7DQN,QVSHFWLRQ5HSDLU$OWHUDWLRQ
DQG5HFRQVWUXFWLRQ
$3,67$1'$5'
),)7+(',7,21129(0%(5
$''(1'80$35,/
$''(1'800$<
6SHFLDO1RWHV
$3,SXEOLFDWLRQVQHFHVVDULO\DGGUHVVSUREOHPVRIDJHQHUDOQDWXUH:LWKUHVSHFWWRSDUWLFXODUFLUFXPVWDQFHVORFDO
VWDWHDQGIHGHUDOODZVDQGUHJXODWLRQVVKRXOGEHUHYLHZHG
1HLWKHU$3, QRU DQ\ RI$3, V HPSOR\HHV VXEFRQWUDFWRUV FRQVXOWDQWV FRPPLWWHHV RU RWKHU DVVLJQHHV PDNH DQ\
ZDUUDQW\RUUHSUHVHQWDWLRQHLWKHUH[SUHVVRULPSOLHGZLWKUHVSHFWWRWKHDFFXUDF\FRPSOHWHQHVVRUXVHIXOQHVVRIWKH
LQIRUPDWLRQFRQWDLQHGKHUHLQRUDVVXPHDQ\OLDELOLW\RUUHVSRQVLELOLW\IRUDQ\XVHRUWKHUHVXOWVRIVXFKXVHRIDQ\
LQIRUPDWLRQ RU SURFHVV GLVFORVHG LQ WKLV SXEOLFDWLRQ 1HLWKHU $3, QRU DQ\ RI $3, V HPSOR\HHV VXEFRQWUDFWRUV
FRQVXOWDQWVRURWKHUDVVLJQHHVUHSUHVHQWWKDWXVHRIWKLVSXEOLFDWLRQZRXOGQRWLQIULQJHXSRQSULYDWHO\RZQHGULJKWV
$3,SXEOLFDWLRQVPD\EHXVHGE\DQ\RQHGHVLULQJWRGRVR(YHU\HIIRUWKDVEHHQPDGHE\WKH,QVWLWXWHWRDVVXUHWKH
DFFXUDF\DQGUHOLDELOLW\RIWKHGDWDFRQWDLQHGLQWKHPKRZHYHUWKH,QVWLWXWHPDNHVQRUHSUHVHQWDWLRQZDUUDQW\RU
JXDUDQWHHLQFRQQHFWLRQZLWKWKLVSXEOLFDWLRQDQGKHUHE\H[SUHVVO\GLVFODLPVDQ\OLDELOLW\RUUHVSRQVLELOLW\IRUORVVRU
GDPDJHUHVXOWLQJIURPLWVXVHRUIRUWKHYLRODWLRQRIDQ\DXWKRULWLHVKDYLQJMXULVGLFWLRQZLWKZKLFKWKLVSXEOLFDWLRQPD\
FRQIOLFW
$3, SXEOLFDWLRQV DUH SXEOLVKHG WR IDFLOLWDWH WKH EURDG DYDLODELOLW\ RI SURYHQ VRXQG HQJLQHHULQJ DQG RSHUDWLQJ
SUDFWLFHV 7KHVH SXEOLFDWLRQV DUH QRW LQWHQGHG WR REYLDWH WKH QHHG IRU DSSO\LQJ VRXQG HQJLQHHULQJ MXGJPHQW
UHJDUGLQJZKHQDQGZKHUHWKHVHSXEOLFDWLRQVVKRXOGEHXWLOL]HG7KHIRUPXODWLRQDQGSXEOLFDWLRQRI$3,SXEOLFDWLRQV
LVQRWLQWHQGHGLQDQ\ZD\WRLQKLELWDQ\RQHIURPXVLQJDQ\RWKHUSUDFWLFHV
$Q\PDQXIDFWXUHUPDUNLQJHTXLSPHQWRUPDWHULDOVLQFRQIRUPDQFHZLWKWKHPDUNLQJUHTXLUHPHQWVRIDQ$3,VWDQGDUG
LV VROHO\ UHVSRQVLEOH IRU FRPSO\LQJ ZLWK DOO WKH DSSOLFDEOH UHTXLUHPHQWV RI WKDW VWDQGDUG$3, GRHV QRW UHSUHVHQW
ZDUUDQWRUJXDUDQWHHWKDWVXFKSURGXFWVGRLQIDFWFRQIRUPWRWKHDSSOLFDEOH$3,VWDQGDUG
&ODVVLILHGDUHDVPD\YDU\GHSHQGLQJRQWKHORFDWLRQFRQGLWLRQVHTXLSPHQWDQGVXEVWDQFHVLQYROYHGLQDQ\JLYHQ
VLWXDWLRQ8VHUVRIWKLVVWDQGDUGVKRXOGFRQVXOWZLWKWKHDSSURSULDWHDXWKRULWLHVKDYLQJMXULVGLFWLRQ
8VHUVRIWKLVVWDQGDUGVKRXOGQRWUHO\H[FOXVLYHO\RQWKHLQIRUPDWLRQFRQWDLQHGLQWKLVGRFXPHQW6RXQGEXVLQHVV
VFLHQWLILFHQJLQHHULQJDQGVDIHW\MXGJPHQWVKRXOGEHXVHGLQHPSOR\LQJWKHLQIRUPDWLRQFRQWDLQHGKHUHLQ
$OOULJKWVUHVHUYHG1RSDUWRIWKLVZRUNPD\EHUHSURGXFHGWUDQVODWHGVWRUHGLQDUHWULHYDOV\VWHPRUWUDQVPLWWHGE\DQ\PHDQV
HOHFWURQLFPHFKDQLFDOSKRWRFRS\LQJUHFRUGLQJRURWKHUZLVHZLWKRXWSULRUZULWWHQSHUPLVVLRQIURPWKHSXEOLVKHU&RQWDFWWKH
3XEOLVKHU$3,3XEOLVKLQJ6HUYLFHV0DVVDFKXVHWWV$YHQXH1:6XLWH:DVKLQJWRQ'&
Copyright © 2020 American Petroleum Institute
1RWLFH
,QVWUXFWLRQVIRU6XEPLWWLQJD3URSRVHG5HYLVLRQWRWKLV6WDQGDUG8QGHU&RQWLQXRXV
0DLQWHQDQFH
7KH $PHULFDQ 3HWUROHXP ,QVWLWXWH PDLQWDLQV WKLV VWDQGDUG XQGHU FRQWLQXRXV PDLQWHQDQFH SURFHGXUHV 7KHVH
SURFHGXUHV HVWDEOLVK D GRFXPHQWHG SURJUDP IRU UHJXODU SXEOLFDWLRQ RI DGGHQGD RU UHYLVLRQV LQFOXGLQJ WLPHO\ DQG
GRFXPHQWHG FRQVHQVXV DFWLRQ RQ UHTXHVWV IRU UHYLVLRQV WR DQ\ SDUW RI WKH VWDQGDUG 6HH$QQH[ , IRU DGGLWLRQDO
LQIRUPDWLRQ 3URSRVHG UHYLVLRQV VKDOO EH VXEPLWWHG WR WKH 'LUHFWRU 6WDQGDUGV 'HSDUWPHQW $PHULFDQ 3HWUROHXP
,QVWLWXWH0DVVDFKXVHWWV$YHQXH1:6XLWH:DVKLQJWRQ'&VWDQGDUGV#DSLRUJ
LL
)RUHZRUG
1RWKLQJFRQWDLQHGLQDQ\$3,SXEOLFDWLRQLVWREHFRQVWUXHGDVJUDQWLQJDQ\ULJKWE\LPSOLFDWLRQRURWKHUZLVHIRUWKH
PDQXIDFWXUHVDOHRUXVHRIDQ\PHWKRGDSSDUDWXVRUSURGXFWFRYHUHGE\OHWWHUVSDWHQW1HLWKHUVKRXOGDQ\WKLQJ
FRQWDLQHGLQWKHSXEOLFDWLRQEHFRQVWUXHGDVLQVXULQJDQ\RQHDJDLQVWOLDELOLW\IRULQIULQJHPHQWRIOHWWHUVSDWHQW
6KDOO$VXVHGLQDVWDQGDUG³VKDOO´GHQRWHVDPLQLPXPUHTXLUHPHQWLQRUGHUWRFRQIRUPWRWKHVSHFLILFDWLRQ
6KRXOG$VXVHGLQDVWDQGDUG³VKRXOG´GHQRWHVDUHFRPPHQGDWLRQRUWKDWZKLFKLVDGYLVHGEXWQRWUHTXLUHGLQRUGHU
WRFRQIRUPWRWKHVSHFLILFDWLRQ
0D\$VXVHGLQDVWDQGDUG³PD\´GHQRWHVDFRXUVHRIDFWLRQSHUPLVVLEOHZLWKLQWKHOLPLWVRIDVWDQGDUG
&DQ$VXVHGLQDVWDQGDUG³FDQ´GHQRWHVDVWDWHPHQWRISRVVLELOLW\RUFDSDELOLW\
3RUWLRQV RI WKLV SXEOLFDWLRQ KDYH EHHQ FKDQJHG IURP WKH SUHYLRXV HGLWLRQ 7KH ORFDWLRQV RI FKDQJHV KDYH EHHQ
PDUNHGZLWKDEDULQWKHPDUJLQDVVKRZQWRWKHOHIWRIWKLVSDUDJUDSK,QVRPHFDVHVWKHFKDQJHVDUHVLJQLILFDQW
ZKLOHLQRWKHUFDVHVWKHFKDQJHVUHIOHFWPLQRUHGLWRULDODGMXVWPHQWVVXFKDVUHQXPEHULQJRIDVHFWLRQVXEVHFWLRQRU
ILJXUHWDEOH WKHUHIHUHQFHVwithin the text WKDWKDYHEHHQVXEVHTXHQWO\XSGDWHGDUHQRWPDUNHG 7KHEDUQRWDWLRQVLQ
WKHPDUJLQVDUHSURYLGHGDVDQDLGWRXVHUVEXW$3,PDNHVQRZDUUDQW\DVWRWKHDFFXUDF\RIVXFKEDUQRWDWLRQV
7KLV GRFXPHQW ZDV SURGXFHG XQGHU $3, VWDQGDUGL]DWLRQ SURFHGXUHV WKDW HQVXUH DSSURSULDWH QRWLILFDWLRQ DQG
SDUWLFLSDWLRQ LQ WKH GHYHORSPHQWDO SURFHVV DQG LV GHVLJQDWHG DV DQ $3, VWDQGDUG 4XHVWLRQV FRQFHUQLQJ WKH
LQWHUSUHWDWLRQRIWKHFRQWHQWRIWKLVSXEOLFDWLRQRUFRPPHQWVDQGTXHVWLRQVFRQFHUQLQJWKHSURFHGXUHVXQGHUZKLFK
WKLV SXEOLFDWLRQ ZDV GHYHORSHG VKRXOG EH GLUHFWHG LQ ZULWLQJ WR WKH 'LUHFWRU RI 6WDQGDUGV $PHULFDQ 3HWUROHXP
,QVWLWXWH0DVVDFKXVHWWV$YH1:6XLWH:DVKLQJWRQ'&5HTXHVWVIRUSHUPLVVLRQWRUHSURGXFHRU
WUDQVODWHDOORUDQ\SDUWRIWKHPDWHULDOSXEOLVKHGKHUHLQVKRXOGDOVREHDGGUHVVHGWRWKHGLUHFWRU
7KH $PHULFDQ 3HWUROHXP ,QVWLWXWH PDLQWDLQV WKLV VWDQGDUG XQGHU FRQWLQXRXV PDLQWHQDQFH SURFHGXUHV 7KHVH
SURFHGXUHV HVWDEOLVK D GRFXPHQWHG SURJUDP IRU UHJXODU SXEOLFDWLRQ RI DGGHQGD RU UHYLVLRQV LQFOXGLQJ WLPHO\ DQG
GRFXPHQWHG FRQVHQVXV DFWLRQ RQ UHTXHVWV IRU UHYLVLRQV WR DQ\ SDUW RI WKH VWDQGDUG 6HH$QQH[ , IRU DGGLWLRQDO
LQIRUPDWLRQ 3URSRVHG UHYLVLRQV VKDOO EH VXEPLWWHG DW DQ\ WLPH WR WKH 'LUHFWRU 6WDQGDUGV $PHULFDQ 3HWUROHXP
,QVWLWXWH0DVVDFKXVHWWV$YH1:6XLWH:DVKLQJWRQ'&VWDQGDUGV#DSLRUJ
LLL
&RQWHQWV
3DJH
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
&RQWHQWV
3DJH
7DQN5HSDLUDQG$OWHUDWLRQ *HQHUDO 5HPRYDODQG5HSODFHPHQWRI6KHOO3ODWH0DWHULDO 6KHOO5HSDLUV8VLQJ/DSZHOGHG3DWFK3ODWHV 5HSDLUV8VLQJ1RQPHWDOOLF0DWHULDOV 5HSDLURI'HIHFWVLQ6KHOO3ODWH0DWHULDO $OWHUDWLRQRI7DQN6KHOOVWR&KDQJH6KHOO+HLJKW 5HSDLURI'HIHFWLYH:HOGV 5HSDLURI6KHOO3HQHWUDWLRQV $GGLWLRQRU5HSODFHPHQWRI6KHOO3HQHWUDWLRQV $OWHUDWLRQRI([LVWLQJ6KHOO3HQHWUDWLRQV
5HSDLURI7DQN%RWWRPV 5HSDLURI)L[HG5RRIV 5HSDLURI)ORDWLQJ5RRIV 5HSDLURU5HSODFHPHQWRI)ORDWLQJ5RRI3HULPHWHU6HDOV +RW7DSV 'LVPDQWOLQJDQG5HFRQVWUXFWLRQ *HQHUDO &OHDQLQJDQG*DV)UHHLQJ 'LVPDQWOLQJ0HWKRGV 5HFRQVWUXFWLRQ 'LPHQVLRQDO7ROHUDQFHV :HOGLQJ :HOGLQJ4XDOLILFDWLRQV
,GHQWLILFDWLRQDQG5HFRUGV 3UHKHDWRU&RQWUROOHG'HSRVLWLRQ:HOGLQJ0HWKRGVDV$OWHUQDWLYHVWR3RVWZHOG+HDW
7UHDWPHQW 3:+7 :HOGLQJ6DIHW\ ([DPLQDWLRQDQG7HVWLQJ 1'( 5DGLRJUDSKV +\GURVWDWLF7HVWLQJ /HDN7HVWV 6HWWOHPHQW6XUYH\'XULQJ+\GURVWDWLF7HVWLQJ 0DUNLQJDQG5HFRUGNHHSLQJ 1DPHSODWHV 5HFRUGNHHSLQJ &HUWLILFDWLRQ $QQH[$ LQIRUPDWLYH %DFNJURXQGRQ3DVW(GLWLRQVRI$3,:HOGHG6WRUDJH7DQN6WDQGDUGV $
$QQH[% QRUPDWLYH (YDOXDWLRQRI7DQN%RWWRP6HWWOHPHQW%
$QQH[& LQIRUPDWLYH &KHFNOLVWVIRU7DQN,QVSHFWLRQ &
YL
&RQWHQWV
3DJH
$QQH[' QRUPDWLYH $XWKRUL]HG,QVSHFWRU&HUWLILFDWLRQ '
$QQH[( ,QWHQWLRQDOO\/HIW%ODQN (
$QQH[) QRUPDWLYH 1'(5HTXLUHPHQWV6XPPDU\ )
$QQH[* LQIRUPDWLYH 4XDOLILFDWLRQRI7DQN%RWWRP([DPLQDWLRQ3URFHGXUHVDQG3HUVRQQHO *
$QQH[+ LQIRUPDWLYH 6LPLODU6HUYLFH$VVHVVPHQW +
$QQH[, LQIRUPDWLYH ,QTXLULHVDQG6XJJHVWLRQVIRU&KDQJH ,
$QQH[- QRUPDWLYHLIVSHFLILHGE\WKH3XUFKDVHU 6KHOO3ODWH5HSDLUV8VLQJ1RQPHWDOOLF0DWHULDOV -
$QQH[6 QRUPDWLYH $XVWHQLWLF6WDLQOHVV6WHHO6WRUDJH7DQNV 6
$QQH[6& QRUPDWLYH 6WDLQOHVVDQG&DUERQ6WHHO0L[HG0DWHULDOV6WRUDJH7DQNV 6&
$QQH[; QRUPDWLYH 'XSOH[6WDLQOHVV6WHHO6WRUDJH7DQNV ;
$QQH[< LQIRUPDWLYH %LEOLRJUDSK\ <
)LJXUHV
,QVSHFWLRQRI&RUURVLRQ$UHDV 3LW0HDVXUHPHQW %ULWWOH)UDFWXUH&RQVLGHUDWLRQV ([HPSWLRQ&XUYHIRU7DQNV&RQVWUXFWHGIURP&DUERQ6WHHORI8QNQRZQ0DWHULDO6SHFLILFDWLRQ $FFHSWDEOH'HWDLOVIRU5HSODFHPHQWRI6KHOO3ODWH0DWHULDO 'HWDLOVIRU'RRU6KHHWVLQ5LYHWHG6HDP7DQN 'HWDLOVIRU'RRU6KHHWVLQ/DSZHOGHG6HDP7DQN 'HWDLOVIRU'RRU6KHHWVLQ%XWWZHOGHG6KHOO6HDP7DQN²1R9HUWLFDO6HDP2IIVHW 'HWDLOVIRU'RRU6KHHWVLQ%XWWZHOGHG6KHOO6HDP7DQN²9HUWLFDO6HDP2IIVHW /DSSHG3DWFK5HSDLU3ODWHVDWWKH([WHUQDO6KHOOWRERWWRP-RLQW 7\SLFDO'HWDLOVIRU$GGLWLRQRI5HLQIRUFLQJ3ODWHWR([LVWLQJ6KHOO3HQHWUDWLRQ 7\SLFDO'HWDLOVIRU$GGLWLRQRI³7RPEVWRQH´6KDSH5HLQIRUFLQJ3ODWHWR([LVWLQJ6KHOO3HQHWUDWLRQ 0HWKRGIRU5DLVLQJ6KHOO1R]]OHV 'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH 'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH 'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH 7\SLFDO:HOGHGRQ3DWFK3ODWHVRQ7DQN%RWWRP3ODWHV +RW7DSIRU7DQNV 7DQN6KHOODQG%RWWRP&XW/RFDWLRQV 1DPHSODWH &HUWLILFDWLRQ)RUPV % 0HDVXUHPHQWVRI6KHOO6HWWOHPHQW ([WHUQDO %
% 0HDVXUHPHQWVRI%RWWRP6HWWOHPHQW ,QWHUQDO 7DQN2XWRIVHUYLFH%
% *UDSKLFDO5HSUHVHQWDWLRQRI7DQN6KHOO6HWWOHPHQWSHU% %
% *UDSKLFDO5HSUHVHQWDWLRQRI6KHOO6HWWOHPHQWSHU% %
% *UDSKLFDO5HSUHVHQWDWLRQRI6KHOO6HWWOHPHQWSHU% %
% (GJH6HWWOHPHQW %
YLL
&RQWHQWV
3DJH
%
%
%
%
%
%
%
+
+
+
&RUUHFWLRQIRU0HDVXUHG(GJH6HWWOHPHQW %
%RWWRP6HWWOHPHQW1HDU6KHOO%
/RFDOL]HG%RWWRP'HSUHVVLRQVRU%XOJHV5HPRWHIURP6KHOO %
/RFDOL]HG7DQN%RWWRP6HWWOHPHQW/LPLWVIRU6LQJOH3DVV:HOGV%
0D[LPXP$OORZDEOH(GJH6HWWOHPHQWIRU$UHDVZLWK%RWWRP/DS:HOGV
$SSUR[LPDWHO\3DUDOOHOWRWKH6KHOO %
0D[LPXP$OORZDEOH(GJH6HWWOHPHQWIRU$UHDVZLWK%RWWRP/DS:HOGV
$SSUR[LPDWHO\3HUSHQGLFXODUWRWKH6KHOO%
(GJH6HWWOHPHQWZLWKD/DS:HOGDWDQ$UELWUDU\$QJOHWRWKH6KHOO %
6WHSVLQ&RQGXFWLQJ6LPLODU6HUYLFH$VVHVVPHQW +
([DPSOH&RUURVLRQ5DWH&XUYHVIRU%RWWRPRI6WRUDJH7DQN +
([DPSOH&RUURVLRQ5DWH&XUYHVIRU7RS&RXUVHRI6WRUDJH7DQN +
6LPLODU6HUYLFH$VVHVVPHQW²'DWDVKHHW +
7DEOHV
0D[LPXP$OORZDEOH6KHOO6WUHVVHV -RLQW(IILFLHQFLHVIRU:HOGHG-RLQWV -RLQW(IILFLHQFLHVIRU5LYHWHG-RLQWV %RWWRP3ODWH0LQLPXP7KLFNQHVV $QQXODU%RWWRP3ODWH7KLFNQHVVHV LQ 7DQN6DIHJXDUG +RW7DS&RQQHFWLRQ6L]HVDQG6KHOO3ODWH7KLFNQHVVHV 0D[LPXP7KLFNQHVVHVRQ1HZ:HOGV 5DGLL7ROHUDQFHV :HOGLQJ0HWKRGVDV$OWHUQDWLYHVWR3RVWZHOG+HDW7UHDWPHQW 3:+7 4XDOLILFDWLRQ7KLFNQHVVHV
IRU7HVW3ODWHVDQG5HSDLU*URRYHV $ (GLWLRQVRI$3,6WDQGDUGDQGLWV3UHFXUVRU$3,6WDQGDUG&$
& 7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &
& 7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW&
) 1'(5HTXLUHPHQWV6XPPDU\ )
* 6XJJHVWHG(VVHQWLDO9DULDEOHVIRU4XDOLILFDWLRQ7HVWV *
+ 6LPLODU6HUYLFH3URGXFW&ODVVLILFDWLRQ +
- $3,5HTXLUHPHQWVLQ$GGLWLRQWR$60(3&& -
YLLL
7DQN,QVSHFWLRQ5HSDLU$OWHUDWLRQDQG5HFRQVWUXFWLRQ
6(&7,21²6&23(
6FRSH
,QWURGXFWLRQ
7KLVVWDQGDUGFRYHUVVWHHOVWRUDJHWDQNVEXLOWWR$3,DQGLWVSUHGHFHVVRU$3,&,WSURYLGHVPLQLPXP
UHTXLUHPHQWV IRU PDLQWDLQLQJ WKH LQWHJULW\ RI VXFK WDQNV DIWHU WKH\ KDYH EHHQ SODFHG LQ VHUYLFH DQG DGGUHVVHV
LQVSHFWLRQUHSDLUDOWHUDWLRQUHORFDWLRQDQGUHFRQVWUXFWLRQ
7KH VFRSH LV OLPLWHG WR WKH WDQN IRXQGDWLRQ ERWWRP VKHOO VWUXFWXUH URRI DWWDFKHG DSSXUWHQDQFHV DQG
QR]]OHVWRWKHIDFHRIWKHILUVWIODQJHILUVWWKUHDGHGMRLQWRUILUVWZHOGLQJHQGFRQQHFWLRQ0DQ\RIWKHGHVLJQZHOGLQJ
H[DPLQDWLRQDQGPDWHULDOUHTXLUHPHQWVRI$3,FDQEHDSSOLHGLQWKHPDLQWHQDQFHLQVSHFWLRQUDWLQJUHSDLUDQG
DOWHUDWLRQRILQVHUYLFHWDQNV,QWKHFDVHRIDSSDUHQWFRQIOLFWVEHWZHHQWKHUHTXLUHPHQWVRIWKLVVWDQGDUGDQG$3,
RULWVSUHGHFHVVRU$3,&WKLVVWDQGDUGVKDOOJRYHUQIRUWDQNVWKDWKDYHEHHQSODFHGLQVHUYLFH
7KLV VWDQGDUG HPSOR\V WKH SULQFLSOHV RI $3, KRZHYHU VWRUDJH WDQN RZQHURSHUDWRUV EDVHG RQ
FRQVLGHUDWLRQRIVSHFLILFFRQVWUXFWLRQDQGRSHUDWLQJGHWDLOVPD\DSSO\WKLVVWDQGDUGWRDQ\VWHHOWDQNFRQVWUXFWHGLQ
DFFRUGDQFHZLWKDWDQNVSHFLILFDWLRQ
7KLVVWDQGDUGLVLQWHQGHGIRUXVHE\RUJDQL]DWLRQVWKDWPDLQWDLQRUKDYHDFFHVVWRHQJLQHHULQJDQGLQVSHFWLRQ
SHUVRQQHOWHFKQLFDOO\WUDLQHGDQGH[SHULHQFHGLQWDQNGHVLJQIDEULFDWLRQUHSDLUFRQVWUXFWLRQDQGLQVSHFWLRQ
7KLVVWDQGDUGGRHVQRWFRQWDLQUXOHVRUJXLGHOLQHVWRFRYHUDOOWKHYDULHGFRQGLWLRQVZKLFKPD\RFFXULQDQ
H[LVWLQJ WDQN :KHQ GHVLJQ DQG FRQVWUXFWLRQ GHWDLOV DUH QRW JLYHQ DQG DUH QRW DYDLODEOH LQ WKH DVEXLOW VWDQGDUG
GHWDLOVWKDWZLOOSURYLGHDOHYHORILQWHJULW\HTXDOWRWKHOHYHOSURYLGHGE\WKHFXUUHQWHGLWLRQRI$3,PXVWEHXVHG
7KLV VWDQGDUG UHFRJQL]HV ILWQHVVIRUVHUYLFH DVVHVVPHQW FRQFHSWV IRU HYDOXDWLQJ LQVHUYLFH GHJUDGDWLRQ RI
SUHVVXUH FRQWDLQLQJ FRPSRQHQWV $3,$60())6Fitness-For-Service SURYLGHV GHWDLOHG DVVHVVPHQW
SURFHGXUHVRUDFFHSWDQFHFULWHULDIRUVSHFLILFW\SHVRIGHJUDGDWLRQUHIHUHQFHGLQWKLVVWDQGDUG:KHQWKLVVWDQGDUG
GRHVQRWSURYLGHVSHFLILFHYDOXDWLRQSURFHGXUHVRUDFFHSWDQFHFULWHULDIRUDVSHFLILFW\SHRIGHJUDGDWLRQRUZKHQWKLV
VWDQGDUGH[SOLFLWO\DOORZVWKHXVHRIILWQHVVIRUVHUYLFHFULWHULD$3,$60())6PD\EHXVHGWRHYDOXDWHWKH
YDULRXVW\SHVRIGHJUDGDWLRQRUWHVWUHTXLUHPHQWVDGGUHVVHGLQWKLVVWDQGDUG
&RPSOLDQFHZLWK7KLV6WDQGDUG
7KHRZQHURSHUDWRUKDVXOWLPDWHUHVSRQVLELOLW\IRUFRPSO\LQJZLWKWKHSURYLVLRQVRIWKLVVWDQGDUG7KHDSSOLFDWLRQ
RIWKLVVWDQGDUGLVUHVWULFWHGWRRUJDQL]DWLRQVWKDWHPSOR\RUKDYHDFFHVVWRDQDXWKRUL]HGLQVSHFWLRQDJHQF\DV
GHILQHGLQ6KRXOGDSDUW\RWKHUWKDQWKHRZQHURSHUDWRUEHDVVLJQHGFHUWDLQWDVNVVXFKDVUHORFDWLQJDQG
UHFRQVWUXFWLQJ D WDQN WKH OLPLWV RI UHVSRQVLELOLW\ IRU HDFK SDUW\ VKDOO EH GHILQHG E\ WKH RZQHURSHUDWRU SULRU WR
FRPPHQFLQJZRUN
-XULVGLFWLRQ
,IDQ\SURYLVLRQRIWKLVVWDQGDUGSUHVHQWVDGLUHFWRULPSOLHGFRQIOLFWZLWKDQ\VWDWXWRU\UHJXODWLRQWKHUHJXODWLRQVKDOO
JRYHUQ+RZHYHULIWKHUHTXLUHPHQWVRIWKLVVWDQGDUGDUHPRUHVWULQJHQWWKDQWKHUHTXLUHPHQWVRIWKHUHJXODWLRQWKHQ
WKHUHTXLUHPHQWVRIWKLVVWDQGDUGVKDOOJRYHUQ
$3,67$1'$5'
6DIH:RUNLQJ3UDFWLFHV
$Q DVVHVVPHQW VKDOO EH PDGH RI WKH SRWHQWLDO KD]DUGV WR ZKLFK SHUVRQQHO PD\ EH H[SRVHG ZKHQ FRQGXFWLQJ
LQWHUQDOWDQNLQVSHFWLRQVPDNLQJUHSDLUVRUGLVPDQWOLQJWDQNV3URFHGXUHVVKDOOEHGHYHORSHGDFFRUGLQJWRWKH
JXLGHOLQHVJLYHQLQ$3,6WDQGDUGDQG$3,$WKDWZLOOLQFOXGHVDIHJXDUGIRUSHUVRQQHOKHDOWKDQGVDIHW\
SUHYHQWLRQ RI DFFLGHQWDO ILUHV DQG H[SORVLRQV DQG WKH SUHYHQWLRQ RI SURSHUW\ GDPDJH &RQIRUPDQFH WR SHUPLW
SURFHGXUHVLVDQHVVHQWLDOVDIHZRUNSUDFWLFHIRUSURWHFWLRQRISHUVRQQHODQGSURSHUW\:KHUHZHOGLQJDQGKRW
ZRUN DUH LQYROYHG$3, VWDWHV ³([FHSW LQ DUHDV VSHFLILFDOO\ GHVLJQDWHG DV VDIH IRU KRW ZRUN D KRW ZRUN
SHUPLWVKDOOEHREWDLQHGEHIRUHVWDUWLQJDQ\ZRUNWKDWFDQLQYROYHDVRXUFHRILJQLWLRQ´6HHDOVR $3,6WDQGDUG
6SHFLDO SURFHGXUHV PD\ QHHG WR EH GHYHORSHG IRU FHUWDLQ DFWLYLWLHV GHVFULEHG LQ WKLV VWDQGDUG WKDW DUH QRW IXOO\
FRYHUHGE\WKHUHIHUHQFHG$3,SXEOLFDWLRQVHJVDIHW\SUHFDXWLRQVIRUSHUVRQQHODFFHVVLQJIORDWLQJURRIWDQNVWKDW
DUHLQVHUYLFHRUJDVIUHHLQJWKHERWWRPVLGHRIDWDQN$SSHQGL[%RI$3,SURYLGHVEULHILQIRUPDWLRQRQLQHUWLQJ
WDQNV8VHRILQHUWLQJDVDVDIHW\SUHFDXWLRQVKRXOGDGGUHVVSHUVRQQHOKD]DUGVLQWURGXFHGZKHQXVLQJLQHUWJDVLQ
WKH ZRUNSODFH DQG LPSOHPHQWDWLRQ VKRXOG EH GRQH LQ FRQVXOWDWLRQ ZLWK VSHFLDOLVWV WKDW DUH IDPLOLDU ZLWK VXFK
SURFHVVHV )LQDOO\ SURFHGXUHV PXVW FRPSO\ ZLWK DQ\ IHGHUDO RU VWDWH VDIHW\ UHJXODWLRQV SHUWDLQLQJ WR ³FRQILQHG
VSDFHV´RUDQ\RWKHUUHOHYDQWSURYLVLRQV
6HFWLRQ²1RUPDWLYH5HIHUHQFHV
7KHIROORZLQJUHIHUHQFHGGRFXPHQWVDUHLQGLVSHQVDEOHIRUWKHDSSOLFDWLRQRIWKLVGRFXPHQW)RUGDWHGUHIHUHQFHV
RQO\WKHHGLWLRQFLWHGDSSOLHV)RUXQGDWHGUHIHUHQFHVWKHODWHVWHGLWLRQRIWKHUHIHUHQFHGGRFXPHQW LQFOXGLQJDQ\
DPHQGPHQWV DSSOLHV
$3,5HFRPPHQGHG3UDFWLFH$60())6Fitness-For-Service
$3,5HFRPPHQGHG3UDFWLFHRisk Based Inspection
$3,6WDQGDUGDesign and Construction of Large, Welded, Low-pressure Storage Tanks
$3,6WDQGDUGWelded Tanks for Oil Storage
$3,5HFRPPHQGHG3UDFWLFHCathodic Protection of Aboveground Storage Tanks
$3,5HFRPPHQGHG3UDFWLFHLining of Aboveground Petroleum Storage Tank Bottoms
$3,6WDQGDUGVenting Atmospheric and Low-pressure Storage Tanks: Nonrefrigerated and Refrigerated
$3,5HFRPPHQGHG3UDFWLFHProtection Against Ignitions Arising Out of Static, Lightning, and Stray Currents
$3, 5HFRPPHQGHG 3UDFWLFH Safe Welding, Cutting, and Hot Work Practices in the Petroleum and
Petrochemical Industries
$3,6WDQGDUGRequirements for Safe Entry and Cleaning of Petroleum Storage Tanks
$3,5HFRPPHQGHG3UDFWLFHSafe Hot Tapping Practices in the Petroleum and Petrochemical Industries
$3,5HFRPPHQGHG3UDFWLFHPreparing Tank Bottoms for Hot Work
$3,6WDQGDUG$Guidelines for Safe Work in Inert Confined Spaces in the Petroleum and Petrochemical Industries
$60(Boiler and Pressure Vessel Code (BPVC) Section V: Nondestructive Examination
$60(BPVCSection VIII: Pressure Vessels; Division 2: Alternative Rules
$60(BPVCSection IX: Welding and Brazing Qualifications
$6176177&$Personnel Qualification and Certification in Nondestructive Testing
$670$ Standard Specification forGeneral Requirements for Rolled Structural Steel Bars, Plates, Shapes, and
Sheet Piling
$670$Standard Specification forGeneral Requirements for Steel Plates for Pressure Vessels
$670$ Standard Specification for Carbon Structural Steel
$60(,QWHUQDWLRQDO3DUN$YHQXH1HZ<RUN1HZ<RUNZZZDVPHRUJ
$PHULFDQ6RFLHW\IRU1RQGHVWUXFWLYH7HVWLQJ$UOLQJDWH/DQH&ROXPEXV2KLRZZZDVQWRUJ
$670,QWHUQDWLRQDO%DUU+DUERU'ULYH:HVW&RQVKRKRFNHQ3HQQV\OYDQLDZZZDVWPRUJ
$3,67$1'$5'
$670$Standard Test Methods and Definitions for Mechanical Testing of Steel Products
$670$Standard Specification for Structural Steel Shapes
$:6'Structural Welding Code—Steel
$:6'Structural Welding Code—Stainless Steel
1$&( 636* Design, Fabrication, and Inspection of Tanks for the Storage of Petroleum Refining
Alkylation Unit Spent Sulfuric Acid at Ambient Temperatures
$PHULFDQ:HOGLQJ6RFLHW\1:/H-HXQH5RDG0LDPL)ORULGDZZZDZVRUJ
1$&( ,QWHUQDWLRQDO IRUPHUO\ WKH 1DWLRQDO$VVRFLDWLRQ RI &RUURVLRQ (QJLQHHUV 6RXWK &UHHN 'ULYH +RXVWRQ 7H[DV
ZZZQDFHRUJ
6HFWLRQ²7HUPVDQG'HILQLWLRQV
)RUWKHSXUSRVHVRIWKLVVWDQGDUGWKHIROORZLQJGHILQLWLRQVDSSO\
DOWHUDWLRQ
$Q\ZRUNRQDWDQNWKDWFKDQJHVLWVSK\VLFDOGLPHQVLRQVRUFRQILJXUDWLRQ
DVEXLOWVWDQGDUG
7KHVWDQGDUG VXFKDV$3,VWDQGDUGRU8/VWDQGDUG XVHGIRUWKHFRQVWUXFWLRQRIWKHWDQNFRPSRQHQWLQTXHVWLRQ,I
WKLVVWDQGDUGLVQRWNQRZQWKHDVEXLOWVWDQGDUGLVWKHVWDQGDUGWKDWZDVLQHIIHFWDWWKHGDWHRIWKHLQVWDOODWLRQRIWKH
FRPSRQHQW,IWKHGDWHRIWKHLQVWDOODWLRQRIWKHFRPSRQHQWLVXQNQRZQWKHQWKHFXUUHQWDSSOLFDEOHVWDQGDUGVKDOOEH
FRQVLGHUHGWREHWKHDVEXLOWVWDQGDUG6HH$QQH[$IRUDOLVWRI$3,ZHOGHGVWRUDJHWDQNVWDQGDUGV7KHVWDQGDUG
XVHG IRU UHSDLUV RU DOWHUDWLRQV PDGH DIWHU RULJLQDO FRQVWUXFWLRQ LV WKH DVEXLOW VWDQGDUG RQO\ IRU WKRVH UHSDLUV RU
DOWHUDWLRQVVRWKHUHPD\EHPRUHWKDQRQHDVEXLOWVWDQGDUGIRUDWDQN
DXWKRUL]HGLQVSHFWLRQDJHQF\
2QHRIWKHIROORZLQJRUJDQL]DWLRQVWKDWHPSOR\DQDERYHJURXQGVWRUDJHWDQNLQVSHFWRUFHUWLILHGE\$3,
D 7KHLQVSHFWLRQRUJDQL]DWLRQRIWKHMXULVGLFWLRQLQZKLFKWKHDERYHJURXQGVWRUDJHWDQNLVRSHUDWHG
E 7KH LQVSHFWLRQ RUJDQL]DWLRQ RI DQ LQVXUDQFH FRPSDQ\ ZKLFK LV OLFHQVHG RU UHJLVWHUHG WR DQG GRHV ZULWH
DERYHJURXQGVWRUDJHWDQNLQVXUDQFH
F $Q RZQHURSHUDWRU RI RQH RU PRUH DERYHJURXQG VWRUDJH WDQN V ZKR PDLQWDLQV DQ LQVSHFWLRQ RUJDQL]DWLRQ IRU
DFWLYLWLHVUHODWLQJRQO\WRKLVKHUHTXLSPHQWDQGQRWIRUDERYHJURXQGVWRUDJHWDQNVLQWHQGHGIRUVDOHRUUHVDOH
G $Q LQGHSHQGHQW RUJDQL]DWLRQ RU LQGLYLGXDO XQGHU FRQWUDFW WR DQG XQGHU WKH GLUHFWLRQ RI DQ RZQHURSHUDWRU DQG
UHFRJQL]HGRURWKHUZLVHQRWSURKLELWHGE\WKHMXULVGLFWLRQLQZKLFKWKHDERYHJURXQGVWRUDJHWDQNLVRSHUDWHG7KH
RZQHURSHUDWRU¶V LQVSHFWLRQ SURJUDP VKDOO SURYLGH WKH FRQWUROV QHFHVVDU\ IRU XVH E\ DXWKRUL]HG LQVSHFWRUV
FRQWUDFWHGWRLQVSHFWDERYHJURXQGVWRUDJHWDQNV
DXWKRUL]HGLQVSHFWRU
$Q HPSOR\HH RI DQ DXWKRUL]HG LQVSHFWLRQ DJHQF\ ZKR LV TXDOLILHG DQG FHUWLILHG WR SHUIRUP LQVSHFWLRQV XQGHU WKLV
LQVSHFWLRQVWDQGDUG:KHQHYHUWKHWHUPLQVSHFWRULVXVHGLQ$3,LWUHIHUVWRDQDXWKRUL]HG$3,6WDQGDUG
LQVSHFWRU
EUHDNRYHUSRLQW
7KHDUHDRQDWDQNERWWRPZKHUHVHWWOHPHQWEHJLQV
FDQGLGDWHWDQN
7KHWDQN V IRUZKLFKFRUURVLRQUDWHVDUHQRWNQRZQ
FKDQJHLQVHUYLFH
$ FKDQJH IURP SUHYLRXV RSHUDWLQJ FRQGLWLRQV LQYROYLQJ GLIIHUHQW SURSHUWLHV RI WKH VWRUHG SURGXFW VXFK DV VSHFLILF
JUDYLW\RUFRUURVLYLW\DQGRUGLIIHUHQWVHUYLFHFRQGLWLRQVRIWHPSHUDWXUHDQGRUSUHVVXUH
8QGHUZULWHUV/DERUDWRULHV3ILQJVWHQ5RDG1RUWKEURRN,OOLQRLVZZZXOFRP
$3,67$1'$5'
FRQWUROWDQN
7KHWDQN V IRUZKLFKFRUURVLRQUDWHVDQGVHUYLFHKLVWRU\DUHNQRZQDQGGRFXPHQWHG
FRUURVLRQUDWH
7KHWRWDOPHWDOORVVGLYLGHGE\WKHSHULRGRIWLPHRYHUZKLFKWKHPHWDOORVVRFFXUUHG
FULWLFDO]RQH
7KHSRUWLRQRIWKHWDQNERWWRPRUDQQXODUSODWHZLWKLQLQRIWKHLQVLGHHGJHRIWKHVKHOOPHDVXUHGUDGLDOO\LQZDUG
FXUUHQWDSSOLFDEOHVWDQGDUG
7KHFXUUHQWHGLWLRQRIWKHVWDQGDUG VXFKDV$3,VWDQGDUGRU8/VWDQGDUG WKDWDSSOLHVLIWKHWDQNZHUHEXLOWWRGD\
GRRUVKHHW
$ SODWH RU SODWHV FXW IURP DQ H[LVWLQJ WDQN VKHOO WR FUHDWH D WHPSRUDU\ DFFHVV RSHQLQJ$IWHU SODQQHG ZRUN LV
FRPSOHWHGWKHGRRUVKHHW V VKDOOEHUHLQVWDOOHGRUUHSODFHG
H[DPLQHU
$ SHUVRQ ZKR DVVLVWV WKH LQVSHFWRU E\ SHUIRUPLQJ VSHFLILF QRQGHVWUXFWLYH H[DPLQDWLRQ 1'( RQ DERYHJURXQG
VWRUDJH WDQNV DQG HYDOXDWHV WR WKH DSSOLFDEOH DFFHSWDQFH FULWHULD EXW GRHV QRW LQWHUSUHW WKH UHVXOWV RI WKRVH
H[DPLQDWLRQVLQDFFRUGDQFHZLWK$3,XQOHVVVSHFLILFDOO\WUDLQHGDQGDXWKRUL]HGWRGRVRE\WKHRZQHURSHUDWRU
H[WHUQDOLQVSHFWLRQ
$IRUPDOYLVXDOLQVSHFWLRQFRQGXFWHGRUVXSHUYLVHGE\DQDXWKRUL]HGLQVSHFWRUWRDVVHVVDOODVSHFWVRIWKHWDQNDV
SRVVLEOHZLWKRXWVXVSHQGLQJRSHUDWLRQVRUUHTXLULQJWDQNVKXWGRZQ VHH ILWQHVVIRUVHUYLFHDVVHVVPHQW
$PHWKRGRORJ\ZKHUHE\IODZVFRQWDLQHGZLWKLQDVWUXFWXUHDUHDVVHVVHGLQRUGHUWRGHWHUPLQHWKHDGHTXDF\RIWKH
IODZHGVWUXFWXUHIRUFRQWLQXHGVHUYLFHZLWKRXWLPPLQHQWIDLOXUH
KRWWDS
,GHQWLILHVDSURFHGXUHIRULQVWDOOLQJDQR]]OHLQWKHVKHOORIDWDQNWKDWLVLQVHUYLFH
K\GURWHVW
$WHVWSHUIRUPHGZLWKZDWHULQZKLFKVWDWLFIOXLGKHDGLVXVHGWRSURGXFHWHVWORDGV
LQVHUWSODWH
$VWHHOSODWHWKDWUHSODFHVSDUWRIDVKHOOSODWHZLWKDQRPLQDOWKLFNQHVVWKDWLVHTXLYDOHQWWRRUQRPRUHWKDQLQ
JUHDWHUWKDQWKHQRPLQDOWKLFNQHVVRIWKHDGMRLQLQJPDWHULDO:KHQDQLQVHUWSODWHLVHTXDOWRWKHIXOOKHLJKWRIDVKHOO
ULQJLWLVFRQVLGHUHGWREHDVKHOOSODWH
LQVSHFWLRQDFWLYLWLHV
$Q\ DFWLYLW\ UHODWLQJ WR WKH SHUIRUPDQFH RI LQVSHFWLRQ RI DERYHJURXQG VWRUDJH WDQNV ZKLOH HPSOR\HG E\ RU XQGHU
FRQWUDFWZLWKDQDXWKRUL]HGLQVSHFWLRQDJHQF\
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
LQVSHFWRU
$VKRUWHQHGWLWOHIRUDQDXWKRUL]HGWDQNLQVSHFWRUTXDOLILHGDQGFHUWLILHGLQDFFRUGDQFHZLWKWKLVVWDQGDUG
LQWHUQDOLQVSHFWLRQ
$IRUPDOFRPSOHWHLQVSHFWLRQDVVXSHUYLVHGE\DQDXWKRUL]HGLQVSHFWRURIDOODFFHVVLEOHLQWHUQDOWDQNVXUIDFHV VHH
PDMRUDOWHUDWLRQRUPDMRUUHSDLU
$QDOWHUDWLRQRUUHSDLUWKDWLQFOXGHVDQ\RIWKHIROORZLQJ
D LQVWDOOLQJDVKHOOSHQHWUDWLRQODUJHUWKDQ136EHQHDWKWKHGHVLJQOLTXLGOHYHO
E LQVWDOOLQJDERWWRPSHQHWUDWLRQZLWKLQLQRIWKHVKHOO
F UHPRYLQJDQGUHSODFLQJRUDGGLQJDVKHOOSODWHEHQHDWKWKHGHVLJQOLTXLGOHYHOZKHUHWKHORQJHVWGLPHQVLRQRIWKH
UHSODFHPHQWSODWHH[FHHGVLQ
G UHPRYLQJRUUHSODFLQJDQQXODUSODWHULQJPDWHULDOZKHUHWKHORQJHVWGLPHQVLRQRIWKHUHSODFHPHQWSODWHH[FHHGV
LQ
H FRPSOHWH RU SDUWLDO PRUH WKDQ RQHKDOIRIWKHZHOGWKLFNQHVV UHPRYDO DQGUHSODFHPHQWRIPRUHWKDQLQ RI
YHUWLFDOZHOGMRLQLQJVKHOOSODWHVRUUDGLDOZHOGMRLQLQJWKHDQQXODUSODWHULQJ
I DQRQPHWDOOLFUHSDLUWKDWFRQWULEXWHVPRUHWKDQRQHKDOIWKHVWUHQJWKRIWKHVKHOOLQDQDUHDPRUHWKDQLQKLJK
J LQVWDOOLQJDQHZERWWRP
127( ,QVWDOODWLRQRIDSRUWLRQRIDQHZERWWRPDVGHVFULEHGLQLVQRWGHILQHGDVDPDMRUUHSDLU
K UHPRYLQJDQGUHSODFLQJSDUWRIWKHZHOGDWWDFKLQJWKHVKHOOWRWKHERWWRPRUWRWKHDQQXODUSODWHULQJLQH[FHVVRI
