5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 ,QUH.HQQHG\HWDO 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU VWDWHPHQWVDUHFRQVLGHUHGGHIDPDWLRQSHUVH,QDGGLWLRQWKH )LOH 1DPH DS 0LFKLJDQFRXUWDOVRPDGHUHIHUHQFHWRWKHIDFWWKDW'HEWRUV PDGH WKHVH VWDWHPHQWV LQWHQWLRQDOO\ LQDVPXFK DV 'HEWRUV FRQWLQXHGWRPDNHWKHVWDWHPHQWVWRWKLUGSDUWLHVHYHQDIWHU 81,7('67$7(6&28572)$33($/6 WKH\EHFDPHDZDUHRIWKHUHVXOWVRIWKH'1$SDWHUQLW\WHVWV )257+(6,;7+&,5&8,7 ZKLFKH[FOXGHG:LOEXUDV'HEWRU'LDQH.HQQHG\jVIDWKHU BBBBBBBBBBBBBBBBB 7KHUHIRUH HYHQ LI DQ DUJXPHQW FRXOG EH PDGH WKDW WKH EDQNUXSWF\ FRXUW VKRXOG QRW KDYH FRQVLGHUHG ERWK WKH 0LFKLJDQDVZHOODVWKH.HQWXFN\VWDWHFRXUWMXGJPHQWVDV ,QUH 7+20$6 s26(3+ ; WKHGLVWULFWFRXUWSURSHUO\FRQFOXGHGWKHRXWFRPHGRHVQRW .(11('<DQG',$1( FKDQJHLQDVPXFKDVWKH0LFKLJDQMXGJPHQWLQDQGRILWVHOI 0,&+(//( .(11('< SUHFOXGHV OLWLJDWLRQ RI WKLV LVVXH EHFDXVH WKH VWDWHPHQWV DW 1R LVVXHDUHGHIDPDWLRQSHUVHXQGHU0LFKLJDQODZPHDQLQJWKDW 'HEWRUV WKHFRXUWVSUHVXPHWKDWWKHVSHDNHUVPDNHVXFKVWDWHPHQWV BBBBBBBBBBBBBBBBBBBBBBB ! NQRZLQJ WKDW VXEVWDQWLDO KDUP RU LQMXU\ ZLOO UHVXOW 6HH 0DUNRZLW] )GDW KROGLQJWKDWmXQOHVVµWKHDFWRU 7+20$6 s26(3+ .(11('< GHVLUHVWRFDXVHFRQVHTXHQFHVRIKLVDFWRUEHOLHYHVWKDW ',$1( 0,&+(//( .(11('< WKHFRQVHTXHQFHVDUHVXEVWDQWLDOO\FHUWDLQWRUHVXOWIURPLWjKH KDVQRWFRPPLWWHGDµZLOOIXODQGPDOLFLRXVLQMXU\jDVGHILQHG $SSHOODQWV XQGHU D l %XUGHQ1:GDW ILQGLQJ WKDWVWDWHPHQWVDVWRDODFNRIFKDVWLW\DUHGHIDPDWRU\SHUVH Y PHDQLQJWKDWWKHZRUGVDUHDFWLRQDEOHLQWKHPVHOYHVDQGWKDW GDPDJHVDUHSUHVXPHG 3+,//,3 % 0867$,1( &21&/86,21 3+EDQNUXSWF\FRXUW@ GHQLHGIXOOIDLWKDQGFUHGLWWRWKH0LFKLJDQMXGJPHQWE\ $V D UHVXOW RI WKH SURFHHGLQJV LQ WKH 0LFKLJDQ DQG LPSXWLQJWKHPRUHVWULQJHQWmLQWHQWLRQDOlVWDQGDUGXVHG .HQWXFN\VWDWHFRXUWV'HEWRUVFODLPWKDWWKH\ZHUHIRUFHG LQ .HQWXFN\ ZKHQ WKH 0LFKLJDQ FRXUW KDG QRW IRXQG LQWR ILOLQJ &KDSWHU EDQNUXSWF\ 'HEWRUV DWWHPSWHG WR mLQWHQWl $SSHOODQWV DUJXH WKDW WKH %DQNUXSWF\ &RXUW GLVFKDUJHWKH0LFKLJDQMXGJPHQWORGJHGDJDLQVWWKHPDVZHOO ZDV RQO\ DEOH WR LPSXWH