Basic Premium Investment
If the Alternate Currency appreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will pay the Principal Amount and Return Amount in the Base Currency on Maturity Date. If the Alternate Currency depreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will almost certainly pay the Principal Amount and Return Amount in the Alternate Currency on Maturity Date. The result is that the Customer will have the weaker Alternate Currency and the currency depreciation relative to the Base Currency, will and could substantially (depending on the extent of the Alternate Currency decline) reduce the Principal Amount if converted back to the Base Currency. In the worst-case scenario, a substantial decline in the Alternate Currency relative to the Base Currency could result in a total loss of the Principal Amount and Return Amount.
Knock Out Premium Investment
If a Knock-Out Event occurs during the Monitoring Period, the Bank will pay the Principal Amount and Return Amount in the Base Currency on Maturity Date. If the Knock-Out Event never occurs during the Monitoring Period and the Alternate Currency appreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will pay the Principal Amount and Return Amount in the Base Currency on Maturity Date. If the Alternate Currency depreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will almost certainly pay the Principal Amount and Return Amount in the Alternate Currency on Maturity Date. The result is that the Customer will have the weaker Alternate Currency and the currency depreciation relative to the Base Currency, will and could substantially (depending on the extent of the Alternate Currency decline) reduce the Principal Amount if converted back to the Base Currency. In the worst-case scenario, a substantial decline in the Alternate Currency relative to the Base Currency could result in a total loss of the Principal Amount and Return Amount.
Knock In Premium Investment
If the Knock In Event never occurs during the Monitoring Period, the Bank will pay the Principal Amount and Return Amount in the Base Currency on Maturity Date. If the Knock In Event occurs during the Monitoring Period and the Alternate Currency appreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will pay the Principal Amount and Return Amount in the Base Currency on Maturity Date. If the Alternate Currency depreciates against the Base Currency compared to the Pre-Agreed Exchange Rate on Fixing Date, the Bank will almost certainly pay the Principal Amount and Return Amount in the Alternate Currency on Maturity Date. The result is that the Customer will have the weaker Alternate Currency and the currency depreciation relative to the Base Currency will and could substantially (depending on the extent of the Alternate Currency decline) reduce the Principal Amount if converted back to the Base Currency. In the worst-case scenario, a substantial decline in the Alternate Currency relative to the Base Currency could result in a total loss of the Principal Amount and Return Amount.