WKHDPRXQWVOLVWHGLQD L MDFNLQJDWDQNVKHOO
RZQHURSHUDWRU
7KHOHJDOHQWLW\KDYLQJFRQWURORIDQGRUUHVSRQVLELOLW\IRUWKHRSHUDWLRQDQGPDLQWHQDQFHRIDQH[LVWLQJVWRUDJHWDQN
SURGXFWVLGH
7KHVLGHRIWKHWDQNWKDWLVLQFRQWDFWZLWKWKHVWRUHGOLTXLGSURGXFW
UHFRJQL]HGWRXJKQHVV
$FRQGLWLRQWKDWH[LVWVZKHQWKHPDWHULDORIDFRPSRQHQWLVGHHPHGDFFHSWDEOHIRUXVHE\WKHSURYLVLRQVRIDQ\RIWKH
IROORZLQJVHFWLRQVRIWKLVVWDQGDUG
D 6HFWLRQ EDVHGRQHGLWLRQRIVWDQGDUGRIWDQN¶VRULJLQDOFRQVWUXFWLRQRUE\FRXSRQWHVWLQJ E 6HFWLRQ EDVHGRQWKLFNQHVV F 6HFWLRQ EDVHGRQORZHVWGHVLJQPHWDOWHPSHUDWXUH G 6HFWLRQ EDVHGRQH[HPSWLRQFXUYHV $3,67$1'$5'
UHFRQVWUXFWLRQ
$Q\ZRUNQHFHVVDU\WRUHDVVHPEOHDWDQNWKDWKDVEHHQGLVPDQWOHGDQGUHORFDWHGWRDQHZVLWH
UHFRQVWUXFWLRQRUJDQL]DWLRQ
7KHRUJDQL]DWLRQKDYLQJDVVLJQHGUHVSRQVLELOLW\E\WKHRZQHURSHUDWRUWRGHVLJQDQGRUUHFRQVWUXFWDWDQN
UHSDLU
:RUNQHFHVVDU\WRPDLQWDLQRUUHVWRUHDWDQNWRDFRQGLWLRQVXLWDEOHIRUVDIHRSHUDWLRQ5HSDLUVLQFOXGHERWKPDMRU
UHSDLUV VHH DQGUHSDLUVWKDWDUHQRWPDMRUUHSDLUV([DPSOHVRIUHSDLUVLQFOXGH
D UHPRYDODQGUHSODFHPHQWRIPDWHULDO VXFKDVURRIVKHOORUERWWRPPDWHULDOLQFOXGLQJZHOGPHWDO WRPDLQWDLQWDQN
LQWHJULW\
E UHOHYHOLQJDQGRUMDFNLQJRIDWDQNVKHOOERWWRPRUURRI
F DGGLQJRUUHSODFLQJUHLQIRUFLQJSODWHV RUSRUWLRQVWKHUHRI WRH[LVWLQJVKHOOSHQHWUDWLRQV
G UHSDLURIIODZVVXFKDVWHDUVRUJRXJHVE\JULQGLQJDQGRUJRXJLQJIROORZHGE\ZHOGLQJ
UHSDLURUJDQL]DWLRQ
$QRUJDQL]DWLRQWKDWPHHWVDQ\RIWKHIROORZLQJ
D DQRZQHURSHUDWRURIDERYHJURXQGVWRUDJHWDQNVZKRUHSDLUVRUDOWHUVKLVKHURZQHTXLSPHQWLQDFFRUGDQFHZLWK
WKLVVWDQGDUG
E D FRQWUDFWRU ZKRVH TXDOLILFDWLRQV DUH DFFHSWDEOH WR WKH RZQHURSHUDWRU RI DERYHJURXQG VWRUDJH WDQNV DQG ZKR
PDNHVUHSDLUVRUDOWHUDWLRQVLQDFFRUGDQFHZLWKWKLVVWDQGDUG
F RQHZKRLVDXWKRUL]HGE\DFFHSWDEOHWRRURWKHUZLVHQRWSURKLELWHGE\WKHMXULVGLFWLRQDQGZKRPDNHVUHSDLUVLQ
DFFRUGDQFHZLWKWKLVVWDQGDUG
VLPLODUVHUYLFHDVVHVVPHQW
7KHSURFHVVE\ZKLFKFRUURVLRQUDWHVDQGLQVSHFWLRQLQWHUYDOVDUHHVWDEOLVKHGIRUDFDQGLGDWHWDQNXVLQJFRUURVLRQ
UDWHVDQGVHUYLFHKLVWRU\IURPDFRQWUROWDQNIRUWKHSXUSRVHRIHVWDEOLVKLQJWKHQH[WLQVSHFWLRQGDWH
VRLOVLGH
7KHVLGHRIWKHWDQNERWWRPWKDWLVLQFRQWDFWZLWKWKHJURXQG
VWRUDJHWDQNHQJLQHHU
2QHRUPRUHSHUVRQVRURUJDQL]DWLRQVDFFHSWDEOHWRWKHRZQHURSHUDWRUZKRDUHNQRZOHGJHDEOHDQGH[SHULHQFHGLQ
WKHHQJLQHHULQJGLVFLSOLQHVDVVRFLDWHGZLWKHYDOXDWLQJPHFKDQLFDODQGPDWHULDOFKDUDFWHULVWLFVWKDWDIIHFWWKHLQWHJULW\
DQGUHOLDELOLW\RIDERYHJURXQGVWRUDJHWDQNV7KHVWRUDJHWDQNHQJLQHHUE\FRQVXOWLQJZLWKDSSURSULDWHVSHFLDOLVWV
VKRXOGEHUHJDUGHGDVDFRPSRVLWHRIDOOHQWLWLHVQHHGHGWRSURSHUO\DVVHVVWKHWHFKQLFDOUHTXLUHPHQWV
VWUXFWXUDOGLVFRQWLQXLW\
$QDEUXSWFKDQJHLQVKDSHRUFURVVVHFWLRQWKDWDIIHFWVVWUHVVRUVWUDLQGLVWULEXWLRQWKURXJKWKHHQWLUHZDOOWKLFNQHVV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
WKLFNHQHGLQVHUWSODWH
$VWHHOSODWHWKDWUHSODFHVSDUWRIDVKHOOSODWHZLWKDQRPLQDOWKLFNQHVVWKDWLVJUHDWHUWKDQWKHQRPLQDOWKLFNQHVVRI
WKHDGMRLQLQJPDWHULDOE\PRUHWKDQLQ
XQNQRZQWRXJKQHVV
$FRQGLWLRQWKDWH[LVWVZKHQLWFDQQRWEHGHPRQVWUDWHGWKDWWKHPDWHULDORIDFRPSRQHQWVDWLVILHVWKHGHILQLWLRQRI
UHFRJQL]HGWRXJKQHVV
6HFWLRQ²6XLWDELOLW\IRU6HUYLFH
*HQHUDO
:KHQWKHUHVXOWVRIDWDQNLQVSHFWLRQVKRZWKDWDFKDQJHKDVRFFXUUHGIURPWKHRULJLQDOSK\VLFDOFRQGLWLRQRI
WKDWWDQNDQHYDOXDWLRQVKDOOEHPDGHWRGHWHUPLQHLWVVXLWDELOLW\IRUFRQWLQXHGXVH
7KLVVHFWLRQSURYLGHVDQHYDOXDWLRQRIWKHVXLWDELOLW\RIDQH[LVWLQJWDQNIRUFRQWLQXHGVHUYLFHRUIRUDFKDQJH
RI VHUYLFH RU ZKHQ PDNLQJ GHFLVLRQV LQYROYLQJ UHSDLUV DOWHUDWLRQV GLVPDQWOLQJ UHORFDWLQJ RU UHFRQVWUXFWLQJ DQ
H[LVWLQJWDQN
7KH IROORZLQJ OLVW RI IDFWRUV IRU FRQVLGHUDWLRQ LV QRW DOOLQFOXVLYH IRU DOO VLWXDWLRQV QRU LV LW LQWHQGHG WR EH D
VXEVWLWXWHIRUWKHHQJLQHHULQJDQDO\VLVDQGMXGJPHQWUHTXLUHGIRUHDFKVLWXDWLRQ
D LQWHUQDOFRUURVLRQGXHWRWKHSURGXFWVWRUHGRUZDWHUERWWRPV
E H[WHUQDOFRUURVLRQGXHWRHQYLURQPHQWDOH[SRVXUH
F VWUHVVOHYHOVDQGDOORZDEOHVWUHVVOHYHOV
G SURSHUWLHVRIWKHVWRUHGSURGXFWVXFKDVVSHFLILFJUDYLW\WHPSHUDWXUHDQGFRUURVLYLW\
H PHWDOGHVLJQWHPSHUDWXUHVDWWKHVHUYLFHORFDWLRQRIWKHWDQN
I H[WHUQDOURRIOLYHORDGZLQGDQGVHLVPLFORDGLQJV
J WDQNIRXQGDWLRQVRLODQGVHWWOHPHQWFRQGLWLRQV
K FKHPLFDODQDO\VLVDQGPHFKDQLFDOSURSHUWLHVRIWKHPDWHULDOVRIFRQVWUXFWLRQ
L GLVWRUWLRQVRIWKHH[LVWLQJWDQN
M RSHUDWLQJFRQGLWLRQVVXFKDVILOOLQJHPSW\LQJUDWHVDQGIUHTXHQF\
7DQN5RRI(YDOXDWLRQ
*HQHUDO
7KHVWUXFWXUDOLQWHJULW\RIWKHURRIDQGURRIVXSSRUWV\VWHPVKDOOEHYHULILHG
5RRISODWHVFRUURGHGWRDQDYHUDJHWKLFNQHVVRIOHVVWKDQLQLQDQ\LQDUHDRUURRISODWHVZLWKDQ\
KROHVWKURXJKWKHURRISODWHVKDOOEHUHSDLUHGRUUHSODFHG
)L[HG5RRIV
5RRIVXSSRUWPHPEHUV UDIWHUVJLUGHUVFROXPQVDQGEDVHV VKDOOEHLQVSHFWHGIRUVRXQGQHVVE\DPHWKRG
DFFHSWDEOHWRWKHUHVSRQVLEOHLQVSHFWRU'LVWRUWHG VXFKDVRXWRISOXPEFROXPQV FRUURGHGDQGGDPDJHGPHPEHUV
VKDOOEHHYDOXDWHGDQGUHSDLUHGRUUHSODFHGLIQHFHVVDU\3DUWLFXODUDWWHQWLRQPXVWEHJLYHQWRWKHSRVVLELOLW\RIVHYHUH
LQWHUQDOFRUURVLRQRISLSHFROXPQV FRUURVLRQPD\QRWEHHYLGHQFHGE\H[WHUQDOYLVXDOLQVSHFWLRQ :KHQDIUDQJLEOHURRIWRVKHOOMRLQWLVUHTXLUHGHYDOXDWHIRULWHPVLPSDFWLQJFRPSOLDQFHZLWKUHTXLUHPHQWV
XQGHU$3,6HFWLRQ([DPSOHVRIVRPHLWHPVWRHYDOXDWHLQFOXGHWDQNERWWRPWRVKHOOMRLQWFRUURVLRQRU
$3,67$1'$5' WDQNURRIWRVKHOOMRLQWPRGLILFDWLRQ VXFKDVUHLQIRUFHPHQWRIWKHMRLQWDWWDFKPHQWRIKDQGUDLORURWKHUIUDQJLEOHMRLQW
DUHDFKDQJH )ORDWLQJ5RRIV
$UHDVRIURRISODWHVDQGSRQWRRQVH[KLELWLQJFUDFNVRUSXQFWXUHVVKDOOEHUHSDLUHGRUWKHDIIHFWHGVHFWLRQV
UHSODFHG+ROHVWKURXJKURRISODWHVVKDOOEHUHSDLUHGRUUHSODFHG
$UHDVWKDWDUHSLWWHGVKDOOEHHYDOXDWHGWRGHWHUPLQHWKHOLNHOLKRRGRIWKURXJKSLWWLQJRFFXUULQJSULRUWRWKH
QH[WVFKHGXOHGLQWHUQDOLQVSHFWLRQ,IVRWKHDIIHFWHGDUHDVVKDOOEHUHSDLUHGRUUHSODFHG
5RRI VXSSRUW V\VWHPV SHULPHWHU VHDO V\VWHPV DSSXUWHQDQFHV VXFK DV D URRI UROOLQJ ODGGHU DQWLURWDWLRQ
GHYLFHVZDWHUGUDLQV\VWHPVDQGYHQWLQJV\VWHPVVKDOOEHHYDOXDWHGIRUQHHGHGUHSDLUVRUUHSODFHPHQWV
*XLGDQFHIRUWKHHYDOXDWLRQRIH[LVWLQJIORDWLQJURRIVVKDOOEHEDVHGRQWKHFULWHULDRI$3,$QQH[&IRU
H[WHUQDO IORDWLQJ URRIV DQG$QQH[ + IRU LQWHUQDO IORDWLQJ URRIV +RZHYHU XSJUDGLQJ WR PHHW WKLV VWDQGDUG LV QRW
PDQGDWRU\
&KDQJHRI6HUYLFH
,QWHUQDO3UHVVXUH
$OOUHTXLUHPHQWVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUG HJ$3,$QQH[) VKDOOEHFRQVLGHUHGLQWKHHYDOXDWLRQDQG
VXEVHTXHQWDOWHUDWLRQVWRWKHWDQNURRIDQGURRIWRVKHOOMXQFWLRQ
([WHUQDO3UHVVXUH
$VDSSOLFDEOHWKHURRIVXSSRUWVWUXFWXUH LIDQ\ DQGWKHURRIWRVKHOOMXQFWLRQVKDOOEHHYDOXDWHGIRUWKHHIIHFWVRID
GHVLJQSDUWLDOYDFXXP7KHFULWHULDRXWOLQHGLQ$3,$QQH[9VKDOOEHXVHG
2SHUDWLRQDW(OHYDWHG7HPSHUDWXUH
$OO UHTXLUHPHQWV RI$3, $QQH[ 0 VKDOO EH FRQVLGHUHG EHIRUH FKDQJLQJ WKH VHUYLFH RI D WDQN WR RSHUDWLRQ DW
WHPSHUDWXUHVDERYHƒ)
2SHUDWLRQDW/RZHU7HPSHUDWXUH7KDQ2ULJLQDO'HVLJQ
,I WKH RSHUDWLQJ WHPSHUDWXUH LV FKDQJHG WR D ORZHU WHPSHUDWXUH WKDQ WKH RULJLQDO GHVLJQ WKH UHTXLUHPHQWV RI WKH
FXUUHQWDSSOLFDEOHVWDQGDUGIRUWKHORZHUWHPSHUDWXUHVKDOOEHPHW
1RUPDODQG(PHUJHQF\9HQWLQJ
(IIHFWVRIFKDQJHLQRSHUDWLQJFRQGLWLRQV LQFOXGLQJSURGXFWVHUYLFHDQGSXPSLQJUDWHV RQQRUPDODQG
HPHUJHQF\YHQWLQJVKDOOEHFRQVLGHUHG
9HQWVVKDOOEHLQVSHFWHGIRUSURSHURSHUDWLRQDQGVFUHHQVVKDOOEHYHULILHGWREHFOHDURIREVWUXFWLRQ
7DQN6KHOO(YDOXDWLRQ
*HQHUDO
)ODZV GHWHULRUDWLRQ RU RWKHU FRQGLWLRQV HJ FKDQJH RI VHUYLFH UHORFDWLRQ FRUURVLRQ JUHDWHU WKDQ WKH
RULJLQDO FRUURVLRQ DOORZDQFH WKDW PLJKW DGYHUVHO\ DIIHFW WKH SHUIRUPDQFH RU VWUXFWXUDO LQWHJULW\ RI WKH VKHOO RI DQ
H[LVWLQJWDQNPXVWEHHYDOXDWHGDQGDGHWHUPLQDWLRQPDGHUHJDUGLQJVXLWDELOLW\IRULQWHQGHGVHUYLFH
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7KHHYDOXDWLRQRIWKHH[LVWLQJWDQNVKHOOVKDOOEHFRQGXFWHGE\DVWRUDJHWDQNHQJLQHHUDQGVKDOOLQFOXGHDQ
DQDO\VLV RI WKH VKHOO IRU WKH LQWHQGHG GHVLJQ FRQGLWLRQV EDVHG RQ H[LVWLQJ VKHOO SODWH WKLFNQHVV DQG PDWHULDO7KH
DQDO\VLVVKDOOWDNHLQWRFRQVLGHUDWLRQDOODQWLFLSDWHGORDGLQJFRQGLWLRQVDQGFRPELQDWLRQVLQFOXGLQJSUHVVXUHGXHWR
IOXLGVWDWLFKHDGLQWHUQDODQGH[WHUQDOSUHVVXUHZLQGORDGVVHLVPLFORDGVURRIOLYHORDGVQR]]OHORDGVVHWWOHPHQW
DQGDWWDFKPHQWORDGV
6KHOOFRUURVLRQRFFXUVLQPDQ\IRUPVDQGYDU\LQJGHJUHHVRIVHYHULW\DQGPD\UHVXOWLQDJHQHUDOO\XQLIRUP
ORVVRIPHWDORYHUDODUJHVXUIDFHDUHDRULQORFDOL]HGDUHDV3LWWLQJPD\DOVRRFFXU(DFKFDVHPXVWEHWUHDWHGDVD
XQLTXH VLWXDWLRQ DQG D WKRURXJK LQVSHFWLRQ FRQGXFWHG WR GHWHUPLQH WKH QDWXUH DQG H[WHQW RI FRUURVLRQ SULRU WR
GHYHORSLQJDUHSDLUSURFHGXUH3LWWLQJGRHVQRWQRUPDOO\UHSUHVHQWDVLJQLILFDQWWKUHDWWRWKHRYHUDOOVWUXFWXUDOLQWHJULW\
RI D VKHOO XQOHVV SUHVHQW LQ D VHYHUH IRUP ZLWK SLWV LQ FORVH SUR[LPLW\ WR RQH DQRWKHU &ULWHULD IRU HYDOXDWLQJ ERWK
JHQHUDOFRUURVLRQDQGSLWWLQJDUHGHILQHGEHORZ
0HWKRGVIRUGHWHUPLQLQJWKHPLQLPXPVKHOOWKLFNQHVVVXLWDEOHIRUFRQWLQXHGRSHUDWLRQDUHJLYHQLQ
DQG VHH6HFWLRQIRUIUHTXHQF\RILQVSHFWLRQ ,IWKHUHTXLUHPHQWVRI ZHOGHG RU ULYHWHG FDQQRWEHVDWLVILHGWKHFRUURGHGRUGDPDJHGDUHDV
VKDOOEHUHSDLUHGRUWKHDOORZDEOHOLTXLGOHYHORIWKHWDQNUHGXFHGRUWKHWDQNUHWLUHG7KHDOORZDEOHOLTXLGOHYHOIRUWKH
FRQWLQXHGXVHRIDWDQNPD\EHHVWDEOLVKHGE\XVLQJWKHHTXDWLRQVIRUDPLQLPXPDFFHSWDEOHWKLFNQHVV VHH
DQG DQG VROYLQJ IRU KHLJKW H 7KH DFWXDO WKLFNQHVV DV GHWHUPLQHG E\ LQVSHFWLRQ PLQXV WKH FRUURVLRQ
DOORZDQFHVKDOOEHXVHGWRHVWDEOLVKWKHOLTXLGOHYHOOLPLW7KHPD[LPXPGHVLJQOLTXLGOHYHOVKDOOQRWEHH[FHHGHG
$FWXDO7KLFNQHVV'HWHUPLQDWLRQ
)RU GHWHUPLQLQJ WKH FRQWUROOLQJ WKLFNQHVVHV LQ HDFK VKHOO FRXUVH ZKHQ WKHUH DUH FRUURGHG DUHDV RI
FRQVLGHUDEOH VL]H PHDVXUHG WKLFNQHVVHV VKDOO EH DYHUDJHG LQ DFFRUGDQFH ZLWK WKH IROORZLQJ SURFHGXUH VHH
)LJXUH D )RUHDFKDUHDWKHDXWKRUL]HGLQVSHFWRUVKDOOGHWHUPLQHWKHPLQLPXPWKLFNQHVVtDWDQ\SRLQWLQWKHFRUURGHG
DUHDH[FOXGLQJZLGHO\VFDWWHUHGSLWV VHH E &DOFXODWHWKHFULWLFDOOHQJWKL
L
Dt EXWQRWPRUHWKDQLQ
ZKHUH
L
LVWKHPD[LPXPYHUWLFDOOHQJWKLQ
LQFKHVRYHUZKLFKKRRSVWUHVVHVDUHDVVXPHGWR³DYHUDJHRXW´DURXQG
ORFDOGLVFRQWLQXLWLHV
127(
7KHDFWXDOYHUWLFDOOHQJWKRIWKHFRUURGHGDUHDPD\H[FHHGL
D
LVWKHWDQNGLDPHWHULQIHHW
t LVWKHOHDVWWKLFNQHVVLQLQFKHVLQDQDUHDRIFRUURVLRQH[FOXVLYHRISLWV
F 7KHDXWKRUL]HGLQVSHFWRUVKDOOYLVXDOO\RURWKHUZLVHGHFLGHZKLFKYHUWLFDOSODQH V LQWKHDUHDLVOLNHO\WREHWKH
PRVWDIIHFWHGE\FRUURVLRQ3URILOHPHDVXUHPHQWVVKDOOEHWDNHQDORQJHDFKYHUWLFDOSODQHIRUDGLVWDQFHL,QWKH
SODQH V GHWHUPLQH WKH ORZHVW DYHUDJH WKLFNQHVV t DYHUDJHG RYHU D OHQJWK RI L XVLQJ DW OHDVW ILYH HTXDOO\
VSDFHGPHDVXUHPHQWVRYHUOHQJWKL
G 6HHIRUPLQLPXPSHUPLWWHGYDOXHVIRUtDQGt7KHDGGLWLRQDOORDGVLQVKDOODOVREHFRQVLGHUHG
$3,67$1'$5' tank diameter D
A
t nom
t avg
t2
L
An area of
corrosion
a
b
c
d
e
A
Key
a – e are inspection planes
selected by inspector.
t 2 is the least min. thickness
in entire area, exclusive
of pits.
SECTION A-A
Profile along Plane c , the
plane having the lowest
average thickness, t 1.
Procedure
1) Determine t 2.
2) Calculate L = 3.7
Dt 2, but not more than 40 in.
3) Locate L to get minimum t avg, which is t 1.
)LJXUH
²,QVSHFWLRQRI&RUURVLRQ$UHDV
H 7KHFULWHULDIRUFRQWLQXHGRSHUDWLRQLVDVIROORZV
L
WKHYDOXHtVKDOOEHJUHDWHUWKDQRUHTXDOWRtPLQ VHHRU VXEMHFWWRYHULILFDWLRQRIDOORWKHUORDGLQJV
OLVWHGLQ
LL
WKHYDOXHtVKDOOEHJUHDWHUWKDQRUHTXDOWR
RItPLQDQG
LLL
DQ\FRUURVLRQDOORZDQFHUHTXLUHGIRUVHUYLFHXQWLOWKHWLPHRIWKHQH[WLQVSHFWLRQVKDOOEHDGGHGWR tPLQDQG
RItPLQ.
:LGHO\VFDWWHUHGSLWVPD\EHLJQRUHGSURYLGHGWKDW
D QRSLWGHSWKUHVXOWVLQWKHUHPDLQLQJVKHOOWKLFNQHVVEHLQJOHVVWKDQRQHKDOIWKHPLQLPXPDFFHSWDEOHWDQNVKHOO
WKLFNQHVVH[FOXVLYHRIWKHFRUURVLRQDOORZDQFHDQG
E WKHVXPRIWKHLUGLPHQVLRQVDORQJDQ\YHUWLFDOOLQHGRHVQRWH[FHHGLQLQDQLQOHQJWK VHH)LJXUH 0LQLPXP7KLFNQHVV&DOFXODWLRQIRU:HOGHG7DQN6KHOO
127( ,Q JHQHUDO WKH PLQLPXP DFFHSWDEOH WKLFNQHVV tPLQ IRU DQ HQWLUH VKHOO FRXUVH LV GHWHUPLQHG XVLQJ D ZLWK H
GHWHUPLQHGWRWKHERWWRPRIHDFKVKHOOFRXUVHDQGWKHUHVXOWVXVHGDVDEDVLVIRUMXGJLQJWKHVXLWDELOLW\IRUFRQWLQXHGVHUYLFHIRUWKH
WDQN,IORFDOO\WKLQQHGDUHDVDUHLGHQWLILHGRULIVSHFLILFDUHDVDUHLQYHVWLJDWHG VXFKDVIRUDVKHOOQR]]OHLQVWDOODWLRQ WKHPHWKRGRI
E PD\EHXVHGWRFRPSOHWHWKHHYDOXDWLRQZLWKHGHWHUPLQHGIRUWKDWSDUWLFXODUORFDWLRQ
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
d1
8 in.
d2
d3
d1 + d2 + d3”LQ
)LJXUH
²3LW0HDVXUHPHQW
7KHPLQLPXPDFFHSWDEOHVKHOOSODWHWKLFNQHVVIRUFRQWLQXHGVHUYLFHVKDOOEHGHWHUPLQHGE\RQHRUPRUHRI
WKHPHWKRGVQRWHGKHUHLQ7KHVHPHWKRGVDUHOLPLWHGWRWDQNVZLWKGLDPHWHUVHTXDOWRIWRUOHVV
D :KHQGHWHUPLQLQJWKHPLQLPXPDFFHSWDEOHWKLFNQHVVIRUDQHQWLUHVKHOOFRXUVHtPLQLVFDOFXODWHGDVIROORZV
t PLQ
H ± DG
SE
E :KHQGHWHUPLQLQJWKHPLQLPXPDFFHSWDEOHWKLFNQHVVIRUDQ\RWKHUSRUWLRQVRIDVKHOOFRXUVH VXFKDVDORFDOO\
WKLQQHGDUHDRUDQ\RWKHUORFDWLRQRILQWHUHVW tPLQLVFDOFXODWHGDVIROORZV
t PLQ
HDG
SE
ZKHUH
tPLQLV WKH PLQLPXP DFFHSWDEOH WKLFNQHVV LQ
LQFKHV IRU HDFK FRXUVH DV FDOFXODWHG IURP WKH DERYH HTXDWLRQ
KRZHYHUtPLQVKDOOQRWEHOHVVWKDQLQIRUDQ\WDQNFRXUVH
D LVWKHQRPLQDOGLDPHWHURIWDQNLQIHHW IW H
LV WKH KHLJKW IURP WKH ERWWRP RI WKH VKHOO FRXUVH XQGHU FRQVLGHUDWLRQ WR WKH PD[LPXP OLTXLG OHYHO ZKHQ
HYDOXDWLQJDQHQWLUHVKHOOFRXUVHLQIHHW IW RU
LVWKHKHLJKWIURPWKHERWWRPRIWKHOHQJWKL VHH IURPWKHORZHVWSRLQWRIWKHERWWRPRILRIWKH
ORFDOO\WKLQQHGDUHDWRWKHPD[LPXPOLTXLGOHYHOLQIHHW IW RU
LVWKHKHLJKWIURPWKHORZHVWSRLQWZLWKLQDQ\ORFDWLRQRILQWHUHVWWRWKHPD[LPXPOLTXLGOHYHOLQIHHW IW G LVWKHKLJKHVWVSHFLILFJUDYLW\RIWKHFRQWHQWV
$3,67$1'$5' LVWKHPD[LPXPDOORZDEOHVWUHVVLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ XVHWKHVPDOOHURIYRUT
IRU ERWWRP DQG VHFRQG FRXUVH XVH WKH VPDOOHU RI Y RU T IRU DOO RWKHU FRXUVHV$OORZDEOH VKHOO
VWUHVVHVDUHVKRZQ7DEOH
IRUPDWHULDOVOLVWHGLQWKHFXUUHQWDQGSUHYLRXVHGLWLRQVRI$3,&DQG$3,
S
127(
IRUUHFRQVWUXFWHGWDQNVSVKDOOEHLQDFFRUGDQFHZLWKWKHFXUUHQWDSSOLFDEOHVWDQGDUG
Y
LVWKHVSHFLILHGPLQLPXP\LHOGVWUHQJWKRIWKHSODWHXVHOEILQLIQRWNQRZQ
T
LVWKHVPDOOHURIWKHVSHFLILHGPLQLPXPWHQVLOHVWUHQJWKRIWKHSODWHRUOEILQXVHOEILQLI
QRWNQRZQ
E
LVWKHRULJLQDOMRLQWHIILFLHQF\IRUWKHWDQN8VH7DEOHLIRULJLQDOELVXQNQRZQE ZKHQHYDOXDWLQJWKH
UHWLUHPHQWWKLFNQHVVLQDFRUURGHGSODWHZKHQDZD\IURPZHOGVRUMRLQWVE\DWOHDVWWKHJUHDWHURILQRU
WZLFHWKHSODWHWKLFNQHVV
,IWKHWDQNZLOOEHK\GURVWDWLFDOO\WHVWHGWKHK\GURVWDWLFWHVWKHLJKWHtVKDOOEHOLPLWHGE\RQHRUPRUHRIWKH
IROORZLQJPHWKRGV7KHWDQNVKDOOQRWEHILOOHGDERYHWKHOHYHOGHWHUPLQHGE\WKHOHVVHUYDOXHRIHtGHWHUPLQHGEHORZ
D $IWHUGHWHUPLQLQJWKHFRQWUROOLQJWKLFNQHVVRIDQHQWLUHVKHOOFRXUVHHtFDOFXODWHGDVIROORZV
S t Et PLQ
D
Ht
E $IWHUGHWHUPLQLQJWKHFRQWUROOLQJWKLFNQHVVE\IRUDORFDOO\WKLQQHGDUHDRUDWDQ\RWKHUORFDWLRQRILQWHUHVW
ZLWKLQDVKHOOFRXUVHHtLVFDOFXODWHGDVIROORZV
Ht
S t Et PLQ
D
ZKHUH
Ht LV WKH KHLJKW IURP WKH ERWWRP RI WKH VKHOO FRXUVH XQGHU FRQVLGHUDWLRQ WR WKH K\GURVWDWLF WHVW KHLJKW ZKHQ
HYDOXDWLQJDQHQWLUHVKHOOFRXUVHLQIHHWRU
LVWKHKHLJKWIURPWKHERWWRPRIWKHOHQJWKL VHH IRUWKHPRVWVHYHUHO\WKLQQHGDUHDLQHDFKVKHOO
FRXUVHWRWKHK\GURVWDWLFWHVWKHLJKWLQIHHWRU
LVWKHKHLJKWIURPWKHORZHVWSRLQWZLWKLQDQ\RWKHUORFDWLRQRILQWHUHVWWRWKHK\GURVWDWLFWHVWKHLJKWLQIHHW
St LVWKHPD[LPXPDOORZDEOHK\GURVWDWLFWHVWVWUHVVLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ XVHWKHVPDOOHURI
YRUTIRUERWWRPDQGVHFRQGFRXUVHVXVHWKHVPDOOHURIYRUTIRUDOORWKHUFRXUVHV
127(
'HSHQGLQJRQWKHVSHFLILFJUDYLW\RIWKHFRQWHQWXVHGWRGHWHUPLQHtPLQHtPD\EHOHVVWKDQH7HVWLQJWKHWDQNWRH
PD\\LHOGWKHFRUURGHGDUHD
127(
,IHtLVOHVVWKDQHRZQHURSHUDWRUVKDOOGHWHUPLQHWKHFRQVHTXHQFHDQGDFFHSWDELOLW\RIRSHUDWLQJWKHWDQNWRHLWV
PD[LPXPGHVLJQOLTXLGOHYHO5HSDLUVWRVKHOOVHFWLRQVDERYHHtVKDOOFRPSO\ZLWKWKHUHTXLUHPHQWVRI
127(
)RUUHFRQVWUXFWHGWDQNVStVKDOOEHSHUWKHFXUUHQWDSSOLFDEOHVWDQGDUG
$OWHUQDWLYHO\WKHPLQLPXPDFFHSWDEOHVKHOOSODWHWKLFNQHVVIRUWDQNVZLWKGLDPHWHUVHTXDOWRRUOHVVWKDQ
IWPD\EHFDOFXODWHGLQDFFRUGDQFHZLWKWKHYDULDEOHGHVLJQSRLQWPHWKRGLQ$3,VXEVWLWXWLQJ³SuE´IRU
³S ´EDQGSPD\EHGHILQHGDVLQ
7KHYDULDEOHGHVLJQSRLQWPHWKRGVKDOOEHXVHGIRUWDQNVJUHDWHUWKDQIWLQGLDPHWHUZLWKDOOYDULDEOHV
GHILQHGDVLQ
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7DEOH²0D[LPXP$OORZDEOH6KHOO6WUHVVHV 1RWIRU8VHIRU5HFRQVWUXFWHG7DQNV6HH*HQHUDO1RWH
$3,67$1'$5' 7DEOH²-RLQW(IILFLHQFLHVIRU:HOGHG-RLQWV
6WDQGDUG
(GLWLRQ
DQG<HDU
6HYHQWKDQG/DWHU
WR3UHVHQW
$3,
)LUVWWR6L[WK
WR
WKDQGWK
WR
$3,&
UGWRWK
WR
)LUVWDQG6HFRQG
WR
8QNQRZQ
D
E
F
G
7\SH
RI-RLQW
-RLQW
(IILFLHQF\E
$SSOLFDELOLW\
RU/LPLWV
%XWW
%DVLF
6WDQGDUG
%XWW
$QQH[$
6SRW57
%XWW
$QQH[$
1R57
%XWW
%DVLF
6WDQGDUG
%XWW
$QQH[HV
'RU*
%XWW
/DSD
%XWWF
/DSD
LQPD[t
/DSE
k
LQPD[t
%XWWF
/DSD
LQPD[t
/DSE
k
LQPD[t
%XWW
/DSG
LQPD[t
)XOOGRXEOHODSZHOGHG
)XOOILOOHWZHOGZLWKDWOHDVW
LQWHUPLWWHQWIXOOILOOHWRSSRVLWHVLGHk SHUFHQWRILQWHUPLWWHQWZHOGH[SUHVVHGLQ
GHFLPDOIRUP
6LQJOHEXWWZHOGHGMRLQWVZLWKDEDFNXSEDUZHUHSHUPLWWHGIURPWKH\HDUVRIWRDQGWR
6LQJOHODSZHOGHGRQO\
7KH WKLFNQHVV GHWHUPLQDWLRQV RI DQG FRQVLGHU OLTXLG ORDGLQJ RQO\$OO RWKHU ORDGV
VKDOODOVREHHYDOXDWHGDFFRUGLQJWRWKHRULJLQDOVWDQGDUGRIFRQVWUXFWLRQDQGHQJLQHHULQJMXGJPHQWVKDOOEHXVHGWR
HYDOXDWHGLIIHUHQWFRQGLWLRQVRUQHZLQIRUPDWLRQ$VDSSOLFDEOHWKHIROORZLQJORDGLQJVVKDOOEHWDNHQLQWRDFFRXQW
D ZLQGLQGXFHGEXFNOLQJ
E VHLVPLFORDGV
F RSHUDWLRQDWWHPSHUDWXUHVRYHUƒ)
G YDFXXPLQGXFHGH[WHUQDOSUHVVXUH
H H[WHUQDOORDGVFDXVHGE\SLSLQJWDQNPRXQWHGHTXLSPHQWKROGGRZQOXJVHWF
I ZLQGLQGXFHGRYHUWXUQLQJ
J ORDGVGXHWRVHWWOHPHQW
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
$VDQDOWHUQDWLYHWRWKHSURFHGXUHVGHVFULEHGDERYHDQ\WKLQQLQJRIWKHWDQNVKHOOEHORZPLQLPXPUHTXLUHG
ZDOOWKLFNQHVVGXHWRFRUURVLRQRURWKHUZDVWDJHPD\EHHYDOXDWHGWRGHWHUPLQHWKHDGHTXDF\IRUFRQWLQXHGVHUYLFH
E\HPSOR\LQJWKHGHVLJQE\DQDO\VLVPHWKRGVGHILQHGLQ6HFWLRQ9,,,'LYLVLRQ$SSHQGL[RIWKH$60(&RGHRU
$3,$60())66HFWLRQ6HFWLRQRU6HFWLRQDVDSSOLFDEOH:KHQXVLQJWKH$60(FULWHULDWKHVWUHVV
YDOXHXVHGLQWKHRULJLQDOWDQNGHVLJQVKDOOEHVXEVWLWXWHGIRUWKHSmYDOXHRI'LYLVLRQLIWKHGHVLJQVWUHVVLVOHVV
WKDQRUHTXDOWRWKHOHVVHURI Y VSHFLILHGPLQLPXP\LHOGVWUHQJWK RU T VSHFLILHGPLQLPXPWHQVLOHVWUHQJWK ,I
WKHRULJLQDOGHVLJQVWUHVVLVJUHDWHUWKDQYRUTWKHQWKHOHVVHURIYRUTVKDOOEHVXEVWLWXWHGIRUSP
0LQLPXP7KLFNQHVV&DOFXODWLRQIRU5LYHWHG7DQN6KHOO
7KHPLQLPXPDFFHSWDEOHWKLFNQHVVIRUULYHWHGWDQNVKHOOVVKDOOEHFDOFXODWHGXVLQJWKHHTXDWLRQLQ
H[FHSWWKDWWKHIROORZLQJDOORZDEOHVWUHVVFULWHULDDQGMRLQWHIILFLHQFLHVVKDOOEHXVHG
S
LVOEILQ
E
LVIRUVKHOOSODWHLQRUPRUHDZD\IURPULYHWV6HH7DEOHIRUMRLQWHIILFLHQFLHVIRUORFDWLRQVZLWKLQ
LQRIULYHWV
7KHULYHWMRLQWHIILFLHQFLHVJLYHQLQ7DEOHDUHFRQVHUYDWLYHPLQLPXPVIRUULYHWHGWDQNFRQVWUXFWLRQGHWDLOV
DQGDUHLQFOXGHGWRVLPSOLI\ULYHWHGWDQNHYDOXDWLRQV+RZHYHULQVRPHFDVHVLWPD\EHDGYDQWDJHRXVWRFDOFXODWH
WKHDFWXDOULYHWMRLQWHIILFLHQFLHVXVLQJFRPSXWDWLRQDOPHWKRGVDSSOLFDEOHWRODSDQGEXWWW\SHULYHWHGMRLQWV:KHQWKLV
DOWHUQDWLYHRIFDOFXODWHGMRLQWHIILFLHQFLHVLVXVHGWKHIROORZLQJPD[LPXPDOORZDEOHVWUHVVHVVKDOODSSO\
D IRUWKHPD[LPXPWHQVLOHVWUHVVLQQHWVHFWLRQRISODWHXVHWKHOHVVHURIYRUTXVHOEILQLITRUY
LVXQNQRZQ
E IRUWKHPD[LPXPVKHDULQQHWVHFWLRQRIULYHWXVHOEILQ
F IRUWKHPD[LPXPEHDULQJVWUHVVRQSODWHVRUULYHWVXVHOEILQIRUULYHWVLQVLQJOHVKHDUDQGOEILQ
IRUULYHWVLQGRXEOHVKHDU
)RUWDQNVZLWKULYHWHGMRLQWVFRQVLGHUDWLRQVKDOOEHJLYHQWRZKHWKHUDQGWRZKDWH[WHQWFRUURVLRQDIIHFWV
VXFKMRLQWV,IFDOFXODWLRQVVKRZWKDWH[FHVVWKLFNQHVVH[LVWVWKLVH[FHVVPD\EHWDNHQDVFRUURVLRQDOORZDQFH
1RQOLTXLGORDGV
VHH VKDOODOVREHFRQVLGHUHGLQWKHDQDO\VLVRIULYHWHGWDQNV
7DEOH²-RLQW(IILFLHQFLHVIRU5LYHWHG-RLQWV
D
E
7\SHRI
-RLQW
1XPEHURI
5LYHW5RZV
-RLQW(IILFLHQF\
E
/DS
/DS
/DS
/DS
%XWWD
E
%XWW
E
%XWW
E
%XWW
E
%XWW
E
$OOEXWWMRLQWVOLVWHGKDYHEXWWVWUDSVERWKLQVLGHDQGRXWVLGH
1XPEHURIURZRQHDFKVLGHRIMRLQWFHQWHUOLQH
$3,67$1'$5' 'LVWRUWLRQV
6KHOO GLVWRUWLRQV LQFOXGH RXWRIURXQGQHVV EXFNOHG DUHDV IODW VSRWV GHQWV DQG SHDNLQJ DQG EDQGLQJ DW
ZHOGHGMRLQWV
6KHOO GLVWRUWLRQV FDQ EH FDXVHG E\ PDQ\ FRQGLWLRQV VXFK DV IRXQGDWLRQ VHWWOHPHQW RYHU RU XQGHU
SUHVVXULQJKLJKZLQGSRRUVKHOOIDEULFDWLRQRUUHSDLUWHFKQLTXHVDQGVRIRUWK
6KHOOGLVWRUWLRQVVKDOOEHHYDOXDWHGRQDQLQGLYLGXDOEDVLVWRGHWHUPLQHLIVSHFLILFFRQGLWLRQVDUHFRQVLGHUHG
DFFHSWDEOHIRUFRQWLQXLQJWDQNVHUYLFHDQGRUWKHH[WHQWRIFRUUHFWLYHDFWLRQ
)ODZV
)ODZVVXFKDVFUDFNVRUODPLQDWLRQVVKDOOEHWKRURXJKO\H[DPLQHGDQGHYDOXDWHGWRGHWHUPLQHWKHLUQDWXUHDQGH[WHQW
DQGQHHGIRUUHSDLU,IDUHSDLULVQHHGHGDUHSDLUSURFHGXUHVKDOOEHGHYHORSHGDQGLPSOHPHQWHG7KHUHTXLUHPHQW
IRUUHSDLULQJVFDUVVXFKDVDUFVWULNHVJRXJHVRUWHDUVIURPWHPSRUDU\DWWDFKPHQWZHOGVPXVWEHHYDOXDWHGRQD
FDVHE\FDVHEDVLV&UDFNVLQWKHVKHOOWRERWWRPZHOGVKDOOEHUHPRYHG
:LQG*LUGHUVDQG6KHOO6WLIIHQHUV
7KHHYDOXDWLRQRIDQH[LVWLQJWDQNVKHOOIRUVXLWDELOLW\IRUVHUYLFHPXVWDOVRFRQVLGHUWKHGHWDLOVDQGFRQGLWLRQRIDQ\
ZLQGJLUGHUVRUVKHOOVWLIIHQHUV'HJUDGDWLRQE\FRUURVLRQRIWKHVHVWUXFWXUDOHOHPHQWVRUWKHLUDWWDFKPHQWZHOGVWRWKH
VKHOOPD\UHQGHUWKHVHHOHPHQWVLQDGHTXDWHIRUWKHGHVLJQFRQGLWLRQV
6KHOO:HOGV
7KHFRQGLWLRQRIWKHWDQNVKHOOZHOGVVKDOOEHHYDOXDWHGIRUVXLWDELOLW\IRUVHUYLFHXVLQJFULWHULDIURPWKLVVWDQGDUG
WKH DVEXLOW VWDQGDUG RU ILWQHVVIRUVHUYLFH DVVHVVPHQW 7\SLFDO VKHOO ZHOG FRQGLWLRQV DUH OLVWHG EHORZ ZLWK WKHLU
UHTXLUHGHYDOXDWLRQDQGRUUHSDLUDFWLRQV5HSDLUSURFHGXUHVDUHJLYHQLQ
&UDFNVVKDOOEHUHPRYHG5HPRYDODUHDVVKDOOEHHYDOXDWHGDQGUHSDLUHGLIQHFHVVDU\
([FHVVLYHZHOGUHLQIRUFHPHQWGRHVQRWUHTXLUHUHZRUNLIWKHWDQNKDVDVDWLVIDFWRU\KLVWRU\RIVHUYLFH,IWKH
UHLQIRUFHPHQWZLOOLQWHUIHUHZLWKIORDWLQJURRIVHDORSHUDWLRQLWVKDOOEHJURXQGDVUHTXLUHG
8QGHUFXWRIVKHOOEXWWZHOGVUHVXOWLQJIURPRULJLQDOFRQVWUXFWLRQVKDOOQRWUHTXLUHUHSDLULIWKHWDQNKDVEHHQ
K\GURWHVWHGRUZLOOQRWXQGHUJRDFKDQJHRIVHUYLFH
:HOGFRUURVLRQVKDOOEHUHSDLUHGLIWKHFRUURVLRQSLWFDYLW\ERWWRPLVEHORZWKHVXUIDFHRIWKHDGMDFHQWVKHOO
SODWH
6KHOOWRERWWRPZHOGFRUURVLRQVKDOOEHUHSDLUHGLIWKHUHPDLQLQJILOOHWLVOHVVWKDQWKHUHTXLUHGZHOGVL]H
)LOOHWZHOGVL]HRQH[LVWLQJQR]]OHVVKDOOEHHYDOXDWHGDFFRUGLQJWRWKHRULJLQDOVWDQGDUGRIFRQVWUXFWLRQ
6XUIDFHGHIHFWVVXFKDVDUFVWULNHVVKDOOEHDFFHSWDEOHLIWKHWDQNKDVEHHQK\GURWHVWHGRUZLOOQRWXQGHUJR
DFKDQJHRIVHUYLFH
6KHOO3HQHWUDWLRQV
7KHFRQGLWLRQDQGGHWDLOVRIH[LVWLQJVKHOOSHQHWUDWLRQV QR]]OHVPDQZD\VFOHDQRXWRSHQLQJVHWF VKDOOEH
UHYLHZHGZKHQDVVHVVLQJWKHLQWHJULW\RIDQH[LVWLQJWDQNVKHOO'HWDLOV VXFKDVW\SHDQGH[WHQWRIUHLQIRUFHPHQW
ZHOG VSDFLQJ DQG WKLFNQHVV RI FRPSRQHQWV UHLQIRUFLQJ SODWH QR]]OH QHFN EROWLQJ IODQJH DQG FRYHU SODWH DUH
LPSRUWDQWFRQVLGHUDWLRQVDQGVKDOOEHUHYLHZHGIRUVWUXFWXUDODGHTXDF\DQGFRPSOLDQFHZLWKWKHDVEXLOWVWDQGDUG
([LVWLQJZHOGVRQWKHWDQNVKHOOWKDWDUHQRWWREHPRGLILHGRUDIIHFWHGE\UHSDLUVDQGDUHFORVHUWKDQWKHPLQLPXP
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
UHTXLUHG VSDFLQJV LQ $3, 6HYHQWK (GLWLRQ RU ODWHU DUH DFFHSWDEOH IRU FRQWLQXHG VHUYLFH LI WKH ZHOGV DUH
H[DPLQHG E\ WKH PDJQHWLF SDUWLFOH RU $&)0 $OWHUQDWLQJ &XUUHQW )LHOG 0HDVXUHPHQW PHWKRGV DQG KDYH QR
UHMHFWDEOHGHIHFWVRULQGLFDWLRQV*ULQGLQJWRHOLPLQDWHZHOGGHIHFWVLVSHUPLVVLEOHLIWKHUHVXOWLQJSURILOHVDWLVILHVEDVH
WKLFNQHVVDQGZHOGVL]HUHTXLUHPHQWV:HOGUHSDLUVPD\QRWEHXVHGWRDFFHSWZHOGVSDFLQJVFORVHUWKDQSHUPLWWHG
E\$3, 6HYHQWK(GLWLRQRUODWHU H[FHSWDVSHUPLWWHGE\$Q\RWKHUQRQFRPSOLDQFHRUGHWHULRUDWLRQGXH
WR FRUURVLRQ PXVW EH DVVHVVHG DQG UHSDLU SURFHGXUHV HVWDEOLVKHG ZKHUH DSSURSULDWH RU WKH WDQN UHUDWHG DV
QHFHVVDU\
1R]]OHZDOOWKLFNQHVVVKDOOEHHYDOXDWHGIRUSUHVVXUHDQGDOORWKHUORDGV
2SHUDWLRQDW(OHYDWHG7HPSHUDWXUHV
7DQNVRIZHOGHGFRQVWUXFWLRQWKDWRSHUDWHDWHOHYDWHGWHPSHUDWXUHV H[FHHGLQJq)EXWOHVVWKDQq) VKDOOEH
