5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH D S
81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB
&$/9,1 %$,/(< ; 3HWLWLRQHU$SSHOODQW 1R Y ! %(77< 0,7&+(//:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW7ROHGR 1R nsRKQ:3RWWHU'LVWULFWsXGJH $UJXHG sXQH 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH %$7&+(/'(5DQG0225(&LUFXLWsXGJHV %(57(/60$1'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' $OLVRQ 0 &ODUN 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW sRQDWKDQ 5 )XONHUVRQ
7KH +RQRUDEOH :LOOLDP 2 %HUWHOVPDQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
%DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
2 ) ) ,& ( 2 ) 7 + ( $ 7 7 2 5 1 ( < * ( 1 ( 5 $ / RUORZHUFRXUWIRUWKDWPDWWHU FDVH$FFRUGLQJO\XQGHU &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR WKH$('3$WKHZULWPXVWQRWEHJUDQWHG IRU $SSHOOHH 21 %5,() sRKQ )HQORQ 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 7KH GHFLVLRQ RI WKH GLVWULFW FRXUW GHQ\LQJ WKH ZULW LV &200,66,21&ROXPEXV2KLRIRU$SSHOODQWsRQDWKDQ5 $)),50(' )XONHUVRQ 2)),&( 2) 7+( $77251(< *(1(5$/ &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR IRU$SSHOOHH&DOYLQ/%DLOH\0DQVILHOG2KLRSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %(57(/60$1 'LVWULFW sXGJH ,Q WKLV DSSHDO &DOYLQ %DLOH\ VHHNV UHYHUVDO RI WKH GLVWULFW FRXUWjV GHQLDO RI KLV SHWLWLRQIRUDZULWRIKDEHDVFRUSXV%DLOH\FRQWHQGVWKDWKH ZDVGHSULYHGRIKLVULJKWVXQGHUWKH&RQIURQWDWLRQ&ODXVH ZKHQWKHWULDOFRXUWSHUPLWWHGXVHRIYLGHRWDSHGGHSRVLWLRQV DW WULDO ZLWKRXW ILUVW ILQGLQJ WKH ZLWQHVVHV XQDYDLODEOH %HFDXVHZHILQG%DLOH\DGPLWWHGLQFRXUWWRWKHXQDYDLODELOLW\ RI WKH ZLWQHVVHV DQG KDG SUHYLRXVO\ VWLSXODWHG WKDW WKH GHSRVLWLRQVFRXOGEHUHDGDWWULDOZHDIILUPWKHGHFLVLRQRI WKHWULDOFRXUW 352&('85$/$1')$&78$/%$&.*5281' 2Q 2FWREHU WKH +DQFRFN &RXQW\ *UDQG sXU\ UHWXUQHGDQLQGLFWPHQWFKDUJLQJSHWLWLRQHUZLWKWKUHHFRXQWV RIUREEHU\LQYLRODWLRQRI2KLR5HY&RGH $ 2Q sXQH WKH VFKHGXOHG WULDO GDWH WKH SHWLWLRQHU UHTXHVWHGDQGZDVJUDQWHGDFRQWLQXDQFHLQRUGHUWRKLUHDQ LQYHVWLJDWRUWRORFDWHGHIHQVHZLWQHVVHV,QDQWLFLSDWLRQRI WKHWULDOWKHVWDWHKDGEURXJKWLQWZRZLWQHVVHVIURP$UL]RQD