mLQWHQWl E\ ORRNLQJ DW WKH DV RWKHU GHEWV +RZHYHU &UHGLWRUV ILOHG DQ DGYHUVDU\ .HQWXFN\MXGJPHQW+RZHYHULWLVQRWPHUHO\.HQWXFN\ SURFHHGLQJ FODLPLQJ WKDW WKHLU MXGJPHQW REWDLQHG DJDLQVW ODZEXW0LFKLJDQODZDVZHOOWKDWZRUGVLPSXWLQJODFN 'HEWRUVLQ0LFKLJDQZDVQRQGLVFKDUJHDEOHLQDVPXFKDVWKH RIFKDVWLW\DUHGHIDPDWRU\SHUVHLHLQMXULRXVE\WKHLU GHEWZDVWKHUHVXOWRImZLOOIXODQGPDOLFLRXV LQMXU\E\WKH QDWXUH0&/ )XUWKHUPRUHWKH0LFKLJDQ GHEWRUWRDQRWKHUHQWLW\RUWRWKHSURSHUW\RIDQRWKHUHQWLW\l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s$DW EDQNUXSWF\FRXUWRSLQHGDVIROORZV ,QUH.HQQHG\HWDO 1R 1R ,QUH.HQQHG\HWDO ,QVXPPDWLRQWKLV&RXUWILQGVWKDWWKHIDFWVQHFHVVDU\ s$DW WRVXSSRUWDGHWHUPLQDWLRQRIQRQGLVFKDUJHDELOLW\XQGHU D RIWKH3ODLQWLIIVjGHIDPDWLRQFODLPDUHFOHDUO\ :HDJUHHZLWKWKHGLVWULFWFRXUW$OWKRXJK*HLJHUKDG\HW HVWDEOLVKHG E\ WKH SULRU .HQWXFN\ DQG 0LFKLJDQ WREHGHFLGHGDQGWKHEDQNUXSWF\FRXUWZDVODERULQJXQGHU MXGJPHQWV)LUVWWKH0LFKLJDQMXGJPHQWHVWDEOLVKHVWKDW FDVH ODZ ZKLFK VHW IRUWK WKH LQFRUUHFW VWDQGDUG IRU WKH VWDWHPHQWV DW LVVXH ZHUH LQ IDFW PDGH ZKLOH WKH QRQGLVFKDUJHDEOLW\WKHEDQNUXSWF\FRXUWQRQHWKHOHVVFDSWXUHG .HQWXFN\ MXGJPHQW HVWDEOLVKHV WKDW WKH\ ZHUH WKHHVVHQFHRI*HLJHUjVWHVWLQLWVUHDVRQLQJ QDPHO\WKDWRQO\ GHIDPDWRU\ LQ FKDUDFWHU DQG LQWHQWLRQDO LQ QDWXUH DFWVGRQHZLWKWKHLQWHQWWRFDXVHLQMXU\oDQGQRWPHUHO\DFWV 6HFRQG WKH .HQWXFN\ MXGJPHQW HVWDEOLVKHV WKDW WKH GRQHLQWHQWLRQDOO\oULVHWRWKHOHYHORIZLOOIXODQGPDOLFLRXV VWDWHPHQWV ZHUH LQKHUHQWO\ LQMXULRXV JLYLQJ ULVH WR DQ LQMXU\IRUSXUSRVHVRIVDWLVI\LQJ D 6HH*HLJHU LQIHUHQFHRIDQH[SHFWDWLRQRIKDUPDQGLQWHQWWRLQMXUH 86DW 0DUNRZLW] )GDW KROGLQJWKDWmXQOHVV /DVWO\WKH0LFKLJDQMXGJPHQWH[SUHVVO\HVWDEOLVKHGWKDW µWKH DFWRU GHVLUHV WR FDXVH FRQVHTXHQFHV RI KLV DFW RU WKHVWDWHPHQWVZHUHPDGHZLWKRXWMXVWFDXVHRUH[FXVH EHOLHYHV WKDW WKH FRQVHTXHQFHV DUH VXEVWDQWLDOO\ FHUWDLQ WR &RQVHTXHQWO\WKH3ODLQWLIIVDUHHQWLWOHGWRMXGJPHQWDV UHVXOWIURPLWjKHKDVQRWFRPPLWWHGDµZLOOIXODQGPDOLFLRXV DPDWWHURIODZSXUVXDQWWR D ZLWKUHJDUGWRWKH LQMXU\jDVGHILQHGXQGHU D l