HYDOXDWHGIRUVXLWDELOLW\RIVHUYLFH7KHUHTXLUHPHQWVRIWKLVVHFWLRQDUHEDVHGLQSDUWRQWKHUHTXLUHPHQWVRI$3,
$QQH[0
&RQWLQXHG2SHUDWLRQDW(OHYDWHG7HPSHUDWXUHV
([LVWLQJWDQNVWKDWZHUHRULJLQDOO\GHVLJQHGDQGFRQVWUXFWHGWRWKHUHTXLUHPHQWVRI$3,7DEOH0D
RU0EVKDOOEHHYDOXDWHGIRUFRQWLQXHGVHUYLFHDVIROORZV D 7KH WDQN VKHOO VKDOO EH HYDOXDWHG LQ FRQIRUPDQFH ZLWK H[FHSW WKDW WKH DOORZDEOH VWUHVV S IRU DOO VKHOO
FRXUVHVVKDOOQRWH[FHHGY7KHYDOXHRIYVKDOOEHWDNHQDVWKHPLQLPXPVSHFLILHG\LHOGVWUHQJWKRIWKHVKHOO
PDWHULDOPXOWLSOLHGE\WKH\LHOGVWUHQJWKUHGXFWLRQIDFWRULQRI$3,7DEOH0D :KHQWKHPLQLPXPVSHFLILHG
\LHOG VWUHQJWK RI WKH VKHOO PDWHULDO LV QRW NQRZQ WKH HYDOXDWLRQ VKDOO EH EDVHG XSRQ DQ DVVXPHG YDOXH RI
OEILQ
E ,IWKHERWWRPSODWHPDWHULDOLQWKHFULWLFDO]RQHKDVEHHQUHGXFHGLQWKLFNQHVVEH\RQGWKHSURYLVLRQVRIWKHRULJLQDO
WDQNERWWRPFRUURVLRQDOORZDQFHLIDQ\WKHVKHOOWRERWWRPMRLQWVKDOOEHHYDOXDWHGIRUHOHYDWHGWHPSHUDWXUHOLTXLG
KHDGDQGWKHUPDOF\FOHV7KHVLPSOLILHGDQDO\VLVWHFKQLTXHUHFRPPHQGHGLQ$3,6HFWLRQ0PD\EHXVHG
WRVDWLVI\WKLVUHTXLUHPHQW
([LVWLQJ HOHYDWHG WHPSHUDWXUH VHUYLFH WDQNV WKDW ZHUH QRW RULJLQDOO\ GHVLJQHG DQG FRQVWUXFWHG WR WKH
UHTXLUHPHQWVRI$3,$QQH[0EXWKDYHDVXFFHVVIXOVHUYLFHKLVWRU\RIRSHUDWLRQVKDOOEHHYDOXDWHGIRUFRQWLQXHG
VHUYLFH DV QRWHG LQ ,I WKH WDQN GLDPHWHU H[FHHGV IW DQG WKH WDQN ZDV QRW FRQVWUXFWHG ZLWK D EXWW
ZHOGHGDQQXODUULQJDQDQDO\VLVRIWKHFULWLFDO]RQHLVUHTXLUHG>VHHE @,QDGGLWLRQWKHPD[LPXPRSHUDWLQJ
WHPSHUDWXUHVKDOOQRWH[FHHGWKHWHPSHUDWXUHVDWZKLFKWKHWDQNKDVRSHUDWHGVXFFHVVIXOO\LQWKHSDVW
&RQYHUVLRQWR2SHUDWLRQDW(OHYDWHG7HPSHUDWXUHV
([LVWLQJWDQNVWKDWZHUHQRWRULJLQDOO\GHVLJQHGDQGFRQVWUXFWHGWRWKHUHTXLUHPHQWVRI$3,$QQH[0VKDOOEH
HYDOXDWHGIRUDFKDQJHWRVHUYLFHWRHOHYDWHGWHPSHUDWXUHVDVIROORZV
D 7KH WDQN VKHOO VKDOO EH HYDOXDWHG LQ FRQIRUPDQFH ZLWK$3, $QQH[ 07KH DOORZDEOH VKHOO VWUHVVHV RI WKLV
VWDQGDUG $3, VKDOOQRWEHXVHG
E 7KHQHHGIRUDEXWWZHOGHGDQQXODUULQJVKDOOEHGHWHUPLQHGLQFRQIRUPDQFHZLWK$3,$QQH[0DQGLQVWDOOHGLI
UHTXLUHG
F 7KHVKHOOWRERWWRPMRLQWVKDOOEHHYDOXDWHGIRUIDWLJXHFRQGLWLRQV,QDGGLWLRQWKHDGHTXDF\RIWKHERWWRPSODWH
PDWHULDOLQWKHFULWLFDO]RQHVKDOOEHEDVHGXSRQWKHUHTXLUHPHQWVRIWKLVVWDQGDUG
$3,67$1'$5' 7DQN%RWWRP(YDOXDWLRQ
*HQHUDO
7DQN ERWWRP LQVSHFWLRQ VWUDWHJLHV VKDOO SURYLGH VXLWDEOH GDWD ZKLFK ZKHQ XVHG ZLWK WKH SURFHGXUHV LQ WKLV
VWDQGDUG ZLOO GHWHUPLQH WKH WDQN ERWWRP LQWHJULW\ QHFHVVDU\ WR SUHYHQW OHDNDJH RI IOXLGV WKDW PD\ FDXVH
HQYLURQPHQWDOGDPDJH(DFKDVSHFWRIFRUURVLRQSKHQRPHQDDQGRWKHUSRWHQWLDOOHDNRUIDLOXUHPHFKDQLVPPXVW
EH H[DPLQHG 3HULRGLF DVVHVVPHQW RI WDQN ERWWRP LQWHJULW\ VKDOO EH SHUIRUPHG LQ DGGLWLRQ WR WKH LQWHUQDO
LQVSHFWLRQV VSHFLILHG LQ 7KH DVVHVVPHQW SHULRG VKDOO EH OHVV WKDQ RU HTXDO WR WKH DSSURSULDWH LQWHUQDO
LQVSHFWLRQLQWHUYDOJLYHQLQ7KHXVHRIOHDNGHWHFWLRQWHVWVRUPRQLWRULQJV\VWHPV VXFKDVGRXEOHERWWRPVRU
OLQHUVXQGHUWDQNERWWRPVZLWKOHDNGHWHFWLRQSLSHV ZLOOVDWLVI\WKHUHTXLUHPHQWIRUSHULRGLFDVVHVVPHQWEHWZHHQ
LQWHUQDOLQVSHFWLRQV
([FHVVLYH IRXQGDWLRQ VHWWOHPHQW RI VWRUDJH WDQNV FDQ DIIHFW WKH LQWHJULW\ RI WDQN VKHOOV DQG ERWWRPV 7KHUHIRUH
PRQLWRULQJ WKH VHWWOHPHQW EHKDYLRU RI WDQNV LV D UHFRJQL]HG SUDFWLFH WR DVVHVV WKH LQWHJULW\ RI WDQN ERWWRPV 6HH
$QQH[%IRUWHFKQLTXHVIRUHYDOXDWLQJWDQNERWWRPVHWWOHPHQW
&DXVHVRI%RWWRP)DLOXUH
7KH IROORZLQJ OLVW JLYHV VRPH KLVWRULFDO FDXVHV RI WDQN ERWWRP OHDNDJH RU IDLOXUH WKDW VKDOO EH FRQVLGHUHG LQ WKH
GHFLVLRQWROLQHUHSDLURUUHSODFHDWDQNERWWRP
D LQWHUQDOSLWWLQJDQGSLWWLQJUDWHVLQWKHDQWLFLSDWHGVHUYLFH
E FRUURVLRQRIZHOGMRLQWV ZHOGDQGKHDWDIIHFWHG]RQH F ZHOGMRLQWFUDFNLQJKLVWRU\
G VWUHVVHVSODFHGRQWKHERWWRPSODWHVE\URRIVXSSRUWORDGVDQGVKHOOVHWWOHPHQW
H XQGHUVLGHFRUURVLRQ QRUPDOO\LQWKHIRUPRISLWWLQJ I LQDGHTXDWHGUDLQDJHUHVXOWLQJLQVXUIDFHZDWHUIORZLQJXQGHUWKHWDQNERWWRP
J WKHODFNRIDQDQQXODUSODWHULQJZKHQUHTXLUHG
K XQHYHQVHWWOHPHQWWKDWUHVXOWVLQKLJKORFDOL]HGVWUHVVHVLQWKHERWWRPSODWHV
L URRIVXSSRUWFROXPQVRURWKHUVXSSRUWVZHOGHGWRWKHWDQNERWWRPZKHUHDGHTXDWHDOORZDQFHIRUPRYHPHQWZDV
QRWPDGH
M URFNRUJUDYHOIRXQGDWLRQSDGVZLWKLQDGHTXDWHO\ILOOHGLQVXUIDFHYRLGV
N QRQKRPRJHQHRXVILOOXQGHUWKHWDQNERWWRP HJDOXPSRIFOD\LQDVDQGIRXQGDWLRQSDG O LQDGHTXDWHO\VXSSRUWHGVXPSV
7DQN%RWWRP5HOHDVH3UHYHQWLRQ6\VWHPV 536V
$3,VXSSRUWVWKHXVHRIDUHOHDVHSUHYHQWLRQV\VWHP 536 WRPDLQWDLQWKHLQWHJULW\RIWDQNERWWRPV7KHWHUP536
UHIHUVWRWKHVXLWHRI$3,VWDQGDUGVDQGUHFRPPHQGHGSUDFWLFHVWKDWDUHGHVLJQHGWRPDLQWDLQWDQNLQWHJULW\DQGWKXV
SURWHFW WKH HQYLURQPHQW :LWK UHVSHFW WR WDQN ERWWRPV WKHVH LQFOXGH LQWHUQDO LQVSHFWLRQ RI WKH WDQN ERWWRP OHDN
GHWHFWLRQV\VWHPV DQGOHDNWHVWLQJ RI WKH WDQN LQVWDOOLQJFDWKRGLFSURWHFWLRQIRU WKH XQGHUVLGHRI WKH WDQN ERWWRP
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
OLQLQJWKHERWWRPRIWKHWDQNLQWHULRUSURYLGLQJDUHOHDVHSUHYHQWLRQEDUULHU 53% XQGHUWKHWDQNERWWRPRUVRPH
FRPELQDWLRQRIWKHVHPHDVXUHVGHSHQGLQJRQWKHRSHUDWLQJHQYLURQPHQWDQGVHUYLFHRIWKHWDQN
,QWHUQDO,QVSHFWLRQ
,QWHUQDO LQVSHFWLRQ RI WKH WDQN ERWWRP LV LQWHQGHG WR DVVHVV WKH FXUUHQW ERWWRP LQWHJULW\ DQG LGHQWLI\ SUREOHP
FRQGLWLRQV WKDW PD\ OHDG WR IXWXUH ORVV RI LQWHJULW\ ,QWHUQDO LQVSHFWLRQ WHFKQLTXHV VXFK DV ERWWRP VHWWOHPHQW
PRQLWRULQJ DQG FRQVLGHUDWLRQV IRU GHWHUPLQLQJ DSSURSULDWH LQVSHFWLRQ IUHTXHQF\ DUH IRXQG LQ 6HFWLRQ $QQH[%$QQH[&DQGHOVHZKHUH
/HDN'HWHFWLRQ6\VWHPVDQG/HDN7HVWLQJ
7DQNOHDNGHWHFWLRQV\VWHPVDQGOHDNWHVWLQJDUHLQWHQGHGWRLGHQWLI\TXDQWLI\DQGRUORFDWHDWDQNERWWRPLQWHJULW\
IDLOXUHWKDWLVQRWGHWHFWDEOHYLVXDOO\RUWKURXJKLQYHQWRU\UHFRQFLOLDWLRQ/HDNGHWHFWLRQPD\EHLQWHJUDOWRWKHWDQN
GHVLJQHLWKHUDVFRQVWUXFWHGRUDVPRGLILHG HJ53%ZLWKLQWHUVWLWLDOPRQLWRULQJ RUPD\RSHUDWHVHSDUDWHO\ HJVRLO
YDSRUPRQLWRULQJDQGFKHPLFDOPDUNHU PD\EHRSHUDWHGE\WKHWDQNRZQHURUDVDWKLUGSDUW\WHVWRUVHUYLFHDQG
PD\GHWHFWOHDNVFRQWLQXRXVO\RURQDSHULRGLFEDVLV7DQNOHDNGHWHFWLRQV\VWHPVDQGWHVWLQJPHWKRGVDUHOLVWHGDQG
GLVFXVVHGLQ$3,
&DWKRGLF3URWHFWLRQ
&DWKRGLF SURWHFWLRQ V\VWHPV DUH LQWHQGHG WR PLWLJDWH FRUURVLRQ RI VWHHO VXUIDFHV LQ FRQWDFW ZLWK VRLO VXFK DV WKH
XQGHUVLGHRIWDQNERWWRPV$VHOHFWLRQEDVLVIRUFDWKRGLFSURWHFWLRQV\VWHPVLVFRYHUHGE\$3,
,QWHUQDO/LQLQJ3URWHFWLRQ
,QWHUQDO OLQLQJV DQG FRDWLQJV IRU WKH WRS VLGH RI WKH WDQN ERWWRP DUH LQWHQGHG WR PLWLJDWH FRUURVLRQ E\ SURYLGLQJ D
EDUULHU EHWZHHQ WKH WDQN ERWWRP DQG FRUURVLRQ VRXUFHV$SSOLHG OLQLQJV DQG FRDWLQJV IRU LQWHUQDO VXUIDFHV RI WDQN
ERWWRPVDUHFRYHUHGE\$3,
5HOHDVH3UHYHQWLRQ%DUULHUV 53%V
$Q53%LQFOXGHVVWHHOERWWRPVV\QWKHWLFPDWHULDOVFOD\OLQHUVFRQFUHWHSDGVDQGDOORWKHUEDUULHUVRUFRPELQDWLRQV
RIEDUULHUVSODFHGLQWKHERWWRPRIRUXQGHUDWDQNZKLFKKDYHWKHIXQFWLRQRI
SUHYHQWLQJWKHHVFDSHRIUHOHDVHGPDWHULDODQG
FRQWDLQLQJRUFKDQQHOLQJUHOHDVHGPDWHULDOIRUOHDNGHWHFWLRQ
53%GHVLJQLVFRYHUHGLQGHWDLOLQ$QQH[,RI$3,5HSODFHPHQWRIWDQNERWWRPVLVFRYHUHGLQ
,IDGHFLVLRQLVPDGHWRUHSODFHDQH[LVWLQJERWWRP$3,VXSSRUWVWKHHYDOXDWLRQRILQVWDOOLQJDQ53%RUFRQWLQXHGXVH
RIDQ5367KHHYDOXDWLRQVKRXOGFRQVLGHUWKHHIIHFWLYHQHVVRIRWKHU536FRQWUROVWKHSURGXFWVWRUHGWKHORFDWLRQRI
WKHWDQNDQGHQYLURQPHQWDOVHQVLWLYLWLHV
%RWWRP3ODWH7KLFNQHVV0HDVXUHPHQWV
9DULRXVPHWKRGVIRUGHWHUPLQLQJWDQNERWWRPSODWHVRLOVLGH FRUURVLRQDUHDYDLODEOH7KHPHWKRGVYDU\WRWKHH[WHQW
E\ZKLFKWKH\FDQUHOLDEO\PHDVXUHJHQHUDOFRUURVLRQDQGSLWWLQJ$FRPELQDWLRQRIWKHVHPHWKRGVPD\EHUHTXLUHG
DORQJ ZLWK H[WUDSRODWLRQ WHFKQLTXHV DQG DQDO\VLV WR HVWDEOLVK WKH SUREDEOH FRQGLWLRQV RI WKH HQWLUH WDQN ERWWRP
0DJQHWLFIOX[OHDNDJH 0)/ WRROVDUHFRPPRQO\XVHGDORQJZLWKXOWUDVRQLF 87 WKLFNQHVVPHDVXUHPHQWWRROVWR
H[DPLQHWDQNERWWRPV8OWUDVRQLFWKLFNQHVVPHDVXUHPHQWWHFKQLTXHVDUHRIWHQXVHGWRFRQILUPDQGIXUWKHUTXDQWLI\
GDWDREWDLQHGE\0)/H[DPLQDWLRQEXWWKHVHWHFKQLTXHVPD\QRWEHUHTXLUHGGHSHQGLQJRQWKHVSHFLILFSURFHGXUH
DQG DSSOLFDWLRQ7KH TXDOLW\ RI GDWD REWDLQHG IURP ERWK 0)/DQG XOWUDVRQLF WKLFNQHVV WHFKQLTXHV LV GHSHQGHQW RQ
$3,67$1'$5' SHUVRQQHO HTXLSPHQW DQG SURFHGXUHV $QQH[ * PD\ EH XVHG WR SURYLGH JXLGDQFH LQ TXDOLI\LQJ SHUVRQQHO DQG
SURFHGXUHVIRUREWDLQLQJWKLFNQHVVGDWD
0LQLPXP7KLFNQHVVIRU7DQN%RWWRP3ODWH
4XDQWLI\LQJWKHPLQLPXPUHPDLQLQJWKLFNQHVVRIWDQNERWWRPVEDVHGRQWKHUHVXOWVRIPHDVXUHPHQWFDQEHGRQHE\
WKHPHWKRGRXWOLQHGLQ2WKHUDSSURDFKHVVXFKDVWKHSUREDELOLVWLFPHWKRGLQPD\EHXVHG
$Q DFFHSWDEOH PHWKRG IRU FDOFXODWLQJ WKH PLQLPXP DFFHSWDEOH ERWWRP WKLFNQHVV IRU WKH HQWLUH ERWWRP RU
SRUWLRQVWKHUHRILVDVIROORZV
MRT 0LQLPXPRIRTEFRURTLS ±OU StPUUPU ZKHUH
MRT LVWKHPLQLPXPUHPDLQLQJWKLFNQHVVDWWKHHQGRILQWHUYDOOU 7KLVYDOXHPXVWPHHWWKHUHTXLUHPHQWVRI
7DEOHDQG
OU
LVWKHLQVHUYLFHLQWHUYDORIRSHUDWLRQ \HDUVWRQH[WLQWHUQDOLQVSHFWLRQ QRWWRH[FHHGWKDWDOORZHGE\
RTEF LVWKHPLQLPXPUHPDLQLQJWKLFNQHVVIURPERWWRPVLGHFRUURVLRQDIWHUUHSDLUV
RTLS LVWKHPLQLPXPUHPDLQLQJWKLFNQHVVIURPLQWHUQDOFRUURVLRQDIWHUUHSDLUV
StPU LVWKHPD[LPXPUDWHRIFRUURVLRQQRWUHSDLUHGRQWKHWRSVLGHStPU IRUFRDWHGDUHDVRIWKHERWWRP7KH
H[SHFWHGOLIHRIWKHFRDWLQJPXVWHTXDORUH[FHHGOrWRXVHStPU UPU LVWKHPD[LPXPUDWHRIFRUURVLRQRQWKHERWWRPVLGH7RFDOFXODWHWKHFRUURVLRQUDWHXVHWKHPLQLPXP
UHPDLQLQJWKLFNQHVVDIWHUUHSDLUV$VVXPHDOLQHDUUDWHEDVHGRQWKHDJHRIWKHWDQNVUPU IRUDUHDV
WKDWKDYHHIIHFWLYHFDWKRGLFSURWHFWLRQ
127(
)RUDUHDVRIDERWWRPWKDWKDYHEHHQVFDQQHGE\WKHPDJQHWLFIOX[OHDNDJH RUH[FOXVLRQ SURFHVVDQGGR
QRWKDYHHIIHFWLYHFDWKRGLFSURWHFWLRQWKHWKLFNQHVVXVHGIRUFDOFXODWLQJUPUPXVWEHWKHOHVVHURIWKH0)/WKUHVKROG
RU WKH PLQLPXP WKLFNQHVV RI FRUURVLRQ DUHDV WKDW DUH QRW UHSDLUHG7KH 0)/WKUHVKROG LV GHILQHG DV WKH PLQLPXP
UHPDLQLQJWKLFNQHVVWREHGHWHFWHGLQWKHDUHDVH[DPLQHG7KLVYDOXHVKRXOGEHSUHGHWHUPLQHGE\WKHWDQNRZQHU
EDVHGRQWKHGHVLUHGLQVSHFWLRQLQWHUYDO
$UHDVRIERWWRPVLGHFRUURVLRQWKDWDUHUHSDLUHGVKRXOGEHHYDOXDWHGZLWKWKHFRUURVLRQUDWHIRUWKHUHSDLUHGDUHD
XQOHVVWKHFDXVHRIFRUURVLRQKDVEHHQUHPRYHG7KHHYDOXDWLRQLVGRQHE\XVLQJWKHFRUURVLRQUDWHRIWKHUHSDLUHG
DUHDIRUUPUDQGDGGLQJWKHSDWFKSODWH LIXVHG WKLFNQHVVWRWKHWHUP³PLQLPXPRIRTEFRURTLS´
127(
&RUURVLRQRIWKHERWWRPSODWHLQFOXGHVORVVRIPHWDOIURPLVRODWHGRUJHQHUDOFRUURVLRQ
)RUWKHSUREDELOLVWLFPHWKRGDVWDWLVWLFDODQDO\VLVLVPDGHRIWKLFNQHVVGDWDIURPPHDVXUHPHQWV VHH SURMHFWLQJUHPDLQLQJWKLFNQHVVEDVHGRQVDPSOHVFDQQLQJRIWKHERWWRP
,IWKHPLQLPXPERWWRPWKLFNQHVVHVDWWKHHQGRIWKHLQVHUYLFHSHULRGRIRSHUDWLRQDUHFDOFXODWHGWREHOHVV
WKDQ WKH PLQLPXP ERWWRP UHQHZDO WKLFNQHVVHV JLYHQ LQ 7DEOH RU OHVV WKDQ WKH PLQLPXP ERWWRP UHQHZDO
WKLFNQHVVHVSURYLGLQJDFFHSWDEOHULVNDVGHWHUPLQHGE\DQ5%,DVVHVVPHQWSHUWKHERWWRPVKDOOEHOLQHG
UHSDLUHGUHSODFHGRUWKHLQWHUYDOWRWKHQH[WLQWHUQDOLQVSHFWLRQVKRUWHQHG
8QOHVVDVWUHVVDQDO\VLVLVSHUIRUPHGWKHPLQLPXPERWWRPSODWHWKLFNQHVVLQWKHFULWLFDO]RQHRIWKHWDQN
ERWWRP GHILQHG LQ VKDOO EH WKH VPDOOHU RI RQHKDOI WKH RULJLQDO ERWWRP SODWH WKLFNQHVV QRW LQFOXGLQJ WKH
RULJLQDOFRUURVLRQDOORZDQFH RU
RItPLQRIWKHORZHUVKHOOFRXUVHSHUEXWQRWOHVVWKDQLQ,VRODWHG
SLWWLQJZLOOQRWDSSUHFLDEO\DIIHFWWKHVWUHQJWKRIWKHSODWH
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7KHUHSDLURILQWHUQDOSLWWLQJZKHQSHUIRUPHGWRH[WHQGWKHLQVHUYLFHSHULRGRIRSHUDWLRQVKDOOEHE\SLW
ZHOGLQJRYHUOD\ZHOGLQJRUODSSDWFKLQJIROORZHGE\LQVSHFWLRQDQGWHVWLQJ7KHH[WHQWRIZHOGUHSDLUVLVOLPLWHGLQ
WKHFULWLFDO]RQHLQDFFRUGDQFHZLWK
7KHWUHDWPHQWRIERWWRPSLWWLQJE\WKHXVHRIQRQZHOGHGUHSDLUV HJFRDWLQJVFDXONLQJ FDQQRWEHXVHGWR
LQFUHDVHRTLSIRUFDOFXODWLQJMRT
8QOHVV D VWUHVV DQDO\VLV LV SHUIRUPHG WKDW FRQVLGHUV IXWXUH FRUURVLRQ XQWLO WKH WLPH LW FDQ EH LQVSHFWHG
UHSDLUHGRUUHSODFHGWKHIROORZLQJFULWHULDDSSOLHV
²
WKHWKLFNQHVVRIWKHSURMHFWLRQRIWKHERWWRPSODWHEH\RQGWKHVKHOODVPHDVXUHGDWWKHWRHRIWKHRXWVLGHERWWRP
WRVKHOOILOOHWZHOGVKDOOQRWEHOHVVWKDQLQDQG
²
WKHSURMHFWLRQRIWKHERWWRPSODWHEH\RQGWKHRXWVLGHWRHRIWKHVKHOOWRERWWRPZHOGVKDOOEHDWOHDVWLQ
0LQLPXP7KLFNQHVVIRU$QQXODU3ODWH5LQJ
'XH WR VWUHQJWK UHTXLUHPHQWV WKH PLQLPXP WKLFNQHVV RI DQQXODU SODWH ULQJ LV XVXDOO\ JUHDWHU WKDQ
LQ,VRODWHGSLWWLQJZLOOQRWDSSUHFLDEO\DIIHFWWKHVWUHQJWKRIWKHSODWH8QOHVVDVWUHVVDQDO\VLVLVSHUIRUPHG
WKHDQQXODUSODWHWKLFNQHVVVKDOOEHLQDFFRUGDQFHZLWKRUDVDSSOLFDEOH
)RUWDQNVLQVHUYLFHZLWKDSURGXFWVSHFLILFJUDYLW\OHVVWKDQZKLFKUHTXLUHDQQXODUSODWHVIRURWKHUWKDQ
VHLVPLFORDGLQJFRQVLGHUDWLRQVWKHWKLFNQHVVRIWKHDQQXODUSODWHVVKDOOEHQRWOHVVWKDQWKHWKLFNQHVVHVJLYHQLQ
7DEOH SOXV DQ\ VSHFLILHG FRUURVLRQ DOORZDQFH ,QWHUSRODWLRQ LV DOORZHG ZLWKLQ 7DEOH EDVHG RQ VKHOO VWUHVV
GHWHUPLQHGSHU1RWHERI7DEOH
)RUWDQNVLQVHUYLFHZLWKDSURGXFWVSHFLILFJUDYLW\RIRUJUHDWHUZKLFKUHTXLUHDQQXODUSODWHVIRURWKHUWKDQ
VHLVPLFORDGLQJFRQVLGHUDWLRQVWKHWKLFNQHVVRIWKHDQQXODUSODWHVVKDOOEHLQDFFRUGDQFHZLWK$3,7DEOHDRU
ESOXVDQ\VSHFLILHGFRUURVLRQDOORZDQFH,QWHUSRODWLRQLVDOORZHGZLWKLQ$3,7DEOHDRUEEDVHGRQVKHOO
VWUHVVGHWHUPLQHGSHU1RWHERI$3,7DEOH
)RUWDQNVWKDWXWLOL]HWKLFNHQHGDQQXODUSODWHVIRUVHLVPLFFRQVLGHUDWLRQVDVHLVPLFHYDOXDWLRQVKDOOEH
SHUIRUPHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKHDVEXLOWVWDQGDUGXVLQJWKHDFWXDOWKLFNQHVVRIWKHH[LVWLQJ
DQQXODUSODWH
)RUWKHWKLFNQHVVDQGSURMHFWLRQRIWKHDQQXODUSODWHEH\RQGWKHVKHOOVHH 7DEOH²%RWWRP3ODWH0LQLPXP7KLFNQHVV
0LQLPXP%RWWRP
3ODWH7KLFNQHVVDW
1H[W,QVSHFWLRQ
LQ
7DQN%RWWRP
)RXQGDWLRQ'HVLJQ
7DQNERWWRPIRXQGDWLRQGHVLJQZLWKQRPHDQV
IRUGHWHFWLRQDQGFRQWDLQPHQWRIDERWWRPOHDN
7DQNERWWRPIRXQGDWLRQGHVLJQZLWKPHDQVWR
SURYLGHGHWHFWLRQDQGFRQWDLQPHQWRIDERWWRP
OHDN
$SSOLHGWDQNERWWRPUHLQIRUFHGOLQLQJ
!LQWKLFNLQDFFRUGDQFHZLWK
$3,
$3,67$1'$5' 7DEOH²$QQXODU%RWWRP3ODWH7KLFNQHVVHV LQ 3URGXFW6SHFLILF*UDYLW\
3ODWH7KLFNQHVVD
RI)LUVW6KHOO
&RXUVH
LQ
6WUHVVELQ)LUVW6KHOO&RXUVH
OEILQ
t d
t d
t d
t d
t !
127( 7KH WKLFNQHVVHV VSHFLILHG LQ WKH WDEOH DUH EDVHG RQ WKH IRXQGDWLRQ
SURYLGLQJ D XQLIRUP VXSSRUW XQGHU WKH IXOO ZLGWK RI WKH DQQXODU SODWH 8QOHVV WKH
IRXQGDWLRQ LV SURSHUO\ FRPSDFWHG SDUWLFXODUO\ DW WKH LQVLGH RI D FRQFUHWH ULQJZDOO
VHWWOHPHQWZLOOSURGXFHDGGLWLRQDOVWUHVVHVLQWKHDQQXODUSODWH
D
E
3ODWHWKLFNQHVVUHIHUVWRWKHWDQNVKHOODVFRQVWUXFWHG
6WUHVVHVDUHFDOFXODWHGIURP>D H± @t
7DQN)RXQGDWLRQ(YDOXDWLRQ
*HQHUDO
7KH SULQFLSDO FDXVHV RI IRXQGDWLRQ GHWHULRUDWLRQ DUH VHWWOHPHQW HURVLRQ FUDFNLQJ DQG GHWHULRUDWLRQ RI
FRQFUHWH LQLWLDWHG E\ FDOFLQLQJ DWWDFN E\ XQGHUJURXQG ZDWHU DWWDFN E\ IURVW DQG DWWDFN E\ DONDOLHV DQG DFLGV7R
HQVXUHVXLWDELOLW\IRUVHUYLFHDOOWDQNIRXQGDWLRQVVKDOOEHLQVSHFWHGSHULRGLFDOO\ VHH 6RPHPHFKDQLVPVRIFRQFUHWHGHWHULRUDWLRQDUHEULHIO\GHVFULEHGEHORZ
D &DOFLQLQJ ORVVRIZDWHURIK\GUDWLRQ FDQRFFXUZKHQFRQFUHWHKDVEHHQH[SRVHGWRVXIILFLHQWO\KLJKWHPSHUDWXUH
IRUDSHULRGRIWLPH'XULQJLQWHUPHGLDWHFRROLQJSHULRGVWKHFRQFUHWHFDQDEVRUEPRLVWXUHVZHOOORVHLWVVWUHQJWK
DQGFUDFN
E 'HWHULRUDWLRQRIFRQFUHWHH[SRVHGWRXQGHUJURXQGZDWHUFDQEHFDXVHGE\FKHPLFDODWWDFNE\F\FOLFFKDQJHVLQ
WHPSHUDWXUHDQGE\IUHH]LQJPRLVWXUH
F ([SDQVLRQ RI IUHH]LQJ PRLVWXUH LQ SRURXV FRQFUHWH RU LQ FRQFUHWH ZLWK PLQRU VHWWOHPHQW FUDFNV RU WHPSHUDWXUH
FUDFNVFDQUHVXOWLQVSDOOLQJDQGRUWKHGHYHORSPHQWRIVHULRXVVWUXFWXUDOFUDFNV
G 6XOIDWHW\SHDONDOLHVDQGWRDOHVVHUH[WHQWFKORULGHVFDQDFWFRUURVLYHO\WRGHVWUR\WKHERQGRIWKHFRQFUHWH
H 7HPSHUDWXUHFUDFNV KDLUOLQHFUDFNVRIXQLIRUPZLGWK GRQRWVHULRXVO\DIIHFWWKHVWUHQJWKRIWKHFRQFUHWHIRXQGDWLRQ
VWUXFWXUH KRZHYHU WKHVH FUDFNV FDQ EH SRWHQWLDO DFFHVV SRLQWV IRU PRLVWXUH RU ZDWHU VHHSDJH WKDW FRXOG
HYHQWXDOO\UHVXOWLQFRUURVLRQRIWKHUHLQIRUFLQJVWHHO
:KHQDWDQNLVWREHXVHGLQHOHYDWHGWHPSHUDWXUH>!q& q) @VHUYLFHWKHSURYLVLRQVRI$3,
6HFWLRQ%VKDOOEHFRQVLGHUHGLQWKHHYDOXDWLRQRIWKHVXLWDELOLW\IRUVHUYLFHRIWKHWDQNIRXQGDWLRQ
)RXQGDWLRQ5HSDLURU5HSODFHPHQW
,IWKHUHLVDQHHGIRUIRXQGDWLRQUHSODFHPHQWRULQVWDOODWLRQWKHQHZIRXQGDWLRQHOHYDWLRQSURILOHPXVW
PHHWWKHWROHUDQFHLQ$OWHUQDWLYHO\LIWKHQHZIRXQGDWLRQLVWREHFRQVWUXFWHGXSWRWKHERWWRPFKDQJLQJ
WKH OHYHOQHVV RI WKH WDQN LV QRW UHTXLUHG LI UHYLHZHG DQG DSSURYHG E\ D VWRUDJH WDQN HQJLQHHU FRQVLGHULQJ WKH
SOXPEQHVVRIWKHVKHOOSUHVHQFHRUDEVHQFHRIVKHOOGLVWRUWLRQDQGRULJLQDOFRQVWUXFWLRQOHYHOQHVVZKLFKZDUUDQW
OHDYLQJWKHWDQNDWWKHFXUUHQWVWDWHRIOHYHOQHVV
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
&RQFUHWHSDGVULQJZDOOVDQGSLHUVVKRZLQJHYLGHQFHRIVSDOOLQJVWUXFWXUDOFUDFNVRUJHQHUDOGHWHULRUDWLRQ
VKDOOEHUHSDLUHGWRSUHYHQWZDWHUIURPHQWHULQJWKHFRQFUHWHVWUXFWXUHDQGFRUURGLQJWKHUHLQIRUFLQJVWHHO
$QFKRU%ROWV
'LVWRUWLRQ RI DQFKRU EROWV DQG H[FHVVLYH FUDFNLQJ RI WKH FRQFUHWH VWUXFWXUHV LQ ZKLFK WKH\ DUH HPEHGGHG PD\ EH
LQGLFDWLRQVRIHLWKHUVHULRXVIRXQGDWLRQVHWWOHPHQWRUDWDQNRYHUSUHVVXUHXSOLIWFRQGLWLRQ
6HFWLRQ²%ULWWOH)UDFWXUH&RQVLGHUDWLRQV
*HQHUDO
7KLV VHFWLRQ SURYLGHV D SURFHGXUH IRU WKH DVVHVVPHQW RI H[LVWLQJ WDQNV IRU VXLWDELOLW\ IRU FRQWLQXHG RSHUDWLRQ RU
FKDQJHRIVHUYLFHZLWKUHVSHFWWRWKHULVNRIEULWWOHIUDFWXUHDQGGRHVQRWVXSSOHPHQWRUUHSODFHWKHUHTXLUHPHQWVRI
6HFWLRQIRUWKHH[DPLQDWLRQDQGWHVWLQJIRUWKHK\GURVWDWLFWHVWLQJRIUHSDLUHGPRGLILHGRUUHFRQVWUXFWHGWDQNV
7KHSURFHGXUHDSSOLHVWRERWKZHOGHGDQGULYHWHGWDQNVKRZHYHUWKHSURFHGXUHLVEDVHGSULPDULO\RQH[SHULHQFH
DQGGDWDREWDLQHGIURPZHOGHGWDQNV
%DVLF&RQVLGHUDWLRQV
$GHFLVLRQWUHH VHH)LJXUH LVXVHGWRSUHVHQWWKHDVVHVVPHQWSURFHGXUHIRUIDLOXUHGXHWREULWWOHIUDFWXUH
7KHGHFLVLRQWUHHLVEDVHGRQWKHIROORZLQJSULQFLSOHV
,QDOOUHSRUWHGLQFLGHQWVRIWDQNIDLOXUHGXHWREULWWOHIUDFWXUHIDLOXUHRFFXUUHGHLWKHUVKRUWO\DIWHUHUHFWLRQGXULQJ
K\GURVWDWLFWHVWLQJRURQWKHILUVWILOOLQJLQFROGZHDWKHUDIWHUDFKDQJHWRORZHUWHPSHUDWXUHVHUYLFHRUDIWHUDUHSDLU
DOWHUDWLRQ7KLVH[SHULHQFHVKRZVWKDWRQFHDWDQNKDVGHPRQVWUDWHGWKHDELOLW\WRZLWKVWDQGWKHFRPELQHGHIIHFWVRI
PD[LPXPOLTXLGOHYHO KLJKHVW VWUHVVHV DQGORZHVWRSHUDWLQJWHPSHUDWXUHZLWKRXWIDLOLQJ WKHULVNRIIDLOXUH GXH WR
EULWWOHIUDFWXUHZLWKFRQWLQXHGVHUYLFHLVPLQLPDO
$Q\FKDQJHLQVHUYLFHPXVWEHHYDOXDWHGWRGHWHUPLQHLILWLQFUHDVHVWKHULVNRIIDLOXUHGXHWREULWWOHIUDFWXUH,Q
WKHHYHQWRIDFKDQJHWRDPRUHVHYHUHVHUYLFH VXFKDVRSHUDWLQJDWDORZHUWHPSHUDWXUHRUKDQGOLQJSURGXFWDWD
KLJKHUVSHFLILFJUDYLW\ LWLVQHFHVVDU\WRFRQVLGHUWKHQHHGIRUDK\GURVWDWLFWHVWWRGHPRQVWUDWHILWQHVVIRUDQHZ
PRUHVHYHUHVHUYLFH7KHIROORZLQJDVSHFWVVKRXOGEHFRQVLGHUHG
D WKHOLNHOLKRRGRIUHSDLUVDOWHUDWLRQVVLQFHWKHRULJLQDOK\GURVWDWLFWHVWQRWPHHWLQJUHTXLUHPHQWVRIWKLVVWDQGDUG
E GHWHULRUDWLRQRIWKHWDQNVLQFHRULJLQDOK\GURVWDWLFWHVW
$VVHVVPHQW3URFHGXUH
7KHDVVHVVPHQWSURFHGXUHLOOXVWUDWHGLQ)LJXUHVKDOOEHXVHG(DFKRIWKHNH\VWHSVQXPEHUHGWKURXJK
RQWKHGHFLVLRQWUHHFRUUHVSRQGVHTXHQWLDOO\WRWKHH[SODQDWLRQVSURYLGHGEHORZ
Step 1—7KHWDQNPHHWVWKHUHTXLUHPHQWVRI$3, 6HYHQWK(GLWLRQRUODWHU RU$3,$SSHQGL[* )LIWK
DQG6L[WK(GLWLRQV WRPLQLPL]HWKHULVNRIIDLOXUHGXHWREULWWOHIUDFWXUH$OWHUQDWLYHO\WDQNVPD\DOVREHVKRZQWRPHHW
WKH WRXJKQHVV UHTXLUHPHQWV RI $3, 6HYHQWK (GLWLRQ RU ODWHU E\ LPSDFW WHVWLQJ FRXSRQ VDPSOHV IURP D
UHSUHVHQWDWLYHQXPEHURIVKHOOSODWHV
Step 2²0DQ\ WDQNV WKDW FRQWLQXH WR RSHUDWH VXFFHVVIXOO\ LQ WKH VDPH VHUYLFH ZHUH QRW EXLOW WR WKH
UHTXLUHPHQWVRI$3, VHHHGLWLRQVDQGDSSHQGLFHVQDPHGLQ 7KHVHWDQNVDUHSRWHQWLDOO\VXVFHSWLEOHWR
IDLOXUHGXHWREULWWOHIUDFWXUHDQGUHTXLUHDQDVVHVVPHQWDVLOOXVWUDWHGE\WKHGHFLVLRQWUHH
Step 3²)RUWKHSXUSRVHRIWKLVDVVHVVPHQWK\GURVWDWLFWHVWLQJGHPRQVWUDWHVILWQHVVIRUFRQWLQXHGVHUYLFH
ZLWKPLQLPDOULVNRIIDLOXUHGXHWREULWWOHIUDFWXUHSURYLGHGWKDWDOOJRYHUQLQJUHTXLUHPHQWVIRUUHSDLUVDOWHUDWLRQV
UHFRQVWUXFWLRQRUFKDQJHLQVHUYLFHDUHLQDFFRUGDQFHZLWKWKLVVWDQGDUG LQFOXGLQJDQHHGIRUK\GURVWDWLFWHVWLQJ
DIWHUPDMRUUHSDLUVPDMRUDOWHUDWLRQVRUUHFRQVWUXFWLRQ 7KHHIIHFWLYHQHVVRIWKHK\GURVWDWLFWHVWLQGHPRQVWUDWLQJ
ILWQHVVIRUFRQWLQXHGVHUYLFHLVVKRZQE\LQGXVWU\H[SHULHQFH
NOTE This does not
exempt tanks from other
hydrotest requirements
stipulated in this standard.
Change in service
11
Tank does not
meet API 650
(1980) or API 650,
Appendix G
(5th or 6th Edition).
2
Tank meets API 650
(7th Edition or later)
or API 650,
Appendix G
(5th or 6th Edition).
1
Yes
No
Yes
Tank
thickness
0.5 in. or below
?
4
Continue to use
Use
Use
No
Yes
No
Use
Continue to use
Yes
Operates
at
metal
temperature
above
60 ºF
?
Does tank
meet the
requirements
of API 650
or equal?
No
Use
5
)LJXUH ²%ULWWOH)UDFWXUH&RQVLGHUDWLRQV
Yes
Is service
more severe?
(See note)
Prior
hydro
demonstrates
fitness for
continued
service
?
3
No
Tank
continues
to operate
in same
service
?
Yes
3
No
Use
7
Yes
Tank
continues
to operate
in same
service
?
No
No
Use
Yes
Meets
API 653?
Tank
steel exempt
from impact
testing API 650
Table 4-1a or 4-1b
or API 653
Fig. 5.2?
Hydrotest to
demonstrate
fitness for
continued
service
Yes
Membrane
stress
below
7 ksi
?
6
Alterations,
repairs and
reconstruction
10
8
Yes
No
Use
9
Yes
Continue to use
Rerate tank based
on prior operating
history
Ɣ5HVWULFWILOOKHLJKW
Ɣ5HVWULFWPLQLPXP
metal temperature
Ɣ&RPELQDWLRQRIERWK
Tank
full
at lowest
one day
temperature per
API 650
Fig. 4-2?
Use
$3,67$1'$5'
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
Step 4²,IDWDQNVKHOOWKLFNQHVVLVQRJUHDWHUWKDQLQWKHULVNRIIDLOXUHGXHWREULWWOHIUDFWXUHLVPLQLPDO
SURYLGHGWKDWDQHYDOXDWLRQIRUVXLWDELOLW\RIVHUYLFHLQDFFRUGDQFHZLWK6HFWLRQKDVEHHQSHUIRUPHG7KHRULJLQDO
QRPLQDOWKLFNQHVVIRUWKHWKLFNHVWWDQNVKHOOSODWHVKDOOEHXVHGIRUWKLVDVVHVVPHQW
Step 5²1RNQRZQWDQNIDLOXUHVGXHWREULWWOHIUDFWXUHKDYHRFFXUUHGDWVKHOOPHWDOWHPSHUDWXUHVRIƒ)RU
DERYH6LPLODUDVVXUDQFHDJDLQVWEULWWOHIUDFWXUHFDQEHJDLQHGE\LQFUHDVLQJWKHPHWDOWHPSHUDWXUHE\KHDWLQJWKH
WDQNFRQWHQWV
Step 6²,QGXVWU\H[SHULHQFHDQGODERUDWRU\WHVWVKDYHVKRZQWKDWDPHPEUDQHVWUHVVLQWDQNVKHOOSODWHVRIDW
OHDVWNVLLVUHTXLUHGWRFDXVHIDLOXUHGXHWREULWWOHIUDFWXUH
Step 7²7DQNVFRQVWUXFWHGIURPVWHHOVOLVWHGLQ)LJXUHVDRUERI$3,FDQEHXVHGLQDFFRUGDQFH
ZLWKWKHLUH[HPSWLRQFXUYHVSURYLGHGWKDWDQHYDOXDWLRQIRUVXLWDELOLW\RIVHUYLFHLQFRQIRUPDQFHZLWK6HFWLRQRIWKLV
VWDQGDUGKDVEHHQSHUIRUPHG$GGLWLRQDOO\WDQNVFRQVWUXFWHGLQDFFRUGDQFHZLWKDQRWKHUQDWLRQDOO\UHFRJQL]HGFRGH
RUVWDQGDUG FRQWDLQLQJWRXJKQHVVUXOHV VXFK DV$3, PD\ EHXVHG LQ DFFRUGDQFHZLWK WKH FXUUHQW WRXJKQHVV
UXOHV RI WKDW VWDQGDUG 7DQNV IDEULFDWHG IURP VWHHOV RI XQNQRZQ PDWHULDO VSHFLILFDWLRQV WKLFNHU WKDQ LQ DQG
RSHUDWLQJDWDVKHOOPHWDOWHPSHUDWXUHEHORZƒ)FDQEHXVHGLIWKHWDQNPHHWVWKHUHTXLUHPHQWVRI)LJXUH7KH
RULJLQDOQRPLQDOWKLFNQHVVIRUWKLFNHVWWDQNVKHOOSODWHVKDOOEHXVHGIRUWKHDVVHVVPHQW)RUXQKHDWHGWDQNVWKHVKHOO
PHWDOWHPSHUDWXUHVKDOOEHWKHGHVLJQPHWDOWHPSHUDWXUHDVGHILQHGLQ$3,6HFWLRQ
Step 8²7KHULVNRIIDLOXUHGXHWREULWWOHIUDFWXUHLVPLQLPDORQFHDWDQNKDVGHPRQVWUDWHGWKDWLWFDQRSHUDWHDW
D VSHFLILHG PD[LPXP OLTXLG OHYHO DW WKH ORZHVW H[SHFWHG WHPSHUDWXUH ZLWKRXW IDLOLQJ )RU WKH SXUSRVH RI WKLV
DVVHVVPHQWWKHORZHVWH[SHFWHGWHPSHUDWXUHLVGHILQHGDVWKHORZHVWRQHGD\PHDQWHPSHUDWXUHDVVKRZQLQ$3,
)LJXUH,WLVQHFHVVDU\WRFKHFNWDQNORJUHFRUGVDQGPHWHRURORJLFDOUHFRUGVWRHQVXUHWKDWWKHWDQNKDG
RSHUDWHGDWWKHVSHFLILHGPD[LPXPOLTXLGOHYHOZKHQWKHGD\PHDQWHPSHUDWXUHZDVDVORZDVVKRZQLQ$3,
)LJXUH
70
Safe for use
60
Shell metal temperature, °F
50
Additional assessment required
40
Safe for use
30
20
10
0
0.0
0.5
1.0
Shell thickness (in.)
1.5
2.0
NOTE For unheated tanks, the shell metal temperature shall equal the design
metal temperature as defined in API 650, Section 3.4. The original nominal
thickness for the thickest tank shell plate shall be used for the assessment.
