side option pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the P2 side
condition option pressure sensor after starter switch ON is in the range of 1.4V or more to less than
4.7V.
Symptom When the auto acceleration is ON, the engine speed does not decrease at the neutral lever
position.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-26
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-33
Error code B173
Trouble P2 side option pressure sensor's wiring is disconnected.
Judging
The input voltage from P2 side option pressure sensor is 0.1V or less.
condition
Symptom The selection of conflux does not work. All operation speed slows down.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-34
Error code B174
Trouble P2 side option pressure sensor's power source is shortcut.
Judging
The input voltage from P2 side option pressure sensor is 4.7V or more.
condition
Symptom The selection of conflux does not work. All operation speed slows down.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-27
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-35
Error code B222
Trouble Auto deceleration pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the sensor
condition after starter switch ON is in the range of 1.4V or more to less than 4.7V.
Symptom When the auto acceleration is ON, the engine speed does not decrease at the neutral lever
position.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
Table 46-36
Error code B223
Trouble Auto deceleration pressure sensor's wiring is disconnecting.
Judging
The input voltage from auto deceleration pressure sensor is 0.1V or less.
condition
Symptom When the auto acceleration is ON, the engine speed does not increase by the lever operation.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-28
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-37
Error code B224
Trouble Auto deceleration pressure sensor's power source is shortcut.
Judging
The input voltage from auto deceleration pressure sensor is 0.1V or more.
condition
Symptom When the auto acceleration is ON, the engine speed does not increase by the lever operation.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-38
Error code C012
Trouble P1 pump pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the P1
condition pump pressure sensor after starter switch ON is in the range of 1.4V or more to less than
4.7V.
Symptom The P1 pump operability becomes poor.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-29
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-39
Error code C013
Trouble P1 pump pressure sensor's wiring is disconnected.
Judging
The input voltage from P1 pump pressure sensor is 0.1V or less.
condition
Symptom All operation speed slows down.
Control in the
P1 pump pressure is controlled to 25 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-40
Error code C014
Trouble P1 pump pressure sensor's power source is shortcut.
Judging
The input voltage from P1 pump pressure sensor is 4.7V or more.
condition
Symptom All operation speed slows down.
Control in the
P1 pump pressure is controlled to 25 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-30
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-41
Error code C022
Trouble P2 pump pressure sensor outputs error.
Judging After starter switch ON and engine does not start yet. And the input voltage from the P2
condition pump pressure sensor after starter switch ON is in the range of 1.4V or more to less than
4.7V.
Symptom The P2 pump operability becomes poor.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
Table 46-42
Error code C023
Trouble P2 pump pressure sensor's wiring is disconnected.
Judging
The input voltage from P2 pump pressure sensor is 0.1V or less.
condition
Symptom All operation speed slows down.
Control in the
P2 pump pressure is controlled to 25 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-31
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-43
Error code C024
Trouble P2 pump pressure sensor's power source is shortcut.
Judging
The input voltage from P2 pump pressure sensor is 4.7V or more.
condition
Symptom All operation speed slows down.
Control in the
P2 pump pressure is controlled to 25 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-44
Error code C033
Trouble Boom head pressure sensor's wiring is disconnected.
Judging
The input voltage from boom head pressure sensor is 0.1V or less.
condition
Symptom Over load alarm function does not actuate.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-32
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-45
Error code C034
Trouble Boom head pressure sensor's power source is shortcut.
Judging
The input voltage from boom head pressure sensor is 4.7V or more.
condition
Symptom Over load alarm function does not actuate.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-46
Error code C043
Trouble Boom rod pressure sensor's wiring is disconnected.
Judging
The input voltage from boom rod pressure sensor is 0.1V or less.
condition
Symptom Indication load value of High-reach crane becomes abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-33
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-47
Error code C044
Trouble Boom rod pressure sensor's power source is shortcut.
Judging
The input voltage from boom rod pressure sensor is 4.7V or more.
condition
Symptom Indication load value of High-reach crane becomes abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-48
Error code C082
Trouble P3 pump pressure sensor outputs error
Judging After starter switch ON and engine does not start yet. And the input voltage from the P3
condition pump pressure sensor after starter switch ON is in the range of 1.4V or more to less than
4.7V.
Symptom The P1 pump operability becomes poor.
Control in the
Normal control
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-34
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-49
Error code C083
Trouble P3 pump pressure sensor's wiring is disconnected.
Judging
The input voltage from P3 pump pressure sensor is 0.1V or less.
condition
Symptom All operation speed slows down.
Control in the
P3 pump pressure is controlled to 20 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-50
Error code C084
Trouble P3 pump pressure sensor's power source is shortcut.
Judging
The input voltage from P3 pump pressure sensor is 4.7V or more.
condition
Symptom All operation speed slows down.
Control in the
P3 pump pressure is controlled to 20 MPa.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-35
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-51
Error code D012
Trouble P1 bypass cut proportional valve and output transistor ON are failure.
Judging
The feed-back value from proportional valve is 1000mA or more.
condition
Symptom Option conflux can not be done.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-52
Error code D013
Trouble P1 bypass cut proportional valve's wiring is disconnected.
Judging The feed-back value from proportional valve is 100mA or less.
condition (If output is 100mA or less, judging is not done.)
Symptom Option conflux can not be done.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-36
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-53
Error code D032
Trouble Travel straight proportional valve and output transistor ON are failure.
Judging
The feed-back value from proportional valve is 1000mA or more.
condition
Symptom Travel deviation occurs by combined operation of travel and attachment.
Control in the
Set Travel straight proportional valve output to 0mA.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-54
Error code D033
Trouble Travel straight proportional valve's wiring is disconnected.
Judging The feed-back value from proportional valve is 100mA or less.
condition (If output is 100mA or less, judging is not done.)
Symptom Travel deviation occurs by combined operation of travel and attachment.
Control in the
Set Travel straight proportional valve output to 0mA.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-37
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-55
Error code D062
Trouble Arm-in spool 2 proportional valve and output transistor ON are failure.
Judging condition The feed-back value from proportional valve is 1000mA or more.
Symptom Operability of combined operation with arm-in becomes poor.
Control in the
Set Arm-in spool 2 proportional valve output to 0mA.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Screen No. 8 D-6 ARM IN-2-SPEED
Service diagnosis
Screen No.
checking screen
Screen No.
Checking object Checking contents and remedy
1 -Arm-in spool 2 proportional When D062 is cancelled and other error occurs by turning starter switch
valve on after exchanging the connector with other sensor.
PSV-20 Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between Arm-in spool 2 When D062 is displayed after turning the starter switch on after the
proportional valve and controller connector is exchanged with other sensor.
CN-440F Check wiring for possible failure according to the wiring checking
CN-105F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
Table 46-56
Error code D063
Trouble Arm-in spool 2 proportional valve's wiring is disconnected.
Judging condition The feed-back value from proportional valve is 100mA or less.
(If output is 100mA or less, judging is not done.)
Symptom Operability of combined operation with arm-in becomes poor.
Control in the
Set Arm-in spool 2 proportional valve output to 0mA.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Screen No. 8 D-6 ARM IN-2-SPEED
Service diagnosis
Screen No.
checking screen
Screen No.
Checking object Checking contents and remedy
1 -Arm-in spool 2 proportional When D063 is cancelled and other error occurs by turning starter switch
valve on after exchanging the connector with other sensor.
PSV-20 Check sensor unit for possible failure. If failure found, replace it.
2 -Wiring between Arm-in spool 2 When D063 is displayed after turning the starter switch on after the
proportional valve and controller connector is exchanged with other sensor.
CN-440F Check wiring for possible failure according to the wiring checking
CN-105F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-38
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-57
Error code E012
Trouble P1 pump proportional valve and output transistor ON are failure.
Judging
The feed-back value from proportional valve is 1000mA or more.
condition
Symptom All operation speed slows down.
Control in the Set proportional valve output rate of P1 pumps to 0mA.
event of failure (Hydraulic pump emergency mode)
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-39
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-58
Error code E013
Trouble P1 pump proportional valve's wiring is disconnected.
Judging The feed-back value from proportional valve is 100mA or less.
condition (If output is 100mA or less, judging is not done.)
Symptom All operation speed slows down.
Control in the
Set proportional valve output rate of P1 pumps to 0mA.
event of failure
Returned in Not returned automatically under normal condition. Switch the power OFF once and turns on
normal condition it again.
46-40
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-59
Error code F021
Trouble Swing parking solenoid valve and output transistor OFF are failure, and grounding is
short-circuit.
Judging
The feed-back signal is grounding level while exciting command is output.
condition
Symptom Swing parking is not available.
Control in the
Normal control
event of failure
Returned in
The feed-back signal is 24V level while exciting command is output.
normal condition
Table 46-60
Error code F023
Trouble Swing parking solenoid valve and output transistor ON are failure, and disconnection.
Judging
The feed-back signal is 24V level while exciting command is not output.
condition
Symptom Swing parking is not available or is leaving available.
Control in the
Normal control
event of failure
Returned in
The feed-back signal is grounding level while exciting command is output.
normal condition
46-41
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-61
Error code F031
Trouble Travel 1, 2 speed solenoid valve and output transistor OFF are failure, and grounding is
short-circuit.
Judging condition The feed-back signal is grounding level while exciting command is output.
Symptom Travel 2 speed is not obtainable.
Control in the
Normal control
event of failure
Returned in
The feed-back signal is 24V level while exciting command is output.
normal condition
Screen No. 3 F-3 1/2-TRAVEL
Service diagnosis
Screen No.
checking screen
Screen No.
Checking object Checking contents and remedy
1 -Travel 1, 2speed solenoid valve When F031 is cancelled and other error occurs by exchanging the
SV-3 connector for other solenoid valve.
Check solenoid valve unit for possible failure. If failure found, replace it.
2 -Wiring between travel 1, 2speed When F031 is displayed after the connector is exchanged with other
solenoid valve and controller solenoid valve.
CN-122F Check wiring for possible failure according to the wiring checking
CN-105F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
Table 46-62
Error code F033
Trouble Travel 1, 2 speed solenoid valve and output transistor ON are failure, and disconnection.
Judging condition The feed-back signal is 24V level while exciting command is not output.
Symptom Travel 2 speed is not obtainable or is keeping 1 speed.
Control in the
Normal control
event of failure
Returned in
The feed-back signal is grounding level while exciting command is not output.
normal condition
Screen No. 3 F-3 1/2-TRAVEL
Service diagnosis
Screen No.
checking screen
Screen No.
Checking object Checking contents and remedy
1 -Travel 1, 2speed solenoid valve When F033 is cancelled and other error occurs by exchanging the
SV-3 connector for other solenoid valve.
Check solenoid valve unit for possible failure. If failure found, replace it.
2 -Wiring between travel 1, 2speed When F033 is displayed after the connector is exchanged with other
solenoid valve and controller solenoid valve.
CN-122F Check wiring for possible failure according to the wiring checking
CN-105F procedure and repair it if necessary.
3 -Mechatro controller Check that the error is corrected after replacement of controller.
46-42
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-63
Error code G032
Trouble Mechatro controller direct input speed sensor is overrun.
Judging
Engine rpm input is 3000rpm or more. (Only trouble history)
condition
Symptom Operate without problem.
Control in the
Engine speed slows down to 0 rpm.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-64
Error code G033
Trouble Mechatro controller direct input speed sensor, Disconnection
Judging
Voltage of alternator is 12V or more, and speed sensor indicates excess low engine rpm.
condition
Symptom Operate without problem.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-43
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-65
Error code H013
Trouble Accel potentiometer is disconnected.
Judging
The input voltage from accel potentiometer is 0.1V or less.
condition
Symptom LOW idling is fixed.
Control in the
LOW idling is fixed.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-66
Error code H014
Trouble Accel potentiometer's power source is shortcut.
Judging
The input voltage from accel potentiometer is 4.7V or more.
condition
Symptom LOW idling is fixed.
Control in the
LOW idling is fixed.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-44
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-67
Error code H023
Trouble Boom angle potentiometer's wiring is disconnected.
Judging
The input voltage from boom angle potentiometer is 0.1V or less.
condition
Symptom Indications of rating load and working radius of High-reach crane become abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-68
Error code H024
Trouble Boom angle potentiometer's power source is shortcut.
Judging
The input voltage from boom angle potentiometer is 0.1V or less.
condition
Symptom Indications of rating load and working radius of High-reach crane become abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-45
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-69
Error code H033
Trouble Arm angle potentiometer's wiring is disconnected.
Judging
The input voltage from arm angle potentiometer is 0.1V or less.
condition
Symptom Indications of rating load and working radius of High-reach crane become abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-70
Error code H034
Trouble Arm angle potentiometer's power source is shortcut.
Judging
The input voltage from arm angle potentiometer is 0.1V or less.
condition
Symptom Indications of rating load and working radius of High-reach crane become abnormal.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-46
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-71
Error code H081
Trouble Grounding of coolant temperature sensor is short-circuited.
Judging
The input voltage from coolant temperature sensor is 0.1V or less.
condition
Symptom The water temperature is fixed to 20 degrees C.
Control in the
Normal control
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Service Screen No. 2 G-5 The lower side of water temperature meter on gauge cluster is fixed.
diagnosis Screen No.
checking screen Screen No.
Checking object Checking contents and remedy
1 -Coolant temperature sensor Measure the resistance between terminals.
SE-14 20 degrees C 10 ohms to 878 ohms
2 -Wiring between coolant Check wiring for possible failure according to the wiring checking
temperature sensor and procedure and repair it if necessary.
controller
F-14
CN-104
3 -Mechatro controller Check that the error is corrected after replacement of controller.
Table 46-72
Error code H091
Trouble Fuel sensor grounding is short-circuited.
Judging
The input voltage from fuel sensor is 0.1V or less.
condition
Symptom Warning for low fuel level is indicated.
Control in the
Fuel level becomes 0%.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-47
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-73
Error code H093
Trouble Fuel sensor's wiring is disconnection.
Judging
The input voltage from fuel sensor is 4.7V or more.
condition
Symptom Warning for low fuel level is indicated.
Control in the
Fuel level becomes 0%.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
Table 46-74
Error code I313
Trouble Reception of cluster communication is abnormal. (Time-out error)
Judging
Reception from gauge cluster can not receive correctly.
condition
Symptom Switch operation of gauge cluster can not be done.
Control in the
Keep the condition after immediately key-on is operated.
event of failure
Returned in
It returns automatically in normal condition.
normal condition
46-48
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-75
Error code K014
Trouble Battery relay contact welded
Judging The power 24V is continuously supplied to controller for 40 seconds or more while the key
condition switch ON signal turned OFF
Symptom The power on the battery relay secondary side does not turn OFF even if the key switch is
turned OFF.
Control in the
Normal control with key switch OFF
event of failure
Returned in Turn key switch ON.
normal condition Or when the power supply 24V to mechatro controller is stopped
46-49
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-50
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-51
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-52
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-53
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
46-54
㨇46. TROUBLE SHOOTING (BY ERROR CODES)㨉
Table 46-86
Error code Z020
Trouble Fuel type identification error.
Judging Identification value from the fuel type identification sensor equals to the value of kerosene or
condition less for 10th consecutive time.
Symptom Without proper procedures, the engine fails.
Control in the
Control the engine as usual.
event of failure
Returned in When the value from the fuel type identification sensor equals to the value of diesel oil, it
normal condition automatically returns to normal condition.
Service Screen No. Result of fuel type identification can be checked from Merit.
diagnosis Screen No.
checking screen Screen No.
Checking object Checking contents and remedy