7KH ORZHU IHGHUDO FRXUWV XQLIRUPO\ UHFRJQL]H WKH DELOLW\ RI WKH 7KH 6L[WK $PHQGPHQW WR WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ SURYLGHV GHIHQGDQW WR HQWHU LQWR YROXQWDU\ DQG LQIRUPHG ELQGLQJ VWLSXODWLRQV LQ SDUW m,Q DOO FULPLQDO SURVHFXWLRQV WKH DFFXVHG VKDOO HQMR\ WKH ULJKW 8QLWHG 6WDWHV Y 3OLWPDQ )G QG &LU 8QLWHG 6WDWHV Y WR EH FRQIURQWHG ZLWK WKH ZLWQHVVHV DJDLQVW KLP l /HZLV )G WK &LU FHUW GHQLHG 86 8QLWHG 6WDWHV Y 6FKXVWHU )G WK &LU FHUW GHQLHG 86 6HH 2SLQ RI WKH 6WDWH $SSHOODWH &RXUW s$ SS 8QLWHG 6WDWHV Y 6WHSKHQV )G WK &LU %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
ILQJHUSULQW RU RWKHU H[SHUW ZRXOG EH RU WKDW D EDQN ZDV WRWHVWLI\%HFDXVHDQHZWULDOGDWHFRXOGQRWEHVHWZLWKDQ\ IHGHUDOO\LQVXUHGZLWKRXWFDOOLQJDEDQNRIILFLDOWRWHVWLI\ FHUWDLQW\DQGWKHZLWQHVVHVjDYDLODELOLW\DWWULDOFRXOGQRWEH JXDUDQWHHGWKHVWDWHPRYHGSXUVXDQWWR5XOHRIWKH2KLR 7KH6XSUHPH&RXUWKDVVWDWHG 5XOHVRI&ULPLQDO3URFHGXUHWRGHSRVHWKHVHWZRZLWQHVVHV IRUSXUSRVHVRIWULDO7KHSHWLWLRQHUDFNQRZOHGJHVLQKLVVWDWH ,QGHHG HYLGHQWLDU\ VWLSXODWLRQV DUH D YDOXDEOH DQG DSSHOODWH EULHI WKDW KLV FRXQVHO GLG QRW VD\ DQ\WKLQJ LQ LQWHJUDO SDUW RI HYHU\GD\ WULDO SUDFWLFH 3ULRU WR WULDO UHVSRQVH WR WKH VWDWHjV PRWLRQ s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s$SS &LY3URF F )HG5XOH&ULP3URF'XULQJ 7KHVWDWHWULDOFRXUWDQGFRXUWRIDSSHDOVIRXQGDVDIDFW WKH FRXUVH RI WULDO SDUWLHV IUHTXHQWO\ GHFLGH WR ZDLYH WKDWSHWLWLRQHUjVDJUHHPHQWWKDWWKHGHSRVLWLRQVPLJKWEHWDNHQ HYLGHQWLDU\ REMHFWLRQV DQG VXFK WDFWLFV DUH URXWLQHO\ DQGXVHGZDVDmTXLGSURTXRlIRUWKHFRQWLQXDQFH s$S KRQRUHG E\ WULDO MXGJHV 6HH :ULJKW *UDKDP DW m,W LV OHIW WR WKH SDUWLHV LQ WKH ILUVW LQVWDQFH WR GHFLGH ZKHWKHU RU QRW WKH UXOHV DUH WR EH $WWULDOWKHSHWLWLRQHUKDGQHZFRXQVHO$OWKRXJKWKHVWDWH HQIRUFHG,WLVRQO\LQUDUHFDVHVWKDWWKHWULDOMXGJH GLG QRW VHFXUH WKH ZLWQHVVHVj SUHVHQFH IRU WKH WULDO WKH ZLOO H[FOXGH HYLGHQFH WKH\ DUH FRQWHQW WR VHH SHWLWLRQHUGLGQRWVSHFLILFDOO\REMHFWWRWKHVWDWHjVIDLOXUHWR DGPLWWHGl VHHDOVR8QLWHG6WDWHVY&RRQDQ )G GHPRQVWUDWH WKDW WKH ZLWQHVVHV ZHUH XQDYDLODEOH ,QVWHDG &$ FULPLQDOGHIHQGDQWQRWHQWLWOHG SHWLWLRQHUjVQHZFRXQVHOPDGHDPRWLRQDVNLQJWKHFRXUWWR mWRHYDGHWKHFRQVHTXHQFHVRIDQXQVXFFHVVIXOWDFWLFDO H[FOXGHWKHGHSRVLWLRQVDQGUHTXLUHWKHZLWQHVVHVWRDSSHDU