Common use of Non-Principal Protected Investments Clause in Contracts

Non-Principal Protected Investments. (a) You acknowledge that under such an Investment, you establish an Investment and sell to or purchase from the Bank a put or call option, as the case maybe, on the Underlying Asset subject to terms quoted by the Bank and agreed to by you as reflected in the Term Sheet such as tenor of the Investment, Maturity Date, the applicable rate of returns, the Strike Rate/Price (i.e. the purchase price of the Underlying Asset upon exercise of the option), the reference price of the Underlying Asset, and the terms for the exercise of the option by you or the Bank. (b) You further acknowledge that in the case where you sold an option to the Bank, the Bank has the absolute right to deliver to you on the Maturity Date of the Investment, the Underlying Asset instead of paying you the principal and Returns of the Investment and that although the value of the Underlying Asset to be delivered on Maturity Date has been predetermined based on the terms in the Term Sheet, you are subject to the risk of fluctuation in the Underlying Asset. (c) If the Bank does not exercise the option, then on Maturity Date of the Investment, the Bank will pay you the Principal and Returns (if any) based on the Formula.

Non-Principal Protected Investments. (a) You acknowledge that under such an Investment, you establish an Investment and sell sells to or purchase purchases from the Bank a put or call option, as the case maybe, on the Underlying Asset subject to terms quoted by the Bank and agreed to by you as reflected in the Term Sheet such as tenor of the Investment, Maturity Date, the applicable rate of returns, the Strike Rate/Price (i.e. the purchase price of the Underlying Asset upon exercise of the option), the reference price of the Underlying Asset, and the terms for the exercise of the option by you or the BankBank . (b) You further acknowledge that in the case where you it sold an option to the Bank, the Bank has the absolute right to deliver to you on the Maturity Date of the Investment, the Underlying Asset instead of paying you the principal and Returns of the Investment and that although the value of the Underlying Asset to be delivered on Maturity Date has been predetermined based on the terms in the Term Sheet, you are subject to the risk of fluctuation in the Underlying Asset. (c) If the Bank does not exercise the option, then on Maturity Date of the Investment, the Bank will pay you the Principal and Returns (if any) based on the Formula.