QRQGLVFKDUJHDELOLW\RIWKHLUGHIDPDWLRQFODLP ,QGHHGWKHEDQNUXSWF\FRXUWVWDWHGLQSURQJVRQHDQGWZR s$DW IRRWQRWHRPLWWHG 7KH2FWREHU RI LWV WKUHH SURQJ WHVW WKDW WR ILQG &UHGLWRUVj MXGJPHQW RUGHUH[SUHVVO\VWDWHVWKDWLWLVQRWDILQDORUGHU QRQGLVFKDUJHDEOHLQWKLVFDVHWKH&UHGLWRUVKDGWRSURYHWKDW 'HEWRUVDFWHGZLWKLQWHQWDVZHOODVZLWKVXEVWDQWLDOFHUWDLQW\ 7KHUHDIWHURQ2FWREHU &UHGLWRUVILOHGDPRWLRQ WKDW KDUP ZRXOG UHVXOW IURP WKHLU DFWLRQV 7KLV WHVW LV WRYROXQWDULO\GLVPLVVWKRVHSRUWLRQVRIWKHFRPSODLQWXSRQ FRQVLVWHQWZLWK*HLJHUDVZHOODV0DUNRZLW]7KHUHIRUHLW ZKLFKWKHGLVWULFWFRXUWGLGQRWJUDQWVXPPDU\MXGJPHQWDQG LVQRWWKHWHVWWKDWWKHEDQNUXSWF\FRXUWDSSOLHGLQUHQGHULQJ WR PDNH WKH FRXUWjV MXGJPHQW ILQDO 7KH EDQNUXSWF\ FRXUW LWVGHFLVLRQILQGLQJWKHGHEWQRQGLVFKDUJHDEOHWKDWLVDWLVVXH HQWHUHG DQ RUGHU RQ 1RYHPEHU VXVWDLQLQJ WKH KHUH UDWKHUWKHEDQNUXSWF\FRXUWjVDSSOLFDWLRQRIWKHWHVWDQG &UHGLWRUVjPRWLRQ WKHRUGHUSURYLGHVDVIROORZV XVH RI 0LFKLJDQ DQG .HQWXFN\ GHFLVLRQV WR ILQG WKH GHEW QRQGLVFKDUJHDEOHXQGHU D LVWKHSLYRWDOLVVXH ,7,6)857+(525'(5('$1'$'s8'*('WKDW IRUWKHUHDVRQVVWDWHGLQWKH&RXUWjV2SLQLRQDQG2UGHU RI2FWREHU WKHGHEWFUHDWHGE\WKH MXGJPHQWUHQGHUHGE\WKH&LUFXLW&RXUWIRUWKH&RXQW\RI ,QJKDP 6WDWH RI 0LFKLJDQ RI DQG FRQFHUQLQJ WKH 3ODLQWLIIVjGHIDPDWLRQFODLPVDJDLQVWWKH'HIHQGDQWVLV KHUHE\ GHFODUHG WR EH QRQGLVFKDUJHDEOH LQ WKH IXOO DPRXQWRISXUVXDQWWR86& D 7KLVLVDILQDODQGDSSHDODEOHMXGJPHQWWKHUHEHLQJQR :H QRWH WKDW QHLWKHU &UHGLWRUV QRU 'HEWRUV FLWH WR 0DUNRZLW] LQ WKHLU MXVWUHDVRQIRUGHOD\ EULHIV 5DWKHU 'HEWRUV DQG &UHGLWRUV HDFK DUJXH *HLJHUjV HIIHFW RQ WKH VWDWXV RI WKH ODZ LQ WKH 6L[WK &LUFXLW +RZHYHU WKHVH DUJXPHQWV DUH IRU 0DUNRZLW] FOHDUO\ VHW IRUWK WKH HIIHFW RI *HLJHU RQ WKH .HQQHG\ Y 0XVWDLQH ,Q UH .HQQHG\ 1R QDXJKW LQDVPXFK DV ODZ LQ WKLV FLUFXLW6HH 0DUNRZLW] Y &DPSEHOO ,Q UH 0DUNRZLW] $3 1R %DQNU :' .