1 -Fuel Check the sub tank which has the fuel type identification sensor and if
water accumulation is found, drain the water.
2 -Fuel Replace the fuel to the specified fuel(diesel oil).
3 -Fuel type identification sensor Replace the fuel type identification sensor and check if the error
condition is changed to normal condition.
46-55
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47. TROUBLESHOOTING
(BY TROUBLE)
TABLE OF CONTENTS
47-1
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
75SR-3 : YT08-30001~
(NA)
SK75SR-3 : YT07-25001~
(SE Asia & Oceania)
47-2
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
Preface:
The troubleshooting for the failures shown below is explained here.
Identify the failure and trouble and carry forward the troubleshooting in order of the failure item number.
47-3
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-4
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(4) Poor fine operability
No. Sections Contents/normal value Corrective action, others
1 Main spool Check targeted Free from abnormal damage and Replace
spool visually spring breakage
2 Slow return check Visual check Check that slow return valve
valve of pilot line installed on pilot line is free from
dust entered.
47-5
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(5) When auto deceleration function is ON and lever is in neutral, engine rpm dose not
decrease. When the lever is operated, engine rpm dose not increase.
No. Sections Contents/normal value Corrective action, others
1 Pilot pressure Carry out Service At full lever position : Replace the targeted
sensor Diagnosis to ATT and Swing operations are to pilot pressure sensor
check the targeted be 3.0 MPa, and other operations
pilot secondary are to be 2.1 MPa or more.
pressure.
47-6
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-7
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-8
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-9
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-10
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-11
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-12
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-13
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-14
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-15
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(16) Swing drifts on a slope while swing control lever is in neutral position
No. Sections Contents/normal value Corrective action, others
1 Swing pressure Carry out service -Engine stop & starter key ON Check and replace
sensor diagnosis All pilot low pressure sensors are pressure sensor
within range of 0 to 0.1MPa.
2 Remote control Check targeted Check that spool is free from Replace
valve remote control abnormal damage and Spring is
valve free from breakage.
3 Swing parking Carry out service No.3 F-2 SWING-BRAKE Check swing pressure
brake solenoid diagnosis Lever neutral: COMP ON, MEAS sensor
ON Check harness
Swing: COMP OFF, MEAS OFF Check parking brake
release switch
Measurement of Lever neutral: 0MPa Replace solenoid valve
solenoid valve A2 In operation: 3MPa or more
port
4 Swing motor Visual check Disassemble and inspect abnormal Replace
(Brake valve/friction wear and scuffing
plate)
5 Parking brake Visual check Piston and friction plate do not Replace
have abnormal resistance against
sliding
Free from spring damage
47-16
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-17
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-18
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-19
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-20
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(22) Machine does not travel straight in simultaneous operation of traveling and attachment
No. Sections Contents/normal value Corrective action, others
1 Actual measuring Carry out service No.8 D-3 S-TRAVEL is should be -Check voltage of low
current value of diagnosis COMP 730mA and MEAS 700 to pressure sensor other
travel straight 760mA in both travel full lever than travel sensor-In
proportional valve and in boom up full lever at high case where the reading is
idling largely differed from the
actually measured value,
check proportional valve
and controller for possible
failure.
2 Secondary pressure Measure directly Check secondary pressure is within Replace proportional valve
of travel straight the proportional range of 1.8 to 2.2MPa in both
proportional valve valve secondary travel full lever and in boom up full
pressure lever at high idling
3 Travel straight spool Visual check When removing, free from Replace
abnormal resistance against sliding (Check on the casing side
Free from abnormal damage, etc for damage)
on outside surface
Spring is free from breakage.
47-21
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-22
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-23
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(1)
Checking for disconnection between connectors.
(When both ends measurement is easy because
of short distance between connectors,)
Measure the resistance using tester.
Pull out opposite connector first.
When the resistance is zero (0), it is in normal
condition.
(2)
Checking for presence or absence of
short-circuit with machine body
Measure the resistance using tester.
Pull out opposite connector first.
When the resistance is 1M-ohm or more, it is
in normal condition.
(3)
Checking for presence or absence of
short-circuit between wirings.
Measure the resistance using tester.
Pull out opposite connector first.
When the resistance is 1M-ohm or more, it is
in normal condition.
47-24
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(4)
Checking connector terminal for contact
Insert male terminal into female terminal unit,
and then check that the inserting force is
equivalent to other female terminals.
If looseness is there, replace the female
terminal with new one.
Clean the dirt terminal.
Do not insert the male terminal the thickness differs. It may cause loose connection.
(5)
Caution which should be paid in measuring voltage
When measuring the power supply to electric equipment at connector position with the grounding
terminal contained inside of connector, measure the voltage between grounding inside of connector and
power terminal.
When measuring the voltage between frame body grounding and power source, the disconnection of
wiring to grounding inside of connector cannot be identified.
Since the voltage may vary between with connector connected and with connector not connected.
Measure the voltage with each connector connected whenever possible.
(6)
Checking the general view of connector
47-25
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(7)
When abnormality occurs at intervals
When the abnormality situation can not be reoccurred during checking operation, try the following
operations.
a. Check that variable of display exists or not on the service diagnosis screen while shaking the
harness or giving shock by operating the machine.
b. Check that variables of resistance and voltage exist or not using tester while shaking the harness.
c. Turn starter switch on and apply electricity continuously, and check it again after the temperature
of wiring and equipment was raised.
(8)
Checking on body grounding
Check attaching bolts of grounding terminal for
loosening.
And also check that there is no loose
connection due to corrosion.
47-26
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47.2.2 TROUBLE
(1) Engine does not stop.
(2) "CPU DATA COMMUNICATION ERROR" is displayed on multi display.
(3) Auto accel does not actuate. (The engine speed does not automatically slow down.)
(4) Auto accel does not actuate. (The engine speed does not automatically speed up.)
(5) Wiper does not function.
47-27
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(3) Auto accel does not actuate. (The engine speed does not automatically slow down).
No. Sections Contents/normal value Corrective action, others
1 Gauge cluster Indication of auto Mark "Display/not display" for auto Replace gauge cluster
accel accel switches by auto accel switch
operation on gauge cluster.
2 Low pressure Service diagnosis Each control pressure of No.5, Check low pressure sensor
sensor No,6 is in the range of 0~0.1MPa
at control lever neutral position.
47-28
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
(4) Auto accel does not actuate. (The engine speed does not automatically speed up.)
No. Sections Contents/normal value Corrective action, others
1 Low pressure Service diagnosis Each control pressure of No.5, Check low pressure sensor
sensor No.6, No.16 is raised with control
lever operated.
47-29
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-30
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-31
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-32
㨇47. TROUBLESHOOTING (BY TROUBLE)㨉
47-33
㨇51. ENGINE㨉
51. ENGINE
PREFACE
This service manual explains the single engine. Note that this manual is edited without modification by
based on the service manual of ISUZU MOTORS, Ltd.
51-1
㨇51. ENGINE㨉
SK85CS-3E : LF08-05501~
(NA)
SK85CS-3E : LF08-05501~
(EUR)
S5YT5117E02
Revision November, 2013 E75CSR : YT08-30001~
(NHK-EUR)
75SR-3 : YT08-30001~
(NA)
SK75SR-3E : YT08-30001~
(NA)
SK85CS-3E : LF08-05501~
(NA)
SK75SR-3E : YT08-30001~
(EUR)
51-2
4LE2
TIER 4/STAGE Ⅲ B
EXHAUST EMISSION STANDARDS
WORKSHOP MANUAL
ENGINE
FOREWORD
This manual describes the service procedures for the 4LE2 diesel engine (Tier 4/Stage Ⅲ B compatible).
The contents of this manual are current at the date of issue, but may differ slightly from your engine due to specification changes
or other modifications made thereafter.
,QWURGXFWLRQ
,QWURGXFWLRQ
$OO
7DEOHRI&RQWHQWV
,QWURGXFWLRQ
VDIHW\LQIRUPDWLRQ
,QWURGXFWLRQ$OO
,QWURGXFWLRQ
VDIHW\LQIRUPDWLRQ ࣭ 3UHSDUHWKHWRROVLQVWUXPHQWVDQGVSHFLDO
WRROVLQDGYDQFH
5HSDLUZRUNVDIHW\LQIRUPDWLRQ
࣭ 3UHSDUHWKHSDUWVWKDWUHTXLUHUHSODFHPHQWDQG
:DUQLQJ㸸 SDUWVWKDWFDQQRWEHUHXVHGLQDGYDQFH
࣭ :RUNVKRSPDQXDOVDUHFUHDWHGIRUTXDOLILHG ࣭ 'LVFRQQHFWWKHQHJDWLYHWHUPLQDORIWKHEDWWHU\
VHUYLFHWHFKQLFLDQVZKRKDYHVSHFLDOL]HG FDEOHLQDGYDQFH
WUDLQLQJ,IPDLQWHQDQFHLVSHUIRUPHGE\D ࣭ $OZD\VIRFXVRQVDIHW\
SHUVRQZLWKRXWWKHQHFHVVDU\TXDOLILFDWLRQVRU
࣭ :KHQDSURFHGXUHLVSHUIRUPHGE\WZRRU
ZKRKDVQRWUHFHLYHGWKHDSSURSULDWHWUDLQLQJ
PRUHSHRSOHPDNHVXUHWRHQVXUHHDFK
GDPDJHPD\EHFDXVHGWRWKHPDFKLQHRU
RWKHU
VVDIHW\EHIRUHSHUIRUPLQJDQDFWLRQ
KDUPPD\FRPHWRWKHVHUYLFHWHFKQLFLDQDQG
SHRSOHLQWKHYLFLQLW\ ࣭ 'RQRWOHDYHWKHHQJLQHUXQQLQJIRUDQ
H[WHQGHGSHULRGRIWLPHRUSHUIRUPSDLQWLQJLQ
࣭ ,IPDLQWHQDQFHLVSHUIRUPHGZLWKRXWXVLQJWKH
DSRRUO\YHQWLODWHGZRUNLQJHQYLURQPHQW
DSSURSULDWHWRROVDQGGHYLFHVGDPDJHPD\EH
FDXVHGWRWKHPDFKLQHRUKDUPPD\FRPHWR ࣭ 0DNHVXUHWRXVHWKHVSHFLDOWRROVLIWKH
WKHVHUYLFHWHFKQLFLDQDQGSHRSOHLQWKH SURFHGXUHUHTXLUHVWKHPIRUWKHZRUN
YLFLQLW\ ࣭ 'RQRWXVHWRROVVXFKDVDQRSHQHQGZUHQFK
࣭ ,IPDLQWHQDQFHLVSHUIRUPHGXVLQJSURFHGXUHV WKDWKDVORVWLWVHGJHVDKDPPHUZLWKIUD\HG
RWKHUWKDQWKRVHLQGLFDWHGLQWKHZRUNVKRS HGJHVRUDFKLSSHGFKLVHO
PDQXDOGDPDJHPD\EHFDXVHGWRWKH ࣭ :KHQSHUIRUPLQJZRUNXVLQJDGHYLFHVXFKDV
PDFKLQHRUKDUPPD\FRPHWRWKHVHUYLFH DJULQGHUFUDQHRUZHOGHUPDNHVXUHWKDWD
WHFKQLFLDQDQGSHRSOHLQWKHYLFLQLW\ TXDOLILHGWHFKQLFLDQSHUIRUPVWKHSURFHGXUH
ZKLOHSD\LQJVXIILFLHQWDWWHQWLRQWRWKHKDQGOLQJ
&DXWLRQ㸸
SUHFDXWLRQV
࣭ :KHQUHSODFLQJSDUWVPDNHVXUHWRXVHRQO\
࣭ :KHQSHUIRUPLQJPDLQWHQDQFHRQWKHIXHO
JHQXLQHSDUWVEHFDXVHWKHDSSURSULDWH
V\VWHPYHULI\WKDWWKHUHLVQRIXHOOHDNDJH
PDLQWHQDQFHDQGUHSDLUSURFHGXUHVDUH
HVVHQWLDOWRPDLQWDLQWKHVDIHW\RIWKHVHUYLFH ࣭ :KHQKDQGOLQJYRODWLOHPDWHULDOVWDNHFDUH
WHFKQLFLDQDQGWKHVDIHW\DQGUHOLDELOLW\RIWKH WKDWWKH\GRQRWFDWFKILUH
PDFKLQH ࣭ 0DNHVXUHWRZLSHDZD\DQ\RLODGKHULQJWR
࣭ 0DNHVXUHWRUHDGWKHZRUNVKRSPDQXDO UXEEHUSDUWVDVLWFDQFDXVHGHWHULRUDWLRQ
WKRURXJKO\EHIRUHVWDUWLQJWKHZRUNEHFDXVHLW ࣭ $UUDQJHUHPRYHGSDUWVLQWKHFRUUHFWRUGHU
FRQWDLQVSURFHGXUHVDQGLQIRUPDWLRQWKDWPXVW DQGHQVXUHWKH\GRQRWJHWPL[HGXSZLWKSDUWV
EHIROORZHGZKHQSHUIRUPLQJPDLQWHQDQFHDQG WKDWFDQQRWEHUHXVHG
UHSDLUV ࣭ 3HUIRUPVXIILFLHQWFOHDQLQJDQGZDVKLQJZKHQ
࣭ :KHQSHUIRUPLQJPDLQWHQDQFHDQGUHSDLUV SHUIRUPLQJDVVHPEO\LQVWDOODWLRQ
FRUUHFWO\XVHWKHVSHFLDOWRROVVSHFLDOO\ ࣭ 6XIILFLHQWO\UHPRYHJUHDVHIRUDUHDVZKHUH
GHVLJQHGIRUHDFKSXUSRVH OLTXLGJDVNHWHWFZLOOEHDSSOLHG
࣭ ,QRUGHUWRHQVXUHWKHVDIHW\RIWKHVHUYLFH ࣭ $IWHUFRPSOHWLQJWKHSURFHGXUHSHUIRUPDILQDO
WHFKQLFLDQDQGWKHVDIHW\DQGUHOLDELOLW\RIWKH FKHFNWRYHULI\WKDWWKHSUREOHPKDVEHHQ
PDFKLQHQHYHUSHUIRUPSURFHGXUHVRUXVH VROYHG
WRROVRWKHUWKDQWKRVHUHFRPPHQGHGLQWKH
࣭ 9HULI\WKDWWKHUHLVQRIXHORLORUHQJLQH
ZRUNVKRSPDQXDO
FRRODQWOHDNDJH
࣭ 7RHQVXUHDFFLGHQWVGRQRWRFFXUGXULQJWKH
࣭ 'LVFRQQHFWWKHEDWWHU\FDEOHEHIRUHSHUIRUPLQJ
PDLQWHQDQFHDQGUHSDLUSURFHGXUHVWRSUHYHQW
ZHOGLQJZRUN
GDPDJHWRWKHPDFKLQHGXHWRLQDSSURSULDWH
SURFHGXUHVDQGWRHQVXUHWKHVDIHW\DQG ࣭ 'LVFRQQHFWDOOFRQWUROFDEOHVEHIRUH
UHOLDELOLW\RIWKHPDFKLQHWKHZRUNVKRS SHUIRUPLQJZHOGLQJZRUN
PDQXDOVLQGLFDWHLQIRUPDWLRQWKDWPXVWEH ࣭ 7XUQ2))DOOVZLWFKHVEHIRUHSHUIRUPLQJ
IROORZHGSDUWLFXODUO\XVLQJWKHWHUPV ZHOGLQJZRUN
:DUQLQJ&DXWLRQDQG1RWH7KHUHIRUH
PDNHVXUHWRUHDGWKHZRUNVKRSPDQXDOV
WKRURXJKO\EHIRUHVWDUWLQJWKHZRUN
,QWURGXFWLRQ$OO
࣭ 0DNHVXUHWKHJURXQGFRQQHFWLRQIRUWKH ࣭ :KHQGLVFRQQHFWLQJWKHZDWHUSURRIFRQQHFWRU
ZHOGLQJPDFKLQHLVDVFORVHWRWKHZHOGLQJ UHPRYHGXVWRUPRLVWXUHDGKHULQJWRWKH
DUHDDVSRVVLEOH FRQQHFWRUE\EORZLQJLWZLWKDLUHWF
,IGXVWRUPRLVWXUHHQWHUVWKHFRQQHFWRU
5HSODFHPHQWSDUWVDQGSDUWVQXPEHUVDIHW\
UHPRYHLWEHIRUHFRQQHFWLQJWKHFRQQHFWRU$V
LQIRUPDWLRQ
IRUPRLVWXUHGU\ZHOOWRSUHYHQWUXVW
&DXWLRQ㸸 ࣭ 'RQRWSXOOWKHKDUQHVVZKHQGLVFRQQHFWLQJ
࣭ :KHQHYHUGLVDVVHPEO\LVSHUIRUPHGPDNH WKHFRQQHFWRUEHFDXVHWKLVPD\FDXVHWKH
VXUHWRUHSODFHWKHSDFNLQJRLOVHDOV2ULQJV ZLULQJWRFRPHRXWRUWREHFRPHFXW
VWDNLQJORFNQXWVEHQGLQJORFNSODWHVFRWWHU
SLQVHWFZLWKQHZRQHV
࣭ 0DNHVXUHWRFKHFNWKHVXSSO\V\VWHPDQG
SDUWQXPEHUVLQWKHSDUWVFDWDORJEHFDXVHWKH
SDUWQXPEHUVLQGLFDWHGLQWKLVPDQXDOPD\
GLIIHUIURPWKHVXSSO\V\VWHPDQGDUHVXEMHFW
WRFKDQJH
&RQQHFWRUKDQGOLQJVDIHW\LQIRUPDWLRQ
'LVFRQQHFWLQJWKHFRQQHFWRU
&DXWLRQ㸸
࣭ 0DQ\FRQQHFWRUVKDYHDORFNWRHQVXUHVHFXUH
FRQQHFWLRQV
࣭ 7KHW\SHVRIORFNVJHQHUDOO\XVHGDUHWKRVH
WKDWRSHQE\OLIWLQJWKHUHOHDVHDUHDRIWKHORFN
DQGWKRVHWKDWRSHQE\SUHVVLQJWKHUHOHDVH
DUHD
࣭ %HIRUHGLVFRQQHFWLQJWKHFRQQHFWRUGHWHUPLQH &RQQHFWLQJWKHFRQQHFWRU
LQDGYDQFHZKLFKW\SHRIORFNWKHFRQQHFWRULV
XVLQJ &DXWLRQ㸸
࣭ )LUPO\KROGWKHPDOHDQGIHPDOHVLGHVRIWKH
FRQQHFWRUDQGDOLJQWKHPFRUUHFWO\
࣭ )LUPO\SXVKWKHPWRJHWKHUXQWLOERWKVLGHVFOLFN
LQWRSODFH
/RFN
5HOHDVHDUHD
&DXWLRQ㸸
࣭ 7RGLVFRQQHFWWKHFRQQHFWRUILUPO\KROGWKH (OHFWULFDOSDUWVKDQGOLQJVDIHW\LQIRUPDWLRQ
PDOHDQGIHPDOHVLGHVRIWKHFRQQHFWRUDQG
SXOOWKHPDSDUWFDUHIXOO\DIWHUUHOHDVLQJWKH
ORFN
,QWURGXFWLRQ$OO
:DUQLQJ㸸 &DXWLRQ㸸
࣭ ,IWKHIXVHEORZVRXWLGHQWLI\WKHFDXVHDQG ࣭ :KHQLQVWDOOLQJHOHFWURQLFSDUWVWDNHFDUHWR
UHSODFHZLWKDNQRZQJRRGIXVHRIWKHVDPH HQVXUHWKHKDUQHVVHVGRQRWJHWSLQFKHGDQG
FDSDFLW\ GRQRWIRUFLEO\SXVKWKHKDUQHVVHVLQ
࣭ ,IDIXVHZLWKKLJKFDSDFLW\LVXVHGLWZLOOQRW
IXQFWLRQSURSHUO\XQGHUDQH[FHVVFXUUHQW
࣭ 7KLVPD\FDXVHSDUWVZLULQJHWFWREXUQDQG
FDQUHVXOWLQDILUH
&DXWLRQ㸸
࣭ 0DNHVXUHWKDWDOOFRQQHFWLRQVDUHFOHDQDQG
VHFXUH
࣭ ,IWKHKDUQHVVLVLQFRQWDFWZLWKVKDUSHGJHVRU
&DXWLRQ㸸 VXUIDFHVRIRWKHUSDUWVSURWHFWWKHKDUQHVV
࣭ $VIRUHOHFWULFSDUWVHYHQIRUWKRVHWKDWDUH XVLQJDJURPPHWRUWXEHWRSUHYHQWGDPDJH
ZDWHUSURRIHGWU\WRDYRLGH[SRVLQJWKHP GXHWRWKHFRQWDFW
GLUHFWO\WRKLJKSUHVVXUHZDWHUZKHQZDVKLQJ
FRYHUWKHPZLWKSODVWLFVKHHWVHWFDVPXFK
DVSRVVLEOH
࣭ +DQGOHHOHFWURQLFSDUWVZLWKVXIILFLHQWFDUH
DQGGRQRWGDPDJHWKHSDUWVE\GURSSLQJ
WKURZLQJHWF
&DXWLRQ㸸
࣭ :KHQZLULQJWKHKDUQHVVE\GLYHUWLQJLWDURXQG
RWKHUSDUWVJLYHWKHKDUQHVVDVXIILFLHQW
DPRXQWRIIUHHOHQJWKDQGXVHDSURWHFWLYH
WXEHDQGFOLSWRHQVXUHLWGRHVQRWPDNH
FRQWDFWZLWKVXUURXQGLQJSDUWV
,QWURGXFWLRQ$OO
'HVFULSWLRQ*HQHUDO,QIRUPDWLRQ
6HUYLFH,QIRUPDWLRQ*XLGH
$OO
7DEOHRI&RQWHQWV
&RQWHQWVLQFOXGHGLQVHUYLFHLQIRUPDWLRQ$
3ODVWLFJDXJH$
5HFRPPHQGHGOLTXLGJDVNHW$
7KUHDGORFNLQJDGKHVLYHDJHQW$
7HUP$
$EEUHYLDWLRQV$
6WDQGDUGEROWV$
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
&RQWHQWVLQFOXGHGLQVHUYLFHLQIRUPDWLRQ
&RQWHQWVLQFOXGHGLQVHUYLFHLQIRUPDWLRQ ,QFOXGHVWKHPDLQWHQDQFHSUHFDXWLRQVVSHFLILFWRHDFK
LWHP
5HPRYDO
,QFOXGHVWKHUHPRYDOSURFHGXUHIRUUHSDLULQJSDUWV 'LVFRQQHFWLRQ
GHYLFHVHWF ,QFOXGHVWKHGLVFRQQHFWLRQSURFHGXUHVIRUZLULQJSLSLQJ
HWF
,QVWDOODWLRQ
,QFOXGHVWKHLQVWDOODWLRQSURFHGXUHIRUUHSDLULQJSDUWV &RQQHFWLRQ
GHYLFHVHWF ,QFOXGHVWKHFRQQHFWLRQSURFHGXUHVIRUZLULQJSLSLQJ
HWF
'LVDVVHPEO\
,QFOXGHVWKHGLVDVVHPEO\SURFHGXUHIRURYHUKDXOLQJD 6HWWLQJ
XQLWDVVHPEO\SDUWHWF ,QFOXGHVWKHVHWWLQJSURFHGXUHQHFHVVDU\DIWHUUHSODFLQJ
WKH(&0HWF
$VVHPEO\
,QFOXGHVWKHDVVHPEO\SURFHGXUHIRURYHUKDXOLQJDXQLW 5HSODFHPHQW
DVVHPEO\SDUWHWF ,QFOXGHVWKHSURFHGXUHIRUUHSODFLQJSDUWVRLOHWF
,QVSHFWLRQ 3ULRULWL]HG'7&
,QFOXGHVLQVSHFWLRQLWHPVIRUSDUWVUHTXLULQJVSHFLDO ,QFOXGHV'7&VWKDWQHHGWREHGLDJQRVHGDQGUHVROYHG
DWWHQWLRQGXULQJLQVSHFWLRQWRHQVXUHFRQWLQXHG EHIRUHWKHUHOHYDQW'7&ZKHQPXOWLSOH'7&VDUHVHW
SHUIRUPDQFHRISDUWVGHYLFHVHWF
'LDJQRVLV
9DOXHVDUHOLVWHGIRUSDUWVZKRVHVSHFLILHGYDOXHVVHWWLQJ
,QFOXGHVWKHGLDJQRVWLFSURFHGXUHIRUWURXEOHVKRRWLQJ
YDOXHVDQGXVHFRQGLWLRQVKDYHEHHQGHWHUPLQHG
V\PSWRPV
&OHDQLQJ '7&VDUHOLVWHGLQRUGHURISULRULW\
,QFOXGHVWKHFOHDQLQJSURFHGXUHIRUSDUWVGHYLFHVHWF
&RQILUPDWLRQRISUREOHPUHVROXWLRQ
3UHSDUDWLRQ ,QFOXGHVWKHSURFHGXUHIRUYHULI\LQJWKHSUREOHP
,QFOXGHVWKHSUHSDUDWRU\SURFHGXUHQHFHVVDU\EHIRUH UHVROXWLRQE\XVLQJQXPHULFYDOXHVHWFRWKHUWKDQWKH
UHPRYLQJSDUWVGHYLFHVHWF YHULILFDWLRQWKDWDQ\'7&VDUHFOHDUHG
$GMXVWPHQW )XQFWLRQDOGHVFULSWLRQ
,QFOXGHVWKHDGMXVWPHQWSURFHGXUHLIDGMXVWPHQWWRWKHVHW ,QFOXGHVWKHGHWDLOHGIXQFWLRQDOGHVFULSWLRQUHODWHGWRWKH
RUVSHFLILHGYDOXHVLVQHFHVVDU\IROORZLQJDVVHPEO\RU IXQFWLRQDOLQVSHFWLRQ
LQVWDOODWLRQ
6\PSWRPGHVFULSWLRQ
0HDVXUHPHQW ,QFOXGHVWKHGHWDLOHGV\PSWRPGHVFULSWLRQVUHODWHGWRD
,QFOXGHVWKHPHDVXUHPHQWSURFHGXUHIRUMXGJLQJLISDUWV GLDJQRVLVE\V\PSWRP
DUHLQVWDOOHGLQWKHFRUUHFWORFDWLRQVHWF
'7&GHVFULSWLRQ
'UDLQ ,QFOXGHVWKHFLUFXLWGHVFULSWLRQUHODWHGWR'7&V
,QFOXGHVWKHGUDLQLQJSURFHGXUHRIRLOHWF
6HWWLQJFRQGLWLRQV
5HILOO ,QFOXGHVWKHSUHFRQGLWLRQVDQGWKHMXGJPHQWFRQGLWLRQV
,QFOXGHVWKHUHILOOLQJSURFHGXUHRIRLOHWF IRUWKH(&8WRVHW'7&V
$LUUHPRYDO $FWLRQXSRQVHWWLQJ
,QFOXGHVWKHDLUUHPRYDOSURFHGXUHZKHQDLUUHPRYDOLV ,QFOXGHVWKHLQIRUPDWLRQUHODWHGWRWKHFRQWURODFWLRQV
QHFHVVDU\DIWHUFKDQJLQJRLOHWF WDNHQE\WKH(&8HWFZKHQ'7&VDUHVHW
:ULWLQJ ,WHPVUHODWHGWR(70
,QFOXGHVWKHZULWLQJSURFHGXUHQHFHVVDU\IROORZLQJ ,WHPVUHODWHGWRWKH(70DUHGHVFULEHGLQWKHLQVWUXFWLRQV
UHSODFHPHQWRIWKH(&0RUVXSSO\SXPS RQKRZWRYLHZWKHZLULQJGLDJUDP
3UHFDXWLRQ $UURZVDQGV\PEROV
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
9HKLFOHIURQW *DVRUZDUPDLU
8SZDUG 0L[LQJRIRXWVLGHDLUDQGJDVRUPL[LQJRIFROG
2SHUDWLQJVHFWLRQRURSHUDWLQJGLUHFWLRQ DLUDQGZDUPDLU
'HWDLORIDSDUWLFXODUSDUW 5RWDWLRQGLUHFWLRQ
'HWDLOHGYLHZIURP$ 5HIXHO
$UURZXVHGIRULQGLFDWLQJDGLPHQVLRQ /XEULFDWLRQ
$UURZLQGLFDWLQJDFURVVVHFWLRQ /LTXLGJDVNHWDSSOLFDWLRQ
2XWVLGHDLURUFROGDLU
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
3ODVWLFJDXJH
8VLQJWKHSODVWLJDXJH
7\SH 0HDVXUDEOHUDQJH
㸸WRPP^
3**UHHQ
WRLQ`
㸸WRPP^
355HG
WRLQ`
㸸WRPP^
3%%OXH
WRLQ`
0HWKRGIRUPHDVXULQJWKHJDSEHWZHHQWKHFRQQHFWLQJ
URGEHDULQJDQGWKHFUDQNSLQ
&OHDQWKHFRQQHFWLQJURGDQGWKHEHDULQJDQGDVVHPEOH
WRWKHFRQQHFWLQJURG
&XWWKHSODVWLJDXJHWRWKHZLGWKRIWKHFUDQNSLQDQGOD\
LWSDUDOOHODYRLGLQJWKHFUDQNSLQRLOKROH
$OLJQWKHPDUNLQJVRQWKHFRQQHFWLQJURGDQGWKHFDS
DQGDVVHPEOHWKHPRQWKHFUDQNSLQ$SSO\PRO\EGHQXP
GLVXOILGHWRWKHWKUHDGHGSRUWLRQDQGWKHVHDWVXUIDFHRI 0HWKRGIRUPHDVXULQJWKHJDSEHWZHHQWKHFUDQNEHDULQJ
WKHWLJKWHQLQJEROWVDQGWLJKWHQWKHFDSVDOWHUQDWHO\WRWKH DQGWKHFUDQNMRXUQDO
VSHFLILHGWRUTXH &OHDQWKHEHDULQJLQVWDOOLQJVXUIDFHVRIWKHF\OLQGHUEORFN
&DXWLRQ㸸 DQGWKHFUDQNFDVHDQGFOHDQWKHEHDULQJV7KHQDVVHPEOH
WRWKHF\OLQGHUEORFNDQGWKHFUDQNFDVH
࣭ 1HYHUPRYHWKHFRQQHFWLQJURGZKHQWKH *HQWO\SODFHWKHFUDQNVKDIWRQWKHF\OLQGHUEORFNDQG
SODVWLJDXJHLVLQXVH VHWWOHLWE\WXUQLQJLWDSSUR[LPDWHO\GHJUHHV
*HQWO\UHPRYHWKHFDSDQGWKHFRQQHFWLQJURGDQG &XWWKHSODVWLJDXJHWRWKHZLGWKRIWKHFUDQNMRXUQDODQG
PHDVXUHWKHZLGWKRIWKHIODWWHQHGSODVWLJDXJHXVLQJWKH OD\LWSDUDOOHODYRLGLQJWKHMRXUQDORLOKROH
VFDOHSULQWHGRQWKHSDFNDJLQJ *HQWO\SODFHWKHFUDQNFDVHRQWKHF\OLQGHUEORFNDQG
DSSO\PRO\EGHQXPGLVXOILGHWRWKHWKUHDGHGSRUWLRQDQG
WKHVHDWVXUIDFHRIWKHWLJKWHQLQJEROWV7LJKWHQWRWKH
VSHFLILHGWRUTXHLQWKHVSHFLILHGRUGHU
&DXWLRQ㸸
࣭ 1HYHUPRYHWKHFRQQHFWLQJURGZKHQWKH
SODVWLJDXJHLVLQXVH
*HQWO\UHPRYHWKHFUDQNFDVHDQGPHDVXUHWKHZLGWKRI
WKHIODWWHQHGSODVWLJDXJHXVLQJWKHVFDOHSULQWHGRQWKH
SDFNDJLQJ
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
5HFRPPHQGHGOLTXLGJDVNHW
8VLQJWKHWKUHDGOLTXLGJDVNHW
0DQXIDFWXUHU
7\SH 3URGXFWQDPH $UHDXVHGUHIHUHQFH
QDPH
7KUHH%RQG% 7KUHH%RQG (QJLQHRLOVHDOUHWDLQHU
6LOLFRQW\SH
7KUHH%RQG& 7KUHH%RQG (QJLQHRLOSDQ
5RRPWHPSHUDWXUH
7KUHH%RQG 7KUHH%RQG 7LPLQJJHDUFDVH
YXOFDQL]DWLRQSURFHVV
7KUHH%RQG 7KUHH%RQG &\OLQGHUKHDGFRYHU
:DWHUVROXEOH 7KUHH%RQG 7KUHH%RQG )XHOSXPS
7KUHH%RQG 7KUHH%RQG :DWHUSXPS