GHFLVLRQl PDGH LQ ZHOFRPLQJ DGPLVVLRQ RI RWKHUZLVH EHFDXVH DOWKRXJK SULRU FRXQVHO SDUWLFLSDWHG LQ WKH LQDGPLVVLEOHHYLGHQFH GHSRVLWLRQVSUHVHQWFRXQVHOKDGQRWKDGWKHRSSRUWXQLW\WR FURVVH[DPLQHWKHZLWQHVVHV&RXQVHOVWDWHGWRWKHFRXUWm, 6XFK VWLSXODWLRQV VDYH WKH WD[SD\HUV D JUHDW GHDO RI XQGHUVWDQG WKH\ >WKH ZLWQHVVHV@ DUH XQDYDLODEOHl DQG mWKH H[SHQVH,IWKHUXOHDGYRFDWHGE\SHWLWLRQHUZHUHDGRSWHGQR LVVXHKHUHLVQRWZKHWKHURUQRWDV>VLF@WKHVWLSXODWLRQJRLQJ VXFKVWLSXODWLRQVZRXOGEHELQGLQJDQGWKHUHIRUHZRXOGQRW WR ZLWKKROG >VLF@ LV WKH GHFODUDQW XQDYDLODEOH WKH LVVXH LV EH PDGH WR WKH JUHDW GHWULPHQW RI VRXQG MXGLFLDO ZKDW KDSSHQV ZKHQ FRXQVHO QHZ FRXQVHO LV SURYLGHG WR D DGPLQLVWUDWLRQ GHIHQGDQWWKHVWDWXVRIWKRVHGHSRVLWLRQVl s$SS +H IXUWKHU VWDWHG mWKH LVVXH , EHOLHYH KHUH LV ZKDW 7KHUHIRUHZHFRQFOXGHWKDWWKHGHFLVLRQRIWKH2KLRFRXUWV KDSSHQV ZKHQ D FDVH LV SDVVHG GRZQ IURP RQH FRXQVHO WR ZDVQHLWKHUFRQWUDU\WRQRUDQXQUHDVRQDEOHDSSOLFDWLRQRIWKH DQRWKHU,DPQRWDWWDFNLQJWKHVWLSXODWLRQV,ZDVQRWSUHVHQW UXOHRI2KLRY5REHUWVVXSUDRURIDQ\RWKHU6XSUHPH&RXUW :KHQWKHVHGHSRVLWLRQVZHUHWDNHQ,ZDVQRWSUHVHQWZKHQ WKHGHFLVLRQZDVPDGHWRWDNHWKHVHGHSRVLWLRQVWRPDNHWKH REMHFWLRQVRUDQ\SDUWRIWKDWDWDOOl s$SS 8QLWHG 6WDWHV Y 0H]]DQDWWR 86 6 &W %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
Free access — add to your briefcase to read the full text and ask questions with AI
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH D S
81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB
&$/9,1 %$,/(< ; 3HWLWLRQHU$SSHOODQW 1R Y ! %(77< 0,7&+(//:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW7ROHGR 1R nsRKQ:3RWWHU'LVWULFWsXGJH $UJXHG sXQH 'HFLGHGDQG)LOHG 1RYHPEHU %HIRUH %$7&+(/'(5DQG0225(&LUFXLWsXGJHV %(57(/60$1'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' $OLVRQ 0 &ODUN 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW sRQDWKDQ 5 )XONHUVRQ
7KH +RQRUDEOH :LOOLDP 2 %HUWHOVPDQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
%DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
