![]() ![]() Subject always to Condition 7 (Principal Write-down and Principal Write-up) and to cancellation of interest (in whole or in part) pursuant to Condition 3.2 (Interest cancellation), each Capital Security will cease to bear interest from and including its due date for redemption. Principal Writedown means, in relation to any Reference Obligation (other than a CDS Reference Obligation), a reduction in, or writedown of, the principal amount of such Reference Obligation (whether such principal amount is funded or not) or a redemption and/or cancellation in part of such Reference Obligation prior to its final legal maturity in circumstances which do not constitute a default under the Reference Obligation Terms and Conditions and in whichholders of such Reference Obligation receive less than par in relation to such reduction or writedown or, as the case may be, in relation to the part redeemed and/or cancelled (the amount of such reduction or writedown or, as the case may be, the principal amount so redeemed and/or cancelled (as determined by reference to the Applicable Notional Amount of such Reference Obligation and taking into account any reinstatement (as referred to in the paragraph below) being the " Principal Reduction Amount") whether such reduction, writedown, cancellation or redemption occurs as a result of the allocation of losses or cashflow shortfalls howsoever described or otherwise provided that, where the Reference Obligation Terms and Conditions provide for the reinstatement of principal, any reduction in, or writedown or as the case may be, cancellation or redemption of, the principal amount of such Reference Obligation shall only constitute a Principal Writedown Credit Event:Įxamples of Principal Writedown in a sentenceĪ Principal Write-down may occur on one or more occasions and accordingly the Capital Securities may be Written Down on one or more occasions (provided, however, that the principal amount of a Capital Security shall never be reduced to below one cent).įailure to provide any notice referred to in this Condition will not have any impact on the effectiveness of, or otherwise invalidate, any such Principal Write-down or give Holders any rights as a result of such failure.
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