\ 1RY )G DW WK &LU ,QUH.HQQHG\HWDO 1R 1R ,QUH.HQQHG\HWDO *HLJHU LQ UHQGHULQJ LWV GHFLVLRQ WKDW &UHGLWRUVj MXGJPHQW XQSXEOLVKHGRUGHUJUDQWLQJ3ODLQWLIIVjPRWLRQIRUYROXQWDU\ DJDLQVW'HEWRUVZDVQRQGLVFKDUJHDEOHXQGHU D ,Q GLVPLVVDORIFODLPVDQGWRPDNHMXGJPHQWILQDO GRLQJVRWKHEDQNUXSWF\FRXUWDSSOLHGWKHIROORZLQJWHVW 2Q 'HFHPEHU 'HEWRUV ILOHG D PRWLRQ IRU :LWKWKDWGHILQLWLRQ>RIGHIDPDWLRQIURPWKH0LFKLJDQ UHFRQVLGHUDWLRQRIWKHFRXUWjV1RYHPEHURUGHUZKLFKWKH FRXUWV@ LQ PLQG WKH FUHGLWRU VHHNLQJ WKH D EDQNUXSWF\FRXUWGHQLHGLQDPHPRUDQGXPRSLQLRQDQGRUGHU QRQGLVFKDUJHDELOLW\GHWHUPLQDWLRQPXVWGHPRQVWUDWH HQWHUHGRQsDQXDU\ 'HEWRUVWKHUHDIWHUDSSHDOHGWKH WKH GHEWRU LQWHQWLRQDOO\ SXEOLVKHG D GHIDPDWRU\ EDQNUXSWF\ FRXUWjV GHFLVLRQ WR WKH 8QLWHG 6WDWHV 'LVWULFW VWDWHPHQW WKH GHEWRU NQHZ WKDW WKH GHIDPDWRU\ &RXUW IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ ,Q D VWDWHPHQWZDVVXEVWDQWLDOO\FHUWDLQWRKDUPWKHSHUVRQ PHPRUDQGXPRSLQLRQDQGRUGHUGDWHG6HSWHPEHU DERXWZKRPWKHVWDWHPHQWFRQFHUQHG DQG WKHUHZDV WKH GLVWULFW FRXUW DIILUPHG WKH EDQNUXSWF\ FRXUWjV GHFLVLRQ QRMXVWFDXVHRUH[FXVHIRUPDNLQJWKHVWDWHPHQW ILQGLQJ&UHGLWRUVjMXGJPHQWDJDLQVW'HEWRUVQRQGLVFKDUJHDEOH XQGHU.DZDDXKDXY*HLJHU86 7KHUHDIWHU s$DW WKHGLVWULFWFRXUWLVVXHGLWVFRUUHVSRQGLQJMXGJPHQWDIILUPLQJ WKHEDQNUXSWF\FRXUWjVRUGHUDQGLWLVIURPWKLVMXGJPHQWWKDW 7KHGLVWULFWFRXUWIRXQGWKDWGHVSLWHWKHEDQNUXSWF\FRXUWjV 'HEWRUVQRZDSSHDO UHOLDQFHRQFDVHODZZKLFKVHWIRUWKWKHLQFRUUHFWVWDQGDUGIRU GHWHUPLQLQJ ZKHWKHU D GHEW LV QRQGLVFKDUJHDEOH XQGHU D WKH EDQNUXSWF\ FRXUW QRQHWKHOHVV PDQDJHG WR FUDIWWKHDSSURSULDWHWHVWIRUGHWHUPLQLQJQRQGLVFKDUJHDELOLW\ XQGHUSUHYDLOLQJ6XSUHPH&RXUWSUHFHGHQW6SHFLILFDOO\WKH GLVWULFWFRXUWRSLQHGDVIROORZV $OWKRXJK WKH SDUWLHV IDLOHG WR SURYLGH WKLV &RXUW DV ZHOO DV WKH $SSHOODQWV DUJXH WKDW WKH %DQNUXSWF\ &RXUW GLVWULFW FRXUW ZLWK D FRS\ RI WKH EDQNUXSWF\ FRXUWjV 1RYHPEHU RUGHU ZH REWDLQHG D FRS\ IURP WKH 8QLWHG 6WDWHV %DQNUXSWF\ &RXUW IRU HUURQHRXVO\DSSOLHGWKHVWDQGDUGVRI3HUNLQVY6FKDUIIH WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ )G WK&LU DVWDQGDUGGLVFUHGLWHGE\ .DZDDXKDXY*HLJHU86 .DZDDXKDX %HFDXVH WKH PRWLRQ IRU UHFRQVLGHUDWLRQ ZDV ILOHG ZLWKLQ WHQ GD\V RI KHOG WKDW 6HF D QRQGLVFKDUJHDEOLW\ UHTXLUHG D WKH GLVWULFW FRXUWjV