)LJXUH ²([HPSWLRQ&XUYHIRU7DQNV&RQVWUXFWHGIURP&DUERQ6WHHORI8QNQRZQ0DWHULDO6SHFLILFDWLRQ
$3,67$1'$5'
Step 9²$Q HYDOXDWLRQ FDQ EH SHUIRUPHG WR HVWDEOLVK D VDIH RSHUDWLQJ HQYHORSH IRU D WDQN EDVHG RQ WKH
RSHUDWLQJ KLVWRU\ 7KLV HYDOXDWLRQ VKDOO EH EDVHG RQ WKH PRVW VHYHUH FRPELQDWLRQ RI WHPSHUDWXUH DQG OLTXLG OHYHO
H[SHULHQFHG E\ WKH WDQN GXULQJ LWV OLIH 7KH HYDOXDWLRQ PD\ VKRZ WKDW WKH WDQN QHHGV WR EH UHUDWHG RU RSHUDWHG
GLIIHUHQWO\VHYHUDORSWLRQVH[LVW
D UHVWULFWWKHOLTXLGOHYHO
E UHVWULFWWKHPLQLPXPPHWDOWHPSHUDWXUH
F FKDQJHWKHVHUYLFHWRDVWRUHGSURGXFWZLWKDORZHUVSHFLILFJUDYLW\
G FRPELQDWLRQVRI,WHPVD E DQGF DERYH
7KHRZQHURSHUDWRUFDQDOVRPDNHDPRUHULJRURXVDQDO\VLVWRGHWHUPLQHWKHULVNRIIDLOXUHGXHWREULWWOHIUDFWXUHE\
SHUIRUPLQJ D IUDFWXUH PHFKDQLFV DQDO\VLV EDVHG RQ HVWDEOLVKHG SULQFLSOHV DQG SUDFWLFHV 7KH SURFHGXUHV DQG
DFFHSWDQFHFULWHULDIRUFRQGXFWLQJDQDOWHUQDWLYHDQDO\VLVDUHQRWLQFOXGHGLQWKLVVWDQGDUG
Step 10²$OOUHSDLUVDOWHUDWLRQVDQGUHORFDWLRQVVKDOOEHPDGHLQFRPSOLDQFHZLWKWKLVVWDQGDUG
Step 11²$QDVVHVVPHQWVKDOOEHPDGHWRGHWHUPLQHLIWKHFKDQJHLQVHUYLFHSODFHVWKHWDQNDWJUHDWHUULVNRI
IDLOXUHGXHWREULWWOHIUDFWXUH7KHVHUYLFHFDQEHFRQVLGHUHGPRUHVHYHUHDQGFUHDWHDJUHDWHUULVNRIEULWWOHIUDFWXUHLIWKH
VHUYLFHWHPSHUDWXUHLVUHGXFHG HJFKDQJLQJIURPKHDWHGRLOVHUYLFHWRDPELHQWWHPSHUDWXUHSURGXFW RUWKHSURGXFWLV
FKDQJHGWRRQHZLWKDJUHDWHUVSHFLILFJUDYLW\DQGWKXVLQFUHDVHGVWUHVVHV
6HFWLRQ²,QVSHFWLRQ
*HQHUDO
3HULRGLFLQVHUYLFHLQVSHFWLRQRIWDQNVVKDOOEHSHUIRUPHGDVGHILQHGKHUHLQ7KHSXUSRVHRIWKLVLQVSHFWLRQLVWRDVVXUH
FRQWLQXHGWDQNLQWHJULW\,QVSHFWLRQVRWKHUWKDQWKRVHGHILQHGLQVKDOOEHGLUHFWHGE\DQDXWKRUL]HGLQVSHFWRU
,QVSHFWLRQ)UHTXHQF\&RQVLGHUDWLRQV
6HYHUDOIDFWRUVPXVWEHFRQVLGHUHGWRGHWHUPLQHLQVSHFWLRQLQWHUYDOVIRUVWRUDJHWDQNV7KHVHLQFOXGHEXWDUH
QRWOLPLWHGWRWKHIROORZLQJ
D WKHQDWXUHRIWKHSURGXFWVWRUHG
E WKHUHVXOWVRIYLVXDOPDLQWHQDQFHFKHFNV
F FRUURVLRQDOORZDQFHVDQGFRUURVLRQUDWHV
G FRUURVLRQSUHYHQWLRQV\VWHPV
H FRQGLWLRQVDWSUHYLRXVLQVSHFWLRQV
I WKHPHWKRGVDQGPDWHULDOVRIFRQVWUXFWLRQDQGUHSDLU
J WKHORFDWLRQRIWDQNVVXFKDVWKRVHLQLVRODWHGRUKLJKULVNDUHDV
K WKHSRWHQWLDOULVNRIDLURUZDWHUSROOXWLRQ
L OHDNGHWHFWLRQV\VWHPV
M FKDQJHLQRSHUDWLQJPRGH HJIUHTXHQF\RIILOOF\FOLQJIUHTXHQWJURXQGLQJRIIORDWLQJURRIVXSSRUWOHJV N MXULVGLFWLRQDOUHTXLUHPHQWV
O FKDQJHVLQVHUYLFH LQFOXGLQJFKDQJHVLQZDWHUERWWRPV P WKHH[LVWHQFHRIDGRXEOHERWWRPRUDUHOHDVHSUHYHQWLRQEDUULHU
7KHLQWHUYDOEHWZHHQLQVSHFWLRQVRIDWDQN ERWKLQWHUQDODQGH[WHUQDO VKRXOGEHGHWHUPLQHGE\LWVVHUYLFH
KLVWRU\XQOHVVVSHFLDOUHDVRQVLQGLFDWHWKDWDQHDUOLHULQVSHFWLRQPXVWEHPDGH$KLVWRU\RIWKHVHUYLFHRIDJLYHQ
WDQNRUDWDQNLQVLPLODUVHUYLFH SUHIHUDEO\DWWKHVDPHVLWH VKRXOGEHDYDLODEOHVRWKDWFRPSOHWHLQVSHFWLRQVFDQEH
VFKHGXOHG ZLWK D IUHTXHQF\ FRPPHQVXUDWH ZLWK WKH FRUURVLRQ UDWH RI WKH WDQN 2QVWUHDP QRQGHVWUXFWLYH
H[DPLQDWLRQPHWKRGVVKDOOEHFRQVLGHUHGZKHQHVWDEOLVKLQJLQVSHFWLRQIUHTXHQFLHV
-XULVGLFWLRQDO UHJXODWLRQV LQ VRPH FDVHV FRQWURO WKH IUHTXHQF\ DQG LQWHUYDO RI WKH LQVSHFWLRQV 7KHVH
UHJXODWLRQV PD\ LQFOXGH YDSRU ORVV UHTXLUHPHQWV VHDO FRQGLWLRQ OHDNDJH SURSHU GLNLQJ DQG UHSDLU SURFHGXUHV
.QRZOHGJHRIVXFKUHJXODWLRQVLVQHFHVVDU\WRHQVXUHFRPSOLDQFHZLWKVFKHGXOLQJDQGLQVSHFWLRQUHTXLUHPHQWV
,QVSHFWLRQVIURPWKH2XWVLGHRIWKH7DQN
5RXWLQH,QVHUYLFH,QVSHFWLRQV
7KHH[WHUQDOFRQGLWLRQRIWKHWDQNVKDOOEHPRQLWRUHGE\FORVHYLVXDOLQVSHFWLRQIURPWKHJURXQGRQDURXWLQH
EDVLV 7KLV LQVSHFWLRQ PD\ EH GRQH E\ RZQHURSHUDWRU SHUVRQQHO DQG FDQ EH GRQH E\ RWKHU WKDQ DXWKRUL]HG
$3,67$1'$5'
LQVSHFWRUV DV GHILQHG LQ 3HUVRQQHO SHUIRUPLQJ WKLV LQVSHFWLRQ VKRXOG EH NQRZOHGJHDEOH RI WKH VWRUDJH IDFLOLW\
RSHUDWLRQVWKHWDQNDQGWKHFKDUDFWHULVWLFVRIWKHSURGXFWVWRUHG
7KHLQWHUYDORIVXFKLQVSHFWLRQVVKDOOEHFRQVLVWHQWZLWKFRQGLWLRQVDWWKHSDUWLFXODUVLWHEXWVKDOOQRWH[FHHG
RQHPRQWK
7KLVURXWLQHLQVHUYLFHLQVSHFWLRQVKDOOLQFOXGHDYLVXDOLQVSHFWLRQRIWKHWDQN¶VH[WHULRUVXUIDFHV(YLGHQFHRI
OHDNV VKHOO GLVWRUWLRQV VLJQV RI VHWWOHPHQW FRUURVLRQ DQG FRQGLWLRQ RI WKH IRXQGDWLRQ SDLQW FRDWLQJV LQVXODWLRQ
V\VWHPVDQGDSSXUWHQDQFHVVKRXOGEHGRFXPHQWHGIRUIROORZXSDFWLRQE\DQDXWKRUL]HGLQVSHFWRU
([WHUQDO,QVSHFWLRQ
$OO WDQNV VKDOO EH JLYHQ D YLVXDO H[WHUQDO LQVSHFWLRQ E\ DQ DXWKRUL]HG LQVSHFWRU 7KLV LQVSHFWLRQ VKDOO EH
FDOOHGWKHH[WHUQDOLQVSHFWLRQDQGPXVWEHFRQGXFWHGDWOHDVWHYHU\ILYH\HDUVRU
\HDUV ZKHUH
LVWKH
GLIIHUHQFH EHWZHHQ WKH PHDVXUHG VKHOO WKLFNQHVV DQG WKH PLQLPXP UHTXLUHG WKLFNQHVV LQ PLOV DQG LV WKH VKHOO
FRUURVLRQUDWHLQPLOVSHU\HDU ZKLFKHYHULVOHVV7DQNVPD\EHLQRSHUDWLRQGXULQJWKLVLQVSHFWLRQ
,QVXODWHGWDQNVQHHGWRKDYHLQVXODWLRQUHPRYHGRQO\WRWKHH[WHQWQHFHVVDU\WRGHWHUPLQHWKHFRQGLWLRQRI
WKHH[WHULRUZDOORIWKHWDQNRUWKHURRI
7DQNJURXQGLQJV\VWHPFRPSRQHQWVVXFKDVVKXQWVRUPHFKDQLFDOFRQQHFWLRQVRIFDEOHVVKDOOEHYLVXDOO\
FKHFNHG5HFRPPHQGHGSUDFWLFHVGHDOLQJZLWKWKHSUHYHQWLRQRIK\GURFDUERQLJQLWLRQDUHFRYHUHGE\$3,
8OWUDVRQLF7KLFNQHVV,QVSHFWLRQ
([WHUQDOXOWUDVRQLFWKLFNQHVVPHDVXUHPHQWVRIWKHVKHOOFDQEHDPHDQVRIGHWHUPLQLQJDUDWHRIXQLIRUP
JHQHUDOFRUURVLRQZKLOHWKHWDQNLVLQVHUYLFHDQGFDQSURYLGHDQLQGLFDWLRQRIWKHLQWHJULW\RIWKHVKHOO7KHH[WHQWRI
VXFKPHDVXUHPHQWVVKDOOEHGHWHUPLQHGE\WKHRZQHURSHUDWRU
:KHQXVHGWKHXOWUDVRQLFWKLFNQHVVPHDVXUHPHQWVVKDOOEHPDGHDWLQWHUYDOVQRWWRH[FHHGWKHIROORZLQJ
D :KHQWKHFRUURVLRQUDWHLVQRWNQRZQWKHPD[LPXPLQWHUYDOVKDOOEHILYH\HDUV&RUURVLRQUDWHVPD\EHHVWLPDWHG
IURPWDQNVLQVLPLODUVHUYLFHEDVHGRQWKLFNQHVVPHDVXUHPHQWVWDNHQDWDQLQWHUYDOQRWH[FHHGLQJILYH\HDUV
E :KHQWKHFRUURVLRQUDWHLVNQRZQWKHPD[LPXPLQWHUYDOVKDOOEHWKHVPDOOHURI
\HDUV ZKHUH
LVWKH
GLIIHUHQFHEHWZHHQWKHPHDVXUHGVKHOOWKLFNQHVVDQGWKHPLQLPXPUHTXLUHGWKLFNQHVVLQPLOVDQG LVWKHVKHOO
FRUURVLRQUDWHLQPLOVSHU\HDU RU\HDUV
,QWHUQDOLQVSHFWLRQRIWKH WDQNVKHOO ZKHQ WKHWDQN LV RXW RIVHUYLFHFDQEH VXEVWLWXWHG IRU DSURJUDP RI
H[WHUQDO XOWUDVRQLF WKLFNQHVV PHDVXUHPHQW LI WKH LQWHUQDO LQVSHFWLRQ LQWHUYDO LV HTXDO WR RU OHVV WKDQ WKH LQWHUYDO
UHTXLUHGLQE &DWKRGLF3URWHFWLRQ6XUYH\V
:KHUHH[WHULRUWDQNERWWRPFRUURVLRQLVFRQWUROOHGE\DFDWKRGLFSURWHFWLRQV\VWHPSHULRGLFVXUYH\VRIWKH
V\VWHPVKDOOEHFRQGXFWHGLQDFFRUGDQFHZLWK$3,7KHRZQHURSHUDWRUVKDOOUHYLHZWKHVXUYH\UHVXOWV
7KHRZQHURSHUDWRUVKDOODVVXUHFRPSHWHQF\RISHUVRQQHOSHUIRUPLQJVXUYH\V
,QWHUQDO,QVSHFWLRQ
*HQHUDO
,QWHUQDOLQVSHFWLRQLVSULPDULO\UHTXLUHGWRGRDVIROORZV
D (QVXUHWKDWWKHERWWRPLVQRWVHYHUHO\FRUURGHGDQGOHDNLQJ
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
E *DWKHU WKH GDWD QHFHVVDU\ IRU WKH PLQLPXP ERWWRP DQG VKHOO WKLFNQHVV DVVHVVPHQWV GHWDLOHG LQ 6HFWLRQ $V
DSSOLFDEOHWKHVHGDWDVKDOODOVRWDNHLQWRDFFRXQWH[WHUQDOXOWUDVRQLFWKLFNQHVVPHDVXUHPHQWVPDGHGXULQJLQ
VHUYLFHLQVSHFWLRQV VHH F ,GHQWLI\DQGHYDOXDWHDQ\WDQNERWWRPVHWWOHPHQW
$OO WDQNV VKDOO KDYH D IRUPDO LQWHUQDO LQVSHFWLRQ FRQGXFWHG DW WKH LQWHUYDOV GHILQHG E\ 7KH
DXWKRUL]HGLQVSHFWRUVKDOOVXSHUYLVHRUFRQGXFWDYLVXDOH[DPLQDWLRQDQGDVVXUHWKHTXDOLW\DQGFRPSOHWHQHVVRI
WKH QRQGHVWUXFWLYH H[DPLQDWLRQ 1'( UHVXOWV ,I WKH LQWHUQDO LQVSHFWLRQ LV UHTXLUHG VROHO\ IRU WKH SXUSRVH RI
GHWHUPLQLQJWKHFRQGLWLRQDQGLQWHJULW\RIWKHWDQNERWWRPWKHLQWHUQDOLQVSHFWLRQPD\EHDFFRPSOLVKHGZLWKWKH
WDQN LQVHUYLFH XWLOL]LQJ YDULRXV XOWUDVRQLF URERWLF WKLFNQHVV PHDVXUHPHQW DQG RWKHU RQVWUHDP LQVSHFWLRQ
PHWKRGV FDSDEOH RI DVVHVVLQJ WKH WKLFNQHVV RI WKH WDQN ERWWRP LQ FRPELQDWLRQ ZLWK PHWKRGV FDSDEOH RI
DVVHVVLQJWDQNERWWRPLQWHJULW\DVGHVFULEHGLQ(OHFWURPDJQHWLFPHWKRGVPD\EHXVHGWRVXSSOHPHQWWKH
RQVWUHDPXOWUDVRQLFLQVSHFWLRQ,IDQLQVHUYLFHLQVSHFWLRQLVVHOHFWHGWKHGDWDDQGLQIRUPDWLRQFROOHFWHGVKDOOEH
VXIILFLHQW WR HYDOXDWH WKH WKLFNQHVV FRUURVLRQ UDWH DQG LQWHJULW\ RI WKH WDQN ERWWRP DQG HVWDEOLVK WKH LQWHUQDO
LQVSHFWLRQLQWHUYDOEDVHGRQWDQNERWWRPWKLFNQHVVFRUURVLRQUDWHDQGLQWHJULW\XWLOL]LQJWKHPHWKRGVLQFOXGHGLQ
WKLVVWDQGDUG
,QVSHFWLRQ,QWHUYDOV
,QLWLDODQGVXEVHTXHQWLQVSHFWLRQLQWHUYDOVVKDOOEHLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIDQG
)RUH[LVWLQJWDQNVWDQNRZQHURSHUDWRUVVKDOOUHYLHZWKHLQWHUQDOLQVSHFWLRQLQWHUYDODQGEHLQFRPSOLDQFHZLWKWKLV
VHFWLRQZLWKLQ\HDUVIURPGDWHRIILUVWSXEOLFDWLRQRI$3,)RXUWK(GLWLRQ$GGHQGXP-DQXDU\
,QLWLDO,QWHUQDO,QVSHFWLRQ,QWHUYDO
7KHLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDOVIRUQHZO\FRQVWUXFWHGWDQNVRUH[LVWLQJWDQNVZLWKDQHZO\LQVWDOOHGERWWRPVKDOO
EHHVWDEOLVKHGHLWKHUSHURU$OWHUQDWLYHO\WKHQH[WLQWHUQDO LQVSHFWLRQLQWHUYDOIRU H[LVWLQJWDQNV
ZKHUHDQHZERWWRPKDVEHHQLQVWDOOHGPD\EHGHWHUPLQHGSHULIDOOWKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG
D ,QVSHFWLRQGDWDKDVEHHQREWDLQHGIURPWKHSUHYLRXVWDQNERWWRP
E ,QVSHFWLRQGDWDREWDLQHGLVGHHPHGDSSOLFDEOHWRWKHQHZWDQNERWWRPRUFRUURVLRQUDWHV SURGXFWRUVRLOVLGH IRU
WKHQHZWDQNERWWRPDUHQRWH[SHFWHGWREHJUHDWHUWKDQWKHFRUURVLRQUDWHVRIWKHSUHYLRXVWDQNERWWRP
F &RUURVLRQ UDWH DSSOLFDELOLW\ WR WKH QHZ WDQN ERWWRP VKDOO EH YHULILHG E\ D VWRUDJH WDQN HQJLQHHU H[SHULHQFHG LQ
PDWHULDOVRUFRUURVLRQRUE\FRQVXOWLQJZLWKDSSURSULDWHVSHFLDOLVW
G 7KH RZQHURSHUDWRU VKDOO DJUHH DQG IROORZ WKH JXLGHOLQHV LQ LQ RUGHU WR XVH WKH VXEVHTXHQW LQWHUQDO
LQVSHFWLRQLQWHUYDODVWKHQH[WLQVSHFWLRQLQWHUYDOIRUWKHQHZWDQNERWWRP
7KHLQWHUYDOIURPLQLWLDOVHUYLFHGDWHXQWLOWKHILUVWLQWHUQDOLQVSHFWLRQVKDOOQRWH[FHHG\HDUVXQOHVVD
WDQNKDVRQHRUPRUHRIWKHOHDNSUHYHQWLRQGHWHFWLRQFRUURVLRQPLWLJDWLRQRUFRQWDLQPHQWVDIHJXDUGVOLVWHGLQ7DEOH
7KH PD[LPXP LQLWLDO LQWHUQDO LQVSHFWLRQ LQWHUYDO VKDOO EH EDVHG RQ \HDUV SOXV LQFUHPHQWDO FUHGLWV IRU WKH
DGGLWLRQDOVDIHJXDUGVLQ7DEOHZKLFKDUHFXPXODWLYH
7KHLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDOVKDOOQRWH[FHHG\HDUVIRUWDQNVZLWKRXWD5HOHDVH3UHYHQWLRQ%DUULHURU
\HDUVIRUWDQNVZLWKD5HOHDVH3UHYHQWLRQ%DUULHU
7KHOLPLWVRI7DEOHGRQRWDSSO\ZKHQHVWDEOLVKLQJWKHLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDOLQDFFRUGDQFHZLWK6HFWLRQ
DQG7DEOH
$3,67$1'$5'
7DEOH²7DQN6DIHJXDUG
7DQN6DIHJXDUG
$GGWR,QLWLDO,QWHUYDO
L )LEHUJODVVUHLQIRUFHGOLQLQJRIWKHSURGXFWVLGHRIWKHWDQNERWWRPLQVWDOOHGSHU$3,53
\UV
L ,QVWDOODWLRQRIDQLQWHUQDOWKLQILOPFRDWLQJDVLQVWDOOHGSHU$3,53
\UV
LLL &DWKRGLFSURWHFWLRQRIWKHVRLOVLGHRIWKHWDQNERWWRPLQVWDOOHGPDLQWDLQHGDQGLQVSHFWHG
SHU$3,53
\UV
LY 5HOHDVHSUHYHQWLRQEDUULHULQVWDOOHGSHU$3,$QQH[,
\UV
Y ,QLWLDOERWWRPWKLFNQHVV!LQ
YL%RWWRPFRQVWUXFWHGIURPVWDLQOHVVVWHHOPDWHULDOWKDWPHHWVUHTXLUHPHQWVRI$3,
$QQH[6&DQGHLWKHU$QQH[6RU$QQH[;DQGLQWHUQDODQGH[WHUQDOHQYLURQPHQWVKDYH
EHHQGHWHUPLQHGE\DTXDOLILHGFRUURVLRQVSHFLDOLVWWRSUHVHQWYHU\ORZULVNRIFUDFNLQJRU
FRUURVLRQIDLOXUH
,QLWLDOERWWRPWKLFNQHVVLQ FRUURVLRQUDWH
\UV
&RUURVLRQUDWHWREHPS\RUDVGHWHUPLQHGIURP$QQH[+6LPLODU6HUYLFH
)RUH[DPSOHWKHPD[LPXPLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDOIRUD LQWKLFNERWWRPWKDWKDVDUHOHDVHSUHYHQWLRQ
EDUULHUDQGDILEHUJODVVUHLQIRUFHGOLQLQJZRXOGEHGHWHUPLQHGDVIROORZV
&UHGLWIRULQLWLDOERWWRPWKLFNQHVV!LQ LQ±LQ LQ\HDU \HDUV
0D[LPXPLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDO \HDUV LQLWLDO \HDUV ILEHUJODVVUHLQIRUFHGOLQLQJ \HDUV
UHOHDVHSUHYHQWLRQEDUULHU \HDUV FUHGLWIRULQLWLDOERWWRPWKLFNQHVV!LQ \HDUV
$V DQ DOWHUQDWLYH WR HVWDEOLVKLQJ WKH LQLWLDO LQWHUYDO LQ DFFRUGDQFH ZLWK DQG 7DEOH WKH LQLWLDO
LQWHUQDOLQVSHFWLRQGDWHDQGUHDVVHVVPHQWFDQEHHVWDEOLVKHGXVLQJ5LVN%DVHG,QVSHFWLRQ 5%, DVVHVVPHQWSHU
7KHVHDVVHVVPHQWVPD\HVWDEOLVKDQLQLWLDOLQVSHFWLRQLQWHUYDOH[FHHGLQJ\HDUVEXWVKDOOQRWH[FHHG\HDUVIRU
WDQNVZLWKRXWD5HOHDVH3UHYHQWLRQ%DUULHURU\HDUVIRUWDQNVZLWKD5HOHDVH3UHYHQWLRQ%DUULHUH[FHSWDVIROORZV
,IDQ5%,DVVHVVPHQWKDVEHHQSHUIRUPHGWKHPD[LPXPLQLWLDOLQWHUQDOLQVSHFWLRQLQWHUYDOGRHVQRWDSSO\WRWDQNV
VWRULQJWKHIROORZLQJ
+LJKO\YLVFRXVVXEVWDQFHVZKLFKVROLGLI\DWWHPSHUDWXUHVEHORZ ƒ) VRPHH[DPSOHVRIWKHVHVXEVWDQFHV
DUHDVSKDOWURRILQJIOX[UHVLGXXPYDFXXPERWWRPVDQGUHGXFHGFUXGH RU
$Q\VXEVWDQFHRUPL[WXUHWKDWLV
D
QRW LGHQWLILHG RU UHJXODWHG HLWKHU DV D KD]DUGRXV FKHPLFDO RU PDWHULDO XQGHU WKH DSSOLFDEOH ODZV RI WKH
MXULVGLFWLRQDQG
E
WKDWWKHRZQHURSHUDWRUKDVGHWHUPLQHGZLOOQRWDGYHUVHO\LPSDFWVXUIDFHRUJURXQGZDWHUEH\RQGWKHIDFLOLW\
RUDIIHFWKXPDQKHDOWKRUWKHHQYLURQPHQW
6XEVHTXHQW,QWHUQDO,QVSHFWLRQ,QWHUYDO
7KHLQWHUYDOEHWZHHQVXEVHTXHQWLQWHUQDOLQVSHFWLRQVVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWKHLWKHUWKHFRUURVLRQUDWH
SURFHGXUHVRIRUWKHULVNEDVHGLQVSHFWLRQSURFHGXUHVDVRXWOLQHGLQ
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
7KHVXEVHTXHQWLQVSHFWLRQLQWHUYDO EH\RQGWKHLQLWLDOLQVSHFWLRQ FDQEHGHWHUPLQHGXVLQJWKHPHDVXUHG
WDQNERWWRPFRUURVLRQUDWHDQGWKHPLQLPXPUHPDLQLQJWKLFNQHVVLQDFFRUGDQFHZLWK'XULQJDQ\H[DPLQDWLRQWR
GHWHUPLQH FRUURVLRQ UDWHV WKH RZQHURSHUDWRU VKRXOG HQVXUH WKH\ XQGHUVWDQG WKH HIIHFWLYHQHVV RI WKH LQVSHFWLRQ
WHFKQLTXHVHPSOR\HGIRUGHWHFWLQJDQGPHDVXULQJSRWHQWLDOGDPDJHPHFKDQLVPV
:KHQFKDQJLQJVHUYLFHDQRZQHURSHUDWRUPD\GHFLGHWRXVHLQWHUQDOFRUURVLRQUDWHVREWDLQHGIURPVLPLODUVHUYLFH
DVVHVVPHQW SHUIRUPHGSHU$QQH[+ ZKHQVHWWLQJVXEVHTXHQWLQWHUQDOLQVSHFWLRQGDWHV
:KHQXVLQJWKHFRUURVLRQUDWHSURFHGXUHVRIWKHPD[LPXPVXEVHTXHQWLQWHUQDOLQVSHFWLRQLQWHUYDOVKDOOEH
\HDUVIRUWDQNVZLWKRXWD5HOHDVH3UHYHQWLRQ%DUULHURU\HDUVIRUWDQNVZLWKD5HOHDVH3UHYHQWLRQ%DUULHU
$QRZQHURSHUDWRUFDQHVWDEOLVKWKHVXEVHTXHQWLQWHUQDOLQVSHFWLRQLQWHUYDOXVLQJULVNEDVHGLQVSHFWLRQ
5%, SURFHGXUHVLQDFFRUGDQFHZLWK$3,53DQGWKHDGGLWLRQDOUHTXLUHPHQWVRIWKLVVHFWLRQ
7KH UHVXOWV RI WKH 5%, DVVHVVPHQW VKDOO EH XVHG WR HVWDEOLVK D WDQN LQVSHFWLRQ VWUDWHJ\ WKDW GHILQHV WKH PRVW
DSSURSULDWH LQVSHFWLRQ PHWKRGV DSSURSULDWH IUHTXHQF\ IRU LQWHUQDO H[WHUQDO DQG LQVHUYLFH LQVSHFWLRQV DQG
SUHYHQWLRQDQGPLWLJDWLRQVWHSVWRUHGXFHWKHOLNHOLKRRGDQGFRQVHTXHQFHRIWDQNOHDNDJHRUIDLOXUH
$Q 5%, DVVHVVPHQW VKDOO FRQVLVW RI D V\VWHPDWLF HYDOXDWLRQ RI ERWK WKH OLNHOLKRRG RI IDLOXUH DQG WKH DVVRFLDWHG
FRQVHTXHQFHV RI IDLOXUH LQ DFFRUGDQFH ZLWK$3, 53 7KH 5%, DVVHVVPHQW VKDOO EH WKRURXJKO\ GRFXPHQWHG
FOHDUO\GHILQLQJDOOIDFWRUVFRQWULEXWLQJWRERWKOLNHOLKRRGDQGFRQVHTXHQFHRIWDQNOHDNDJHRUIDLOXUH
7KH5%,DVVHVVPHQWVKDOOEHSHUIRUPHGE\DWHDPLQFOXGLQJLQVSHFWLRQDQGHQJLQHHULQJH[SHUWLVHNQRZOHGJHDEOHLQ
WKH SURSHU DSSOLFDWLRQ RI$3, 53 SULQFLSOHV WDQN GHVLJQ FRQVWUXFWLRQ DQG PRGHV RI GHWHULRUDWLRQ 7KH 5%,
DVVHVVPHQWVKDOOEHUHYLHZHGDQGDSSURYHGE\DWHDPDVDERYHDWLQWHUYDOVQRWWRH[FHHG\HDUVRUPRUHRIWHQLI
ZDUUDQWHGE\SURFHVVHTXLSPHQWRUFRQVHTXHQFHFKDQJHV
7KH DSSOLHG 5%, PHWKRGRORJ\ QRW HYHU\ LQGLYLGXDO DVVHVVPHQW VKDOO KDYH D GRFXPHQWHG YDOLGDWLRQ UHYLHZ WR
GHPRQVWUDWH WKDW LW KDV DOO WKH NH\ HOHPHQWV GHILQHG LQ$3, 53 DQG WKLV VHFWLRQ 7KH YDOLGDWLRQ VKRXOG EH
SHUIRUPHGE\DQHQWLW\H[WHUQDOWRWKH5%,DVVHVVPHQWWHDP
,I FRUURVLRQ UDWHV DUH EDVHG RQ SULRU LQVSHFWLRQV WKH\ VKDOO EH GHULYHG IURP HLWKHU KLJK RU PHGLXP LQVSHFWLRQ
HIIHFWLYHQHVVDVGHILQHGE\WKHRZQHURSHUDWRUSURFHGXUHV5HIHUWR$3,53IRUH[DPSOHVRIKLJKDQGPHGLXP
LQVSHFWLRQHIIHFWLYHQHVV&RUURVLRQUDWHVIURPORZLQVSHFWLRQHIIHFWLYHQHVVVXFKDVVSRW87VKDOOQRWEHXVHGLQWKH
5%,SURFHVV
$WDQNVKDOOEHUHPRYHGIURPVHUYLFHZKHQWKHULVNH[FHHGVWKHDFFHSWDEOHULVNFULWHULDHVWDEOLVKHGSHUWKHRZQHU
RSHUDWRUSURFHGXUH
127( $3,GRHVQRWUHFRPPHQGUXQQLQJWDQNERWWRPVWRIDLOXUHRURSHUDWLQJWDQNVLQGHILQLWHO\ZLWKNQRZQRUVXVSHFWHGERWWRP
OHDNV
/LNHOLKRRGIDFWRUVWKDWVKDOOEHHYDOXDWHGLQWDQN5%,DVVHVVPHQWVLQDGGLWLRQWRWKHOLNHOLKRRGIDFWRUVLQ
$3,53LQFOXGHEXWDUHQRWOLPLWHGWRWKHIROORZLQJ
D RULJLQDOWKLFNQHVVZHOGW\SHDQGDJHRIERWWRPSODWHV
E DQDO\VLV PHWKRGV XVHG WR GHWHUPLQH WKH SURGXFWVLGH VRLOVLGH DQG H[WHUQDO FRUURVLRQ UDWHV IRU ERWK VKHOO DQG
ERWWRPDQGWKHDFFXUDF\RIWKHPHWKRGVXVHG
F LQVSHFWLRQKLVWRU\LQFOXGLQJWDQNIDLOXUHGDWD
G VRLOUHVLVWLYLW\
H W\SHDQGGHVLJQTXDOLW\RIWDQNSDGFXVKLRQLQFOXGLQJTXDOLW\FRQWURODWFRQVWUXFWLRQ
$3,67$1'$5'
I ZDWHUGUDLQDJHIURPEHUPDUHD
J W\SHHIIHFWLYHQHVVRIFDWKRGLFSURWHFWLRQV\VWHPDQGPDLQWHQDQFHKLVWRU\
K RSHUDWLQJWHPSHUDWXUHV
L HIIHFWVRQLQWHUQDOFRUURVLRQUDWHVGXHWRSURGXFWVHUYLFH
M LQWHUQDOFRDWLQJOLQLQJOLQHUW\SHDJHDQGFRQGLWLRQ
N XVHRIVWHDPFRLOVDQGZDWHUGUDZRIIGHWDLOV
O TXDOLW\RIWDQNPDLQWHQDQFHLQFOXGLQJSUHYLRXVUHSDLUVDQGDOWHUDWLRQV
P GHVLJQFRGHVDQGVWDQGDUGVDQGWKHGHWDLOVXWLOL]HGLQWKHWDQNFRQVWUXFWLRQUHSDLUDQGDOWHUDWLRQ LQFOXGLQJWDQN
ERWWRPV Q PDWHULDOVRIFRQVWUXFWLRQ
R HIIHFWLYHQHVV RI DQ LQVSHFWLRQ LQFOXGHV H[DPLQDWLRQ PHWKRGV DQG VFRSH ZKLFK DUH WR EH GHWHUPLQHG E\ WKH
LQVSHFWRU
S IXQFWLRQDOIDLOXUHVVXFKDVIORDWLQJURRIVHDOVURRIGUDLQV\VWHPVHWF
T VHWWOHPHQWGDWD
U TXDOLW\ DVVXUDQFHFRQWURO GXULQJ WDQN FRQVWUXFWLRQ LQFOXGLQJ SDG FOHDQOLQHVV VORSH RI ERWWRP IRXQGDWLRQ
LQVWDOODWLRQGRFXPHQWUHFRUGVWRVKRZKRZWKHWDQNZDVEXLOWHWF
&RQVHTXHQFHIDFWRUVWKDWVKDOOEHHYDOXDWHGLQWDQN5%,DVVHVVPHQWVLQFOXGHEXWDUHQRWOLPLWHGWRWKH
IROORZLQJ
D
WDQN ERWWRP ZLWK D 5HOHDVH 3UHYHQWLRQ %DUULHU 53% GHWDLOV VLQJOH GRXEOH 53% LQWHUQDO UHLQIRUFHG OLQLQJV
HWF E
SURGXFWW\SHDQGYROXPH
F
PRGHRIIDLOXUH LHVORZOHDNWRWKHHQYLURQPHQWWDQNERWWRPUXSWXUHRUWDQNVKHOOEULWWOHIUDFWXUH G
LGHQWLILFDWLRQ RI HQYLURQPHQWDO UHFHSWRUV VXFK DV ZHWODQGV VXUIDFH ZDWHUV JURXQG ZDWHUV GULQNLQJ ZDWHU
DTXLIHUVDQGEHGURFN
H
GLVWDQFHWRHQYLURQPHQWDOUHFHSWRUV
I
HIIHFWLYHQHVVRIOHDNGHWHFWLRQV\VWHPVDQGWLPHWRGHWHFWLRQ
J
PRELOLW\RIWKHSURGXFWLQWKHHQYLURQPHQWLQFOXGLQJIRUUHOHDVHVWRVRLOSURGXFWYLVFRVLW\DQGVRLOSHUPHDELOLW\
K
VHQVLWLYLW\FKDUDFWHULVWLFVRIWKHHQYLURQPHQWDOUHFHSWRUVWRWKHSURGXFW
L
FRVWWRUHPHGLDWHSRWHQWLDOFRQWDPLQDWLRQ
M
FRVWWRFOHDQWDQNDQGUHSDLU
N
FRVWDVVRFLDWHGZLWKORVVRIXVH
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
O
LPSDFWRQSXEOLFVDIHW\DQGKHDOWK
P GLNHFRQWDLQPHQWFDSDELOLWLHV YROXPHDQGOHDNWLJKWQHVV $OWHUQDWLYHWR,QWHUQDO,QVSHFWLRQWR'HWHUPLQH%RWWRP7KLFNQHVV
,Q FDVHV ZKHUH FRQVWUXFWLRQ VL]H RU RWKHUDVSHFWV DOORZ H[WHUQDO DFFHVV WRWKH WDQN ERWWRP WRGHWHUPLQH ERWWRP
WKLFNQHVV DQ H[WHUQDO LQVSHFWLRQ LQ OLHX RI DQ LQWHUQDO LQVSHFWLRQ LV DOORZHG WR PHHW WKH GDWD UHTXLUHPHQWV RI
7DEOH +RZHYHU LQ WKHVH FDVHV FRQVLGHUDWLRQ RI RWKHU PDLQWHQDQFH LWHPV PD\ GLFWDWH LQWHUQDO LQVSHFWLRQ
LQWHUYDOV7KLVDOWHUQDWLYHDSSURDFKVKDOOEHGRFXPHQWHGDQGPDGHSDUWRIWKHSHUPDQHQWUHFRUGRIWKHWDQN
3UHSDUDWRU\:RUNIRU,QWHUQDO,QVSHFWLRQ
6SHFLILFZRUNSURFHGXUHVVKDOOEHSUHSDUHGDQGIROORZHGZKHQFRQGXFWLQJLQVSHFWLRQVWKDWZLOODVVXUHSHUVRQQHO
VDIHW\DQGKHDOWKDQGSUHYHQWSURSHUW\GDPDJHLQWKHZRUNSODFH VHH ,QVSHFWLRQ&KHFNOLVWV
$QQH[ & SURYLGHV VDPSOH FKHFNOLVWV RI LWHPV IRU FRQVLGHUDWLRQ ZKHQ FRQGXFWLQJ LQVHUYLFH DQG RXWRIVHUYLFH
LQVSHFWLRQV
5HFRUGV
*HQHUDO
,QVSHFWLRQUHFRUGVIRUPWKHEDVLVRIDVFKHGXOHGLQVSHFWLRQPDLQWHQDQFHSURJUDP ,WLVUHFRJQL]HGWKDWUHFRUGVPD\
QRWH[LVWIRUROGHUWDQNVDQGMXGJPHQWVPXVWEHEDVHGRQH[SHULHQFH ZLWKWDQNVLQVLPLODUVHUYLFHV 7KHRZQHU
RSHUDWRU VKDOO PDLQWDLQ D FRPSOHWH UHFRUG ILOH FRQVLVWLQJ RI WKUHH W\SHV RI UHFRUGV QDPHO\ FRQVWUXFWLRQ UHFRUGV
LQVSHFWLRQKLVWRU\DQGUHSDLUDOWHUDWLRQKLVWRU\
&RQVWUXFWLRQ5HFRUGV
&RQVWUXFWLRQ UHFRUGV PD\ LQFOXGH QDPHSODWH LQIRUPDWLRQ GUDZLQJV VSHFLILFDWLRQV FRQVWUXFWLRQ FRPSOHWLRQ UHSRUW
DQGDQ\UHVXOWVRIPDWHULDOWHVWVDQGDQDO\VHV
,QVSHFWLRQ+LVWRU\
7KHLQVSHFWLRQKLVWRU\LQFOXGHVDOOPHDVXUHPHQWVWDNHQWKHFRQGLWLRQRIDOOSDUWVLQVSHFWHGDQGDUHFRUGRI DOO
H[DPLQDWLRQVDQGWHVWV$FRPSOHWHGHVFULSWLRQRIDQ\XQXVXDOFRQGLWLRQVZLWKUHFRPPHQGDWLRQVIRUFRUUHFWLRQRI
GHWDLOVZKLFKFDXVHGWKHFRQGLWLRQVVKDOODOVREHLQFOXGHG7KLVILOHZLOODOVRFRQWDLQFRUURVLRQUDWHDQGLQVSHFWLRQ
LQWHUYDOFDOFXODWLRQV
5HSDLU$OWHUDWLRQ+LVWRU\
7KHUHSDLUDOWHUDWLRQKLVWRU\LQFOXGHVDOOGDWDDFFXPXODWHGRQDWDQNIURPWKHWLPHRILWVFRQVWUXFWLRQZLWKUHJDUGWR
UHSDLUV DOWHUDWLRQV UHSODFHPHQWV DQG VHUYLFH FKDQJHV UHFRUGHG ZLWK VHUYLFH FRQGLWLRQV VXFK DV VWRUHG SURGXFW
WHPSHUDWXUHDQGSUHVVXUH 7KHVHUHFRUGVVKRXOGLQFOXGHWKHUHVXOWVRIDQ\H[SHULHQFHVZLWKFRDWLQJVDQGOLQLQJV
5HSRUWV
*HQHUDO
)RUHDFKH[WHUQDOLQVSHFWLRQSHUIRUPHGSHUDQGHDFKLQWHUQDOLQVSHFWLRQSHUIRUPHGSHUWKHDXWKRUL]HG
LQVSHFWRU VKDOO SUHSDUH D ZULWWHQ UHSRUW 7KHVH LQVSHFWLRQ UHSRUWV DORQJ ZLWK LQVSHFWRU UHFRPPHQGDWLRQV DQG
$3,67$1'$5'
GRFXPHQWDWLRQRIGLVSRVLWLRQVKDOOEHPDLQWDLQHGE\WKHRZQHURSHUDWRUIRUWKHOLIHRIWKHWDQN/RFDOMXULVGLFWLRQV
PD\KDYHDGGLWLRQDOUHSRUWLQJDQGUHFRUGNHHSLQJUHTXLUHPHQWVIRUWDQNLQVSHFWLRQV
5HSRUW&RQWHQWV
5HSRUWVVKDOOLQFOXGHDWDPLQLPXPWKHIROORZLQJLQIRUPDWLRQ
D GDWH V RILQVSHFWLRQ
E W\SHRILQVSHFWLRQ H[WHUQDORULQWHUQDO F VFRSH RI LQVSHFWLRQ LQFOXGLQJ DQ\ DUHDV WKDW ZHUH QRW LQVSHFWHG ZLWK UHDVRQV JLYHQ HJ OLPLWHG VFRSH RI
LQVSHFWLRQOLPLWHGSK\VLFDODFFHVV
G GHVFULSWLRQRIWKHWDQN QXPEHUVL]HFDSDFLW\\HDUFRQVWUXFWHGPDWHULDOVRIFRQVWUXFWLRQVHUYLFHKLVWRU\URRIDQG
ERWWRPGHVLJQHWF LIDYDLODEOH
H OLVWRIFRPSRQHQWVLQVSHFWHGDQGFRQGLWLRQVIRXQG DJHQHUDOFKHFNOLVWVXFKDVIRXQGLQ$QQH[&PD\EHXVHGWR
LGHQWLI\WKHVFRSHRIWKHLQVSHFWLRQ DQGGHILFLHQFLHVIRXQG
I LQVSHFWLRQPHWKRGVDQGWHVWVXVHG YLVXDO0)/87HWF DQGUHVXOWVRIHDFKLQVSHFWLRQPHWKRGRUWHVW
J FRUURVLRQUDWHVRIWKHERWWRPDQGVKHOO
K VHWWOHPHQWVXUYH\PHDVXUHPHQWVDQGDQDO\VLV LISHUIRUPHG L UHFRPPHQGDWLRQVSHU
M QDPH FRPSDQ\ $3, FHUWLILFDWLRQ QXPEHU DQG VLJQDWXUH RI WKH DXWKRUL]HG LQVSHFWRU UHVSRQVLEOH IRU WKH
LQVSHFWLRQ
N GUDZLQJVSKRWRJUDSKV1'(UHSRUWVDQGRWKHUSHUWLQHQWLQIRUPDWLRQVKDOOEHDSSHQGHGWRWKHUHSRUW
5HFRPPHQGDWLRQV
5HSRUWVVKDOOLQFOXGHUHFRPPHQGDWLRQVIRUUHSDLUVDQGPRQLWRULQJQHFHVVDU\WRUHVWRUHWKHLQWHJULW\RIWKH
WDQN SHU WKLV VWDQGDUG DQGRU PDLQWDLQ LQWHJULW\ XQWLO WKH QH[W LQVSHFWLRQ WRJHWKHU ZLWK UHDVRQV IRU WKH
UHFRPPHQGDWLRQV7KHUHFRPPHQGHGPD[LPXPLQVSHFWLRQLQWHUYDODQGEDVLVIRUFDOFXODWLRQRIWKDWLQWHUYDOVKDOODOVR
EHVWDWHG$GGLWLRQDOO\UHSRUWVPD\LQFOXGHRWKHUOHVVFULWLFDOREVHUYDWLRQVVXJJHVWLRQVDQGUHFRPPHQGDWLRQV
,W LV WKH UHVSRQVLELOLW\ RI WKH RZQHURSHUDWRU WR UHYLHZ WKH LQVSHFWLRQ ILQGLQJV DQG UHFRPPHQGDWLRQV
HVWDEOLVK D UHSDLU VFRSH LI QHHGHG DQG GHWHUPLQH WKH DSSURSULDWH WLPLQJ IRU UHSDLUV PRQLWRULQJ DQGRU
PDLQWHQDQFHDFWLYLWLHV7\SLFDOWLPLQJFRQVLGHUDWLRQVDQGH[DPSOHVRIUHSDLUVDUH
D prior to returning the tank to service²UHSDLUVFULWLFDOWRWKHLQWHJULW\RIWKHWDQN HJERWWRPRUVKHOOUHSDLUV E after the tank is returned to service²PLQRUUHSDLUVDQGPDLQWHQDQFHDFWLYLW\ HJGUDLQDJHLPSURYHPHQWSDLQWLQJ
JDXJHUHSDLUVJURXWLQJHWF F at the next scheduled internal inspection²SUHGLFWHGRUDQWLFLSDWHGUHSDLUVDQGPDLQWHQDQFH HJFRDWLQJUHQHZDO
SODQQHGERWWRPUHSDLUVHWF G monitor condition for continued deterioration² HJURRIDQGRUVKHOOSODWHFRUURVLRQVHWWOHPHQWHWF 7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
7KHRZQHURSHUDWRUVKDOOHQVXUHWKDWWKHGLVSRVLWLRQRIDOOUHFRPPHQGHGUHSDLUVDQGPRQLWRULQJLVGRFXPHQWHGLQ
ZULWLQJDQGWKDWUHDVRQVDUHJLYHQLIUHFRPPHQGHGDFWLRQVDUHGHOD\HGRUGHHPHGXQQHFHVVDU\
1RQGHVWUXFWLYH([DPLQDWLRQ 1'(
3HUVRQQHOSHUIRUPLQJ1'(VKDOOPHHWWKHTXDOLILFDWLRQVLGHQWLILHGLQEXWQHHGQRWEHFHUWLILHGLQDFFRUGDQFH
ZLWK$QQH[ ' 7KH UHVXOWV RI DQ\ 1'( ZRUN KRZHYHU PXVW EH FRQVLGHUHG LQ WKH HYDOXDWLRQ RI WKH WDQN E\ DQ
DXWKRUL]HGLQVSHFWRU
6HFWLRQ²0DWHULDOV
*HQHUDO
7KLVVHFWLRQSURYLGHVJHQHUDOUHTXLUHPHQWVIRUWKHVHOHFWLRQRIPDWHULDOVIRUWKHUHSDLUDOWHUDWLRQDQGUHFRQVWUXFWLRQ
RIH[LVWLQJWDQNV6SHFLILFUHTXLUHPHQWVIRUUHSDLUVDQGDOWHUDWLRQVDUHFRYHUHGLQ6HFWLRQ
1HZ0DWHULDOV
$OOQHZPDWHULDOVXVHGIRUUHSDLUDOWHUDWLRQVRUUHFRQVWUXFWLRQVKDOOFRQIRUPWRWKHFXUUHQWDSSOLFDEOHVWDQGDUG
2ULJLQDO0DWHULDOVIRU5HFRQVWUXFWHG7DQNV
6KHOODQG%RWWRP3ODWHV:HOGHGWRWKH6KHOO
$OO VKHOO SODWH PDWHULDOV DQG ERWWRP SODWHV ZHOGHG WR WKH VKHOO VKDOO EH LGHQWLILHG 0DWHULDOV LGHQWLILHG E\
RULJLQDO FRQWUDFW GUDZLQJV$3, QDPHSODWHV RU RWKHU VXLWDEOH GRFXPHQWDWLRQ GR QRW UHTXLUH IXUWKHU LGHQWLILFDWLRQ
0DWHULDO QRW LGHQWLILHG VKDOO EH WHVWHG DQG LGHQWLILHG E\ WKH UHTXLUHPHQWV DV RXWOLQHG LQ $IWHU LGHQWLILFDWLRQ
GHWHUPLQDWLRQVKDOOEHPDGHDVWRVXLWDELOLW\RIWKHPDWHULDOIRULQWHQGHGVHUYLFH
(DFK LQGLYLGXDO SODWH IRU ZKLFK DGHTXDWH LGHQWLILFDWLRQ GRHV QRW H[LVW VKDOO EH VXEMHFWHG WR FKHPLFDO
DQDO\VLVDQGPHFKDQLFDOWHVWVDVUHTXLUHGLQ$670$DQG$670$LQFOXGLQJ&KDUS\9QRWFK,PSDFWYDOXHV
VKDOOVDWLVI\WKHUHTXLUHPHQWVRI$3,6HFWLRQ$3,6HFWLRQ$3,6HFWLRQDQG$3,
7DEOHDRU$3,7DEOHE:KHQWKHGLUHFWLRQRIUROOLQJLVQRWGHILQLWHO\NQRZQWZRWHQVLRQVSHFLPHQV
VKDOOEHWDNHQDWULJKWDQJOHVWRHDFKRWKHUIURPDFRUQHURIHDFKSODWHDQGRQHRIWKRVHWHVWVSHFLPHQVPXVWPHHW
WKHVSHFLILFDWLRQUHTXLUHPHQWV
)RUNQRZQPDWHULDOVDOOVKHOOSODWHVDQGERWWRPSODWHVZHOGHGWRWKHVKHOOVKDOOPHHWDVDPLQLPXPWKH
FKHPLVWU\ DQG PHFKDQLFDO SURSHUWLHV RI PDWHULDO VSHFLILHG IRU WKH DSSOLFDWLRQ ZLWK UHJDUG WR WKLFNQHVV DQG GHVLJQ
PHWDOWHPSHUDWXUHJLYHQLQ$3,)LJXUHDRU)LJXUHE
6WUXFWXUDO
([LVWLQJUROOHGVWUXFWXUDOVKDSHVWKDWDUHWREHUHXVHGVKDOOPHHWWKHUHTXLUHPHQWRI$670$DVDPLQLPXP1HZ
VWUXFWXUDOPDWHULDOVKDOOPHHWWKHUHTXLUHPHQWVRI$670$RU$670$DVDPLQLPXP
127( $670$ZDVDVWHHOVSHFLILFDWLRQWKDWZDVGLVFRQWLQXHGLQWKH)RXUWK(GLWLRQRI$3,
)ODQJHVDQG)DVWHQHUV
)ODQJHPDWHULDOVKDOOPHHWWKHPLQLPXPUHTXLUHPHQWVRIWKHPDWHULDOVSHFLILFDWLRQVLQWKHDVEXLOWVWDQGDUG
)DVWHQHUVVKDOOPHHWWKHPDWHULDOVSHFLILFDWLRQVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUG
5RRI%RWWRPDQG3ODWH:LQGJLUGHUV
,IH[LVWLQJSODWHVDUHWREHXVHGWRUHFRQVWUXFWWKHWDQNWKH\VKDOOEHFKHFNHGIRUH[FHVVLYHFRUURVLRQDQGSLWWLQJ VHH
6HFWLRQDQG6HFWLRQ :HOGLQJ&RQVXPDEOHV
:HOGLQJFRQVXPDEOHVVKDOOFRQIRUPWRWKH$:6FODVVLILFDWLRQWKDWLVDSSOLFDEOHWRWKHLQWHQGHGXVH
6HFWLRQ²'HVLJQ&RQVLGHUDWLRQVIRU5HFRQVWUXFWHG7DQNV
*HQHUDO
$Q\VSHFLILFGHVLJQFRQVLGHUDWLRQVRWKHUWKDQQRUPDOSURGXFWORDGLQJVKDOOEHVSHFLILHGE\WKHRZQHURSHUDWRU6HH
IRUUHOHDVHSUHYHQWLRQV\VWHPVDQGUHOHDVHSUHYHQWLRQEDUULHUGHILQLWLRQ
1HZ:HOG-RLQWV
:HOGMRLQWGHWDLOVVKDOOPHHWWKHZHOGLQJUHTXLUHPHQWVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUG
$OOQHZVKHOOMRLQWVVKDOOEHEXWWZHOGHGMRLQWVZLWKFRPSOHWHSHQHWUDWLRQDQGFRPSOHWHIXVLRQ
([LVWLQJ:HOG-RLQWV
([LVWLQJZHOGMRLQWVVKDOOPHHWWKHUHTXLUHPHQWVRIWKHDVEXLOWVWDQGDUG
6KHOO'HVLJQ
7KLFNQHVV WR EH XVHG IRU HDFK VKHOO FRXUVH ZKHQ FKHFNLQJ WDQN GHVLJQ VKDOO EH EDVHG RQ PHDVXUHPHQWV
WDNHQZLWKLQGD\VSULRUWRUHORFDWLRQ 6HHIRUPHDVXULQJSURFHGXUHQXPEHUDQGORFDWLRQVRIPHDVXUHG
WKLFNQHVVHV
7KHPD[LPXPGHVLJQOLTXLGOHYHOIRUSURGXFWVKDOOEHGHWHUPLQHGE\FDOFXODWLQJWKHPD[LPXPGHVLJQOLTXLG
OHYHOIRUHDFKVKHOOFRXUVHEDVHGRQWKHVSHFLILFJUDYLW\RIWKHSURGXFWWKHDFWXDOWKLFNQHVVPHDVXUHGIRUHDFKVKHOO
FRXUVHWKHDOORZDEOHVWUHVVIRUWKHPDWHULDOLQHDFKFRXUVHDQGWKHGHVLJQPHWKRGWREHXVHG7KHDOORZDEOHVWUHVV
IRUWKHPDWHULDOVKDOOEHGHWHUPLQHGXVLQJ$3,7DEOHDRU7DEOHE)RUPDWHULDOQRWOLVWHGLQ7DEOHDRU
7DEOHEDQDOORZDEOHVWUHVVYDOXHRIWKHOHVVHURI\LHOGVWUHQJWKRUWHQVLOHVWUHQJWKVKDOOEHXVHG
7KHPD[LPXPOLTXLGOHYHOIRUK\GURVWDWLFWHVWVKDOOEHGHWHUPLQHGE\XVLQJWKHDFWXDOWKLFNQHVVPHDVXUHGIRU