6ROYHQW HWF
7KUHH%RQG 7KUHH%RQG
/RFWLWH /RFWLWH
(QJLQHRLOVHDOUHWDLQHU
/RFWLWH /RFWLWH
:DWHUSXPS
$QDHURELF )0' /RFWLWH
3OXJ
/RFWLWH /RFWLWH
HWF
/RFWLWH /RFWLWH
&DXWLRQ㸸 &DXWLRQ㸸
࣭ 0DNHVXUHWRXVHDOLTXLGJDVNHWZLWKWKH ࣭ %HFDUHIXOQRWWRH[FHVVLYHO\RULQVXIILFLHQWO\
SURGXFWQDPHDERYHRUHTXLYDOHQW DSSO\OLTXLGJDVNHW
࣭ 8VHDQDSSURSULDWHDPRXQWRIOLTXLGJDVNHW ࣭ %HVXUHWRRYHUODSWKHVWDUWDQGWKHHQGRIWKH
࣭ )ROORZWKHKDQGOLQJSUHFDXWLRQVIRUWKH OLTXLGJDVNHWDSSOLFDWLRQ
SURGXFW ࣭ %HFDUHIXOQRWWRPLVDOLJQWKHSDUWZLWKWKH
࣭ 'RQRWXVH/2&7,7(RU)0' PDWLQJSDUWZKHQDVVHPEOLQJDSSOLHGSDUWV
/RFWLWHDVWKH\DUHDQDHURELFDQGGR 1RWH㸸
QRWSURYLGHVXIILFLHQWHIIHFWLIWKHUHLVDJDS
࣭ $SSO\DJDLQLIWKHUHLVDPLVDOLJQPHQW
ODUJHUWKDQPP^LQ`EHWZHHQWKH
FRQWDFWVXUIDFHVRIPHWDOV ࣭ 8VHWKHVDPHVL]HVWXGVDVDJXLGHZKHQ
XVLQJIRUDVHFWLRQZKLFKKDVQRSRVLWLRQLQJ
:KHQHYHUGLVDVVHPEOLQJFRPSOHWHO\UHPRYHWKHROG VXFKDVDNQRFNSLQ
OLTXLGJDVNHWRQWKHSDUWVDQGWKHPDWLQJSDUWVZKHUHWKH
OLTXLGJDVNHWZDVXVHGXVLQJDVFUDSHUDQGFOHDQXVLQJD &DXWLRQ㸸
ZDVWHFORWKHWFVRWKDWDQ\RLOPRLVWXUHGLUWHWFLV ࣭ $IWHUDSSO\LQJDOLTXLGJDVNHWDVVHPEOHZLWKLQ
UHPRYHG$IWHUFOHDQLQJDSSO\WKHVSHFLILHGOLTXLGJDVNHW PLQXWHV
WRHDFKORFDWLRQDQGDVVHPEOH
1RWH㸸
1RWH㸸 ࣭ :KHQPRUHWKDQPLQXWHVKDYHSDVVHGDIWHU
࣭ ,IDJDVNHWUHPRYHULVXVHGWRPDNHWKH DSSO\LQJDOLTXLGJDVNHWUHPRYHWKHOLTXLG
RSHUDWLRQGXULQJFOHDQLQJHDVLHULWLVEHWWHUWR JDVNHWDQGDSSO\LWDJDLQ
ZDLWDSSUR[LPDWHO\PLQXWHVDIWHUDSSO\LQJ &DXWLRQ㸸
EHIRUHVWDUWLQJWKHUHPRYDORSHUDWLRQ
࣭ :DLWDWOHDVWPLQXWHVEHIRUHVWDUWLQJWKH
&DXWLRQ㸸 HQJLQHDIWHUDVVHPEOLQJHDFKSDUW
࣭ 'RQRWDSSO\DJDVNHWUHPRYHUWRWKHSODVWLF
SDUWVDQGWKHSDLQWHGSDUWV
7KRURXJKO\DSSO\DOLTXLGJDVNHWZLWKWKHVSHFLILHGEHDG
ZLGWKWRRQHVLGHRIWKHFRQWDFWVXUIDFH
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
&DXWLRQ㸸
࣭ ,IWKHZRUNVKRSPDQXDOVSHFLILHVDQ
DSSOLFDWLRQPHWKRGIROORZWKDWPHWKRG
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
7KUHDGORFNLQJDGKHVLYHDJHQW
8VLQJWKHWKUHDGORFNLQJDGKHVLYHDJHQW
7\SH &RORU
/RFWLWH %OXH
/RFWLWH 5HG
/RFWLWH 5HG
&DXWLRQ㸸
࣭ 7KRURXJKO\UHPRYHJULPHPRLVWXUHRLODQG
JUHDVHIURPWKHEROWVEROWKROHVDQGVFUHZ
WKUHDGSRUWLRQRIWKHQXWVWRZKLFKWKUHDG
ORFNLQJDGKHVLYHDJHQWZLOOEHDSSOLHG
1RWH㸸
࣭ 9HULI\WKDWWKHFOHDQHGVHFWLRQVDUHGU\
&DXWLRQ㸸
࣭ $IWHUWLJKWHQLQJGRQRWDSSO\H[FHVVLYHWRUTXH
RUYLEUDWLRQIRUDWOHDVWKRXUXQWLOWKHWKUHDG
ORFNLQJDGKHVLYHDJHQWKDUGHQV
$SSO\WKHWKUHDGORFNLQJDGKHVLYHDJHQWWRWKHHQGRI
WKHEROWDQGWLJKWHQWRWKHVSHFLILHGWRUTXH
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
7HUP
7HUP
6SHFLILHGYDOXH
5HIHUVWRVSHFLILHGYDOXHVIRULQVSHFWLRQDGMXVWPHQW
DVVHPEO\DQGLQVWDOODWLRQ
/LPLW
5HIHUVWRDPD[LPXPRUPLQLPXPYDOXHWKDWVKRXOGQRW
EHH[FHHGHGGXULQJPDLQWHQDQFHZRUN
,IWKLVYDOXHLVH[FHHGHGWKHUHOHYDQWSDUWPXVWEH
UHSODFHGRUUHSDLUHG
:DUQLQJ
,QGLFDWHVDSUHFDXWLRQZKLFKPD\OHDGWRLQMXU\LIQRW
REVHUYHG
&DXWLRQ
,QGLFDWHVDSUHFDXWLRQZKLFKPD\OHDGWRSK\VLFDO
GDPDJHLIQRWREVHUYHG
6XSSOHPHQW
,QGLFDWHVDVSHFLDOQRWHWKDWJLYHVLQVWUXFWLRQJXLGDQFH
RUXVHFRQGLWLRQVUHODWHGWRXVHRSHUDWLRQUHSDLUHWF
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
$EEUHYLDWLRQV
$EEUHYLDWLRQV
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
$EEUHYLDWLRQ 'HVFULSWLRQ
$' $QDORJ'LJLWDO
$%'& $IWHUERWWRPGHDGFHQWHU
$& $OWHUQDWLQJFXUUHQW
$&& $FFHVVRU\
$&* $OWHUQDWLQJFXUUHQWJHQHUDWRU
$&7 $FWXDWRU
$3, $PHULFDQ3HWUROHXP,QGXVWU\
$60 $VVHPEO\
$7'& $IWHUWRSGHDGFHQWHU
$7) $XWRPDWLFWUDQVPLVVLRQIOXLG
% %DWWHU\WHUPLQDO
%$7 %DWWHU\
%%'& %HIRUHERWWRPGHDGFHQWHU
%.7 %UDFNHW
%5* %HDULQJ
%7'& %HIRUHWRSGHDGFHQWHU
&% &LUFXLWEUHDNHU
&8 &RQWUROXQLW
&$1 &RQWUROXQLWFRPPXQLFDWLRQPHWKRG&RQWURODUHDQHWZRUN
&.3 &UDQNVKDIWSRVLWLRQ
&03 &DPVKDIWSRVLWLRQ
&2 &DUERQPRQR[LGH
&38 &HQWUDOSURFHVVLQJXQLW
'& 'LUHFWFXUUHQW
', 'LUHFWLQMHFWLRQW\SH
'/& 'DWDOLQNFRQQHFWRU
'3' 'LHVHOSDUWLFXODWHGLIIXVHU
'7& 6HOIGLDJQRVLVFRGH
'00 'LJLWDOPXOWLPHWHU
(&0 (QJLQHFRQWUROPRGXOH
(&7 (QJLQHFRRODQWWHPSHUDWXUH
(&8 (OHFWURQLFFRQWUROXQLW
((3520 (OHFWULFDOO\HUDVDEOHSURJUDPPDEOH520
(*5 ([KDXVWJDVUHFLUFXODWLRQ
(0, (OHFWURPDJQHWLFLQWHUIHUHQFH
(959 (OHFWULFYDFXXPUHJXODWLQJYDOYH
(;+ ([KDXVW
)% )HHGEDFN
)& )XHOFXW
)/ )XVLEOHOLQN
)/: )XVLEOHOLQNZLUH
)57 )URQW
)7 )XHOWHPSHUDWXUH
):' )URQW
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
*(1 *HQHUDWRU
*1' *URXQG
+& +\GURFDUERQ
+26 6XSHUKHDW2VHQVRU
,$& ,GOHDLUFRQWURO
,$7 ,QWDNHDLUWHPSHUDWXUH
,& ,QWHJUDWHGFLUFXLW
,'3ODWH 1DPHSODWH,'3ODWH
,'66 ,68=8'LDJQRVWLF6HUYLFH6\VWHP
,07 ,QWDNHPDQLIROGWHPSHUDWXUH
,1/ ,QWDNH
,1- ,QMHFWLRQ
,62 ,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ
,63 ,QWDNHVKXWWHUSRVLWLRQ
,73 ,QWDNHWKURWWOHSRVLWLRQ
-& -RLQWFRQQHFWRU
-,6 -DSDQ,QGXVWULDO6WDQGDUG
.: $FRPPXQLFDWLRQPHWKRG.H\ZRUG
/+ /HIWVLGH
//& /RQJOLIHFRRODQW
09 (OHFWURPDJQHWLFYDOYH
0$) 0DVVDLUIORZ
0$3 0DQLIROGDLUSUHVVXUH
0D[ 0D[LPXP
0,/ :DUQLQJOLJKW'LDJQRVWLFOLJKW
0LQ 0LQLPXP
038 0LFURSURFHVVLQJXQLW
1& 1RUPDOO\FORVHG
1& 1RUPDOO\FORVHG
12 1RUPDOO\RSHQ
12[ 1LWURJHQR[LGH
17'& 7RSGHDGFHQWHUUHYROXWLRQVSHHG
26 2VHQVRU
2%' 2QERDUGGLDJQRVLV
2(0 2ULJLQDOHTXLSPHQWPDQXIDFWXUHU
237 2SWLRQ
27 2LOWHPSHUDWXUH
3/ 3LORWOLJKW
3&9 3XPSFRQWUROYDOYH3RVLWLYHFUDQNFDVHYHQWLODWLRQ
3, 3URSRUWLRQLQWHJUDWLRQ
30 3DUWLFXODWHPDWWHU
372 3RZHUWDNHRII
3:0 3XOVHZLGWKPRGXODWLRQZDYH
426 4XLFNRQVWDUWV\VWHP
4:6 4XLFNZDUPLQJXSV\VWHP
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
5+ 5LJKWVLGH
5/ 5HOD\
5$0 5DQGRPDFFHVVPHPRU\
5() 5HIHUHQFH
520 5HDGRQO\PHPRU\
53 5DLOSUHVVXUH
55 5HDU
5U 5HDU
5:' 5HDU
6$( 6RFLHW\RI$XWRPRWLYH(QJLQHHUV
6%) 6ORZEORZIXVH
6&9 )53UHJXODWRU
6,* 6LJQDO
6/' 6KLHOG
67 6WDUWHU6WDUW
67' 6WDQGDUGV
6: 6ZLWFK
7'& 7RSGHDGFHQWHU
7(03 7HPSHUDWXUH
73 7KURWWOHSRVLWLRQ
9% %DWWHU\YROWDJH
9*67XUER 9DULDEOHJHRPHWU\V\VWHPWXUER
:+ :LUH+DUQHVV
:/ :DUQLQJOLJKW
:6 :HOGVSOLFH
:27 :LGHRSHQWKURWWOH
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
6WDQGDUGEROWV
/LVWRIVWDQGDUGEROWDQGQXWWLJKWHQLQJWRUTXHV 1RWH㸸
࣭ 7KHWLJKWHQLQJWRUTXHYDOXHVLQWKHIROORZLQJ
WDEOHDSSO\WRORFDWLRQVZKHUHQRWLJKWHQLQJ
WRUTXHLVVSHFLILHG
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
6WUHQJWK
7
FDWHJRU\ 7
%ROWKHDG
+H[EROW )ODQJHEROW +H[EROW )ODQJHEROW
VKDSH
㸸WR1࣭P^WR 㸸WR1࣭P^WR 㸸WR1࣭P^WR 㸸WR1࣭P^
0[ NJI࣭PWROE࣭ NJI࣭PWROE࣭ NJI࣭PWROE࣭ WRNJI࣭PWR
LQ` LQ` LQ` OE࣭LQ`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWROE࣭ WRNJI࣭PWR
OE࣭LQ` OE࣭LQ` IW` OE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR ^WRNJI࣭P
OE࣭IW` OE࣭IW` OE࣭IW` WROE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
6HUYLFH,QIRUPDWLRQ*XLGH$OO$
6WUHQJWK
FDWHJRU\ 7
%ROWKHDG
+H[EROW )ODQJHEROW +H[EROW )ODQJHEROW
VKDSH
㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR ʊ ʊ
OE࣭LQ` OE࣭LQ`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^ 㸸WR1࣭P^
0[ WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR WRNJI࣭PWR
OE࣭IW` OE࣭IW` OE࣭IW` OE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P^ 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ WRNJI࣭PWR ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
OE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭IW` WROE࣭IW` WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
$6HUYLFH,QIRUPDWLRQ*XLGH$OO
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
㸸WR1࣭P 㸸WR1࣭P
0[ ^WRNJI࣭P ʊ ^WRNJI࣭P ʊ
WROE࣭IW` WROE࣭IW`
1RWH㸸 ࣭ 5HIHUWRWKHGLDJUDPEHORZIRUWKHLQGLFDWLRQRI
࣭ 7KRVHLQGLFDWHGZLWKDQDVWHULVN
DUHXVHG WKHVWDQGDUGEROWKHDG
IRUWKHWKUHDGHGSRUWLRQRIFDVWLQJVPDGHRI
VRIWPDWHULDO
)ODUHQXWZLGWKDFURVV
7LJKWHQLQJWRUTXHIRUPLGGOHDQGODUJHVL]HG IODWV
3LSHGLDPHWHU
YHKLFOHV
2OG 1HZ
㸸WR1࣭P^WRNJI࣭PWR 㸸PP 㸸PP
㸸PP^LQ`
OE࣭IW` ^LQ` ^LQ`
㸸WR1࣭P^WRNJI࣭PWR 㸸PP 㸸PP
㸸PP^LQ`
OE࣭IW` ^LQ` ^LQ`
7LJKWHQLQJWRUTXHRI 㸸PP^LQ` 㸸WR1࣭P^WRNJI࣭PWR 㸸PP 㸸PP
WKHIODUHQXW OE࣭IW` ^LQ` ^LQ`
6HUYLFHVWDQGDUG 㸸WR1࣭P^WRNJI࣭PWR 㸸PP 㸸PP
YDOXH 㸸PP^LQ`
OE࣭IW` ^LQ` ^LQ`
㸸WR1࣭P^WRNJI࣭P 㸸PP 㸸PP
㸸PP^LQ`
WROE࣭IW` ^LQ` ^LQ`
㸸WR1࣭P^WRNJI࣭P 㸸PP 㸸PP
㸸PP^LQ`
WROE࣭IW` ^LQ` ^LQ`
7DSHUHGWKUHDGIRUFRQQHFWRUVDQGEUDVVSURGXFWV
6FUHZVL]H 375 375 375 375
㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P 㸸WR1࣭P
ʊ ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P ^WRNJI࣭P
WROE࣭LQ` WROE࣭LQ` WROE࣭LQ` WROE࣭LQ`
7DSHUHGWKUHDGIRUSURGXFWVRWKHUWKDQFRQQHFWRUVDQGEUDVVSURGXFWV
6FUHZVL]H 375 375 375 375 375
㸸WR1࣭
㸸WR1࣭P 㸸WR1࣭ 㸸WR1࣭ 㸸WR1࣭
P^WR
ʊ ^WRNJI࣭P P^WRNJI࣭ P^WRNJI࣭ P^WRNJI࣭
NJI࣭PWR
WROE࣭LQ` PWROE࣭IW` PWROE࣭IW` PWROE࣭IW`
OE࣭IW`
1RWH㸸
1RWH㸸
࣭ 7KHWLJKWHQLQJWRUTXHRIWKHWDSHUHGWKUHDGIRU
࣭ )RUWKHHOERZW\SHFRQQHFWRUWLJKWHQLWZLWK
SURGXFWVRWKHUWKDQFRQQHFWRUVDQGEUDVV
WKHPLQLPXPWRUTXHVKRZQDERYHDQGWKHQ
SURGXFWVLVRQO\DSSOLHGZKHQWKHPDWLQJVLGH
WLJKWHQLWIXUWKHUXQWLOWKHDQJOHPDWFKHV
LVQRWPDGHRIDOXPLQXP
࣭ $SSO\/RFWLWHWRWKHWKUHDGHGSRUWLRQDQG
WLJKWHQ&RPSOHWHO\GU\DQGWKHQOHWDLULQDIWHU
WLJKWHQLQJ
࣭ 'RQRWXVHVHDOWDSHHWF
6SHFLILHGPLQLPXPWRUTXHSRVLWLRQ
1RUPDOSRVLWLRQ
0DLQWHQDQFH,QIRUPDWLRQ/(%
'HVFULSWLRQ(QJLQH
0DLQWHQDQFH,QIRUPDWLRQ
/(
7DEOHRI&RQWHQWV
0DLQWHQDQFHSUHFDXWLRQV%
3ULPDU\VSHFLILFDWLRQV%
)XQFWLRQ6WUXFWXUH2SHUDWLRQ%
,QWURGXFWLRQWRWKHWURXEOHGLDJQRVLV%
%0DLQWHQDQFH,QIRUPDWLRQ/(
0DLQWHQDQFHSUHFDXWLRQV
0DLQWHQDQFHSUHFDXWLRQV ,PSRUWDQWSUHFDXWLRQVIRUKDQGOLQJWKHHQJLQH
7KHKROHVDQGJDSVLQWKHIXHOV\VWHPLQFOXGLQJLQVLGH
3UHFDXWLRQVRQPDLQWHQDQFH
WKHLQMHFWRUZKHUHWKHIXHOSDVVHVWKURXJKDUH
7RSUHYHQWWKHHQJLQHIURPEHLQJGDPDJHGDQGWRHQVXUH PDQXIDFWXUHGZLWKKLJKSUHFLVLRQ7KHUHIRUHWKHVHDUH
WKHUHOLDELOLW\RIHQJLQHSHUIRUPDQFHEHFDUHIXORIWKH H[WUHPHO\VHQVLWLYHWRDQ\IRUHLJQPDWHULDODQGPD\EH
IROORZLQJSRLQWVZKHQSHUIRUPLQJPDLQWHQDQFHZRUN VHYHUHO\GDPDJHGLIIRUHLJQPDWHULDODFFLGHQWDOO\HQWHUV
:KHQSODFLQJWKHHQJLQHRQWKHJURXQGPDNHVXUHWKDW )RUWKLVUHDVRQH[WUHPHFDUHPXVWEHWDNHQWRSUHYHQW
WKHEHDULQJVXUIDFHRIWKHRLOSDQGRHVQRWGLUHFWO\FRQWDFW DQ\IRUHLJQPDWHULDOIURPHQWHULQJ:KHQSHUIRUPLQJ
WKHJURXQG PDLQWHQDQFHRQWKHIXHOV\VWHPWDNHH[WUHPHFDUHWR
8VHDQDSSURSULDWHZRRGIUDPHHWFWRVXSSRUWWKH SUHYHQWDQ\IRUHLJQPDWHULDOIURPHQWHULQJWKHV\VWHP
HQJLQHDWWKHHQJLQHIRRWSRUWLRQDQGWKHIO\ZKHHO
࣭%HIRUHVWDUWLQJPDLQWHQDQFHFOHDQWKHIXHOOLQHDQGLWV
KRXVLQJSRUWLRQ
VXUURXQGLQJV
7KHUHLVRQO\DVPDOOJDSEHWZHHQWKHRLOSDQDQGWKHRLO
SXPSVWUDLQHUVREHFDUHIXOQRWWRGDPDJHWKHRLOSDQDQG ࣭%HVXUHWRZDVK\RXUKDQGVEHIRUHVWDUWLQJ
WKHRLOVWUDLQHU PDLQWHQDQFH'RQRWZHDUFRWWRQZRUNJORYHV
࣭:KLOHWKHDLUGXFWRUWKHDLUFOHDQHULVUHPRYHGFRYHU ࣭:KHQWKHIXHOKRVHRUIXHOSLSHLVUHPRYHGFRYHUWKH
WKHRSHQVHFWLRQRIWKHLQWDNHWRSUHYHQWIRUHLJQPDWHULDO RSHQLQJZLWKDYLQ\OEDJDQGIL[LWZLWKDSLHFHRIWDSH
IURPHQWHULQJWKHF\OLQGHU
࣭:KHQWKHKLJKSUHVVXUHSLSLQJRIWKHIXHOV\VWHPLV
,IIRUHLJQPDWHULDOHQWHUVWKHF\OLQGHULWPD\VHULRXVO\
UHPRYHGEHVXUHWRUHSODFHLWZLWKDQHZRQH,ILWLV
GDPDJHWKHF\OLQGHUZKHQWKHHQJLQHLVVWDUWHG
UHXVHGWKHVHDOLQJVXUIDFHPD\EHGDPDJHGDQGFDXVH
࣭:KHQPDLQWDLQLQJWKHHQJLQHEHVXUHWRGLVFRQQHFWWKH IXHOOHDNDJH
QHJDWLYHEDWWHU\FDEOH)DLOXUHWRGRWKLVPD\FDXVHWKH
࣭:KHQUHSODFLQJWKHIXHOKRVHWKHIXHOSLSHHWFGRQRW
KDUQHVVRUHOHFWULFDOFRPSRQHQWVWREHGDPDJHG
XQSDFNQHZFRPSRQHQWVEHIRUHVWDUWLQJLQVWDOODWLRQ
,IHQHUJL]LQJLVUHTXLUHGIRULQVSHFWLRQEHFDUHIXOQRWWR
FDXVHDVKRUW ࣭:KHQWKHIXHOSLSHLQMHFWLRQSLSHIXHOLQMHFWRUWKHIXHO
VXSSO\SXPSRUWKHFRPPRQUDLOLVUHPRYHGVHDOWKH
࣭%HIRUHDVVHPEO\DSSO\HQJLQHRLOWRWKHVOLGHFRQWDFW
RSHQLQJLPPHGLDWHO\
VXUIDFHVRIWKHHQJLQH
7KLVZRUNHQVXUHVDSSURSULDWHOXEULFDWLRQZKHQILUVW ࣭6WRUHWKHH\HEROWDQGWKHJDVNHWLQDFOHDQSDUWVER[
VWDUWLQJWKHHQJLQH ZLWKDFRYHUVRWKDWIRUHLJQPDWHULDOGRHVQRWEHFRPH
DGKHUHG
࣭:KHQWKHYDOYHWUDLQFRPSRQHQWSLVWRQSLVWRQULQJ
FRQQHFWLQJURGFRQQHFWLQJURGEHDULQJDQGFUDQNVKDIW ࣭)XHOOHDNDJHPD\FDXVHDILUH7KHUHIRUHEHVXUHWR
MRXUQDOEHDULQJDUHUHPRYHGOLQHWKHPXSLQWKHFRUUHFW ZLSHVSLOOHGIXHODIWHUFRPSOHWLQJWKHPDLQWHQDQFHZRUN
RUGHUVRWKDWWKHLURULJLQDOSRVLWLRQVDUHFOHDU DQGFKHFNWKDWWKHUHLVQRIXHOOHDNDJHEHIRUHVWDUWLQJWKH
HQJLQH
࣭:KHQLQVWDOOLQJLQVWDOOLWLQWKHVDPHSRVLWLRQDVZKHQ
LWZDVUHPRYHG &DXWLRQVRQHOHFWURQLFV\VWHP
࣭:KHQDVVHPEOLQJWKHHQJLQHUHSODFHWKHJDVNHWVRLO 8VLQJFLUFXLWWHVWWRROV
VHDOVDQG2ULQJVZLWKQHZRQHV 8QOHVVLQVWUXFWHGLQWKHGLDJQRVWLFSURFHGXUHVGRQRWXVH
DWHVWOLJKWZKHQGLDJQRVLQJWKHSRZHUWUDLQHOHFWURQLF
࣭)RUDFRPSRQHQWZLWKOLTXLGJDVNHWDSSOLHGFDUHIXOO\
V\VWHP:KHQDSUREHFRQQHFWRULVUHTXLUHGLQWKH
UHPRYHWKHROGOLTXLGJDVNHWDQGFOHDQWKHFRPSRQHQWVR
GLDJQRVWLFSURFHGXUHXVHWKHFRQQHFWRUWHVWDGDSWHUNLW
WKDWQRRLOZDWHUGXVWHWFUHPDLQV
7KHQDSSO\WKHVSHFLILHGOLTXLGJDVNHWWRHDFKSDUWEHIRUH
DVVHPEOLQJ
࣭$VVHPEOHFRPSRQHQWVZLWKOLTXLGJDVNHWDSSOLHGZLWKLQ
PLQXWHVRIDSSO\LQJWKHOLTXLGJDVNHW
,IPLQXWHVRUPRUHKDYHSDVVHGUHPRYHWKHROGOLTXLG
JDVNHWDQGDSSO\OLTXLGJDVNHWDJDLQ
࣭:KHQDVVHPEOLQJRULQVWDOOLQJDFRPSRQHQWPDNHVXUH
667FRQQHFWRUWHVWDGDSWHUNLW
WRWLJKWHQWRWKHVSHFLILHGWRUTXHWRHQVXUHVHFXUH
LQVWDOODWLRQ $IWHUPDUNHWHOHFWURQLFHTXLSPHQW
0DLQWHQDQFH,QIRUPDWLRQ/(%
$IWHUPDUNHWHOHFWURQLFHTXLSPHQWUHIHUVWRFRPPHUFLDOO\ ࣭ 7RSUHYHQWGDPDJHGXHWRHOHFWURVWDWLF
DYDLODEOHHOHFWURQLFHTXLSPHQWDWWDFKHGWRWKHPDFKLQH GLVFKDUJHGRQRWRSHQWKHSDFNDJLQJRID
DIWHULWKDVEHHQVKLSSHGIURPWKHIDFWRU\%HFDUHIXODV UHSODFHPHQWSDUWXQWLOLQVWDOODWLRQSUHSDUDWLRQ
VXFKDFFHVVRULHVDUHQRWWDNHQLQWRSDUWLFXODU IRUWKHUHSODFHPHQWSDUWLVFRPSOHWHG
FRQVLGHUDWLRQDWWKHPDFKLQHGHVLJQVWDJH
࣭ 7RSUHYHQWGDPDJHGXHWRHOHFWURVWDWLF
$IWHUPDUNHWHOHFWURQLFHTXLSPHQWPD\FDXVH
GLVFKDUJHFRQQHFWWKHSDUWSDFNDJLQJWRD
PDOIXQFWLRQVLQWKHHOHFWURQLFFRQWUROV\VWHPHYHQLIWKH
SURSHUO\ZRUNLQJJURXQGFRQQHFWLRQRIWKH
HTXLSPHQWLVSURSHUO\DWWDFKHG7KLVLQFOXGHVHTXLSPHQW
PDFKLQHEHIRUHUHPRYLQJWKHSDUWIURPLWV
QRWFRQQHFWHGWRWKHHOHFWURQLFV\VWHPRIWKHPDFKLQH
SDFNDJLQJ
VXFKDVPRELOHWHOHSKRQHVDQGUDGLRV7KHUHIRUHZKHQ
GLDJQRVLQJSRZHUWUDLQSUREOHPVFRQILUPZKHWKHUVXFK ࣭ 7RSUHYHQWGDPDJHFDXVHGE\HOHFWURVWDWLF
DIWHUPDUNHWHOHFWURQLFHTXLSPHQWLVDWWDFKHGILUVWDQG GLVFKDUJHWRXFKDSURSHUO\ZRUNLQJJURXQG
WKHQUHPRYHWKHPIURPWKHPDFKLQHLIVXFKHTXLSPHQWLV EHIRUHLQVWDOOLQJWKHSDUWZKHQKDQGOLQJLWZKLOH
DWWDFKHG,IWKHSUREOHPKDVQRWEHHQUHVROYHGDIWHU VOLGLQJDFURVVWKHVHDWZKLOHVLWWLQJGRZQIURP
UHPRYLQJWKHHTXLSPHQWSHUIRUPWKHGLDJQRVLVXVLQJWKH DVWDQGLQJSRVLWLRQRUZKLOHZDONLQJDFHUWDLQ
UHJXODUSURFHGXUH GLVWDQFH
&DXWLRQ㸸 )XHOLQMHFWLRQV\VWHP
)XHOSLSLQJ
࣭ 0DNHVXUHWKDWDIWHUPDUNHWHOHFWURQLF
7KHKLJKSUHVVXUHSLSHDQGWKHLQMHFWRUSLSHLQWKHIXHO
HTXLSPHQWLVFRQQHFWHGWRDFLUFXLWWKDWLVQRW
V\VWHPVKRXOGQRWEHUHXVHG,IHLWKHULVUHPRYHGPDNH
LQYROYHGZLWKWKHFLUFXLWVRIWKHHOHFWURQLF
VXUHWRUHSODFHLWZLWKDQHZRQH
FRQWUROV\VWHPIRUERWKSRZHUDQGJURXQG
7KHSUHVVXUHOLPLWHUDQGWKH)53VHQVRUVKRXOGQRWEH
:HOGLQJZRUNRQWKHPDFKLQH UHSODFHGLQGLYLGXDOO\:KHQDIDLOXUHLVIRXQGWKH
:KHQSHUIRUPLQJZHOGLQJZRUNRQWKHPDFKLQHPDNH FRPPRQUDLOIXHOUDLODVVHPEO\DQGDOOIXHOSLSHVVKRXOG
VXUHWRGLVFRQQHFWWKHEDWWHU\SULRUWRWKHZRUN&XUUHQW EHUHSODFHG
WKDWRFFXUVGXULQJZHOGLQJPD\OHDGWRIDLOXUHDQGRU
GDPDJHWRWKHHOHFWURQLFFRQWUROV\VWHP
'DPDJHFDXVHGE\HOHFWURVWDWLFGLVFKDUJH
$VWKHHOHFWURQLFFRPSRQHQWVXVHGLQWKHHOHFWURQLF
FRQWUROV\VWHPDUHGHVLJQHGWRRSHUDWHDWH[WUHPHO\ORZ
YROWDJHVWKH\FDQEHHDVLO\GDPDJHGE\HOHFWURVWDWLF
GLVFKDUJHDQGVRPHW\SHVRIHOHFWURQLFFRPSRQHQWVFDQ
EHGDPDJHGE\DQHOHFWURVWDWLFFKDUJHRI9RUOHVV
ZKLFKFDQQRWEHIHOWE\KXPDQV1RWHWKDWDYROWDJHRI
9LVUHTXLUHGIRUDSHUVRQWREHDEOHWRGHWHFWDQ
HOHFWURVWDWLFGLVFKDUJH
7KHUHDUHYDULRXVZD\VDSHUVRQFDQEXLOGXSDQ
HOHFWURVWDWLFFKDUJH7KHPRVWFRPPRQZD\WREXLOGXS
DQHOHFWURVWDWLFFKDUJHLVWKURXJKPHWKRGVEDVHGRQ
IULFWLRQRULQGXFWLRQ
$QH[DPSOHRIZKHQDSHUVRQEXLOGVDQHOHFWURVWDWLF
FKDUJHE\IULFWLRQZKHQVOLGLQJDFURVVWKHVHDWRIWKH
PDFKLQH
$SHUVRQZHDULQJLQVXODWHGVKRHVFDQEXLOGDQ ,QMHFWLRQSLSH
HOHFWURVWDWLFFKDUJHE\LQGXFWLRQLIWKHJURXQGLV 3UHVVXUHOLPLWHU
PRPHQWDULO\WRXFKHGZKLOHVWDQGLQJQHDUDKLJKO\ &RPPRQUDLOIXHOUDLO
FKDUJHGREMHFW$FKDUJHRIWKHVDPHSRODULW\IORZVRXW )53VHQVRU
DQGZLWKDKLJKO\RSSRVLQJSRODULW\WKDWSHUVRQEHFRPHV
FKDUJHG$VVWDWLFHOHFWULFLW\FDXVHVGDPDJHEHFDXWLRXV 3URJUDPPLQJ
ZKHQKDQGOLQJRUWHVWLQJHOHFWURQLFFRPSRQHQWV 3URJUDPPLQJJXLGHOLQH
&DXWLRQ㸸 :KHQWKH(&0RULQMHFWRUKDVEHHQUHSODFHGXVHWKH
WURXEOHGLDJQRVLVVFDQWRROWRZULWHHDFKLQMHFWRU
VGDWD
࣭ 7RSUHYHQWGDPDJHGXHWRHOHFWURVWDWLF
LQWRWKH(&0
GLVFKDUJHGRQRWWRXFKWKHFRQQHFWRUSLQVRI
)RUWKHSURJUDPPLQJPHWKRGUHIHUWRWKHLQVWUXFWLRQ
WKH(&0RUWKHHOHFWURQLFFRPSRQHQWV
PDQXDORIWKHWURXEOHGLDJQRVLVVFDQWRRO
VROGHUHGRQWRWKHFLUFXLWERDUGRIWKH(&0
%0DLQWHQDQFH,QIRUPDWLRQ/(
,WHPVWRFKHFNEHIRUHSURJUDPPLQJ
:KHQSHUIRUPLQJSURJUDPPLQJFKHFNWKH(&0SDUW1R
DVQHFHVVDU\
:KHQSHUIRUPLQJSURJUDPPLQJFKHFNWKHHQJLQHW\SHDV
QHFHVVDU\
:KHQSHUIRUPLQJSURJUDPPLQJFKHFNWKHHQJLQH1RDV
QHFHVVDU\
:KHQSHUIRUPLQJSURJUDPPLQJFKHFNWKHLQMHFWRU,'
FRGHDVQHFHVVDU\
,WHPVZKLFKUHTXLUHSURJUDPPLQJ
:KHQWKH(&0KDVEHHQUHSODFHGSHUIRUP
SURJUDPPLQJ
:KHQWKHHQJLQHKDVEHHQUHSODFHGSHUIRUP
SURJUDPPLQJ
:KHQWKHLQMHFWRUKDVEHHQUHSODFHGSHUIRUP
SURJUDPPLQJ
0DLQWHQDQFH,QIRUPDWLRQ/(%
3ULPDU\VSHFLILFDWLRQV
3ULPDU\VSHFLILFDWLRQV (QJLQHPDLQVSHFLILFDWLRQV
,WHP (QJLQHPRGHO/(
7\SH 'LHVHOF\FOHZDWHUFRROHGLQOLQHF\OLQGHURYHUKHDGYDOYH
6KDSHRIFRPEXVWLRQFKDPEHU 'LUHFWLQMHFWLRQW\SH
&\OLQGHUOLQHUW\SH 1ROLQHU
&\OLQGHUERUH[VWURNH PP^LQ`îPP^LQ`
'LVSODFHPHQW /^FXLQ`
&RPSUHVVLRQUDWLR
&RPSUHVVLRQSUHVVXUH 㸸03D^NJIFPSVL`UPLQ
,GOLQJVSHHG UPLQ
,QWDNH 㸸PP^LQ`:KLOHFRRO
9DOYHFOHDUDQFH
([KDXVW 㸸PP^LQ`:KLOHFRRO
,JQLWLRQPHWKRG &RPSUHVVLRQLJQLWLRQ
,QMHFWLRQRUGHU
/XEULFDWLRQV\VWHP
/XEULFDWLRQW\SH &RPSUHVVLRQW\SH
2LOSXPSW\SH *HDUW\SH
/XEULFDWLRQRLODPRXQW 㸸/^86JDO,PSJDO`0$;
2LOSDQFDSDFLW\ 㸸/^86JDO,PSJDO`0,1
2LOILOWHUW\SH &RPELQHGW\SH
2LOFRROLQJW\SH %XLOWLQW\SHZDWHUFRROHG
&RROLQJV\VWHP
&RROLQJW\SH :DWHUFRROLQJ
:DWHUSXPSW\SH &HQWULIXJDOW\SHEHOWW\SH
7KHUPRVWDWW\SH :D[W\SHXQLW
7KHUPRVWDWYDOYHRSHQYDOYHWHPSHUDWXUH 㸸℃^)`
&RRODQWFDSDFLW\ 㸸/^86JDO,PSJDO`(QJLQHRQO\
)XHOV\VWHP
,QMHFWLRQSXPSW\SH (OHFWURQLFFRQWUROFRPPRQUDLOIXHOUDLOW\SH
*RYHUQRUW\SH (OHFWURQLFW\SH
7LPHUW\SH (OHFWURQLFW\SH
0XOWLKROHW\SH
,QMHFWLRQQR]]OHW\SH
KROH
&KDUJLQJV\VWHP
*HQHUDWRUW\SH $&W\SH
2XWSXW 㸸9$
5HJXODWRUW\SH ,&
6WDUWHUV\VWHP
6WDUWHUW\SH 5HGXFWLRQW\SH
2XWSXW 㸸9NZ
3UHKHDWV\VWHP
3UHKHDWV\VWHPW\SH *ORZSOXJ
*ORZSOXJVWDQGDUGYROWDJHFXUUHQW 㸸9$5HIHUHQFH
%0DLQWHQDQFH,QIRUPDWLRQ/(
3ULPDU\VSHFLILFDWLRQVRIFRROLQJV\VWHP
,WHP 6SHFLILFDWLRQV
:DWHUSXPS &HQWULIXJDOLPSHOOHUPHWKRG
7KHUPRVWDW :D[SHOOHWW\SH
2SHQYDOYHWHPSHUDWXUH 㸸℃^)`:LWKMLJJOHYDOYH
)XOORSHQWHPSHUDWXUH 㸸℃^)`:LWKMLJJOHYDOYH
9DOYHOLIWDPRXQWZKHQIXOO\RSHQHG 㸸PRUHWKDQPP^PRUHWKDQLQ`
3ULPDU\VSHFLILFDWLRQVRIHOHFWULFDOV\VWHP
*HQHUDWRU
,WHP 6SHFLILFDWLRQV
,VX]XSDUWQXPEHU
1RPLQDORXWSXW 㸸9$
5DWHGVSHHG UPLQ
5HJXODWRUW\SH ,&W\SH
5HJXODWHGYROWDJH 㸸WR9
:HLJKW 㸸NJ^OE`
6WDUWHU
,WHP 6SHFLILFDWLRQV
7\SH0DQXIDFWXUHU 0LWVXELVKL
9ROWDJH 㸸9
5DWLQJ 2XWSXW 㸸N:
+RXUV 㸸V
1XPEHURISLQLRQWHHWK
5RWDWLRQDOGLUHFWLRQ)DFLQJWKHSLQLRQ 5LJKW
:HLJKW$SSUR[ 㸸NJ^OE`
&XUUHQWYROWDJH 㸸OHVVWKDQ$9
1RORDGFKDUDFWHULVWLF
5HYROXWLRQVSHHG UPLQRUPRUH
&XUUHQWYROWDJH 㸸$9
/RDGFKDUDFWHULVWLF 7RUTXH 㸸PRUHWKDQ1࣭P^PRUHWKDQNJI࣭P`
5HYROXWLRQVSHHG UPLQRUPRUH
&XUUHQWYROWDJH 㸸OHVVWKDQ$9
/RFNLQJFKDUDFWHULVWLF
7RUTXH 㸸PRUHWKDQ1࣭P^PRUHWKDQNJI࣭P`
*ORZSOXJ
,WHP 7\SH
3UHKHDWGHYLFHPRGHO *ORZSOXJ
*ORZSOXJUDWHGYROWDJHFXUUHQW 㸸9$5HIHUHQFH
0DLQWHQDQFH,QIRUPDWLRQ/(%
)XQFWLRQ6WUXFWXUH2SHUDWLRQ
(QJLQHQXPEHU
(QJLQHW\SHVWDPSLQJ (QJLQHQXPEHUVWDPSLQJ
)XQFWLRQ6WUXFWXUH2SHUDWLRQ &UDQNVKDIW
'RQRWUHXVHWKHFUDQNVKDIWE\JULQGLQJDVLWKDVD
'HVFULSWLRQRIIXQFWLRQVDQGRSHUDWLRQV
WXIIWULGLQJVXUIDFHWUHDWPHQWDSSOLHG,IDSUREOHPLV
(QJLQHHOHFWURQLFFRQWURO IRXQGUHSODFHZLWKDQHZRQH
7KHFRQWUROSURYLGHGE\WKHFRQWUROXQLWDSSOLHVWRWKH
(*5V\VWHP
UDQJHIURPLQMHFWLRQWRDLULQWDNHDQGH[KDXVWLQFOXGLQJ
7KH(*5V\VWHPLVFRQWUROOHGE\WKHHQJLQHFRQWURO
IXHOLQMHFWLRQTXDQWLW\LQMHFWLRQWLPLQJDLULQWDNH
PRGXOH(&0DFFRUGLQJWRYDULRXVGDWDLQFOXGLQJWKH
UHVWULFWLRQ(*5DQGLGOLQJVSHHG
ZDWHUWHPSHUDWXUHHQJLQHVSHHGDQGHQJLQHORDGWR
&UDQNVKDIW UHFLUFXODWHWKHH[KDXVWJDVIRUSXULILFDWLRQ
'RQRWUHXVHWKHFUDQNVKDIWE\JULQGLQJDVLWKDVEHHQ 7KHSULPDU\FRPSRQHQWVDUHWKH(*5YDOYH(*5FRROHU
DSSOLHGZLWKDWXIIWULGLQJVXUIDFHWUHDWPHQW,IDSUREOHP DQGYDULRXVVHQVRUV
LVIRXQGUHSODFHZLWKDQHZRQH
&RQQHFWLQJURGFDSEROW
3LVWRQ 7KHDQJOHWLJKWHQLQJPHWKRGKDVEHHQDGRSWHGIRUWKH
7KHSLVWRQLVDVWUXWFDVWWKHUPDOIORZSLVWRQPDGHRI FRQQHFWLQJURGFDSEROWWRIXUWKHULPSURYHLWVUHOLDELOLW\
DOXPLQXPDOOR\DQGWKHFRPEXVWLRQFKDPEHULVWKH DQGGXUDELOLW\
URXQGUHHQWUDQWW\SH
&RPPRQUDLOIXHOUDLOW\SHHOHFWURQLFFRQWUROLQMHFWLRQ
&\OLQGHUKHDG V\VWHP
7KHF\OLQGHUKHDGLVPDGHRIFDVWLURQDQGKDVWZRYDOYHV 7KHFRPPRQUDLOIXHOUDLOW\SHHOHFWURQLFFRQWURO
SHUHDFKF\OLQGHU7KHDQJOHWLJKWHQLQJPHWKRGKDVEHHQ LQMHFWLRQV\VWHPFRQVLVWVRIWKHIXHOVXSSO\SXPSWKDW
DGRSWHGIRUWKHF\OLQGHUKHDGEROWWRIXUWKHULPSURYHLWV VHWVWKHWDUJHWSUHVVXUHRIKLJKSUHVVXUHIXHOWRVXSSO\WKH
UHOLDELOLW\DQGGXUDELOLW\ IXHOWKHFRPPRQUDLOIXHOUDLOWKDWPHDVXUHVWKHKLJK
%0DLQWHQDQFH,QIRUPDWLRQ/(
SUHVVXUHIXHODQGWKHIXHOLQMHFWRUWKDWLQMHFWVWKHIXHOLQ ZDWHUDQGQRWLILHVWKHRSHUDWRUWKURXJKWKHLQGLFDWRU
WKHIRUPRIDILQHPLVW(DFKRIWKHVHLVFRQWUROOHGE\WKH ZKHQLWEHFRPHVIXOORIZDWHU
(&0EDVHGRQYDULRXVVLJQDOVWRFRQWUROWKHLQMHFWLRQ
3UHKHDWV\VWHP
WLPLQJDQGLQMHFWLRQDPRXQWLQDFFRUGDQFHZLWKWKH
7KHSUHKHDWV\VWHPFRQVLVWVRIWKH(&0WKHJORZUHOD\
GULYLQJFRQGLWLRQ
WKHJORZSOXJDQGWKHJORZLQGLFDWRUOLJKW7KHSUHKHDW
)XHOLQMHFWRU V\VWHPLVDFWLYDWHGZKHQWKHHQJLQHFRRODQWWHPSHUDWXUH
7KHIXHOLQMHFWRUKDVDGRSWHGWKHKROHQR]]OHDQG LVORZVRDVWRKHOSHQJLQHVWDUW
DGMXVWVWKHIXHOLQMHFWLRQTXDQWLW\DQGLQMHFWLRQWLPLQJE\
/XEULFDWLRQV\VWHP
RSHQLQJRUFORVLQJWKHHOHFWURPDJQHWLFYDOYHRQWKH
$QRLOILOWHUZLWKDIXOOIORZE\SDVVLVXVHGDQGWKH
LQMHFWRUKHDGSRUWLRQ
SLVWRQVDUHFRROHGGRZQXVLQJWKHZDWHUFRROHGRLOFRROHU
7KH(&0FRUUHFWVYDULDWLRQLQWKHIXHOLQMHFWLRQTXDQWLW\
DQGWKHRLOMHW
IURPIXHOLQMHFWRUWRIXHOLQMHFWRULQDFFRUGDQFHZLWKWKH
