Examples of Tier 1 Notes in a sentence
In terms of Regulation 38(11)(b) of the Regulations Relating to Banks, the Issuer must at all times have full discretion regarding any payment of interest on the Additional Tier 1 Notes.
A cancellation of interest pursuant to Condition 8.1 (Non- payment of interest) does not constitute an Event of Default under the Additional Tier 1 Notes for any purpose.Any actual or anticipated cancellation of interest on the Additional Tier 1 Notes will likely have an adverse effect on the market price of the Additional Tier 1 Notes.
The rights and claims of Noteholders in respect of, or arising under, the Additional Tier 1 Notes are subordinated in the manner described in Condition 3.3(b).
The Additional Tier 1 Notes are neither secured nor covered by a guarantee of the Issuer nor related entity or other arrangement that legally or economically enhances the seniority of the claim vis-à-vis bank creditors.
The Additional Tier 1 Notes will not contribute to liabilities exceeding assets if such a balance sheet test forms part of a requirement to prove insolvency under any law or otherwise.
The Additional Tier 1 Notes are direct and unsecured obligations of the Issuer and rank pari passu without preference among themselves.
Accordingly, a payment in respect of the Additional Tier 1 Notes will not be due and payable to the extent that the Issuer is not solvent (as determined pursuant to Indian law) at the time of such payment or would not be solvent (as determined pursuant to Indian law) immediately after such payment.
The Additional Tier 1 Notes are not deposits of the Issuer and are not guaranteed or insured by the Issuer or any party related to the Issuer and they may not be used as collateral for any loan made by the Issuer or any of its subsidiaries or affiliates.
In addition, as a result of the interest cancellation provisions of the Additional Tier 1 Notes, the market price of the Additional Tier 1 Notes may be more volatile than the market prices of other debt securities on which interestaccrues that are not subject to such cancellation and may be more sensitive generally to adverse changes in the Issuer’s financial condition.
In accordance with the Decree on Prudential Rules Wft to which the Issuer is subject, the Subordinated Notes may qualify as tier 1 capital, i.e. Tier 1 Notes, tier 2 capital, i.e. Tier 2 Notes, or tier 3 capital, i.e. Tier 3 Notes, as specified in the applicable Final Terms and in accordance with such other terms and conditions specified therein replacing or modifying these Terms and Conditions for the purpose of such Series of Notes.