2 ) ) ,& ( 2 ) 7 + ( $ 7 7 2 5 1 ( < * ( 1 ( 5 $ / RUORZHUFRXUWIRUWKDWPDWWHU FDVH$FFRUGLQJO\XQGHU &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR WKH$('3$WKHZULWPXVWQRWEHJUDQWHG IRU $SSHOOHH 21 %5,() sRKQ )HQORQ 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 7KH GHFLVLRQ RI WKH GLVWULFW FRXUW GHQ\LQJ WKH ZULW LV &200,66,21&ROXPEXV2KLRIRU$SSHOODQWsRQDWKDQ5 $)),50(' )XONHUVRQ 2)),&( 2) 7+( $77251(< *(1(5$/ &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR IRU$SSHOOHH&DOYLQ/%DLOH\0DQVILHOG2KLRSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %(57(/60$1 'LVWULFW sXGJH ,Q WKLV DSSHDO &DOYLQ %DLOH\ VHHNV UHYHUVDO RI WKH GLVWULFW FRXUWjV GHQLDO RI KLV SHWLWLRQIRUDZULWRIKDEHDVFRUSXV%DLOH\FRQWHQGVWKDWKH ZDVGHSULYHGRIKLVULJKWVXQGHUWKH&RQIURQWDWLRQ&ODXVH ZKHQWKHWULDOFRXUWSHUPLWWHGXVHRIYLGHRWDSHGGHSRVLWLRQV DW WULDO ZLWKRXW ILUVW ILQGLQJ WKH ZLWQHVVHV XQDYDLODEOH %HFDXVHZHILQG%DLOH\DGPLWWHGLQFRXUWWRWKHXQDYDLODELOLW\ RI WKH ZLWQHVVHV DQG KDG SUHYLRXVO\ VWLSXODWHG WKDW WKH GHSRVLWLRQVFRXOGEHUHDGDWWULDOZHDIILUPWKHGHFLVLRQRI WKHWULDOFRXUW 352&('85$/$1')$&78$/%$&.*5281' 2Q 2FWREHU WKH +DQFRFN &RXQW\ *UDQG sXU\ UHWXUQHGDQLQGLFWPHQWFKDUJLQJSHWLWLRQHUZLWKWKUHHFRXQWV RIUREEHU\LQYLRODWLRQRI2KLR5HY&RGH $ 2Q sXQH WKH VFKHGXOHG WULDO GDWH WKH SHWLWLRQHU UHTXHVWHGDQGZDVJUDQWHGDFRQWLQXDQFHLQRUGHUWRKLUHDQ LQYHVWLJDWRUWRORFDWHGHIHQVHZLWQHVVHV,QDQWLFLSDWLRQRI WKHWULDOWKHVWDWHKDGEURXJKWLQWZRZLWQHVVHVIURP$UL]RQD
7KH ORZHU IHGHUDO FRXUWV XQLIRUPO\ UHFRJQL]H WKH DELOLW\ RI WKH 7KH 6L[WK $PHQGPHQW WR WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ SURYLGHV GHIHQGDQW WR HQWHU LQWR YROXQWDU\ DQG LQIRUPHG ELQGLQJ VWLSXODWLRQV LQ SDUW m,Q DOO FULPLQDO SURVHFXWLRQV WKH DFFXVHG VKDOO HQMR\ WKH ULJKW 8QLWHG 6WDWHV Y 3OLWPDQ )G QG &LU 8QLWHG 6WDWHV Y WR EH FRQIURQWHG ZLWK WKH ZLWQHVVHV DJDLQVW KLP l /HZLV )G WK &LU FHUW GHQLHG 86 8QLWHG 6WDWHV Y 6FKXVWHU )G WK &LU FHUW GHQLHG 86 6HH 2SLQ RI WKH 6WDWH $SSHOODWH &RXUW s$ SS 8QLWHG 6WDWHV Y 6WHSKHQV )G WK &LU %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