,'FRGHGDWDLQWKHPHPRU\:KHQDGMXVWLQJWKHIXHO )XHOV\VWHP
LQMHFWRUWKH,'FRGHGDWHPXVWEHUHFRUGHGLQWKH(&0
)XHOV\VWHPGLDJUDP
)XHOILOWHUZLWKVHGLPHQWHU
7KHIXHOILOWHUZLWKVHGLPHQWHUUHPRYHVZDWHUE\XVLQJ
WKHGLIIHUHQFHLQWKHVSHFLILFJUDYLW\RIGLHVHORLODQG
(OHFWURPDJQHWLFSXPS )XHOWDQN
)XHOILOWHU )XHOUHWXUQSLSH
&RPPRQUDLOIXHOUDLO 3UHIXHOILOWHU
)XHOLQMHFWRU
6XSSO\SXPS
)53VHQVRU 3UHVVXUHOLPLWHU
)XHOVXSSO\SXPS
%0DLQWHQDQFH,QIRUPDWLRQ/(
)XHOWHPSHUDWXUHVHQVRU &DPVKDIWNH\
6XFWLRQFRQWUROYDOYH
+LJKSUHVVXUHSLSH
&DXWLRQ㸸
࣭ 7KHUHLVDJDX]HILOWHUDVVHPEOHGLQVLGHWKH
XQLRQRIWKHIXHOVXSSO\SXPSEXWWKHXQLRQ
VKRXOGQRWEHUHPRYHGVRDVWRSUHYHQWDQ\
IRUHLJQPDWHULDOIURPHQWHULQJ
0DLQWHQDQFH,QIRUPDWLRQ/(%
,'SODWH
'EDUFRGH
,QMHFWRU
)XHOLQOHW
)XHOILOWHU
8QLRQ
*DX]HILOWHU
6XSSO\SXPS
6WUDLQHU
-RLQWEROW
,QMHFWRU
3ULPLQJSXPS
3OXJ
&DVH
'UDLQSOXJ
&RROLQJV\VWHP
7KHFRRODQWV\VWHPLVDIRUFHGFLUFXODWLRQV\VWHPDQGLWV
PDLQFRPSRQHQWVDUHWKHZDWHUSXPSWKHWKHUPRVWDWDQG
WKHUDGLDWRU
%0DLQWHQDQFH,QIRUPDWLRQ/(
7KHUPRVWDW :DWHUSXPS
2LOFRROHU 5DGLDWRU
(*5FRROHU %\SDVVSDWKZD\
&\OLQGHUKHDG
&\OLQGHUEORFN
:DWHUSXPS 7KHZDWHUSXPSLVDFHQWULIXJDOLPSHOOHUW\SHSXPSDQG
LVGULYHQE\WKHHQJLQHIDQEHOW
0DLQWHQDQFH,QIRUPDWLRQ/(%
)DQFHQWHU %HDULQJXQLW
,PSHOOHU
6HDOXQLW
7KHUPRVWDW RI&^)`DQGLWLVDVVHPEOHGLQVLGHWKH
7KHWKHUPRVWDWLVDZD[SHOOHWW\SH7KHXQLWLVWKH WKHUPRVWDWKRXVLQJXQLW
ERWWRPE\SDVVW\SHZLWKDQLQLWLDORSHQYDOYHWHPSHUDWXUH
%0DLQWHQDQFH,QIRUPDWLRQ/(
9DOYH -LJJOHYDOYH
3LVWRQ
/XEULFDWLRQW\SH $IXOOIORZE\SDVVLQWHJUDWHGILOWHUHOHPHQWZDWHU
FRROLQJRLOFRROHUDQGSLVWRQFRRODQWRLOMHWDUHDGRSWHG
IRUWKHOXEULFDWLRQV\VWHP
0DLQWHQDQFH,QIRUPDWLRQ/(%
([KDXVWV\VWHP
%0DLQWHQDQFH,QIRUPDWLRQ/(
,QWHJUDWHGR[LGDWLRQFDWDO\VWVLOHQFHU
(PLVVLRQFRQWUROGHYLFH 7KH(*5RSHUDWHVZKHQWKHHQJLQHVSHHGHQJLQHFRRODQW
WHPSHUDWXUHLQWDNHWHPSHUDWXUHDQGEDURPHWULFSUHVVXUH
(*5
VDWLVI\FHUWDLQFULWHULD7KHQWKHYDOYHRSHQLQJDQJOHLV
7KH(*5V\VWHPUHFLUFXODWHVDSDUWRIWKHH[KDXVWJDVWR
REWDLQHGEDVHGRQHQJLQHVSHHGDQGWKHWDUJHWIXHO
WKHLQWDNHFKDPEHUDQGWKHJHQHUDWLRQRI12[LV
LQMHFWLRQTXDQWLW\)URPWKLVYDOYHRSHQLQJDQJOHPRWRU
VXSSUHVVHG%\FRQWUROOLQJWKH(*5V\VWHPKLJK
GULYHGXW\LVGHWHUPLQHGEDVHGRQZKLFKWKHYDOYHLV
RSHUDELOLW\DQGH[KDXVWJDVUHGXFWLRQDUHERWKDFKLHYHG
GULYHQ
7KHFRQWUROFXUUHQWIURPWKH(&0DFWLYDWHVWKHVROHQRLG
WRFRQWUROWKH(*5YDOYHOLIWDPRXQW7KH(*5SRVLWLRQ
VHQVRUGHWHFWVWKHDFWXDOYDOYHOLIWDPRXQWDQGWKHGDWDLV
XVHGIRUSUHFLVHFRQWURORIWKH(*5DPRXQW
0DLQWHQDQFH,QIRUPDWLRQ/(%
(*5FRROHU (&0
&RRODQWRXWOHW %RRVWSUHVVXUHVHQVRUERRVWWHPSHUDWXUHVHQVRU
&RRODQWLQOHW
(*5YDOYH
(OHFWULFDOV\VWHP ,QDGGLWLRQVPDOOGLRGHVWKDWDUHUHIHUUHGWRDVWULR
GLRGHDUHXVHGWRVXSSO\WKHILHOGFXUUHQW
&KDUJLQJV\VWHP
7KLVJHQHUDWRUKDVWHUPLQDOVWKH%WHUPLQDOGLUHFW
7KHPDLQFRPSRQHQWVRIWKHFKDUJLQJV\VWHPDUHWKH
FXUUHQWRXWSXWWHUPLQDOWKH/WHUPLQDODQGWKH5
EDWWHU\WKHJHQHUDWRUDQGWKHEDWWHU\GLVFKDUJHLQGLFDWRU
WHUPLQDO
OLJKWFLUFXLW7KHJHQHUDWRULVWKHVHOIUHFWLILHUW\SHZLWKD
6LQFHWKH/WHUPLQDOLVFRQQHFWHGWRWKHILHOGFRLOLW
UHJXODWRUEXLOWLQ
ZRUNVDVDQLQSXWWHUPLQDORIWKHLQLWLDOH[FLWDWLRQFXUUHQW
*HQHUDWRU WRJHWKHUZLWKWKH5WHUPLQDOXQWLOWKHJHQHUDWRUVWDUWV
7KHJHQHUDWRULVWKHEUXVKOHVVW\SH JHQHUDWLQJSRZHU
7KHPDLQFRPSRQHQWVLQFOXGHWKHUROOHUWKHUHFWLILHU $OVRLWIXQFWLRQVDVDQRXWSXWWHUPLQDO&XUUHQWFDSDFLW\
DVVHPEO\WKHIURQWEUDFNHWWKHUHDUEUDFNHWWKH,& LV$:KHQWKH/WHUPLQDOYROWDJHUHDFKHVWKHEDWWHU\
UHJXODWRUWKHEHDULQJDQGWKHSXOOH\ YROWDJHWKHFKDUJHOLJKWWXUQV2))
7KHPRYLQJSDUWVDUHWKHUROOHUDQGWKHSXOOH\7KHILHOG 6LQFHWKHERWKEHDULQJVDUHVHDOHGSHULRGLFOXEULFDWLRQLV
FRLOLVIL[HGWRWKHUHDUEUDFNHW QRWUHTXLUHG
PDLQGLRGHVDQGDGGLWLRQDOGLRGHVDUHXVHGWRFKDQJH 7KH,&UHJXODWRUFDQQRWEHGLVDVVHPEOHGVRLWVKRXOGEH
WKHWKUHHSKDVHDOWHUQDWLQJFXUUHQWJHQHUDWHGLQWKHVWDWRU KDQGOHGDVDQDVVHPEO\
FRLOWRDGLUHFWFXUUHQW
RXWRIWKHPDLQGLRGHVDUHUHIHUUHGWRDVSRVLWLYH
GLRGHVDQGWKHUHVWDUHUHIHUUHGWRDVQHJDWLYHGLRGHV
%0DLQWHQDQFH,QIRUPDWLRQ/(
6WDUWHUV\VWHP WKDQWKHSLQLRQWKHSLQLRQLVFDXVHGWRWXUQLQUHYHUVH
7KHVWDUWHULVN:DQGLVWKHUHGXFWLRQW\SH EXWWKHSLQLRQMXVWLGOHVGXHWRWKHRQHZD\FOXWFK
7KHJHDUKRXVLQJDQGWKHDUPDWXUHHQGEHDULQJKRXVLQJ IXQFWLRQVRWKHDUPDWXUHLVQRWGULYHQ
DUHPDGHRIDOXPLQXP%UXVKDVVHPEO\LVWKHUHSODFHDEOH
3UHKHDWV\VWHP
W\SH
7KHSUHKHDWV\VWHPDGRSWVWKHJORZSOXJW\SH426
7KHVWDUWHUFLUFXLWLVVWDUWHGXVLQJWKHEDWWHU\
V\VWHP7KHHQHUJL]DWLRQLVFRQWUROOHGE\WKH(&0
7KHEDWWHU\FDEOHLVFRQQHFWHGWRDODUJHWHUPLQDORQWKH
VWDUWHU (QJLQHFRQWUROV\VWHP
7KHZLULQJLVFRQQHFWHGIURPWKHWHUPLQDOWRWKHHQJLQH
7KHHQJLQHFRQWUROV\VWHPLVDQHOHFWURQLFFRQWUROV\VWHP
FRQWUROVZLWFKDQGWKHVWDUWHUUHOD\
WKDWFRQWUROVWKHHQJLQHVRDVWREHDOZD\VLQWKHRSWLPDO
6WDUWHU FRPEXVWLRQVWDWHDFFRUGLQJWRWKHGULYLQJFRQGLWLRQDQG
7KHVWDUWHULVDPDJQHWLFVKLIWW\SHVWDUWHUDQGLVDQRXWHU FRQVLVWVRIWKHHOHFWURQLFFRQWUROIXHOLQMHFWLRQV\VWHP
JHDULQJPHVKPHWKRGUHGXFWLRQVWDUWHU WKH(*5DQGWKHLGOLQJFRQWURO
:KHQWKHLJQLWLRQVZLWFKLVWXUQHG21WKHSOXQJHULV $OVREHVLGHVFRQWUROOLQJWKHHQJLQHWKHHQJLQHFRQWURO
GUDZQLQWKHFRQWDFWSRLQWRIWKHPDJQHWLFVZLWFKFORVHV V\VWHPKDVWKH426V\VWHPWKHHQJLQHVSHHGVLJQDO
DQGWKHDUPDWXUHURWDWHV$WWKHVDPHWLPHWKHSLQLRQLV RXWSXWWKHVHOIGLDJQRVLQJIXQFWLRQDQG&$1
SXVKHGWRWKHIURQWYLDWKHVKLIWOHYHUWRPHVKZLWKWKH FRPPXQLFDWLRQ6$(-DQG6$(-V\VWHP
ULQJJHDU:KHQWKHULQJJHDUURWDWHVWKHFUDQNVKDIWLV FRQWUROIXQFWLRQV
WXUQHGWRVWDUWWKHHQJLQH$IWHUWKHHQJLQHVWDUWVWKH
6\VWHPFRQWUROVFKHPDWLF
SOXQJHUUHWXUQVWKHSLQLRQVHSDUDWHVIURPWKHULQJJHDU
7KHVSHFLILFDWLRQVYDU\GHSHQGLQJRQWKHPDFKLQHVR
DQGWKHDUPDWXUHVWRSVURWDWLQJZKHQWKHLJQLWLRQVZLWFK
UHIHUWRWKHPDQXDORIWKHPDFKLQH
LVWXUQHG2)):KHQWKHHQJLQHVSHHGEHFRPHVIDVWHU
0DLQWHQDQFH,QIRUPDWLRQ/(%
)XHOLQMHFWLRQFRUUHFWLRQ
7KH(&0FDOFXODWHVWKHEDVLFLQMHFWLRQTXDQWLW\EDVHGRQ
WKHVLJQDOVIURPWKHDFFHOHUDWRUSRVLWLRQVHQVRUERRVW
VHQVRU&.3VHQVRU&03VHQVRUHWF$WWKLVWLPHWKH
RSHQRUFORVHWLPLQJRIWKH6&9DQGWKHHQHUJL]LQJWLPH
RIWKHLQMHFWRUDUHFRQWUROOHGEDVHGRQWKHFRQGLWLRQVVXFK
DVWKHFRPPRQUDLOIXHOUDLOSUHVVXUHDQGHQJLQHFRRODQW
WHPSHUDWXUHWRPDNHRSWLPDOFRUUHFWLRQVWRWKHLQMHFWLRQ
WLPLQJDQGWKHLQMHFWLRQTXDQWLW\
$ERXWWKHLQLWLDOIXHOGHOLYHU\UDWH
7KH(&0LPSOHPHQWVWKHLQLWLDOIXHOGHOLYHU\UDWHZKHQ
WKHLQLWLDOIXHOGHOLYHU\UDWHLVOHVVWKDQWKHVSHFLILHG
HQJLQHVSHHGZKHQWKHHQJLQHLVVWDUWHG$OVRWKH(&0
FDQQRWLPSOHPHQWWKHLQLWLDOIXHOGHOLYHU\UDWHDQGFDQQRW
VWDUWWKHHQJLQHEHFDXVHLWGRHVQRWUHFRJQL]HWKHHQJLQH
VSHHGZKHQLWLVOHVVWKDQDQHQJLQHVSHHGWKHV\VWHPFDQ
UHFRJQL]H
$ERXWKLJKDOWLWXGHFRUUHFWLRQ
%0DLQWHQDQFH,QIRUPDWLRQ/(
7KH(&0FDOFXODWHVWKHFXUUHQWDOWLWXGHXVLQJVLJQDOV ,IWKH(&0LVHTXLSSHGZLWKDQHPHUJHQF\VWRSIXQFWLRQ
IURPWKHEDURPHWULFSUHVVXUHVHQVRU E\DKLJKHQJLQHFRRODQWWHPSHUDWXUHLWVWRSVWKHHQJLQH
$FFRUGLQJWRFRQGLWLRQVVXFKDVWKHFXUUHQWDOWLWXGHWKH ZKHQWKHWHPSHUDWXUHUHDFKHVDVHWWHPSHUDWXUH
IXHOIORZUDWHLVFRUUHFWHGSURSHUO\
(QJLQHHPHUJHQF\VWRSIXQFWLRQ
&RQWUROGXULQJRYHUKHDW 7KH(&0LVGHVLJQHGWRPDNHDQHPHUJHQF\HQJLQHVWRS
7RSURWHFWWKHHQJLQHUHVWULFWLRQRQIXHOIORZLVVWDUWHG ZKHQWKHUHLVDQLQSXWIURPWKHHQJLQHVWRSVZLWFKZKHQ
ZKHQWKHHQJLQHFRRODQWWHPSHUDWXUHH[FHHGVWKHVHW WKHUHLVDGHFUHDVHLQWKHHQJLQHRLOSUHVVXUHRUZKHQDQ
WHPSHUDWXUH:KHQWKHHQJLQHFRRODQWWHPSHUDWXUH LQFUHDVHLQWKHHQJLQHFRRODQWWHPSHUDWXUHRUDQRYHUUXQ
LQFUHDVHVIXUWKHUWKHIXHOIORZLVDOVRUHVWULFWHGIXUWKHU RFFXUV
:KHQWKHWHPSHUDWXUHUHDFKHVWKHFHUWDLQYDOXHD'7&LV )RUDQHPHUJHQF\VWRSPDGHGXHWRDGHFUHDVHLQWKH
VHWDQGDIDLOXUHLVUHFRUGHGLQWKH(&0$IWHUWKH'7&LV HQJLQHRLOSUHVVXUHDQLQFUHDVHLQWKHHQJLQHFRRODQW
VHWWKHIXHOIORZLVUHVWULFWHGWRDFHUWDLQOHYHOLIWKH WHPSHUDWXUHRUDQRYHUUXQWKHFRQWUROLVSHUIRUPHGZKHQ
HQJLQHFRRODQWWHPSHUDWXUHLQFUHDVHVIXUWKHU WKHFRUUHVSRQGLQJIXQFWLRQLVDGGHGWRWKHFDOLEUDWLRQRI
7KHPDFKLQHLVGHVLJQHGWRLVVXHDQDODUPEHIRUHD'7& WKH(&0
LVVHWE\WKHPDFKLQH%\UHGXFLQJWKHORDGDSSOLHGWRWKH
,QSXWIURPWKHHQJLQHVWRSVZLWFK
PDFKLQHXSRQDODUPLVVXDQFHLWLVSRVVLEOHWRDYRLGDQ
7KHHQJLQHVWRSVZKHQWKHEDWWHU\YROWDJHLVDSSOLHGWR
RSHUDWLRQFRQGLWLRQZKHUHIXHOIORZLVUHVWULFWHG
(&0WHUPLQDO1R
1RWH㸸
࣭ 7KHVHWWLQJYDULHVGHSHQGLQJRQWKHPDFKLQH
PDQXIDFWXUHU
7KHLJQLWLRQVZLWFKLV21
(QJLQHVWRSVZLWFK
0DLQWHQDQFH,QIRUPDWLRQ/(%
'HFUHDVHLQHQJLQHRLOSUHVVXUH 2YHUUXQ
:KHQWKHHQJLQHRLOSUHVVXUHGURSVEHORZWKHVSHFLILHG :KHQWKHHQJLQHVSHHGUHDFKHVDVSHFLILHGYDOXHDQ
YDOXHDQDODUPIRUWKHHQJLQHRLOSUHVVXUHGHFUHDVHLV DODUPIRURYHUUXQLVLVVXHGDQGWKHHQJLQHLVVWRSSHG
LVVXHGDIWHUZKLFKWKHHQJLQHLVVWRSSHG 7KHVSHFLILHGYDOXHYDULHVGHSHQGLQJRQWKHPDFKLQH
PDQXIDFWXUHU
,QFUHDVHLQHQJLQHFRRODQWWHPSHUDWXUH
:KHQWKHHQJLQHFRRODQWWHPSHUDWXUHULVHVWRPRUHWKDQ ,27DEOH
WKHVSHFLILHGYDOXHDQDODUPIRUHQJLQHFRRODQW
WHPSHUDWXUHLQFUHDVHLVLVVXHGDIWHUZKLFKWKHHQJLQHLV
VWRSSHG
(OHFWURQLFFRQWUROIXHOLQMHFWLRQV\VWHP ,QMHFWLRQTXDQWLW\FRQWURO
7KLVLVWKHV\VWHPLQZKLFKWKH(&0REWDLQVLQIRUPDWLRQ 7RRSWLPL]HWKHLQMHFWLRQTXDQWLW\WKHIXHOLQMHFWLRQ
VXFKDVHQJLQHVSHHGDQGHQJLQHORDGDQGVHQGVWKH TXDQWLW\LVFRQWUROOHGE\UHJXODWLQJWKHLQMHFWRUEDVHG
HOHFWULFDOVLJQDOVEDVHGRQWKHLQIRUPDWLRQWRWKHVXSSO\ PDLQO\RQWKHVLJQDOVIURPWKHHQJLQHVSHHGDQGWKH
SXPSLQMHFWRUVHWFWRSURSHUO\FRQWUROWKHIXHOLQMHFWLRQ DFFHOHUDWRURSHQLQJDQJOHRUWKHLQVWUXFWHGURWDWLRQIURP
TXDQWLW\DQGWKHLQMHFWLRQWLPLQJIRUHDFKF\OLQGHU WKHFRQWUROXQLWLQWKHPDFKLQH
%0DLQWHQDQFH,QIRUPDWLRQ/(
,QMHFWLRQSUHVVXUHFRQWURO VHFRQGLQMHFWLRQLVSHUIRUPHGZKHQLJQLWLRQLVPDGH
7KHLQMHFWLRQSUHVVXUHLVFRQWUROOHGE\UHJXODWLQJWKHIXHO 7KLVFRQWUROIRULQMHFWLRQWLPLQJDQGLQMHFWLRQDPRXQWLV
SUHVVXUHLQVLGHWKHFRPPRQUDLOIXHOUDLO7KHSURSHU SHUIRUPHGE\UHJXODWLQJWKHLQMHFWRU
SUHVVXUHLQVLGHWKHFRPPRQUDLOIXHOUDLOLVFRQWUROOHG
0D[LPXPIXHOLQMHFWLRQTXDQWLW\
E\FDOFXODWLRQVPDGHIURPWKHHQJLQHVSHHGWKHIXHO
7KHPD[LPXPIXHOLQMHFWLRQTXDQWLW\LVWKHTXDQWLW\RI
LQMHFWLRQTXDQWLW\HWFDQGWKHDSSURSULDWHDPRXQWRI
IXHOLQMHFWLRQFDOFXODWHGE\DGMXVWPHQWRIWKHLQLWLDO
IXHOLVGLVFKDUJHGE\UHJXODWLQJWKHVXSSO\SXPSWREH
LQMHFWLRQTXDQWLW\XQGHUDFHUWDLQZDWHUWHPSHUDWXUHWKH
IRUFHIHGWRWKHFRPPRQUDLOIXHOUDLO
OLPLWDWLRQRIWKHPD[LPXPLQMHFWLRQTXDQWLW\IRUWKH
,QMHFWLRQWLPLQJFRQWURO ERRVWSUHVVXUHDQGWKHFRQWURORIWKHLQMHFWLRQTXDQWLW\
7KLVFRQWUROLVSHUIRUPHGE\FDOFXODWLQJWKHSURSHUIXHO IRUKLJKDOWLWXGHVDFFRUGLQJWREDURPHWULFSUHVVXUH
LQMHFWLRQWLPLQJPDLQO\IURPWKHHQJLQHVSHHGRUWKH
,QWHUF\OLQGHUFRUUHFWLRQ
LQMHFWLRQTXDQWLW\LQVXEVWLWXWLRQRIWKHWLPHUIXQFWLRQWR
,WLVQRWXVHGIRUWKLVHQJLQH
UHJXODWHWKHLQMHFWRU
6\VWHPVFKHPDWLF
,QMHFWLRQUDWHFRQWURO
7RLPSURYHFRPEXVWLRQLQVLGHWKHF\OLQGHURQO\DVPDOO
DPRXQWRIIXHOLVLQMHFWHGILUVWWREHLJQLWHGDQGWKHQWKH
0DLQWHQDQFH,QIRUPDWLRQ/(%
(OHFWURPDJQHWLFSXPS )XHOWDQN
)XHOILOWHU )XHOUHWXUQSLSH
6XSSO\SXPS 3UHIXHOILOWHU
&RPPRQUDLOIXHOUDLO
)XHOLQMHFWRU
)XHOILOWHUFORJZDUQLQJIXQFWLRQDQGHQJLQHVSHHG PDLQWDLQLQJWKHUHVWULFWHGHQJLQHVSHHGDWWKDWWLPH
UHVWULFWLRQIXQFWLRQ :KHQWKHRXWSXWYDOXHIURPWKHVHQVRUIDOOVEHORZWKH
:KHQXVHRIDFORJJHGIXHOILOWHULVFRQWLQXHGWKH(&0 WKUHVKROGYDOXHDJDLQWKHUHVWULFWHGHQJLQHVSHHGLV
GHWHFWV'7&3DQGDQRXWSXWUHVWULFWLRQLV UHGXFHGIXUWKHU:KHQWKHLJQLWLRQVZLWFKLVWXUQHG2))
LPSOHPHQWHG DQGWKHQWXUQHGEDFN21WKHUHVWULFWLRQLVFDQFHOHGRQFH
)LUVWVWDJH
,QRUGHUWRQRWLI\RIDILOWHUFORJJLQJEHIRUH'7&3
LVVHWWKHILUVWVWDJHDODUPLVLVVXHGZKHQWKHRXWSXWYDOXH
IURPWKHIXHOILOWHUSUHVVXUHVHQVRULVOHVVWKDQWKH
VSHFLILHGWKUHVKROGYDOXH6WRSWKHDODUPZKHQWKHRXWSXW
YDOXHH[FHHGVWKHWKUHVKROGYDOXH
6HFRQGVWDJH
7KHVHFRQGVWDJHDODUPLVLVVXHGZKHQWKHRXWSXWYDOXH
IURPWKHIXHOILOWHUSUHVVXUHVHQVRULVOHVVWKDQWKH
WKUHVKROGYDOXHHYHQDIWHUWKHILUVWVWDJHDODUPRFFXUV
7KHVHFRQGVWDJHDODUPUHPDLQVDVLVVXHGXQWLOWKH
LJQLWLRQVZLWFKLVWXUQHG2))
$WWKHVDPHWLPHDVWKHVHFRQGVWDJHDODUPLVLVVXHGWKH
WDUJHWHQJLQHVSHHGLVUHGXFHGJUDGXDOO\DWDFRQVWDQW
UDWH:KHQWKHRXWSXWYDOXHIURPWKHVHQVRUH[FHHGVWKH
VSHFLILHGWKUHVKROGYDOXHUHGXFWLRQRIWKHUHVWULFWHG
HQJLQHVSHHGLVVWRSSHGDQGWKHUHJXODWLRQLVFRQWLQXHG
0DLQWHQDQFH,QIRUPDWLRQ/(%
6XSSO\SXPS 3UHIXHOILOWHU
:DUQLQJOLJKW (OHFWURPDJQHWLFSXPS
0RQLWRU )XHOILOWHUSUHVVXUHVHQVRU
0RQLWRU&$1FRPPXQLFDWLRQ 0DLQILOWHU
)XHOWDQN
)LUVWVWDJH 6HFRQGVWDJH
5HPRYLQJDLUIURPWKHIXHOV\VWHP :DLWIRUDSSUR[PLQXWHDQGWKHQORRVHQWKHSOXJWR
3ODFHDQDSSURSULDWHSDQXQGHUWKHDLUUHPRYDOSOXJ UHPRYHWKHDLULQWKHIXHOILOWHU7KLVVKRXOGEHUHSHDWHG
7XUQWKHLJQLWLRQVZLWFK21DQGDFWLYDWHWKH DWOHDVWWLPHVXQWLOQRDLUFRPHVRXWIURPWKHSOXJ
HOHFWURPDJQHWLFSXPS 6HFXUHO\WLJKWHQHDFKSOXJDQGZLSHRIIWKHIXHOVSLOOHG
/RRVHWKHDLUUHPRYDOSOXJRIWKHIXHOILOWHUVXIILFLHQWO\ DURXQG2SHUDWHWKHSULPLQJSXPSWLPHVXQWLOWKH
DQGRSHUDWHWKHSULPLQJSXPSWLPHVRUPRUHXQWLOWKH IXHOSHUPHDWHVDQGWKHQLVIHGWRWKHHQJLQH
IXHOFRPHVRXWIURPQHDUWKHSOXJ
7LJKWHQWKHSOXJDQGRSHUDWHWKHSULPLQJSXPSWLPHV
RUPRUHXQWLOWKHIXHOSHUPHDWHV
%0DLQWHQDQFH,QIRUPDWLRQ/(
3UHIXHOILOWHU 6XSSO\SXPS
(OHFWURPDJQHWLFSXPS )XHOWDQN
(OHFWURPDJQHWLFSXPSHTXLSPHQWPDFKLQH
)XHOILOWHU
(*5 'DUNHUSRUWLRQVLQWKHGLDJUDPUHSUHVHQWODUJHYDOYHOLIW
7KH(*5V\VWHPUHFLUFXODWHVDSDUWRIWKHH[KDXVWJDVWR DPRXQWVDQGWKHGDUNHVWSRUWLRQUHSUHVHQWVWKHOLIW
WKHLQWDNHFKDPEHUDQGE\PL[LQJLQLQHUWJDVWRWKH DPRXQWRIQHDUO\PD[LPXP
LQWDNHDLUWKHFRPEXVWLRQWHPSHUDWXUHLVORZHUHGDQGWKH
JHQHUDWLRQRI12[LVVXSSUHVVHG
7KH(*5DPRXQWLVFRQWUROOHGE\RSHQLQJDQGFORVLQJ
WKH(*5YDOYHSURYLGHGEHWZHHQWKHH[KDXVWPDQLIROG
DQGLQWDNHFKDPEHU7KH(*5DPRXQWLVGHWHUPLQHGIURP
WKHHQJLQHVSHHGDQGHQJLQHORDGUDWLRDQGWKH(*5
YDOYHLVRSHUDWHGWRFRQWUROWKH(*5DPRXQW
%\SURYLGLQJWKH(*5FRROHURQWKHSDWKRIWKH(*5JDV
KLJKWHPSHUDWXUH(*5JDVLVFRROHGE\WKH(*5FRROHU
DQGWKHQPL[HGZLWKDLUWRIXUWKHUORZHUWKHFRPEXVWLRQ
WHPSHUDWXUHLQRUGHUWRUHGXFH12[DPRXQW
)XUWKHUWKH(*5V\VWHPLVDOVRHTXLSSHGZLWKDFKHFN
YDOYHWRSUHYHQWWKH(*5IURPIORZLQJLQWKHRSSRVLWH
GLUHFWLRQWRLQFUHDVHWKH(*5DPRXQW
(*5FRQWURO
7KH(&0FRQWUROVWKH(*5YDOYHOLIWDPRXQWE\
RSHUDWLQJWKHPRWRUDFFRUGLQJWRWKHHQJLQHVWDWXVVXFK
DVGHSHQGLQJRQWKHHQJLQHVSHHGDQGHQJLQHORDG7KH
YDOYHOLIWDPRXQWLVGHWHFWHGE\WKH(*5SRVLWLRQVHQVRU (*5V\VWHPVFKHPDWLFGLDJUDP
0DLQWHQDQFH,QIRUPDWLRQ/(%
(*5FRROHU (&0
&RRODQWRXWOHW %RRVWSUHVVXUHVHQVRUERRVWWHPSHUDWXUHVHQVRU
&RRODQWLQOHW
(*5YDOYH
(QJLQHRSHUDWLRQFRQWURO
7KHUHDUHWKHIROORZLQJW\SHVRIRSHUDWLRQFRQWURO
LQVWUXFWLRQVDQGWKHVHOHFWLRQYDULHVGHSHQGLQJRQHDFK
VSHFLILFDWLRQ
9ROWDJHLQSXWE\$369
$FFHOHUDWRURSHQLQJDQJOHLQVWUXFWLRQJLYHQWKURXJK
&$1FRPPXQLFDWLRQFRQWUROVSHHGLQVWUXFWLRQ
6SHHGLQVWUXFWLRQJLYHQWKURXJKPRGHPDSVZLWFK
FRQWUROVSHHGLQVWUXFWLRQDQGFKDQJHLQVWUXFWLRQJLYHQE\
WKH$36
,QFUHDVHDQGGHFUHDVHLQVWUXFWLRQIRUHDFKURWDWLRQJLYHQ
E\LGOHVZLWFK
0RGHPDSVZLWFK
0RGHPDSVZLWFK
7KHPRGHPDSVZLWFKKDVURWDWLRQFRQWUROPRGHW\SHV
666///DQG/
///DQG/DUHWKHURWDWLRQFRQWUROPRGHVDQGFDQ
EHRSHUDWHGEHWZHHQWKHLGOLQJVSHHGDQGURWDWLRQ
0HDQLQJRIWKHPRGHPDSVZLWFKDQGHDFKPRGH
VHWWLQJV
,QHDFKPRGHRI///DQG/WKHHQJLQHVSHHGFDQ
66DQG6DUHWKHIL[HGURWDWLRQFRQWUROPRGHVDQG
EHFKDQJHGEHWZHHQWKHLGOLQJDQGURWDWLRQVHWWLQJVXVLQJ
FDQQRWEHFKDQJHGIURPWKH$36
WKH$36
7KHVHWURWDWLRQIRU///DQG/DUHGHWHUPLQHG
GHSHQGLQJRQWKHFDOLEUDWLRQRIWKH(&0
%0DLQWHQDQFH,QIRUPDWLRQ/(
0RGHPDSVZLWFKFRQWURO
2XWHUVZLWFK
2SHUDWLRQPRGH &RQWURO
0$3 0$3 0$3
67' 2)) 2)) 2)) %DVLFFRQWURO
6 21 2)) 2)) )L[HGURWDWLRQFRQWURO
6 21 21 2)) )L[HGURWDWLRQFRQWURO
6 21 21 21 )L[HGURWDWLRQFRQWURO
/ 2)) 21 2)) 0D[LPXPHQJLQHVSHHGUHVWULFWLRQFRQWURO
/ 2)) 21 21 0D[LPXPHQJLQHVSHHGUHVWULFWLRQFRQWURO
/ 2)) 2)) 21 0D[LPXPHQJLQHVSHHGUHVWULFWLRQFRQWURO
/ 21 2)) 21 0D[LPXPHQJLQHVSHHGUHVWULFWLRQFRQWURO
$FFHOHUDWRUSRVLWLRQVZLWFK $FFHOHUDWRUSRVLWLRQVZLWFKZLWK$36OHDUQLQJFRQWURO
%\RSHUDWLQJWKHDFFHOHUDWRUSRVLWLRQVZLWFKWKHRXWSXW ,IWKH$36OHDUQLQJFRQWUROLVDYDLODEOHZKHQWKHLJQLWLRQ
YROWDJHFKDQJHVEHWZHHQ9DQG9 F\FOHHQGVZLWKWKHDFFHOHUDWRUSRVLWLRQDV9WKH
9ROWDJHVEHWZHHQ9DQG9DUHUHFRJQL]HGDV DFFHOHUDWRUSRVLWLRQOHDUQLQJFDXVHVWKH9VWDWXVWREH
9:KHQWKHYROWDJHLVOHVVWKDQ9RUPRUHWKDQ UHFRJQL]HGDVWKHRSHQLQJDQJOHDQGWKHFRQWUROUDQJH
9DQHUURULVGHWHFWHG FKDQJHVIURP9WR9
0DLQWHQDQFH,QIRUPDWLRQ/(%
7KHVSHFLILFDWLRQVYDU\GHSHQGLQJRQWKHPDFKLQHVRWKH 'RZQ
DYDLODELOLW\RIIXQFWLRQVDOVRGLIIHUV :KLOHWKH'RZQVLGHRIWKHVZLWFKLVSUHVVHGWKHHQJLQH
VSHHGLVGHFUHDVHGDQGWKHLGOLQJVSHHGFDQEHORZHUHG
1RWH㸸
+RZHYHUWKHHQJLQHVSHHGFDQQRWEHGHFUHDVHGEHORZ
࣭ 7KHVSHFLILFDWLRQVYDU\GHSHQGLQJRQWKH WKHPLQLPXPLGOLQJVSHHG
PDFKLQHVRDYDLODELOLW\RIIXQFWLRQVDOVR
GLIIHUV &RQWUROGXULQJLJQLWLRQVZLWFK2))VWDWH
7KHUHDUHW\SHVRIFRQWUROVSURYLGHGZKHQWKHLJQLWLRQ
,GOLQJFRQWUROFKDQJHVZLWFK VZLWFKLVWXUQHG2))DIWHUWKHLGOLQJFRQWUROVZLWFKLV
%\RSHUDWLQJWKHLGOLQJFRQWUROVZLWFKWKHLGOLQJFRQWURO RSHUDWHGDQGHLWKHURQHRIWKHPLVSHUIRUPHGGHSHQGLQJ
IXQFWLRQVFDQEHVZLWFKHG RQWKHVSHFLILFDWLRQ
,GOLQJFRQWUROVZLWFK 7KHHQJLQHVSHHGDGMXVWHGE\WKHLGOLQJFRQWUROVZLWFKLV
%\RSHUDWLQJWKHLGOLQJFRQWUROVZLWFKWKHLGOLQJVSHHG UHFRUGHGLQWKH(&0DQGWKHQH[WRSHUDWLRQLVSHUIRUPHG
FDQEHDGMXVWHG DWWKHHQJLQHVSHHGZKHQWKHLJQLWLRQVZLWFKLVWXUQHG
2))
1RWH㸸 7KHHQJLQHVSHHGDGMXVWHGE\WKHLGOLQJFRQWUROVZLWFKLV
࣭ )RUWKHLQVWDOODWLRQSRVLWLRQVRIWKHLGOLQJ QRWUHFRUGHGLQWKH(&0DQGWKHQH[WRSHUDWLRQLV
FRQWUROFKDQJHVZLWFKDQGWKHLGOLQJFRQWURO SHUIRUPHGDWWKHGHIDXOWHQJLQHVSHHG
VZLWFKUHIHUWRWKHPDQXDORIWKHPDFKLQH )RUYHULILFDWLRQDQGTXHVWLRQVUHJDUGLQJWKH
7KHHQJLQHVSHHGXSSHUOLPLWYDULHVGHSHQGLQJ VSHFLILFDWLRQVFRQWDFWDQ,VX]XVHUYLFHUHODWHGSHUVRQ
RQWKHHQJLQHW\SHWKHPDFKLQHVSHFLILFDWLRQV
,GOHPDQXDOFRQWURO
DQGWKHHQJLQHZDUPXSFRQGLWLRQ
8S
:KLOHWKH8SVLGHRIWKHVZLWFKLVSUHVVHGWKHHQJLQH
VSHHGLVLQFUHDVHGDQGWKHLGOLQJVSHHGFDQEHUDLVHG
&$1FRPPXQLFDWLRQ
,ID&$1FRQWUROOHUGRHVQRWH[LVWRQWKHPDFKLQHVLGH
%0DLQWHQDQFH,QIRUPDWLRQ/(
,ID&$1FRQWUROOHUH[LVWVRQWKHPDFKLQHVLGH (QJLQHVSHHGRXWSXWWRWDFKRPHWHU
7KH(&0RXWSXWVWKHHQJLQHVSHHGSXOVHWRWKH
WDFKRPHWHUDVDWDFKRPHWHURXWSXW7KHWDFKRPHWHU
GLVSOD\VWKHHQJLQHVSHHGEDVHGRQWKHHQJLQHVSHHGSXOVH
VHQWIURPWKH(&0
3UHKHDWFRQWURO VZLWFKLVWXUQHG21WKH(&0GHWHFWVWKHWHPSHUDWXUHRI
426V\VWHP WKHHQJLQHFRRODQWEDVHGRQWKHVLJQDOVHQWIURPWKH
7KH(&0GHWHUPLQHVWKHJORZWLPHDFFRUGLQJWRWKH HQJLQHFRRODQWWHPSHUDWXUHVHQVRUWRFKDQJHWKHJORZ
HQJLQHFRRODQWWHPSHUDWXUHDQGDFWLYDWHVWKHJORZUHOD\ WLPHVRWKHHQJLQHFDQDOZD\VEHVWDUWHGXQGHURSWLPXP
DQGWKH42&LQGLFDWRUOLJKW7KH426V\VWHPLVDV\VWHP FRQGLWLRQV$OVRWKHDIWHUJORZIXQFWLRQFDQVWDELOL]HWKH
WRIDFLOLWDWHHQJLQHVWDUWLQORZWHPSHUDWXUHVDVZHOODVWR LGOLQJLPPHGLDWHO\DIWHUWKHHQJLQHLVVWDUWHG
UHGXFHWKHDPRXQWRIZKLWHVPRNHDQGQRLVHJHQHUDWHG
LPPHGLDWHO\DIWHUWKHHQJLQHLVVWDUWHG:KHQWKHLJQLWLRQ
0DLQWHQDQFH,QIRUPDWLRQ/(%
(&0 7KH(&0LVGHVLJQHGWRPDLQWDLQUHJXODWLRQOHYHOVRI
$ERXW(&0IXQFWLRQV H[KDXVWJDVHVZKLOHREWDLQLQJH[FHOOHQWSHUIRUPDQFHDQG
7KH(&0FRQVWDQWO\PRQLWRUVWKHLQIRUPDWLRQVHQWIURP IXHOHIILFLHQF\7KH(&0PRQLWRUVYDULRXVHQJLQH
YDULRXVVHQVRUVDQGFRQWUROVWKHYDULRXVV\VWHPVRIWKH IXQFWLRQVYLDVHQVRUVVXFKDVWKH&.3VHQVRU
SRZHUWUDLQ7KH(&0SHUIRUPVWKHGLDJQRVWLFIXQFWLRQV
(&0YROWDJH
RIWKHV\VWHPGHWHFWVRSHUDWLRQDOSUREOHPVRIWKHV\VWHP
7KH(&0DSSOLHVWKHUHIHUHQFHYROWDJHWRYDULRXV
ZDUQVWKHRSHUDWRUYLDWKHGLDJQRVLVOLJKWDQGUHFRUGVWKH
VZLWFKHVDQGVHQVRUV7KH(&0LVDEOHWRDSSO\YROWDJH
'7&7KH'7&LGHQWLILHVWKHDUHDZKHUHWKHSUREOHPKDV
LQVXFKDZD\EHFDXVHWKH(&0UHVLVWDQFHYDOXHLVYHU\
RFFXUUHGWRDVVLVWWKHUHSDLURSHUDWLRQSHUIRUPHGE\WKH
KLJKDQGWKHYROWDJHWKDWLVDFWXDOO\DSSOLHGWRWKHFLUFXLW
WHFKQLFLDQ
LVORZ7KHUHIRUHWKHWHVWODPSPD\QRWLOOXPLQDWHHYHQ
7KH(&0RXWSXWVYROWDJHVHJ9WRVXSSO\SRZHUWR
LILWLVFRQQHFWHGWRWKHFLUFXLW7KHYROWPHWHUWKDWLV
YDULRXVVHQVRUVDQGVZLWFKHV7KH(&0FRQWUROVWKH
QRUPDOO\XVHGDWPDLQWHQDQFHIDFWRULHVPD\QRWGLVSOD\D
RXWSXWFLUFXLWE\FRQWUROOLQJWKHJURXQGRUSRZHUVRXUFH
FRUUHFWUHDGLQJEHFDXVHLWVLQSXWLPSHGDQFHLVWRRORZ
FLUFXLWYLDRQHRIWKHGHYLFHV
$QDFFXUDWHYROWDJHUHDGLQJFDQEHREWDLQHGE\XVLQJD
1RWH㸸 GLJLWDOPXOWLPHWHUIRUH[DPSOHZLWKDQ
࣭ )RUWKH(&0LQVWDOODWLRQSRVLWLRQUHIHUWRWKH LQSXWLPSHGDQFHRI0ȍ
PDQXDORIWKHPDFKLQH (OHFWULFDOO\HUDVDEOHSURJUDPPDEOHUHDGRQO\PHPRU\
((3520
7KH((3520FRQWDLQVYDULRXVSURJUDPVDQGFDOLEUDWLRQ
LQIRUPDWLRQQHFHVVDU\IRUWKH(&0WRFRQWUROWKH
SRZHUWUDLQRSHUDWLRQV
,IDPDOIXQFWLRQLVIRXQGZLWKWKH((3520UHSODFHWKH
(&0
7KHSURJUDPDQGFDOLEUDWLRQLQIRUPDWLRQIRUWKH(&0
SRZHUWUDLQFRQWUROLQFOXGHVWKHHQJLQHW\SHHQJLQH
QXPEHU(&0SDUWQXPEHU'7&LQWHUF\OLQGHU
FRUUHFWLRQOHDUQLQJYDOXH454WXQHDQG(*5
FRUUHFWLRQOHDUQLQJYDOXH
1RWHVRQ(&0PDLQWHQDQFH
7KH(&0KDVEHHQGHVLJQHGWRZLWKVWDQGWKHUHJXODU
FXUUHQWFRQVXPSWLRQDVVRFLDWHGZLWKWKHPDFKLQH
RSHUDWLRQ0DNHVXUHWKDWWKHFLUFXLWGRHVQRWRYHUORDG
:KHQSHUIRUPLQJWHVWVIRUDQRSHQFLUFXLWRUVKRUWFLUFXLW
GRQRWJURXQGRUDSSO\YROWDJHWRWKHFLUFXLWRIWKH(&0
(&0DQGFRPSRQHQWV XQOHVVRWKHUZLVHLQVWUXFWHG:KHQSHUIRUPLQJWKHVH
%0DLQWHQDQFH,QIRUPDWLRQ/(
FLUFXLWWHVWVPDNHVXUHWRXVHGLJLWDOPXOWLPHWHU
1RWH㸸
࣭ 8VHWKH(&0ZLWKWKHSDUW1RFRUUHVSRQGLQJ
WRWKHPDFKLQH
:KHQSHUIRUPLQJZHOGLQJZRUNRQWKH
PDFKLQHVWDUWWKHZRUNDIWHUGLVFRQQHFWLQJWKH
QHJDWLYHWHUPLQDORIWKHEDWWHU\
7XUQLQJ2))WKH(&0SRZHUVRXUFH
$SSUR[LPDWHO\VHFRQGVDIWHUWXUQLQJWKHLJQLWLRQ
VZLWFK2))WKHLQWHUQDOSRZHUVRXUFHRIWKH(&0LVQRW
WXUQHG2)):KHQLWLVQHFHVVDU\WRWXUQ2))WKH(&0
SRZHUVRXUFHHJZKHQFOHDULQJWKHPHPRU\LWLV
QHFHVVDU\WRZDLWVHFRQGVRUPRUHDIWHUWXUQLQJWKH
LJQLWLRQVZLWFK2))
(QJLQHFRPSRQHQWVORFDWLRQGLDJUDP
7KHORFDWLRQVVKDSHVDQGH[LVWHQFHRUQRQH[LVWHQFHRI
FRPSRQHQWVYDU\GHSHQGLQJRQWKHVSHFLILFDWLRQVRIWKH
PDFKLQH
0DLQWHQDQFH,QIRUPDWLRQ/(%
(*5YDOYH (QJLQHVSHHGVHQVRU
%RRVWSUHVVXUHVHQVRUERRVWWHPSHUDWXUHVHQVRU &.3VHQVRU
(QJLQHFRRODQWWHPSHUDWXUHVHQVRU )53VHQVRU
&03VHQVRU *ORZSOXJ
6XFWLRQFRQWUROYDOYH ,07VHQVRU
)XHOWHPSHUDWXUHVHQVRU
2LOSUHVVXUHVHQVRU
6XSSO\SXPS
7KHVXSSO\SXPSKLJKO\SUHVVXUL]HVWKHIXHOXVLQJWKH
HQJLQHWRUTXHDQGIRUFHIHHGVWKHIXHOWRWKHFRPPRQ
UDLOIXHOUDLO$OVRWKHVXFWLRQFRQWUROYDOYHWKHIXHO
WHPSHUDWXUHVHQVRUWKHIHHGSXPSHWFDUHLQVWDOOHGRQ
WKHVXSSO\SXPS
%0DLQWHQDQFH,QIRUPDWLRQ/(
VXSSO\SXPSHWF7KHYROWDJHEHFRPHVORZHUZKHQWKH
UHVLVWDQFHLVORZHUDQGLWEHFRPHVKLJKHUZKHQWKH
UHVLVWDQFHLVKLJKHU
1RWH㸸
࣭ 'RQRWUHSODFHWKHIXHOWHPSHUDWXUHVHQVRU
:KHQDPDOIXQFWLRQLVIRXQGUHSODFHWKH
VXSSO\SXPSDVVHPEO\
6XFWLRQFRQWUROYDOYH
)XHOWHPSHUDWXUHVHQVRU
)HHGSXPS
6XFWLRQFRQWUROYDOYH
7KHVXFWLRQFRQWUROYDOYHLVLQVWDOOHGRQWKHVXSSO\SXPS