ILQDO RUGHU HQWHUHG RQ 1RYHPEHU 'HEWRUV ILQGLQJWKDWWKHGHEWRULQWHQGHGLQMXU\UDWKHUWKDQRQO\D ZHUH LQ FRPSOLDQFH ZLWK WKH UHOHYDQW SURFHGXUDO UXOHV $00 ) (' 5 5 % ILQGLQJWKDWWKHGHEWRULQWHQGHGWKHDFWZKLFKFDXVHGWKH 3 VWDWLQJ WKDW 5XOH RI WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH LQMXU\ $OWKRXJK WKH .DZDDXKDX RSLQLRQ ZDV QRW DSSO\ LQ EDQNUXSWF\ SURFHHGLQJV ) (' ,9 5 & 3 H VWDWLQJ WKDW D PRWLRQ WR DOWHU RU DPHQG D MXGJPHQW PXVW EH ILOHG QR ODWHU WKDQ WHQ GD\V DYDLODEOH WR WKH %DQNUXSWF\ &RXUW sXGJH 5REHUWVj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jV GXW\ WR VHDUFK WKH UHFRUG IRU UHOHYDQW PDWHULDOV DQG IDLOXUH WR SURYLGH WKH &RXUW ZLWK WKH UHFRUG LW QHHGV FDQ OHDG WR GLVPLVVDO RI WKH FOHDU WKDW LQ PDNLQJ WKH VWDWHPHQWV WKH .HQQHG\V DSSHDO 6HH 0RUDOHV Y $P +RQGD 0RWRU &R ,QF )G LQWHQGHGLQMXU\ Q WK &LU ,QUH.HQQHG\HWDO 1R 1R ,QUH.HQQHG\HWDO ',6&866,21 QRWPHUHO\DFWVGRQHLQWHQWLRQDOO\oULVHWRWKHOHYHORIZLOOIXO DQGPDOLFLRXVLQMXU\IRUSXUSRVHVRIVDWLVI\LQJ D :KHQWKLV&RXUWFRQVLGHUVDQDSSHDOWDNHQIURPWKHGLVWULFW 6HHLG7KH&RXUWUHDVRQHGDVIROORZV FRXUWjV ILQDO RUGHU LQ D EDQNUXSWF\ FDVH WKH &RXUW LQGHSHQGHQWO\UHYLHZVWKHEDQNUXSWF\FRXUWjVGHFLVLRQ6HH 7KH ZRUG mZLOOIXOl LQ D PRGLILHV WKH ZRUG .RHQLJ6SRUWLQJ*RRGV,QFY0RUVH5G&R ,QUH.RHQLJ mLQMXU\l LQGLFDWLQJ WKDW QRQGLVFKDUJHDELOLW\ WDNHV D 6SRUWLQJ*RRGV,QF )G WK&LU ,Q GHOLEHUDWHRULQWHQWLRQDOLQMXU\QRWPHUHO\DGHOLEHUDWHRU GRLQJVRWKH&RXUWUHYLHZVWKHEDQNUXSWF\FRXUWjVILQGLQJVRI LQWHQWLRQDODFWWKDWOHDGVWRLQMXU\+DG&RQJUHVVPHDQW IDFWIRUFOHDUHUURUDQGLWVFRQFOXVLRQVRIODZGHQRYR6HH WRH[HPSWGHEWVUHVXOWLQJIURPXQLQWHQWLRQDOO\LQIOLFWHG 0LOOHUV&RYH(QHUJ\&R,QFY0RRUH ,QUH0LOOHUV&RYH LQMXULHVLWPLJKWKDYHGHVFULEHGLQVWHDGmZLOOIXODFWVWKDW (QHUJ\&R,QF )G WK&LU 7KLV FDXVH LQMXU\l 2U &RQJUHVV PLJKW KDYH VHOHFWHG DQ &RXUWUHYLHZVWKHJUDQWRIDPRWLRQIRUVXPPDU\MXGJPHQWGH DGGLWLRQDOZRUGRUZRUGVLHmUHFNOHVVlRUmQHJOLJHQWl QRYRDVDPDWWHURIODZ6HH0DUNRZLW]Y&DPSEHOO ,QUH WR PRGLI\ mLQMXU\l 0RUHRYHU DV WKH (LJKWK &LUFXLW 0DUNRZLW] )G WK&LU