ILQJHUSULQW RU RWKHU H[SHUW ZRXOG EH RU WKDW D EDQN ZDV WRWHVWLI\%HFDXVHDQHZWULDOGDWHFRXOGQRWEHVHWZLWKDQ\ IHGHUDOO\LQVXUHGZLWKRXWFDOOLQJDEDQNRIILFLDOWRWHVWLI\ FHUWDLQW\DQGWKHZLWQHVVHVjDYDLODELOLW\DWWULDOFRXOGQRWEH JXDUDQWHHGWKHVWDWHPRYHGSXUVXDQWWR5XOHRIWKH2KLR 7KH6XSUHPH&RXUWKDVVWDWHG 5XOHVRI&ULPLQDO3URFHGXUHWRGHSRVHWKHVHWZRZLWQHVVHV IRUSXUSRVHVRIWULDO7KHSHWLWLRQHUDFNQRZOHGJHVLQKLVVWDWH ,QGHHG HYLGHQWLDU\ VWLSXODWLRQV DUH D YDOXDEOH DQG DSSHOODWH EULHI WKDW KLV FRXQVHO GLG QRW VD\ DQ\WKLQJ LQ LQWHJUDO SDUW RI HYHU\GD\ WULDO SUDFWLFH 3ULRU WR WULDO UHVSRQVH WR WKH VWDWHjV PRWLRQ s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s$SS &LY3URF F )HG5XOH&ULP3URF'XULQJ 7KHVWDWHWULDOFRXUWDQGFRXUWRIDSSHDOVIRXQGDVDIDFW WKH FRXUVH RI WULDO SDUWLHV IUHTXHQWO\ GHFLGH WR ZDLYH WKDWSHWLWLRQHUjVDJUHHPHQWWKDWWKHGHSRVLWLRQVPLJKWEHWDNHQ HYLGHQWLDU\ REMHFWLRQV DQG VXFK WDFWLFV DUH URXWLQHO\ DQGXVHGZDVDmTXLGSURTXRlIRUWKHFRQWLQXDQFH s$S KRQRUHG E\ WULDO MXGJHV 6HH :ULJKW *UDKDP DW m,W LV OHIW WR WKH SDUWLHV LQ WKH ILUVW LQVWDQFH WR GHFLGH ZKHWKHU RU QRW WKH UXOHV DUH WR EH $WWULDOWKHSHWLWLRQHUKDGQHZFRXQVHO$OWKRXJKWKHVWDWH HQIRUFHG,WLVRQO\LQUDUHFDVHVWKDWWKHWULDOMXGJH GLG QRW VHFXUH WKH ZLWQHVVHVj SUHVHQFH IRU WKH WULDO WKH ZLOO H[FOXGH HYLGHQFH WKH\ DUH FRQWHQW WR VHH SHWLWLRQHUGLGQRWVSHFLILFDOO\REMHFWWRWKHVWDWHjVIDLOXUHWR DGPLWWHGl VHHDOVR8QLWHG6WDWHVY&RRQDQ )G GHPRQVWUDWH WKDW WKH ZLWQHVVHV ZHUH XQDYDLODEOH ,QVWHDG &$ FULPLQDOGHIHQGDQWQRWHQWLWOHG SHWLWLRQHUjVQHZFRXQVHOPDGHDPRWLRQDVNLQJWKHFRXUWWR mWRHYDGHWKHFRQVHTXHQFHVRIDQXQVXFFHVVIXOWDFWLFDO H[FOXGHWKHGHSRVLWLRQVDQGUHTXLUHWKHZLWQHVVHVWRDSSHDU GHFLVLRQl PDGH LQ ZHOFRPLQJ DGPLVVLRQ RI RWKHUZLVH EHFDXVH DOWKRXJK SULRU FRXQVHO SDUWLFLSDWHG LQ WKH LQDGPLVVLEOHHYLGHQFH GHSRVLWLRQVSUHVHQWFRXQVHOKDGQRWKDGWKHRSSRUWXQLW\WR FURVVH[DPLQHWKHZLWQHVVHV&RXQVHOVWDWHGWRWKHFRXUWm, 6XFK VWLSXODWLRQV VDYH WKH WD[SD\HUV D JUHDW GHDO RI XQGHUVWDQG WKH\ >WKH ZLWQHVVHV@ DUH XQDYDLODEOHl DQG mWKH H[SHQVH,IWKHUXOHDGYRFDWHGE\SHWLWLRQHUZHUHDGRSWHGQR LVVXHKHUHLVQRWZKHWKHURUQRWDV>VLF@WKHVWLSXODWLRQJRLQJ VXFKVWLSXODWLRQVZRXOGEHELQGLQJDQGWKHUHIRUHZRXOGQRW WR ZLWKKROG >VLF@ LV WKH GHFODUDQW XQDYDLODEOH WKH LVVXH LV EH PDGH WR WKH JUHDW GHWULPHQW RI VRXQG MXGLFLDO ZKDW KDSSHQV ZKHQ FRXQVHO QHZ FRXQVHO LV SURYLGHG WR D DGPLQLVWUDWLRQ GHIHQGDQWWKHVWDWXVRIWKRVHGHSRVLWLRQVl s$SS +H IXUWKHU VWDWHG mWKH LVVXH , EHOLHYH KHUH LV ZKDW 7KHUHIRUHZHFRQFOXGHWKDWWKHGHFLVLRQRIWKH2KLRFRXUWV KDSSHQV ZKHQ D FDVH LV