DQGFRQWUROVWKHIXHOIRUFHIHHGWRWKHFRPPRQUDLOIXHO
UDLO7KH(&0FRQWUROVWKHIXHOGLVFKDUJHDPRXQWE\
UHJXODWLQJWKHHQHUJL]LQJWLPHWRWKHVXFWLRQFRQWURO
&RPPRQUDLOIXHOUDLO
YDOYH
7KHFRPPRQUDLOIXHOUDLOUHFHLYHVWKHIXHOIURPWKH
VXSSO\SXPSUHWDLQVWKHIXHOSUHVVXUHDQGGLVWULEXWHVWKH
IXHOWRHDFKF\OLQGHU7KH)53VHQVRUDQGWKHSUHVVXUH
OLPLWHUDUHLQVWDOOHGRQWKHFRPPRQUDLOIXHOUDLO
6XFWLRQFRQWUROYDOYH
)XHOWHPSHUDWXUHVHQVRU
7KHIXHOWHPSHUDWXUHVHQVRULVLQVWDOOHGRQWKHVXSSO\
SXPSDQGWKHWKHUPLVWRUFKDQJHVWKHUHVLVWDQFH &RPPRQUDLOIXHOUDLO
DFFRUGLQJWRFKDQJHVLQWHPSHUDWXUH7KHUHVLVWDQFHYDOXH 3UHVVXUHOLPLWHU
EHFRPHVORZHUZKHQWKHIXHOWHPSHUDWXUHLVKLJKDQGLW )53VHQVRU
EHFRPHVKLJKHUZKHQWKHIXHOWHPSHUDWXUHLVORZ7KH
3UHVVXUHOLPLWHU
(&0DSSOLHV9WRWKHIXHOWHPSHUDWXUHVHQVRUWKURXJK
WKHSXOOXSUHVLVWRUDQGLWFDOFXODWHVWKHIXHOWHPSHUDWXUH
IURPFKDQJHVLQWKHYROWDJHDQGXVHVLWIRUFRQWUROOLQJWKH
0DLQWHQDQFH,QIRUPDWLRQ/(%
7KHSUHVVXUHOLPLWHULVDFWLYDWHGZKHQWKHSUHVVXUHLQWKH WRDSSO\LWWRWKHLQMHFWRUDQGXVHVLWIRUIXHOLQMHFWLRQ
FRPPRQUDLOIXHOUDLOEHFRPHVXQXVXDOO\KLJKVRDVWR TXDQWLW\FRQWURODQGLQMHFWLRQWLPLQJFRQWUROE\
UHOHDVHWKHSUHVVXUHLQVLGHWKHFRPPRQUDLOIXHOUDLO UHJXODWLQJWKHHQHUJL]LQJWLPHRIWKHLQMHFWRU
3UHVVXUHOLPLWHU (QJLQHFRRODQWWHPSHUDWXUHVHQVRU
7KHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULVLQVWDOOHGRQWKH
)53VHQVRU WKHUPRVWDWKRXVLQJDQGWKHWKHUPLVWRUFKDQJHVWKH
7KH)53VHQVRULQVWDOOHGRQWKHFRPPRQUDLOIXHOUDLO UHVLVWDQFHDFFRUGLQJWRFKDQJHVLQWHPSHUDWXUH7KH
GHWHFWVWKHIXHOSUHVVXUHLQVLGHWKHFRPPRQUDLOIXHO UHVLVWDQFHEHFRPHVVPDOOHUZKHQWKHHQJLQHFRRODQW
UDLOFRQYHUWVSUHVVXUHLQWRDYROWDJHVLJQDODQGVHQGVLW WHPSHUDWXUHLVKLJKDQGLWEHFRPHVODUJHUZKHQWKH
WRWKH(&07KHYROWDJHEHFRPHVKLJKHUZKHQWKH HQJLQHFRRODQWWHPSHUDWXUHLVORZ7KH(&0DSSOLHV9
SUHVVXUHLVKLJKHUDQGLWEHFRPHVORZHUZKHQWKH WRWKHHQJLQHFRRODQWWHPSHUDWXUHVHQVRUWKURXJKWKHSXOO
SUHVVXUHLVORZHU7KH(&0FDOFXODWHVWKHDFWXDOIXHO XSUHVLVWRUDQGFDOFXODWHVWKHHQJLQHFRRODQWWHPSHUDWXUH
SUHVVXUHIURPWKHYROWDJHVLJQDOVHQWIURPWKHVHQVRUDQG IURPFKDQJHVLQWKHYROWDJH7KLVYDOXHLVXVHGLQYDULRXV
XVHVLWWRFRQWUROWKHIXHOLQMHFWLRQHWF FRQWUROPHFKDQLVPVVXFKDVIRUIXHOLQMHFWLRQFRQWURO
7KHYROWDJHEHFRPHVORZHUZKHQWKHUHVLVWDQFHLVORZHU
DQGLWEHFRPHVKLJKHUZKHQWKHUHVLVWDQFHLVKLJKHU
)53VHQVRU
,QMHFWRU
&.3VHQVRU
7KHLQMHFWRULVLQVWDOOHGRQWKHF\OLQGHUKHDGSRUWLRQDQG
7KH&.3VHQVRULVLQVWDOOHGRQWKHOHIWVLGHRIWKH
LVFRQWUROOHGE\WKH(&0WRSHUIRUPIXHOLQMHFWLRQ7KH
F\OLQGHUEORFNUHDUVHFWLRQDQGWKHEDFNVLGHRIWKHIXHO
(&0LQWHUQDOO\ERRVWVWKHYROWDJHIRUGULYLQJWKHLQMHFWRU
ILOWHU7KHVHQVRUURWRULVIL[HGRQWKHFUDQNVKDIW7KHUH
%0DLQWHQDQFH,QIRUPDWLRQ/(
DUHQRWFKHVVSDFHGDSDUWDQGDVHFWLRQZLWKRXW
QRWFKHV7RSGHDGFHQWHURIF\OLQGHU1RFDQEH
GHWHFWHGWKURXJKWKLVVHFWLRQZLWKRXWQRWFKHVDQGDSXOVH
VLJQDOLVJHQHUDWHG%\GHWHFWLQJWKHVHFWLRQZLWKRXW
QRWFKHVZLWKWKH&.3VHQVRUDQGWKHUHIHUHQFH
SURMHFWLRQZLWKWKH&03VHQVRUWKH(&0GHWHUPLQHV
FRPSUHVVLRQWRSGHDGFHQWHURIF\OLQGHU1RWRYHULI\
WKDWWKH\FRUUHODWHZLWKHDFKRWKHU
&03VHQVRU
3URMHFWLRQ
7LPLQJFKDLQVSURFNHW
5RWDWLRQDOGLUHFWLRQ
2LOSUHVVXUHVHQVRU
7KHRLOSUHVVXUHVHQVRULVLQVWDOOHGQHDUWKHRLOFRROHURI
WKHF\OLQGHUEORFNDQGLWGHWHFWVWKHSUHVVXUHRIWKH
HQJLQHRLOFRQYHUWVLWLQWRDYROWDJHVLJQDODQGVHQGVLW
6HQVRUURWRU WRWKH(&0
&.3VHQVRU 7KHYROWDJHEHFRPHVKLJKHUZKHQWKHSUHVVXUHLVKLJKHU
5RWDWLRQDOGLUHFWLRQ DQGLWEHFRPHVORZHUZKHQWKHSUHVVXUHLVORZHU
&03VHQVRU
7KH&03VHQVRULVLQVWDOOHGWRWKHJHDUFDVHFRYHULQWKH
F\OLQGHUKHDGIURQWVLGH,WGHWHFWVSURWUXVLRQVSHU
URWDWLRQRIWKHHQJLQHDQGJHQHUDWHVDSXOVHVLJQDO7KH
(&0GHWHUPLQHVWKHF\OLQGHUDQGVSHFLILHVWKHFUDQN
DQJOHXVLQJWKH&03VLJQDODQGWKH&.3VLJQDOLQSXW
IURPWKH&.3VHQVRUDQGXVHVWKHLQIRUPDWLRQIRUWKH
IXHOLQMHFWLRQFRQWURODQGWKHFDOFXODWLRQRIWKHHQJLQH
VSHHG
:KLOHWKLVFRQWUROLVXVXDOO\SHUIRUPHGXVLQJWKH&.3
VLJQDOWKH&03VLJQDOLVXVHGLQVWHDGZKHQWKH&.3
VHQVRULVIDXOW\
$FFHOHUDWRUSRVLWLRQVHQVRU
7KHDFFHOHUDWRUSRVLWLRQVHQVRULVLQVWDOOHGRQWKHFRQVROH
SDQHORIWKHPDFKLQHDQGVXSSOLHVWRWKH(&0DYROWDJH
VLJQDOWKDWYDULHVLQDFFRUGDQFHZLWKWKHDFFHOHUDWRU
YROXPHDQJOH7KH(&0FDOFXODWHVWKHDFFHOHUDWRUSHGDO
SRVLWLRQIURPWKHYROWDJHVLJQDODQGXVHVLWIRUIXHO
LQMHFWLRQFRQWURODQGPDQ\RWKHUFRQWUROV
0DLQWHQDQFH,QIRUPDWLRQ/(%
1RWH㸸
࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHDFFHOHUDWRU
SRVLWLRQVHQVRUUHIHUWRWKHPDQXDORIWKH
PDFKLQH
%DURPHWULFSUHVVXUHVHQVRU
7KHEDURPHWULFSUHVVXUHVHQVRULVLQVWDOOHGRQWKH
PDFKLQHVLGHDQGLWUHSODFHVWKHEDURPHWULFSUHVVXUHZLWK
DYROWDJHVLJQDO7KH(&0FDOFXODWHVWKHEDURPHWULF
SUHVVXUHIURPWKHYROWDJHVLJQDODQGXVHVWKHEDURPHWULF
SUHVVXUHWRFRUUHFWWKHIXHOLQMHFWLRQTXDQWLW\
1RWH㸸
࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHEDURPHWULF
SUHVVXUHVHQVRUUHIHUWRWKHPDQXDORIWKH
PDFKLQH
%RRVWSUHVVXUHVHQVRUERRVWWHPSHUDWXUHVHQVRU
%RRVWSUHVVXUHVHQVRU
7KHERRVWSUHVVXUHVHQVRUGHWHFWVWKHERRVWSUHVVXUHRI
WKHLQWDNHFKDPEHUDQGFRQYHUWVWKHSUHVVXUHLQWRD
YROWDJHVLJQDOWRVHQGWRWKH(&07KHYROWDJHEHFRPHV
KLJKHUZKHQWKHSUHVVXUHLVKLJKHUDQGLWEHFRPHVORZHU
ZKHQWKHSUHVVXUHLVORZHU7KH(&0FDOFXODWHVWKHERRVW
SUHVVXUHIURPWKHYROWDJHVLJQDOVHQWIURPWKHVHQVRUDQG
XVHVLWWRFRQWUROWKHIXHOLQMHFWLRQHWF
%RRVWWHPSHUDWXUHVHQVRU
7KHERRVWWHPSHUDWXUHVHQVRUPHDVXUHVWKHWHPSHUDWXUH
RIDLUHQWHULQJWKHLQWDNHFKDPEHU:KHQWKHVHQVRULV
FROGWKHUHVLVWDQFHRIWKHVHQVRULVKLJK$VWKHDLU
WHPSHUDWXUHULVHVWKHVHQVRUUHVLVWDQFHGHFUHDVHV7KH
(&0GHWHFWVDKLJKYROWDJHLQWKHVLJQDOFLUFXLWZKHQWKH
VHQVRUUHVLVWDQFHLVKLJK)RUORZVHQVRUUHVLVWDQFHWKH
(*5SRVLWLRQVHQVRU (&0GHWHFWVDORZYROWDJHRIWKHVLJQDOFLUFXLW
7KLVVHQVRULVLQVWDOOHGLQVLGHWKH(*5YDOYHWRGHWHFWWKH
(*5YDOYHOLIWDPRXQW
1RWH㸸
࣭ 'RQRWGLVDVVHPEOHWKH(*5SRVLWLRQVHQVRU
:KHQDPDOIXQFWLRQLVIRXQGUHSODFHWKH(*5
YDOYHDVVHPEO\
)XHOILOWHUSUHVVXUHVHQVRU
7KHIXHOILOWHUSUHVVXUHVHQVRULVLQVWDOOHGRQWKHIXHOILOWHU
DQGFRQYHUWVWKHYDFXXPLQWKHIXHOILOWHULQWRDYROWDJH
%0DLQWHQDQFH,QIRUPDWLRQ/(
VLJQDO7KH(&0FDOFXODWHVWKHYDFXXPLQWKHIXHOILOWHU
EDVHGRQWKHYROWDJHVLJQDOWRGHWHUPLQHFORJJLQJLQWKH
IXHOILOWHU
'LDJQRVLVOLJKW
%\WXUQLQJ21WKHGLDJQRVWLFVZLWFKWKH'7&LV
LQGLFDWHGE\IODVKLQJ
,07VHQVRU 1RWH㸸
7KH,07VHQVRULVDYDULDEOHUHVLVWRULQVWDOOHGRQWKH ࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHGLDJQRVWLF
LQWDNHFKDPEHUDQGPHDVXUHVWKHLQWDNHWHPSHUDWXUHRI OLJKWUHIHUWRWKHPDQXDORIWKHPDFKLQH
WKHLQWDNHFKDPEHU:KHQWKHVHQVRULVFROGWKHVHQVRU
UHVLVWDQFHLVKLJK:KHQWKHLQWDNHWHPSHUDWXUHULVHVWKH '/&
VHQVRUUHVLVWDQFHGHFUHDVHV)RUORZVHQVRUUHVLVWDQFHWKH 7KH'/&LVWKHFRQQHFWRUIRUFRPPXQLFDWLRQDQG
(&0GHWHFWVDORZYROWDJHRIWKHVLJQDOFLUFXLW FRQQHFWLRQEHWZHHQWKHWURXEOHGLDJQRVLVVFDQQLQJWRRO
DQGYDULRXVFRQWUROOHUV
1RWH㸸
࣭ )RUWKH'/&LQVWDOODWLRQSRVLWLRQUHIHUWRWKH
PDQXDORIWKHPDFKLQH
(QJLQHVSHHGVHQVRU
7KHHQJLQHVSHHGVHQVRULVLQVWDOOHGRQWKHIO\ZKHHO
KRXVLQJ2XWSXWUHFHLYHGIURPWKHHQJLQHVSHHGVHQVRULV
GLUHFWO\WUDQVPLWWHGWRWKHWDFKRPHWHUZLWKRXWSDVVLQJ
WKURXJKWKH(&0
'LDJQRVWLFVZLWFK
7KHGLDJQRVWLFVZLWFKVKRUWV'/&WHUPLQDO1RDQG1R
RU1RDQGIODVKHVWKHGLDJQRVWLFOLJKWWRLQGLFDWHWKH
'7&
0DLQWHQDQFH,QIRUPDWLRQ/(%
1RWH㸸 7KHRSHUDWLRQFDQEHSHUIRUPHGDWWKHHQJLQHVSHHG
࣭ )RUWKHLQVWDOODWLRQSRVLWLRQDQGVKDSHRIWKH VSHFLILHGIRUHDFKPRGHE\VZLWFKLQJWKHPRGHFKDQJH
GLDJQRVWLFVZLWFKUHIHUWRWKHPDQXDORIWKH VZLWFK
PDFKLQH 1RWH㸸
0HPRU\FOHDUVZLWFK ࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHPRGH
7KLVLVXVHGZKHQFOHDULQJWKHUHFRUGHG'7&VLQWKH FKDQJHVZLWFKUHIHUWRWKHPDQXDORIWKH
(&0E\RSHUDWLQJWKHGLDJQRVWLFVZLWFKDQGWKHPHPRU\ PDFKLQH
FOHDUVZLWFK
(&0SRZHUGLVWULEXWLRQGLDJUDP
1RWH㸸 6RPHVHQVRUVPD\QRWEHFRQQHFWHGWRWKH(&0
࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHPHPRU\ GHSHQGLQJRQWKHVSHFLILFDWLRQVRIWKHPDFKLQH
FOHDUVZLWFKUHIHUWRWKHPDQXDORIWKH 6LQFHVRPHVHQVRUVPD\SHUIRUPLQSXWRXWSXWZLWKWKH
PDFKLQH (&0GHSHQGLQJRQ&$1FRPPXQLFDWLRQFKHFNWKH
VSHFLILFDWLRQVRIWKHPDFKLQH
0RGHFKDQJHVZLWFK
%0DLQWHQDQFH,QIRUPDWLRQ/(
0DLQWHQDQFH,QIRUPDWLRQ/(%
(&0SLQDVVLJQPHQW
%0DLQWHQDQFH,QIRUPDWLRQ/(
SLQFRQQHFWRU
0DLQWHQDQFH,QIRUPDWLRQ/(%
,6/2$' /RDGDGYDQFHVZLWFKVLJQDO
,667$57 ,JQLWLRQVZLWFKVWDUWVLJQDO
,60'0$3 0RGHPDSVZLWFKVLJQDO
,60'0$3 0RGHPDSVZLWFKVLJQDO
,60'0$3 0RGHPDSVZLWFKVLJQDO
,6',$* 'LDJQRVWLFVZLWFKVLJQDO
,60(0&/ 0HPRU\FOHDUVZLWFK
&&,62&$1+ ,62&$1+LJK
6*6/' 2LOSUHVVXUHVKLHOG
6*957 %DURPHWULFSUHVVXUHVHQVRU*1'
639 %DURPHWLFSUHVVXUHVHQVRUSRZHUVRXUFH
3*6,*1 6LJQDO*1'
,$$&&(/ $FFHOHUDWRUSRVLWLRQVHQVRUVLJQDO
,$$&&(/ $FFHOHUDWRUSRVLWLRQVHQVRUVLJQDO
,$7+&2 %RRVWWHPSHUDWXUHVHQVRUVLJQDO
,$)/&/* )XHOILOWHUSUHVVXUHVHQVRUVLJQDO
,$,07 ,07VHQVRUVLJQDO
,$2,/35(66 2LOSUHVVXUHVHQVRUVLJQDO
,$%$52 %DURPHWULFSUHVVXUHVHQVRUVLJQDO
&&,62&$1/ ,62&$1/RZ
6*957 ,07VHQVRURLOSUHVVXUHVHQVRU*1'
639 2LOSUHVVXUHVHQVRUSRZHUVRXUFH
3*&$6( (&0FDVH*1'
SLQFRQQHFWRU
0DLQWHQDQFH,QIRUPDWLRQ/(%
,QWURGXFWLRQWRWKHWURXEOHGLDJQRVLV
,QWURGXFWLRQWRWKHWURXEOHGLDJQRVLV FDQQRWEHUHSURGXFHG+RZHYHUWKH(&0PD\KDYH
UHFRUGHGWKHIDLOXUH
$ERXWWURXEOHGLDJQRVLV
3DVWPDOIXQFWLRQVSDVWIDLOXUHV
7KHIROORZLQJWURXEOHGLDJQRVLVSURFHGXUHLV
H[WUHPHO\LPSRUWDQWWRUHVROYHSUREOHPVRIDOO 0LGGOHVWDJHRIIDLOXUH
HOHFWULFHOHFWURQLFV\VWHPV 7KHIDLOXUHRFFXUVVSRUDGLFDOO\DQGIRUDVKRUWWLPHEXW
1HJOHFWLQJWRLPSOHPHQWWKHVHVWHSVPD\UHVXOWLQ PD\RFFXUUHSHDWHGO\DWLQWHUYDOVDQGRFFXUVXQGHU
UHTXLULQJXQQHFHVVDU\UHSDLUV5HDGDQGXQGHUVWDQG VSHFLILFFRQGLWLRQV
WKHSURFHGXUHFDUHIXOO\DQGSURFHHGZLWKWKHWURXEOH 7KHFXVWRPHUFRPSODLQWLVFOHDUEXWWKHIDLOXUH
GLDJQRVLV FRQGLWLRQVDUHXQFOHDU
$OVRXVHDYDLODEOHIXQFWLRQVDQGWKHWURXEOH 7KHUHIRUHWKHSHUVRQSHUIRUPLQJWKHGLDJQRVLVFDQ
GLDJQRVLVVFDQWRROWRSHUIRUPWKHWURXEOHGLDJQRVLV UHSURGXFHWKHIDLOXUHE\XQGHUVWDQGLQJLWVFRQGLWLRQV
DQGV\VWHPFKHFN ,QWHUPLWWHQWIDLOXUHVLQWHUPLWWHQW
$IWHUUHSDLUZRUNLVSHUIRUPHGYHULI\WKDW'7&VDUH
6WDJHZKHUHIDLOXUHLVUHDOLVWLF
FOHDUHG,ID'7&LVQRWFOHDUHGPRYHRQWRWKHQH[W
7KHRFFXUUHQFHRIWKHIDLOXUHLVVHWDQGWKHFXVWRPHU
VWHS
FRPSODLQWLVUHDODQGFOHDU
7KHZLULQJGLDJUDPDOVRLQFOXGHVLQIRUPDWLRQVXFK
7KHUHIRUHWKHSHUVRQSHUIRUPLQJWKHGLDJQRVLVFDQ
DVWKHFRQQHFWRUORFDWLRQGLDJUDPDQGWKHFRQQHFWRU
UHSURGXFHWKHIDLOXUH+RZHYHUWKHUHPD\VRPHWLPHVEH
SLQDUUDQJHPHQW8VHWKHLQIRUPDWLRQWRSHUIRUPWKH
PXOWLSOHFDXVHVIRUWKHIDLOXUH
WURXEOHGLDJQRVLV
&XUUHQWPDOIXQFWLRQFXUUHQWIDLOXUHV
7URXEOHGLDJQRVLVSURFHGXUH
'LDJQRVLV
&KHFNLQJFRPSODLQWVIURPFXVWRPHU
)XOO\XQGHUVWDQGWKHGHVFULSWLRQJLYHQE\WKH
࣭8VHWKHFKHFNVKHHWWRRUJDQL]HWKHWURXEOH
FXVWRPHUXVLQJWKH(QJLQHFRQWUROV\VWHPFKHFN
VLWXDWLRQ
VKHHW
3HUIRUPLQJSUHOLPLQDU\LQVSHFWLRQ
1RWH㸸
࣭3HUIRUPRYHUDOOYLVXDOLQVSHFWLRQ
࣭&KHFNWKHPDLQWHQDQFHKLVWRU\ ࣭ :KHQTXHVWLRQLQJGRQRWDVNUDQGRPO\EXW
࣭'HWHFWDQ\PDOIXQFWLRQVXFKDVDEQRUPDOQRLVHDQG IRFXVRQWKHV\VWHPWKDWLVLQIHUUHGWREH
VPHOO GHIHFWLYHEDVHGRQWKHPDOIXQFWLRQ
࣭&ROOHFWWKHIDLOXUHWURXEOH'7&LQIRUPDWLRQWRSURYLGH SKHQRPHQRQ
HIIHFWLYHUHSDLU 'HWHUPLQHIDLOXUHLQIRUPDWLRQDFFXUDWHO\
࣭,QVSHFWIRUDPDOIXQFWLRQE\FRPSDULQJZLWKWKH +DYHDFRQFUHWHXQGHUVWDQGLQJEDVHGRQ:+
VSHFLILHGYDOXHV /RZDLUWHPSHUDWXUHDWVWDUWRURQDVWHDG\EDVLVQHDUWKH
,QVSHFWWKHVHUYLFHLQIRUPDWLRQ HQJLQHSDUWVPHWDOOLFVRXQGHWF
࣭&KHFNWKHPDUNHWVHUYLFHEXOOHWLQ &KHFNSRLQWV
3HUIRUPLQVSHFWLRQIRUWKH'7&FRGH ࣭)DLOXUHV\PSWRPV
࣭,QVSHFWWKHLWHPGLVSOD\HGE\WKH'7& ࣭0RQWKDQGGDWHWLPHIUHTXHQF\RIRFFXUUHQFH
࣭5RDGFRQGLWLRQV
,QVSHFWIRUPDOIXQFWLRQVEDVHGRQV\PSWRP ࣭'ULYLQJFRQGLWLRQVRSHUDWLRQFRQGLWLRQZHDWKHU
࣭,QVSHFWLRQRIWKHLWHPWKDWLVQRWGLVSOD\HGE\WKH'7& ࣭)HHOLQJRIV\PSWRP
127( (QJLQHFRQWUROV\VWHPFKHFNVKHHW
6\VWHPWURXEOHGLDJQRVLVW\SH :KHQUHFHLYLQJWKHPDFKLQHIURPWKHFXVWRPHUDWWKH
7KHV\VWHPGLDJQRVLVPHWKRGLVDVWDQGDUGL]HGPHWKRG VHUYLFHIDFWRU\WKHIDLOXUHV\PSWRPVDQGWKHGDWDRQWKH
DSSOLHGIRUUHSDLULQJDOOHOHFWULFHOHFWURQLFV\VWHPV RFFXUUHQFHRIIDLOXUHVPXVWEHFKHFNHGZLWKWKHFXVWRPHU
)DLOXUHVLQHOHFWULFHOHFWURQLFV\VWHPVGLIIHUIURP EDVHGRQWKHHQJLQHFRQWUROFKHFNVKHHW
FRPPRQPDFKLQHIDLOXUHVDQGRIWHQRFFXULQWKH
IROORZLQJVWHSV ࣭)DLOXUHV\PSWRPVPD\QRWEHDEOHWREHUHSURGXFHGDW
WKHVHUYLFHIDFWRU\
,QLWLDOVWDJHRIIDLOXUH ࣭7KHFXVWRPHU
VFRPSODLQWPD\QRWDOZD\VEHD
7KHIDLOXUHRFFXUVVSRUDGLFDOO\DQGIRUDVKRUWWLPH PDOIXQFWLRQ
2IWHQWLPHVWKHGULYHUGRHVQRWQRWLFHLW$WWKLVVWDJHWKH ࣭1RWLILFDWLRQRILQFRUUHFWPDOIXQFWLRQFRQGLWLRQVWRWKH
FXVWRPHU
VFRPSODLQWLVXQFOHDUDQGWKHPDOIXQFWLRQ SHUVRQLQFKDUJHRIUHSDLUVPD\UHVXOWLQXQQHFHVVDU\
PDQKRXUVIRUUHSDLUV
0DLQWHQDQFH,QIRUPDWLRQ/(%
࣭7KHFKHFNVKHHWDVVLVWVLQRQERDUGGLDJQRVLVUHSDLU )DLOXUHV\PSWRPV
DQGUHSDLUYHULILFDWLRQDWWKHYHKLFOHVHUYLFLQJVWDWLRQ )DLOXUHIUHTXHQF\IDLOXUHFRQGLWLRQV
%0DLQWHQDQFH,QIRUPDWLRQ/(
3UHOLPLQDU\LQVSHFWLRQ :KHQLPSOHPHQWLQJWKHGLDJQRVWLFSURFHGXUHV
9LVXDOLQVSHFWLRQRIHQJLQHURRP FDUHIXOO\PDNHDYLVXDOLQVSHFWLRQRIWKHHQJLQH
0DLQWHQDQFH,QIRUPDWLRQ/(%
URRP7KLVLQVSHFWLRQFDQRIWHQOHDGWRVROYLQJD $ERXWWKHGLDJQRVWLFWHVWSHUIRUPHGRQWKHPDFKLQH
SUREOHPZLWKRXWWDNLQJH[WUDVWHSV 3DVWIDLOXUHV
࣭7KHGLDJQRVWLFWHVWVRIWKHSUHYLRXVLJQLWLRQF\FOHKDYH
࣭9LVXDOO\LQVSHFWDOODLUKRVHVIRUSXQFKHGKROHVFXWV
EHHQFRPSOHWHG
GLVFRQQHFWLRQVDQGDSSURSULDWHSLSLQJ
࣭7KHGLDJQRVWLFWHVWVRIWKHFXUUHQWLJQLWLRQF\FOHKDYH
࣭9LVXDOO\LQVSHFWWKHKRVHVWKDWDUHGLIILFXOWWRVHH
SDVVHG
EHKLQGRWKHUFRPSRQHQWV
࣭3UREOHPVLGHQWLILHGLQWKHGLDJQRVWLFWHVWVFXUUHQWO\GR
࣭)RUHYHU\KDUQHVVLQWKHHQJLQHURRPYLVXDOO\LQVSHFW
QRWH[LVW
WKDWDOOKDUQHVVHVDUHSURSHUO\FRQQHFWHG,QVSHFWWKDW
WKHUHDUHQREXUQHGRUZRUQDUHDVWKDWWKHKDUQHVVHVDUH &XUUHQWIDLOXUHV
SURSHUO\IDVWHQHGDQGWKDWWKH\DUHQRWLQFRQWDFWZLWK 7KHGLDJQRVWLFWHVWVRIWKHSUHYLRXVLJQLWLRQF\FOHKDYH
VKDUSHGJHVRUWKHKRWH[KDXVWPDQLIROGRUSLSHV EHHQFRPSOHWHG
࣭3UREOHPVLGHQWLILHGLQWKHGLDJQRVWLFWHVWVFXUUHQWO\
&KHFNLQJWKHPDFKLQHPDLQWHQDQFHVWDWXV
H[LVW
,IWKHPDFKLQHLVQRWPDLQWDLQHGSURSHUO\WKHGLDJQRVWLF
࣭7KHGLDJQRVWLFWHVWVRIWKHFXUUHQWLJQLWLRQF\FOHKDYH
OLJKWLOOXPLQDWHV5HVWULFWHGRLOILOWHUVIXHOILOWHUVDQG
IDLOHG
FUDQNFDVHGHSRVLWVGXHWRODFNRIRLOFKDQJHVRULPSURSHU
RLOYLVFRVLW\FDQWULJJHUPDFKLQHPDOIXQFWLRQVWKDWZHUH *ORVVDU\
QRWSUHYLRXVO\PRQLWRUHGSULRUWRWKH2%'V\VWHPFKHFN '7&
3RRUPDFKLQHPDLQWHQDQFHFDQQRWEHFODVVLILHGDVDQRQ (YHU\WLPHWKHLJQLWLRQVZLWFKLVWXUQHG21WKH(&0
PDFKLQHIDLOXUHEXWVLQFHWKHVHQVLWLYLW\RI2%'V\VWHP SHUIRUPVDVHOIWHVWRQPRVWRIWKHZLULQJDQG
FKHFNVLVKLJKPDFKLQHPDLQWHQDQFHVFKHGXOHVPXVWEH FRPSRQHQWVUHFRUGVDQ\GHWHFWHGV\VWHPIDLOXUHLQWKH
IROORZHGPRUHFORVHO\ PHPRU\RIWKH(&0DQGSHUIRUPVDEDFNXSFRQWURO
GHSHQGLQJRQWKH'7&
1RQ2(0SDUWV
$OVRIRUDPDOIXQFWLRQWKDWFDQDIIHFWGULYLQJWKH
$OOWKH2%'V\VWHPFKHFNVDUHDGMXVWHGWRRSHUDWHZLWK
GLDJQRVWLFOLJKWLOOXPLQDWHVWRLQIRUPWKHRSHUDWRU
JHQXLQHSDUWV7KHUHIRUHZKHQDFRPPHUFLDOO\VROG
VHQVRUVZLWFKHWFLVLQVWDOOHGDZURQJGLDJQRVLVLV ,JQLWLRQF\FOH
PDGHDQGWKHGLDJQRVWLFOLJKWLOOXPLQDWHV %HFDXVHWKHPDFKLQHDFWLYDWHVZLWKDPHWKRGWKDW
$IWHUPDUNHWHOHFWURQLFVVXFKDVPRELOHSKRQHVVWHUHRV VDWLVILHVDSUHGHWHUPLQHGGLDJQRVLVVWDQGDUGDQLJQLWLRQ
DQGDQWLWKHIWGHYLFHVPD\HPLW(0,LQWRWKHFRQWURO F\FOHLVGHILQHGDVWXUQLQJWKHNH\21UXQQLQJWKHQ
V\VWHPZKHQWKH\DUHLPSURSHUO\LQVWDOOHG$VDUHVXOW WXUQLQJWKHNH\2))
IDOVHVHQVRULQIRUPDWLRQLVJHQHUDWHGFDXVLQJWKH
'LDJQRVWLFOLJKW
GLDJQRVWLFOLJKWWRLOOXPLQDWH:KHQFRQGXFWLQJDWURXEOH
%DVLFDOO\WKHGLDJQRVWLFOLJKWLOOXPLQDWHVZKHQD'7&LV
GLDJQRVHVHLWKHUWXUQ2))WKHSRZHUIRUDOODIWHUPDUNHW
VHWGXHWRDIDLOXUHLQWKHHOHFWURQLFFRQWUROV\VWHPVXFK
SDUWVRUUHPRYHWKHPDQGWKHQFKHFNWKHIDLOXUHDJDLQ
DVWKH(&0
127(
'/&
5HODWHGV\VWHPIDLOXUH
7KHHTXLSPHQWIRUFRPPXQLFDWLQJZLWKWKHFRQWUROXQLWLV
0DQ\2%'V\VWHPFKHFNVJRLQWRWKHEDFNXSRSHUDWLRQ
WKH'DWD/LQN&RQQHFWRU'/&7KH'/&LVDOVR
PRGHEDVHGRQWKHLQVWUXFWLRQIURPWKH(&0ZKLFKLV
SURYLGHGWRHVWDEOLVKDFRQQHFWLRQZLWKWKHWURXEOH
JLYHQZKHQWKH(&0GHWHFWVDIDLOXUHLQWKHUHODWHG
GLDJQRVLVVFDQWRRO
V\VWHPVRUFRPSRQHQWV:KHQWKHEDFNXSRSHUDWLRQ
,GHQWLILFDWLRQRIUHFRUGHG'7&
PRGHLVDFWLYDWHGWKHRXWSXWLVUHGXFHGWRSURWHFWWKH
5HDGLQJWKHVHULDOGDWD
PDFKLQH
1RWH㸸
7URXEOHGLDJQRVLV
%DVLFNQRZOHGJHRIWRROVUHTXLUHG ࣭ 7KHLQVWDOODWLRQSRVLWLRQRIWKH'/&RUWKH
H[LVWHQFHRUQRQH[LVWHQFHRID'/&YDULHV
1RWH㸸 GHSHQGLQJRQWKHPDFKLQHVRUHIHUWRWKH
࣭ :KHQSHUIRUPLQJWKHGLDJQRVWLFSURFHGXUH PDQXDORIWKHPDFKLQH
ODFNRIEDVLFNQRZOHGJHUHJDUGLQJWKLV
(&02))
SRZHUWUDLQFRXOGUHVXOWLQDQLQFRUUHFW
$SSUR[LPDWHO\VHFRQGVRUPRUHDIWHUWKHLJQLWLRQ
GLDJQRVLVRUGDPDJHWRWKHSRZHUWUDLQ
VZLWFKLVWXUQHG2))WKH(&0SRZHUVRXUFHLV
FRPSRQHQWV'RQRWDWWHPSWWRGLDJQRVHD
FRPSOHWHO\GRZQWXUQLQJWRWKH(&02))VWDWXV
SUREOHPUHODWHGWRWKHSRZHUWUDLQZLWKRXW
KDYLQJWKHEDVLFNQRZOHGJH$EDVLF *HQHUDOGLDJQRVWLFRSHUDWLRQVRIWKHFRPSRQHQWVPRQLWRU
XQGHUVWDQGLQJRIKDQGWRROVVXFKDVWKH 7RUXQWKHHQJLQHQRUPDOO\DJHQHUDOGLDJQRVLVRIWKH
WURXEOHGLDJQRVLVVFDQWRROVLVUHTXLUHGWR FRPSRQHQWVLVUHTXLUHG
XWLOL]HWKHVHUYLFHPDQXDOHIIHFWLYHO\
%0DLQWHQDQFH,QIRUPDWLRQ/(
,QSXWFRPSRQHQWV ࣭7XUQWKHLJQLWLRQVZLWFK21EXWWKHHQJLQH2))
&KHFNWKHLQSXWFRPSRQHQWVWRLQVSHFWZKHWKHUWKHUHLV ࣭&RQQHFWWKHGLDJQRVWLFVZLWFK)RUDPDFKLQHZLWK
DQRSHQFLUFXLWLQWKHFLUFXLWDQGZKHWKHUWKHYDOXHVDUH QRGLDJQRVWLFVZLWFKVKRUW1RDQG1RRU1R
ZLWKLQUDQJH RIWKH'/&
&.3VHQVRU ࣭5HDGWKHIODVKLQJFRXQWRIWKHGLDJQRVWLFOLJKW
&03VHQVRU ࣭7KH'7&GHWHUPLQHVWKHIDLOXUHFRQWHQWVIURPWKH
(QJLQHFRRODQWWHPSHUDWXUHVHQVRU 'LDJQRVWLFWURXEOHFRGHOLVW
%RRVWVHQVRU ,IWKHWURXEOHGLDJQRVLVVFDQWRROLVFRQQHFWHGWKH
)53VHQVRU GLDJQRVWLFFRGHVFDQEHUHDGE\RSHUDWLQJWKHWURXEOH
$FFHOHUDWRUSRVLWLRQVHQVRU GLDJQRVLVVFDQWRRO
2XWSXWFRPSRQHQWV 1RWH㸸
7KHRXWSXWFRPSRQHQWVDUHLQVSHFWHGWRGLDJQRVHZKHWKHU ࣭ )RUWKHLQVWDOODWLRQSRVLWLRQRIWKHGLDJQRVWLF
UHVSRQVHVWRFRPPDQGVIURPWKHFRQWUROXQLWDUH OLJKWUHIHUWRWKHPDQXDORIWKHPDFKLQH
DSSURSULDWH,QVSHFWZKHWKHUWKHUHDUHRSHQFLUFXLWVLQWKH
FLUFXLWVDQGZKHWKHUWKHLUYDOXHVDUHZLWKLQWKHUDQJH 'LVSOD\ZKHQD'7&LVQRWUHFRUGHG
6XFWLRQFRQWUROYDOYH &RGHLQGLFDWLQJWKHVWDUWRIFRGHGLVSOD\LVGLVSOD\HG
/LJKWUHOD\FRQWURO UHSHDWHGO\
0DJQHWLFYDOYH 'LVSOD\ZKHQD'7&LVUHFRUGHG
'LDJQRVWLFOLJKW 7KHUHFRUGHGWURXEOHFRGHLVGLVSOD\HGWKUHHWLPHV,IRU
3URFHGXUHIRUUHDGLQJWKH'7& PRUHWURXEOHFRGHVKDYHEHHQUHFRUGHGWKH'7&VZLOOEH
5HDGLQJWKH'7&ZLWKDGLDJQRVWLFOLJKW RXWSXWLQDVFHQGLQJRUGHUZLWKHDFK'7&EHLQJGLVSOD\HG
&XUUHQWDQGSDVW'7&VUHFRUGHGLQWKH(&0FDQEH WKUHHWLPHV$IWHUGLVSOD\LQJDOOFRGHVWKHFRGHVZLOOEH
GLVSOD\HGE\FRQQHFWLQJWKHGLDJQRVWLFVZLWFKDQG GLVSOD\HGDJDLQVWDUWLQJZLWKWKHVPDOOHVWFRGHQXPEHU
IODVKLQJWKHGLDJQRVWLFOLJKW 7KLVGLVSOD\FRQWLQXHVZKLOHWKHGLDJQRVLVFRQQHFWRULV
࣭7XUQWKHLJQLWLRQVZLWFK21DQGFKHFNWKDWWKH FRQQHFWHG
GLDJQRVWLFOLJKWLOOXPLQDWHV
'7&LQGLFDWHGE\GLDJQRVWLFOLJKWIODVKLQJGLVSOD\ 1RWH㸸
&XUUHQWDQGSDVW'7&VDUHERWKGLVSOD\HGZKLOHWKH ࣭ )RUWKHZRUNSURFHGXUHUHIHUWRWKHPDQXDORI
HQJLQHLVVWRSSHG WKHWURXEOHGLDJQRVLVVFDQWRRO
:KLOHWKHHQJLQHLVLQRSHUDWLRQWKHOLJKWLOOXPLQDWHV
RQO\ZKHQDFXUUHQW'7&H[LVWV ,ID'7&LVUHFRUGHG
3HUIRUPUHSDLUVDFFXUDWHO\DFFRUGLQJWRWKHVSHFLILHG
8VLQJWKHWURXEOHGLVSOD\PRQLWRUWRUHDGWKH'7&V '7&FKDUW
:KHQD'7&LVVHWWKH'7&FDQEHGLVSOD\HGRQWKH
WURXEOHGLVSOD\PRQLWRURIWKHPDFKLQH ,IWKHUHLVQR'7&
6HOHFWWKHV\PSWRPIURP'LDJQRVLVE\V\PSWRP
8VLQJWKHWURXEOHGLDJQRVLVVFDQWRROWRUHDG'7&V &RPSOHWHWKHUHSDLUDFFRUGLQJWRWKHGLDJQRVWLF
'7&VFDQEHUHDGXVLQJWKHWURXEOHGLDJQRVLVVFDQWRRO
0DLQWHQDQFH,QIRUPDWLRQ/(%
SURFHGXUH,WLVDOVRSRVVLEOHWRSHUIRUPWKHLQVSHFWLRQE\ &KHFNE\WHVWLQJXQGHUWKHFRQGLWLRQVJLYHQE\WKH
UHIHUULQJWRWKHIXQFWLRQDOGLDJQRVLV FXVWRPHU
:KHQD'7&LVGLDJQRVHGYHULI\WKDWWKHPDOIXQFWLRQ
:KHQWKHDSSURSULDWHV\PSWRPLVQRWIRXQG
KDVEHHQUHSDLUHGE\UHSURGXFLQJWKHFRQGLWLRQWKDW
,QYHVWLJDWHWKHFRPSODLQWLQGHWDLO
DSSHDUHGZKHQWKH'7&ZDVVHWZKLOHFKHFNLQJWKHVFDQ
&UHDWHDGLDJQRVLVSODQ
WRROGDWD
8WLOL]HWKHVFKHPDWLFVDQGRSHUDWLRQSULQFLSOHV
:KHQUHSDLUKLVWRU\IRUVLPLODUFDVHVDUHDYDLODEOH 9HULILFDWLRQDIWHUUHSDLU
UHTXHVWWHFKQLFDODVVLVWDQFH&RPELQHWHFKQLFDO 0DFKLQHUHSDLUYHULILFDWLRQ
NQRZOHGJHDQGHIIHFWLYHXWLOL]DWLRQRIDYDLODEOHVHUYLFH :KHQDUHSDLUKDVEHHQSHUIRUPHGIRUWKHHOHFWURQLF
LQIRUPDWLRQ FRQWUROV\VWHPLWLVQHFHVVDU\WRYHULI\WKDWWKH
UHSDLULVDFFXUDWHDIWHUUHSDLULQJWKHPDFKLQH,IWKLV
,QWHUPLWWHQW
FKHFNLVQRWDGHTXDWHWKHGLDJQRVWLFOLJKWPD\
$IDLOXUHFRQGLWLRQWKDWGRHVQRWDOZD\VDSSHDULVUHIHUUHG
LOOXPLQDWHDJDLQZKLOHUHWXUQLQJWKHPDFKLQHWRWKH
WRDVLQWHUPLWWHQW
FXVWRPHURUGULYDELOLW\SUREOHPVPD\RFFXU
2EVHUYHWKH'7&LQIRUPDWLRQDQGWKHGDWDGLVSOD\
(VSHFLDOO\IRUDQLQWHUPLWWHQWIDLOXUHLWLVQHFHVVDU\
9HULI\WKHV\PSWRPVDQGFRQGLWLRQVUHSRUWHGE\WKH
WRYHULI\E\UHSURGXFLQJWKHFRQGLWLRQVRIWKH
FXVWRPHU
FXVWRPHUFRPSODLQW
8VHDFKHFNVKHHWRURWKHUPHWKRGWRFKHFNWKHFLUFXLWRU
HOHFWURQLFV\VWHPFRPSRQHQWV $ERXWWKHPDFKLQHUHSDLUYHULILFDWLRQ
,WLVHIIHFWLYHWRXVHWKH2%'V\VWHPFKHFNIRUWKH
,IQRWURXEOHLVGHWHFWHG
PDFKLQHUHSDLUYHULILFDWLRQ
7KLVVLWXDWLRQLQGLFDWHVWKDWWKHPDFKLQHLVGHWHUPLQHGDV
$IWHUWKHUHSDLULVFRPSOHWHGWKHSHUVRQZKRKDV
RSHUDWLQJSURSHUO\7KHFRQGLWLRQUHSRUWHGE\WKH
SHUIRUPHGWKHPDFKLQHGLDJQRVLVVKDOOUHYLHZHLWKHUWKH
FXVWRPHUPD\EHQRUPDO&KHFNWKHFXVWRPHUFRPSODLQW
'7&WKDWZDVGLDJQRVHGRUWKHVFDQWRROGDWDRUERWK
E\FRPSDULQJWRRWKHUPDFKLQHVWKDWDUHRSHUDWLQJ
DQGUHFRUGLW
SURSHUO\+RZHYHUGHSHQGLQJRQWKHFRQGLWLRQLWPD\EH
&OHDUWKH'7&
LQWHUPLWWHQW%HIRUHUHWXUQLQJWKHPDFKLQHFKHFNWKH
5XQWKHPDFKLQHEDVHGRQWKHVFDQWRROGDWD
FRPSODLQWXQGHUWKHFRQGLWLRQVJLYHQE\WKHFXVWRPHU
&KHFNWKH'7&VWDWXVLQIRUPDWLRQRIWKHVSHFLILHG'7&
,QYHVWLJDWHWKHFRPSODLQWDJDLQ
WKDWZDVGLDJQRVHGXQWLOWKHGLDJQRVLVWHVWUHODWHGWRWKDW
,IWKHFRPSODLQWFDQQRWEHDGHTXDWHO\GHWHFWHGRU
'7&LVLPSOHPHQWHGE\WKHFRQWUROXQLW
FKHFNHGLWLVQHFHVVDU\WRSHUIRUPWKHGLDJQRVLVDJDLQWR
7KHLPSOHPHQWDWLRQRIWKHVHVWHSVLVH[WUHPHO\LPSRUWDQW
YHULI\WKHFRPSODLQW$VVWDWHGDERYHLQ,QWHUPLWWHQW
ZKHQFKHFNLQJWKHUHSDLUVWDWXVZLWKWKH2%'V\VWHP
WKHFRPSODLQWPD\EHDQLQWHUPLWWHQWRUQRUPDOFRQGLWLRQ
FKHFN1HJOHFWLQJWRLPSOHPHQWWKHVHVWHSVPD\UHVXOWLQ
5HSDLUDQGYHULI\
XQQHFHVVDU\UHSDLUV
3HUIRUPWKHUHSDLUZKHQWKHFDXVHKDVEHHQFKHFNHG
&KHFNWKDWWKHRSHUDWLRQLVSHUIRUPHGSURSHUO\DQGWKDW )LQDOFKHFNLWHPOLVW
WKHV\PSWRPKDVEHHQFRUUHFWHG7KLVLQFOXGHVWKH
YHULILFDWLRQWHVWSHUIRUPHGRQWKHPDFKLQHRURWKHU
PHWKRGVWRFKHFNWKDWWKHFRPSODLQWKDVEHHQUHVROYHG
%0DLQWHQDQFH,QIRUPDWLRQ/(
)XHO)LOWHU3UHVVXUH6HQVRU N3D^SVL`
