Contract
This Note is a Global Security within
the meaning of the Indenture hereinafter referred to and is registered in the
name of the Depository named below or a nominee of the
Depository. This Note is not exchangeable for Notes registered in the
name of a Person other than the Depository or its nominee except in the limited
circumstances described herein and in the Indenture, and no transfer of this
Note (other than a transfer of this Note as a whole by the Depository to a
nominee of the Depository or by a nominee of the Depository to the Depository or
another nominee of the Depository) may be registered except in the limited
circumstances described herein.
Unless this certificate is presented
by an authorized representative of The Depository Trust Company, a New York
corporation (the “Depository”), to the Company or its agent for registration of
transfer, exchange, or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized
representative of the Depository (and any payment is made to Cede & Co. or
to such other entity as is requested by an authorized representative of the
Depository), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.
8.125%
Notes due July 15, 2039
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REGISTERED
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REGISTERED
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CUSIP:
000000XX0
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ISIN:
US172967EW71
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Common
Code: 044212617
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No.
R-_____
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$_______________
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CITIGROUP INC., a Delaware
corporation (the “Company”, which term includes any successor Person under the
Indenture), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of $__________ on July 15, 2039 and to pay
interest thereon from and including July 23, 2009 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually, on January 15 and July 15 of each year, commencing January 15,
2010 at the rate of 8.125% per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Note is registered at the
close of business on the Record Date for such interest, which shall be the
January 1 and July 1 (whether or not a Business Day) immediately preceding such
Interest Payment Date.
Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the holder on
such Record Date and may either be paid to the Person in whose name this Note is
registered at the close of business on a subsequent Record Date, such subsequent
Record Date to be not less than five days prior to the date of payment of such
defaulted interest, notice whereof shall be given to holders of Notes of this
series not less than 15 days prior to such subsequent Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in the Indenture.
Interest
hereon will be calculated on the basis of a 360-day year comprised of twelve
30-day months.
If either
an Interest Payment Date or the Maturity of the Notes falls on a day that is not
a Business Day, such Interest Payment Date or Maturity will be the next
succeeding Business Day. If a date for payment of interest or
principal on the Notes falls on a day that is not a business day in the place of
payment, such payment will be made on the next succeeding business day in such
place of payment as if made on the date the payment was due. No
interest will accrue on any amounts payable for the period from and after the
due date for payment of such principal or interest.
For these purposes, “Business Day”
means any day which is a day on which commercial banks settle payments and are
open for general business in The City of New York.
Payment of the principal of and
interest on this Note will be made at the office or agency of the Trustee
maintained for that purpose in The City of New York.
Reference is hereby made to the
further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this
place.
Unless the certificate of
authentication hereon has been executed by the Trustee or by an authenticating
agent on behalf of the Trustee by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.
2
IN WITNESS WHEREOF, the Company has
caused this instrument to be duly executed under its corporate
seal.
Dated: July
23, 2009
By:_________________________________
Title: Treasurer
ATTEST:
By:___________________________
Title: Assistant
Secretary
3
This is one of the Notes of the
series issued under the within-mentioned Indenture.
Dated: July
23, 2009
THE BANK OF NEW YORK
MELLON,
as Trustee
By:_________________________________
Name:
Title:
-or-
CITIBANK, N.A.,
as Authenticating Agent
By:_________________________________
Name:
Title:
4
This Note
is one of a duly authorized issue of Securities of the Company (the “Notes”),
issued and to be issued in one or more series under the Indenture, dated as of
March 15, 1987 (as amended and supplemented to date, the “Indenture”), between
the Company and The Bank of New York Mellon, formerly known as The Bank
of New York, as Trustee (the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the holders of the Notes and of the terms upon which the Notes are,
and are to be, authenticated and delivered. This Note is one of the
series designated on the face hereof, initially limited in aggregate principal
to $2,500,000,000.
If an event of default (as defined in
the Indenture) with respect to Notes of this series shall occur and be
continuing, the principal of the Notes of this series may be declared due and
payable in the manner and with the effect provided in the
Indenture.
The Indenture contains provisions for
defeasance at any time of the entire indebtedness of this Note upon compliance
by the Company with certain conditions set forth in Sections 11.03 and 11.04
thereof, which provisions apply to this Note.