HDFK VKHOO FRXUVH WKH DOORZDEOH VWUHVV IRU WKH PDWHULDO LQ HDFK FRXUVH DQG WKH GHVLJQ PHWKRG WR EH XVHG 7KH
DOORZDEOHVWUHVVIRUWKHPDWHULDOVKDOOEHGHWHUPLQHGXVLQJ$3,7DEOHDRU7DEOHE)RUPDWHULDOQRWOLVWHG
LQ7DEOHDRU7DEOHEDQDOORZDEOHVWUHVVYDOXHRIWKHOHVVHURI\LHOGVWUHQJWKRUWHQVLOHVWUHQJWKVKDOOEH
XVHG
,I D FRUURVLRQ DOORZDQFH LV UHTXLUHG IRU WKH UHFRQVWUXFWHG WDQN WKH UHTXLUHG FRUURVLRQ DOORZDQFH VKDOO EH
GHGXFWHGIURPWKHDFWXDOWKLFNQHVVEHIRUHFDOFXODWLQJWKHPD[LPXPOLTXLGOHYHO,IWKHDFWXDOWKLFNQHVVLVJUHDWHUWKDQ
WKDWQHFHVVDU\WRDOORZWKHOLTXLGOHYHOUHTXLUHGWKHH[WUDWKLFNQHVVFDQEHFRQVLGHUHGDVFRUURVLRQDOORZDQFH
7KHMRLQWHIILFLHQF\DQGDOORZDEOHVWUHVVOHYHOVXVHGIRUWKHGHVLJQOLTXLGOHYHOFDOFXODWLRQVVKDOOEHFRQVLVWHQW
ZLWKWKHGHVLJQPHWKRGXVHGDQGZLWKWKHGHJUHHDQGW\SHRIH[DPLQDWLRQPDGHRQZHOGHGMRLQWV7KHMRLQWHIILFLHQF\
DQGDOORZDEOHVWUHVVOHYHOVIRUH[LVWLQJZHOGHGMRLQWVWKDWDUHQRWWREHUHPRYHGDQGUHSODFHGVKDOOEHEDVHGRQWKH
RULJLQDOGHJUHHDQGW\SHRIH[DPLQDWLRQ
6KHOO3HQHWUDWLRQV
5HSODFHPHQW DQG QHZ SHQHWUDWLRQV VKDOO EH GHVLJQHG GHWDLOHG ZHOGHG DQG H[DPLQHG WR PHHW WKH
UHTXLUHPHQWVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUG
([LVWLQJSHQHWUDWLRQVVKDOOEHHYDOXDWHGIRUFRPSOLDQFHZLWKWKHDVEXLOWVWDQGDUG
$3,67$1'$5'
:LQGJLUGHUVDQG6KHOO6WDELOLW\
7RS DQG LQWHUPHGLDWH ZLQGJLUGHUV IRU RSHQ WRS WDQNV VKDOO PHHW WKH UHTXLUHPHQWV RI WKH FXUUHQW DSSOLFDEOH
VWDQGDUG
7DQNVWREHUHFRQVWUXFWHGVKDOOEHFKHFNHGIRUZLQGLQGXFHGEXFNOLQJLQDFFRUGDQFHZLWKWKHSURFHGXUHVRI
WKHFXUUHQWDSSOLFDEOHVWDQGDUGXVLQJWKHZLQGUHTXLUHPHQWVIRUWKHORFDWLRQZKHUHWKHWDQNZLOOEHUHFRQVWUXFWHG
5RRIV
5RRIGHVLJQVVKDOOPHHWWKHUHTXLUHPHQWVRIWKHDVEXLOWVWDQGDUG
,IWKHQHZVLWHUHTXLUHVDODUJHUGHVLJQORDGWKDQWKHRULJLQDOVLWHWKHDGHTXDF\RIWKHH[LVWLQJURRIVKDOOEH
HYDOXDWHGXVLQJWKHFXUUHQWDSSOLFDEOHVWDQGDUG
6HLVPLF'HVLJQ
7DQNVWKDWZLOOEHUHFRQVWUXFWHGVKDOOEHFKHFNHGIRUVHLVPLFVWDELOLW\EDVHGRQWKHUXOHVRIWKHFXUUHQWDSSOLFDEOH
VWDQGDUGXVLQJWKHGLPHQVLRQVDQGWKLFNQHVVHVRIWKHUHFRQVWUXFWHGWDQN5HFRQVWUXFWHGWDQNVVKDOOEHEXLOWWRPHHW
WKHVWDELOLW\UHTXLUHPHQWVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUG7KLFNHQHGERWWRPSODWHVXQGHUWKHERWWRPVKHOOFRXUVH
RUDQFKRULQJRIWKHWDQNPD\EHUHTXLUHGHYHQLIQRWXVHGRQWKHRULJLQDOWDQN
6HFWLRQ²7DQN5HSDLUDQG$OWHUDWLRQ
*HQHUDO
7KHEDVLVIRUUHSDLUVDQGDOWHUDWLRQVVKDOOEHDQ$3,HTXLYDOHQFH
+\GURVWDWLFWHVWLQJUHTXLUHPHQWV1'(UHTXLUHPHQWVDFFHSWDQFHFULWHULDIRUWKHZHOGVDQGUHSDLUVWRVKHOO
SODWHDQGH[LVWLQJZHOGVDUHVSHFLILHGLQ6HFWLRQ
$OOUHSDLUZRUNPXVWEHDXWKRUL]HGE\WKHDXWKRUL]HGLQVSHFWRURUDQHQJLQHHUH[SHULHQFHGLQVWRUDJHWDQN
GHVLJQEHIRUHFRPPHQFHPHQWRIWKHZRUNE\DUHSDLURUJDQL]DWLRQ$XWKRUL]DWLRQIRUDOWHUDWLRQVWRVWRUDJHWDQNV
WKDW FRPSO\ ZLWK $3, PD\ QRW EH JLYHQ ZLWKRXW SULRU FRQVXOWDWLRQ ZLWK DQG DSSURYHG E\ DQ HQJLQHHU
H[SHULHQFHGLQVWRUDJHWDQNGHVLJQ7KHDXWKRUL]HGLQVSHFWRUZLOOGHVLJQDWHLQVSHFWLRQKROGSRLQWVUHTXLUHGGXULQJ
WKH UHSDLU RU DOWHUDWLRQ VHTXHQFH DQG PLQLPXP GRFXPHQWDWLRQ WR EH VXEPLWWHG XSRQ MRE FRPSOHWLRQ 7KH
DXWKRUL]HGLQVSHFWRUPD\JLYHSULRUJHQHUDODXWKRUL]DWLRQIRUOLPLWHGRUURXWLQHUHSDLUVDVORQJDVWKHDXWKRUL]HG
LQVSHFWRULVVXUHWKDWWKHUHSDLUVZLOOQRWUHTXLUHK\GURVWDWLFWHVWLQJRUGRQRWUHTXLUHDQHQJLQHHULQJHYDOXDWLRQ
$OO SURSRVHG GHVLJQ ZRUN H[HFXWLRQ PDWHULDOV ZHOGLQJ SURFHGXUHV H[DPLQDWLRQ DQG WHVWLQJ PHWKRGV
PXVW EH DSSURYHG E\ WKH DXWKRUL]HG LQVSHFWRU RU E\ DQ HQJLQHHU H[SHULHQFHG LQ VWRUDJH WDQN GHVLJQ 7KH
DXWKRUL]HG LQVSHFWRU RU DQ HQJLQHHU H[SHULHQFHG LQ VWRUDJH WDQN GHVLJQ VKDOO DSSURYH DOO VSHFLILHG UHSDLU DQG
DOWHUDWLRQZRUNDWWKHGHVLJQDWHGKROGSRLQWVDQGDIWHUUHSDLUVDQGDOWHUDWLRQVKDYHEHHQFRPSOHWHGLQDFFRUGDQFH
ZLWKWKHUHTXLUHPHQWVRIWKLVVWDQGDUG
$QQH[)VXPPDUL]HVWKHUHTXLUHPHQWVE\PHWKRGRIH[DPLQDWLRQDQGSURYLGHVWKHDFFHSWDQFHVWDQGDUGV
H[DPLQHU TXDOLILFDWLRQV DQG SURFHGXUH UHTXLUHPHQWV$QQH[ ) LV QRW LQWHQGHG WR EH XVHG DORQH WR GHWHUPLQH WKH
H[DPLQDWLRQ UHTXLUHPHQWV IRU ZRUN FRYHUHG E\ WKLV GRFXPHQW 7KH VSHFLILF UHTXLUHPHQWV DV OLVWHG LQ 6HFWLRQ WKURXJK6HFWLRQVKDOOEHIROORZHGLQDOOFDVHV
5HPRYDODQG5HSODFHPHQWRI6KHOO3ODWH0DWHULDO
0LQLPXP7KLFNQHVVRI5HSODFHPHQW6KHOO3ODWH
7KHPLQLPXPWKLFNQHVVRIWKHUHSODFHPHQWVKHOOSODWHPDWHULDOVKDOOEHFDOFXODWHGLQDFFRUGDQFHZLWKWKHDVEXLOW
VWDQGDUG7KHWKLFNQHVVRIWKHUHSODFHPHQWVKHOOSODWHVKDOOQRWEHOHVVWKDQWKHJUHDWHVWQRPLQDOWKLFNQHVVRIDQ\
SODWH LQ WKH VDPH FRXUVH DGMRLQLQJ WKH UHSODFHPHQW SODWH H[FHSW ZKHUH WKH DGMRLQLQJ SODWH LV D WKLFNHQHG LQVHUW
SODWH$Q\FKDQJHVIURPWKHRULJLQDOGHVLJQFRQGLWLRQVVXFKDVVSHFLILFJUDYLW\GHVLJQSUHVVXUHOLTXLGOHYHODQG
VKHOOKHLJKWVKDOOEHFRQVLGHUHG
0LQLPXP'LPHQVLRQVRI5HSODFHPHQW6KHOO3ODWH
7KHPLQLPXPGLPHQVLRQIRUDUHSODFHPHQWVKHOOSODWHLVLQRUWLPHVWKHWKLFNQHVVRIWKHUHSODFHPHQW
SODWH ZKLFKHYHU LV JUHDWHU 7KH UHSODFHPHQW SODWH PD\ EH FLUFXODU REORQJ VTXDUH ZLWK URXQGHG FRUQHUV RU
UHFWDQJXODUZLWKURXQGHGFRUQHUVH[FHSWZKHQDQHQWLUHVKHOOSODWHLVUHSODFHG6HH)LJXUHIRUW\SLFDOGHWDLOVRI
DFFHSWDEOHUHSODFHPHQWVKHOOSODWHV
:KHUHRQHRUPRUHHQWLUHVKHOOSODWHVRUIXOOKHLJKWVHJPHQWVRIVKHOOSODWHVDUHWREHUHPRYHGDQGUHSODFHG
WKHPLQLPXPVSDFLQJUHTXLUHPHQWVVSHFLILHGLQ)LJXUHIRUYHUWLFDOZHOGMRLQWVVKDOOEHPDLQWDLQHG,WLVDFFHSWDEOH
WRUHPRYHDQGUHSODFHHQWLUHVKHOOSODWHVRUIXOOKHLJKWVHJPHQWVRIVKHOOSODWHVE\FXWWLQJDQGUHZHOGLQJDORQJWKH
H[LVWLQJKRUL]RQWDOZHOGMRLQWV3ULRUWRZHOGLQJWKHQHZYHUWLFDOMRLQWVWKHH[LVWLQJKRUL]RQWDOZHOGVVKDOOEHFXWIRUD
PLQLPXP GLVWDQFH RI LQ EH\RQG WKH QHZ YHUWLFDO MRLQWV7KH YHUWLFDO MRLQWV VKDOO EH ZHOGHG SULRU WR ZHOGLQJ WKH
KRUL]RQWDOMRLQWV
$3,67$1'$5' A
R
A
V
See
Note 2
H
R
Existing
welds
R
R
H
Existing welds
R
*
*
Weld joint
(annular or
bottom plates)
V
Bottom plate
*
B
B
Greater of
R or H
V
V
C
* See Note 3
Minimum Weld Spacing Between
Edges (Toes) of Welds for Thickness
of Replacement Shell Plate, t, (inches)
Dimension
t”LQ
t !LQ
R
B
H
V
A
6 in.
6 in.
3 in.
6 in.
12 in.
Greater of 6 in. or 6t
*UHDWHURILQRUt
*UHDWHURILQRUt
*UHDWHURILQRUt
Greater of 12 in. or 12t
C
Greater of 3 in.RUt
127($OOZHOGLQWHUVHFWLRQVVKDOOEHDWDSSUR[LPDWHO\ž
NOTE 2 Prior to welding new vertical joints, cut existing horizontal weld for a minimum of 12 in. beyond the new
vertical joints. Weld the horizontal joint last.
NOTE 3 Prior to welding new vertical joints, cut existing shell-to-bottom weld for a minimum of 12 in. beyond the
QHZYHUWLFDOMRLQWV7KHFXWVKDOOH[WHQGSDVWRUVWRSVKRUWRIH[LVWLQJERWWRPSODWHZHOGVE\DWOHDVWLQRUt. Weld
the shell-to-bottom weld last.
)LJXUH
²$FFHSWDEOH'HWDLOVIRU5HSODFHPHQWRI6KHOO3ODWH0DWHULDO
:HOG-RLQW'HVLJQ
6KHOO UHSODFHPHQW SODWHV VKDOO EH ZHOGHG ZLWK EXWW MRLQWV ZLWK FRPSOHWH SHQHWUDWLRQ DQG FRPSOHWH IXVLRQ
H[FHSWDVSHUPLWWHGIRUODSSHGSDWFKVKHOOUHSDLUV
:HOGMRLQWGHVLJQIRUUHSODFHPHQWVKHOOSODWHVVKDOOEHLQDFFRUGDQFHZLWK$3,6HFWLRQWKURXJK
6HFWLRQ-RLQWVLQODSZHOGHGVKHOOWDQNVPD\EHUHSDLUHGDFFRUGLQJWRWKHDVEXLOWVWDQGDUG/DSZHOGHGMRLQW
GHVLJQIRUODSSHGSDWFKVKHOOUHSDLUVVKDOOPHHWWKHUHTXLUHPHQWVRI'HWDLOVRIZHOGLQJVKDOOEHLQDFFRUGDQFHZLWK
RI$3,DQG6HFWLRQRIWKLVVWDQGDUG
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
)RUH[LVWLQJVKHOOSODWHVRYHU LQWKLFNWKHRXWHUHGJHRIWKHEXWWZHOGDWWDFKLQJWKHUHSODFHPHQWVKHOO
SODWHVKDOOEHDWOHDVWWKHJUHDWHURIWLPHVWKHZHOGWKLFNQHVVRULQIURPWKHRXWHUHGJHRIDQ\H[LVWLQJEXWW
ZHOGHGVKHOOMRLQWV)RUH[LVWLQJVKHOOSODWHVLQWKLFNDQGOHVVWKHVSDFLQJPD\EHUHGXFHGWRLQIURPWKHRXWHU
HGJHRIYHUWLFDOMRLQWVRULQIURPWKHRXWHUHGJHRIKRUL]RQWDOMRLQWV6HH)LJXUHIRUPLQLPXPGLPHQVLRQV
)RUH[LVWLQJVKHOOSODWHVRYHULQWKLFNWKHRXWHUHGJHRIWKHEXWWZHOGDWWDFKLQJWKHUHSODFHPHQWVKHOOSODWHVKDOO
EHDWOHDVWWKHJUHDWHURIWLPHVWKHZHOGVL]HRULQIURPWKHHGJH WRH RIWKHILOOHWZHOGDWWDFKLQJWKHERWWRP
VKHOOFRXUVHWRWKHERWWRPH[FHSWZKHQWKHUHSODFHPHQWVKHOOSODWHH[WHQGVWRDQGLQWHUVHFWVWKHERWWRPWRVKHOO
MRLQWDWDSSUR[LPDWHO\q)RUH[LVWLQJVKHOOSODWHV LQWKLFNDQGOHVVWKLVVSDFLQJPD\EHUHGXFHGWRLQ)RU
VKHOOSODWHVRIXQNQRZQWRXJKQHVVQRWPHHWLQJWKHH[HPSWLRQFULWHULDRI)LJXUHWKHHGJHRIDQ\YHUWLFDOZHOG
MRLQWDWWDFKLQJDUHSODFHPHQWSODWHVKDOOEHDWLQRUtIURPWKHHGJHRIDZHOGMRLQWLQWKHERWWRPDQQXODUULQJRU
ZHOGMRLQWVLQERWWRPSODWHVXQGHUWKHWDQNVKHOO)LJXUHKDVPLQLPXPGLPHQVLRQV
7R UHGXFH WKH SRWHQWLDO IRU GLVWRUWLRQ RI DQ H[LVWLQJ WDQN GXH WR ZHOGLQJ D UHSODFHPHQW SODWH LQWR DQ
H[LVWLQJWDQNVKHOOILWXSKHDWLQSXWDQGZHOGLQJVHTXHQFHPXVWEHFRQVLGHUHG
'RRU6KHHW,QVWDOODWLRQ
7KLVVHFWLRQGHVFULEHVWKHUHTXLUHPHQWVIRUUHLQVWDOODWLRQRUUHSODFHPHQWRIDGRRUVKHHW7KHUHTXLUHPHQWVRI)LJXUH
)LJXUH)LJXUH)LJXUHDQG)LJXUHVKDOOEHXVHGWRORFDWHGRRUVKHHWVUHODWLYHWRH[LVWLQJVHDPVXQOHVVDQ
DOWHUQDWLYHGHVLJQLVGHVLJQHGE\DVWRUDJHWDQNHQJLQHHUDQGWKHRZQHURSHUDWRUDSSURYHVWKHDOWHUQDWLYHLQZULWLQJ
'RRUVKHHWLQVWDOODWLRQVKDOOPHHWWKHUHTXLUHPHQWVRIDQG
7KH UHPRYHG VKHOO SODWH VHFWLRQ RI D GRRU VKHHW LQ D EXWWZHOGHG WDQN PD\ EH UHLQVWDOOHG LQ LWV RULJLQDO
ORFDWLRQRUWKHVHFWLRQPD\EHUHSODFHGZLWKQHZVKHOOSODWHPDWHULDO,QHLWKHUFDVHWKHGRRUVKHHWLQVWDOODWLRQVKDOO
XWLOL]HMRLQWVZLWKFRPSOHWHSHQHWUDWLRQDQGFRPSOHWHIXVLRQ
/DUJHGRRUVKHHWVRIWKHW\SHVKRZQLQ)LJXUHVDQGVKRXOGKDYHWKHWRSDQGRUVLGHVRIWKH
RSHQLQJVWLIIHQHGWRSUHYHQWD VDJJLQJDQGGHIRUPDWLRQRIWKHVKHOODWWKHWRSRIWKHRSHQLQJDQGE VKHOOGHIRUPDWLRQV
DWWKHVLGHVDQGXSSHUFRUQHUVUHVXOWLQJZKHQWKHGRRUVKHHWLVILUVWUHPRYHGRUZKHQLWLVUHSODFHGDQGZHOGHGLQWRWKH
VKHOO,QVWDOODWLRQRIWKHVWLIIHQLQJPHPEHUVVKRXOGEHGRQHSULRUWRFXWWLQJWKHGRRUVKHHWSURYLGLQJLWLVVDIHWRGRVR
DQGWKHPHPEHUVVKRXOGUHPDLQLQSODFHXQWLOWKHGRRUVKHHWLVFRPSOHWHO\DQGVDWLVIDFWRULO\UHLQVWDOOHG7KHVSHFLILF
DUUDQJHPHQWDQGGHWDLOVRIWKHVWLIIHQLQJVKRXOGEHGHWHUPLQHGE\DVWRUDJHWDQNHQJLQHHU'RRUVKHHWVWLIIHQLQJZKHQ
XVHGXVXDOO\FRQVLVWVRIRQHRUDFRPELQDWLRQRIDQJOHFKDQQHORUZLGHIODQJHVHFWLRQPHPEHUV
)RUODSZHOGHGDQGULYHWHGWDQNVUHLQVWDOODWLRQRIDQRULJLQDOSODWHVHFWLRQWKDWFURVVHVDQH[LVWLQJKRUL]RQWDO
VHDPLVQRWSHUPLWWHG
'RRUVKHHWVWKDWFURVVYHUWLFDOULYHWHGRUODSZHOGHGVHDPVDUHQRWSHUPLWWHGLQDQ\FDVH
,I D GRRUVKHHW YHUWLFDOFXWOLQHFURVVHV DQ H[LVWLQJVHDP LQ D EXWWZHOGHGWDQNZLWKRXWDQ RIIVHW DQG WKH
UHPRYHG VHFWLRQ LV UHLQVWDOOHG WKHQ DGGLWLRQDO ZHOG H[DPLQDWLRQ VKDOO EH UHTXLUHG DW WKH LQWHUVHFWLRQ RI WKH QHZ
YHUWLFDOZHOGVHDPDQGH[LVWLQJKRUL]RQWDOZHOGVHDP,QDGGLWLRQWRWKHH[DPLQDWLRQUHTXLUHPHQWVRIWKH
EDFNJRXJHGVXUIDFHRIWKHURRWSDVVDQGWKHILQDOSDVV HDFKVLGH RIWKHQHZZHOGVVKDOOEHH[DPLQHGE\PDJQHWLF
SDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGV7KHH[LVWLQJKRUL]RQWDOZHOGVHDPLQWHUVHFWHGE\WKHQHZYHUWLFDOZHOGVKDOODOVR
EHH[DPLQHGE\PDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGVIRUDLQGLVWDQFHRQERWKVLGHV
127( ³2IIVHW´LVWKHKRUL]RQWDOGLVWDQFHEHWZHHQWKHYHUWLFDOZHOGVDERYHDQGEHORZDKRUL]RQWDOVHDPDVVKRZQLQ)LJXUH
)LJXUHDQG)LJXUH
,IDGRRUVKHHWYHUWLFDOFXWOLQHFURVVHVDQH[LVWLQJVHDPLQDEXWWZHOGHGWDQNZLWKDQRIIVHWWKHPLQLPXP
RIIVHW PXVW HTXDO GLPHQVLRQ µ9¶ DV VKRZQ LQ )LJXUH 3ULRU WR ZHOGLQJ WKH QHZ YHUWLFDO VHDPV FXW H[LVWLQJ
KRUL]RQWDOVHDPZHOGIRUDPLQLPXPRILQEH\RQGWKHQHZYHUWLFDOMRLQWV:HOGWKHKRUL]RQWDOVHDPODVW
,IDGRRUVKHHWFXWOLQHFURVVHVDODSZHOGHGRUDULYHWHGKRUL]RQWDOVHDPWKHUHSODFHPHQWDVVHPEO\VKDOO
EHFRQVWUXFWHGRIWZRVHSDUDWHSODWHVZLWKWKHORZHUVHFWLRQEXWWZHOGHGWRWKHDGMDFHQWVKHOOFRXUVHE\PHDQVRIIXOO
$3,67$1'$5'
SHQHWUDWLRQIXOOIXVLRQYHUWLFDOZHOGV7KHXSSHUVHFWLRQVKDOOEHODSSHGRYHURUXQGHUWKHORZHUVHFWLRQDQGWKHXSSHU
SODWHVKDOOEHEXWWZHOGHGWRWKHH[LVWLQJVKHOOSODWH$IWHUWKHEXWWZHOGVDUHFRPSOHWHGWKHKRUL]RQWDOODSVKDOOEHILOOHW
ZHOGHGDORQJERWKLQVLGHDQGRXWVLGHHGJHV
See Note 4
Greater of R or H
See
Note 4
V
R
See Note 4
Seal rivets
and rivet
seams
Plug weld rivet
holes (see Note 6)
See
Note 4
See Note 8
12 in. minimum (see Note 5)
3 in. or 5t minimum (see Note 5)
NOTES:
1. See table in Figure 9.1 for minimum weld spacing and dimensions H, R, and V.
2. When a door sheet crosses the horizontal joint between two courses, a replacement door sheet assembly shall be
constructed of two separate plates. The upper door sheet thickness shall be the same as the higher shell course
thickness. The lower door sheet thickness shall be the same as the lower shell course thickness.
3. Fillet Weld size shall be equal to thickness of thinner of two plates.
4. Rivets and existing lap rivet seams located within 12 in. of a weld may need to be sealed with caulk/coating or
seal-welded to prevent product seepage.
5. Prior to welding new vertical seam which intersect the bottom plate, cut existing shell-to-bottom weld for a minimum of
12 in. beyond the new vertical weld seam. The cut shall extend past or stop short of existing bottom plate welds by at
least 3 in. or 5t. Weld the shell-to-bottom weld last.
6. Plug weld all rivet holes in the shell plate where rivets are removed. Filler weld to full plate thickness and grind flush.
7. Door sheets need not extend to shell-to-bottom weld provided that weld spacing and corner radii are in accordance
with Figure 9.1.
8. See 9.2.4.3. Stiffener arrangement may vary from that shown.
)LJXUH ²'HWDLOVIRU'RRU6KHHWVLQ5LYHWHG6HDP7DQN
6 in. minimum
Greater of R or H
Existing weld
V
V
Existing
weld
R
See
Note 3
V
See Note 6
12 in. minimum (see Note 4)
Greater of 3 in. or 5t (see Note 4)
NOTES:
1. See table in Figure 9.1 for minimum weld spacing and dimensions H, R, and V.
2. When a door sheet crosses the horizontal joint between two courses, a replacement door sheet assembly shall be
comprised of two separate plates. The upper door sheet thickness shall be the same as the higher shell course
thickness. The lower door sheet thickness shall be the same as the lower shell course thickness.
3. Fillet Weld size shall be equal to thickness of thinner of two plates.
4. Prior to welding new vertical joints which intersect the bottom plate, cut existing shell-to-bottom weld for a minimum of
12 in. beyond the new vertical weld joint. The cut shall extend past or stop short of existing bottom plate welds by at
least 3 in. or 5t. Weld the shell-to-bottom weld last.
5. Door sheets need not extend to shell-to-bottom weld provided that weld spacing and corner radii are in accordance
with Figure 9.1.
6. See 9.2.4.3. Stiffener arrangement may vary from that shown.
)LJXUH ²'HWDLOVIRU'RRU6KHHWVLQ/DSZHOGHG6HDP7DQN
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
H
Greater of R or H
Door sheet seam
V
R
V
Existing
weld
See Note 5
12 in. minimum (see Note 3)
Greater of 3 in. or 5t (see Note 3)
NOTES:
1. See table in Figure 9.1 for minimum weld spacing and dimensions H, R, and V.
2. Detail shown for door sheet that utilizes removed section of tank shell. If new material is utilized, see Figure 9.1 for
requirements.
3. Prior to welding new vertical weld seam which intersects the bottom plate, cut existing shell-to-bottom weld for a
minimum of 12 in. beyond the new vertical weld seam. The cut shall extend past or stop short of existing bottom plate
welds by at least 3 in. or 5t. Weld the shell-to-bottom weld last.
4. Door sheets need not extend to shell-to-bottom weld provided that weld spacing and corner radii are in accordance
with Figure 9.1.
5. See 9.2.4.3. Stiffener arrangement may vary from that shown.
)LJXUH
²'HWDLOVIRU'RRU6KHHWVLQ%XWWZHOGHG6KHOO6HDP7DQN²1R9HUWLFDO6HDP2IIVHW
H
Door sheet seams
Greater of R or H
Existing weld
V
R
V
See
Note 2
See
Note 2
Existing
weld
See Note 5
12 in. minimum (see Note 3)
Greater of 3 in. or 5V (see Note 3)
NOTES:
1. See table in Figure 9.1 for minimum weld spacing and dimensions H, R, and V.
2. Prior to welding new vertical joints, cut the existing horizontal weld for a minimum of 12 in. beyond the new vertical
weld seam. Weld the horizontal seam last.
3. Prior to welding new vertical joints which intersect the bottom plate, cut the existing shell-to-bottom weld for a minimum
of 12 in. beyond the new vertical weld joint. The cut shall extend past or stop short of existing bottom plate welds by at
least 3 in. or 5t. Weld the shell-to-bottom weld last.
4. Door sheets need not extend to shell-to-bottom weld provided that weld spacing and corner radii are in accordance
with Figure 9.1.
5. See 9.2.4.3. Stiffener arrangement may vary from that shown.
)LJXUH
²'HWDLOVIRU'RRU6KHHWVLQ%XWWZHOGHG6KHOO6HDP7DQN²9HUWLFDO6HDP2IIVHW
$3,67$1'$5' 1HZZHOGVHDPVLQULYHWHGWDQNVVKDOOEHORFDWHGDPLQLPXPRILQIURPH[LVWLQJULYHWVHDPVWRPLQLPL]H
SRWHQWLDOIRUULYHWDQGULYHWVHDPOHDNVRUWKHULYHWVDQGH[LVWLQJODSULYHWVHDPVVKDOOEHVHDOZHOGHGRUVHDOHGE\WKH
DSSOLFDWLRQRIFDXONRUFRDWLQJWKDWLVFRPSDWLEOHZLWKWKHVSHFLILHGVWRUHGSURGXFW
127(
7KHKHDWFUHDWHGE\ZHOGLQJPD\FDXVHQHDUE\ULYHWVDQGULYHWVHDPVWROHDN
6KHOO5HSDLUV8VLQJ/DSZHOGHG3DWFK3ODWHV
/DSSHGSDWFKVKHOOUHSDLUVDUHDQDFFHSWDEOHIRUPRIUHSDLUIRUEXWWZHOGHGODSZHOGHGDQGULYHWHGWDQN
VKHOOV XQGHU WKH FRQGLWLRQV RXWOLQHG LQ DQG RQO\ ZKHQ VSHFLILHG E\ WKH RZQHURSHUDWRU ,Q
DGGLWLRQ WKH UHSDLU GHWDLOV VKDOO FRPSO\ ZLWK WKH UHTXLUHPHQWV RI WKURXJK 7KHVH UHSDLUV DUH
SHUPDQHQWUHSDLUVVXEMHFWWRDQRQJRLQJLQVSHFWLRQDQGPDLQWHQDQFHSURJUDP7KHVHUHTXLUHPHQWVPD\EHXVHG
WRHYDOXDWHH[LVWLQJODSSHGSDWFKVKHOOUHSDLUVKRZHYHUWKHSODWHWKLFNQHVVOLPLWVQHHGQRWDSSO\
$OOUHSDLUPDWHULDOVKDOOFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKHFXUUHQWDSSOLFDEOHVWDQGDUGRIFRQVWUXFWLRQ
DQG$3,
/DSSHG SDWFK VKHOO UHSDLUV VKDOO QRW EH XVHG RQ DQ\ VKHOO FRXUVH WKLFNQHVV RULJLQDO FRQVWUXFWLRQ WKDW
H[FHHGVLQQRUWRUHSODFHGRRUVKHHWVRUVKHOOSODWHV
([FHSW DV SHUPLWWHG LQ DQG WKH UHSDLU SODWH PDWHULDO VKDOO EH WKH VPDOOHU RI LQ RU WKH
WKLFNQHVVRIWKHVKHOOSODWHDGMDFHQWWRWKHUHSDLUVEXWQRWOHVVWKDQLQ
7KHVKDSHRIWKHUHSDLUSODWHPD\EHFLUFXODUREORQJVTXDUHRUUHFWDQJXODU$OOFRUQHUVH[FHSWDWWKHVKHOO
WRERWWRPMRLQWVKDOOEHURXQGHGWRDPLQLPXPUDGLXVRILQ7KHQR]]OHUHLQIRUFLQJSODWHVKDSHVRI$3,)LJXUH
DUHDOVRDFFHSWDEOH
7KHUHSDLUSODWHPD\FURVVDQ\EXWWZHOGHGYHUWLFDORUKRUL]RQWDOVKHOOVHDPVWKDWKDYHEHHQJURXQGIOXVK
EXWPXVWRYHUODSDPLQLPXPRILQEH\RQGWKHVKHOOVHDP7KHZHOGVSDFLQJUHTXLUHPHQWVRI)LJXUHVKDOOEH
XVHGDVDEDVLVIRUORFDWLQJUHSDLUSODWHVUHODWLYHWREXWWZHOGHGILOOHWZHOGHGDQGULYHWHGVHDPVDQGRWKHUUHSDLU
SODWHV
5HSDLUSODWHVPD\H[WHQGWRDQGLQWHUVHFWZLWKWKHH[WHUQDOVKHOOWRERWWRPMRLQWLIWKHYHUWLFDOVLGHVLQWHUVHFW
WKH WDQN ERWWRP DW D q DQJOH DQG WKH VKHOOWRERWWRP ZHOG LV LQ FRQIRUPDQFH ZLWK )LJXUH 5HSDLU SODWHV
SRVLWLRQHGRQWKHVKHOOLQWHULRUVKDOOEHORFDWHGVXFKWKDWWKHWRHWRWRHZHOGFOHDUDQFHVDUHDPLQLPXPRILQWRWKH
VKHOOWRERWWRPZHOG
7KHPD[LPXPYHUWLFDODQGKRUL]RQWDOGLPHQVLRQRIWKHUHSDLUSODWHLVLQDQGLQUHVSHFWLYHO\7KH
PLQLPXPUHSDLUSODWHGLPHQVLRQLVLQ7KHUHSDLUSODWHVKDOOEHIRUPHGWRWKHVKHOOUDGLXV
6KHOORSHQLQJVDQGWKHLUUHLQIRUFHPHQWVVKDOOQRWEHSRVLWLRQHGZLWKLQDODSSHGSDWFKVKHOOUHSDLU
3ULRUWRDSSOLFDWLRQRIDODSSHGSDWFKVKHOOUHSDLUWKHDUHDVWREHZHOGHGVKDOOEHXOWUDVRQLFDOO\H[DPLQHGIRU
SODWHGHIHFWVDQGUHPDLQLQJWKLFNQHVV
5HSDLUSODWHVVKDOOQRWEHODSSHGRQWRODSZHOGHGVKHOOVHDPVULYHWHGVKHOOVHDPVRWKHUODSSHGSDWFK
UHSDLUSODWHVGLVWRUWHGDUHDVRUXQUHSDLUHGFUDFNVRUGHIHFWV
/DSSHG SDWFK UHSDLU SODWHV PD\ EH XVHG IRU WKH FORVXUH RI KROHV FDXVHG E\ WKH UHPRYDO RI H[LVWLQJ VKHOO
RSHQLQJV RU WKH UHPRYDO RI VHYHUHO\ FRUURGHG RU HURGHG DUHDV ,Q DGGLWLRQ WKH IROORZLQJ UHTXLUHPHQWV VKDOO EH
VDWLVILHG
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
T
T
Tank shell
Repair plate
W
3/16
Trim repair
plate to clear
shell-to-bottom
weld
Detail A
For T > existing
shell-to-bottom
weld size
Detail B
For T”H[LVWLQJ
shell-to-bottom
weld size
W = lesser of repair plate thickness
or bottom plate thickness.
)LJXUH
²/DSSHG3DWFK5HSDLU3ODWHVDWWKH([WHUQDO6KHOOWRERWWRP-RLQW
7KHZHOGLQJVKDOOEHFRQWLQXRXVRQWKHRXWHUSHULPHWHURIWKHUHSDLUSODWHDQGWKHLQQHUSHULPHWHURIWKHKROH
LQWKHVKHOOSODWH7KHPLQLPXPKROHGLDPHWHULVLQ6KHOORSHQLQJVGXHWRSODWHUHPRYDOVKDOOKDYHDPLQLPXP
FRUQHUUDGLXVRILQ
1R]]OHQHFNVDQGUHLQIRUFLQJSODWHVVKDOOEHHQWLUHO\UHPRYHGSULRUWRLQVWDOODWLRQRIDUHSDLUSODWH
7KHUHSDLUSODWHWKLFNQHVVVHOHFWLRQVKDOOEHEDVHGRQDGHVLJQWKDWFRQIRUPVWRWKHDVEXLOWVWDQGDUGDQG
$3, XVLQJ D MRLQW HIILFLHQF\ QRW H[FHHGLQJ 7KH ZHOGV RI WKH UHSDLU SODWH VKDOO EH IXOO ILOOHW ZHOGV 7KH
PLQLPXPUHSDLUSODWHGLPHQVLRQVKDOOEHLQZLWKDPLQLPXPRYHUODSRILQDQGDPD[LPXPRYHUODSRIWLPHVWKH
VKHOOWKLFNQHVV t 7KHUHSDLUSODWHWKLFNQHVVVKDOOQRWH[FHHGWKHQRPLQDOWKLFNQHVVRIWKHVKHOOSODWHDGMDFHQWWRWKHUHSDLU
/DSSHGSDWFKUHSDLUSODWHVPD\EHXVHGWRUHLQIRUFHDUHDVRIVHYHUHO\GHWHULRUDWHGVKHOOSODWHVWKDWDUHQRW
DEOHWRUHVLVWWKHVHUYLFHORDGVWRZKLFKWKHWDQNLVWREHVXEMHFWHG/DSSHGSDWFKUHSDLUSODWHVPD\DOVREHXVHGIRU
VKHOOSODWHVWKDWDUHEHORZWKHUHWLUHPHQWWKLFNQHVVSURYLGLQJWKHIROORZLQJDGGLWLRQDOUHTXLUHPHQWVDUHVDWLVILHG
7KHVHOHFWLRQRIWKHUHSDLUSODWHWKLFNQHVVVKDOOEHEDVHGRQDGHVLJQWKDWFRQIRUPVWRWKHDVEXLOWVWDQGDUG
DQG$3,XVLQJDMRLQWHIILFLHQF\QRWH[FHHGLQJ7KHSHULPHWHUZHOGVKDOOEHDIXOOILOOHWZHOG
7KHUHSDLUSODWHWKLFNQHVVVKDOOQRWH[FHHGWKHVKHOOSODWHWKLFNQHVVDWWKHSHULPHWHURIWKHUHSDLUSODWHE\
PRUHWKDQRQHWKLUGEXWQRPRUHWKDQLQ7KHUHSDLUSODWHWKLFNQHVVVKDOOQRWH[FHHGLQ
$3,67$1'$5' 7KHUHPDLQLQJVWUHQJWKRIWKHGHWHULRUDWHGDUHDVXQGHUWKHUHSDLUSODWHVKDOOQRWEHFRQVLGHUHGDVHIIHFWLYH
LQFDUU\LQJWKHFDOFXODWHGVHUYLFHRUK\GURWHVWORDGV
/DSSHGSDWFKUHSDLUSODWHVPD\EHXVHGWRUHSDLUVPDOOVKHOOOHDNVRUPLQLPL]HWKHSRWHQWLDOIURPOHDNVIURP
VHYHUHO\LVRODWHGRUZLGHO\VFDWWHUHGSLWWLQJLIWKHIROORZLQJUHTXLUHPHQWVDUHVDWLVILHG
7KHH[LVWLQJVKHOOWKLFNQHVVH[FOXGLQJWKHKROHVDQGSLWWLQJPHHWVWKHPLQLPXPDFFHSWDEOHVKHOOWKLFNQHVV
DVGHWHUPLQHGE\DQG
7KHUHSDLUSODWHLVGHVLJQHGWRZLWKVWDQGWKHK\GURVWDWLFSUHVVXUHORDGEHWZHHQWKHUHSDLUSODWHDQGWKH
VKHOODVVXPLQJDKROHH[LVWVLQWKHVKHOOXVLQJDMRLQWHIILFLHQF\RI
7KHUHSDLUSODWHWKLFNQHVVVKDOOQRWH[FHHGWKHVKHOOSODWHWKLFNQHVVDWWKHSHULPHWHURIWKHUHSDLUSODWHE\
PRUHWKDQRQHWKLUGEXWQRPRUHWKDQ LQ7KHUHSDLUSODWHWKLFNQHVVVKDOOEHQRWKLQQHUWKDQ LQQRUWKLFNHU
WKDQLQ$IXOOILOOHWSHULPHWHUZHOGLVUHTXLUHG
7KLV UHSDLU PHWKRG VKDOO QRW EH XVHG LI H[SRVXUH RI WKH ILOOHW ZHOGV WR WKH SURGXFW ZLOO SURGXFH FUHYLFH
FRUURVLRQRULIDFRUURVLRQFHOOEHWZHHQWKHVKHOOSODWHDQGUHSDLUSODWHLVOLNHO\WRRFFXU
7KLVUHSDLUPHWKRGVKDOOQRWEHXVHGWRUHSDLUVKHOOOHDNVLIWKHSUHVHQFHRISURGXFWEHWZHHQWKHVKHOOSODWH
DQGUHSDLUSODWHZLOOSUHYHQWJDVIUHHLQJIURPWKHWDQNWRSHUIRUPKRWZRUN
7KH H[LVWLQJ VKHOO SODWH XQGHU WKH UHSDLU SODWH VKDOO EH HYDOXDWHG DW HDFK IXWXUH LQVSHFWLRQ WR HQVXUH LW
VDWLVILHVWKHUHTXLUHPHQWVRI,IWKHH[LVWLQJVKHOOSODWHWKLFNQHVVGRHVQRWVDWLVI\RUWKHUHSDLUSODWHGRHV
QRWVDWLVI\WKHDUHDLVWREHUHSDLUHGLQDFFRUGDQFHZLWKRU
5HSDLUV8VLQJ1RQPHWDOOLF0DWHULDOV
7KLVVHFWLRQRI$3,WRJHWKHUZLWK$QQH[-SURYLGHVWKHVSHFLILFRSWLRQVGHOHWLRQVDGGLWLRQVRUPRGLILFDWLRQVWR
WKH UHTXLUHPHQWV DQG GHVLJQ RSWLRQV IRU QRQPHWDOOLF UHSDLUV ,W LGHQWLILHV WKH UHTXLUHG LQSXWV DQG GHFLVLRQV E\ WKH
3XUFKDVHU,WDOVRSURYLGHVUHFRPPHQGDWLRQVUHTXLUHPHQWVDQGLQIRUPDWLRQWKDWVXSSOHPHQWV$60(3&&$UWLFOH
7KLVVHFWLRQDQG$QQH[-EHFRPHUHTXLUHPHQWVRQO\ZKHQWKH3XUFKDVHUVSHFLILHVDQRSWLRQFRYHUHGE\WKDW
$QQH[ QRW DW WKH &RQWUDFWRU¶V GLVFUHWLRQ 7KH 2ZQHU2SHUDWRU VKDOO DOVR XWLOL]H DQ H[SHULHQFHG VWRUDJH WDQN
HQJLQHHUWRLGHQWLI\WKHOLIHVSDQ WHPSRUDU\RUIL[HGWLPHOLPLWDWLRQ UHTXLUHPHQWVIRUWKHUHSDLUV\VWHP
1RQPHWDOOLFUHSDLUVFDQEHPDGHRQVKHOOSODWHRUQR]]OHQHFNWRUHVWRUHKRRSVWUHQJWKFDSDFLW\ORVWGXHWRFRUURVLRQ
7KH2ZQHU2SHUDWRUVWRUDJHWDQNHQJLQHHUDQGFRPSRVLWHPDQXIDFWXUHUVKDOOHYDOXDWHWKHDELOLW\RIWKHQRQPHWDOOLF
UHSDLUWRUHVWRUHWKHKRRSVWUHQJWKDQGFRQVLGHUWKHSRVVLELOLW\RIQRQWHQVLOHUHODWHGIRUFHVGDPDJLQJWKHFRPSRVLWH
UHSDLULQWKHVHOHFWLRQRIWKHUHSDLUPHWKRGDQGLQWKHULVNDVVHVVPHQW7KHWDQNVKDOOEHDVVHVVHGWRFRQILUPLWLV
VXIILFLHQWWRKDQGOHWHQVLOHH[WHUQDOD[LDOGHDGDQGVHLVPLFORDGV
5HSDLURI'HIHFWVLQ6KHOO3ODWH0DWHULDO
7KHQHHGIRUUHSDLULQJLQGLFDWLRQVVXFKDVFUDFNVJRXJHVRUWHDUV VXFKDVWKRVHRIWHQUHPDLQLQJDIWHUWKHUHPRYDO
RIWHPSRUDU\DWWDFKPHQWV ZLGHO\VFDWWHUHGSLWVDQGFRUURGHGDUHDVGLVFRYHUHGGXULQJDQLQVSHFWLRQRIWKHWDQN
VKHOOVKDOOEHGHWHUPLQHGRQDQLQGLYLGXDOFDVHEDVLVLQDFFRUGDQFHZLWK6HFWLRQ,QDUHDVZKHUHWKHVKHOOSODWH
WKLFNQHVV H[FHHGV WKDW UHTXLUHG E\ GHVLJQ FRQGLWLRQV LW LV SHUPLVVLEOH WR JULQG VXUIDFH LUUHJXODULWLHV WR D VPRRWK
FRQWRXU VR ORQJ DV WKH UHPDLQLQJ WKLFNQHVV LV DGHTXDWH IRU WKH GHVLJQ FRQGLWLRQV :KHUH JULQGLQJ WR D VPRRWKO\
FRQWRXUHG VXUIDFH ZLOO UHVXOW LQ XQDFFHSWDEOH VKHOO SODWH PHWDO WKLFNQHVV WKH VKHOO SODWH PD\ EH UHSDLUHG E\
GHSRVLWLRQRIZHOGPHWDOIROORZHGE\H[DPLQDWLRQDQGWHVWLQJLQDFFRUGDQFHZLWK,IPRUHH[WHQVLYHDUHDVRI
VKHOOSODWHUHTXLUHUHSDLUXVHRIEXWWZHOGHGVKHOOUHSODFHPHQWSODWHRUODSZHOGHGSDWFKSODWHVKDOOEHFRQVLGHUHG
$OWHUDWLRQRI7DQN6KHOOVWR&KDQJH6KHOO+HLJKW
7DQNVKHOOVPD\EHDOWHUHGE\DGGLQJQHZSODWHPDWHULDOWRLQFUHDVHWKHKHLJKWRIWKHWDQNVKHOO7KHPRGLILHGVKHOO
KHLJKW VKDOO EH LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI WKH FXUUHQW DSSOLFDEOH VWDQGDUG DQG VKDOO WDNH LQWR
FRQVLGHUDWLRQDOODQWLFLSDWHGORDGLQJVVXFKDVZLQGDQGVHLVPLF
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
5HSDLURI'HIHFWLYH:HOGV
5HSDLUVRIVKHOOZHOGIODZVDQGGHIHFWVDUHGHVFULEHGLQWKHIROORZLQJVXEVHFWLRQV
&UDFNV ODFN RI IXVLRQ DQG UHMHFWDEOH VODJ DQG SRURVLW\ WKDW QHHG UHSDLU VKDOO EH UHPRYHG FRPSOHWHO\ E\
JRXJLQJDQGRUJULQGLQJDQGWKHUHVXOWLQJFDYLW\SURSHUO\SUHSDUHGIRUZHOGLQJDQGWKHQZHOGHG
([FHVVLYHUHLQIRUFHPHQWVKDOOEHUHSDLUHGE\JULQGLQJLIUHTXLUHGE\
([LVWLQJ ZHOG XQGHUFXW GHHPHG XQDFFHSWDEOH VKDOO EH UHSDLUHG E\ DGGLWLRQDO ZHOG PHWDO RU JULQGLQJ DV
DSSURSULDWH
:HOGHGMRLQWVWKDWKDYHH[SHULHQFHGXQDFFHSWDEOHORVVRIPHWDOGXHWRFRUURVLRQVKDOOEHUHSDLUHGE\JULQGLQJ
DQGRUZHOGLQJ
8QDFFHSWDEOHVXUIDFHGHIHFWVVKDOOEHUHSDLUHGE\JULQGLQJDQGRUZHOGLQJ
$IWHUUHSDLUVRIZHOGGHIHFWVOLVWHGDUHFRPSOHWHGWKHUHSDLUHGDUHDVVKDOOEHH[DPLQHGLQDFFRUGDQFH
ZLWKWKHUHTXLUHPHQWVRIH[FHSWWKDWUHSDLUVIRUXQGHUFXWFRUURVLRQDQGVXUIDFHGHIHFWVLQEXWWZHOGVGRQRW
UHTXLUHUDGLRJUDSKLFRUXOWUDVRQLFH[DPLQDWLRQ
5HSDLURI6KHOO3HQHWUDWLRQV
5HSDLUVWRH[LVWLQJVKHOOSHQHWUDWLRQVVKDOOEHLQFRPSOLDQFHZLWK$3,6HFWLRQ
5HLQIRUFLQJSODWHVPD\EHDGGHGWRH[LVWLQJXQUHLQIRUFHGQR]]OHVZKHQGHHPHGDSSURSULDWH7KHUHLQIRUFLQJ
SODWHVKDOOPHHWDOOGLPHQVLRQDODQGZHOGVSDFLQJUHTXLUHPHQWVRI$3,6HFWLRQ6HH)LJXUHDQG)LJXUH
IRUDFFHSWDEOHGHWDLOV
A
1/4
in. tell tale hole, drill and
tap for 1/8-in. pipe thread
t
T
T or t
(1.5 in. max)
1/16
Tank
shell
Greater
of
2 in. or 6T
in.