7XUERFKDJHU'ULYH'XW\ 㸣
7DUJHW)XHO,QMHFWLRQ4XDQWLW\ PPVW
6WDUW2I3LORW,QMHFWLRQ &$
7DUJHW)XHO5DLO3UHVVXUH P3D^SVL`
7DUJHW7XUERFKDUJHU3RVLWLRQ 㸣
7DUJHW(*59DOYH3RVLWLRQ 㸣
7DUJHW0DQLIROG$EVROXWH3UHVVXUH N3D^SVL`
(QJLQH5SP2YHUUXQ&RXQW &RXQWV
&RRODQW2YHUWHPSHUDWXUH&RXQW &RXQWV
,QWDNH$LU2YHUWHPSHUDWXUH&RXQW &RXQWV
)XHO2YHUWHPSHUDWXUH&RXQW &RXQWV
530/LPLW5HVHUYH&RXQW
6&96ZHHS6ZLWFK 212))
&$17LPHRXW6WRS6ZLWFK 212))
0HPRU\&OHDU6ZLWFK 212))
5HJXODWLRQ6HOHFW6ZLWFK 212))
/RDG6ZLWFK 212))
0RGH6ZLWFK 212))
0RGH6ZLWFK 212))
0RGH6ZLWFK 212))
2LO3UHVVXUH6HQVRU9ROWDJH 9
(QJLQH2LO3UHVVXUH N3D^SVL`
0DQLIROG$EVROXWH7HPSHUDWXUH ℃^)`
0DQLIROG$EVROXWH7HPSHUDWXUH&RXQW
(*57HPSHUDWXUH&RXQW
4/LPLW0D[ PPVW
4/LPLW0LQ PPVW
2LO3UHVVXUH(PHUJHQF\6WRS6WDWXV
2YHU5XQ(PHUJHQF\6WRS6WDWXV
2YHU+HDW(PHUJHQF\6WRS6WDWXV
(QJLQH6WRS6WDWXV
(QJLQH6WRS&$16LJQDO
(QJLQH6WRS6ZLWFK
(QJLQH6WRS5HTXHVW
(QJLQH6KXWRII6WDWXV
)XQFWLRQDO,QVSHFWLRQ/(&
'HVFULSWLRQ(QJLQH
)XQFWLRQDO,QVSHFWLRQ
/(
7DEOHRI&RQWHQWV
(QJLQHFRPSUHVVLRQSUHVVXUHLQVSHFWLRQ&
)XHOV\VWHPFKHFN&
$LULQWDNHV\VWHPFKHFN&
([KDXVWV\VWHPFKHFN&
(*5FRQWUROV\VWHPFKHFN&
6WDUWLQJV\VWHPFKHFN&
*ORZFRQWUROV\VWHPFKHFN&
2%'V\VWHPFKHFN&
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKWLOOXPLQDWLRQ
FLUFXLWV\VWHP&
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKWEOLQNLQJ
FLUFXLWV\VWHP&
,QVSHFWLRQRIWKHVWDUWHUFLUFXLWV\VWHP&
&)XQFWLRQDO,QVSHFWLRQ/(
(QJLQHFRPSUHVVLRQSUHVVXUHLQVSHFWLRQ
(QJLQHFRPSUHVVLRQSUHVVXUHLQVSHFWLRQLQVSHFWLRQ
6WDUWWKHHQJLQH
1RWH㸸
࣭ :DUPXSWKHHQJLQH
7XUQ2))WKHLJQLWLRQVZLWFK
'LVFRQQHFWWKHEDWWHU\JURXQGFDEOHIURPWKHEDWWHU\
5HPRYHWKHKDUQHVVFRQQHFWRUIURPWKHLQMHFWRU
5HPRYHWKHJORZSOXJIURPWKHF\OLQGHUKHDG
1RWH㸸
࣭ 5HPRYHDOOWKHJORZSOXJV
&RQQHFWWKHEDWWHU\JURXQGFDEOHWRWKHEDWWHU\
(QJDJHWKHVWDUWHU
1RWH㸸
&RPSUHVVLRQJDXJH
࣭ &UDQNWKHHQJLQHWRGLVFKDUJHIRUHLJQPDWHULDO
&RPSUHVVLRQJDXJHDGDSWHU
IURPLQVLGHWKHF\OLQGHUV
,QVWDOOWKHVSHFLDOWRROWRWKHF\OLQGHUKHDG 0HDVXUHWKHFRPSUHVVLRQSUHVVXUH
1RWH㸸 1RWH㸸
࣭ ,QVHUWWKHFRPSUHVVLRQJDXJHDGDSWHULQWRWKH ࣭ (QJDJHWKHVWDUWHUDQGUHDGWKHFRPSUHVVLRQ
JORZSOXJLQVWDOODWLRQKROHDQGLQVWDOOWKH SUHVVXUHZKHQWKHFRPSUHVVLRQJDXJHQHHGOH
FRPSUHVVLRQJDXJH VWDELOL]HV
࣭ 0HDVXUHWKHFRPSUHVVLRQSUHVVXUHRIDOO
F\OLQGHUV
YDOXHV㸸03D^SVL`(QJLQHVSHHGUPLQ
OLPLW㸸03D^SVL`(QJLQHVSHHGUPLQ
1RWH㸸
࣭ &\OLQGHUGLIIHUHQFHVDUHOHVVWKDQRUHTXDOWR
667FRPSUHVVLRQJDXJHDGDSWHU 㸣RIWKHDYHUDJHYDOXH
&DXWLRQ㸸
࣭ 8VHDIXOO\FKDUJHGEDWWHU\
࣭ %HFDUHIXOEHFDXVHDLUZLOOEXUVWRXWWKURXJK
WKHJORZSOXJKROHGXULQJURWDWLRQ
࣭ %HFDXVHD'7&LVUHFRUGHGZKHQWKHLJQLWLRQ
VZLWFKLVWXUQHG21ZLWKWKHLQMHFWRUKDUQHVV
FRQQHFWRUUHPRYHGPDNHVXUHWRFOHDUWKH
667㸦㸧FRPSUHVVLRQ '7&DIWHUFRPSOHWLRQRILQVSHFWLRQ
JDXJH
5HPRYHWKHVSHFLDOWRROIURPWKHF\OLQGHUKHDG
'LVFRQQHFWWKHEDWWHU\JURXQGFDEOHIURPWKHEDWWHU\
,QVWDOOWKHJORZSOXJWRWKHF\OLQGHUKHDGDVVHPEO\
1RWH㸸
࣭ ,QVWDOODOOWKHJORZSOXJV
WLJKWHQLQJWRUTXH㸸1࣭P^NJI࣭POE࣭IW`
)XQFWLRQDO,QVSHFWLRQ/(&
&RQQHFWWKHKDUQHVVFRQQHFWRUWRWKHLQMHFWRU
&RQQHFWWKHEDWWHU\JURXQGFDEOHWRWKHEDWWHU\
&)XQFWLRQDO,QVSHFWLRQ/(
)XHOV\VWHPFKHFN
)XHOV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ
7KHIXHOV\VWHPFRQVLVWVRIWKHIXHOWDQNIXHOILOWHU
VXSSO\SXPSFRPPRQUDLOIXHOUDLODQGLQMHFWRUVZLWK
HDFKFRPSRQHQWEHLQJFRQQHFWHGE\WKHIXHOSLSH
)XHOV\VWHPFKHFNLQVSHFWLRQ
,QVSHFWLRQZKHQWKHUHPD\EHDPDOIXQFWLRQLQWKHIXHO
V\VWHP
,QVSHFWWKHIXHOTXDOLW\
7KHDSSURSULDWHIXHOVKRXOGEHXVHG
&KHFNWKHIXHODPRXQW
7KHDPRXQWVXSSOLHGPXVWEHVXIILFLHQW
,QVSHFWWKHIXHOGLVFKDUJHRIWKHVXSSO\SXPS
7KHIXHOGLVFKDUJHVKRXOGEHQRUPDODQGWKHUHVKRXOGEH
QRDLULQWUXVLRQ
&KHFNZKHWKHUDQ\ILOWHURWKHUWKDQDJHQXLQHIXHO
ILOWHUSUHILOWHUDQGHOHFWURPDJQHWLFSXPSILOWHUKDV
EHHQDGGHGWRWKHIXHOSLSHRIWKHPDFKLQH
1RWH㸸
࣭ $QDGGLWLRQDOILOWHULQFUHDVHVWKHIXHO
UHVLVWDQFHDQGPD\FDXVH'7&3WREH
GHWHFWHG
,IDILOWHUKDVEHHQDGGHGUHPRYHLW
,QVSHFWWKHPDLQIXHOILOWHUWKHSUHIXHOILOWHUDQGWKH
HOHFWURPDJQHWLFSXPSILOWHU
࣭7KHUHVKRXOGEHQRH[FHVVLYHFRQWDPLQDWLRQRU
FORJJLQJ
࣭7KHUHVKRXOGEHQRDLULQWUXVLRQ
,IDSUREOHPLVIRXQGFOHDQRUUHSODFH
,QVSHFWWKHIXHOSLSH
7KHUHVKRXOGEHQRGDPDJHFORJJLQJRUSRRU
FRQQHFWLRQV
,IDSUREOHPLVIRXQGUHSDLURUUHSODFH
,QVSHFWWKHIXHOWDQN
࣭7KHUHVKRXOGEHQRLQWUXVLRQRIGLUW
࣭7KHUHVKRXOGEHQRGLVFRQQHFWLRQRUGDPDJHWRWKHIXHO
VXSSO\SLSH
࣭7KHUHVKRXOGEHQRFUXVKLQJRUGDPDJHWRWKHWDQN
࣭7KHUHVKRXOGEHQRLQFRUUHFWSLSLQJRIWKHIXHOSLSH
࣭7KHUHVKRXOGEHQRFORJJLQJLQWKHIXHOILOOHU
࣭7KHUHVKRXOGEHQRZDWHULQWKHWDQN
,IDSUREOHPLVIRXQGUHSDLURUUHSODFHWKHIXHOWDQN
5HPRYHWKHDLU
5HPRYHWKHDLU
)XQFWLRQDO,QVSHFWLRQ/(&
$LULQWDNHV\VWHPFKHFN
$LULQWDNHV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ
&DXWLRQ㸸
࣭ ,IWKHDLULQWDNHV\VWHPSDUWVZHUHLQVWDOOHGE\
WKHPDFKLQHPDQXIDFWXUHUUHIHUWRWKH
PDFKLQHPDQXDO
7KHDLULQWDNHV\VWHPFRQVLVWVRIWKHDLUFOHDQHUDLULQWDNH
SLSHWXUERFKDUJHUDQGRWKHUFRPSRQHQWV7KHLQWDNHDLU
LVVXSSOLHGWRWKHHQJLQHWKURXJKWKHDLUFOHDQHUDQGWKH
LQWDNHFKDPEHU
$LULQWDNHV\VWHPFKHFNLQVSHFWLRQ
,QVSHFWLRQZKHQWKHUHPD\EHDPDOIXQFWLRQLQWKHDLU
LQWDNHV\VWHP
,QVSHFWWKHDLUFOHDQHU
࣭7KHUHVKRXOGEHQRH[FHVVLYHFRQWDPLQDWLRQRU
FORJJLQJ
,IDSUREOHPLVIRXQGFOHDQRUUHSODFH
,QVSHFWWKHDLULQWDNHSLSH
࣭7KHUHVKRXOGEHQRFROODSVLQJGDPDJHRUDLUOHDNDJH
࣭7KHUHVKRXOGEHQREHQGLQJRULQDSSURSULDWHSLSLQJ
ZKLFKPD\OHDGWRLQFUHDVHGDLULQWDNHUHVLVWDQFH
࣭7KHUHVKRXOGEHQRGDPDJHRQWKHOHDGYDOYH
,IDSUREOHPLVIRXQGUHSDLURUUHSODFH
,QVSHFWWKHWXUERFKDUJHU
࣭7KHUHVKRXOGEHQRDEQRUPDOORRVHQHVVZLWKWKHWXUELQH
VKDIW
࣭7KHUHVKRXOGEHQRRLOOHDNDJH
,IDSUREOHPLVIRXQGUHSDLURUUHSODFH
&)XQFWLRQDO,QVSHFWLRQ/(
([KDXVWV\VWHPFKHFN
([KDXVWV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ
7KHH[KDXVWV\VWHPFRQVLVWVRIWKHH[KDXVWSLSHWDLOSLSH
HWF
([KDXVWV\VWHPFKHFNLQVSHFWLRQ
,QVSHFWLRQZKHQWKHUHPD\EHDPDOIXQFWLRQLQWKH
H[KDXVWV\VWHP
,QVSHFWWKHH[KDXVWSLSHDQGWKHWDLOSLSH
࣭7KHUHVKRXOGEHQRFROODSVLQJGDPDJHRUH[KDXVW
OHDNDJH
,IDSUREOHPLVIRXQGUHSDLURUUHSODFH
5HSDLUWKHPDFKLQH
)XQFWLRQDO,QVSHFWLRQ/(&
(*5FRQWUROV\VWHPFKHFN
(*5FRQWUROV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ 5HIHUWR(QJLQH+$X[(PLVVLRQ&RQWURO
'HYLFHV/((*5YDOYHLQVWDOODWLRQ
7KH(&0FRQWUROVWKH(*5YDOYHEDVHGRQWKHHQJLQH
VSHHGHQJLQHFRRODQWWHPSHUDWXUHLQWDNHDLUWHPSHUDWXUH
IXHOLQMHFWLRQTXDQWLW\DQGEDURPHWULFSUHVVXUH7KH(*5
YDOYHLVGULYHQE\WKH(*5PRWRUDQGWKH(*5YDOYH
RSHQLQJLVGHWHFWHGE\WKH(*5SRVLWLRQVHQVRU
(*5FRQWUROV\VWHPFKHFNLQVSHFWLRQ
,QVSHFWLRQZKHQWKHUHPD\EHDPDOIXQFWLRQLQORFDWLRQV
UHODWLQJWRWKH(*5
2EVHUYHWKH'7&LQIRUPDWLRQ
1RWH㸸
࣭ ,ID'7&LVVHWLQVSHFWWKHDSSOLFDEOH'7&
6WDUWDQGZDUPXSWKHHQJLQHXQWLOWKHFRRODQW
WHPSHUDWXUHUHDFKHVWKHVSHFLILHGYDOXHRUPRUH
YDOXHV㸸℃^)`
2EVHUYHWKH(*5SRVLWLRQGLVSOD\RQWKHWURXEOH
GLDJQRVLVVFDQWRRO
YDOXHV㸸WR
3HUIRUPWKHDFWXDWRUWHVW(*5FRQWUROXVLQJDWURXEOH
GLDJQRVLVVFDQWRROLIWKH(*5SRVLWLRQGLVSOD\LV
RXWVLGHWKHVSHFLILHGUDQJH
&RPPDQGWKH(*5YDOYH8SDQG'RZQDQG
REVHUYHWKH(*5SRVLWLRQGLVSOD\
1RWH㸸
࣭ 7KHGLIIHUHQFHEHWZHHQWKHGHVLUHG(*5YDOYH
SRVLWLRQGLVSOD\DQGWKH(*5YDOYHSRVLWLRQ
GLVSOD\PXVWEHZLWKLQWKHVSHFLILHGUDQJHRI
YDOXHV
6SHFLILHGYDOXH㸸WR
,IWKH(*5SRVLWLRQGLVSOD\LVRXWVLGHWKHVSHFLILHG
UDQJHLQVSHFWWKH(*5SLSLQJ
7KHUHVKRXOGEHQRGDPDJHRUJDVOHDN
,IDSUREOHPLVIRXQGUHSDLURUUHSODFH
6WDUWDQGZDUPXSWKHHQJLQHXQWLOWKHFRRODQW
WHPSHUDWXUHUHDFKHVWKHVSHFLILHGYDOXHRUPRUH
YDOXHV㸸℃^)`
2EVHUYHWKH(*5SRVLWLRQGLVSOD\RQWKHWURXEOH
GLDJQRVLVVFDQWRRO
YDOXHV㸸WR
,IWKH(*5SRVLWLRQGLVSOD\LVRXWVLGHWKHVSHFLILHG
UDQJHUHSODFHWKH(*5YDOYH
5HIHUWR(QJLQH+$X[(PLVVLRQ&RQWURO
'HYLFHV/((*5YDOYHUHPRYDO
&)XQFWLRQDO,QVSHFWLRQ/(
6WDUWLQJV\VWHPFKHFN
6WDUWLQJV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ 1RWH㸸
7KLVGLDJQRVWLFWDEOHLVDQRUJDQL]HGDSSURDFKWR ࣭ ,IWKHUHDGLQJLVOHVVWKDQWKHVSHFLILHGYDOXH
LGHQWLI\LQJDFRQGLWLRQWKDWFDXVHVDQHQJLQHQRWWRVWDUW FUDQNWKHHQJLQHIRUVHFRQGVZKLOH
7KHDSSURSULDWHV\VWHPGLDJQRVWLFFDQEHSHUIRUPHG REVHUYLQJWKH6&9GULYLQJIHHGEDFNFXUUHQW
XVLQJWKHGLDJQRVWLFWDEOH GLVSOD\RQWKHVFDQWRRO
7KHEDWWHU\VKRXOGEHIXOO\FKDUJHGZKHQSHUIRUPLQJWKLV YDOXHV㸸P$
GLDJQRVWLF 1RWH㸸
7KHEDWWHU\FDEOHVKRXOGEHVHFXUHO\FRQQHFWHGZKHQ
࣭ ,IWKHUHDGLQJLVOHVVWKDQWKHVSHFLILHGYDOXH
SHUIRUPLQJWKLVGLDJQRVWLF
LQVSHFWWKHFLUFXLWEHWZHHQWKH(&0DQGWKH
7KHURWDWLRQVSHHGGXULQJFUDQNLQJVKRXOGEHQRUPDO
6&9IRUDVKRUWWR*1'
ZKHQSHUIRUPLQJWKLVGLDJQRVWLF
7KHDSSURSULDWHIXHOVKRXOGEHVXIILFLHQWO\VXSSOLHGZKHQ 5HSODFHWKH)53VHQVRU
SHUIRUPLQJWKLVGLDJQRVWLF
1RWH㸸
1RIXHOOHDNVVKRXOGEHIRXQGZKHQSHUIRUPLQJWKLV
GLDJQRVWLF ࣭ %HFDXVHWKH)53VHQVRUFDQQRWEHUHSODFHG
1RDLUVKRXOGEHPL[HGLQWRWKHIXHOZKHQSHUIRUPLQJ LQGLYLGXDOO\UHSODFHWKHFRPPRQUDLOIXHOUDLO
WKLVGLDJQRVWLF DVVHPEO\
7KHDLUFOHDQHUHOHPHQWVKRXOGEHFOHDQZKHQSHUIRUPLQJ 5HIHUWR(QJLQH&)XHO6\VWHP/(&RPPRQ
WKLVGLDJQRVWLF UDLODVVHPEO\UHPRYDO
7KHIXHOILOWHUVKRXOGEHFOHDQZKHQSHUIRUPLQJWKLV
GLDJQRVWLF 5HIHUWR(QJLQH&)XHO6\VWHP/(&RPPRQ
7KHIXVHDQGVORZEORZIXVHVKRXOGEHQRUPDOZKHQ UDLODVVHPEO\LQVWDOODWLRQ
SHUIRUPLQJWKLVGLDJQRVWLF ,QVSHFWWKHHQJLQHFRRODQWWHPSHUDWXUHVHQVRU
6WDUWLQJV\VWHPFKHFNLQVSHFWLRQ 5HIHUWR(QJLQH'&RROLQJ/((QJLQHFRRODQW
,QVSHFWLRQZKHQWKHVWDUWHURSHUDWHVDQGFUDQNVEXWWKH WHPSHUDWXUHVHQVRULQVSHFWLRQ
HQJLQHGRHVQRWVWDUW ,QVSHFWWKHEDURPHWULFSUHVVXUHVHQVRU
7XUQ2))WKHLJQLWLRQVZLWFKIRUVHFRQGV ,QVSHFWWKHERRVWSUHVVXUHVHQVRUERRVWWHPSHUDWXUH
6WDUWWKHHQJLQHIRUVHFRQGV VHQVRU
*ORZFRQWUROV\VWHPFKHFN
*ORZFRQWUROV\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ YDOXHV㸸ȍ$WURRPWHPSHUDWXUH
&DXWLRQ㸸 1RWH㸸
࣭ )RUERWKWKHVWDUWHU(&0FRQWUROVSHFLILFDWLRQ ࣭ ,IWKHUHDGLQJLVQRWWKHVSHFLILHGYDOXHLQVSHFW
DQGWKHVDIHW\UHOD\VSHFLILFDWLRQWKH426 WKHDSSOLFDEOHJORZSOXJ
FLUFXLWLVWKHVDPH
,IDSUREOHPLVIRXQGUHSODFHWKHJORZSOXJ
7KH426V\VWHPFRQVLVWVRIWKH(&0JORZUHOD\JORZ
&RQQHFWWKH'00EHWZHHQWKHJORZSOXJFRQQHFWRU
SOXJDQG426LQGLFDWRUOLJKW:KHQWKHLJQLWLRQVZLWFK
DQG*1'
LVWXUQHG21XQGHUORZHQJLQHFRRODQWWHPSHUDWXUHVWKH
(&0GHWHUPLQHVWKHJORZWLPHDFFRUGLQJWRWKHHQJLQH 7XUQ21WKHLJQLWLRQVZLWFK
FRRODQWWHPSHUDWXUHDQGRSHUDWHVWKHJORZUHOD\DQG 3HUIRUPWKHDFWXDWRUWHVWJORZSOXJUHOD\XVLQJD
426LQGLFDWRUOLJKW7KH(&0ZLOOWXUQ2))WKHJORZ WURXEOHGLDJQRVLVVFDQWRRO
UHOD\DQGWKH426LQGLFDWRUOLJKWDIWHUDFHUWDLQSHULRGRI
WLPH 1RWH㸸
*ORZFRQWUROV\VWHPFKHFNLQVSHFWLRQ ࣭ &RPPDQG2))DQGREVHUYHWKHYROWDJH
GLVSOD\RQWKH'00
,QVSHFWLRQZKHQWKHUHPD\EHDPDOIXQFWLRQLQORFDWLRQV
UHODWLQJWRWKH426V\VWHPFRQWURO YDOXHV㸸9
2%'V\VWHPFKHFN
2%'V\VWHPFKHFNGHVFULSWLRQRIIXQFWLRQ ࣭ ,IWKHGLDJQRVWLFOLJKWGRHVQRWIODVKLQVSHFW
7KH2%'V\VWHPFKHFNLVDV\VWHPDWLFPHWKRGIRU WKHGLDJQRVWLFOLJKWIODVKLQJFLUFXLWV\VWHP
FKHFNLQJSUREOHPVFDXVHGE\DPDOIXQFWLRQLQWKHHQJLQH 2EVHUYHWKH'7&LQIRUPDWLRQRIWKH(&8ZLWK
FRQWUROV\VWHPDQGLVDOVRWKHVWDUWLQJSRLQWIRUDOO ZKLFKWKHWURXEOHGLDJQRVLVVFDQWRROKDVHVWDEOLVKHG
GLDJQRVWLFVIRUGULYDELOLW\FRPSODLQWV%\FRUUHFWO\XVLQJ FRPPXQLFDWLRQ
WKHVHGLDJQRVWLFVWHSVLWLVSRVVLEOHWRUHGXFHWKHWLPHIRU ,IFRPPXQLFDWLRQZLWKWKHWURXEOHGLDJQRVLVVFDQ
GLDJQRVWLFDQGSUHYHQWUHSODFLQJSDUWVWKDWDUHQRW WRROFDQQRWEHHVWDEOLVKHGDPDOIXQFWLRQKDV
GHIHFWLYH RFFXUUHGLQWKHFRPPXQLFDWLRQFLUFXLWEHWZHHQWKH
1RWH㸸 (&0DQGWKHWURXEOHGLDJQRVLVVFDQWRRO
࣭ ,PSRUWDQWSRLQWVWRUHPHPEHUUHJDUGLQJWKH 6WDUWWKHHQJLQH
2%'V\VWHPFKHFN
1RWH㸸
࣭,IWKHUHDUHQRFRPSODLQWVRQGULYDELOLW\GRQRWSHUIRUP ࣭ ,IWKHVWDUWHUGRHVQRWRSHUDWHLQVSHFWVWDUWHU
WKHVHGLDJQRVWLFVWHSVXQOHVVRWKHUZLVHLQVWUXFWHGLQRWKHU FLUFXLWV\VWHP
VHFWLRQV
࣭ ,IWKHHQJLQHGRHVQRWVWDUWREVHUYHWKH'7&
࣭&KHFNIRUUHODWHG6HUYLFH%XOOHWLQVEHIRUHVWDUWLQJWKH
LQIRUPDWLRQ
GLDJQRVWLF
࣭'RQRWFOHDUWKH'7&VXQOHVVLWLVLQVWUXFWHGLQD ࣭ ,ID'7&LVVHWLQVSHFWWKHDSSOLFDEOH'7&
GLDJQRVWLFVWHS ࣭ ,ID'7&LVQRWVHWLQVSHFWWKHVWDUWLQJV\VWHP
࣭,IDPDOIXQFWLRQLVIRXQGLQWKHHQJLQHVWDUWLQJV\VWHP &KHFNIRUHQJLQHVWDOOLQJ
LQVSHFWWKHVWDUWLQJV\VWHP
࣭7KHEDWWHU\VKRXOGEHIXOO\FKDUJHG &KHFNIRUHQJLQHKXQWLQJRUURXJKLGOLQJ
࣭7KHEDWWHU\FDEOHVKRXOGEHQRUPDODQGVHFXUHO\ &KHFNIRUODFNRIHQJLQHSRZHUIDLOXUHV
FRQQHFWHG
࣭7KH*1'RIWKH(&0VKRXOGEHVHFXUHO\FRQQHFWHGWR &KHFNIRUHQJLQHVWDUWLQJIDLOXUHV
WKHFRUUHFWSRVLWLRQ &KHFNIRUDEQRUPDOQRLVH
࣭7KH(&0KDUQHVVFRQQHFWRUVKRXOGEHFOHDQDQG
FRUUHFWO\FRQQHFWHG &KHFNIRUH[FHVVLYHIXHOFRQVXPSWLRQIDLOXUHV
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKWLOOXPLQDWLRQFLUFXLWV\VWHP
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKW
LOOXPLQDWLRQFLUFXLWV\VWHPGHVFULSWLRQRIIXQFWLRQ
3RZHUVXSSO\YROWDJHLVSURYLGHGWRWKHGLDJQRVWLFOLJKW
YLDWKHLJQLWLRQVZLWFKDQGWKHOLJKWLOOXPLQDWHVEDVHGRQ
WKHVLJQDOIURPWKH(&07KH(&0LOOXPLQDWHVWKH
GLDJQRVWLFOLJKWGXULQJWKHOLJKWFKHFNDWWKHWLPHWKH
LJQLWLRQVZLWFKLVWXUQHG21RUZKHQWKH'7&LVVHW7KH
GLDJQRVWLFOLJKWDOVRIODVKHVLQDFFRUGDQFHZLWKWKH
GHWHFWHG'7&LIWKH'/&ERG\JURXQGDQGWKHGLDJQRVWLF
VZLWFKWHUPLQDODUHVKRUWHG$PRQLWRUFLUFXLWLV
LQFRUSRUDWHGLQVLGHWKH(&0DQGWKLVFLUFXLWPRQLWRUV
WKHRSHUDWLRQRIWKHOLJKW
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKW
LOOXPLQDWLRQFLUFXLWV\VWHPLQVSHFWLRQ
,QVSHFWLRQZKHQWKHGLDJQRVWLFOLJKWGRHVQRWLOOXPLQDWH
ZKHQWKHLJQLWLRQVZLWFKLVWXUQHG21
3HUIRUPWKH2%'V\VWHPFKHFN
,QVSHFWWKHGLDJQRVWLFOLJKWEXOE
,IDSUREOHPLVIRXQGUHSODFHWKHEXOE
,QVSHFWWKHGLDJQRVWLFOLJKWFLUFXLW
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWRUKLJKUHVLVWDQFH
EHWZHHQWKHIXVHDQGWKHGLDJQRVWLFOLJKW
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWRUKLJKUHVLVWDQFH
EHWZHHQWKHGLDJQRVWLFOLJKWDQGWKH(&0
,IDSUREOHPLVIRXQGUHSDLUWKHFLUFXLW
5HSODFHWKH(&0
5HIHUWR(QJLQH-(OHFWULFDO/(
(&0UHPRYDO
5HIHUWR(QJLQH-(OHFWULFDO/(
(&0LQVWDOODWLRQ
$IWHUUHSODFLQJWKH(&0VHWWKHLQMHFWRU,'FRGH
&)XQFWLRQDO,QVSHFWLRQ/(
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKWEOLQNLQJFLUFXLWV\VWHP
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKW 5HIHUWR(QJLQH-(OHFWULFDO/(
EOLQNLQJFLUFXLWV\VWHPGHVFULSWLRQRIIXQFWLRQ (&0UHPRYDO
3RZHUVXSSO\YROWDJHLVSURYLGHGWRWKHGLDJQRVWLFOLJKW 5HIHUWR(QJLQH-(OHFWULFDO/(
YLDWKHLJQLWLRQVZLWFKDQGWKHOLJKWLOOXPLQDWHVEDVHGRQ (&0LQVWDOODWLRQ
WKHVLJQDOIURPWKH(&07KH(&0LOOXPLQDWHVWKH
$IWHUUHSODFLQJWKH(&0VHWWKHLQMHFWRU,'FRGH
GLDJQRVWLFOLJKWGXULQJWKHOLJKWFKHFNDWWKHWLPHWKH
LJQLWLRQVZLWFKLVWXUQHG21RUZKHQWKH'7&LVVHW7KH 7XUQ21WKHLJQLWLRQVZLWFK
GLDJQRVWLFOLJKWDOVRIODVKHVLQDFFRUGDQFHZLWKWKH
6KRUWWKHERG\JURXQGWHUPLQDODQGGLDJQRVWLF
GHWHFWHG'7&LIWKH'/&ERG\JURXQGDQGWKHGLDJQRVWLF
VZLWFKWHUPLQDORIWKH'/&
VZLWFKWHUPLQDODUHVKRUWHG$PRQLWRUFLUFXLWLV
LQFRUSRUDWHGLQVLGHWKH(&0DQGWKLVFLUFXLWPRQLWRUV &KHFNLIWKHGLDJQRVWLFOLJKWLVIODVKLQJ
WKHRSHUDWLRQRIWKHZDUQLQJOLJKW 3HUIRUPWKH2%'V\VWHPFKHFN
,QVSHFWLRQRIWKHGLDJQRVWLFOLJKWZDUQLQJOLJKW
EOLQNLQJFLUFXLWV\VWHPLQVSHFWLRQ
,QVSHFWLRQZKHQWKHGLDJQRVWLFOLJKWUHPDLQV21ZLWKRXW
IODVKLQJZKHQWKHGLDJQRVWLFVZLWFKLVWXUQHG21
3HUIRUPWKH2%'V\VWHPFKHFN
7XUQ2))WKHLJQLWLRQVZLWFK
&RQQHFWWKH'00EHWZHHQWKH'/&GLDJQRVWLF
VZLWFKWHUPLQDODQG*1'
7XUQ21WKHLJQLWLRQVZLWFK
9HULI\WKDWWKHYROWDJHGLVSOD\HGRQWKH'00LV
PRUHWKDQRUHTXDOWRWKHVSHFLILHGYDOXH
YDOXHV㸸9
,IWKHUHDGLQJLVOHVVWKDQWKHVSHFLILHGYDOXHLQVSHFW
WKHGLDJQRVWLFVZLWFKFLUFXLWEHWZHHQWKH(&0DQG
WKH'/&XVLQJD'00
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWRUKLJKUHVLVWDQFH
6SHFLILHGYDOXHȍRUOHVV
࣭7KHUHVKRXOGEHQRVKRUWWR*1'
6SHFLILHGYDOXH0ȍRUPRUH
,IDSUREOHPLVIRXQGUHSDLU
7XUQ2))WKHLJQLWLRQVZLWFK
&KHFNWKDWWKHUHLVFRQWLQXLW\EHWZHHQWKH'/&ERG\
JURXQGDQG*1'
7XUQ21WKHLJQLWLRQVZLWFK
6KRUWWKH'/&
1RWH㸸
࣭ 6KRUWWHUPLQDOV1RDQG1R
&KHFNLIWKHGLDJQRVWLFOLJKWLVIODVKLQJ
1RWH㸸
࣭ ,ILWGRHVQRWIODVKLQVSHFWWKHGLDJQRVWLFOLJKW
IODVKLQJFLUFXLWV\VWHP
5HSODFHWKH(&0
)XQFWLRQDO,QVSHFWLRQ/(&
,QVSHFWLRQRIWKHVWDUWHUFLUFXLWV\VWHP
,QVSHFWLRQRIWKHVWDUWHUFLUFXLWV\VWHPGHVFULSWLRQRI ࣭7KHUHVKRXOGEHQRRSHQFLUFXLWEHWZHHQWKHVWDUWHU
IXQFWLRQ UHOD\DQGWKHVWDUWHU
7KH(&0WXUQV21WKHVWDUWHUUHOD\ZKHQWKHLJQLWLRQ ,IDSUREOHPLVIRXQGUHSDLUWKHFLUFXLW
VZLWFKLVSODFHGLQWKH67$57SRVLWLRQ:KHQWKHVWDUWHU
,QVSHFWWKHVWDUWHU
UHOD\LVWXUQHG21WKHVWDUWHULVDFWLYDWHGWRVWDUWWKH
HQJLQH 5HIHUWR(QJLQH-(OHFWULFDO/(6WDUWHU
PRWRULQVSHFWLRQ
,QVSHFWLRQRIWKHVWDUWHUFLUFXLWV\VWHPLQVSHFWLRQ
,IDSUREOHPLVIRXQGUHSODFHWKHVWDUWHU
,QVSHFWLRQZKHQWKHVWDUWHUGRHVQRWRSHUDWH
5HSODFHWKH(&0
7XUQ2))WKHHPHUJHQF\VWRSVZLWFK
5HIHUWR(QJLQH-(OHFWULFDO/(
1RWH㸸
(&0UHPRYDO
࣭ 'RQRWSHUIRUPWKLVRSHUDWLRQLIWKHPDFKLQH
GRHVQRWKDYHDQHPHUJHQF\VWRSVZLWFK 5HIHUWR(QJLQH-(OHFWULFDO/(
VHWWLQJ (&0LQVWDOODWLRQ
1RWH㸸
࣭ ,I'7&V33RU3DUHVHW
LQVSHFWWKHDSSOLFDEOH'7&
7XUQ2))WKHLJQLWLRQVZLWFK
5HPRYHWKHVWDUWHUFXWUHOD\
,QVSHFWWKHVWDUWHUFXWUHOD\
࣭&KHFNFRQWLQXLW\EHWZHHQWKHVZLWFKVLGHWHUPLQDOV
6SHFLILHGYDOXHȍRUOHVV
,IDSUREOHPLVIRXQGUHSODFHWKHUHOD\
5HPRYHWKHVWDUWHUUHOD\
,QVSHFWWKHVWDUWHUUHOD\
࣭&RQQHFWWKHEDWWHU\EHWZHHQWKHFRLOVLGHWHUPLQDOVWR
FKHFNFRQWLQXLW\EHWZHHQWKHVZLWFKVLGHWHUPLQDOV
6SHFLILHGYDOXHȍRUOHVV
,IDSUREOHPLVIRXQGUHSODFHWKHUHOD\
,QVSHFWWKHLJQLWLRQVZLWFKVWDUWVLJQDOFLUFXLW
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWRUKLJKUHVLVWDQFH
EHWZHHQWKHLJQLWLRQVZLWFKDQGWKH(&0
6SHFLILHGYDOXHȍRUOHVV
࣭7KHUHVKRXOGEHQRVKRUWWR*1'EHWZHHQWKHLJQLWLRQ
VZLWFKDQGWKH(&0
6SHFLILHGYDOXH0ȍRUPRUH
,IDSUREOHPLVIRXQGUHSDLUWKHFLUFXLW
,QVSHFWWKHVWDUWHUFLUFXLW
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWEHWZHHQWKHLJQLWLRQ
VZLWFKDQGWKHVWDUWHUFXWUHOD\
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWEHWZHHQWKHVWDUWHUFXW
UHOD\DQGWKHVWDUWHUUHOD\
࣭7KHUHVKRXOGEHQRRSHQFLUFXLWEHWZHHQWKHVWDUWHU
UHOD\DQG*1'
6\PSWRP/('
'HVFULSWLRQ(QJLQH
6\PSWRP
/(
7DEOHRI&RQWHQWV
(QJLQHVWDUWIDLOXUH'
(QJLQHVWDOOLQJ'
(QJLQHKXQFKLQJURXJKLGOLQJ'
([FHVVLYHZKLWHVPRNHLQWKHH[KDXVWJDV'
([FHVVLYHEODFNVPRNHLQWKHH[KDXVWJDV'
$EQRUPDOQRLVH'
/DUJHIXHOFRQVXPSWLRQ'
/DUJHRLOFRQVXPSWLRQ'
,QVXIILFLHQWHQJLQHRXWSXW'
'6\PSWRP/(
(QJLQHVWDUWIDLOXUH
(QJLQHVWDUWIDLOXUHGHVFULSWLRQRIV\PSWRP 0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
7KHFUDQNLQJVSHHGLVORZ
7KHFUDQNLQJVSHHGLVQRUPDOEXWWKHHQJLQHGRHVQRW
VWDUW
7KHHQJLQHVWDUWVEXWWKHHQJLQHVSHHGFDQQRWEHKHOG
VWDEOHRUHOVHGRHVQRWUHYXS
(QJLQHVWDUWIDLOXUHGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
&KHFNWKHPDFKLQHVLGHIRUH[FHVVLYHORDGV
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
࣭'LDJQRVWLFDLGV
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO 0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
࣭9LVXDOLQVSHFWLRQ
PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP PDOIXQFWLRQV
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW 0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDVILOWHU
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH FORJJLQJDQGDLULQWDNHSLSHPDOIXQFWLRQV
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV 7KHXVHRINHURVHQHRURWKHUORZYLVFRVLW\IXHOZLOO
:KHWKHUWKHUHLVGLUWRUFORJJLQJRIWKHIXHOILOWHU DFFHOHUDWHZHDUDQGRWKHUSUREOHPVRIWKHVXSSO\SXPS
:KHWKHUWKHUHDUHSRRUFRQQHFWLRQVDWWKHFRQQHFWRUV SOXQJHUSRVVLEO\UHVXOWLQJLQLQVXIILFLHQWIXHOGLVFKDUJH
(VSHFLDOO\IRUWKH&.3VHQVRUDQGWKH&03VHQVRU DQGHQJLQHVWDUWIDLOXUH,QWKLVFDVHLWLVQHFHVVDU\WR
:KHWKHUWKHEDWWHU\WHUPLQDOYROWDJHKDVGURSSHG UHSODFHWKHVXSSO\SXPS
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG ,IDQHQJLQHVWDUWIDLOXUHRFFXUVFKHFNWKHIXHOWKDWWKH
GLVFRQQHFWLRQV FXVWRPHUXVHV,IORZYLVFRVLW\IXHOVXFKDVNHURVHQHLV
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV XVHGWKHIDLOXUHZLOORFFXUDJDLQDIWHUUHSODFLQJWKH
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH VXSSO\SXPS$GYLVHWKHFXVWRPHUQRWWRXVHDQ\ORZ
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG YLVFRVLW\IXHO
WRWKHFRUUHFWSRVLWLRQ 2LOEOHQGVRIORQJWHUPVWRUDJHIXHODQGELRIXHO
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO FRQWDLQLQJRUJDQLFVXEVWDQFHVDUHHDVLO\R[LGL]HG
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\ 2[LGL]HGIXHOZLOOSURPRWHZHDURIWKHSDUWVUHODWHGWR
FKHFNIRUDQ\OHDNVRUFORJJLQJ WKHFDPVKDIWLQWKHVXSSO\SXPSFDXVLQJHQJLQHVWDUW
:KHWKHUVWUXFWXUHVLQWKHOD\RXWRIWKHIXHOILOWHUSUH IDLOXUHVGXHWRLQVXIILFLHQWGLVFKDUJH,QWKLVFDVHLWLV
ILOWHUDQGHOHFWURPDJQHWLFSXPSPD\FDXVHDLUWR QHFHVVDU\WRUHSODFHWKHVXSSO\SXPS
DFFXPXODWH &KDUJHVIRUVXSSO\SXPSUHSODFHPHQWGXHWRXVHRIRLO
,VX]XJHQXLQHSUHILOWHUVKDYHQRDLUUHPRYDOSOXJVR EOHQGVRIIXHODIWHUORQJVWRUDJHSHULRGVDQGELRIXHO
FKHFNZKHWKHUWKHOD\RXWPD\FDXVHDLUWRDFFXPXODWH FRQWDLQLQJRUJDQLFVXEVWDQFHVZLOOEHLQFXUUHG
$OVRFKHFNZKHWKHUWKHOD\RXWRIWKHHOHFWURPDJQHWLF 7KHUHIRUHDGYLVHFXVWRPHUVQRWWRXVHVXFKRLO
SXPSLQOHWDQGRXWOHWLVDSSURSULDWH0RGLI\DQ\OD\RXW :KHQXVLQJIXHOFRQWDLQLQJODUJHDPRXQWVRIZDWHUDGGD
ZKHUHWKHLQOHWLVSRVLWLRQHGRQWKHXSSHUSDUWRIWKH ODUJHVL]HVHGLPHQWHUWRWKHSUHIXHOILOWHUWRSUHYHQW
HOHFWURPDJQHWLFSXPSRUWKHRXWOHWLVSRVLWLRQHGWRZDUG ZDWHUIURPHQWHULQJWKHIXHOV\VWHP
WKHGLUHFWLRQLQZKLFKWKHPDFKLQHPRYHV 0DOIXQFWLRQVLQWKHVXSSO\SXPSDODFNRIIXHOSUHVVXUH
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH IHHG
SLSHVLQWKHIXHOV\VWHP 7KH(&0GRHVQRWVHWWKH'7&IRUDODFNRIIXHOSUHVVXUH
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV IHHGIURPWKHVXSSO\SXPSXQOHVVWKHHQJLQHVSHHGLV
6\PSWRP/('
UPLQRUOHVVDQGWKHDEVROXWHSUHVVXUHLV03D^ 'HFUHDVHLQV\VWHPSHUIRUPDQFHGXHWRDIDLOXUH
NJIFPSVL`RUOHVVIRUVHFRQGVRUPRUH 0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVVHL]XUH
7KHUHIRUHLIWKHHQJLQHGRHVQRWVWDUWGXHWRDODFNRIIXHO LQVXIILFLHQWFRPSUHVVLRQSUHVVXUHDQGRWKHUPHFKDQLFDO
SUHVVXUHIHHGIURPWKHVXSSO\SXPSD'7&ZLOOQRWEH IDLOXUHV
VHW )DLOXUHRIWKH$&*
)DLOXUHVUHODWHGWRHTXLSPHQWRQWKHPDFKLQHVLGHVXFKDV
1RWH㸸
K\GUDXOLFSXPSV
࣭ 0DOIXQFWLRQVLQWKH&.3VHQVRUFDQQRWEH (IIHFWVRIDIWHUPDUNHWHOHFWULFDOFRPSRQHQWVVXFKDV
GLDJQRVHGZLWKRXWFUDQNLQJUHYROXWLRQVRU ZLUHOHVVGHYLFHVDQGOLJKWV
PRUHVRFUDQNIRUVHFRQGVRUPRUHDWU )DLOXUHRIWKH(&0
PLQRUPRUH &KHFNIRUSRRUFRQQHFWLRQVDWWKHFRQQHFWRUDQGIRU
,QFDVHRI&.3VHQVRUIDLOXUHDWORZHQJLQH PDOIXQFWLRQVVXFKDVDEUDVLRQRUEHQGVDWWKHKDUQHVV