SDVVHG GRZQ IURP RQH FRXQVHO WR ZDVQHLWKHUFRQWUDU\WRQRUDQXQUHDVRQDEOHDSSOLFDWLRQRIWKH DQRWKHU,DPQRWDWWDFNLQJWKHVWLSXODWLRQV,ZDVQRWSUHVHQW UXOHRI2KLRY5REHUWVVXSUDRURIDQ\RWKHU6XSUHPH&RXUW :KHQWKHVHGHSRVLWLRQVZHUHWDNHQ,ZDVQRWSUHVHQWZKHQ WKHGHFLVLRQZDVPDGHWRWDNHWKHVHGHSRVLWLRQVWRPDNHWKH REMHFWLRQVRUDQ\SDUWRIWKDWDWDOOl s$SS 8QLWHG 6WDWHV Y 0H]]DQDWWR 86 6 &W %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
7KH FRXUW RYHUUXOHG SHWLWLRQHUj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jVFRQYLFWLRQV s$S 2Q2FWREHU 7KH 2KLR 6XSUHPH &RXUW GLVPLVVHG %DLOH\jV DSSHDO 3HWLWLRQHU DJUHHV WKDW WKH &RQIURQWDWLRQ &ODXVH PD\ EH IURPWKH&RXUWRI$SSHDOVjGHFLVLRQ s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s$SS FRQYLQFLQJHYLGHQFH ',6&866,21 3HWLWLRQHUKDVDUJXHGWKDWEHFDXVHKHKDGQHZFRXQVHODW WULDOZKRKDGQRWSDUWLFLSDWHGLQWKHDJUHHPHQWWRWDNHWKH 6WDQGDUGRI5HYLHZ GHSRVLWLRQV WKH SURVHFXWLRQ ZDV UHTXLUHG WR VKRZ WKH ZLWQHVVHVZHUHXQDYDLODEOHLQRUGHUWRKDYHWKHGHSRVLWLRQV 7KHVWDQGDUGRIUHYLHZLVGHQRYRH[FHSWDVKHUHLQDIWHU DGPLWWHGLQWRHYLGHQFH2KLRY5REHUWVWKHYHU\FDVHUHOLHG LQGLFDWHG'RDQY%ULJDQR)G WK&LU ,Q RQE\SHWLWLRQHUVSHFLILFDOO\UHMHFWVWKHSURSRVLWLRQWKDWQHZ DSSO\LQJWKLVVWDQGDUGLWPXVWEHERUQHLQPLQGWKDWWKHQDWXUH FRXQVHOPDNHVDQ\GLIIHUHQFHLQWKLVVLWXDWLRQ RI WKH UHYLHZ KDV EHHQ GUDVWLFDOO\ FKDQJHG E\ WKH $QWL 7HUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW RI :HQRWHWKDWFULPLQDOODZUHFRJQL]HVWKDWDGHIHQGDQWPD\ 86& G HG6XSS $('3$ DQGWKH PDNHLQIRUPHGVWLSXODWLRQVWKDWDUHELQGLQJRQFHPDGH,WLV FRPPRQ IRU H[DPSOH IRU D GHIHQGDQW WR VWLSXODWH WKDW D ODERUDWRU\ WHFKQLFLDQ ZRXOG WHVWLI\ WKDW D VXEVWDQFH ZDV D FRQWUROOHGVXEVWDQFHRUZKDWWKHWHVWLPRQ\RIDKDQGZULWLQJ 86& UHDGV LQ SDUW m G $Q DSSOLFDWLRQ IRU D ZULW RI KDEHDV FRUSXV RQ EHKDOI RI D SHUVRQ LQ FXVWRG\ SXUVXDQW WR WKH MXGJPHQW RI D 6WDWH FRXUW VKDOO QRW EH JUDQWHG ZLWK UHVSHFW WR DQ\ FODLP WKDW ZDV DGMXGLFDWHG RQ WKH PHULWV LQ 6WDWH FRXUW SURFHHGLQJV XQOHVV WKH DGMXGLFDWLRQ RI REVHUYH WKH GHPHDQRU DQG DSSHDUDQFH RI WKH ZLWQHVVHV LQ DGGLWLRQ WR WKH FODLP KHDULQJ WKHLU WHVWLPRQ\l s$ S 3HWLWLRQHU PDNHV QR DUJXPHQW UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU LQYROYHG WKDW mLQGLFLD RI UHOLDELOLW\l ZHUH ODFNLQJ DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH 8QLWHG 6HH 6WDQGDUG RI 5HYLHZ ( VXSUD 6WDWHV RU UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH HYLGHQFH SUHVHQWHG 5REHUWV 86 DW %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