A
SECTION A-A
A
t and T
(maximum)
9/16
in.
3/4 in.
A
1/4 in.
5/16 in.
15/16 in.
3/8 in.
1/8 in.
7/16 in.
1
1 5/16 in.
1/2 in.
1 9/16 in.
9/16 in.
1 3/4 in.
5/8 in.
NOTE All details, dimensions, and weld spacing shall be in accordance
with the requirements of API 650.
)LJXUH
²7\SLFDO'HWDLOVIRU$GGLWLRQRI5HLQIRUFLQJ3ODWHWR([LVWLQJ6KHOO3HQHWUDWLRQ
$3,67$1'$5' 1/4-in.
telltale hole, drill and
tap for 1/8-in. pipe thread
A
t
T
T or t
(1.5 in. max)
1/16
Greater
of
2 in. or 6T
Tank
shell
in.
A
B
SECTION A-A
A
t and T
(maximum)
9/16 in.
A
B
1/4 in.
1/4 in.
3/4 in.
5/16 in.
1/4 in.
15/16 in.
3/8 in.
5/16 in.
1 1/8 in.
1 5/16 in.
7/16 in.
5/16 in.
1/2 in.
3/8 in.
9/16 in.
9/16 in.
3/8 in.
5/8 in.
3/8 in.
1
1 3/4 in.
NOTE All details, dimensions, and weld spacing shall be in accordance
with the requirements of API 650.
)LJXUH
²7\SLFDO'HWDLOVIRU$GGLWLRQRI³7RPEVWRQH´6KDSH5HLQIRUFLQJ3ODWHWR([LVWLQJ6KHOO3HQHWUDWLRQ
$VDQDOWHUQDWLYHWKHUHLQIRUFLQJSODWHVPD\EHDGGHGWRWKHLQVLGHRIWKHWDQNSURYLGHGWKDWVXIILFLHQWQR]]OH
SURMHFWLRQH[LVWV
$GGLWLRQRU5HSODFHPHQWRI6KHOO3HQHWUDWLRQV
1HZVKHOOSHQHWUDWLRQV DGGLWLRQRUUHSODFHPHQW VKDOOEHLQDFFRUGDQFHZLWKPDWHULDOGHVLJQDQGVWUHVVUHOLHI
UHTXLUHPHQWVRI$3,6HFWLRQDQGLQDFFRUGDQFHZLWKWKURXJKRIWKLVVWDQGDUG
7KHUHTXLUHGSHQHWUDWLRQUHLQIRUFHPHQWDUHDRI$3,6HFWLRQVKDOOEHGHWHUPLQHGXVLQJWKHUHTXLUHG
VKHOOWKLFNQHVVFDOFXODWHGE\WKHHTXDWLRQLQE RIWKLVVWDQGDUGH[FHSWWKHYDULDEOHSVKDOOEHWKHDOORZDEOH
GHVLJQVWUHVVIURP$3,7DEOHDRU7DEOHEIRUWKHH[LVWLQJVKHOOSODWHXVHOEILQLIRIXQNQRZQ
PDWHULDO$MRLQWHIILFLHQF\RIPD\EHXVHG VHH 7KHYDULDEOHH VKDOOEHWKHKHLJKWIURPWKHFHQWHUOLQHRIWKH
SHQHWUDWLRQWRWKHPD[LPXPOLTXLGOHYHOLQIW
3HQHWUDWLRQVVKDOOEHSUHIDEULFDWHGLQWKHUPDOO\VWUHVVUHOLHYHGLQVHUWDVVHPEOLHVZKHQUHTXLUHGE\$3,
6HFWLRQ$3,6HFWLRQPD\EHXVHGZKHQUHLQIRUFLQJPDWHULDOLVIURP$3,*URXS,9WKURXJK
*URXS9,DQGWKHH[LVWLQJVKHOOLVD*URXS,WKURXJK*URXS,,,$PDWHULDO:KHQLWFDQQRWEHUHDVRQDEO\DVFHUWDLQHG
LQ6HFWLRQWKDWWKHH[LVWLQJPDWHULDOVFRUUHVSRQGLQVWUHQJWKWRPDWHULDOVLQ$3,*URXSV,WKURXJK,,,$
WKHQ WKH UXOHV RI$3, 6HFWLRQ WKDW DUH DSSOLFDEOH WR *URXS,9 WKURXJK *URXS9, PDWHULDOV VKDOO EH
VDWLVILHGXQOHVVDGGUHVVHGE\DSODQUHYLHZHGDQGDSSURYHGE\DVWRUDJHWDQNHQJLQHHU
)RULQVHUWW\SHSHQHWUDWLRQVWKHIROORZLQJHUHFWLRQUHTXLUHPHQWVVKDOOEHPHW
D LIDQLQWHJUDOUHLQIRUFHPHQWGHVLJQLVXVHGZLWKDWKLFNHQHGLQVHUWSODWHWKHWKLFNHQHGLQVHUWSODWHDWLWVSHULSKHU\
VKDOOKDYHDUHGXFWLRQWDSHUWRPDWFKWKHQRPLQDOWKLFNQHVVRIWKHDGMRLQLQJVKHOOPDWHULDO
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
E VSDFLQJRIZHOGVVKDOOEHLQDFFRUGDQFHZLWK)LJXUH
F WKHQHZLQVHUWSODWHRUWKLFNHQHGLQVHUWSODWHVKDOOEHMRLQHGWRWKHH[LVWLQJVKHOOPDWHULDOZLWKIXOOSHQHWUDWLRQDQG
IXOOIXVLRQEXWWZHOGV
([DPLQDWLRQVVKDOOEHSHU6HFWLRQH[FHSWSHQHWUDWLRQVORFDWHGRQDVKHOOMRLQWVKDOOUHFHLYHDGGLWLRQDOVKHOO
UDGLRJUDSK\LQDFFRUGDQFHZLWK$3,6HFWLRQ
3HQHWUDWLRQVODUJHUWKDQ136VKDOOEHLQVWDOOHGZLWKWKHXVHRIDQLQVHUWSODWHRUWKLFNHQHGLQVHUWSODWHLIWKH
VKHOO SODWH WKLFNQHVV LV JUHDWHU WKDQ LQ DQG WKH VKHOO SODWH PDWHULDO GRHV QRW PHHW WKH FXUUHQW GHVLJQ PHWDO
WHPSHUDWXUHFULWHULD,QDGGLWLRQWKHIROORZLQJUHTXLUHPHQWVKDOOEHPHW
D IRUDFLUFXODULQVHUWSODWHRUWKLFNHQHGLQVHUWSODWHWKHPLQLPXPGLDPHWHUVKDOOEHDWOHDVWWKHJUHDWHURI WZLFHWKH
GLDPHWHURIWKHRSHQLQJLQWKHLQVHUWSODWHWKDWDFFRPPRGDWHVWKHUDGLDORULHQWHGQR]]OHRU WKHGLDPHWHURIWKH
RSHQLQJLQWKHLQVHUWSODWHVSOXVLQ
E IRUDQRQFLUFXODULQVHUWSODWHRUWKLFNHQHGLQVHUWSODWHWKHPLQLPXPGLPHQVLRQDFURVVWKHLQVHUWSODWHIURPHQGWR
HQGLQDQ\GLUHFWLRQ LIRWKHUWKDQFLUFXODU VKDOOEHDWOHDVWWKHJUHDWHURI WZLFHWKHGLPHQVLRQRIWKHRSHQLQJLQ
WKHLQVHUWSODWHRUWKLFNHQHGLQVHUWSODWHLQWKDWGLUHFWLRQRU WKHGLPHQVLRQRIWKHRSHQLQJLQWKHLQVHUWSODWHRU
WKLFNHQHGLQVHUWSODWHLQWKDWGLUHFWLRQSOXVLQ
$OWHUDWLRQRI([LVWLQJ6KHOO3HQHWUDWLRQV
([LVWLQJ VKHOO SHQHWUDWLRQV PD\ EH DOWHUHG LI WKH DOWHUHG GHWDLOV FRPSO\ ZLWK WKH UHTXLUHPHQWV RI$3, 6HFWLRQ LQFOXGLQJ WKH UHTXLUHPHQWV IRU PLQLPXP UHLQIRUFLQJ DUHD DQG WKH UHTXLUHPHQWV IRU VSDFLQJ RI ZHOGV
DURXQGFRQQHFWLRQV
:KHQ LQVWDOOLQJ D QHZ WDQN ERWWRP DERYH WKH H[LVWLQJ ERWWRP LW PD\ EH QHFHVVDU\ WR DOWHU H[LVWLQJ VKHOO
SHQHWUDWLRQVLQWKHERWWRPFRXUVHRIDWDQNVKHOO,IWKHQHZERWWRPLVVORWWHGWKURXJKWKHWDQNVKHOOVHYHUDOLQFKHV
DERYHWKHH[LVWLQJERWWRPWKHVSDFLQJEHWZHHQH[LVWLQJZHOGVDURXQGSHQHWUDWLRQVDQGWKHQHZERWWRPWRVKHOOZHOG
PD\QRWFRPSO\ZLWK$3,UHTXLUHPHQWV2SWLRQVIRUDOWHULQJWKHSHQHWUDWLRQVDQGRUUHLQIRUFLQJSODWHVDUHJLYHQLQ
WKURXJK
7KHH[LVWLQJUHLQIRUFLQJSODWHPD\EHWULPPHGWRLQFUHDVHWKHVSDFLQJEHWZHHQWKHZHOGVSURYLGHGWKDWWKH
DOWHUHGGHWDLOFRPSOLHVZLWKWKHUHTXLUHPHQWVRI$3,6HFWLRQ&DUHPXVWEHH[HUFLVHGGXULQJWKHWULPPLQJ
RSHUDWLRQWRDYRLGGDPDJLQJWKHVKHOOPDWHULDOEHQHDWKWKHUHLQIRUFLQJSODWH7KHH[LVWLQJZHOGDWWDFKLQJWKHSRUWLRQ
RIWKHUHLQIRUFLQJSODWHWREHUHPRYHGVKDOOEHFRPSOHWHO\UHPRYHGE\JRXJLQJDQGJULQGLQJ7KHUHTXLUHGVSDFLQJRI
WKHZHOGVPD\EHUHGXFHGSHU D RU E LIWKHUHTXLUHPHQWVRI F G DQG H DUHPHW
7KHH[LVWLQJUHLQIRUFLQJSODWHPD\EHUHPRYHGDQGDQHZUHLQIRUFLQJSODWHDGGHGH[FHSWWKDWUHLQIRUFLQJ
SODWHUHSODFHPHQWLVQRWSHUPLWWHGLQH[LVWLQJVWUHVVUHOLHYHGDVVHPEOLHVXQOHVVWKHUHTXLUHPHQWVRIDUHPHW,ILW
LVQRWNQRZQZKHWKHUWKHDVVHPEO\ZDVWKHUPDOO\VWUHVVHGUHOLHYHGWKHQWKHDOWHUDWLRQVKDOOPHHWWKHUHTXLUHPHQWV
RI$3,6HFWLRQ&DUHPXVWEHH[HUFLVHGZKHQUHPRYLQJWKHH[LVWLQJUHLQIRUFLQJSODWHWRDYRLGGDPDJLQJ
WKH VKHOO SODWH EHQHDWK WKH UHLQIRUFLQJ SODWH :KHQ WKH XSSHU KDOI RI WKH H[LVWLQJ UHLQIRUFLQJ SODWH PHHWV DOO
UHTXLUHPHQWVRI$3,LWFDQEHOHIWLQSODFHZLWKDSSURYDORIWKHSXUFKDVHU,QWKLVFDVHRQO\WKHORZHUKDOIRIWKH
H[LVWLQJUHLQIRUFLQJSODWHQHHGEHUHPRYHGDQGUHSODFHGZLWKWKHQHZRQH7KHH[LVWLQJXSSHUKDOIRIWKHUHLQIRUFLQJ
SODWHDQGWKHQHZORZHUVHFWLRQVKDOOEHSURYLGHGZLWKDQHZWHOOWDOHKROHLIQHHGHGRUGULOOHGKROHDQGDZHOGHG
SLSHFRXSOLQJIRUWKHSQHXPDWLFWHVW7KHVKHOOSODWHWKLFNQHVVXQGHUWKHWHOOWDOHKROHRUGULOOHGKROHVKDOOEHFKHFNHG
DIWHU GULOOLQJ DQG WKH WKLFNQHVV VKDOO QRW EH OHVV WKDQ tPLQ DV FDOFXODWHG LQ SOXV DQ\ UHTXLUHG FRUURVLRQ
DOORZDQFH7KHZHOGVWREHUHSODFHGDURXQGWKHSHULPHWHURIWKHUHLQIRUFLQJSODWHDQGEHWZHHQWKHUHLQIRUFLQJSODWH
DQGQHFNRIWKHSHQHWUDWLRQVKDOOEHFRPSOHWHO\UHPRYHGE\JRXJLQJDQGJULQGLQJ7KHQHZUHLQIRUFLQJSODWHVKDOOEH
LQDFFRUGDQFHZLWK)LJXUH,IUHTXLUHGWRPDLQWDLQZHOGVSDFLQJDWRPEVWRQHVKDSHGUHLQIRUFLQJSODWHPD\EH
XVHG VHH)LJXUH $3,67$1'$5' 7KH H[LVWLQJ SHQHWUDWLRQ PD\ EH PRYHG E\ FXWWLQJ WKH VHFWLRQ RI WKH VKHOO FRQWDLQLQJ WKH ILWWLQJ DQG
UHLQIRUFLQJSODWHDQGUDLVLQJWKHHQWLUHDVVHPEO\WRWKHFRUUHFWHOHYDWLRQ VHH)LJXUH 7KHQHZVKHOOVHDPVPDGH
WRUDLVHWKHSHQHWUDWLRQVKDOOFRPSO\ZLWK)LJXUHLQFOXGLQJWKHVKHOOWRERWWRPVHDP
Cut lines in shell plate
R—see Figure 9.1
+
R—see Figure 9.1
Top of
proposed
new bottom
+
Old bottom
Reinforcing plate
BEFORE RAISING
Spacing per
Section 5.7.3
of API 650,
or as permitted
per 9.11.2.4
Filler plate
same thickness
as shell
New bottom
Old bottom
AFTER RAISING
)LJXUH
²0HWKRGIRU5DLVLQJ6KHOO1R]]OHV
$Q\FRPSRQHQWVRIWKHSHQHWUDWLRQ QHFNIODQJHDQGUHLQIRUFLQJSODWH WKDWDUHLQVHUYLFHDEOHFRQGLWLRQDIWHU
UHPRYDOPD\EHUHXVHG
$QHZERWWRPPD\EHLQVWDOOHGWKURXJKDQH[LVWLQJWRPEVWRQHUHLQIRUFLQJSODWHSURYLGHGDOOZHOGVSDFLQJ
DQGUHLQIRUFHPHQWUHTXLUHPHQWVDVVSHFLILHGLQ$3,DUHPHW2QHRIWKHIROORZLQJPHWKRGVVKDOOEHXVHG
D 5HPRYHRQO\WKDWSRUWLRQRIWKHH[LVWLQJUHLQIRUFLQJSODWHQHFHVVDU\WRZHOGDQGWHVWWKHQHZERWWRPWRVKHOOZHOG
7KH ORZHUHGJHRI WKHUHLQIRUFLQJSODWHVKDOOEHFXW UHDVRQDEO\VWUDLJKW DQGKRUL]RQWDODQGEHYHOHGWR IDFLOLWDWH
ZHOGLQJ6HH)LJXUHIRUZHOGMRLQWGHWDLOV
E %HYHOWKHVKHOOIURPWKHLQVLGHWRDOORZIRUDIXOOSHQHWUDWLRQZHOGEHWZHHQWKHERWWRPDQGVKHOO7KLVPHWKRG
VKDOORQO\EHXVHGRQWDQNVZKHUHWKHDQQXODUSODWHRUERWWRPVNHWFKSODWHWKLFNQHVVLVHTXDOWRRUJUHDWHU
WKDQ
PP LQ 7KLVZHOGGHWDLOVKDOOEHXVHGDORQJWKHIXOOZLGWKRIWKHUHLQIRUFLQJSODWHDQGVKDOOH[WHQG
DPLQLPXPRIPP LQ EH\RQGWKHHGJHVRIWKHUHLQIRUFLQJSODWH2QFHEH\RQGWKHUHLQIRUFLQJSODWHWKH
IXOO SHQHWUDWLRQ ZHOG VKDOO WLH LQ WR WKH RXWVLGH VKHOOWRERWWRP ILOOHW ZHOG WR FUHDWH D ³ZDWHU VWRS´ DQG WKHQ
WUDQVLWLRQWRWKHW\SLFDOVKHOOWRERWWRPZHOGGHWDLO6HH)LJXUHIRUZHOGMRLQWGHWDLOV
F 7KHERWWRPSRUWLRQRIWKHUHLQIRUFLQJSODWHPD\EHUHPRYHGXVLQJDKRUL]RQWDOFXWEHWZHHQWKHERWWRPLQYHUW
RIWKHQR]]OHQHFNDQGWKHQHZERWWRPSHUUHTXLUHPHQWVRI)LJXUH7KHUHPRYHG RUQHZ UHLQIRUFLQJ
SODWHVKDOOEHSUHSDUHGIRUDIXOOIXVLRQVSOLFHZHOGZLWKWHOOWDOHKROHDGGHG VHH)LJXUH 7KHUHPRYHG RU
QHZ UHLQIRUFLQJSODWHVKDOOEHUHLQVWDOOHGDIWHUWKHVKHOOWRERWWRPZHOGKDVEHHQFRPSOHWHGLQVSHFWHGDQG
WHVWHG7KHVSOLFHZHOGVKDOOEHPDGHSULRUWRWKHUHLQIRUFLQJSODWHZHOGWRERWWRPSODWHZHOG7KHFRPSOHWHG
VSOLFHZHOGVKDOOEHPDJQHWLFSDUWLFOHH[DPLQHG
G 7KHORZHUSRUWLRQRIWKHH[LVWLQJUHLQIRUFLQJSODWHPD\EHUHPRYHGDQGUHLQVWDOOHGDIWHUWKHQHZVKHOOWRERWWRPZHOG
LVFRPSOHWH7KHH[LVWLQJUHLQIRUFLQJSODWHVKDOOEHFXWDWWKHKRUL]RQWDOFHQWHUOLQHRIWKHQR]]OH7HOOWDOHKROHVDUH
UHTXLUHGLQERWKSDUWVRIWKHUHLQIRUFLQJSODWH VHH)LJXUH H 7KH H[LVWLQJ UHLQIRUFLQJ SODWH PD\ EH UHPRYHG PRGLILHG DQG UHLQVWDOOHG DIWHU WKH QHZ VKHOOWRERWWRP ZHOG LV
FRPSOHWH VHH)LJXUH 7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
Centerline of nozzle
Existing shell penetration
(existing welds not shown)
Existing tombstone
reinforcing plate
See Note 1
Tank shell
T
t
Fillet weld sizes per
API 650, Section 5.1.5.7
New bottom or
annular plate
Not less than the greater of T/2
or the fillet size determined
from API 650, Section 5.1.5.7
NOTE 1 In using this detail, it must be confirmed that the distance from top of
new bottom to center of nozzle meets API 650, Table 5.6a or Table 5.6b.
NOTE 2 All welds shown shall be individually examined to API 650, Section
7.2.4.
)LJXUH ²'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH
127( 2SWLRQVG DQGH DUHQRWSHUPLWWHGRQH[LVWLQJSRVWZHOGKHDWWUHDWHGQR]]OHVXQOHVVWKHUHTXLUHPHQWVRIDUHPHW
127( 7RPLQLPL]H GDPDJHWR WKH VKHOO SODWHVXFKWKDW UHSDLUV FDQ EH PDGH FDUH PXVW EH H[HUFLVHG ZKHQUHPRYLQJWKH
H[LVWLQJUHLQIRUFLQJSODWH
5HSDLURI7DQN%RWWRPV
5HSDLULQJD3RUWLRQRI/DSZHOGHGRU%XWWZHOGHG7DQN%RWWRPV
*HQHUDO5HSDLU5HTXLUHPHQWV
7KHXVHRIZHOGHGRQSDWFKSODWHVIRUUHSDLULQJDSRUWLRQRIXQLIRUPO\VXSSRUWHGWDQNERWWRPVLVSHUPLWWHGZLWKLQWKH
OLPLWDWLRQVJLYHQLQWKLVVHFWLRQDQG6HH)LJXUHIRUDFFHSWDEOHGHWDLOVIRUZHOGHGRQSDWFKSODWHV
D 7KHPLQLPXPGLPHQVLRQIRUDZHOGHGRQSDWFKSODWHWKDWRYHUODSVDERWWRPVHDPRUH[LVWLQJSDWFKLVLQ7KH
ZHOGHGRQSDWFKSODWHPD\EHFLUFXODUREORQJRUSRO\JRQDOZLWKURXQGHGFRUQHUV
E $ZHOGHGRQSDWFKSODWHVPDOOHUWKDQLQLQGLDPHWHULVSHUPLWWHGLILWGRHVQRWRYHUODSDERWWRPVHDPLWLVQRW
SODFHGIXOO\RUSDUWLDOO\RYHUDQH[LVWLQJSDWFKDQGLWH[WHQGVEH\RQGWKHFRUURGHGERWWRPDUHDLIDQ\E\DWOHDVW
LQ7KLVSDWFKSODWHPXVWEHQRVPDOOHUWKDQLQDFURVVLQDQ\GLUHFWLRQ
$3,67$1'$5' Centerline of nozzle
Existing shell penetration
H[LVWLQJZHOGVQRWVKRZQ
Existing tombstone
reinforcing plate
See Note 1
Fillet weld sizes per
API 650, Section 5.1.5.7
Tank shell
Full penetration
weld
New bottom or
DQQXODUSODWH•PP 3/8 in.)
NOTE 1 In using this detail, it must be confirmed that the distance from top of
new bottom to center of nozzle meets API 650, Table 5.6a or Table 5.6b.
NOTE 2
7.2.4.
All welds shown shall be individually examined to API 650, Section
)LJXUH
²'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH
F :HOGHGRQSDWFKSODWHVVKDOOQRWEHSODFHGRYHUDUHDVRIWKHWDQNERWWRPWKDWKDYHJOREDOGLVKLQJORFDOGLVKLQJ
>H[FHSWDVDOORZHGE\G @VHWWOHPHQWRUGLVWRUWLRQJUHDWHUWKDQWKHOLPLWVRI$QQH[%
127(
,IWKHWDQNLVVWLOOXQGHUJRLQJVHWWOHPHQWWKHDGGLWLRQRIZHOGHGRQSDWFKSODWHPD\QRWEHDGYLVDEOH
G $ZHOGHGRQSDWFKSODWHPD\EHSODFHGRYHUDPHFKDQLFDOGHQWRUORFDOGLVKLQJLILWVXQVXSSRUWHGGLPHQVLRQGRHV
QRWH[FHHGLQLQDQ\GLUHFWLRQLWLVDWOHDVWLQWKLFNLWLVDWOHDVWDVWKLFNDVWKHH[LVWLQJERWWRPDQGGRHVQRW
RYHUODSVHDPVQRURWKHUSDWFKHVH[FHSWIRUWDQNVGHVLJQHGLQDFFRUGDQFHZLWK$3,$QQH[0ZKLFKVKDOO
KDYHZHOGHGRQSDWFKSODWHVDWOHDVWLQWKLFN
H 7KHVHUHSDLUVDUHSHUPDQHQWUHSDLUVVXEMHFWWRDQRQJRLQJLQVSHFWLRQDQGPDLQWHQDQFHSURJUDP
I ,QVWDOODWLRQRIDQHZVXPSVKDOOFRQIRUPWRWKHIROORZLQJLQ$3,6WDQGDUG6HFWLRQ7DEOHVDDQG
EDQG)LJXUH
J 'LPHQVLRQVJLYHQDUHIURPWRHRIILOOHWZHOGVRUWRWKHFHQWHUOLQHRIWKHEXWWZHOGDQGDOVRDSSO\WRQHZWRH[LVWLQJ
ZHOGV
K :KHQWKHHGJHRIDZHOGHGRQSDWFKSODWHLVDSSUR[LPDWHO\SDUDOOHOWRDERWWRPVHDPWKHHGJHVKDOOEHKHOGDW
OHDVWLQIURPZHOGVHDP3DWFKSODWHVQRWFURVVLQJDQH[LVWLQJERWWRPODSMRLQWVKDOOEHQRFORVHUWKDQLQIURP
DQ\RWKHUERWWRPODSZHOG
L 3DWFKSODWHVFRYHULQJSODWHODSVVKDOOH[WHQGDPLQLPXPRI LQLQDOOGLUHFWLRQVDORQJDOOERWWRPODSZHOGV
EH\RQGWKHSODWHODS
M 3DWFKSODWHVFURVVLQJDQH[LVWLQJERWWRPODSZHOGVKDOOEHQRFORVHUWKDQLQWRDQDGMDFHQWSODWHODS
N 3DWFKHVFURVVLQJH[LVWLQJERWWRPODSVHDPVPXVWFURVVFUHDWLQJDQDQJOHRIQROHVVWKDQGHJUHHV3DWFKHV
RYHUWKUHHSODWHODSMRLQWVVKDOOFURVVWKHVHDPVDWHLWKHUGHJUHHVRUGHJUHHV
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
Centerline of nozzle
Existing shell penetration
Existing welds
Existing tombstone
reinforcing plate
H
(min.)
Full penetration weld
See Note 1
Tank shell
T
t
J
(min.)
Telltale
Reinstalled existing
or new reinforcing plate
Fillet weld sizes per
API 650, Section 5.1.5.7
New bottom
or annular plate
Material
Thickness
Case 1, 2, and 3
t”1 2 in.
t!1 2 in.
t!1 2 in.
t!1 2 in.
Case 1:
Case 2:
Case 3:
H
(the larger of)
J
(the larger of)
3 in.
3 in.
1
LQRU
2t
4 in. or 4t
3 in. or 4tw
5 in. or 4t
5 in. or 4tw
3 in. or 4tw
where tw is the required weld size from API 650, Section 5.1.5.7.
Case 1—Shell material meets API 650, Seventh Edition or later toughness requirements and opening was PWHT’d.
Case 2—Shell material meets API 650, Seventh Edition or later toughness requirements.
Case 3—Shell material does not meet API 650, Seventh Edition or later toughness requirements.
NOTE 1 In using this detail, it must be confirmed that the distance from top of new bottom to
center of nozzle meets API 650, Table 5.6a or Table 5.6b and that additionally there is sufficient space
to provide the minimum H and J spacings.
NOTE 2
All welds shown shall be individually examined to API 650, Section 7.2.4.
)LJXUH
²'HWDLOVIRU,QVWDOOLQJD1HZ%RWWRP7KURXJKDQ([LVWLQJ7RPEVWRQH5HLQIRUFLQJ3ODWH
ƒ
PLQ
LQ
PLQ
)LJXUH ²7\SLFDO:HOGHGRQ3DWFK3ODWHVRQ7DQN%RWWRP3ODWHV
$
Q
L Q
PL
%RWWRPFRUURGHG
DUHDLIDQ\
PLQ
L
LQ
PLQ
7KHJUHDWHURILQ
9HUWLFDO
VKHOOZHOGV RUW 6HHM
PLQ
6HHL
$
Q
L Q
PL
LQ
6HH
PLQ
LQ
Q
L
Q
PL
Q
L
Q
PL
6KHOO
Q
L Q
PL
LQPLQ
UDGLXV
W
ƒRUƒ
LQ
6HHK
6HFWLRQ$$
7\SLFDO
WRPEVWRQHVKDSHG
ZHOGRQSODWHV
)RUZHOGRQ
SODWHVOHVVWKDQ
LQGLPHQVLRQ
6HHE
%RWWRPSODWHRU
DQQXODUSODWHULQJ
LQ
&ULWLFDO
]RQH
Q
L
Q
PL
LQ
PLQ
:HOGHGRQSDWFKSODWH
LQPD[LPXP
WKLFNQHVVLQWKH
FULWLFDO]RQH
LQ
LQ
P
LQ
LQ
Q
PL
LQ
Q
PL
3ODWHODS
6HHL
PLQ
$3,67$1'$5'
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
5HSDLUVZLWKLQWKH&ULWLFDO=RQH
7KHXVHRIZHOGHGRQSDWFKSODWHVLVSHUPLWWHGIRUUHSDLULQJDSRUWLRQRIWDQNERWWRPVZLWKLQWKHFULWLFDO]RQH VHH
IRUGHILQLWLRQ SURYLGHGUHTXLUHPHQWVDQGWKHIROORZLQJDGGLWLRQDOUHTXLUHPHQWVDUHPHW
D 0D[LPXPSODWHWKLFNQHVVIRUZHOGHGRQSDWFKSODWHVZLWKLQWKHFULWLFDO]RQHLVLQDQGPXVWPHHWWKHWRXJKQHVV
UHTXLUHPHQWVRI$3,6HFWLRQ
E :KHQDZHOGHGRQSDWFKSODWHLVZLWKLQLQRIWKHVKHOOWKHZHOGHGRQSDWFKSODWHVKDOOEHWRPEVWRQHVKDSHG
7KHVLGHVRIWKHWRPEVWRQHVKDSHGZHOGHGRQSDWFKSODWHVKDOOLQWHUVHFWWKHVKHOOWRERWWRPMRLQWDWDSSUR[LPDWHO\
q
F 3HULPHWHUZHOGVRQZHOGHGRQSDWFKSODWHVZLWKLQWKHFULWLFDO]RQHVKDOOEHWZRSDVVPLQLPXPDQGH[DPLQHGSHU
DQG
G ,QVWDOODWLRQRIDZHOGHGRQSDWFKSODWHE\EXWWZHOGLQJWRDQDGMDFHQWH[LVWLQJSDWFKLVQRWSHUPLWWHGLQWKHFULWLFDO
]RQH
H :HOGHGRQSDWFKSODWHVRYHUH[LVWLQJSDWFKHVDUHQRWDOORZHGLQWKHFULWLFDO]RQH
I 7KHERWWRPSODWHXQGHUWKHSHULPHWHURIDZHOGHGRQSDWFKSODWHVKDOOPHHWWKHWKLFNQHVVUHTXLUHPHQWVLQ
J )RU WDQNV ZLWK VKHOO SODWH RI XQNQRZQ WRXJKQHVV GHILQHG LQ 6HFWLRQ QHZ ILOOHW ZHOGV XWLOL]HG WR LQVWDOO D
WRPEVWRQHSDWFKSODWHLQWKHFULWLFDO]RQHVKDOOEHVSDFHGDWOHDVWWKHJUHDWHURILQRUtIURPH[LVWLQJYHUWLFDO
ZHOGMRLQWVLQWKHERWWRPVKHOOFRXUVHZKHUHtLVWKHWKLFNQHVVRIWKHERWWRPVKHOOFRXUVHLQLQFKHV6HH)LJXUH
IRUIXUWKHUJXLGDQFHRQZHOGVSDFLQJ
K 0LQLPXPGLPHQVLRQEHWZHHQWZRZHOGHGRQSDWFKSODWHVLQWKHFULWLFDO]RQHVKDOOEHRQHKDOIRIWKHGLPHQVLRQ
DSSUR[LPDWHO\SDUDOOHOWRWKHVKHOORIWKHVPDOOHUSDWFK
L 7KHPD[LPXPGLPHQVLRQDORQJWKHVKHOOIRUZHOGHGRQSDWFKSODWHVLQWKHFULWLFDO]RQHLVLQ
M 'LPHQVLRQVWRYHUWLFDOVKHOOZHOGVDSSO\WRVKHOOVRIXQNQRZQWRXJKQHVV
127(
7KHERWWRPSODWHWKLFNQHVVDWWKHDWWDFKPHQWZHOGPXVWEHDWOHDVWLQWKLFNEHIRUHZHOGLQJWKHZHOGHGRQSDWFKSODWH
WRWKHERWWRPSODWH5HIHUWR$3,IRUIXUWKHULQIRUPDWLRQ
1R ZHOGLQJ RU ZHOG RYHUOD\V DUH SHUPLWWHG ZLWKLQ WKH FULWLFDO ]RQH H[FHSW IRU WKH ZHOGLQJ RI ZLGHO\
VFDWWHUHGSLWV VHH SLQKROHVFUDFNVLQWKHERWWRPSODWHVWKHVKHOOWRERWWRPZHOGZHOGHGRQSDWFKSODWHVRU
ZKHUHWKHERWWRPSODWHZHOGHGWRWKHVKHOOLVEHLQJUHSODFHG
$ZHOGHGRQSDWFKSODWHVKDOOQRWEHXVHGLIWKHFRYHUHGERWWRPSODWHPLQLPXPUHPDLQLQJWKLFNQHVVDW
WKHWRHRIWKHLQWHUQDOVKHOOWRERWWRPZHOGZLOOEHOHVVWKDQWKHPLQLPXPWKLFNQHVVUHTXLUHGE\DQGDWWKH
QH[WLQWHUQDOLQVSHFWLRQ :HOGHGRQ SDWFK SODWHV DUH QRW SHUPLWWHG LQ WKH FULWLFDO ]RQH RQ D WDQN ERWWRP ZLWK DQ RSHUDWLQJ
WHPSHUDWXUHH[FHHGLQJq)IRUFDUERQVWHHORUq)IRUVWDLQOHVVVWHHO
,IPRUHH[WHQVLYHUHSDLUVDUHUHTXLUHGZLWKLQWKHFULWLFDO]RQHWKDQWKRVHOLVWHGLQWKHERWWRP
SODWHZHOGHGWRWKHVKHOOVKDOOEHFXWRXWDQGDQHZSODWHVKDOOEHLQVWDOOHG:HOGVSDFLQJUHTXLUHPHQWVVKDOOEHLQ
DFFRUGDQFH ZLWK DQG$3, 6HFWLRQ DQG 6HFWLRQ 7KH VKHOOWRERWWRP ZHOG VKDOO EH
UHPRYHGDQGUHSODFHGIRUDPLQLPXPGLVWDQFHRILQRQHDFKVLGHRIWKHQHZERWWRPSODWH
7KHXVHRIZHOGHGRQSDWFKSODWHVWKDWGRQRWPHHWWKHUHTXLUHPHQWVRIRULVSHUPLWWHGLI
WKH UHSDLU PHWKRG KDV EHHQ UHYLHZHG DQG DSSURYHG E\ DQ HQJLQHHU H[SHULHQFHG LQ VWRUDJH WDQN GHVLJQ LQ
$3,67$1'$5' DFFRUGDQFH ZLWK$3, 7KH UHYLHZ VKDOO FRQVLGHU EULWWOH IUDFWXUH VWUHVV GXH WR VHWWOHPHQW VWUHVV GXH WR VKHOO
ERWWRPGLVFRQWLQXLW\PHWDOWHPSHUDWXUHIUDFWXUHPHFKDQLFVDQGWKHH[WHQWDQGTXDOLW\RI1'(
8QDFFHSWDEOH LQGLFDWLRQV VXFK DV FUDFNV JRXJHV WHDUV DQG FRUURGHG DUHDV GLVFRYHUHG LQ ERWWRP
SODWHVORFDWHGRXWVLGHWKHFULWLFDO]RQHPD\EHUHSDLUHGE\GHSRVLWLRQRIZHOGPHWDOIROORZHGE\H[DPLQDWLRQDQG
WHVWLQJLQDFFRUGDQFHZLWK6XUIDFHLUUHJXODULWLHVDQGFRQWDPLQDWLRQZLWKLQWKHDUHDWREHUHSDLUHGVKDOOEH
UHPRYHGEHIRUHZHOGLQJ
7KHUHSDLURIVXPSVORFDWHGZLWKLQWKHFULWLFDO]RQHVKDOOEHLQDFFRUGDQFHZLWK
7KHUHSDLURIFRUURGHGSODWHVLQWKHFULWLFDO]RQHLVOLPLWHGWRSLWZHOGLQJRURYHUOD\ZHOGLQJDVQRWHGLQWKLV
VHFWLRQ7KHZHOGUHSDLURIERWWRPSODWHFRUURVLRQLVSHUPLWWHGLIDOORIWKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG
D 7KHVXPRIWKHSLWGLPHQVLRQVDORQJDQDUFSDUDOOHOWRWKHVKHOOWRERWWRPMRLQWGRHVQRWH[FHHGLQLQDQLQ
OHQJWK
E 7KHUH PXVW EH VXIILFLHQW UHPDLQLQJ ERWWRP SODWH WKLFNQHVV IRU FRPSOHWLRQ RI D VRXQG ZHOG DQG WR DYRLG EXUQ
WKURXJK7KHPLQLPXPDFFHSWDEOHERWWRPSODWHWKLFNQHVVIRUZHOGUHSDLUVLVLQ$OHVVHUWKLFNQHVVLVSHUPLWWHG
IRUZHOGUHSDLUVRQO\LIUHYLHZHGDQGDSSURYHGE\DQHQJLQHHUH[SHULHQFHGLQVWRUDJHWDQNGHVLJQDQGUHSDLU
F $OO ZHOG UHSDLUV VKDOO EH JURXQG IOXVK ZLWK WKH VXUURXQGLQJ SODWH PDWHULDO DQG EH H[DPLQHG LQ DFFRUGDQFH ZLWK
5HSODFHPHQWRI7DQN%RWWRP3ODWHV
5HTXLUHPHQWV JRYHUQLQJ WKH LQVWDOODWLRQ RI D UHSODFHPHQW ERWWRP RYHU DQ H[LVWLQJ ERWWRP DUH JLYHQ LQ
WKURXJK
6XLWDEOHQRQFRUURVLYHPDWHULDOFXVKLRQVXFKDVVDQGJUDYHORUFRQFUHWHVKDOOEHXVHGEHWZHHQWKHROG
ERWWRPDQGWKHQHZERWWRP
7KHVKHOOVKDOOEHVORWWHGZLWKDXQLIRUPFXWPDGHSDUDOOHOWRWKHWDQNERWWRP7KHFXWHGJHVLQWKHVORW
VKDOOEHJURXQGWRUHPRYHDOOVODJDQGEXUUVIURPFXWWLQJRSHUDWLRQV7KHQHZERWWRPSODWHVKDOOH[WHQGRXWVLGHWKH
VKHOODVUHTXLUHGE\$3,6HFWLRQ$OOUXOHVIRUZHOGVSDFLQJVKDOOEHIROORZHG
9RLGV LQ WKH IRXQGDWLRQ EHORZ WKH ROG ERWWRP VKDOO EH ILOOHG ZLWK VDQG FUXVKHG OLPHVWRQH JURXW RU
FRQFUHWH
([FHSW DV SHUPLWWHG LQ H[LVWLQJ VKHOO SHQHWUDWLRQV VKDOO EH UDLVHG RU WKHLU UHLQIRUFLQJ SODWHV
PRGLILHGLIWKHHOHYDWLRQRIWKHQHZERWWRPUHVXOWVLQLQDGHTXDWHQR]]OHUHLQIRUFHPHQWGHWDLOV VHH)LJXUHDQG$3,