VSHHGV&.3VHQVRU'7&VPD\QRWEHVHW,Q &KHFNWKDWWKHZLUHLQVLGHWKHKDUQHVVKDVQRWFRPHORRVH
FDVHRIDQLQWHUPLWWHQWIDLOXUHHWFUDLVHWKH DQGFDXVHGDVKRUWFLUFXLWZLWKRWKHUFLUFXLWV3HUIRUP
HQJLQHVSHHGWR1R/RDG0D[DQGFKHFN IXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKHRSHUDWLRQ
ZKHWKHU'7&VUHODWHGWRWKH&.3VHQVRUDUH DQGFRQWUROHWFRIHDFKSDUW5HSDLULIDPDOIXQFWLRQLV
VHW GHWHFWHG
(QJLQHVWDOOLQJ
(QJLQHVWDOOLQJGHVFULSWLRQRIV\PSWRP HOHFWURPDJQHWLFSXPSRUWKHRXWOHWLVSRVLWLRQHGWRZDUG
WKHGLUHFWLRQLQZKLFKWKHPDFKLQHPRYHV
7KHHQJLQHFUDQNVEXWGRHVQRWVWDUWXQWLODIWHUDQ
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
H[WHQGHGSHULRGRIWLPH7KHHQJLQHGRHVHYHQWXDOO\UXQ
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
RUVWDUWVEXWVRRQVWRSV
(QJLQHVWDOOLQJGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
&KHFNWKHPDFKLQHVLGHIRUH[FHVVLYHORDGV
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
0DOIXQFWLRQVLQWKH&.3VHQVRUFDQQRWEHGLDJQRVHG
ZLWKRXWFUDQNLQJUHYROXWLRQVRUPRUHVRFUDQNIRU
VHFRQGVRUPRUHDWUPLQRUPRUH
'7&YHULILFDWLRQ
,QFDVHRI&.3VHQVRUIDLOXUHDWORZHQJLQHVSHHGV&.3
VHQVRU'7&VPD\QRWEHVHW,QFDVHRIDQLQWHUPLWWHQW
IDLOXUHHWFUDLVHWKHHQJLQHVSHHGWR1R/RDG0D[DQG
FKHFNZKHWKHU'7&VUHODWHGWRWKH&.3VHQVRUDUHVHW
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
࣭'LDJQRVWLFDLGV
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO 0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
9HULI\WKDWWKHIXHOWDQNKDVHQRXJKIXHO IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
࣭9LVXDOLQVSHFWLRQ
PDOIXQFWLRQV
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP 0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDVILOWHU
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW FORJJLQJDQGDLULQWDNHSLSHPDOIXQFWLRQV
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH 0DOIXQFWLRQVLQWKHVXSSO\SXPSDODFNRIIXHOSUHVVXUH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV IHHG
:KHWKHUWKHUHDUHSRRUFRQQHFWLRQVDWWKHFRQQHFWRUV 7KH(&0GRHVQRWVHWWKH'7&IRUDODFNRIIXHOSUHVVXUH
(VSHFLDOO\IRUWKH&.3VHQVRUDQGWKH&03VHQVRU IHHGIURPWKHVXSSO\SXPSXQOHVVWKHHQJLQHVSHHGLV
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG UPLQRUOHVVDQGWKHDEVROXWHSUHVVXUHLV03D^
GLVFRQQHFWLRQV NJIFPSVL`RUOHVVIRUVHFRQGVRUPRUH
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV 7KHUHIRUHLIWKHHQJLQHGRHVQRWVWDUWGXHWRDODFNRIIXHO
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH SUHVVXUHIHHGIURPWKHVXSSO\SXPSD'7&ZLOOQRWEH
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG VHW
WRWKHFRUUHFWSRVLWLRQ
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
:KHWKHUVWUXFWXUHVLQWKHOD\RXWRIWKHIXHOILOWHUSUH
ILOWHUDQGHOHFWURPDJQHWLFSXPSPD\FDXVHDLUWR
DFFXPXODWH
,VX]XJHQXLQHSUHILOWHUVKDYHQRDLUUHPRYDOSOXJVR
FKHFNZKHWKHUWKHOD\RXWPD\FDXVHDLUWRDFFXPXODWH
$OVRFKHFNZKHWKHUWKHOD\RXWRIWKHHOHFWURPDJQHWLF
SXPSLQOHWDQGRXWOHWLVDSSURSULDWH0RGLI\DQ\OD\RXW
ZKHUHWKHLQOHWLVSRVLWLRQHGRQWKHXSSHUSDUWRIWKH
6\PSWRP/('
(QJLQHKXQFKLQJURXJKLGOLQJ
(QJLQHKXQFKLQJURXJKLGOLQJGHVFULSWLRQRIV\PSWRP
7KHUHLVYDULDWLRQLQWKHHQJLQHLGOLQJVSHHGRUWKHHQJLQH
LGOLQJVSHHGFKDQJHV7KHHQJLQHRUPDFKLQHPD\VKDNH
LQVHYHUHVLWXDWLRQV,QHLWKHUFDVHLIWKHSUREOHP
ZRUVHQVLWPD\FDXVHHQJLQHVWDOOLQJ
(QJLQHKXQFKLQJURXJKLGOLQJGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO
࣭9LVXDOLQVSHFWLRQ ࣭'LDJQRVWLFDLGV
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP 0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV PDOIXQFWLRQV
:KHWKHUWKHUHDUHSRRUFRQQHFWLRQVDWWKHFRQQHFWRUV 0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDVILOWHU
:KHWKHUWKHEDWWHU\WHUPLQDOYROWDJHKDVGURSSHG FORJJLQJDQGDLULQWDNHSLSHPDOIXQFWLRQV
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG 0DOIXQFWLRQVLQWKHVXSSO\SXPSDODFNRIIXHOSUHVVXUH
GLVFRQQHFWLRQV IHHG
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV 0DOIXQFWLRQVLQWKHLQSXWFLUFXLWV\VWHPRIVZLWFKHV
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH 0DOIXQFWLRQVLQWKHDFFHOHUDWRUSRVLWLRQVHQVRUKDUQHVV
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG HQJLQHFRRODQWWHPSHUDWXUHVHQVRUHWFRIWKHVHQVRU
WRWKHFRUUHFWSRVLWLRQ LQSXWFLUFXLWV\VWHP
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO 0DOIXQFWLRQVLQWKHDFFHOHUDWRUSRVLWLRQVHQVRUV\VWHP
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\ 0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVVHL]XUH
FKHFNIRUDQ\OHDNVRUFORJJLQJ LQVXIILFLHQWFRPSUHVVLRQSUHVVXUHDQGRWKHUPHFKDQLFDO
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH IDLOXUHV
SLSHVLQWKHIXHOV\VWHP )DLOXUHVUHODWHGWRHTXLSPHQWRQWKHPDFKLQHVLGHVXFKDV
:KHWKHUVWUXFWXUHVLQWKHOD\RXWRIWKHIXHOILOWHUSUH K\GUDXOLFSXPSV
ILOWHUDQGHOHFWURPDJQHWLFSXPSPD\FDXVHDLUWR (IIHFWVRIDIWHUPDUNHWHOHFWULFDOFRPSRQHQWVVXFKDV
DFFXPXODWH ZLUHOHVVGHYLFHVDQGOLJKWV
&KHFNIRUSRRUFRQQHFWLRQVDWWKHFRQQHFWRUDQGIRU
,VX]XJHQXLQHSUHILOWHUVKDYHQRDLUUHPRYDOSOXJVR PDOIXQFWLRQVVXFKDVDEUDVLRQRUEHQGVDWWKHKDUQHVV
FKHFNZKHWKHUWKHOD\RXWPD\FDXVHDLUWRDFFXPXODWH &KHFNWKDWWKHZLUHLQVLGHWKHKDUQHVVKDVQRWFRPHORRVH
$OVRFKHFNZKHWKHUWKHOD\RXWRIWKHHOHFWURPDJQHWLF DQGFDXVHGDVKRUWFLUFXLWZLWKRWKHUFLUFXLWV3HUIRUP
SXPSLQOHWDQGRXWOHWLVDSSURSULDWH0RGLI\DQ\OD\RXW IXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKHRSHUDWLRQ
ZKHUHWKHLQOHWLVSRVLWLRQHGRQWKHXSSHUSDUWRIWKH DQGFRQWUROHWFRIHDFKSDUW5HSDLULIDPDOIXQFWLRQLV
HOHFWURPDJQHWLFSXPSRUWKHRXWOHWLVSRVLWLRQHGWRZDUG GHWHFWHG
WKHGLUHFWLRQLQZKLFKWKHPDFKLQHPRYHV
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
6\PSWRP/('
([FHVVLYHZKLWHVPRNHLQWKHH[KDXVWJDV
([FHVVLYHZKLWHVPRNHLQWKHH[KDXVWJDVGHVFULSWLRQ (QJLQHERG\IDLOXUHVXFKDVLQVXIILFLHQWFRPSUHVVLRQ
RIV\PSWRP SUHVVXUHSLVWRQUHODWHGIDLOXUHWXUERFKDUJHUIDLOXUHRUD
GHFUHDVHRULQFUHDVHLQRLO
+HDY\ZKLWHVPRNHLVSURGXFHGGXULQJRSHUDWLRQ
)DLOXUHRIWKH(&0
([FHVVLYHZKLWHVPRNHLQWKHH[KDXVWJDVGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO
࣭9LVXDOLQVSHFWLRQ
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
:KHWKHUWKHUHDUHSRRUFRQQHFWLRQVDWWKHFRQQHFWRUV
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG
GLVFRQQHFWLRQV
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG
WRWKHFRUUHFWSRVLWLRQ
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
࣭'LDJQRVWLFDLGV
)XHOTXDOLW\ZKHQXVLQJDSURGXFWZLWKDORZFHWDQH
YDOXHDSURGXFWRWKHUWKDQWKRVHVSHFLILHGHWF
,INHURVHQHRURWKHUORZYLVFRVLW\IXHOVDUHXVHG
DEQRUPDOZHDURIWKHLQMHFWRUVHDWZLOORFFXUUHVXOWLQJLQ
DEQRUPDOLQMHFWLRQDQGSRVVLEO\SURGXFLQJZKLWHVPRNH
,QWKLVFDVHLWLVQHFHVVDU\WRUHSODFHWKHLQMHFWRUV
%HFDXVHFKDUJHVZLOOEHLQFXUUHGIRULQMHFWRUUHSODFHPHQW
UHTXLUHGGXHWRWKHXVHRINHURVHQHRURWKHUORZYLVFRVLW\
IXHOLQVWUXFWWKHFXVWRPHUQRWWRXVHNHURVHQHRURWKHU
ORZYLVFRVLW\IXHO
,GOLQJIRUDORQJSHULRGRIWLPH
)DLOXUHRIWKHHQJLQHFRRODQWWHPSHUDWXUHVHQVRUIXHO
WHPSHUDWXUHVHQVRUERRVWWHPSHUDWXUHVHQVRUERRVW
SUHVVXUHVHQVRURUEDURPHWULFSUHVVXUHVHQVRU
'6\PSWRP/(
([FHVVLYHEODFNVPRNHLQWKHH[KDXVWJDV
([FHVVLYHEODFNVPRNHLQWKHH[KDXVWJDVGHVFULSWLRQ
RIV\PSWRP
+HDY\EODFNVPRNHLVSURGXFHGGXULQJRSHUDWLRQ
([FHVVLYHEODFNVPRNHLQWKHH[KDXVWJDVGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
&KHFNZLWKWKHFXVWRPHUWRYHULW\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO
࣭9LVXDOLQVSHFWLRQ
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
:KHWKHUWKHUHLVGLUWRUFORJJLQJRIWKHDLUFOHDQHU
HOHPHQW
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG
GLVFRQQHFWLRQV
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG
WRWKHFRUUHFWSRVLWLRQ
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
࣭'LDJQRVWLFDLGV
)XHOTXDOLW\ZKHQXVLQJDSURGXFWRWKHUWKDQWKRVH
VSHFLILHGHWF
$LULQWDNHV\VWHPPDOIXQFWLRQVVXFKDVILOWHUFORJJLQJRU
DLULQWDNHSLSHPDOIXQFWLRQV
(*5FRQWUROV\VWHPPDOIXQFWLRQ
([KDXVWV\VWHPPDOIXQFWLRQVXFKDVDQH[KDXVWSLSH
PDOIXQFWLRQ
(QJLQHFRRODQWWHPSHUDWXUHVHQVRUPDOIXQFWLRQ
%RRVWSUHVVXUHVHQVRUIDLOXUH
(QJLQHERG\IDLOXUHVXFKDVLQVXIILFLHQWFRPSUHVVLRQ
SUHVVXUHSLVWRQUHODWHGIDLOXUHWXUERFKDUJHUIDLOXUHRUDQ
LQFUHDVHLQRLO
6\PSWRP/('
$EQRUPDOQRLVH
$EQRUPDOQRLVHGHVFULSWLRQRIV\PSWRP DQGFRQWUROHWFRIHDFKSDUW5HSDLULIDPDOIXQFWLRQLV
GHWHFWHG
7KHHQJLQHFRPEXVWLRQVRXQGLVDEQRUPDO
$EQRUPDOQRLVHGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
5HIHUWRWKHPDFKLQHPDQXDODQGLQVSHFWIRUDEQRUPDO
VRXQGV
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO
࣭9LVXDOLQVSHFWLRQ
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG
GLVFRQQHFWLRQV
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG
WRWKHFRUUHFWSRVLWLRQ
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
࣭'LDJQRVWLFDLGV
0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
PDOIXQFWLRQV
0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDV(*5YDOYH
PDOIXQFWLRQV
0DOIXQFWLRQVLQWKHLQMHFWRUIDLOXUHWRLQMHFWIXHO
0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVVHL]XUH
LQVXIILFLHQWFRPSUHVVLRQSUHVVXUHDQGRWKHUPHFKDQLFDO
IDLOXUHV
)DLOXUHVUHODWHGWRHTXLSPHQWRQWKHPDFKLQHVLGHVXFKDV
K\GUDXOLFSXPSV
)DLOXUHRIWKH(&0
&KHFNIRUSRRUFRQQHFWLRQVDWWKHFRQQHFWRUDQGIRU
PDOIXQFWLRQVVXFKDVDEUDVLRQRUEHQGVDWWKHKDUQHVV
&KHFNWKDWWKHZLUHLQVLGHWKHKDUQHVVKDVQRWFRPHORRVH
DQGFDXVHGDVKRUWFLUFXLWZLWKRWKHUFLUFXLWV3HUIRUP
IXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKHRSHUDWLRQ
'6\PSWRP/(
/DUJHIXHOFRQVXPSWLRQ
/DUJHIXHOFRQVXPSWLRQGHVFULSWLRQRIV\PSWRP :KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG
WRWKHFRUUHFWSRVLWLRQ
)XHOFRQVXPSWLRQLVVLJQLILFDQWO\JUHDWHUWKDQGHVFULEHG
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
LQWKHPDQXDOIRUWKHPDFKLQH
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
/DUJHIXHOFRQVXPSWLRQGLDJQRVWLFV FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
࣭3UHOLPLQDU\LQVSHFWLRQ
SLSHVLQWKHIXHOV\VWHP
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV 0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ 0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
%HFDXVHIXHOFRQVXPSWLRQVLJQLILFDQWO\YDULHVGHSHQGLQJ
࣭'LDJQRVWLFDLGV
RQKRZWKHPDFKLQHLVRSHUDWHGYHULI\WKHHVWLPDWHGIXHO
FRQVXPSWLRQ$SURYLGHGE\WKHPDFKLQHPDQXIDFWXUHU 0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
(VWLPDWHGIXHOFRQVXPSWLRQ/^TWV`SHUKRXU IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
&KHFNWKHDFWXDOIXHOFRQVXPSWLRQ%$FWXDOIXHO PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
FRQVXPSWLRQ/^TWV`SHUKRXU PDOIXQFWLRQV
,I%LVODUJHUWKDQ$UHIHUWRWKHPDFKLQHLQVWUXFWLRQ 0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDV(*5YDOYH
PDQXDODQGFKHFNWKHPDFKLQHVHWWLQJV PDOIXQFWLRQV
&KHFNWKHPDFKLQHIRUH[FHVVLYHORDGV 0DOIXQFWLRQVRIWKHLQMHFWRUVVXFKDVH[FHVVLYHIXHO
5HIHUWRWKHLQVSHFWLRQDQGPDLQWHQDQFHOLVWLQWKH LQMHFWLRQTXDQWLW\
LQVWUXFWLRQPDQXDOWRFRQGXFWLQVSHFWLRQVFRUUHVSRQGLQJ 0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVVHL]XUH
WRRSHUDWLRQWLPHRIWKHPDFKLQH LQVXIILFLHQWFRPSUHVVLRQSUHVVXUHDQGRWKHUPHFKDQLFDO
$VIRUPDFKLQHVZLWKRSHUDWLQJWLPHVH[FHHGLQJ IDLOXUHV
KRXUVUHIHUWRWKHPDFKLQHLQVWUXFWLRQPDQXDOWRFRQGXFW )DLOXUHVUHODWHGWRHTXLSPHQWRQWKHPDFKLQHVLGHVXFKDV
LQVSHFWLRQ K\GUDXOLFSXPSV
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\ )DLOXUHRIWKH(&0
'7&YHULILFDWLRQ &KHFNIRUSRRUFRQQHFWLRQVDWWKHFRQQHFWRUDQGIRU
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG PDOIXQFWLRQVVXFKDVDEUDVLRQRUEHQGVDWWKHKDUQHVV
V\PSWRP &KHFNWKDWWKHZLUHLQVLGHWKHKDUQHVVKDVQRWFRPHORRVH
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ DQGFDXVHGDVKRUWFLUFXLWZLWKRWKHUFLUFXLWV3HUIRUP
WKHVSHFLILHGHQJLQHRLODQGIXHO IXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKHRSHUDWLRQ
&KHFNWKDWUHJXODUPDLQWHQDQFHLQFOXGLQJHQJLQHRLO DQGFRQWUROHWFRIHDFKSDUW5HSDLULIDPDOIXQFWLRQLV
UHSODFHPHQWDLUFOHDQHUILOWHUIXHOILOWHUHWFKDVEHHQ GHWHFWHG
FRQGXFWHG
5HJDUGLQJLQVSHFWLRQORFDWLRQVLQWKHHQJLQHDLULQWDNH
࣭9LVXDOLQVSHFWLRQ DQGH[KDXVWV\VWHPV
,QVSHFWIRUDQ\PDOIXQFWLRQVXFKDVFORJJLQJFROODSVLQJ
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
RUGDPDJHLQWKHDLULQWDNHDQGH[KDXVWV\VWHPV
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
%HVLGHVWKHLQVSHFWLRQORFDWLRQVIRUWKHHQJLQHERG\
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
LQVSHFWWKHDLUFOHDQHUWKHLQWHUFRROHUDQGWKHPXIIOHU
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG
GLVFRQQHFWLRQV
6\PSWRP/('
,QWHJUDWHGR[LGDWLRQFDWDO\VWVLOHQFHU )URPDLUFOHDQHU
([KDXVWSLSH (*5YDOYH
)URPLQWHUFRROHU (*5FRROHU
7RLQWHUFRROHU
'6\PSWRP/(
/DUJHRLOFRQVXPSWLRQ
/DUJHRLOFRQVXPSWLRQGHVFULSWLRQRIV\PSWRP 3HUIRUPIXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKH
RSHUDWLRQFRQWUROHWFRIHDFKSDUW5HSDLULID
2LOFRQVXPSWLRQLVVLJQLILFDQWO\JUHDWHUWKDQGHVFULEHGLQ
PDOIXQFWLRQLVGHWHFWHG
WKHPDQXDOIRUWKHPDFKLQH
/DUJHRLOFRQVXPSWLRQGLDJQRVWLFV
࣭3UHOLPLQDU\LQVSHFWLRQ
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ
%HFDXVHIXHOFRQVXPSWLRQVLJQLILFDQWO\YDULHVGHSHQGLQJ
RQKRZWKHPDFKLQHLVRSHUDWHGYHULI\WKHHVWLPDWHGIXHO
FRQVXPSWLRQ$SURYLGHGE\WKHPDFKLQHPDQXIDFWXUHU
(VWLPDWHGIXHOFRQVXPSWLRQSHUKRXUHVWLPDWHGRLO
FRQVXPSWLRQIRUHQJLQHDORQH/^TWV`SHU
KRXUV
&KHFNWKHDFWXDORLOFRQVXPSWLRQ%$FWXDORLO
FRQVXPSWLRQSHUKRXU
5HIHUWRWKHLQVSHFWLRQDQGPDLQWHQDQFHOLVWLQWKH
LQVWUXFWLRQPDQXDOWRFRQGXFWLQVSHFWLRQVFRUUHVSRQGLQJ
WRRSHUDWLRQWLPHRIWKHPDFKLQH
$VIRUPDFKLQHVZLWKRSHUDWLQJWLPHVH[FHHGLQJ
KRXUVUHIHUWRWKHPDFKLQHLQVWUXFWLRQPDQXDOWRFRQGXFW
LQVSHFWLRQ
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\
'7&YHULILFDWLRQ
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG
V\PSWRP
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ
WKHVSHFLILHGHQJLQHRLODQGIXHO
࣭9LVXDOLQVSHFWLRQ
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
:KHWKHUEOXHZKLWHVPRNHLVHPLWWHGFRQWLQXRXVO\ZKHQ
WKHHQJLQHLVUXQQLQJ
:KHWKHUDODUJHDPRXQWRIEORZE\JDVLVHPLWWHG
:KHWKHUWKHUHLVRLOLQWKHFRRODQW
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRRLO
DQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\FKHFNIRU
DQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHLVDQ\RLOOHDNDJHGDPDJHRUGHQWVRQWKH
SLSHVLQWKHOXEULFDWLQJV\VWHP
0DOIXQFWLRQVLQDLULQWDNHV\VWHPSDUWVUHODWHGWR
WXUERFKDUJHULQVSHFWLRQ
࣭'LDJQRVWLFDLGV
0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDVDGHFUHDVH
LQRLODQLQFUHDVHLQRLODQGH[FHVVLYHEORZE\JDV
0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVRLOEXUQLQJDQG
H[FHVVLYHEORZE\JDV
6\PSWRP/('
,QVXIILFLHQWHQJLQHRXWSXW
,QVXIILFLHQWHQJLQHRXWSXWGHVFULSWLRQRIV\PSWRP 0DOIXQFWLRQVLQWKHIXHOV\VWHPVXFKDVQRIXHOIXHO
IUHH]LQJDLULQWKHIXHOSLSHILOWHUPDOIXQFWLRQVSLSH
7KHHQJLQHRXWSXWLVEHORZWKHSUHGLFWHGRXWSXWWKH
PDOIXQFWLRQVSRRUIXHOTXDOLW\DQGIXHOWDQN
RXWSXWGRHVQRWFKDQJHHYHQZKHQWKHDFFHOHUDWRUOHYHU
PDOIXQFWLRQV
WKURWWOHOHYHULVUDLVHGRUWKHUHVSRQVHLVSRRU
0DOIXQFWLRQVLQWKHDLULQWDNHV\VWHPVXFKDVILOWHU
,QVXIILFLHQWHQJLQHRXWSXWGLDJQRVWLFV FORJJLQJDQGDLULQWDNHSLSHPDOIXQFWLRQV
0DOIXQFWLRQVLQWKHH[KDXVWV\VWHPVXFKDVDQH[KDXVW
࣭3UHOLPLQDU\LQVSHFWLRQ
SLSHPDOIXQFWLRQHWF
%HIRUHXVLQJWKLVVHFWLRQSHUIRUPIXQFWLRQDOLQVSHFWLRQV 0DOIXQFWLRQVLQWKHDFFHOHUDWRUSRVLWLRQVHQVRUKDUQHVV
RU2%'V\VWHPFKHFNVWRFKHFNWKHIROORZLQJ HWFRIWKHVHQVRULQSXWFLUFXLWV\VWHP
7KH(&0DQGGLDJQRVWLFOLJKWDUHRSHUDWLQJSURSHUO\ 0DOIXQFWLRQVLQWKHLQSXWFLUFXLWV\VWHPRIVZLWFKHV
'7&YHULILFDWLRQ 0DOIXQFWLRQVLQWKHHQJLQHERG\VXFKDVLQVXIILFLHQW
7KHVFDQWRROGDWDLVZLWKLQWKHQRUPDORSHUDWLQJUDQJH FRPSUHVVLRQSUHVVXUHYDOYHFOHDUDQFHWXUERFKDUJHU
&KHFNWKHPDFKLQHFRQGLWLRQWRORFDWHWKHLQGLFDWHG VXSSO\SXPSLQMHFWRUFRPPRQUDLOIXHOUDLODQGRWKHU
V\PSWRP PHFKDQLFDOIDLOXUHV
&KHFNZLWKWKHFXVWRPHUWRYHULI\ZKHWKHUWKH\DUHXVLQJ )DLOXUHVUHODWHGWRHTXLSPHQWRQWKHPDFKLQHVLGHVXFKDV
WKHVSHFLILHGHQJLQHRLODQGIXHO K\GUDXOLFSXPSV
9DULRXVFDXVHVDUHFRQFHLYDEOHIRULQVXIILFLHQWRXWSXW (IIHFWVRIDIWHUPDUNHWHOHFWULFDOFRPSRQHQWVVXFKDV
7KHUHIRUHFDUHIXOO\FKHFNWKHHQJLQHERG\DQGLWHPV ZLUHOHVVGHYLFHVDQGOLJKWV
UHODWHGWRWKHPDFKLQH &KHFNIRUSRRUFRQQHFWLRQVDWWKHFRQQHFWRUDQGIRU
&KHFNZKDWNLQGRIRSHUDWLRQVUHVXOWLQLQVXIILFLHQW PDOIXQFWLRQVVXFKDVDEUDVLRQRUEHQGVDWWKHKDUQHVV
RXWSXW &KHFNWKDWWKHZLUHLQVLGHWKHKDUQHVVKDVQRWFRPHORRVH
,ILQVXIILFLHQWRXWSXWSKHQRPHQDLQFOXGHKHVLWDWLRQDQG DQGFDXVHGDVKRUWFLUFXLWZLWKRWKHUFLUFXLWV3HUIRUP
ODJLVVXHVUHODWHGWRWKHPDFKLQHPD\EHLQYROYHG IXQFWLRQDOGLDJQRVWLFLQVSHFWLRQVDQGFKHFNWKHRSHUDWLRQ
&RQWDFWWKHPDFKLQHPDQXIDFWXUHU DQGFRQWUROHWFRIHDFKSDUW5HSDLULIDPDOIXQFWLRQLV
,IDPDOIXQFWLRQGLDJQRVWLFVFDQWRROLVDYDLODEOHWKH GHWHFWHG
HQJLQHRXWSXWDWWKHUDWHGSRLQWFDQEHYHULILHGE\VLPSO\ 'HFUHDVHGRXWSXWGXHWRIXHOIORZUHVWULFWLRQFDXVHGE\
FKHFNLQJWKHERRVWDWWKHUDWHGSRLQW RYHUKHDWLQJ
࣭9LVXDOLQVSHFWLRQ ,QVXIILFLHQWRXWSXWGXHWRIXHOIORZUHVWULFWLRQZKHQ
RSHUDWLQJDWKLJKHOHYDWLRQV
&DUHIXOYLVXDOLQVSHFWLRQLVUHTXLUHGIRUFHUWDLQV\PSWRP
SURFHGXUHV7KLVFDQOHDGWRFRUUHFWLQJDSUREOHPZLWKRXW
IXUWKHULQVSHFWLRQVDQGFDQVDYHYDOXDEOHWLPH
7KHLQVSHFWLRQFRYHUVWKHIROORZLQJLWHPV
:KHWKHUWKHUHLVGLUWRUFORJJLQJRIWKHDLUFOHDQHU
HOHPHQW
&RUUHFWZLULQJFRQQHFWLRQVWLJKWHQLQJDQG
GLVFRQQHFWLRQV
:KHWKHUWKHSRZHUVRXUFHIRUDQ\DIWHUPDUNHWDFFHVVRULHV
LVEHLQJWDNHQIURPWKH(&0SRZHUVRXUFH
:KHWKHUWKH(&0JURXQGLVFOHDQDQGVHFXUHO\LQVWDOOHG
WRWKHFRUUHFWSRVLWLRQ
&UDFNVDQGWZLVWVLQWKHSLSHVDQGKRVHVUHODWHGWRIXHO
DLUDQGRLODQGFRUUHFWFRQQHFWLRQVWKHUHRI([WHQVLYHO\
FKHFNIRUDQ\OHDNVRUFORJJLQJ
:KHWKHUWKHUHDUHDQ\IXHOOHDNVGDPDJHRUGHQWVRQWKH
SLSHVLQWKHIXHOV\VWHP
,QFUHDVHVLQUHVLVWDQFHGXHWRGLUWDQGFORJJLQJLQDLU
LQWDNHV\VWHPSDUWVHVSHFLDOO\WKHDLUFOHDQHUHOHPHQWRU
WRFROODSVLQJRIWKHDLULQWDNHSLSLQJ
0DOIXQFWLRQVLQH[KDXVWV\VWHPSDUWV
࣭'LDJQRVWLFDLGV
'7&,QIRUPDWLRQ/((
'HVFULSWLRQ(QJLQH
'7&,QIRUPDWLRQ
/(
7DEOHRI&RQWHQWV
'7&3)ODVK&RGH&UDQNVKDIW3RVLWLRQ&DPVKDIW '7&3)ODVK&RGH7XUERFKDUJHU%RRVW6HQVRU
3RVLWLRQ&RUUHODWLRQ( &LUFXLW+LJK(
'7&3)ODVK&RGH)XHO5DLO6\VWHP3UHVVXUH '7&3)ODVK&RGH&UDQNVKDIW3RVLWLRQ6HQVRU
7RR/RZ( &LUFXLW(
'7&3)ODVK&RGH)XHO3UHVVXUH5HJXODWRU '7&3)ODVK&RGH&UDQNVKDIW3RVLWLRQ6HQVRU
3HUIRUPDQFH( &LUFXLW5DQJH3HUIRUPDQFH(
'7&3)ODVK&RGH)XHO3UHVVXUH5HJXODWRU '7&3)ODVK&RGH&DPVKDIW3RVLWLRQ6HQVRU
&RQWURO&LUFXLW/RZ( &LUFXLW(
'7&3)ODVK&RGH)XHO3UHVVXUH5HJXODWRU '7&3)ODVK&RGH*ORZ3OXJ&LUFXLW(
&RQWURO&LUFXLW+LJK( '7&3)ODVK&RGH([KDXVW*DV5HFLUFXODWLRQ
'7&3)ODVK&RGH)XHO6\VWHP/HDN'HWHFWHG &RQWURO&LUFXLW5DQJH3HUIRUPDQFH(
( '7&3)ODVK&RGH([KDXVW*DV5HFLUFXODWLRQ
'7&3)ODVK&RGH,QWDNH$LU7HPSHUDWXUH6HQVRU 6HQVRU&LUFXLW(
&LUFXLW/RZ( '7&3&)ODVK&RGH,QWDNH0DQLIROG7HPSHUDWXUH
'7&3)ODVK&RGH,QWDNH$LU7HPSHUDWXUH6HQVRU 6HQVRU&LUFXLW+LJK(
&LUFXLW+LJK( '7&3')ODVK&RGH,QWDNH0DQLIROG7HPSHUDWXUH
'7&3)ODVK&RGH(QJLQH&RRODQW7HPSHUDWXUH 6HQVRU&LUFXLW/RZ(
6HQVRU&LUFXLW/RZ( '7&3)ODVK&RGH(QJLQH2LO3UHVVXUH6HQVRU
'7&3)ODVK&RGH(QJLQH&RRODQW7HPSHUDWXUH 3HUIRUPDQFH(
6HQVRU&LUFXLW+LJK( '7&3)ODVK&RGH2LO3UHVVXUH6HQVRU&LUFXLW
'7&3)ODVK&RGH)XHO7HPSHUDWXUH6HQVRU /RZ,QSXW(
&LUFXLW/RZ( '7&3)ODVK&RGH2LO3UHVVXUH6HQVRU&LUFXLW
'7&3)ODVK&RGH)XHO7HPSHUDWXUH6HQVRU +LJK,QSXW(
&LUFXLW+LJK( '7&3)ODVK&RGH6\VWHP9ROWDJH+LJK(
'7&3)ODVK&RGH)XHO5DLO3UHVVXUH6HQVRU '7&3)ODVK&RGH,QWHUQDO&RQWURO0RGXOH
&LUFXLW/RZ( 0HPRU\&KHFN6XP(UURU(
'7&3)ODVK&RGH)XHO5DLO3UHVVXUH6HQVRU '7&3)ODVK&RGH&RQWURO0RGXOH
&LUFXLW+LJK( 3URJUDPPLQJ(UURU(
'7&3)ODVK&RGH,QMHFWRU&LUFXLW&\OLQGHU '7&3)ODVK&RGH,QWHUQDO&RQWURO0RGXOH
( 5DQGRP$FFHVV0HPRU\5$0(
'7&3)ODVK&RGH,QMHFWRU&LUFXLW&\OLQGHU '7&3)ODVK&RGH(&03&03URFHVVRU (
(
'7&3%)ODVK&RGH,QWHUQDO&RQWURO0RGXOH$'
'7&3)ODVK&RGH,QMHFWRU&LUFXLW&\OLQGHU 3URFHVVLQJ3HUIRUPDQFH(
(
'7&3)ODVK&RGH6WDUWHU5HOD\&LUFXLW(
'7&3)ODVK&RGH,QMHFWRU&LUFXLW&\OLQGHU
( '7&3)ODVK&RGH6HQVRU5HIHUHQFH9ROWDJH
&LUFXLW(
'7&3)ODVK&RGH(QJLQH&RRODQW2YHU
7HPSHUDWXUH&RQGLWLRQ( '7&3)ODVK&RGH6HQVRU5HIHUHQFH9ROWDJH
&LUFXLW(
'7&3)ODVK&RGH(QJLQH2YHUVSHHG&RQGLWLRQ
( '7&3)ODVK&RGH(&03&03RZHU5HOD\
&RQWURO&LUFXLW2SHQ(
'7&3)ODVK&RGH7XUERFKDUJHU%RRVW6HQVRU
&LUFXLW/RZ(
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
&UDQNVKDIW3RVLWLRQ&DPVKDIW3RVLWLRQ&RUUHODWLRQ
'7&3GHVFULSWLRQRI'7&
7KH&.3VHQVRULVLQVWDOOHGRQWKHULJKWUHDURIWKH
F\OLQGHUEORFN7KHVHQVRUURWRULVIL[HGRQWKH
FUDQNVKDIW7KHUHDUHQRWFKHVVSDFHGDSDUWDQGD
RSHQLQJ7RSGHDGFHQWHURIF\OLQGHU1RFDQEH
GHWHFWHGWKURXJKWKLVRSHQLQJ
7KH&03VHQVRULVLQVWDOOHGRQWKHWLPLQJJHDUFDVH7KH
&03VHQVRUGHWHFWVSURWUXVLRQVLQWRWDOSHUHQJLQH
URWDWLRQ7KHFDPVKDIWJHDUKDVSURWUXVLRQVHYHQO\
VSDFHGDSDUWDQGUHIHUHQFHSURWUXVLRQ%\GHWHFWLQJ
WKHRSHQLQJZLWKWKH&.3VHQVRUDQGWKHUHIHUHQFH
SURWUXVLRQZLWKWKH&03VHQVRUWKH(&0GHWHUPLQHV
FRPSUHVVLRQWRSGHDGFHQWHURIF\OLQGHU1RWRYHULI\
WKDWWKH\FRUUHODWHZLWKHDFKRWKHU,IWKH(&0GHWHFWV
WKDWERWKVLJQDOVDUHRXWRIV\QFKURQL]DWLRQWKH'7&LV
VHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V33DQG3DUHQRWVHW
7KHLJQLWLRQVZLWFKLV21
7KHVLJQDOSXOVHRIWKH&.3VHQVRULVGHWHFWHG
7KHVLJQDOSXOVHRIWKH&03VHQVRULVGHWHFWHG
7KH(&0GHWHFWVWKDWWKH&.3VHQVRUVLJQDODQGWKH
&03VHQVRUVLJQDODUHQRWV\QFKURQL]HGZKLOHWKHHQJLQH
LVUXQQLQJ
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
)XHO5DLO6\VWHP3UHVVXUH7RR/RZ
'7&3GHVFULSWLRQRI'7&
$W\SLFDOFRPPRQUDLOIXHOUDLOV\VWHPLVFRPSRVHGRI
WKHIROORZLQJIXHOSUHVVXUHVHFWLRQV$VXFWLRQVLGH
EHWZHHQWKHIXHOWDQNDQGWKHVXSSO\SXPSDQGDKLJK
SUHVVXUHVLGHEHWZHHQWKHVXSSO\SXPSDQGWKHLQMHFWRUV
7KHIXHOLVGUDZQIURPWKHIXHOWDQNDQGWKHQSXPSHG
LQWRWKHFRPPRQUDLOIXHOUDLOE\SOXQJHUVWKDWDUH
ORFDWHGLQVLGHWKHVXSSO\SXPS7KHFRPPRQUDLOIXHO
UDLOSUHVVXUHLVFRQWUROOHGE\WKH(&0FRQWUROOLQJWKH
VXFWLRQFRQWUROYDOYHEDVHGRQVLJQDOVIURPWKHFRPPRQ
UDLOIXHOUDLOSUHVVXUHVHQVRU,IWKHFRPPRQUDLOIXHO
UDLOSUHVVXUHEHFRPHVH[FHVVLYHWKHFRPPRQUDLOIXHO
