Loading...
HomeMy WebLinkAboutJanuary 20, 2016 Agenda Packet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x 7KLVVHFWLRQRIWKHDJHQGDPD\QRWEHXVHGDVDIRUXPWRFRQWLQXHGLVFXVVLRQRQDQDJHQGD LWHPZKLFKKDVDOUHDG\EHHQKHOGDVDSXEOLFKHDULQJ  x 7KLVDJHQGDVHFWLRQLVOLPLWHGWRPLQXWHVDQGHDFKVSHDNHULVOLPLWHGWRPLQXWHV  x $Q\VSHDNHUVQRWKDYLQJWKHRSSRUWXQLW\WREHKHDUGZLOOEHILUVWWRSUHVHQWDWWKHQH[W&RXQFLO PHHWLQJ  x )XOOQDPHDQGDGGUHVVRIWKHVSHDNHUPXVWEHSURYLGHG  x &LWL]HQVPD\RQO\XVHWKLVIRUXPWRDGGUHVVWKH&RXQFLORQDPD[LPXPRIRQHWLPHSHUPRQWK  x 0DWWHUVFXUUHQWO\XQGHUQHJRWLDWLRQOLWLJDWLRQRUUHODWHGWRSHUVRQQHOZLOOQRWEHGLVFXVVHGLQ WKLVIRUXP  x 4XHVWLRQVSRVHGE\DVSHDNHUZLOOJHQHUDOO\EHUHVSRQGHGWRLQZULWLQJ   &281&,/$&7,215(48(67(' 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\$GPLQLVWUDWLRQ ,7(0'(6&5,37,2135(3$5('%<  $SSURYDORI&RQVHQW$JHQGD,WHPV *DU\1HXPDQQ  7KLV5&$OLVWVDOOWKHLWHPVZKLFKKDYHEHHQLQFOXGHGLQWKHFRQVHQWDJHQGDIRUWKLVPHHWLQJ7KH &RXQFLOFDQDSSURYHDOORIWKHLWHPVZLWKDVLQJOHPRWLRQWRDSSURYH7KH&RXQFLO3UHVLGHQWZLOO DOORZWKH&RXQFLOPHPEHUVDQRSSRUWXQLW\WRVWDWHZKHWKHUWKHUHDUHDQ\RIWKHVHLWHPVZKLFK\RX ZLVKWRKDYHUHPRYHGIURPWKHFRQVHQWDJHQGDDSSURYDODQGWRKDYHWKHPGLVFXVVHGDQGDFWHG XSRQVHSDUDWHO\E\WKH&RXQFLO   7KHFRQVHQWDJHQGDIRUWKLVPHHWLQJFRQVLVWVRIWKHIROORZLQJ5&$V   '$SSURYDORI&RQVHQW$JHQGD,WHPV  '$SSURYDORI-DQXDU\&RXQFLO0HHWLQJ0LQXWHV 9LGHRDV2IILFLDO5HFRUG  RI3URFHHGLQJV  '$SSRLQWPHQWVWR0D\R&LYLF&HQWHU&RPPLVVLRQ  '5HDSSRLQWPHQWWR3ROLFH&LYLO6HUYLFH&RPPLVVLRQ  '$PHQGPHQWWRWKH2UGHUO\$QQH[DWLRQ$JUHHPHQWZLWK.DOPDU7RZQVKLS  '3URSHUW\0DQDJHPHQW$JUHHPHQW%LR%XVLQHVV&HQWHU  ' ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\&OHUN ,7(0'(6&5,37,2135(3$5('%<  $SSURYDORI-DQXDU\&RXQFLO0HHWLQJ0LQXWHV 9LGHRDV2IILFLDO5HFRUG $DURQ5HHYHV RI3URFHHGLQJV   &281&,/$&7,215(48(67('  0RWLRQWRDSSURYHWKH-DQXDU\&RXQFLO0HHWLQJPLQXWHVDQGYLGHRDVRIILFLDOUHFRUGRI&RXQFLO  SURFHHGLQJV 3DFNHW3J 'UDIW'D 5HJXODU0HHWLQJ-DQXDU\     &,7<2)52&+(67(50,11(627$ &281&,/0,187(6  