6HFWLRQ RULIWKHZHOGVSDFLQJUHTXLUHPHQWVJLYHQLQ$3,6HFWLRQDUHQRWPHW
)RUIORDWLQJURRIWDQNVWKHQHZERWWRPSURILOHPXVWNHHSWKHURRIOHYHOZKHQLWLVUHVWLQJRQLWVVXSSRUW
OHJV7KHOHYHOQHVVRIWKHIORDWLQJURRIFDQEHDGMXVWHGE\FKDQJLQJWKHOHQJWKRIWKHVXSSRUWOHJV7KHVXSSRUWOHJV
FDQHLWKHUUHPDLQWKHVDPHOHQJWKWRPDLQWDLQWKHRULJLQDOKHLJKWDERYHWKHERWWRPRUEHVKRUWHQHGE\WKHVDPH
DPRXQWDVWKHWKLFNQHVVRIWKHFXVKLRQDQGQHZERWWRPSODWH
1HZEHDULQJSODWHVIRUIL[HGURRIVXSSRUWFROXPQVVKDOOEHLQVWDOOHG)RUVWHHOIORDWLQJURRIOHJVVWHHOSDGVRU
RWKHUPHDQVVKDOOEHXVHGWRGLVWULEXWHWKHORDGVRQWKHERWWRPRIWKHWDQNDQGSURYLGHDZHDUVXUIDFH,ISDGVDUHXVHG
WKH\VKDOOEHFRQWLQXRXVO\ZHOGHGWRWKHWDQNERWWRP)RUDOXPLQXPIORDWLQJURRIVWKHSDGVPD\EHRPLWWHGLIWKHRZQHU
RSHUDWRU DSSURYHVDQGQHZDXVWHQLWLFVWDLQOHVVVWHHORUDFFHSWDEOHQRQPHWDOOLF HJ7HIORQ VSDFHUVDUHLQVWDOOHGWR
LVRODWH OHJV IURP WKH FDUERQ VWHHO ERWWRP )RU DOXPLQXP IORDWLQJ URRIV DXVWHQLWLF VWDLQOHVV VWHHO RU DFFHSWDEOH QRQ
PHWDOOLF HJ7HIORQ VSDFHUVPD\LQVWDOOHGWRLVRODWHOHJVIURPWKHFDUERQVWHHOERWWRPLQVWHDGRIZHOGHGSDGVLIWKH
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
VSDFHUVZLOOQRWGDPDJHERWWRPFRDWLQJVWKHUHLVQRHYLGHQFHRIFRUURVLRQGDPDJHIURPVXFKVSDFHUVRQWKHSUHYLRXV
ERWWRPDQGLIWKHRZQHURSHUDWRUDSSURYHV
:KHQUHPRYLQJDQH[LVWLQJWDQNERWWRPWKHWDQNVKHOOVKDOOEHVHSDUDWHGIURPWDQNERWWRPHLWKHUE\
D FXWWLQJWKHVKHOOSDUDOOHOWRWKHWDQNERWWRPDPLQLPXPRI LQDERYHWKHERWWRPWRVKHOOZHOG FXWOLQH%%DV
VKRZQLQ)LJXUH RU
E UHPRYLQJWKHHQWLUHVKHOOWRERWWRPDWWDFKPHQWZHOGLQFOXGLQJDQ\SHQHWUDWLRQDQGKHDWDIIHFWHG]RQHE\VXLWDEOH
PHWKRGVVXFKDVDUFJRXJLQJDQGRUJULQGLQJ
$OO DUFJRXJHG DUHDV RI WKH WDQN VKHOOWRERWWRP ZHOG VKDOO EH PDJQHWLF SDUWLFOH H[DPLQHG DQG GHIHFWLYH DUHDV
UHSDLUHGDQGUHH[DPLQHG
,QVWDOODWLRQRIDQHZWDQNERWWRPDIWHUUHPRYDORIWKHH[LVWLQJWDQNERWWRPVKDOOPHHWDOOUHTXLUHPHQWVRI
$3,
([FHSW DV SHUPLWWHG LQ H[LVWLQJ VKHOO SHQHWUDWLRQV VKDOO EH UDLVHG RU WKHLU SHQHWUDWLRQ UHLQIRUFLQJ
SODWHVPRGLILHGLIWKHHOHYDWLRQRIWKHQHZERWWRPUHVXOWVLQLQDGHTXDWHQR]]OHUHLQIRUFHPHQW VHH)LJXUHDQG$3,
6HFWLRQ RULIWKHZHOGVSDFLQJUHTXLUHPHQWVJLYHQLQ$3,6HFWLRQDUHQRWPHW)RUWDQNVZLWKVKHOO
SODWHRIXQNQRZQWRXJKQHVVDVGHILQHGLQ6HFWLRQQHZZHOGMRLQWVLQWKHERWWRPRUDQQXODUULQJVKDOOEHVSDFHGDW
OHDVWWKHJUHDWHURILQRUtIURPH[LVWLQJYHUWLFDOZHOGMRLQWVLQWKHERWWRPVKHOOFRXUVHZKHUHtLVWKHWKLFNQHVVRIWKH
ERWWRPVKHOOFRXUVHLQLQFKHV
5HSODFHPHQWRISRUWLRQVRIDQH[LVWLQJWDQNERWWRP HQWLUHUHFWDQJXODUSODWHVRUODUJHVHJPHQWVRISODWHV QRW ZLWKLQ WKH FULWLFDO ]RQH VHH IRU GHILQLWLRQ DUH SHUPLWWHG XQGHU WKH VDPH UXOHV WKDW JRYHUQ LQVWDOODWLRQ RI
ERWWRPVLQQHZWDQNFRQVWUXFWLRQSHU$3,6HFWLRQVDQG
7KHIROORZLQJVKDOOEHFRQVLGHUHGIRUWDQNVZLWKFDWKRGLFSURWHFWLRQDQGXQGHUERWWRPOHDNGHWHFWLRQ
D )RU WDQNV KDYLQJ FDWKRGLF SURWHFWLRQ &3 LQVWDOOHG XQGHU WKH H[LVWLQJ ERWWRP FRQVLGHUDWLRQ VKDOO EH JLYHQ WR
UHPRYDORIWKHHQWLUHERWWRPDQGXQXVHGGHDGVKHOOWRSUHYHQWVKLHOGLQJRI&3FXUUHQWWRWKHQHZERWWRP5HPRYDO
RI WKH ROG ERWWRP LV DOVR LPSRUWDQW LQ SUHYHQWLQJ JDOYDQLF FRUURVLRQ UHIHU WR$3, :KHUH WKLV LV SRVVLEOH
UHPRYDO RI WKH HQWLUH ROG ERWWRP H[FHSW WKH XQXVHG GHDG VKHOO DQG QRW PRUH WKDQ LQ RI ERWWRP DQQXOXV
DWWDFKHGWRWKHVKHOOVKDOOEHFRQVLGHUHG
E &RQVLGHUDWLRQVKDOOEHJLYHQWRLQVWDOOLQJXQGHUERWWRPOHDNGHWHFWLRQDWWKLVWLPH VXFKDVD53% WRFRQWDLQDQG
FKDQQHODQ\ERWWRPOHDNWRDORFDWLRQZKHUHLWFDQUHDGLO\EHREVHUYHGIURPRXWVLGHRIWKHWDQN6HHDQG
$QQH[,
)RUWDQNVFRQVWUXFWHGIURPPDWHULDOVKDYLQJOEILQ\LHOGVWUHQJWKRUOHVVWKHUHTXLUHGVSDFLQJRI
WKHZHOGVPD\EHUHGXFHGIURPWKHUHTXLUHPHQWVRILIWKHIROORZLQJFRQGLWLRQVDUHPHW
D )RU UHLQIRUFHG SHQHWUDWLRQV LQFOXGLQJ ORZW\SHV D PLQLPXP RI LQ VKDOO EH PDLQWDLQHG EHWZHHQ WKH VKHOOWR
ERWWRPZHOGWRHDQGWKHQHDUHVWSHQHWUDWLRQDWWDFKPHQWZHOGWRH UHLQIRUFLQJSODWHSHULSKHU\ZHOGRUQR]]OHQHFN
ZHOGWRORZW\SHUHLQIRUFLQJSODWHDQGVKHOOZHOGV E )RUVHOIUHLQIRUFHGSHQHWUDWLRQVWKHJUHDWHURILQRUtVKDOOEHPDLQWDLQHGEHWZHHQWKHVKHOOWRERWWRPZHOG
WRHDQGWKHQHDUHVWSHQHWUDWLRQDWWDFKPHQWZHOGWRH
F 7KHIROORZLQJVKDOOEHZHOGHGZLWKORZK\GURJHQHOHFWURGHVDQGZLWKZHOGLQJSURFHGXUHVWKDWDUHGHVLJQHGWROLPLW
GLVWRUWLRQDQGUHVLGXDOVWUHVV
L VKHOOWRERWWRPZHOG
LL UHZHOGLQJRIWULPPHGUHLQIRUFLQJSODWHSHU
$3,67$1'$5' G 7KHWRHVRIWKHZHOGVVKDOOEHEOHQGJURXQGWRPLQLPL]HVWUHVVFRQFHQWUDWLRQVDVIROORZV
L )RUFLUFXODUUHLQIRUFLQJSODWHVEOHQGJULQGWKHSHULSKHU\DWWDFKPHQWZHOGIURPWKH³IRXUR FORFN´SRVLWLRQWR
WKH³HLJKWR FORFN´SRVLWLRQ%OHQGJULQGWKHLQVLGHDQGRXWVLGHRIWKHVKHOOWRERWWRPZHOGDPLQLPXPRIRQH
SHQHWUDWLRQGLDPHWHUOHQJWKRQHLWKHUVLGHRIWKHSHQHWUDWLRQFHQWHUOLQH
LL )RU GLDPRQGVKDSHG UHLQIRUFLQJ SODWHV EOHQGJULQG WKH ORZHU KRUL]RQWDO OHQJWK RI WKH GLDPRQG VKDSHG
DWWDFKPHQW ZHOG %OHQGJULQG WKH LQVLGH DQG RXWVLGH RI WKH VKHOOWRERWWRP ZHOG D PLQLPXP RI RQH
SHQHWUDWLRQGLDPHWHUOHQJWKRQHLWKHUVLGHRIWKHSHQHWUDWLRQFHQWHUOLQH
LLL )RUORZW\SHSHQHWUDWLRQVEOHQGJULQGWKHQR]]OHDWWDFKPHQWZHOG VKHOODQGUHLQIRUFLQJSODWH IURPWKH³IRXU
R FORFN´SRVLWLRQWRWKH³HLJKWR FORFN´SRVLWLRQ%OHQGJULQGWKHLQVLGHDQGRXWVLGHRIWKHVKHOOWRERWWRPZHOG
DPLQLPXPRIRQHSHQHWUDWLRQGLDPHWHUOHQJWKRQHLWKHUVLGHRIWKHSHQHWUDWLRQFHQWHUOLQH
H 7KH EOHQGJURXQG OHQJWKV RI ZHOGV OLVWHG LQ G VKDOO EH PDJQHWLF SDUWLFOH H[DPLQHG EHIRUH DQG DIWHU
K\GURVWDWLFWHVW
$GGLWLRQDO:HOGHGRQ3ODWHV
,I RWKHU ZHOGHGRQ SODWHV VXFK DV ZHDU LVRODWLRQ VWULNHU DQG EHDULQJ SODWHV DUH WR EH DGGHG WR WDQN
ERWWRPV WKH\ VKDOO EH LQVWDOOHG LQ DFFRUGDQFH ZLWK DQG H[DPLQHG LQ DFFRUGDQFH ZLWK )RU WKHVH
DGGLWLRQDOZHOGHGRQSODWHVLIWKHODSZHOGVSDFLQJUHTXLUHPHQWVLQ)LJXUHDUHQRWPHWPDJQHWLFSDUWLFOH 07 RUOLTXLGSHQHWUDQW 37 H[DPLQDWLRQLVUHTXLUHGIRUWKHH[SRVHGZHOGVRUSRUWLRQVRIZHOGVIDLOLQJWRPHHWPLQLPXP
VSDFLQJFULWHULD6HH6HFWLRQIRUDFFHSWDQFHUHTXLUHPHQWV
:HOGHGRQSODWHVWKDWIDOOZLWKLQWKHFULWLFDO]RQH VHHIRUGHILQLWLRQ VKDOOEHLQVWDOOHGLQDFFRUGDQFH
ZLWKDQGFRPSO\ZLWKDOORILWVUHTXLUHPHQWV
5HSDLURI)L[HG5RRIV
5HSDLUV
5RRI UHSDLUV LQYROYLQJ WDQN YHQWLQJ VKDOO EH PDGH VXFK WKDW QRUPDO DQG HPHUJHQF\ YHQWLQJ PHHW WKH
UHTXLUHPHQWVRI$3,6HFWLRQ
5RRI UHSDLUV LQYROYLQJ PRGLILFDWLRQ RI WKH URRI VWUXFWXUH DQG WKH IUDQJLEOH MRLQW LI DSSOLFDEOH VKDOO EH LQ
FRPSOLDQFHZLWKWKHUHTXLUHPHQWVRI$3,6HFWLRQ
6XSSRUWHG&RQH5RRIV
7KHPLQLPXPWKLFNQHVVRIQHZURRISODWHVVKDOOEHLQSOXVDQ\FRUURVLRQDOORZDQFHDVVSHFLILHGLQWKH
UHSDLUVSHFLILFDWLRQV,QWKHHYHQWURRIOLYHORDGVLQH[FHVVRIOEIIWDUHVSHFLILHG VXFKDVLQVXODWLRQRSHUDWLQJ
YDFXXP KLJK VQRZ ORDGV WKH SODWH WKLFNQHVV VKDOO EH EDVHG RQ DQDO\VLV XVLQJ WKH DOORZDEOH VWUHVVHV LQ
FRQIRUPDQFHZLWK$3,6HFWLRQ VHH 7KHURRIVXSSRUWV UDIWHUVJLUGHUVFROXPQVDQGEDVHV VKDOOEHUHSDLUHGRUDOWHUHGVXFKWKDWXQGHUGHVLJQ
FRQGLWLRQVWKHUHVXOWLQJVWUHVVHVGRQRWH[FHHGWKHVWUHVVOHYHOVJLYHQLQ$3,6HFWLRQ
6HOIVXSSRUWLQJ5RRIV
7KHQRPLQDOWKLFNQHVVRIQHZURRISODWHVKDOOEH LQRUWKHUHTXLUHGSODWHWKLFNQHVVJLYHQLQ$3,
6HFWLRQRU6HFWLRQSOXVDQ\VSHFLILHGFRUURVLRQDOORZDQFHZKLFKHYHULVJUHDWHU
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7KHGHWDLOVRIWKHURRIWRVKHOOMXQFWLRQVKDOOPHHWWKHUHTXLUHPHQWVRI$3,6HFWLRQ$3,
6HFWLRQRU$3,$QQH[)DVDSSOLFDEOHIRUWKHLQWHQGHGVHUYLFH
5HSDLURI)ORDWLQJ5RRIV
([WHUQDO)ORDWLQJ5RRIV
$Q\PHWKRGRIUHSDLULVDFFHSWDEOHWKDWZLOOUHVWRUHWKHURRIWRDFRQGLWLRQHQDEOLQJLWWRSHUIRUPDVUHTXLUHG
,QWHUQDO)ORDWLQJ5RRIV
5HSDLUVWRLQWHUQDOIORDWLQJURRIVVKDOOEHPDGHLQDFFRUGDQFHZLWKWKHRULJLQDOFRQVWUXFWLRQGUDZLQJVLIDYDLODEOH,I
WKHRULJLQDOFRQVWUXFWLRQGUDZLQJVDUHQRWDYDLODEOHWKHURRIUHSDLUVVKDOOEHLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRI
$3,$QQH[+
5HSDLURI/HDNVLQ3RQWRRQV
$OOOHDNVLQSRQWRRQVRUFRPSDUWPHQWVRIGRXEOHGHFNIORDWLQJURRIVVKDOOEHUHSDLUHGE\UHZHOGLQJWKHOHDNLQJMRLQWV
DQGRUXVHRISDWFKSODWHV
5HSDLURU5HSODFHPHQWRI)ORDWLQJ5RRI3HULPHWHU6HDOV
3ULPDU\6HDOV
5LPPRXQWHG SULPDU\ VKRH VHDOV DQG WRURLGDO VHDO V\VWHPV FDQ EH UHPRYHG UHSDLUHG RU UHSODFHG 7R PLQLPL]H
HYDSRUDWLRQ ORVVHV DQG UHGXFH SRWHQWLDO KD]DUG WR WKH ZRUNHUV QR PRUH WKDQ RQHIRXUWK RI WKH URRI VHDO V\VWHP
VKRXOGEHRXWRIDQLQVHUYLFHWDQNDWRQHWLPH7HPSRUDU\VSDFHUVWRNHHSWKHURRIFHQWHUHGVKDOOEHXVHGGXULQJWKH
UHSDLUV3ULPDU\VHDOV\VWHPVPRXQWHGSDUWO\RUIXOO\EHORZWKHEROWLQJEDURUWRSRIWKHULPXVXDOO\FDQQRWEHUHDFKHG
WRDOORZUHPRYDOLQVHUYLFH,QWKLVFDVHLQVHUYLFHUHSDLUVDUHOLPLWHGWRUHSODFHPHQWRIWKHSULPDU\VHDOIDEULF
6HFRQGDU\6HDOV
5LPPRXQWHGDQGVKRHPRXQWHGVHFRQGDU\VHDOVPD\EHUHDGLO\LQVWDOOHGUHSDLUHGRUUHSODFHGZKLOHWKHWDQNLV
LQVHUYLFH
6HDOWRVKHOO*DS
5HSDLUDQGRWKHUFRUUHFWLYHDFWLRQVWRPDLQWDLQVHDOWRVKHOOJDSUHTXLUHPHQWVLQFOXGHWKHIROORZLQJ
D $GMXVWLQJWKHKDQJHUV\VWHPRQSULPDU\VKRHVHDOVDQGDGGLQJIRDPILOOHULQWRURLGDOVHDOV
E ,QFUHDVLQJWKHOHQJWKRIULPPRXQWHGVHFRQGDU\VHDOVLQWKHSUREOHPDUHD
F 5HSODFLQJDOORUSDUWRIWKHSULPDU\VHDOV\VWHPDORQJZLWKSRVVLEOHLQVWDOODWLRQRIDULPH[WHQVLRQIRUDVHFRQGDU\
VHDO7KLVVWHSVKDOOEHWDNHQRQO\DIWHUFKHFNLQJWKHDQQXODUVSDFHYDULDWLRQDWVHYHUDOOHYHOVIURPORZSXPSRXWWR
KLJKOLTXLGOHYHO
0HFKDQLFDO'DPDJH
'DPDJHGSDUWVVKDOOEHUHSDLUHGRUUHSODFHG3ULRUWRWDNLQJWKLVDFWLRQWKHFDXVHRIWKHGDPDJHVKDOOEHLGHQWLILHG
DQGFRUUHFWHG%XFNOHGSDUWVVKDOOEHUHSODFHGQRWVWUDLJKWHQHG7RUQVHDOIDEULFVKDOOEHUHSODFHG
$3,67$1'$5' 'HWHULRUDWLRQRI6HDO0DWHULDO
0DWHULDO GHWHULRUDWLRQ UHVXOWV IURP ZHDU DQG FRUURVLRQ RQ PHWDOOLF HOHPHQWV DQG FKHPLFDO DQG ZHDWKHU
GHWHULRUDWLRQ RI VHDO IDEULF 7KH VHUYLFH OLIH DQG LQVSHFWLRQ LQIRUPDWLRQ VKDOO EH XVHG WR GHWHUPLQH ZKHWKHU D
FKDQJHRIPDWHULDOLVZDUUDQWHG
,QVWDOODWLRQRI3ULPDU\DQG6HFRQGDU\6HDOV
7KH UHSODFHPHQW RU DGGLWLRQ RI SULPDU\ DQG VHFRQGDU\ VHDOV VKDOO EH LQ DFFRUGDQFH ZLWK WKH
UHFRPPHQGDWLRQV RI WKH VHDO PDQXIDFWXUHU ,Q DGGLWLRQ WKH ILQDO LQVWDOODWLRQ VKDOO FRPSO\ ZLWK DOO DSSOLFDEOH
MXULVGLFWLRQV
,IWKHURRIULPWKLFNQHVVLVOHVVWKDQLQWKLFNLWVKDOOEHUHSODFHG7KHQHZURRIULPVKDOOEH LQ
WKLFNQHVVPLQLPXP
+RW7DSV
*HQHUDO
7KHUHTXLUHPHQWVJLYHQKHUHLQFRYHUWKHLQVWDOODWLRQRIUDGLDOKRWWDSFRQQHFWLRQVRQH[LVWLQJLQVHUYLFHWDQNV
+RW WDSV RQ VKHOO PDWHULDO WKDW ZRXOG QRUPDOO\ UHTXLUH WKHUPDO VWUHVV UHOLHI SHU$3, 6HFWLRQ DUH SHUPLWWHG
ZLWKRXW3:+7LIZHOGLQJLVTXDOLILHGDQGSHUIRUPHGLQDFFRUGDQFHZLWKD&RQWUROOHGGHSRVLWLRQ:HOGLQJ0HWKRGPHHWLQJ
WKHUHTXLUHPHQWVRI$3,6HFWLRQSOXVWKHDGGLWLRQWKDWWKHZHOGTXDOLILFDWLRQWHVWVVKDOOEHSHUIRUPHGZLWK
ZDWHUEDFNLQJ
D )RU WDQN VKHOO SODWHV RI UHFRJQL]HG WRXJKQHVV GHILQHG LQ 6HFWLRQ WKH FRQQHFWLRQ VL]H DQG VKHOO WKLFNQHVV
OLPLWDWLRQVDUHVKRZQLQ7DEOH
E )RUWDQNVKHOOSODWHVRIXQNQRZQWRXJKQHVV GHILQHGLQ6HFWLRQ WKHIROORZLQJOLPLWDWLRQVDSSO\
1R]]OHVVKDOOEHOLPLWHGWRDPD[LPXPGLDPHWHURI136
7KHVKHOOSODWHWHPSHUDWXUHVKDOOEHDWRUDERYHWKHPLQLPXPVKHOOGHVLJQPHWDOWHPSHUDWXUHIRUWKHHQWLUHKRW
WDSSLQJRSHUDWLRQ
$OOQR]]OHVVKDOOEHUHLQIRUFHG7KHUHLQIRUFHPHQWVKDOOEHFDOFXODWHGSHU$3,6HFWLRQ7KHPLQLPXP
WKLFNQHVVRIWKHUHLQIRUFLQJSODWHVKDOOEHHTXDOWRWKHVKHOOSODWHWKLFNQHVVDQGWKHPLQLPXPUHLQIRUFLQJSODWH
GLDPHWHUVKDOOQRWEHOHVVWKDQWKHGLDPHWHURIWKHVKHOOFXWRXWSOXVLQ
7KHPD[LPXPKHLJKWRIWDQNOLTXLGDERYHWKHKRWWDSORFDWLRQGXULQJWKHKRWWDSSLQJRSHUDWLRQVKDOOEHVXFKWKDW
WKHK\GURVWDWLFWDQNVKHOOVWUHVVLVOHVVWKDQOEILQDWWKHHOHYDWLRQRIWKHKRWWDS
7KHPLQLPXPKHLJKWRIWDQNOLTXLGDERYHWKHKRWWDSORFDWLRQVKDOOEHDWOHDVWIWGXULQJWKHKRWWDSSLQJ
RSHUDWLRQ
:HOGLQJVKDOOEHGRQHZLWKORZK\GURJHQHOHFWURGHV
+RWWDSVDUHQRWSHUPLWWHGRQWKHURRIRIDWDQNRUZLWKLQWKHJDVYDSRUVSDFHRIWKHWDQN
+RWWDSVVKDOOQRWEHLQVWDOOHGRQODPLQDWHGRUVHYHUHO\SLWWHGVKHOOSODWH
+RWWDSVDUHQRWSHUPLWWHGRQWDQNVZKHUHWKHKHDWRIZHOGLQJPD\FDXVHHQYLURQPHQWDOFUDFNLQJ VXFKDV
FDXVWLFFUDFNLQJRUVWUHVVFRUURVLRQFUDFNLQJ 5HLQIRUFLQJSODWHVIRUKRWWDSSHGQR]]OHVVKDOOQRWFURVVDQ\VKHOOSODWHVHDPVRUH[WHQGWRWKHVKHOOWR
ERWWRPMRLQWZHOGVHH)LJXUH
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7DEOH²+RW7DS&RQQHFWLRQ6L]HVDQG6KHOO3ODWH7KLFNQHVVHV
&RQQHFWLRQ6L]H
136
LQ
0LQLPXP6KHOO
3ODWH7KLFNQHVV
LQ
d
d
d
d
d
d
+RW7DS3URFHGXUHV
$KRW WDS SURFHGXUH VSHFLILF WR FDUU\LQJ RXW WKH ZRUN VKDOO EH GHYHORSHG DQG GRFXPHQWHG 7KH SURFHGXUH VKDOO
LQFOXGHWKHSUDFWLFHVJLYHQLQ$3,
3UHSDUDWRU\:RUN
0LQLPXPVSDFLQJLQDQ\GLUHFWLRQ WRHWRWRHRIZHOGV EHWZHHQWKHKRWWDSDQGDGMDFHQWQR]]OHVVKDOOEH
HTXLYDOHQWWRWKHVTXDUHURRWRIRTZKHUHRLVWKHWDQNVKHOOUDGLXVLQLQFKHVDQGTLVWKHVKHOOSODWHWKLFNQHVVLQ
LQFKHV
6KHOOSODWHWKLFNQHVVPHDVXUHPHQWVVKDOOEHWDNHQDWDPLQLPXPRIIRXUSODFHVDORQJWKHFLUFXPIHUHQFHRI
WKHSURSRVHGQR]]OHORFDWLRQ
0DWHULDO/LPLWDWLRQV
2QO\KRWWDSVWHHOVRIUHFRJQL]HGWRXJKQHVV GHILQHGLQ6HFWLRQ XQOHVVWKHDGGLWLRQDOUHTXLUHPHQWVRIE DUH
PHW
,QVWDOODWLRQ3URFHGXUH
3LSHQR]]OHVVKDOOEHFXWWRWKHFRQWRXURIWKHVKHOODQGEHYHOHGIURPWKHRXWVLGHIRUDIXOOSHQHWUDWLRQZHOG
VHH)LJXUH 7KHQR]]OHQHFNWRVKHOOZHOGVKDOOEHH[DPLQHGLQDFFRUGDQFHZLWK
$IWHU WKH SLSH LV ZHOGHG WKH UHLQIRUFLQJ SODWH VKDOO EH LQVWDOOHG HLWKHU LQ RQH SLHFH RU WZR SLHFHV ZLWK
KRUL]RQWDOZHOG7KHUHLQIRUFLQJSODWHWRQR]]OHVKDOOEHLQVWDOOHGZLWKDIXOOSHQHWUDWLRQZHOG&DUHVKDOOEHWDNHQWR
OLPLWWKHKHDWLQSXWWRWKHZHOGV
$IWHUWKHUHLQIRUFLQJSODWHKDVEHHQZHOGHGWRWKHVKHOODQG1'(SHUIRUPHGWKHSDGVKDOOEHSQHXPDWLFDOO\
WHVWHG E\ WKH SURFHGXUH GHVFULEHG LQ$3, 6HFWLRQ $IWHU WKH YDOYH KDV EHHQ LQVWDOOHG RQ WKH IODQJH D
SUHVVXUHWHVWDWOHDVWWLPHVWKHK\GURVWDWLFKHDGVKDOOEHSHUIRUPHGRQWKHQR]]OHSULRUWRPRXQWLQJWKHKRWWDS
PDFKLQHZKLFKVKDOOEHEROWHGWRWKHYDOYH7KHUHTXLUHGSUHVVXUHIRUWKHSUHVVXUHWHVWVKDOOEHDWOHDVWWKHYDOXH
FRPSXWHGE\WKHIROORZLQJHTXDWLRQ
P SVL
H GJ
$3,67$1'$5' Do or W
12 in. min.
Equal
Equal
1/4
in. telltale hole,
drill and tap for
1/8-in. pipe
thread
Vertical
weld
Reinforcing plate (T = t )
rolled to outside radius
of tank shell
Greater of
2 in. or 6T
Flange, Class 150
W.N. or S.O.
Horizontal weld if
reinforcing plate
is in two pieces
t
Pipe nozzle,
Schd extra strong
T
Horizontal weld
Spacing per
API 650,
Figure 5.6
Dim B or C
REINFORCING PLATE DETAIL
Grind out root and
seal weld for
nozzle size NPS 10
and larger
See Detail A
T
HOT TAP ASSEMBLY
(See Note 1)
1/4
in.
min
NOTE 1 See 12.1 for NDE requirements.
)LJXUH
²+RW7DSIRU7DQNV
DETAIL A
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
ZKHUH
H LVWKHKHLJKWRIWDQNVKHOOLQLQFKHV LQ G
LVWKHVSHFLILFJUDYLW\RISURGXFWVWRUHGDVVSHFLILHGE\SXUFKDVHU7KHVSHFLILFJUDYLW\VKDOOQRWEHOHVVWKDQ
J
LVWKHGHQVLW\RIZDWHULQSRXQGIRUFHIRUFXELFLQFK OEILQ $TXDOLILHGRSHUDWRUVKDOORSHUDWHWKHKRWWDSPDFKLQHDQGFXWWKHKROHLQWKHWDQNIROORZLQJWKHKRWWDS
PDFKLQHPDQXIDFWXUHU¶VSURFHGXUHV
6HFWLRQ²'LVPDQWOLQJDQG5HFRQVWUXFWLRQ
*HQHUDO
7KLV VHFWLRQ SURYLGHV SURFHGXUHV IRU GLVPDQWOLQJ DQG UHFRQVWUXFWLQJ H[LVWLQJ ZHOGHG WDQNV WKDW DUH WR EH
UHORFDWHGIURPWKHLURULJLQDOVLWH
+\GURVWDWLFWHVWLQJUHTXLUHPHQWV1'(UHTXLUHPHQWVDQGDFFHSWDQFHFULWHULDIRUWKHTXDOLW\RIZHOGVIRU
UHFRQVWUXFWHGWDQNVDUHVSHFLILHGLQ6HFWLRQ
$OO UHFRQVWUXFWLRQ ZRUN PXVW EH DXWKRUL]HG E\ WKH DXWKRUL]HG LQVSHFWRU RU DQ HQJLQHHU H[SHULHQFHG LQ
VWRUDJHWDQNGHVLJQSULRUWRFRPPHQFHPHQWRIWKHZRUNE\DUHFRQVWUXFWLRQRUJDQL]DWLRQ VHH 7KHDXWKRUL]HG
LQVSHFWRU ZLOO GHVLJQDWH LQVSHFWLRQ KROG SRLQWV UHTXLUHG GXULQJ WKH UHFRQVWUXFWLRQ SURFHVV DQG PLQLPXP
GRFXPHQWDWLRQWREHVXEPLWWHGXSRQMREFRPSOHWLRQ
7KHDXWKRUL]HGLQVSHFWRURUDQHQJLQHHUH[SHULHQFHGLQVWRUDJHWDQNGHVLJQVKDOODSSURYHDOOUHFRQVWUXFWLRQ
ZRUNDWWKHGHVLJQDWHGKROGSRLQWVDQGDIWHUUHFRQVWUXFWLRQKDVEHHQFRPSOHWHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWV
RIWKLVVWDQGDUG
&OHDQLQJDQG*DV)UHHLQJ
7KHWDQNVKDOOEHFOHDQHGDQGJDVIUHHGSULRUWRFRPPHQFHPHQWRIGLVPDQWOLQJ
'LVPDQWOLQJ0HWKRGV
*HQHUDO
5RRI VKHOO DQG ERWWRP SODWHV PD\ EH FXW LQWR DQ\ VL]H SLHFHV WKDW DUH UHDGLO\ WUDQVSRUWDEOH WR WKH QHZ VLWH IRU
UHFRQVWUXFWLRQ
%RWWRPV
%RWWRPSODWHVWKDWZLOOEHUHXVHGVKDOOEHFXWE\GHVHDPLQJRIODSZHOGVRUE\FXWWLQJDORQJVLGHRIWKH
UHPDLQLQJZHOGVDWDPLQLPXPRILQDZD\IURPH[LVWLQJZHOGVH[FHSWZKHUHFXWVFURVVH[LVWLQJZHOGVHDPV
,IWKHERWWRPLVWREHXVHGRQHRIWKHIROORZLQJPHWKRGVLVDFFHSWDEOH
D WKHERWWRPSODWHVPD\EHFXWIURPWKHVKHOODORQJDOLQH
DQGWKHERWWRPSODWHGLUHFWO\DWWDFKHGWRWKHVKHOO
DQGOLQH
VKRZQLQ)LJXUHVFUDSSLQJWKHZHOGV
E LIWKHHQWLUHERWWRPLVWREHUHXVHGWKHERWWRPPD\EHFXWIURPWKHVKHOORQWKHOLQH
RIWKHERWWRPDWWDFKHG
OHDYLQJWKHVKHOOZLWKSDUW
F LIWKHWDQNKDVDQH[LVWLQJEXWWZHOGHGDQQXODUULQJWKLVULQJFDQEHOHIWDWWDFKHGWRWKHVKHOORUUHPRYHGIURPWKH
VKHOOE\FXWWLQJRXWDORQJOLQH
RURWKHUZLVHUHPRYLQJWKHH[LVWLQJVKHOOWRDQQXODUULQJZHOGV
6KHOOV
7DQNVKHOOSODWHVPD\EHGLVPDQWOHGXVLQJRQHRIWKHIROORZLQJPHWKRGVRUDFRPELQDWLRQWKHUHRI
D $Q\VKHOOULQJPD\EHGLVPDQWOHGE\FXWWLQJRXWH[LVWLQJZHOGVHDPVDQGWKHKHDWDIIHFWHG]RQH +$= RIWKHZHOG
)RUWKHSXUSRVHRIWKLVPHWKRGWKHPLQLPXP+$=WREHUHPRYHGZLOOEH RIWKHZHOGPHWDOZLGWKRU LQ
ZKLFKHYHULVOHVVRQERWKVLGHVRIWKHZHOGVHDP
$3,67$1'$5' Shell
C
A
B
B
1/2
in. min.
1/2
in. min.
12 in. min.
Bottom
plate
A
C
)LJXUH
²7DQN6KHOODQG%RWWRP&XW/RFDWLRQV
E $Q\VKHOOULQJLQWKLFNRUWKLQQHUPD\EHGLVPDQWOHGE\FXWWLQJWKURXJKWKHZHOGZLWKRXWUHPRYLQJWKH+$=
F 6KHOOULQJVPD\EHGLVPDQWOHGE\FXWWLQJYHUWLFDODQGRUKRUL]RQWDOFXWVWKURXJKWKHVKHOODPLQLPXPRILQDZD\
IURPH[LVWLQJZHOGVH[FHSWZKHUHFXWVFURVVH[LVWLQJZHOGV
6KHOOVWLIIHQLQJULQJVLQFOXGLQJZLQGJLUGHUVDQGWRSDQJOHVPD\EHOHIWDWWDFKHGWRWKHVKHOOSODWHVRUPD\
EHUHPRYHGE\FXWWLQJDWWKHDWWDFKPHQWZHOGV7KHDUHDZKHUHWHPSRUDU\DWWDFKPHQWVDUHUHPRYHGVKDOOEHJURXQG
IOXVKZLWKWKHVKHOOSODWH
7KHVKHOOVKDOOEHFXWIURPWKHERWWRPSODWHDORQJOLQH DVVKRZQLQ)LJXUH7KHH[LVWLQJVKHOOWR
ERWWRPZHOGFRQQHFWLRQVKDOOQRWEHUHXVHGXQOHVVWKHHQWLUHERWWRPLVWREHUHXVHGLQWDFW
5RRIV
5RRISODWHVVKDOOEHFXWE\GHVHDPLQJRIODSZHOGVRUE\FXWWLQJDORQJVLGHRIWKHUHPDLQLQJZHOGVDWD
PLQLPXPRILQDZD\IURPH[LVWLQJZHOGVH[FHSWZKHUHFXWVFURVVH[LVWLQJZHOGV
5RRIVXSSRUWLQJVWUXFWXUHVVKDOOEHGLVPDQWOHGE\UHPRYLQJEROWV LIEROWHG RUGHVHDPLQJWKHVWUXFWXUDO
DWWDFKPHQWZHOGV
3LHFH0DUNLQJ
6KHOOERWWRPDQGURRISODWHVVKDOOEHPDUNHGSULRUWRGLVPDQWOLQJIRUUHDG\LGHQWLILFDWLRQDQGSODFHPHQW
ZKHQWKHWDQNLVUHFRQVWUXFWHG0DUNLQJPDWHULDOVKDOOEHRIDGXUDEOHW\SH'UDZLQJVVKRZLQJSLHFHPDUNORFDWLRQV
DUHDOVRDXVHIXODGMXQFW
$PLQLPXPRIWZRVHWVRIPDWFKLQJFHQWHUSXQFKPDUNVVKDOOEHORFDWHGRQWKHWRSDQGERWWRPHGJHVRI
HDFKVKHOOSODWHWRIDFLOLWDWHSURSHUDOLJQPHQWGXULQJUHFRQVWUXFWLRQ
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
5HFRQVWUXFWLRQ
*HQHUDO
7KHIRXQGDWLRQIRUWKHUHFRQVWUXFWHGWDQNVKDOOPHHWWKHFRQVWUXFWLRQWROHUDQFHVJLYHQLQ
7HPSRUDU\DWWDFKPHQWVVKDOOEHUHPRYHGDQGWKHDWWDFKPHQWDUHDJURXQGIOXVKZLWKWKHSODWHVXUIDFH
:HOGLQJ
3URYLVLRQVVKDOOEHPDGHGXULQJWKHUHFRQVWUXFWLRQRIDWDQNWRHQVXUHWKDWZHOGVSDFLQJUHTXLUHPHQWVRI
)LJXUHDUHPDLQWDLQHG1HZYHUWLFDOMRLQWVLQDGMDFHQWVKHOOFRXUVHVPDGHLQDFFRUGDQFHZLWKVKDOOQRW
EHDOLJQHGEXWVKDOOEHRIIVHWIURPHDFKRWKHUDPLQLPXPGLVWDQFHRItZKHUHtLVWKHSODWHWKLFNQHVVRIWKHWKLFNHU
FRXUVHDWWKHSRLQWRIWKHRIIVHW
7DQNV DQG WKHLU VWUXFWXUDO DWWDFKPHQWV VKDOO EH ZHOGHG LQ DFFRUGDQFH ZLWK WKH SURFHVVHV VSHFLILHG LQ
$3,
6HFWLRQDQGWKHUHTXLUHPHQWVRIWKURXJK
1RZHOGLQJRIDQ\NLQGVKDOOEHSHUIRUPHGZKHQWKHVXUIDFHVRIWKHSDUWVWREHZHOGHGDUHZHWIURPUDLQ
VQRZRULFHZKHQUDLQRUVQRZLVIDOOLQJRQVXFKVXUIDFHVRUGXULQJSHULRGVRIKLJKZLQGVXQOHVVWKHZHOGHUDQGWKH
ZRUNDUHSURSHUO\VKLHOGHG1RZHOGLQJRIDQ\NLQGVKDOOEHSHUIRUPHGZKHQWKHWHPSHUDWXUHRIWKHEDVHPHWDOLVOHVV
WKDQƒ):KHQWKHWHPSHUDWXUHRIWKHEDVHPHWDOLVEHWZHHQq)DQGq)RUWKHWKLFNQHVVLVLQH[FHVVRILQWKH
EDVHPHWDOZLWKLQLQRIWKHSODFHZKHUHZHOGLQJLVWREHVWDUWHGVKDOOEHKHDWHGWRDWHPSHUDWXUHZDUPWRWKHKDQG
EHIRUHZHOGLQJ 6HHIRUSUHKHDWUHTXLUHPHQWVIRUVKHOOSODWHVRYHULQWKLFN
(DFKOD\HURIZHOGPHWDORIPXOWLOD\HUZHOGLQJVKDOOEHFOHDQHGRIVODJDQGRWKHUGHSRVLWVEHIRUHWKHQH[W
OD\HULVDSSOLHG
7KH HGJHV RI DOO ZHOGV VKDOO PHUJH ZLWK WKH VXUIDFH RI WKH SODWH ZLWKRXW D VKDUS DQJOH 0D[LPXP
SHUPLVVLEOHZHOGXQGHUFXWVKDOOEHLQDFFRUGDQFHZLWK$3,6HFWLRQDQG$3,6HFWLRQE 7KH UHLQIRUFHPHQW RI WKH QHZ ZHOGV RQ DOO EXWW MRLQWV RQ HDFK VLGH RI WKH SODWH VKDOO QRW H[FHHG WKH
WKLFNQHVVHVVKRZQLQ7DEOH
7DEOH²0D[LPXP7KLFNQHVVHVRQ1HZ:HOGV
'LPHQVLRQVLQLQFKHV
3ODWH7KLFNQHVV
0D[LPXP5HLQIRUFHPHQW7KLFNQHVV
9HUWLFDO-RLQWV
+RUL]RQWDO-RLQWV
d
!WKURXJK
!