The Indenture contains provisions
permitting the Company and the Trustee, without the consent of the holders of
the Securities, to establish, among other things, the form and terms of any
series of Securities issuable thereunder by one or more supplemental indentures,
and, with the consent of the holders of not less than 66 2/3% in aggregate
principal amount of Securities at the time outstanding which are affected
thereby, to modify the Indenture or any supplemental indenture or the rights of
the holders of Securities of such series to be affected, provided that no such
modification will (i) extend the fixed maturity of any Securities, reduce the
rate or extend the time of payment of interest thereon, reduce the principal
amount thereof or the premium, if any, thereon, reduce the amount of the
principal of Original Issue Discount Securities payable on any date, change the
currency in which Securities are payable, or impair the right to institute suit
for the enforcement of any such payment on or after the maturity thereof,
without the consent of the holder of each Security so affected, or (ii) reduce
the aforesaid percentage of Securities of any series the consent of the holders
of which is required for any such modification without the consent of the
holders of all Securities of such series then outstanding, or (iii) modify,
without the written consent of the Trustee, the rights, duties or immunities of
the Trustee.
No reference herein to the Indenture
and no provision of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.
This Note is a Global Security
registered in the name of a nominee of the Depository. This Note is
exchangeable for Notes registered in the name of a person other than the
Depository or its nominee only in the limited circumstances hereinafter
described. Unless and until it is exchanged in whole or in part for
definitive Notes in certificated form, this Note may not be transferred except
as a whole by the Depository to a nominee of the Depository or by a nominee of
the Depository to the Depository or another nominee of the
Depository.
R-1
The Notes represented by this Global
Security are exchangeable for definitive Notes in certificated form of like
tenor as such Notes in denominations of $1,000 and whole multiples of $1,000 in
excess thereof only if (i) the Depository notifies the Company that it is
unwilling or unable to continue as Depository for the Notes or (ii) the
Depository ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion
decides to allow the Notes to be exchanged for definitive Notes in registered
form. Any Notes that are exchangeable pursuant to the preceding
sentence are exchangeable for certificated Notes issuable in authorized
denominations and registered in such names as the Depository shall
direct. As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of definitive Notes in certificated
form is registrable in the register maintained by the Company in The City of New
York for such purpose, upon surrender of the definitive Note for registration of
transfer at the office or agency of the registrar, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the registrar duly executed by, the holder thereof or his attorney
duly authorized in writing, and thereupon one or more new Notes of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or
transferees. Subject to the foregoing, this Note is not exchangeable,
except for a Global Security or Global Securities of this issue of the same
principal amount to be registered in the name of the Depository or its
nominee.
No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.
Prior to due presentment of this Note
for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Company will pay additional amounts
(“Additional Amounts”) to the beneficial owner of any Note that is a non-United
States person in order to ensure that every net payment on such Note will not be
less, due to payment of U.S. withholding tax, than the amount then due and
payable. For this purpose, a “net payment” on a Note means a payment
by the Company or a paying agent, including payment of principal and interest,
after deduction for any present or future tax, assessment or other governmental
charge of the United States. These Additional Amounts will constitute additional
interest on the Note.
The Company will not be required to pay
Additional Amounts, however, in any of the circumstances described in items (1)
through (13) below.
R-2
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(1)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld solely by reason of the beneficial
owner:
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(a)
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having
a relationship with the United States as a citizen, resident or
otherwise;
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(b)
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having
had such a relationship in the past
or
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(c)
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being
considered as having had such a
relationship.
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(2)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld solely by reason of the beneficial
owner:
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(a)
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being
treated as present in or engaged in a trade or business in the United
States;
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(b)
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being
treated as having been present in or engaged in a trade or business in the
United States in the past or
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(c)
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having
or having had a permanent establishment in the United
States.
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(3)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld in whole or in part by reason of the beneficial owner being or
having been any of the following (as such terms are defined in the
Internal Revenue Code of 1986, as
amended):
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(a)
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personal
holding company;
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(b)
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foreign
personal holding company;
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(c)
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foreign
private foundation or other foreign tax-exempt
organization;
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(d)
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passive
foreign investment company;
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(e)
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controlled
foreign corporation or
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(f)
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corporation
which has accumulated earnings to avoid United States federal income
tax.
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(4)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld solely by reason of the beneficial owner owning or having owned,
actually or constructively, 10 percent or more of the total combined
voting power of all classes of stock of the Company entitled to vote or by
reason of the beneficial owner being a bank that has invested in a Note as
an extension of credit in the ordinary course of its trade or
business.
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For
purposes of items (1) through (4) above, “beneficial owner” means a fiduciary,
settlor, beneficiary, member or shareholder of the holder if the holder is an
estate, trust, partnership, limited liability company, corporation or other
entity, or a person holding a power over an estate or trust administered by a
fiduciary holder.
R-3
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(5)
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Additional
Amounts will not be payable to any beneficial owner of a Note that is
a:
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(a)
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fiduciary;
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(b)
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partnership;
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(c)
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limited
liability company or
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(d)
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other
fiscally transparent entity
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or
that is not the sole beneficial owner of the Note, or any portion of the
Note. However, this exception to the obligation to pay Additional Amounts
will only apply to the extent that a beneficiary or settlor in relation to
the fiduciary, or a beneficial owner or member of the partnership, limited
liability company or other fiscally transparent entity, would not have
been entitled to the payment of an Additional Amount had the beneficiary,
settlor, beneficial owner or member received directly its beneficial or
distributive share of the payment.