3/('*(2)$//(*,$1&( $23(1&200(173(5,2' $2SHQ&RPPHQW3HULRG 3OHDVHQRWHWKDWWKLVLVWKH&LW\   KWWSURFKHVWHUFLW\PQLTPFRP&LWL]HQV6SOLW9LHZDVS["0RGH 9LGHR 0HHWLQJ,'  'D 5HJXODU0HHWLQJ-DQXDU\    1LFN&DPSLRQ&RXQFLOPHPEHU3UHVHQW (G+UXVND&RXQFLOPHPEHU3UHVHQW 0DUN%LOGHUEDFN&RXQFLOPHPEHU3UHVHQW 0LFKDHO:RMFLN&RXQFLOPHPEHU3UHVHQW 0DUN+LFNH\&RXQFLOPHPEHU3UHVHQW 6DQGUD0HDQV&RXQFLOPHPEHU3UHVHQW $UGHOO)%UHGH0D\RU3UHVHQW &/(77(56$1'3(7,7,216 &7LP6FKPLWW:LVKHVWREH+HDUG  7LP6FKPLWWFRPPHQWHGRQWKHSURSRVHG3DLQH)XUQLWXUHEXLOGLQJVN\ZD\ '&216(17$*(1'$25*$1,=$7,21$/%86,1(66 5(68/7$'237('>81$1,0286@  029(5 0DUN%LOGHUEDFN&RXQFLOPHPEHU 6(&21'(5 1LFN&DPSLRQ&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV ',WHPZDVPRYHGWR3XOOHG)URP&RQVHQW$JHQGD ,WHP'ZDVPRYHGWR'IRUIXUWKHUGLVFXVVLRQ ',WHPZDVPRYHGWR3XOOHG)URP&RQVHQW$JHQGD ,WHP'ZDVPRYHGWR'IRUIXUWKHUGLVFXVVLRQ '$GGUHVVE\0D\RU%UHGH  0D\RU%UHGHSURYLGHGKLVDQQXDODGGUHVV '&RPPHQWVIRUWKH&LW\&RXQFLO3UHVLGHQW  &RXQFLO3UHVLGHQW6WDYHUSURYLGHGKLVDQQXDOFRPPHQWV '2UJDQL]DWLRQDO%XVLQHVV'HVLJQDWLRQRI2IILFLDO3DSHU '$SSURYDORI&RQVHQW$JHQGD,WHPV $SSURYHG&RQVHQW$JHQGDLWHPV' ' 'D 5HJXODU0HHWLQJ-DQXDU\    $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH5HOHDVHZLWK3D\PHQWHFK//&DQG WKH0D\R&LYLF&HQWHU%R[2IILFH '$XWKRUL]DWLRQIRU$VVHVVPHQW5HDSSRUWLRQPHQW $GRSWHG5HVROXWLRQ1RDXWKRUL]LQJWKH$VVHVVPHQW5HDSSRLQWPHQWRU FKDUJHVIRUSXEOLFLPSURYHPHQWSURMHFWV '2UGLQDQFH&KDSWHUHQWV- $GRSWHG5HVROXWLRQ1R 'D 5HJXODU0HHWLQJ-DQXDU\     &RXQFLOPHPEHU0HDQVUHTXHVWHGWKDWUHVROXWLRQIRUDSSURYDOEHDWWDFKHGQH[W \HDU  $GRSWHG5HVROXWLRQ1RVDGRSWLQJWKH5REHUWV5XOHVRI2UGHU DGRSWLQJ5XOHVDQG5HJXODWLRQVRI2UGHURI%XVLQHVVRIWKH&RXQFLODQG DGRSWLQJWKHRUGHURIVXFFHVVLRQWRGLVFKDUJHWKHGXWLHVRIWKH&RXQFLOPHPEHUDW /DUJHLQWKHHYHQWRIDEVHQFHRUGLVDELOLW\DQGHVWDEOLVKLQJFRPPLWWHHRIWKH &RPPRQ&RXQFLOSUHVFULELQJWKHLUIXQFWLRQVDQGGXWLHVDQGSURYLGLQJDSSRLQWPHQW  WRPHPEHUVRIVXEFRPPLWWHHV 5(68/7$'237('>81$1,0286@  029(5 6DQGUD0HDQV&RXQFLOPHPEHU 6(&21'(5 