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m>DSSOLHV@ D UXOH WKDW FRQWUDGLFWV WKH 7KHZLWQHVVjZKHUHDERXWVZHUHXQNQRZQHYHQWRKHUIDPLO\ JRYHUQLQJODZVHWIRUWKLQ>6XSUHPH&RXUWRIWKH DQGWKH&RXUWKHOGWKDWWKHSURVHFXWRUKDGPDGHUHDVRQDEOH 8QLWHG6WDWHV@FDVHVlRU HIIRUWV WR ORFDWH DQG VXESRHQD KHU ,Q WKH SRUWLRQ RI LWV RSLQLRQ DSSOLFDEOH KHUH WKH &RXUW KHOG WKDW mWKH WKH VWDWHFRXUW GHFLVLRQ mFRQIURQWV D VHW RI &RQIURQWDWLRQ&ODXVHQRUPDOO\UHTXLUHVDVKRZLQJWKDW>DQ IDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOHIURPD DEVHQWZLWQHVV@LVXQDYDLODEOHGHVSLWHDJRRGIDLWKHIIRUWE\ GHFLVLRQRI>WKH6XSUHPH&RXUW@DQGQHYHUWKHOHVV WKHSURVHFXWLRQWRREWDLQKLVRUKHUDWWHQGDQFHDWWULDO 86DW
:H DJUHH ZLWK WKH GLVWULFW FRXUW WKDW WKH FODLP PDGH E\ SHWLWLRQHU LQ WKH 6WDWH FRXUW SURFHHGLQJl ZDV QRW SURFHGXUDOO\ GHIDXOWHG EHFDXVH WKH VWDWH FRXUWV GLG QRW EDVH WKHLU GHFLVLRQV RQ DQ LQGHSHQGHQW VWDWH JURXQG 6HH 2SLQ RI WKH 'LVWULFW FRXUW 7 :LOOLDPV Y 7D\ORU 86 6 &W s$ S :H QRWH WKDW WKH GLVWULFW FRXUW GLG QRW KDYH WKH EHQHILW RI WKH WZR :LOOLDPV GHFLVLRQV GLVFXVVHG KHUHLQ 'RDQ Y %ULJDQR )G WK &LU
7 :LOOLDPV 6 &W DW +DUULV Y 6WRYDOO )G 7KH RSLQLRQ DOVR KHOG WKDW WKH &RQIURQWDWLRQ &ODXVH UHTXLUHG WKDW WK &LU FHUW GHQLHG BB 86 BB 6 &W WKHUH EH mLQGLFLD RI UHOLDELOLW\l VXSSRUWLQJ WKH RXWRIFRXUW WHVWLPRQ\ VXFK DV FURVVH[DPLQDWLRQ E\ GHIHQGDQWjV FRXQVHO ,G DW $V WKH 2KLR &RXUW RI $SSHDOV QRWHG LQ WKLV FDVH m)XUWKHUPRUH WKH SXUSRVH RI 7 :LOOLDPV 6 &W DW 'RDQ )G DW +DUULV WKH &RQIURQWDWLRQ &ODXVH WR VHFXUH $SSHOODQWjV ULJKW WR FURVVH[DPLQH WKH )G DW 7KH 6XSUHPH &RXUW SUHFHGHQW PXVW H[LVW DW WKH WLPH RI ZLWQHVVHV DJDLQVW KLP ZDV XSKHOG GXULQJ WKH GHSRVLWLRQV :H DOVR QRWH SHWLWLRQHUjV GLUHFW DSSHDO 6FKDII Y 6Q\GHU )G WK &LU WKDW WKH GHSRVLWLRQV ZHUH RQ YLGHRWDSH WKXV DOORZLQJ WKH MXU\ WR %DLOH\Y0LWFKHOO 1R 1R %DLOH\Y0LWFKHOO