UDLOSUHVVXUHOLPLWHUYDOYHRSHQVWRUHOHDVHWKHH[FHVVLYH
SUHVVXUHDQGUHWXUQVWKHIXHOWRWKHIXHOWDQN7KH(&0
VHWVWKH'7&LIWKHFRPPRQUDLOIXHOUDLOSUHVVXUH
VKDUSO\GHFUHDVHVDIWHUWKHSUHVVXUHJRHVH[FHVVLYHO\
KLJK7KLV'7&GHWHFWVDFWLYDWLRQRIWKHSUHVVXUHOLPLWHU
YDOYH
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHSUHVVXUHOLPLWHUYDOYHLV
DFWLYDWHGZLWKH[FHVVLYHSUHVVXUHRI03D^NJI
FPSVL`RUPRUHLQWKHFRPPRQUDLOIXHOUDLO
IRUVHFRQGRUPRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
)XHO3UHVVXUH5HJXODWRU3HUIRUPDQFH
'7&3GHVFULSWLRQRI'7&
$W\SLFDOFRPPRQUDLOIXHOUDLOV\VWHPLVFRPSRVHGRI
WKHIROORZLQJIXHOSUHVVXUHVHFWLRQV$VXFWLRQVLGH
EHWZHHQWKHIXHOWDQNDQGWKHVXSSO\SXPSDQGDKLJK
SUHVVXUHVLGHEHWZHHQWKHVXSSO\SXPSDQGWKHLQMHFWRUV
7KHIXHOLVGUDZQIURPWKHIXHOWDQNDQGWKHQSXPSHG
LQWRWKHFRPPRQUDLOIXHOUDLOE\SOXQJHUVWKDWDUH
ORFDWHGLQVLGHWKHVXSSO\SXPS7KHFRPPRQUDLOIXHO
UDLOSUHVVXUHLVFRQWUROOHGE\WKH(&0FRQWUROOLQJWKH
VXFWLRQFRQWUROYDOYHEDVHGRQVLJQDOVIURPWKHFRPPRQ
UDLOIXHOUDLOSUHVVXUHVHQVRU,IWKH(&0GHWHFWVWKDWWKH
IXHOSUHVVXUHLVKLJKHUWKDQWKHGHVLUHGIXHOSUHVVXUHWKLV
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V333333
333DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
7KH(&0GHWHFWVWKDWWKHFRPPRQUDLOIXHOUDLOSUHVVXUH
LVPRUHWKDQWKHGHVLUHGIXHOSUHVVXUHE\03D^
NJIFPSVL`RUPRUHIRUVHFRQGVRUPRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
$GHIDXOWEDURPHWULFSUHVVXUHYDOXHLVDVVXPHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
)XHO3UHVVXUH5HJXODWRU&RQWURO&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHVXFWLRQFRQWUROYDOYHLVLQVWDOOHGRQWKHVXSSO\SXPS
DQGFRQWUROVWKHIXHODPRXQWVXFNHGLQWRWKHFRPPRQUDLO
IXHOUDLO7KHVXFWLRQFRQWUROYDOYHLVIXOO\RSHQHGLQWKH
QRUPDOVWDWHDQGODUJHUGULYHFXUUHQWUHVXOWVLQDVPDOOHU
RSHQLQJRIWKHUHJXODWRU7KH(&0FDOFXODWHVWKHGHVLUHG
FRPPRQUDLOIXHOUDLOSUHVVXUHDQGWKHIXHOIORZUDWH
DQGFRPSDUHVWKHFDOFXODWHGFRPPRQUDLOIXHOUDLO
SUHVVXUHWRWKHDFWXDOSUHVVXUHYDOXHWRGHWHUPLQHWKH
RSHQLQJDQJOHRIWKHVXFWLRQFRQWUROYDOYH,IWKHDFWXDO
FRPPRQUDLOIXHOUDLOSUHVVXUHLVKLJKHUWKDQWKHGHVLUHG
SUHVVXUHWKHVXFWLRQFRQWUROYDOYHFORVHVWRGHFUHDVHWKH
IXHOIORZUDWH,IWKH(&0GHWHFWVDQDEQRUPDOO\ORZ
IHHGEDFNFXUUHQWRIWKHVXFWLRQFRQWUROYDOYHWKH'7&LV
VHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHIHHGEDFNFXUUHQWRIWKHVXFWLRQ
FRQWUROYDOYHLVP$RUOHVVRUORZHUWKDQWKHGHVLUHG
FXUUHQWE\P$RUPRUHIRUVHFRQGVRUPRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KHPD[LPXPHQJLQHVSHHGLVOLPLWHGWRUPLQ
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
)XHO3UHVVXUH5HJXODWRU&RQWURO&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHVXFWLRQFRQWUROYDOYHLVLQVWDOOHGRQWKHVXSSO\SXPS
DQGFRQWUROVWKHIXHODPRXQWVXFNHGLQWRWKHFRPPRQUDLO
IXHOUDLO7KHVXFWLRQFRQWUROYDOYHLVIXOO\RSHQHGLQWKH
QRUPDOVWDWHDQGODUJHUGULYHFXUUHQWUHVXOWVLQDVPDOOHU
RSHQLQJRIWKHUHJXODWRU7KH(&0FDOFXODWHVWKHGHVLUHG
FRPPRQUDLOIXHOUDLOSUHVVXUHDQGWKHIXHOIORZUDWH
DQGFRPSDUHVWKHFDOFXODWHGFRPPRQUDLOIXHOUDLO
SUHVVXUHWRWKHDFWXDOSUHVVXUHYDOXHWRGHWHUPLQHWKH
RSHQLQJDQJOHRIWKHVXFWLRQFRQWUROYDOYH,IWKHDFWXDO
FRPPRQUDLOIXHOUDLOSUHVVXUHLVKLJKHUWKDQWKHGHVLUHG
SUHVVXUHWKHVXFWLRQFRQWUROYDOYHFORVHVWRGHFUHDVHWKH
IXHOIORZUDWH,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJK
IHHGEDFNFXUUHQWRIWKHVXFWLRQFRQWUROYDOYHWKH'7&LV
VHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHIHHGEDFNFXUUHQWRIWKHVXFWLRQ
FRQWUROYDOYHLVP$RUPRUHRUKLJKHUWKDQWKH
GHVLUHGFXUUHQWE\P$RUPRUHIRUVHFRQGVRU
PRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KHPD[LPXPHQJLQHVSHHGLVOLPLWHGWRUPLQ
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
)XHO6\VWHP/HDN'HWHFWHG
'7&3GHVFULSWLRQRI'7&
$W\SLFDOFRPPRQUDLOIXHOUDLOV\VWHPLVFRPSRVHGRI
WKHIROORZLQJIXHOSUHVVXUHVHFWLRQV$VXFWLRQVLGH
EHWZHHQWKHIXHOWDQNDQGWKHVXSSO\SXPSDQGDKLJK
SUHVVXUHVLGHEHWZHHQWKHVXSSO\SXPSDQGWKHLQMHFWRUV
7KHIXHOLVGUDZQIURPWKHIXHOWDQNDQGWKHQSXPSHG
LQWRWKHFRPPRQUDLOIXHOUDLOE\SOXQJHUVWKDWDUH
ORFDWHGLQVLGHWKHVXSSO\SXPS7KHFRPPRQUDLOIXHO
UDLOSUHVVXUHLVFRQWUROOHGE\WKH(&0FRQWUROOLQJWKH
VXFWLRQFRQWUROYDOYHEDVHGRQVLJQDOVIURPWKHFRPPRQ
UDLOIXHOUDLOSUHVVXUHVHQVRU,IWKH(&0GHWHFWVWKDWWKH
FRPPRQUDLOIXHOUDLOSUHVVXUHLVORZFRPSDUHGZLWKWKH
HQJLQHVSHHGWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V333333
333333DQG3
DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHVSHHGLVUPLQRUPRUH
7KH(&0GHWHFWVWKDWWKHDFWXDOFRPPRQUDLOIXHOUDLO
SUHVVXUHLV03D^NJIFPSVL`RUOHVVIRU
VHFRQGVRUPRUHWKLVPD\QRWEHDSUHUHTXLVLWH
GHSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHU
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
,QWDNH$LU7HPSHUDWXUH6HQVRU&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHERRVWWHPSHUDWXUHVHQVRULVDWKHUPLVWRUW\SHVHQVRU
DQGLWPHDVXUHVWKHWHPSHUDWXUHRIWKHDLUIORZLQJLQWRWKH
HQJLQH7KLVVHQVRUKDVDVLJQDOFLUFXLWDQGD*1'
FLUFXLW7KH(&0VXSSOLHV9WRWKHVLJQDOFLUFXLWDQG
*1'WRWKH*1'FLUFXLW:KHQWKHERRVWWHPSHUDWXUH
VHQVRULVFROGWKHVHQVRUUHVLVWDQFHLVKLJK$VWKHDLU
WHPSHUDWXUHULVHVWKHVHQVRUUHVLVWDQFHGHFUHDVHV7KH
(&0GHWHFWVDKLJKYROWDJHZKHQWKHVHQVRUUHVLVWDQFHLV
KLJK7KH(&0GHWHFWVDORZYROWDJHZKHQWKHVHQVRU
UHVLVWDQFHLVORZ,IWKH(&0GHWHFWVDQDEQRUPDOO\ORZ
VLJQDOYROWDJHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHERRVWWHPSHUDWXUHVHQVRUVLJQDO
YROWDJHLV9RUOHVVIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWERRVWWHPSHUDWXUHYDOXHLVDVVXPHG
7KHERRVWSUHVVXUHLVOLPLWHG
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
,QWDNH$LU7HPSHUDWXUH6HQVRU&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHERRVWWHPSHUDWXUHVHQVRULVDWKHUPLVWRUW\SHVHQVRU
DQGLWPHDVXUHVWKHWHPSHUDWXUHRIWKHDLUIORZLQJLQWRWKH
HQJLQH7KLVVHQVRUKDVDVLJQDOFLUFXLWDQGD*1'
FLUFXLW7KH(&0VXSSOLHV9WRWKHVLJQDOFLUFXLWDQG
*1'WRWKH*1'FLUFXLW:KHQWKHERRVWWHPSHUDWXUH
VHQVRULVFROGWKHVHQVRUUHVLVWDQFHLVKLJK$VWKHDLU
WHPSHUDWXUHULVHVWKHVHQVRUUHVLVWDQFHGHFUHDVHV7KH
(&0GHWHFWVDKLJKYROWDJHZKHQWKHVHQVRUUHVLVWDQFHLV
KLJK7KH(&0GHWHFWVDORZYROWDJHZKHQWKHVHQVRU
UHVLVWDQFHLVORZ,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJK
VLJQDOYROWDJHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHKDVEHHQUXQQLQJIRUPLQXWHVRUPRUH
7KH(&0GHWHFWVWKDWWKHERRVWWHPSHUDWXUHVHQVRUVLJQDO
YROWDJHLV9RUPRUHIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWERRVWWHPSHUDWXUHYDOXHLVDVVXPHG
7KHERRVWSUHVVXUHLVOLPLWHG
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
(QJLQH&RRODQW7HPSHUDWXUH6HQVRU&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULVLQVWDOOHGLQWKH
WKHUPRVWDWKRXVLQJ7KHHQJLQHFRRODQWWHPSHUDWXUH
VHQVRULVDWKHUPLVWRUW\SHVHQVRUDQGPHDVXUHVWKH
WHPSHUDWXUHRIWKHHQJLQHFRRODQW7KLVVHQVRUKDVD
VLJQDOFLUFXLWDQGD*1'FLUFXLW7KH(&0VXSSOLHV9
WRWKHVLJQDOFLUFXLWDQGWKH*1'FLUFXLWFRQQHFWVWR
*1':KHQWKHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULV
FROGWKHVHQVRUUHVLVWDQFHLVKLJK:KHQWKHHQJLQH
FRRODQWWHPSHUDWXUHLQFUHDVHVWKHVHQVRUUHVLVWDQFH
GHFUHDVHV7KH(&0GHWHFWVDKLJKYROWDJHZKHQWKH
VHQVRUUHVLVWDQFHLVKLJK7KH(&0GHWHFWVDORZYROWDJH
ZKHQWKHVHQVRUUHVLVWDQFHLVORZ,IWKH(&0GHWHFWVDQ
DEQRUPDOO\ORZVLJQDOYROWDJHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHVLJQDOYROWDJHRIWKHHQJLQH
FRRODQWWHPSHUDWXUHVHQVRULV9RUOHVVIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWZDWHUWHPSHUDWXUHYDOXHLVDVVXPHG
7KHERRVWSUHVVXUHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
(QJLQH&RRODQW7HPSHUDWXUH6HQVRU&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULVLQVWDOOHGLQWKH
WKHUPRVWDWKRXVLQJ7KHHQJLQHFRRODQWWHPSHUDWXUH
VHQVRULVDWKHUPLVWRUW\SHVHQVRUDQGPHDVXUHVWKH
WHPSHUDWXUHRIWKHHQJLQHFRRODQW7KLVVHQVRUKDVD
VLJQDOFLUFXLWDQGD*1'FLUFXLW7KH(&0VXSSOLHV9
WRWKHVLJQDOFLUFXLWDQGWKH*1'FLUFXLWFRQQHFWVWR
*1':KHQWKHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULV
FROGWKHVHQVRUUHVLVWDQFHLVKLJK:KHQWKHHQJLQH
FRRODQWWHPSHUDWXUHLQFUHDVHVWKHVHQVRUUHVLVWDQFH
GHFUHDVHV7KH(&0GHWHFWVDKLJKYROWDJHZKHQWKH
VHQVRUUHVLVWDQFHLVKLJK7KH(&0GHWHFWVDORZYROWDJH
ZKHQWKHVHQVRUUHVLVWDQFHLVORZ,IWKH(&0GHWHFWVDQ
DEQRUPDOO\KLJKVLJQDOYROWDJHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHKDVEHHQUXQQLQJIRUPLQXWHVRUPRUH
7KH(&0GHWHFWVWKDWWKHHQJLQHFRRODQWWHPSHUDWXUH
VHQVRUVLJQDOYROWDJHLV9RUPRUHIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWZDWHUWHPSHUDWXUHYDOXHLVDVVXPHG
7KHERRVWSUHVVXUHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
)XHO7HPSHUDWXUH6HQVRU&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHIXHOWHPSHUDWXUHVHQVRULVLQVWDOOHGRQWKHVXSSO\
SXPS7KHIXHOWHPSHUDWXUHVHQVRULVDWKHUPLVWRUW\SH
VHQVRUDQGPHDVXUHVWKHWHPSHUDWXUHRIWKHIXHOHQWHULQJ
WKHVXSSO\SXPS7KLVVHQVRUKDVDVLJQDOFLUFXLWDQGD
*1'FLUFXLW7KH(&0VXSSOLHV9WRWKHVLJQDOFLUFXLW
DQGWKH*1'FLUFXLWFRQQHFWVWR*1':KHQWKHIXHO
WHPSHUDWXUHVHQVRULVFROGWKHUHVLVWDQFHRIWKHVHQVRULV
KLJK:KHQWKHIXHOWHPSHUDWXUHLQFUHDVHVWKHVHQVRU
UHVLVWDQFHGHFUHDVHV7KH(&0GHWHFWVDKLJKYROWDJH
ZKHQWKHVHQVRUUHVLVWDQFHLVKLJK7KH(&0GHWHFWVD
ORZYROWDJHZKHQWKHVHQVRUUHVLVWDQFHLVORZ
,IWKH(&0GHWHFWVDQDEQRUPDOO\ORZVLJQDOYROWDJHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHIXHOWHPSHUDWXUHVHQVRUVLJQDO
YROWDJHLV9RUOHVVIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWIXHOWHPSHUDWXUHYDOXHLVDVVXPHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
)XHO7HPSHUDWXUH6HQVRU&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHIXHOWHPSHUDWXUHVHQVRULVLQVWDOOHGRQWKHVXSSO\
SXPS7KHIXHOWHPSHUDWXUHVHQVRULVDWKHUPLVWRUW\SH
VHQVRUDQGPHDVXUHVWKHWHPSHUDWXUHRIWKHIXHOHQWHULQJ
WKHVXSSO\SXPS7KLVVHQVRUKDVDVLJQDOFLUFXLWDQGD
*1'FLUFXLW7KH(&0VXSSOLHV9WRWKHVLJQDOFLUFXLW
DQGWKH*1'FLUFXLWFRQQHFWVWR*1':KHQWKHIXHO
WHPSHUDWXUHVHQVRULVFROGWKHUHVLVWDQFHRIWKHVHQVRULV
KLJK:KHQWKHIXHOWHPSHUDWXUHLQFUHDVHVWKHVHQVRU
UHVLVWDQFHGHFUHDVHV7KH(&0GHWHFWVDKLJKYROWDJH
ZKHQWKHVHQVRUUHVLVWDQFHLVKLJK7KH(&0GHWHFWVD
ORZYROWDJHZKHQWKHVHQVRUUHVLVWDQFHLVORZ
,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJKVLJQDOYROWDJHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHKDVEHHQUXQQLQJIRUPLQXWHVRUPRUH
7KH(&0GHWHFWVWKDWWKHIXHOWHPSHUDWXUHVHQVRUVLJQDO
YROWDJHLV9RUPRUHIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWIXHOWHPSHUDWXUHYDOXHLVDVVXPHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
)XHO5DLO3UHVVXUH6HQVRU&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHEDURPHWULFSUHVVXUHVHQVRUFKDQJHVWKHVLJQDO
YROWDJHDFFRUGLQJWRFKDQJHVLQWKHEDURPHWULFSUHVVXUH
7KHVHQVRUKDVWKHIROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
%DURPHWULFSUHVVXUHVHQVRUVLJQDOFLUFXLW
7KHEDURPHWULFSUHVVXUHVHQVRUVHQGVVLJQDOVUHODWHGWR
EDURPHWULFSUHVVXUHFKDQJHWRWKH(&07KH(&0
GHWHFWVORZVLJQDOYROWDJHDWKLJKDOWLWXGHVDQGZLWKORZ
EDURPHWULFSUHVVXUH7KH(&0GHWHFWVKLJKVLJQDO
YROWDJHZLWKKLJKEDURPHWULFSUHVVXUH7KH(&0XVHV
WKLVYROWDJHVLJQDOWRDGMXVWWKHIXHOLQMHFWLRQTXDQWLW\DQG
LQMHFWLRQWLPLQJDQGPDNHDOWLWXGHFRUUHFWLRQ,IWKH(&0
GHWHFWVDQDEQRUPDOO\ORZVLJQDOYROWDJHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHFRPPRQUDLOIXHOUDLOSUHVVXUH
VHQVRUVLJQDOYROWDJHLV9RUOHVV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWFRPPRQUDLOIXHOUDLOSUHVVXUHYDOXHLV
DVVXPHG
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
)XHO5DLO3UHVVXUH6HQVRU&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHFRPPRQUDLOIXHOUDLOSUHVVXUHVHQVRULVLQVWDOOHGWR
WKHFRPPRQUDLOIXHOUDLODQGGHWHFWVWKHIXHOSUHVVXUHLQ
WKHFRPPRQUDLOIXHOUDLODQGFRQYHUWVWKHSUHVVXUHLQWR
DYROWDJHVLJQDO7KHVHQVRUKDVWKHIROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
&RPPRQUDLOIXHOUDLOSUHVVXUHVHQVRUVLJQDOFLUFXLW
7KH(&0PRQLWRUVWKHFRPPRQUDLOIXHOUDLOSUHVVXUH
VHQVRUVLJQDOYROWDJH7KHVLJQDOYROWDJHLQFUHDVHVDVWKH
FRPPRQUDLOIXHOUDLOSUHVVXUHULVHVDQGGHFUHDVHVDV
WKHSUHVVXUHGHFOLQHV7KH(&0FDOFXODWHVWKHDFWXDO
FRPPRQUDLOIXHOUDLOSUHVVXUHIURPWKHYROWDJHVLJQDO
DQGXVHVWKHUHVXOWLQWKHIXHOLQMHFWLRQFRQWURODQGRWKHU
FRQWUROWDVNV
,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJKVLJQDOYROWDJHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHFRPPRQUDLOIXHOUDLOSUHVVXUH
VHQVRUVLJQDOYROWDJHLV9RUPRUHIRUVHFRQGRU
PRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWFRPPRQUDLOIXHOUDLOSUHVVXUHYDOXHLV
DVVXPHG
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KHIXHOIORZUDWHLVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
,QMHFWRU&LUFXLW&\OLQGHU
'7&3GHVFULSWLRQRI'7&
7KH(&0FDOFXODWHVWKHRSWLPXPIXHOLQMHFWLRQ21WLPH
EDVHGRQWKHGDWDVHQWIURPVHQVRUV7KHLQMHFWRUSRZHU
VXSSO\FLUFXLWVXSSOLHVKLJKYROWDJHZKLOHWKH(&0
JURXQGVWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLWDQGGULYHV
WKHLQMHFWRUVRIHDFKF\OLQGHU,IWKH(&0GHWHFWVD
PDOIXQFWLRQRIWKH1RF\OLQGHULQMHFWRUFLUFXLWWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
(LWKHURIWKHIROORZLQJFRQGLWLRQVLVPHW
7KH(&0GHWHFWVDQRSHQFLUFXLWLQWKHLQMHFWRUVROHQRLG
FLUFXLW
7KH(&0GHWHFWVWKDWWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLW
LVVKRUWHGWRWKHYROWDJHFLUFXLWRUVKRUWHGWRWKHFKDUJH
YROWDJHFLUFXLW
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHLQMHFWLRQRIWKH1RF\OLQGHULVGLVDEOHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
,QMHFWRU&LUFXLW&\OLQGHU
'7&3GHVFULSWLRQRI'7&
7KH(&0FDOFXODWHVWKHRSWLPXPIXHOLQMHFWLRQ21WLPH
EDVHGRQWKHGDWDVHQWIURPVHQVRUV7KHLQMHFWRUSRZHU
VXSSO\FLUFXLWVXSSOLHVKLJKYROWDJHZKLOHWKH(&0
JURXQGVWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLWDQGGULYHV
WKHLQMHFWRUVRIHDFKF\OLQGHU,IWKH(&0GHWHFWVD
PDOIXQFWLRQRIWKH1RF\OLQGHULQMHFWRUFLUFXLWWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
(LWKHURIWKHIROORZLQJFRQGLWLRQVLVPHW
7KH(&0GHWHFWVDQRSHQFLUFXLWLQWKHLQMHFWRUVROHQRLG
FLUFXLW
7KH(&0GHWHFWVWKDWWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLW
LVVKRUWHGWRWKHYROWDJHFLUFXLWRUVKRUWHGWRWKHFKDUJH
YROWDJHFLUFXLW
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHLQMHFWLRQRIWKH1RF\OLQGHULVGLVDEOHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
,QMHFWRU&LUFXLW&\OLQGHU
'7&3GHVFULSWLRQRI'7&
7KH(&0FDOFXODWHVWKHRSWLPXPIXHOLQMHFWLRQ21WLPH
EDVHGRQWKHGDWDVHQWIURPVHQVRUV7KHLQMHFWRUSRZHU
VXSSO\FLUFXLWVXSSOLHVKLJKYROWDJHZKLOHWKH(&0
JURXQGVWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLWDQGGULYHV
WKHLQMHFWRUVRIHDFKF\OLQGHU,IWKH(&0GHWHFWVD
PDOIXQFWLRQRIWKH1RF\OLQGHULQMHFWRUFLUFXLWWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
(LWKHURIWKHIROORZLQJFRQGLWLRQVLVPHW
7KH(&0GHWHFWVDQRSHQFLUFXLWLQWKHLQMHFWRUVROHQRLG
FLUFXLW
7KH(&0GHWHFWVWKDWWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLW
LVVKRUWHGWRWKHYROWDJHFLUFXLWRUVKRUWHGWRWKHFKDUJH
YROWDJHFLUFXLW
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHLQMHFWLRQRIWKH1RF\OLQGHULVGLVDEOHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
,QMHFWRU&LUFXLW&\OLQGHU
'7&3GHVFULSWLRQRI'7&
7KH(&0FDOFXODWHVWKHRSWLPXPIXHOLQMHFWLRQ21WLPH
EDVHGRQWKHGDWDVHQWIURPVHQVRUV7KHLQMHFWRUSRZHU
VXSSO\FLUFXLWVXSSOLHVKLJKYROWDJHZKLOHWKH(&0
JURXQGVWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLWDQGGULYHV
WKHLQMHFWRUVRIHDFKF\OLQGHU,IWKH(&0GHWHFWVD
PDOIXQFWLRQRIWKH1RF\OLQGHULQMHFWRUFLUFXLWWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
(LWKHURIWKHIROORZLQJFRQGLWLRQVLVPHW
7KH(&0GHWHFWVDQRSHQFLUFXLWLQWKHLQMHFWRUVROHQRLG
FLUFXLW
7KH(&0GHWHFWVWKDWWKHLQMHFWRUVROHQRLGFRQWUROFLUFXLW
LVVKRUWHGWRWKHYROWDJHFLUFXLWRUVKRUWHGWRWKHFKDUJH
YROWDJHFLUFXLW
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHLQMHFWLRQRIWKH1RF\OLQGHULVGLVDEOHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
(QJLQH&RRODQW2YHU7HPSHUDWXUH&RQGLWLRQ
'7&3GHVFULSWLRQRI'7&
7KHHQJLQHFRRODQWWHPSHUDWXUHVHQVRULVLQVWDOOHGRQWKH
WKHUPRVWDWKRXVLQJ7KHHQJLQHFRRODQWWHPSHUDWXUH
VHQVRULVDWKHUPLVWRUW\SHDQGPHDVXUHVWKHWHPSHUDWXUH
RIWKHHQJLQHFRRODQW
,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJKFRRODQW
WHPSHUDWXUHWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V3DQG3DUHQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KHHQJLQHLVUXQQLQJ
7KH(&0GHWHFWVWKDWWKHHQJLQHFRRODQWWHPSHUDWXUHLV
&^)`RUPRUHIRUVHFRQGV
1RWH㸸
࣭ 7KHVHWWLQJYDULHVGHSHQGLQJRQWKHPDFKLQH
PDQXIDFWXUHU
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
(QJLQH2YHUVSHHG&RQGLWLRQ
'7&3GHVFULSWLRQRI'7&
7KH&.3VHQVRULVLQVWDOOHGRQWKHULJKWUHDURIWKH
F\OLQGHUEORFN7KH(&0FDOFXODWHVWKHHQJLQHVSHHGDQG
DFFXUDWHFUDQNVKDIWSRVLWLRQEDVHGRQWKHVLJQDOSXOVH
IURPWKH&.3VHQVRU
,IWKH(&0GHWHFWVWKDWWKHHQJLQHLVLQDQRYHUUXQ
FRQGLWLRQWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
7KH(&0GHWHFWVWKDWWKHHQJLQHVSHHGLVPRUHWKDQ
UPLQIRUVHFRQGV
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
7XUERFKDUJHU%RRVW6HQVRU&LUFXLW/RZ
'7&3GHVFULSWLRQRI'7&
7KHERRVWSUHVVXUHVHQVRULVORFDWHGLQWKHDLULQWDNHSLSH
7KLVVHQVRUFKDQJHVWKHVLJQDOYROWDJHLQDFFRUGDQFHZLWK
FKDQJHVLQDLUSUHVVXUHLQWKHDLULQWDNHSLSH7KHERRVW
SUHVVXUHVHQVRUKDVWKHIROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
%RRVWSUHVVXUHVHQVRUVLJQDOFLUFXLW
7KHERRVWSUHVVXUHVHQVRUVHQGVWKHVLJQDORISUHVVXUH
FKDQJHVLQWKHDLULQWDNHSLSHWRWKH(&07KH(&0
GHWHFWVDKLJKYROWDJHVLJQDOZKHQWKHDLUSUHVVXUHLV
KLJKVXFKDVZKHQWKHORDGRQWKHHQJLQHLVKLJK
,IWKH(&0GHWHFWVDQDEQRUPDOO\ORZVLJQDOYROWDJHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHERRVWSUHVVXUHVHQVRUVLJQDO
YROWDJHLV9RUOHVVIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWERRVWSUHVVXUHYDOXHLVDVVXPHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
7XUERFKDUJHU%RRVW6HQVRU&LUFXLW+LJK
'7&3GHVFULSWLRQRI'7&
7KHERRVWSUHVVXUHVHQVRULVORFDWHGLQWKHDLULQWDNHSLSH
7KLVVHQVRUFKDQJHVWKHVLJQDOYROWDJHLQDFFRUGDQFHZLWK
FKDQJHVLQDLUSUHVVXUHLQWKHDLULQWDNHSLSH7KHERRVW
SUHVVXUHVHQVRUKDVWKHIROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
%RRVWSUHVVXUHVHQVRUVLJQDOFLUFXLW
7KHERRVWSUHVVXUHVHQVRUVHQGVWKHVLJQDORISUHVVXUH
FKDQJHVLQWKHDLULQWDNHSLSHWRWKH(&07KH(&0
GHWHFWVDKLJKYROWDJHVLJQDOZKHQWKHDLUSUHVVXUHLV
KLJKVXFKDVZKHQWKHORDGRQWKHHQJLQHLVKLJK
,IWKH(&0GHWHFWVDQDEQRUPDOO\KLJKVLJQDOYROWDJHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&3%LVQRWVHW
7KHEDWWHU\YROWDJHLVEHWZHHQ9
7KHLJQLWLRQVZLWFKLV21
7KH(&0GHWHFWVWKDWWKHERRVWSUHVVXUHVHQVRUVLJQDO
YROWDJHLV9RUPRUHIRUVHFRQGV
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
$GHIDXOWERRVWSUHVVXUHYDOXHLVDVVXPHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
&UDQNVKDIW3RVLWLRQ6HQVRU&LUFXLW
'7&3GHVFULSWLRQRI'7&
7KH&.3VHQVRULVLQVWDOOHGRQWKHULJKWUHDURIWKH
F\OLQGHUEORFN7KHVHQVRUURWRULVIL[HGRQWKH
FUDQNVKDIW7KHUHDUHQRWFKHVVSDFHGDSDUWDQGD
RSHQLQJ7RSGHDGFHQWHURIF\OLQGHU1RFDQEH
GHWHFWHGWKURXJKWKLVRSHQLQJ7KH&.3VHQVRUJHQHUDWHV
SXOVHVLJQDOV7KHVHQVRUKDVWKHIROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
&.3VHQVRUVLJQDOFLUFXLW
7KH(&0PRQLWRUVWKHVLJQDOSXOVHVRIWKH&.3VHQVRU
DQGWKH&03VHQVRUWRYHULI\WKDWWKH\FRUUHODWHZLWK
HDFKRWKHU,IWKH(&0UHFHLYHVDFHUWDLQDPRXQWRI&03
VHQVRUVLJQDOSXOVHVZLWKRXWD&.3VHQVRUVLJQDOSXOVH
WKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V33DQG3DUHQRWVHW
7KHLJQLWLRQVZLWFKLV21
7KHVLJQDOSXOVHRIWKH&03VHQVRULVGHWHFWHG
7KH(&0GHWHFWVWKDWQR&.3VHQVRUVLJQDOSXOVHLV
JHQHUDWHGZKLOHWKHHQJLQHLVUXQQLQJ
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
&UDQNVKDIW3RVLWLRQ6HQVRU&LUFXLW5DQJH3HUIRUPDQFH
'7&3GHVFULSWLRQRI'7&
7KH&.3VHQVRULVLQVWDOOHGRQWKHULJKWUHDURIWKH
F\OLQGHUEORFN7KHVHQVRUURWRULVIL[HGRQWKH
FUDQNVKDIW7KHUHDUHQRWFKHVVSDFHGDSDUWDQGD
RSHQLQJ7RSGHDGFHQWHURIF\OLQGHU1RFDQEH
GHWHFWHGWKURXJKWKLVRSHQLQJ7KH(&0PRQLWRUVWKH
VLJQDOSXOVHVRIWKH&.3VHQVRUDQGWKH&03VHQVRUWR
YHULI\WKDWWKH\FRUUHODWHZLWKHDFKRWKHU
,IWKH(&0UHFHLYHVH[FHVVLYHRUVKRUW&.3VHQVRUVLJQDO
SXOVHVWKH'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V33DQG3DUHQRWVHW
7KHLJQLWLRQVZLWFKLV21
7KHVLJQDOSXOVHRIWKH&.3VHQVRULVGHWHFWHG
7KH(&0GHWHFWVH[FHVVLYHRUVKRUW&.3VHQVRUVLJQDO
SXOVHVZKLOHWKHHQJLQHLVUXQQLQJ
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
7KHIXHOLQMHFWLRQTXDQWLW\LVOLPLWHG
7KH(*5FRQWUROLVGLVDEOHG
'7&,QIRUPDWLRQ/((
'7&3)ODVK&RGH
&DPVKDIW3RVLWLRQ6HQVRU&LUFXLW
'7&3GHVFULSWLRQRI'7&
7KH&03VHQVRULVLQVWDOOHGRQWKHJHDUFDVHFRYHU7KH
&03VHQVRUGHWHFWVSURWUXVLRQVLQWRWDOSHUHQJLQH
URWDWLRQ7KHFDPVKDIWJHDUKDVSURWUXVLRQVHYHQO\
VSDFHGDSDUWDQGUHIHUHQFHSURWUXVLRQ7KH&03
VHQVRUJHQHUDWHVSXOVHVLJQDOV7KHVHQVRUKDVWKH
IROORZLQJFLUFXLWV
9SRZHUVXSSO\FLUFXLW
*1'FLUFXLW
&03VHQVRUVLJQDOFLUFXLW
7KH(&0PRQLWRUVWKHVLJQDOSXOVHVRIWKH&.3VHQVRU
DQGWKH&03VHQVRUWRYHULI\WKDWWKH\FRUUHODWHZLWK
HDFKRWKHU
,IWKH(&0UHFHLYHVDFHUWDLQDPRXQWRI&.3VHQVRU
VLJQDOSXOVHVZLWKRXWD&03VHQVRUVLJQDOSXOVHWKH
'7&LVVHW
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
'7&V33DQG3DUHQRWVHW
7KHLJQLWLRQVZLWFKLV21
7KHVLJQDOSXOVHRIWKH&.3VHQVRULVGHWHFWHG
7KH(&0GHWHFWVWKDWQR&03VHQVRUVLJQDOSXOVHLV
JHQHUDWHGZKLOHWKHHQJLQHLVUXQQLQJ
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ
('7&,QIRUPDWLRQ/(
'7&3)ODVK&RGH
*ORZ3OXJ&LUFXLW
'7&3GHVFULSWLRQRI'7&
7KHJORZUHOD\VWRSVSURYLGLQJSRZHUVXSSO\YROWDJH
9WRWKHJORZSOXJDQG21LVGLVSOD\HGLIWKHVLJQDO
IURPWKH(&0LVLQSXW7KH(&0UHFRJQL]HVWKHLJQLWLRQ
VZLWFK21VLJQDODQGRXWSXWVWKH21VLJQDOWRWKHJORZ
UHOD\
'7&3FRQGLWLRQIRUVHWWLQJWKH'7&
.H\VZLWFKLQSXWYROWDJHLV9
7KHUHLVQRJORZUHOD\PRQLWRULQJVLJQDOWRWKHJORZ
UHOD\GULYHLQVWUXFWLRQRUWKHUHLVDJORZUHOD\PRQLWRULQJ
VLJQDOWRWKHJORZUHOD\VWRSLQVWUXFWLRQIRUVHFRQGVRU
PRUH
'7&3DFWLRQWDNHQZKHQWKH'7&VHWV
)DLOXUHLVLQGLFDWHGLQWKHPRQLWRURQWKHPDFKLQHRUWKH
GLDJQRVWLFOLJKWLOOXPLQDWHV
1RWH㸸
࣭ 'HSHQGLQJRQWKHPDFKLQHPDQXIDFWXUHUWKH
IDLOXUHLQGLFDWLRQPD\QRWEHVKRZQ