0LFKDHO:RMFLN&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV 2UJDQL]DWLRQDO%XVLQHVV$SSRLQWPHQWWR&RPPLWWHHV ,WHP'ZDVSXOOHGIURPWKH&RQVHQW$JHQGDIRUIXUWKHUGLVFXVVLRQ  &RXQFLOPHPEHU:RMFLNFRPPHQWHGRQDFRUUHFWLRQQHHGHGWR5RFKHVWHU$UW &HQWHU&RPPLVVLRQQDPHDQGFODULILHGPHWKRGRIDSSRLQWPHQWV  &RXQFLOPHPEHU0HDQVJHQHUDOFRPPHQWV  $SSURYHGWKH&RXQFLO$SSRLQWPHQWWR&RPPLWWHHVE\&RXQFLO3UHVLGHQW6WDYHU 5(68/7$'237('>81$1,0286@  029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 0DUN%LOGHUEDFN&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV &RRSHUDWLYH$JUHHPHQW5HFRQVWUXFWWK$YH1:-IURPWKH&RQVHQW$JHQGDIRUIXUWKHUGLVFXVVLRQ 3DFNHW3J  'D 5HJXODU0HHWLQJ-DQXDU\    5(68/77$%/('>81$1,0286@1H[WH &LW\$WWRUQH\WRSUHSDUHWKHUHTXLUHG2UGLQDQFHIRUDGRSWLRQ 3DFNHW3J  'D 5HJXODU0HHWLQJ-DQXDU\    5(68/7$'237('>81$1,0286@  029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 1LFN&DPSLRQ&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV )7\SH,,,3KDVH,,,,QFHQWLYH'HYHORSPHQW)LQDO3ODQ5&83E\%XFNH\H //&7KHDSSOLFDQWLVSURSRVLQJWRFRQVWUXFWDVL[VWRU\XQLWPL[HGXVH GHYHORSPHQWZLWKEHORZJUDGSDUNLQJILUVWIORRUFRPPHUFLDODQGXSSHUIORRUV UHVLGHQWLDO7KHSURSHUW\LVORFDWHGDWWKHVRXWKHDVWFRUQHURIWK6WUHHW6(DQG UG$YHQXH6( 'RULV$PXQGVRQFRPPHQWHGRQWKHSURSRVHGQDPH  -XG\*RRKOFRPPHQWHGRQWKHSURSRVHGQDPH  /HVOLH0F*LOOLYUD\5LYDVFRPPHQWHGRQWKHQDPHDQGWKHFRQGLWLRQVRIWKH DSSURYDO  *HQHUDO&RXQFLOGLVFXVVLRQRQWKHFRQGLWLRQVRIDSSURYDO  'RULV$PXQGVRQFRPPHQWHGDJDLQ  )XUWKHU&RXQFLOGLVFXVVLRQRQUHFRPPHQGHGFRQGLWLRQFKDQJHVDQG PRWLRQIRUDPHQGHGDSSURYDO  &RXQFLOPHPEHU+LFNH\PRWLRQHGVHFRQGHGE\&RXQFLOPHPEHU0HDQVWR DPHQGWKHPRWLRQWRUHPRYHWKHZLQGRZJUDSKLFVUHTXLUHPHQW$SSURYHG ZLWK&RXQFLOPHPEHUV%LOGHUEDFN&DPSLRQDQG:RMFLNYRWLQJQD\  )XUWKHU&RXQFLOGLVFXVVLRQ  $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH)LQDO3ODQ5E\ %XFNH\H//&IRUVL[VWRU\XQLW0L[HGXVHGHYHORSPHQWORFDWHGDWWKH VRXWKHDVWFRUQHURIWK6WUHHW6(DQGUG$YHQXH6( 5(68/7$'237('>81$1,0286@  029(5 0LFKDHO:RMFLN&RXQFLOPHPEHU 6(&21'(5 1LFN&DPSLRQ&RXQFLOPHPEHU $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN:RMFLN+LFNH\0HDQV )/DQG8VH3ODQ5/83$=RQLQJ'LVWULFW$PHQGPHQW5 'D 5HJXODU0HHWLQJ-DQXDU\    *HQHUDO&RXQFLOGLVFXVVLRQZLWK0U6WRND  %DUU\6NROQLFNTXHVWLRQHGW\SLFDOURRPVL]HV  $GRSWHG5HVROXWLRQ1RDSSURYLQJWKH/DQG8VH3ODQ5=RQLQJ 'LVWULFW$PHQGPHQW5PHQW5 'D 5HJXODU0HHWLQJ-DQXDU\    **6HFRQG5HDGLQJ1RQH +7$%/(',7(06 ,27+(5%86,1(66 &RXQFLOPHPEHU+UXVNDPRWLRQHGVHFRQGHGE\&RXQFLOPHPEHU:RMFLNWRUHFHVV WKH&RXQFLOPHHWLQJ$SSURYHG ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV2IILFHRIWKH0D\RU ,7(0'(6&5,37,2135(3$5('%<  $SSRLQWPHQWVWR0D\R&LYLF&HQWHU&RPPLVVLRQ 'RQQD%XVVHOO  0D\RU%UHGHUHFRPPHQGVIRU\RXUDSSURYDOWKHIROORZLQJDSSRLQWPHQWV  0LFKDHO6PLWK  3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV2IILFHRIWKH0D\RU ,7(0'(6&5,37,2135(3$5('%<  5HDSSRLQWPHQWWR3ROLFH&LYLO6HUYLFH&RPPLVVLRQ 'RQQD%XVVHOO  0D\RU%UHGHUHFRPPHQGVIRU\RXUDSSURYDOWKHIROORZLQJUHDSSRLQWPHQW  3ROLFH&LYLO6HUYLFH&RPPLVVLRQ -RGL*ULPP /DNH6W1:  0V*ULPPILOOHGDQXQH[SLUHGWHUPRI.HOO\:DJQHU5HDSSRLQWVWWKUHH\HDUWHUPH[SLULQJ0DUFK  &281&,/$&7,215(48(67('   &RXQFLODSSURYDORIUHDSSRLQWPHQW 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\$GPLQLVWUDWLRQ ,7(0'(6&5,37,2135(3$5('%<  $PHQGPHQWWRWKH2UGHUO\$QQH[DWLRQ$JUHHPHQWZLWK.DOPDU7RZQVKLS %UHQW6YHQE\  2Q6HSWHPEHUWKH&LW\DSSURYHGDQ2UGHUO\$QQH[DWLRQ$JUHHPHQW 2$$ ZLWK.DOPDU7RZQVKLSWKDW HQFRPSDVVHGDDFUHSRUWLRQRIDZDWHUVKHGZHVWRIWK$YHQXH1:6WDII IURPFLW\DGPLQLVWUDWLRQ SXEOLFZRUNVDQGSODQQLQJ KDYHPHWQXPHURXVWLPHVZLWKDGHYHORSHURYHUWKHSDVW\HDUWRGLVFXVVKLV SURSRVDOWRGHYHORSKLVSURSHUW\ORFDWHGZHVWRIWK$YHQXH1:DQGVRXWKRIWK6WUHHWDVDQLQWHULP GHYHORSPHQW$FFRUGLQJWRWKHSURYLVLRQVRIWKH2$$LQWHULPGHYHORSPHQWLVRQO\SHUPLWWHGLQWKH\HDU DUHDVZLWKLQWKH$QQH[DWLRQ$UHDVKRZQRQ([KLELW%RIWKH2$$7KHGHYHORSHU VSURSHUW\LVFXUUHQWO\QRW ORFDWHGZLWKLQWKH\HDUDUHD  7KHSURSHUW\RZQHUSHWLWLRQHGWKH&LW\IRUIHDVLELOLW\VWXG\WRH[WHQGFLW\VDQLWDU\VHZHUDQGZDWHUPDLQWR VHUYHSRUWLRQVRI6HFWLRQLQ.DOPDU7RZQVKLS,QWKH&RXQFLODGRSWHGWKHIHDVLELOLW\UHSRUW 