DUULYHVDWDUHVXOWGLIIHUHQWIURP>6XSUHPH&RXUW@ HVWDEOLVKHG IHGHUDO ODZ HUURQHRXVO\ RU LQFRUUHFWO\l SUHFHGHQW lRU m>$@QXQUHDVRQDEOHDSSOLFDWLRQRIIHGHUDOODZLVGLIIHUHQW IURP DQ LQFRUUHFW RU HUURQHRXV DSSOLFDWLRQ RI IHGHUDO mWKHVWDWHFRXUWLGHQWLILHVWKHFRUUHFWJRYHUQLQJ ODZl OHJDOUXOHIURP>WKH6XSUHPH@&RXUWjVFDVHVEXW XQUHDVRQDEO\ DSSOLHV LW WR WKH IDFWV RI WKH ( )LQGLQJVRIIDFWRIWKHVWDWHFRXUWVDUHSUHVXPHGWR SDUWLFXODUVWDWHSULVRQHUjVFDVH lRU EH FRUUHFW m7KH DSSOLFDQW VKDOO KDYH WKH EXUGHQ RI UHEXWWLQJ WKH SUHVXPSWLRQ RI FRUUHFWQHVV E\ FOHDU DQG WKHVWDWHFRXUWmHLWKHUXQUHDVRQDEO\H[WHQGVD FRQYLQFLQJHYLGHQFHl OHJDOSULQFLSOHIURP>D6XSUHPH&RXUW@SUHFHGHQW WR D QHZ FRQWH[W ZKHUH LW VKRXOG QRW DSSO\ RU $VSDUWRIWKH$('3$&RQJUHVVDOVRLQFOXGHG86& XQUHDVRQDEO\UHIXVHVWRH[WHQGWKDWSULQFLSOHWRD H UHODWLQJ WR JUDQWLQJ HYLGHQWLDU\ KHDULQJV LQ WKH QHZFRQWH[WZKHUHLWVKRXOGDSSO\l IHGHUDOKDEHDVFRXUW6LQFHSHWLWLRQHUKDVPDGHQRFODLPIRU DQHYLGHQWLDU\KHDULQJKLVFODLPKDYLQJEHHQIXOO\GHYHORSHG ' 7KURXJKRXWWKLVDQDO\VLVWKHIHGHUDOFRXUWPD\QRW LQ VWDWH FRXUW WKH LQWHUSUHWDWLRQ RI WKHVH SURYLVLRQV LV QRW PHUHO\DSSO\LWVRZQYLHZVRIZKDWWKHODZVKRXOGEH EHIRUHXVDWWKLVWLPH 5DWKHUWREHRYHUWXUQHGDVWDWHFRXUWjVDSSOLFDWLRQRI 6XSUHPH&RXUWRIWKH8QLWHG6WDWHVSUHFHGHQWPXVWDOVR EH REMHFWLYHO\ XQUHDVRQDEOH 7KDW LV WR VD\ WKDW mD IHGHUDO KDEHDV FRXUW PD\ QRW LVVXH WKH ZULW VLPSO\ EHFDXVHWKDWFRXUWFRQFOXGHVLQLWVLQGHSHQGHQWMXGJPHQW WKDW WKH UHOHYDQW VWDWHFRXUW GHFLVLRQ DSSOLHG FOHDUO\
7 :LOOLDPV 6 &W DW 'RDQ )G DW 0F0HDQV Y %ULJDQR )G WK &LU FHUW GHQLHG BB 86 BB 6 &W 7 :LOOLDPV 6 &W DW 6H\PRXU Y :DONHU )G WK &LU FHUW GHQLHG BB 86 BB 6 &W 6DQGHUV Y )UHHPDQ )G WK &LU FHUW GHQLHG BB 86 7 :LOOLDPV 6 &W DW &RQH Y 6WHJDOO :/ BB 6 &W WK &LU XQSXEOLVKHG 6WULFNODQG FRUUHFWO\ DSSOLHG WR IDFWV RI FDVH 7 :LOOLDPV 6 &W DW 0DFKDFHN Y +RIEDXHU )G WK &LU FHUW GHQLHG BB 86 BB 6 &W 7 :LOOLDPV 6 &W DW +DUULQJWRQ Y sDFNVRQ )G :/ WK &LU FHUW GHQLHG BB 86 BB 6 &W XQSXEOLVKHG VWDWH FRXUW GLG QRW XQUHDVRQDEO\ IDLO WR H[WHQG 86& H HG 6XSS 6H\PRXU )G ULJKWV XQGHU &RQIURQWDWLRQ &ODXVH DW 6DQGHUV )G DW
6 &W DW 0F4XLUWHU Y %XUNH )G 7 :LOOLDPV 6HFWLRQ H ZDV LQWHUSUHWHG E\ WKH 6XSUHPH &RXUW RI WKH :/ DW WK &LU FHUW GHQLHG BB 86 BB 6 8QLWHG 6WDWHV LQ 0 :LOOLDPV Y 7D\ORU 86 6 &W &W XQSXEOLVKHG 0F0HDQV )G DW