REVHUYHGWKH D IRUPXODWLRQWULJJHUVLQWKHODZ\HUjV PLQG WKH FDWHJRU\ mLQWHQWLRQDO WRUWVl DV GLVWLQJXLVKHG $ 7HVW IRU 'HWHUPLQLQJ 'LVFKDUJHDELOLW\ 8QGHU IURP QHJOLJHQW RU UHFNOHVV WRUWV ,QWHQWLRQDO WRUWV 6HFWLRQ D JHQHUDOO\UHTXLUHWKDWWKHDFWRULQWHQGmWKHFRQVHTXHQFHV RI DQ DFWl QRW VLPSO\ mWKH DFW LWVHOIl 5HVWDWHPHQW 6HFWLRQ D RI WKH %DQNUXSWF\ &RGH SURYLGHV IRU DQ 6HFRQG RI 7RUWV $ &RPPHQW D S H[FHSWLRQ WR WKH GLVFKDUJHDELOLW\ RI FHUWDLQ GHEWV HPSKDVLVDGGHG 6SHFLILFDOO\ D SURYLGHVIRUSXUSRVHVRIWKLVDFWLRQ DVIROORZV ,G D $ GLVFKDUJH XQGHU 6HFWLRQ D $OLWWOHPRUHWKDQD\HDUDIWHUWKH6XSUHPH&RXUWjVGHFLVLRQ E RIWKLVWLWOHGRHVQRWGLVFKDUJHDQLQGLYLGXDO LQ*HLJHUWKLV&RXUWKDGRFFDVLRQWRUHYLVLWWKHPHDQLQJRI GHEWRUIURPDQ\GHEWo mZLOOIXODQGPDOLFLRXVLQMXU\lLQOLJKWRIWKH6XSUHPH&RXUWjV SURQRXQFHPHQW DQG KHOG mWKDW WKH 3HUNLQV VWDQGDUG IRU IRUZLOOIXODQGPDOLFLRXVLQMXU\E\WKHGHEWRUWR µZLOOIXODQGPDOLFLRXVLQMXU\jZDVHIIHFWLYHO\RYHUUXOHGE\WKH DQRWKHUHQWLW\RUWRWKHSURSHUW\RIDQRWKHUHQWLW\ 6XSUHPH&RXUWLQ*HLJHUDQGZHQRZH[SUHVVO\RYHUUXOHWKDW VWDQGDUGl6HH0DUNRZLW]Y&DPSEHOO ,QUH0DUNRZLW] 86& D ,Q3HUNLQVY6FKDUIIH)G )G WK &LU 7KH &RXUW DUWLFXODWHG WKLV WK &LU WKLV &RXUW KHOG WKDW mZLOOIXO DQG FLUFXLWjVQHZVWDQGDUGLQOLJKWRI*HLJHUDVIROORZV mZHQRZ PDOLFLRXVLQMXU\lDVXVHGZLWKLQ D FRXOGEHIRXQG KROGWKDWXQOHVVµWKHDFWRUGHVLUHVWRFDXVHFRQVHTXHQFHVRI ZKHQ DQ DFWRU LQWHQGV WKH DFW FRPPLWWHG UHJDUGOHVV RI KLVDFWRUEHOLHYHVWKDWWKHFRQVHTXHQFHVDUHVXEVWDQWLDOO\ ZKHWKHUKHLQWHQGVWKHFRQVHTXHQFHVWKHUHRI+RZHYHULQ FHUWDLQWRUHVXOWIURPLWjKHKDVQRWFRPPLWWHGDµZLOOIXODQG .DZDDXKDXY*HLJHU86 WKH6XSUHPH PDOLFLRXVLQMXU\jDVGHILQHGXQGHU D l,GDW &RXUW DGGUHVVHG WKH mSLYRWDO TXHVWLRQl RI ZKHWKHU FLWDWLRQRPLWWHG m D jVFRPSDVVFRYHU>V@DFWVGRQHLQWHQWLRQDOO\WKDW FDXVHLQMXU\RURQO\DFWVGRQHZLWKWKHDFWXDOLQWHQWWR ,QWKHPDWWHUDWKDQGWKHEDQNUXSWF\FRXUWFLWHGDQGUHOLHG FDXVHLQMXU\l,QDQVZHULQJWKLVLQTXLU\WKH6XSUHPH&RXUW XSRQ3HUNLQVDVZHOODV:KHHOHUY/DXGDQL)G KHOGWKDWRQO\DFWVGRQHZLWKWKHLQWHQWWRFDXVHLQMXU\oDQG WK&LU ERWKRIZKLFKKDYHVLQFHEHHQRYHUUXOHGE\