3URMHFW 1R0ORIWKH-RLQW5HVROXWLRQDPHQGLQJ([KLELWV$DQG%RIWKH2UGHUO\$QQH[DWLRQ$JUHHPHQW .DOPDU7RZQVKLS 3DFNHW3J 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'E 3DFNHW3J 'E 3DFNHW3J ' 5(48(67)25&281&,/$&7,21 0((7,1*'$7(    $*(1'$6(&7,2125,*,1$7,1*'(37 &RQVHQW$JHQGD2UJDQL]DWLRQDO%XVLQHVV&LW\$GPLQLVWUDWLRQ ,7(0'(6&5,37,2135(3$5('%<  3URSHUW\0DQDJHPHQW$JUHHPHQW%LR%XVLQHVV&HQWHU 7HUU\6SDHWK  7KLVLVDUHTXHVWWRUHQHZDQDJUHHPHQWZLWK3DUDPDUN&RUSRUDWLRQIRUSURSHUW\PDQDJHPHQWVHUYLFHVIRUDQG VW$YHQXH6: %LR%XVLQHVV&HQWHUDQG'RROH\ V 3DUDPDUNSURYLGHVILQDQFLDODGPLQLVWUDWLYHDQGPDQDJHULDOVHUYLFHV WRWKHFLW\UHODWHGWRWKHRSHUDWLRQRIWKHSURSHUWLHV7KH\FROOHFWDOOUHQWVIHHVDQGFKDUJHVDQGSD\DOOELOOVLQYRLFHV WD[HVHWF7KH\SURYLGHWKH)LQDQFH'HSDUWPHQWZLWKDPRQWKO\LWHPL]HGVWDWHPHQWRIUHFHLSWVDQGH[SHQGLWXUHV7KH\ SUHSDUHDQDQQXDORSHUDWLQJEXGJHWIRUWKHSURSHUWLHVDQGUHFRQFLOH\HDUHQG&$0FKDUJHVZLWKWHQDQWV7KH\HLWKHU GLUHFWO\SURYLGHJHQHUDOEXLOGLQJDQG+9$&PDLQWHQDQFHVHUYLFHVRUFRQWUDFWIRUVXFKVHUYLFHVRQEHKDOIRIWKH&LW\ 7KH\KDQGOHHQIRUFHPHQWRIEXLOGLQJUXOHVDQGUHJXODWLRQVDQGWHQDQWUHODWLRQV  7KHLUIHHIRUVHUYLFHVLVEURNHQLQWRWZRFRPSRQHQWV7KHJHQHUDOPDLQWHQDQFH+9$&DQGSUHYHQWDWLYHPDLQWHQDQFH VHUYLFHVLVSHUPRQWK$OORWKHUVHUYLFHVDUHEDVHGRQRIFROOHFWHGUHQW7KHVHIHHVDUHFRQVLVWHQWZLWKWKRVH FKDUJHGIRUVLPLODUGRZQWRZQEXLOGLQJV7RRXUNQRZOHGJHWKHUHLVQRRWKHUORFDOILUPWKDWFDQSURYLGHDVLPLODUOHYHORI VHUYLFH7KH&LW\GRHVQRWKDYHHLWKHUWKHVWDIIUHVRXUFHVRUWKHH[SHULHQFHWRPDQDJHSURSHUWLHVRIWKLVW\SH:HKDYH EHHQYHU\VDWLVILHGZLWK3DUDPDUN VSHUIRUPDQFHDQGUHFRPPHQGDSSURYDORIDQHZPDQDJHPHQWFRQWUDFW7KHQHZ FRQWUDFWZRXOGUXQIURPWKHGDWHRIVLJQLQJWR'HFHPHEHU 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'D 3DFNHW3J 'E 3DFNHW3J 'E 3DFNHW3J 3DFNHW3J 'E 3DFNHW3J 'E 3DFNHW3J 'E ' ' PXOWLIDPLO\UHQWDOKRXVLQJGHYHORSPHQWUHIHUUHGWRLQWKH+RXVLQJ3URJUDPDQGDXWKRUL]HWKHVXEPLVVLRQ RIDQDSSOLFDWLRQWRWKHRIILFHRI0LQQHVRWD0DQDJHPHQW %XGJHWIRUDQDOORFDWLRQRIERQGLQJDXWKRULW\ ZLWKUHVSHFWWRWKH%RQGVWRILQDQFHWKH3URMHFW  8 QGHU6HFWLRQ 'WRFRQGXFWDSXEOLFKHDULQJRQWKH+RXVLQJ3URJUDPWKH3URMHFWDQGWKHLVVXDQFHRI WKH%RQGVE\WKH&LW\1RWLFHRIVXFKKHDUL QJ WKH³3XEOLF1RWLFH´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³GHPLQLPLV´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¶V*HQHUDO$FFRXQWDW:HOOV)DUJR%DQN5RFKHVWHUDQG 5RFKHVWHU3XEOLF8WLOLWLHV¶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†$VXEG D WKHIROORZLQJILQDQFLDOLQVWLWXWLRQVDXWKRUL]HGWRGREXVLQHVVLQ 0LQQHVRWDDUHKHUHE\GHVLJQDWHGDVGHSRVLWRULHVRIWKHSXEOLFIXQGVRIWKH&LW\RI5RFKHVWHU 0LQQHVRWDIRUWKHWHUPEHJLQQLQJRQ-DQXDU\DQGHQGLQJRQ'HFHPEHU  86%DQN5RFKHVWHU :HOOV)DUJR%DQN5RFKHVWHU  %(,7)857+(55(62/9('WKDWWKLVGHVLJQDWLRQLVVXEMHFWWRWKHIROORZLQJWHUPVDQG FRQGLWLRQV  7KH&LW\RI5RFKHVWHUUHVHUYHVWKHULJKWWRPRGLI\YDFDWHRUUHYRNHWKLV UHVROXWLRQDVSHUPLWWHGE\ODZ  7RWKHH[WHQWWKDWIXQGVRQGHSRVLWDWWKHFORVHRIWKHILQDQFLDOLQVWLWXWLRQ¶V EDQNLQJGD\H[FHHGDYDLODEOHIHGHUDOGHSRVLWLQVXUDQFHWKH&LW\UHTXLUHV WKHILQDQFLDOLQVWLWXWLRQWRIXUQLVKFROODWHUDOVHFXULW\RUDFRUSRUDWHVXUHW\ ERQGH[HFXWHGE\DFRPSDQ\DXWKRUL]HGWRGREXVLQHVVLQ0LQQHVRWD7KH SURYLVLRQVRI0LQQ6WDW†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¶VUXOHVDQGUHJXODWLRQV JRYHUQLQJEDQNDFFRXQWVDQG G WRHQGRUVHDQGWRGHSRVLWLQVXFKDFFRXQWFKHFNVGUDIWVDQG RWKHULQVWUXPHQWVDQGIXQGVSD\DEOHWRRUKHOGE\WKH&LW\IRUWKHWHUPEHJLQQLQJRQ-DQXDU\ DQGHQGLQJRQ'HFHPEHU  %(,7)857+(55(62/9('WKDWWKH&RPPRQ&RXQFLODXWKRUL]HVWKH&LW\¶V7UHDVXUHU DQGKLVKHUGHVLJQHHWRPDNHLQYHVWPHQWVRIIXQGVSXUVXDQWWR0LQQHVRWD6WDWXWHV6HFWLRQ $WKURXJK$RURWKHUDSSOLFDEOHODZDQGWKH&LW\¶VLQYHVWPHQWSROLF\GXO\DGRSWHG DQGDPHQGHGE\WKH&RPPRQ&RXQFLOIRUWKHWHUPEHJLQQLQJRQ-DQXDU\DQGHQGLQJ RQ'HFHPEHU  %(,7)857+(55(62/9('WKDWWKH&RPPRQ&RXQFLOGHVLJQDWHVWKDWDOOFKHFNV GUDIWVDQGRWKHUZLWKGUDZDORUGHUVDJDLQVWWKH&LW\¶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±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dŚĞϮϬϭϱƚŽƚĂůƉƌŝĐĞǁĂƐΨϯϭϳ͘ϱϬ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