REDUCTION OF SUBORDINATED LOAN. In connection with the CBC issuing the Guarantee, the Subordinated Loan Provider, the Issuer and the CBC agree that each time when the CBC has paid any Guaranteed Amount under the Guarantee, the Subordinated Loan may be reduced by the CBC with notice to the Issuer and to the Subordinated Loan Provider with an amount equal to the Guaranteed Amounts so paid by the CBC to the Covered Bondholders and the Couponholders. The Subordinated Loan will after such notice be reduced automatically with an amount equal to the amount paid by the CBC under the Guarantee.