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(6)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld solely by reason of the failure of the beneficial owner or any
other person to comply with applicable certification, identification,
documentation or other information reporting requirements. This exception
to the obligation to pay Additional Amounts will only apply if compliance
with such reporting requirements is required by statute or regulation of
the United States or by an applicable income tax treaty to which the
United States is a party as a precondition to exemption from such tax,
assessment or other governmental
charge.
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(7)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is collected or
imposed by any method other than by withholding from a payment on a Note
by the Company or a paying
agent.
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(8)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld by reason of a change in law, regulation, or administrative or
judicial interpretation that becomes effective more than 15 days after the
payment becomes due or is duly provided for, whichever occurs
later.
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(9)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is imposed or
withheld by reason of the presentation by the beneficial owner of a Note
for payment more than 30 days after the date on which such payment becomes
due or is duly provided for, whichever occurs
later.
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(10)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any:
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R-4
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(a)
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estate
tax;
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(b)
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inheritance
tax;
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(c)
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gift
tax;
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(d)
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sales
tax;
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(e)
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excise
tax;
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(f)
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transfer
tax;
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(g)
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wealth
tax;
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(h)
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personal
property tax or
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(i)
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any
similar tax, assessment, withholding, deduction or other governmental
charge.
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(11)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment, or other governmental charge required to be
withheld by any paying agent from a payment of principal or interest on a
Note if such payment can be made without such withholding by any other
paying agent.
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(12)
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Additional
amounts will not be payable if a payment on a Note is reduced as a result
of any tax, assessment or other governmental charge that is required to be
made pursuant to any European Union directive on the taxation of savings
income or any law implementing or complying with, or introduced to conform
to, any such directive.
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(13)
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Additional
Amounts will not be payable if a payment on a Note is reduced as a result
of any combination of items (1) through (12)
above.
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Except as specifically provided herein,
the Company will not be required to make any payment of any tax, assessment or
other governmental charge imposed by any government or a political subdivision
or taxing authority of such government.
As used in this Note, “United States
person” means:
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(a)
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any
individual who is a citizen or resident of the United
States;
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(b)
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any
corporation, partnership or other entity created or organized in or under
the laws of the United States;
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(c)
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any
estate if the income of such estate falls within the federal income tax
jurisdiction of the United States regardless of the source of such income
and
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(d)
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any
trust if a United States court is able to exercise primary supervision
over its administration and one or more United States persons have the
authority to control all of the substantial decisions of the
trust.
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Additionally, “non-United States
person” means a person who is not a United States person, and “United States”
means the states of the United States of America and the District of Columbia,
but excluding its territories and its possessions.
R-5
Except as provided below, the Notes may
not be redeemed prior to maturity.
(1) The
Company may, at its option, redeem the Notes if:
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(a)
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the
Company becomes or will become obligated to pay Additional Amounts as
described above;
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(b)
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the
obligation to pay Additional Amounts arises as a result of any change in
the laws, regulations or rulings of the United States, or an official
position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on
or after July 20, 2009 and
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(c)
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the
Company determines, in its business judgment, that the obligation to pay
such Additional Amounts cannot be avoided by the use of reasonable
measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the
Company.
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(2)
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The
Company may also redeem the Notes, at its option,
if:
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(a)
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any
act is taken by a taxing authority of the United States on or after July
20, 2009, whether or not such act is taken in relation to the Company or
any affiliate, that results in a substantial probability that the Company
will or may be required to pay Additional Amounts as described
above;
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(b)
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the
Company determines, in its business judgment, that the obligation to pay
such Additional Amounts cannot be avoided by the use of reasonable
measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the
Company and
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(c)
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the
Company receives an opinion of independent counsel to the effect that an
act taken by a taxing authority of the United States results in a
substantial probability that the Company will or may be required to pay
the Additional Amounts described under above, and delivers to the Trustee
a certificate, signed by a duly authorized officer, stating that based on
such opinion the Company is entitled to redeem the Notes pursuant to their
terms.
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Any
redemption of the Notes as set forth in clauses (1) or (2) above shall be in
whole, and not in part, and will be made at a redemption price equal to 100% of
the principal amount of the Notes Outstanding plus accrued interest thereon to
the date of redemption. Holders shall be given not less than 30 days
nor more than 60 days prior notice by the Trustee of the date fixed for such
redemption.
All terms used in this Note which are
defined in the Indenture shall have the meanings assigned to them in the
Indenture. The Notes are governed by the laws of the State of New
York.
R-6