7DFNZHOGVXVHGLQWKHDVVHPEO\RIYHUWLFDOMRLQWVRIWDQNVKHOOVVKDOOEHUHPRYHGDQGVKDOOQRWUHPDLQLQ
WKHILQLVKHGMRLQWZKHQWKHMRLQWVDUHZHOGHGPDQXDOO\:KHQVXFKMRLQWVDUHZHOGHGE\WKHVXEPHUJHGDUFSURFHVV
WKHWDFNZHOGVVKDOOEHWKRURXJKO\FOHDQHGRIDOOZHOGLQJVODJEXWQHHGQRWEHUHPRYHGSURYLGHGWKDWWKH\DUHVRXQG
DQGDUHWKRURXJKO\IXVHGLQWRWKHVXEVHTXHQWO\DSSOLHGZHOGEHDGV7DFNZHOGVVKDOOEHPDGHXVLQJDILOOHWZHOGRU
EXWWZHOGSURFHGXUHTXDOLILHGLQDFFRUGDQFHZLWK6HFWLRQ,;RIWKH$60(&RGH7DFNZHOGVWREHOHIWLQSODFHVKDOOEH
PDGHE\TXDOLILHGZHOGHUV
$3,67$1'$5' ,IZHOGDEOHSULPHUFRDWLQJVKDYHEHHQDSSOLHGRQVXUIDFHVWREHZHOGHGWKH\VKDOOEHLQFOXGHGLQZHOGLQJ
SURFHGXUHTXDOLILFDWLRQWHVWVIRUWKHEUDQGIRUPXODWLRQDQGPD[LPXPWKLFNQHVVRISULPHUDSSOLHG$OORWKHUFRDWLQJV
VKDOOEHFRPSOHWHO\UHPRYHGIURPWKHZHOGDUHDSULRUWRZHOGLQJ
/RZK\GURJHQHOHFWURGHVVKDOOEHXVHGIRUPDQXDOPHWDODUFZHOGVLQFOXGLQJWKHDWWDFKPHQWRIWKHILUVW
VKHOOFRXUVHWRWKHERWWRPSODWHVRUDQQXODUSODWHULQJDVIROORZV
D IRUDOOZHOGVLQVKHOOFRXUVHVRYHULQWKLFNRI$3,*URXS,±,,,PDWHULDOV
E IRUDOOZHOGVLQDOOVKHOOFRXUVHVRI$3,*URXS,9±9,PDWHULDOV
F IRU DOO ZHOGV LQ DOO VKHOO FRXUVHV IRU ZKLFK WKH$3, *URXS IRU WKH PDWHULDO FDQQRW EH UHDVRQDEO\ DVFHUWDLQHG LQ
6HFWLRQ
/RZK\GURJHQ HOHFWURGHV VKDOO EH XVHG IRU ZHOGLQJ WHPSRUDU\ DQG QHZ SHUPDQHQW DWWDFKPHQWV WR
VKHOOVRI$3,*URXS,9,9$9RU9,PDWHULDOVRUZKHQWKH$3,*URXSIRUWKHPDWHULDOFDQQRWEHUHDVRQDEO\
DVFHUWDLQHGLQ6HFWLRQ7KHZHOGLQJSURFHGXUHVHOHFWHGVKDOOQRWFDXVHXQGHUEHDGFUDFNLQJDOVRWKHQHHG
IRUSUHKHDWRIWKLFNSODWHVDQGWKHHIIHFWRIORZDPELHQWWHPSHUDWXUHGXULQJZHOGLQJVKDOOEHFRQVLGHUHG
,I H[LVWLQJ ZHOGV DUH IRXQG WR EH XQVDWLVIDFWRU\ E\ WKH DVEXLOW VWDQGDUG WKH\ VKDOO EH UHSDLUHG LQ
DFFRUGDQFHZLWK
%RWWRPV
$IWHUWKHERWWRPSODWHVDUHODLGRXWDQGWDFNHGWKH\VKDOOEHMRLQHGE\ZHOGLQJWKHMRLQWVLQDVHTXHQFHWKDW
UHVXOWVLQWKHOHDVWGLVWRUWLRQIURPVKULQNDJHDQGSURYLGHVDVQHDUO\DVSRVVLEOHDSODQHVXUIDFH
7KHZHOGLQJRIWKHVKHOOWRWKHERWWRP H[FHSWIRUGRRUVKHHWV VKDOOEHFRPSOHWHGSULRUWRWKHZHOGLQJRI
ERWWRPMRLQWV
3ODWHVVKDOOEHKHOGLQFORVHFRQWDFWDWDOOODSMRLQWVGXULQJZHOGLQJ
6KHOOV
3ODWHVWREHMRLQHGE\EXWWZHOGLQJVKDOOEHPDWFKHGDFFXUDWHO\DQGUHWDLQHGLQSRVLWLRQGXULQJZHOGLQJ
0LVDOLJQPHQW LQ FRPSOHWHG YHUWLFDO MRLQWV RYHU LQ WKLFN VKDOO QRW H[FHHG RI WKH SODWH WKLFNQHVV ZLWK D
PD[LPXPRILQ0LVDOLJQPHQWLQMRLQWVLQWKLFNRUOHVVVKDOOQRWH[FHHGLQ9HUWLFDOMRLQWVVKDOOEHFRPSOHWHG
EHIRUHWKHORZHUKRUL]RQWDOZHOGLVPDGH
,QFRPSOHWHGKRUL]RQWDOEXWWMRLQWVWKHXSSHUSODWHVKDOOQRWSURMHFWEH\RQGWKHIDFHRIWKHORZHUSODWHDW
DQ\SRLQWE\PRUHWKDQ
RIWKHWKLFNQHVVRIWKHXSSHUSODWHZLWKDPD[LPXPSURMHFWLRQRI LQH[FHSWWKDWD
SURMHFWLRQRI LQLVDFFHSWDEOHIRUXSSHUSODWHVOHVVWKDQLQWKLFN
)RUKRUL]RQWDODQGYHUWLFDOMRLQWVLQWDQNVKHOOFRXUVHVFRQVWUXFWHGRIPDWHULDORYHU LQWKLFN EDVHG
RQWKHWKLFNQHVVRIWKHWKLFNHUSODWHDWWKHMRLQW PXOWLSDVVZHOGSURFHGXUHVDUHUHTXLUHGZLWKQRSDVVPRUHWKDQ
LQWKLFNSHUPLWWHG$PLQLPXPSUHKHDWRIq)LVUHTXLUHGRIWKHVHZHOGV
5RRIV
7KLVVWDQGDUGGRHVQRWLQFOXGHVSHFLDOVWLSXODWLRQVIRUUHFRQVWUXFWLRQWKHUHRIH[FHSWWKDWWKHVWUXFWXUDOIUDPLQJ VXFK
DVUDIWHUVDQGJLUGHUV PXVWEHUHDVRQDEO\WUXHWROLQHDQGVXUIDFH2WKHUUHTXLUHPHQWVVKDOOEHLQDFFRUGDQFHZLWK
WKHDVEXLOWVWDQGDUG
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
'LPHQVLRQDO7ROHUDQFHV
*HQHUDO
7KHWROHUDQFHVJLYHQLQWKLVVHFWLRQKDYHEHHQHVWDEOLVKHGWRSURGXFHDUHFRQVWUXFWHGWDQNRIDFFHSWDEOH
DSSHDUDQFHDQGVWUXFWXUDOLQWHJULW\DQGWRSHUPLWSURSHUIXQFWLRQLQJRIIORDWLQJURRIVDQGVHDOV
0HDVXUHPHQWV WR YHULI\ WKHVH WROHUDQFHV VKDOO EH WDNHQ EHIRUH WKH K\GURVWDWLF WHVW RI WKH UHFRQVWUXFWHG
WDQN
3OXPEQHVV
7KHPD[LPXPRXWRISOXPEQHVVRIWKHWRSRIWKHVKHOOUHODWLYHWRWKHERWWRPRIWKHVKHOOVKDOOQRWH[FHHG
RIWKHWRWDOWDQNKHLJKWZLWKDPD[LPXPRILQ7KHFULWHULDZLWKDPD[LPXPRILQVKDOODOVRDSSO\WRIL[HGURRI
FROXPQV)RUWDQNVZLWKLQWHUQDOIORDWLQJURRIVDSSO\WKHFULWHULDRIWKLVVHFWLRQRU$3,6HFWLRQDQG$3,
6HFWLRQ+ZKLFKHYHULVPRUHVWULQJHQW
7KH RXWRISOXPEQHVV LQ RQH VKHOO FRXUVH VKDOO QRW H[FHHG WKH YDOXHV VSHFLILHG IRU PLOO WROHUDQFHV LQ
$670
$RU$670$ZKLFKHYHULVDSSOLFDEOH
5RXQGQHVV
5DGLLPHDVXUHGDWIWDERYHWKHVKHOOWRERWWRPZHOGVKDOOQRWH[FHHGWKHWROHUDQFHVVKRZQLQ7DEOH
5DGLXVWROHUDQFHVPHDVXUHGKLJKHUWKDQRQHIRRWDERYHWKHVKHOOWRERWWRPZHOGVKDOOQRWH[FHHGWKUHHWLPHVWKH
WROHUDQFHVJLYHQLQ7DEOH
7DEOH²5DGLL7ROHUDQFHV
7DQN'LDPHWHU
IW
5DGLXV7ROHUDQFHV
LQ
“
WR
“
WR
“
t
“
3HDNLQJ
:LWKDKRUL]RQWDOVZHHSERDUGLQORQJSHDNLQJVKDOOQRWH[FHHGLQ7KHVZHHSERDUGVKDOOEHPDGHWRWKHWUXH
RXWVLGHUDGLXVRIWKHWDQN
%DQGLQJ
:LWKDYHUWLFDOVZHHSERDUGLQORQJEDQGLQJVKDOOQRWH[FHHGLQ
)RXQGDWLRQV
7RDFKLHYHWKHWROHUDQFHVVSHFLILHGLQWKURXJKLWLVHVVHQWLDOWKDWIRXQGDWLRQVWUXHWRDSODQH
EH SURYLGHG IRU WKH WDQN UHFRQVWUXFWLRQ 7KH IRXQGDWLRQ VKDOO KDYH DGHTXDWH EHDULQJ FDSDFLW\ WR PDLQWDLQ WKH
WUXHQHVVRIWKHIRXQGDWLRQ
$3,67$1'$5' :KHUHIRXQGDWLRQVWUXHWRDKRUL]RQWDOSODQHDUHVSHFLILHGWROHUDQFHVVKDOOEHDVIROORZV
D ZKHUHFRQFUHWHULQJZDOOVDUHSURYLGHGXQGHUWKHVKHOOWKHWRSRIWKHULQJZDOOVKDOOEHOHYHOZLWKLQ“LQFKHVLQDQ\
IWRIWKHFLUFXPIHUHQFHDQGZLWKLQ“LQFKHVLQWKHWRWDOFLUFXPIHUHQFHPHDVXUHGIURPWKHDYHUDJHHOHYDWLRQ
E ZKHUHFRQFUHWHULQJZDOOVDUHQRWSURYLGHGWKHIRXQGDWLRQXQGHUWKHVKHOOVKDOOEHOHYHOZLWKLQ“LQLQDQ\IWRI
FLUFXPIHUHQFHDQGZLWKLQ“LQLQWKHWRWDOFLUFXPIHUHQFHPHDVXUHGIURPWKHDYHUDJHHOHYDWLRQ
)RU IRXQGDWLRQV VSHFLILHG WR EH VORSHG IURP D KRUL]RQWDO SODQ HOHYDWLRQ GLIIHUHQFHV DERXW WKH
FLUFXPIHUHQFH VKDOO EH FDOFXODWHG IURP WKH VSHFLILHG KLJK SRLQW $FWXDO HOHYDWLRQ GLIIHUHQFHV DERXW WKH
FLUFXPIHUHQFH VKDOO EH GHWHUPLQHG IURP WKH DFWXDO HOHYDWLRQ RI WKH VSHFLILHG KLJK SRLQW 7KH DFWXDO HOHYDWLRQ
GLIIHUHQFHVVKDOOQRWGHYLDWHIURPWKHFDOFXODWHGGLIIHUHQFHVE\PRUHWKDQWKHIROORZLQJWROHUDQFHV
D ZKHUH FRQFUHWH ULQJZDOOV DUH SURYLGHG “ LQFKHV LQ DQ\ IW RI FLUFXPIHUHQFH DQG “ LQFKHV LQ WKH WRWDO
FLUFXPIHUHQFH
E ZKHUHFRQFUHWHULQJZDOOVDUHQRWSURYLGHG“LQFKHVLQDQ\IWRIFLUFXPIHUHQFHDQG“LQFKHVLQWKHWRWDO
FLUFXPIHUHQFH
6HFWLRQ²:HOGLQJ
:HOGLQJ4XDOLILFDWLRQV
:HOGLQJ SURFHGXUH VSHFLILFDWLRQV :36V DQG ZHOGHUV DQG ZHOGLQJ RSHUDWRUV VKDOO EH TXDOLILHG LQ
DFFRUGDQFHZLWK6HFWLRQ,;RIWKH$60(&RGHWKHDGGLWLRQDOUHTXLUHPHQWVRI$3,6HFWLRQDQGWKLVVWDQGDUG
:HOGLQJSURFHGXUHVIRUODGGHUDQGSODWIRUPDVVHPEOLHVKDQGUDLOVVWDLUZD\VDQGRWKHUPLVFHOODQHRXVDVVHPEOLHV
EXWQRWWKHLUDWWDFKPHQWVWRWKHWDQNVKDOOFRPSO\ZLWKHLWKHU$:6'$:6'RU6HFWLRQ,;RIWKH$60(&RGH
LQFOXGLQJWKHXVHRI6:36V
&RQILUPDWLRQRI:HOGDELOLW\RI6WHHOIURP([LVWLQJ7DQNV
:HOGDELOLW\RIVWHHOIURPH[LVWLQJWDQNVVKDOOEHYHULILHG,IWKHPDWHULDOVSHFLILFDWLRQIRUWKHVWHHOIURPDQ
H[LVWLQJWDQNLVXQNQRZQDWHVWFRXSRQIRUWKHZHOGLQJSURFHGXUHTXDOLILFDWLRQVKDOOEHWDNHQIURPDQDFWXDOH[LVWLQJ
SODWHDJDLQVWZKLFKWKHQHZVWHHOLVWREHZHOGHG7KHFRXSRQVKDOOEHWHVWHGWRGHWHUPLQHFKHPLFDOFRPSRVLWLRQDQG
PHFKDQLFDOSURSHUWLHV5HPRYDORIDWHVWFRXSRQLVQRWUHTXLUHGSURYLGHGWKDWWKHSURSRVHGZHOGLQJSURFHGXUHDQG
SURSRVHGSODQIRUQRQGHVWUXFWLYHH[DPLQDWLRQLVUHYLHZHGDQGDSSURYHGE\DVWRUDJHWDQNHQJLQHHU
,IPRUHWKDQRQHDUHDLVWREHUHSDLUHGDQGDGHFLVLRQKDVEHHQPDGHWRUHPRYHDWHVWFRXSRQDVWRUDJH
WDQN HQJLQHHU VKDOO GHWHUPLQH LI DGGLWLRQDO WHVW FRXSRQV QHHG WR EH UHPRYHG ,Q OLHX RI UHPRYLQJ DGGLWLRQDO WHVW
FRXSRQV 2SWLFDO (PLVVLRQ 6SHFWURVFRS\ 2(6 D PHWKRG IRU WUDFH PHWDO DQDO\VLV PD\ EH XVHG WR FRPSDUH WKH
FRPSRVLWLRQRIWKHVWHHORQRQHRUPRUHRIWKHRWKHUDUHDVWREHUHSDLUHGDJDLQVWWKHUHVXOWVRIWKHWHVWFRXSRQWR
SURYLGHHQRXJKFRQILGHQFHWKDWWKHUHSDLUZLOOEHDFFHSWDEOH:KHQ2(6WHVWLQJLVGRQHRQPXOWLSOHSODWHVDVWRUDJH
WDQNHQJLQHHUVKDOOUHYLHZWKHUHVXOWVDQGDJDLQGHWHUPLQHLIDGGLWLRQDOWHVWFRXSRQVQHHGWREHUHPRYHG
,GHQWLILFDWLRQDQG5HFRUGV
7KH FRQWUDFWRU VKDOO DVVLJQ HDFK ZHOGHU DQG ZHOGLQJ RSHUDWRU DQ LGHQWLI\LQJ QXPEHU OHWWHU RU V\PERO
5HFRUGVRIWKLVLGHQWLILFDWLRQDORQJZLWKWKHGDWHDQGUHVXOWVRIWKHZHOGHU¶VTXDOLILFDWLRQWHVWVVKDOOEHDFFHVVLEOHWR
WKHLQVSHFWRURUWKHRZQHURSHUDWRU
7KH ZHOGHU RU ZHOGLQJ RSHUDWRU¶V LGHQWLILFDWLRQ PDUN VKDOO EH VWDPSHG HLWKHU E\ KDQG RU PDFKLQH RQ DOO
WDQNV7KHPDUNVKDOOEHDGMDFHQWWRDQGDWLQWHUYDOVRIQRWPRUHWKDQP IW DORQJWKHIROORZLQJZHOGVOLTXLG
FRQWDLQLQJZHOGVLQFOXGLQJDOORSHQLQJZHOGVDQGDOORSHQLQJUHLQIRUFHPHQWV)ODQJHWRQR]]OHQHFNZHOGVGRQRW
UHTXLUHZHOGHULGHQWLILFDWLRQ,QOLHXRIVWDPSLQJWKHFRQWUDFWRUPD\NHHSDZULWWHQUHFRUGWKDWLGHQWLILHVWKHZHOGHURU
ZHOGLQJRSHUDWRUHPSOR\HGIRUWKHVHZHOGHGMRLQWV7KHZULWWHQDQGRUVWDPSHGUHFRUGVVKDOOEHNHSWDQGPDLQWDLQHG
E\WKHFRQWUDFWRUXQWLOWKH\DUHDFFHSWHGE\WKHLQVSHFWRURUWKHRZQHURSHUDWRUDQGWKH\VKDOOEHVXEPLWWHGWRWKH
RZQHURSHUDWRUIRUWKHUHSDLUDQGDOWHUDWLRQKLVWRU\UHFRUGVRIWKHWDQN
3UHKHDWRU&RQWUROOHG'HSRVLWLRQ:HOGLQJ0HWKRGVDV$OWHUQDWLYHVWR3RVWZHOG+HDW
7UHDWPHQW 3:+7
3UHKHDWDQGFRQWUROOHGGHSRVLWLRQZHOGLQJDVGHVFULEHGLQDQGPD\EHXVHGLQOLHXRI3:+7IRUUHSDLUV
WR H[LVWLQJ QR]]OHV ZKHUH 3:+7 LV UHTXLUHG E\ $3, RU ZDV SHUIRUPHG LQ WKH RULJLQDO FRQVWUXFWLRQ EXW LV
LQDGYLVDEOHRUPHFKDQLFDOO\XQQHFHVVDU\IRUWKHUHSDLU3ULRUWRXVLQJDQ\DOWHUQDWLYHPHWKRGDPHWDOOXUJLFDOUHYLHZ
FRQGXFWHGE\DVWRUDJHWDQNHQJLQHHUVKDOOEHSHUIRUPHGWRDVVHVVZKHWKHUWKHSURSRVHGDOWHUQDWLYHLVVXLWDEOHIRU
WKHDSSOLFDWLRQ7KHUHYLHZVKDOOFRQVLGHUWKHUHDVRQIRUWKHRULJLQDO3:+7RIWKHHTXLSPHQWVXVFHSWLELOLW\RIWKH
VHUYLFHWRSURPRWHVWUHVVFRUURVLRQFUDFNLQJVWUHVVHVLQRUQHDUWKHZHOGHWF
,I PDWHULDOV DUH RI XQNQRZQ WRXJKQHVV DQG IDOO XQGHU WKH )LJXUH H[HPSWLRQ FXUYH IROORZ WKH UHTXLUHPHQWV RI
7KHVWRUDJHWDQNHQJLQHHUPXVWFRQFXULQZULWLQJZLWKWKH3:+7H[HPSWLRQ$OVRWKHWDQNRZQHURSHUDWRU
PXVWDXWKRUL]HWKHH[HPSWLRQLQZULWLQJ
6HOHFWLRQRIWKHZHOGLQJPHWKRGXVHGVKDOOEHEDVHGRQWHFKQLFDOFRQVLGHUDWLRQRIWKHDGHTXDF\RIWKHZHOGLQWKHDV
ZHOGHGFRQGLWLRQDWRSHUDWLQJDQGK\GURWHVWFRQGLWLRQV
$3,67$1'$5' 3UHKHDWLQJ0HWKRG ,PSDFW7HVWLQJ1RW5HTXLUHG
,ILPSDFWWHVWLQJLVQRWUHTXLUHGWKHIROORZLQJDGGLWLRQDOSUHKHDWUHTXLUHPHQWVDSSO\
D 7KLVPHWKRGLVOLPLWHGWRXVHRQ3PDWHULDOVWKDWZHUHQRWUHTXLUHGWREHLPSDFWWHVWHGDVSDUWRIWKHRULJLQDO
FRQVWUXFWLRQRUXQGHUFXUUHQWUHTXLUHPHQWVRI$3,6HFWLRQ
E 7KHZHOGLQJVKDOOEHOLPLWHGWRWKHVKLHOGHGPHWDODUFZHOGLQJ 60$: JDVPHWDODUFZHOGLQJ *0$: IOX[FRUHG
DUFZHOGLQJ )&$: DQGJDVWXQJVWHQDUFZHOGLQJ *7$: SURFHVVHV
F 7KHZHOGHUVDQGZHOGLQJSURFHGXUHVVKDOOEHTXDOLILHGLQDFFRUGDQFHZLWKWKHDSSOLFDEOHUXOHVRIWKHRULJLQDOFRGH
RIFRQVWUXFWLRQH[FHSWWKDWWKH3:+7RIWKHWHVWFRXSRQXVHGWRTXDOLI\WKHSURFHGXUHVKDOOEHRPLWWHG
G 7KHZHOGDUHDVKDOOEHSUHKHDWHGDQGPDLQWDLQHGDWDPLQLPXPWHPSHUDWXUHRIq& q) GXULQJZHOGLQJ
7KHq& q) WHPSHUDWXUHVKDOOEHFKHFNHGWRDVVXUHWKDWPP LQ RIWKHPDWHULDORUIRXUWLPHVWKH
PDWHULDOWKLFNQHVV ZKLFKHYHULVJUHDWHU RQHDFKVLGHRIWKHJURRYHLVPDLQWDLQHGDWWKHPLQLPXPWHPSHUDWXUH
GXULQJZHOGLQJ7KHPD[LPXPLQWHUSDVVWHPSHUDWXUHVKDOOQRWH[FHHGq& q) :KHQWKHZHOGGRHVQRW
SHQHWUDWHWKURXJKWKHIXOOWKLFNQHVVRIWKHPDWHULDOWKHPLQLPXPSUHKHDWDQGPD[LPXPLQWHUSDVVWHPSHUDWXUHV
QHHGRQO\EHPDLQWDLQHGDWDGLVWDQFHRIPP LQ RUIRXUWLPHVWKHGHSWKRIWKHUHSDLUZHOG ZKLFKHYHULV
JUHDWHU RQHDFKVLGHRIWKHMRLQW
&RQWUROOHGGHSRVLWLRQ:HOGLQJ0HWKRG ,PSDFW7HVWLQJ5HTXLUHG ,ILPSDFWWHVWLQJLVUHTXLUHGWKHIROORZLQJZHOGLQJUHTXLUHPHQWVDSSO\
D 7KLVPHWKRGPD\EHXVHGZKHQZHOGLQJLVWREHSHUIRUPHGRQPDWHULDOVWKDWZHUHUHTXLUHGWREHLPSDFWWHVWHGSHU
DQGRI$3,DVSDUWRIWKHRULJLQDOFRQVWUXFWLRQRUXQGHUFXUUHQWUHTXLUHPHQWVRI$3,6HFWLRQ
DQGLVOLPLWHGWR33DQG3VWHHOV
E 7KHZHOGLQJVKDOOEHOLPLWHGWRWKHVKLHOGHGPHWDODUFZHOGLQJ 60$: JDVPHWDODUFZHOGLQJ *0$: IOX[FRUHG
DUFZHOGLQJ )&$: DQGJDVWXQJVWHQDUFZHOGLQJ *7$: SURFHVVHV
F $ZHOG SURFHGXUH VSHFLILFDWLRQ VKDOO EH GHYHORSHG DQG TXDOLILHG IRU HDFK DSSOLFDWLRQ7KH ZHOGLQJ SURFHGXUH
VKDOOGHILQHWKHSUHKHDWWHPSHUDWXUHWKHLQWHUSDVVWHPSHUDWXUHDQGWKHSRVWKHDWLQJWHPSHUDWXUHUHTXLUHPHQW
LQ,WHPH EHORZ7KHTXDOLILFDWLRQWKLFNQHVVIRUWKHWHVWSODWHVDQGUHSDLUJURRYHVVKDOOEHLQDFFRUGDQFHZLWK
7DEOH
7DEOH²:HOGLQJ0HWKRGVDV$OWHUQDWLYHVWR3RVWZHOG+HDW7UHDWPHQW 3:+7 4XDOLILFDWLRQ7KLFNQHVVHVIRU7HVW3ODWHVDQG5HSDLU*URRYHV
D
'HSWKtRI7HVW
*URRYH:HOGHGD
5HSDLU*URRYH
'HSWK4XDOLILHG
7KLFNQHVVTRI
7HVW&RXSRQ:HOGHG
7KLFNQHVVRI%DVH
0HWDO4XDOLILHG
t
t
PP LQ dT
t
t
tPP LQ
PP LQ WRXQOLPLWHG
7KHGHSWKRIWKHJURRYHXVHGIRUSURFHGXUHTXDOLILFDWLRQPXVWEHGHHSHQRXJKWRDOORZUHPRYDORIWKHUHTXLUHGWHVWVSHFLPHQ
7KH WHVW PDWHULDO IRU WKH ZHOGLQJ SURFHGXUH TXDOLILFDWLRQ VKDOO EH RI WKH VDPH PDWHULDO VSHFLILFDWLRQ LQFOXGLQJ
VSHFLILFDWLRQW\SHJUDGHFODVVDQGFRQGLWLRQRIKHDWWUHDWPHQW DVWKHRULJLQDOPDWHULDOVSHFLILFDWLRQIRUWKHUHSDLU
,IWKHRULJLQDOPDWHULDOVSHFLILFDWLRQLVREVROHWHWKHWHVWPDWHULDOXVHGVKRXOGFRQIRUPDVPXFKDVSRVVLEOHWRWKH
PDWHULDOXVHGIRUFRQVWUXFWLRQEXWLQQRFDVHVKDOOWKHPDWHULDOEHORZHULQVWUHQJWKRUKDYHDFDUERQFRQWHQWRI
PRUHWKDQ
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
G :KHQLPSDFWWHVWVDUHUHTXLUHGE\WKHFRQVWUXFWLRQFRGHDSSOLFDEOHWRWKHZRUNSODQQHGWKH345VKDOOLQFOXGH
VXIILFLHQWWHVWVWRGHWHUPLQHLIWKHWRXJKQHVVRIWKHZHOGPHWDODQGWKHKHDWDIIHFWHG]RQHRIWKHEDVHPHWDOLQWKH
DVZHOGHG FRQGLWLRQ DUH DGHTXDWH DW WKH PLQLPXP GHVLJQ PHWDO WHPSHUDWXUH ,I VSHFLDO KDUGQHVV OLPLWV DUH
QHFHVVDU\IRUFRUURVLRQUHVLVWDQFH HJWKRVHVHWIRUWKLQ1$&(531$&(05DQG1$&(05 WKH345VKDOOLQFOXGHKDUGQHVVWHVWUHVXOWV
H 7KH:36VKDOOLQFOXGHWKHIROORZLQJDGGLWLRQDOUHTXLUHPHQWV
7KHVXSSOHPHQWDU\HVVHQWLDOYDULDEOHVRI$60( &RGH6HFWLRQ,;3DUDJUDSK4:VKDOOEHUHTXLUHG
7KHPD[LPXPZHOGKHDWLQSXWIRUHDFKOD\HUVKDOOQRWH[FHHGWKDWXVHGLQWKHSURFHGXUHTXDOLILFDWLRQWHVW
7KHPLQLPXPSUHKHDWWHPSHUDWXUHIRUZHOGLQJVKDOOQRWEHOHVVWKDQWKDWXVHGLQWKHSURFHGXUHTXDOLILFDWLRQ
WHVW
7KH PD[LPXP LQWHUSDVV WHPSHUDWXUH IRU ZHOGLQJ VKDOO QRW EH JUHDWHU WKDQ WKDW XVHG LQ WKH SURFHGXUH
TXDOLILFDWLRQWHVW
7KH SUHKHDW WHPSHUDWXUH VKDOO EH FKHFNHG WR DVVXUH WKDW PP LQ RI WKH PDWHULDO RU IRXU WLPHV WKH
PDWHULDO WKLFNQHVV ZKLFKHYHU LV JUHDWHU RQ HDFK VLGH RI WKH ZHOG MRLQW ZLOO EH PDLQWDLQHG DW WKH PLQLPXP
WHPSHUDWXUHGXULQJZHOGLQJ:KHQWKHZHOGGRHVQRWSHQHWUDWHWKURXJKWKHIXOOWKLFNQHVVRIWKHPDWHULDOWKH
PLQLPXPSUHKHDWWHPSHUDWXUHQHHGRQO\EHPDLQWDLQHGDWDGLVWDQFHRI
PP LQ RUIRXUWLPHVWKHGHSWK
RIWKHUHSDLUZHOGZKLFKHYHULVJUHDWHUIURPWKHHGJHRIHDFKZHOG
)RUWKHZHOGLQJSURFHVVHVLQE XVHRQO\HOHFWURGHVDQGILOOHUPHWDOVWKDWDUHFODVVLILHGE\WKHILOOHUPHWDO
VSHFLILFDWLRQZLWKDQRSWLRQDOVXSSOHPHQWDOGLIIXVLEOHK\GURJHQGHVLJQDWRURI+RUORZHU:KHQVKLHOGLQJJDVHV
DUHXVHGZLWKWKLVSURFHVVWKHJDVVKDOOH[KLELWDGHZSRLQWWKDWLVQRKLJKHUWKDQ±q& ±q) 6XUIDFHVRQ
ZKLFKZHOGLQJLVWRSHUIRUPHGVKDOOEHPDLQWDLQHGLQDGU\FRQGLWLRQGXULQJWKHZHOGLQJDQGIUHHRIUXVWPLOO
VFDOHDQGK\GURJHQSURGXFLQJFRQWDPLQDQWVVXFKDVRLOJUHDVHDQGRWKHURUJDQLFPDWHULDOV
7KH ZHOGLQJ WHFKQLTXH VKDOO EH D FRQWUROOHGGHSRVLWLRQ WHPSHUEHDG RU KDOIEHDG WHFKQLTXH 7KH VSHFLILF
WHFKQLTXHVKDOOEHXVHGLQWKHSURFHGXUHTXDOLILFDWLRQWHVW
)RUZHOGVPDGHE\60$:DIWHUFRPSOHWLRQRIZHOGLQJDQGZLWKRXWDOORZLQJWKHZHOGPHQWWRFRROEHORZWKH
PLQLPXPSUHKHDWWHPSHUDWXUHWKHWHPSHUDWXUHRIWKHZHOGPHQWVKDOOEHUDLVHGWRDWHPSHUDWXUHRIq&
“q& q)“q) IRUDPLQLPXPSHULRGRIWZRWRIRXUKRXUVWRDVVLVWRXWJDVVLQJGLIIXVLRQRIDQ\ZHOG
PHWDOK\GURJHQSLFNHGXS GXULQJZHOGLQJ7KLVK\GURJHQEDNHRXWWUHDWPHQWPD\ EHRPLWWHG SURYLGHGWKH
HOHFWURGHXVHGLVFODVVLILHGE\WKHILOOHUPHWDOVSHFLILFDWLRQZLWKDQRSWLRQDOVXSSOHPHQWDOGLIIXVLEOHK\GURJHQ
GHVLJQDWRURI+ VXFKDV(+ $IWHU WKH ILQLVKHG UHSDLU ZHOG KDV FRROHG WR DPELHQW WHPSHUDWXUH WKH ILQDO WHPSHU EHDG UHLQIRUFHPHQW OD\HU
VKDOOEHUHPRYHGVXEVWDQWLDOO\IOXVKZLWKWKHVXUIDFHRIWKHEDVHPDWHULDO
:HOGLQJ6DIHW\
:HOGLQJVKDOOFRQIRUPWRWKHSHUPLWDQGVDIHW\SUHFDXWLRQVRI6HFWLRQRI$3,3HUPLWVVKDOOFRQVLGHUWDQN
FRQGLWLRQVLQWKHKRWZRUNDUHDVZKLFKPLJKWUHOHDVHIODPPDEOHYDSRUV VXFKDVSHUIRUDWLRQUHVXOWLQJIURPFRUURVLRQ 6HFWLRQ²([DPLQDWLRQDQG7HVWLQJ
1'(
*HQHUDO
1'(VKDOOEHSHUIRUPHGLQDFFRUGDQFHZLWK$3,6HFWLRQDQGDQ\VXSSOHPHQWDOUHTXLUHPHQWVJLYHQ
KHUHLQ
3HUVRQQHOSHUIRUPLQJ1'(VKDOOEHTXDOLILHGLQDFFRUGDQFHZLWK$3,6HFWLRQDQGDQ\VXSSOHPHQWDO
UHTXLUHPHQWVJLYHQKHUHLQ
$FFHSWDQFH FULWHULD VKDOO EH LQ DFFRUGDQFH ZLWK$3, 6HFWLRQ DQG DQ\ VXSSOHPHQWDO UHTXLUHPHQWV
JLYHQKHUHLQ
([DPLQHUVSHUIRUPLQJXOWUDVRQLFWKLFNQHVVPHDVXUHPHQWVVKDOOEHTXDOLILHGLQDFFRUGDQFHZLWKDQDSSURYHG
SURFHGXUHDQGVKDOOEHFHUWLILHGWR$61787/HYHO,,IXOORUOLPLWHGFHUWLILFDWLRQIRUHLWKHUGLJLWDOWKLFNQHVVPHDVXUHPHQW
QXPHULF RXWSXW RQO\ RU$VFDQ WKLFNQHVV PHDVXUHPHQW DFFRUGLQJ WR$6176177&$ RU DQ HTXLYDOHQW QDWLRQDO
VWDQGDUGUHFRJQL]HGE\WKHRZQHURSHUDWRU7UDLQHHSHUVRQQHOPD\EHXVHGLIWKH\DUHXQGHUGLUHFWVXSHUYLVLRQRI/HYHO
,,RU/HYHO,,,87FHUWLILHGSHUVRQQHO
(DFKQHZO\GHSRVLWHGZHOGRUDQ\FDYLW\UHVXOWLQJIURPJRXJLQJRUJULQGLQJRSHUDWLRQVVKDOOEHYLVXDOO\
H[DPLQHGRYHULWVIXOOOHQJWK$GGLWLRQDO1'(RIWKHVHZHOGVPD\EHUHTXLUHGDVGHVFULEHGLQWKHIROORZLQJUHOHYDQW
VHFWLRQV
$QQH[ * PD\ EH XVHG WR SURYLGH DGGLWLRQDO JXLGDQFH LQ TXDOLI\LQJ SHUVRQQHO DQG SURFHGXUHV ZKHQ
PDJQHWLFIOX[OHDNDJH 0)/ WRROVDUHXVHGWRH[DPLQHWDQNERWWRPV2ZQHURSHUDWRUVVKRXOGGHWHUPLQHVSHFLILF
UHTXLUHPHQWVWRPHHWWKHLUWDQNERWWRPLQWHJULW\QHHGV
8OWUDVRQLFH[DPLQDWLRQLQDFFRUGDQFHZLWK$3,$QQH[8PD\EHDOWHUQDWLYHO\DSSOLHGE\DJUHHPHQW
EHWZHHQWKH3XUFKDVHUDQG0DQXIDFWXUHUZKHQWKHUDGLRJUDSKLFPHWKRGLVVSHFLILHGIRUH[DPLQDWLRQRIZHOGV
6KHOO3HQHWUDWLRQV
8OWUDVRQLFH[DPLQDWLRQRIVKHOOSODWHIRUODPLQDWLRQVVKDOOEHPDGHLQWKHLPPHGLDWHDUHDDIIHFWHGZKHQ
D DGGLQJDUHLQIRUFLQJSODWHWRDQH[LVWLQJXQUHLQIRUFHGSHQHWUDWLRQ
E DGGLQJDKRWWDSFRQQHFWLRQ
&DYLWLHVUHVXOWLQJIURPJRXJLQJRUJULQGLQJRSHUDWLRQVWRUHPRYHDWWDFKPHQWZHOGVRIH[LVWLQJUHLQIRUFLQJ
SODWHVVKDOOEHH[DPLQHGE\PDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGV
&RPSOHWHGZHOGVDWWDFKLQJQR]]OHQHFNWRVKHOODQGUHLQIRUFLQJSODWHWRVKHOODQGWRQR]]OHQHFNVKDOOEH
H[DPLQHG E\ WKH PDJQHWLF SDUWLFOH RU OLTXLG SHQHWUDQW PHWKRGV &RQVLGHU DGGLWLRQDO H[DPLQDWLRQ HJ IOXRUHVFHQW
PDJQHWLF SDUWLFOH H[DPLQDWLRQ DQGRU XOWUDVRQLF H[DPLQDWLRQ IRU KRW WDS FRQQHFWLRQV WR VKHOO SODWHV RI XQNQRZQ
WRXJKQHVV GHILQHGLQ6HFWLRQ &RPSOHWHG ZHOGV RI VWUHVVUHOLHYHG DVVHPEOLHV VKDOO EH H[DPLQHG E\ WKH PDJQHWLF SDUWLFOH RU OLTXLG
SHQHWUDQWPHWKRGVDIWHUVWUHVVUHOLHIEXWEHIRUHK\GURVWDWLFWHVWLQJ
$3,67$1'$5' ([DPLQDWLRQRI5HSDLUHG:HOG'HIHFWV
&DYLWLHVUHVXOWLQJIURPJRXJLQJRUJULQGLQJRSHUDWLRQVWRUHPRYHZHOGGHIHFWVVKDOOEHH[DPLQHGE\WKH
PDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGV
&RPSOHWHGZHOGUHSDLUVRIEXWWZHOGVVKDOOEHH[DPLQHGRYHUWKHLUIXOOOHQJWKE\UDGLRJUDSKLFRUXOWUDVRQLF
PHWKRGV +RZHYHU IRU FRPSOHWHG UHSDLUV WR EXWW ZHOGV IRXQG LQ VKHOO SODWH WR VKHOO SODWH MRLQWV WKH DGGLWLRQDO
UDGLRJUDSKVDVUHTXLUHGLQF F DQGF GRQRWDSSO\
&RPSOHWHG ZHOG UHSDLUV RI ILOOHW ZHOGV VKDOO EH H[DPLQHG RYHU WKHLU IXOO OHQJWK E\ WKH DSSURSULDWH 1'(
PHWKRGOLVWHGKHUHLQ
7HPSRUDU\DQG3HUPDQHQW$WWDFKPHQWVWR6KHOO3ODWHV
7KH ZHOGV RI SHUPDQHQW DWWDFKPHQWV QRW LQFOXGLQJ VKHOOWRERWWRP ZHOGV DQG DUHDV ZKHUH WHPSRUDU\
DWWDFKPHQWVDUHUHPRYHGDQGWKHUHPDLQLQJZHOGSURMHFWLRQVKDYHEHHQUHPRYHGVKDOOEHH[DPLQHGYLVXDOO\
7KH UHTXLUHPHQWV RI WKLV VHFWLRQ VKDOO EH IROORZHG ZKHQ ZHOGLQJ WR$3, *URXS ,9 ,9$ 9 DQG 9,
PDWHULDOVRUZKHQWKH$3,*URXSIRUWKHPDWHULDOFDQQRWEHUHDVRQDEO\DVFHUWDLQHGLQ6HFWLRQ &RPSOHWHG
ZHOGVRIQHZSHUPDQHQWDWWDFKPHQWV QRWLQFOXGLQJVKHOOWRERWWRPZHOGV DQGDUHDVZKHUHWHPSRUDU\DWWDFKPHQWV
KDYHEHHQUHPRYHGVKDOOEHH[DPLQHGE\WKHPDJQHWLFSDUWLFOHPHWKRG RUDWWKHRSWLRQRIWKH3XUFKDVHUE\WKH
OLTXLGSHQHWUDQWPHWKRG 6KHOO3ODWHWR6KHOO3ODWH:HOGV
1HZIXOOSHQHWUDWLRQZHOGVDWWDFKLQJH[LVWLQJVKHOOSODWHWRH[LVWLQJRUQHZVKHOOSODWHVKDOOEHH[DPLQHGE\
UDGLRJUDSKLFPHWKRGV VHH ,QDGGLWLRQIRUSODWHWKLFNQHVVHVJUHDWHUWKDQLQWKHEDFNJRXJHGVXUIDFHRIWKH
URRWSDVVDQGILQDOSDVV HDFKVLGH VKDOOEHH[DPLQHGIRULWVFRPSOHWHOHQJWKE\PDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQW
PHWKRGV
1HZ ZHOGV MRLQLQJ QHZ VKHOO SODWH PDWHULDO WR QHZ VKHOO SODWH PDWHULDO SDUWLDO RU IXOO VKHOO FRXUVH
UHSODFHPHQWRUDGGLWLRQ QHHGRQO\EHH[DPLQHGUDGLRJUDSKLFDOO\LQDFFRUGDQFHZLWK$3,6HFWLRQ
6KHOOWRERWWRP:HOG
1HZ ZHOGLQJ RQ WKH VKHOOWRERWWRP MRLQW VKDOO EH H[DPLQHG IRU LWV HQWLUH OHQJWK E\ XVLQJ D ULJKWDQJOH
YDFXXPER[DQGDVROXWLRQILOPRUE\DSSO\LQJOLJKWGLHVHORLO$GGLWLRQDOO\WKHILUVWZHOGSDVVVKDOOEHH[DPLQHGE\
DSSO\LQJOLJKWGLHVHORLOWRWKHVLGHRSSRVLWHWKHILUVWZHOGSDVVPDGH7KHRLOVKDOOEHDOORZHGWRVWDQGDWOHDVWKRXUV
SUHIHUDEO\RYHUQLJKW DQGWKHQWKHZHOGH[DPLQHGIRUZLFNLQJDFWLRQ7KHRLOVKDOOEHUHPRYHGEHIRUHWKHZHOGLV
FRPSOHWHG
$VDQDOWHUQDWLYHWRWKHLQLWLDOZHOGSDVVHVLQVLGHDQGRXWVLGHRIWKHVKHOOVKDOOKDYHDOOVODJDQG
QRQPHWDOVUHPRYHGIURPWKHVXUIDFHRIWKHZHOGVDQGH[DPLQHGYLVXDOO\$GGLWLRQDOO\DIWHUFRPSOHWLRQRIWKHLQVLGH
DQGRXWVLGHILOOHWRUSDUWLDOSHQHWUDWLRQZHOGVWKHZHOGVVKDOOEHWHVWHGE\SUHVVXUL]LQJWKHYROXPHEHWZHHQWKHLQVLGH
DQG RXWVLGH ZHOGV ZLWK DLU SUHVVXUH WR SVLJ DQG DSSO\LQJ D VROXWLRQ ILOP WR ERWK ZHOGV 7R DVVXUH WKDW WKH DLU
SUHVVXUHUHDFKHVDOOSDUWVRIWKHZHOGVDVHDOHGEORFNDJHLQWKHDQQXODUSDVVDJHEHWZHHQWKHLQVLGHDQGRXWVLGH
ZHOGVPXVWEHSURYLGHGE\ZHOGLQJDWRQHRUPRUHSRLQWV$GGLWLRQDOO\DVPDOOSLSHFRXSOLQJFRPPXQLFDWLQJZLWKWKH
YROXPHEHWZHHQWKHZHOGVPXVWEHZHOGHGRQHDFKVLGHRIDQGDGMDFHQWWRWKHEORFNDJHV7KHDLUVXSSO\PXVWEH
FRQQHFWHGDWRQHHQGDQGDSUHVVXUHJDXJHFRQQHFWHGWRDFRXSOLQJRQWKHRWKHUHQGRIWKHVHJPHQWXQGHUWHVW
7KHH[LVWLQJZHOGDWWKHVKHOOWRERWWRPMRLQWVKDOOEHH[DPLQHGE\YLVXDODVZHOODVE\PDJQHWLFSDUWLFOHRU
OLTXLGSHQHWUDQWPHWKRGVIRUWKHIXOOOHQJWKXQGHUDZHOGHGRQSDWFKSODWH$QDGGLWLRQDOLQRIWKHVKHOOWRERWWRP
MRLQWRQHDFKVLGHRIWKHZHOGHGRQSDWFKSODWHVKDOOEHH[DPLQHGVLPLODUO\EHIRUHSODFHPHQWRIWKHUHSDLUSODWHWR
DVVXUHZHOGLQWHJULW\DQGWRFRQILUPWKHDEVHQFHRIZHOGFUDFNV
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
%RWWRPV
8SRQFRPSOHWLRQRIZHOGLQJRQDWDQNERWWRPWKHSODWHVDQGWKHHQWLUHOHQJWKRIQHZZHOGVIRUWDQNERWWRP
SODWHVVKDOOEHH[DPLQHGYLVXDOO\IRUDQ\SRWHQWLDOGHIHFWVDQGOHDNV3DUWLFXODUDWWHQWLRQVKDOODSSO\WRDUHDVVXFKDV
VXPSVGHQWVJRXJHVWKUHHSODWHODSVERWWRPSODWHEUHDNGRZQVDUFVWULNHVWHPSRUDU\DWWDFKPHQWUHPRYDODUHDV
DQGZHOGLQJOHDGDUFEXUQV9LVXDOH[DPLQDWLRQDFFHSWDQFHDQGUHSDLUFULWHULDDUHVSHFLILHGLQ$3,6HFWLRQ
,QDGGLWLRQDOOQHZZHOGVLQFOXGLQJWKHZHOGDWWDFKLQJDSDWFKSODWHWRWKHERWWRPWKHDUHDVRIERWWRPSODWHUHVWRUHG
E\ZHOGLQJDQGWKHUHVWRUDWLRQRIZHOGVIRXQGZLWKGHIHFWVGXULQJDQLQWHUQDOLQVSHFWLRQVKDOOEHH[DPLQHGE\RQHRI
WKH PHWKRGV VSHFLILHG LQ$3, 6HFWLRQ /HDNLQJ DUHDV VKDOO EH UHSDLUHG E\ JULQGLQJ DQG UHZHOGLQJ DV
UHTXLUHGDQGWKHUHSDLUHGDUHDVKDOOEHUHWHVWHG
,QDGGLWLRQWRWKHUHTXLUHPHQWVLQWKHURRWDQGILQDOSDVVRIDZHOGHGRQSDWFKSODWHZHOGLQWKH
FULWLFDO]RQH VHHIRUGHILQLWLRQ VKDOOEHYLVXDOO\H[DPLQHGDQGH[DPLQHGE\HLWKHUPDJQHWLFSDUWLFOHRUOLTXLG
SHQHWUDQWPHWKRGRYHULWVIXOOOHQJWK
,QDGGLWLRQWRWKHUHTXLUHPHQWVLQDUHDVRIERWWRPSODWHUHSDLUHGE\ZHOGLQJVKDOOEHH[DPLQHGE\
WKHPDJQHWLFSDUWLFOHPHWKRGRUWKHOLTXLGSHQHWUDQWPHWKRG,QDGGLWLRQWKHUHSDLUHGDUHDVKDOODOVREHWHVWHGXVLQJ
DYDFXXPER[DQGVROXWLRQRUDWUDFHUJDVDQGGHWHFWRU
6KHOO3ODWH
6KHOO3ODWH5HSDLUVE\:HOG0HWDO'HSRVLW
$UHDVRIVKHOOSODWHWREHUHSDLUHGE\ZHOGLQJVKDOOEHH[DPLQHGYLVXDOO\,QDGGLWLRQVKHOOSODWHDUHDVUHSDLUHGE\
ZHOGLQJVKDOOEHH[DPLQHGE\WKHPDJQHWLFSDUWLFOHPHWKRG RUWKHOLTXLGSHQHWUDQWPHWKRG 6KHOO3ODWH5HSDLUVE\/DSZHOGHG3DWFKHV
7KHDWWDFKPHQWZHOGVRIQHZODSZHOGHGVKHOOSDWFKHVVKDOOEHYLVXDOO\H[DPLQHGDQGVKDOOEHH[DPLQHGE\HLWKHU
WKHPDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGV
)L[HG5RRIV
1HZO\ZHOGHGURRIMRLQWVDQGUHSDLUVVKDOOEHH[DPLQHGLQDFFRUGDQFHZLWK$3,6HFWLRQDQG6HFWLRQ
)ORDWLQJ5RRIV
5HSDLU:RUNWR6WHHO)ORDWLQJ5RRIV
$IWHUUHSDLUZRUNLVFRPSOHWH
D SHUIRUPDYLVXDOH[DPLQDWLRQIURPWKHWRSDQGERWWRPVLGHRIWKHIORDWLQJURRI
E SHUIRUPDQDLUOHDNYDFXXPER[SHQHWUDWLQJRLOWUDFHUJDVRURWKHUDSSOLFDEOHQRQGHVWUXFWLYHWHVWRIWKHUHSDLUHG
ZHOGV VHH$QQH[) $VDQDOWHUQDWLYHWR,WHPE FRQGXFWDIORWDWLRQWHVWRIWKHUHSDLUHGURRI
([DPLQDWLRQDQGDFFHSWDQFHFULWHULDIRU1'(VKDOOEHLQDFFRUGDQFHZLWK
$3,67$1'$5' 5DGLRJUDSKV
1XPEHUDQG/RFDWLRQRI5DGLRJUDSKV
7KHQXPEHUDQGORFDWLRQRIUDGLRJUDSKVRIWKHIXOOSHQHWUDWLRQVKHOOSODWHWRVKHOOSODWHZHOGVVKDOOEHLQDFFRUGDQFH
ZLWK$3,6HFWLRQDQGWKHIROORZLQJDGGLWLRQDOUHTXLUHPHQWV
)RUYHUWLFDOMRLQWV
D QHZUHSODFHPHQWVKHOOSODWHVWRQHZVKHOOSODWHVQRDGGLWLRQDOUDGLRJUDSKVUHTXLUHGRWKHUWKDQWKRVHUHTXLUHGE\
$3,6HFWLRQDQG)LJXUHIRUQHZFRQVWUXFWLRQ
E QHZUHSODFHPHQWVKHOOSODWHVWRH[LVWLQJVKHOOSODWHVRQHDGGLWLRQDOUDGLRJUDSKVKDOOEHWDNHQLQHDFKMRLQW
F UHSDLUHGMRLQWVLQH[LVWLQJVKHOOSODWHVVKDOOKDYHRQHDGGLWLRQDOUDGLRJUDSKWDNHQLQHDFKMRLQW
)RUKRUL]RQWDOMRLQWV
D QHZUHSODFHPHQWVKHOOSODWHVWRQHZVKHOOSODWHVQRDGGLWLRQDOUDGLRJUDSKVUHTXLUHGRWKHUWKDQWKRVHUHTXLUHGE\
$3,6HFWLRQDQG)LJXUHIRUQHZFRQVWUXFWLRQ
E QHZUHSODFHPHQWVKHOOSODWHVWRH[LVWLQJVKHOOSODWHVRQHDGGLWLRQDOUDGLRJUDSKIRUHDFKIWRIUHSDLUHGKRUL]RQWDO
ZHOG
F UHSDLUHG MRLQWV LQ H[LVWLQJ VKHOO SODWHV VKDOO KDYH RQH DGGLWLRQDO UDGLRJUDSK WDNHQ IRU HDFK IW RI UHSDLUHG
KRUL]RQWDOZHOG
)RULQWHUVHFWLRQVRIYHUWLFDODQGKRUL]RQWDOMRLQWV
D QHZUHSODFHPHQWVKHOOSODWHVWRQHZVKHOOSODWHVQRDGGLWLRQDOUDGLRJUDSKVUHTXLUHGRWKHUWKDQWKRVHUHTXLUHGE\
$3,6HFWLRQDQG)LJXUHIRUQHZFRQVWUXFWLRQ
E QHZUHSODFHPHQWVKHOOSODWHVWRH[LVWLQJVKHOOSODWHVHDFKLQWHUVHFWLRQVKDOOEHUDGLRJUDSKHG
F DOOUHSDLUHGLQWHUVHFWLRQVLQH[LVWLQJVKHOOSODWHVVKDOOEHUDGLRJUDSKHG
)RUUHFRQVWUXFWHGWDQNVHDFKEXWWZHOGHGDQQXODUSODWHMRLQWVKDOOEHUDGLRJUDSKHGLQDFFRUGDQFHZLWK
$3,6HFWLRQ
)RUUHFRQVWUXFWHGWDQNVUDGLRJUDSKLFH[DPLQDWLRQLVUHTXLUHGIRU
RIDOOMXQFWLRQVRIQHZZHOGVRYHU
H[LVWLQJVHDPV
7KHRZQHURSHUDWRUVKDOOZLWKWKHFRQVHQWRIWKHFRQWUDFWRUGHWHUPLQHWKHH[WHQWRIIXUWKHUH[DPLQDWLRQDQGUHSDLU
WKDWPD\EHUHTXLUHG
$Q\ IXUWKHU H[DPLQDWLRQ RU UHSDLU RI H[LVWLQJ ZHOGV ZLOO EH KDQGOHG E\ FRQWUDFWXDO DJUHHPHQW EHWZHHQ WKH RZQHU
RSHUDWRUDQGWDQNUHFRQVWUXFWLRQFRQWUDFWRU
1HZDQGUHSODFHGVKHOOSODWHDQGGRRUVKHHWZHOGVVKDOOEHUDGLRJUDSKHG$OOMXQFWLRQVEHWZHHQUHSDLUDQG
H[LVWLQJZHOGVVKDOOEHUDGLRJUDSKHG,IGHIHFWVDUHIRXQG UDGLRJUDSK\VKDOOEHSHUIRUPHGRQWKHUHSDLUHGZHOG
)RU FLUFXODU UHSODFHPHQWSODWHV D PLQLPXPRI RQH UDGLRJUDSKVKDOO EH WDNHQ UHJDUGOHVV RI WKLFNQHVV
:KHQWKHFLUFXODUUHSODFHPHQWSODWHLVORFDWHGLQDVKHOOSODWHZLWKWKLFNQHVVH[FHHGLQJLQWKHZHOGVKDOOEHIXOO\
UDGLRJUDSKHG
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
)RUVTXDUHDQGUHFWDQJXODUUHSODFHPHQWSODWHVDWOHDVWRQHUDGLRJUDSKVKDOOEHWDNHQLQDYHUWLFDOMRLQW
DQGDWOHDVWRQHLQDKRUL]RQWDOMRLQWDQGRQHLQHDFKFRUQHU:KHQWKHVTXDUHRUUHFWDQJXODUUHSODFHPHQWSODWHLV
ORFDWHGLQDVKHOOSODWHZLWKWKLFNQHVVH[FHHGLQJLQWKHYHUWLFDOMRLQWVVKDOOEHIXOO\UDGLRJUDSKHG
7KHPLQLPXPGLDJQRVWLFOHQJWKRIHDFKUDGLRJUDSKVKDOOEHLQ
)RUSHQHWUDWLRQVLQVWDOOHGXVLQJLQVHUWSODWHVRUWKLFNHQHGLQVHUWSODWHVDVGHVFULEHGLQWKHFRPSOHWHG
EXWW ZHOGV EHWZHHQ WKH LQVHUW SODWH RU WKLFNHQHG LQVHUW SODWH DQG WKH DGMRLQLQJ VKHOO PDWHULDO VKDOO EH IXOO\
UDGLRJUDSKHG
$FFHSWDQFH&ULWHULDIRU([LVWLQJ6KHOO3ODWHWR6KHOO3ODWH:HOGV
,IWKHUDGLRJUDSKRIDQLQWHUVHFWLRQEHWZHHQDQHZDQGROGZHOGGHWHFWVXQDFFHSWDEOHZHOGVE\WKHFXUUHQWDSSOLFDEOH
VWDQGDUGWKHH[LVWLQJZHOGVVKDOOEH
D HYDOXDWHGDFFRUGLQJWRWKHDVEXLOWVWDQGDUGRU
E HYDOXDWHGXVLQJILWQHVVIRUVHUYLFHDVVHVVPHQWRU
F UHSDLUHGLQDFFRUGDQFHZLWK
0DUNLQJDQG,GHQWLILFDWLRQRI5DGLRJUDSKV
(DFKILOPVKDOOVKRZDQLGHQWLILFDWLRQRIWKHZHOGHU V PDNLQJWKHZHOG$ZHOGPDSVKRZLQJORFDWLRQRI
ZHOGVZHOGQXPEHUUDGLRJUDSKQXPEHUZHOGHULGHQWLILFDWLRQDQGJUDGLQJRIHDFKZHOGLVDQDFFHSWDEOHDOWHUQDWLYH
WRWKLVUHTXLUHPHQW
5DGLRJUDSKVDQGUDGLRJUDSKUHFRUGVRIDOOUHSDLUHGZHOGVVKDOOEHPDUNHGZLWKWKHOHWWHU³5´
+\GURVWDWLF7HVWLQJ
:KHQ+\GURVWDWLF7HVWLQJLV5HTXLUHG
$K\GURVWDWLFWHVWVKDOOEHSHUIRUPHGRQWKHIROORZLQJ
D $UHFRQVWUXFWHGWDQN
E $Q\WDQNWKDWKDVXQGHUJRQHPDMRUUHSDLUVRUPDMRUDOWHUDWLRQV VHH6HFWLRQ XQOHVVH[HPSWHGE\IRUWKH
DSSOLFDEOHFRPELQDWLRQRIPDWHULDOVGHVLJQDQGFRQVWUXFWLRQIHDWXUHV
F $ WDQN ZKHUH DQ HQJLQHHULQJ HYDOXDWLRQ LQGLFDWHV WKH QHHG IRU WKH K\GURVWDWLF WHVW GXH WR DQ LQFUHDVH LQ WKH
VHYHULW\RIVHUYLFH([DPSOHVRILQFUHDVHGVHUYLFHVHYHULW\DUHDQLQFUHDVHLQRSHUDWLQJSUHVVXUH VXFKDVVWRULQJ
DSURGXFWZLWKDKLJKHUVSHFLILFJUDYLW\ ORZHULQJWKHVHUYLFHWHPSHUDWXUH VHH)LJXUH DQGXVLQJWDQNVWKDW
KDYHEHHQGDPDJHG
+\GURVWDWLF7HVW3URFHGXUH
7KHK\GURVWDWLFWHVWSURFHGXUHHQFRPSDVVHVWKHIROORZLQJVWHSV
$WDQNZLWKDK\GURVWDWLFWHVWUHTXLUHGE\WKLVVWDQGDUGVKDOOEHILOOHGWRWKHOHYHOVWDWHGLQ$3,6HFWLRQ
D XQOHVVWKHOHYHOLVOLPLWHGE\WKHWDQNFRQGLWLRQDVJLYHQLQVHFWLRQRIWKLVVWDQGDUG
7KDWOLTXLGOHYHOVKDOOEHKHOGIRUDPLQLPXPRIKRXUV
7KHWDQNVKDOOEHLQVSHFWHGIUHTXHQWO\GXULQJWKHILOOLQJRSHUDWLRQIRULQGLFDWLRQVRIOHDNVDQGRUVHWWOHPHQW$Q\
UHSDLUHGZHOGMRLQWVDERYHWKHOLTXLGOHYHOVKDOOEHH[DPLQHGLQDFFRUGDQFHZLWK$3,6HFWLRQ E $3,67$1'$5' +\GURVWDWLF7HVWLQJ([HPSWLRQV 0DMRU5HSDLUV$OWHUDWLRQV
*HQHUDO
$IXOOK\GURVWDWLFWHVWRIWKHWDQNLVQRWUHTXLUHGIRUPDMRUUHSDLUVDQGPDMRUDOWHUDWLRQVLILVVDWLVILHGSOXV
HLWKHURIWKHIROORZLQJ
D DSSURSULDWHSDUWVRIWKURXJKRU
E ILWQHVVIRUVHUYLFHHYDOXDWLRQSHU
5HYLHZ$SSURYDO$XWKRUL]DWLRQ5HTXLUHPHQWV
,WHPVD DQGE EHORZPXVWEHVDWLVILHG
D 7KHUHSDLUKDVEHHQUHYLHZHGDQGDSSURYHGE\DQHQJLQHHUH[SHULHQFHGLQVWRUDJHWDQNGHVLJQLQDFFRUGDQFH
ZLWK$3,7KHHQJLQHHUPXVWFRQFXULQZULWLQJZLWKWDNLQJWKHK\GURVWDWLFWHVWLQJH[HPSWLRQ
E 7KHWDQNRZQHURSHUDWRUKDVDXWKRUL]HGWKHH[HPSWLRQLQZULWLQJ
6KHOO5HSDLU
)RU ZHOGV WR H[LVWLQJ PHWDO GHYHORS ZHOGLQJ SURFHGXUH TXDOLILFDWLRQV EDVHG RQ H[LVWLQJ PDWHULDO
FKHPLVWU\LQFOXGLQJVWUHQJWKUHTXLUHPHQWV:HOGLQJSURFHGXUHVVKDOOEHTXDOLILHGZLWKH[LVWLQJRUVLPLODUPDWHULDOV
DQG VKDOOLQFOXGH LPSDFW WHVWLQJ ,PSDFW WHVWLQJ UHTXLUHPHQWV VKDOOIROORZ DSSURSULDWH SRUWLRQVRI$3, 6HFWLRQ
DQGVKDOOEHVSHFLILHGLQWKHUHSDLUSURFHGXUH
1HZPDWHULDOVXVHGIRUWKHUHSDLUVKDOOPHHWWKHFXUUHQWHGLWLRQRI$3,6HFWLRQUHTXLUHPHQWV
([LVWLQJWDQNPDWHULDOVLQWKHUHSDLUDUHDVKDOOPHHWDWOHDVWRQHRIWKHIROORZLQJUHTXLUHPHQWV
D $3,UHTXLUHPHQWV 6HYHQWK(GLWLRQRUODWHU E )DOOZLWKLQWKH³VDIHIRUXVH´DUHDRQ)LJXUH
F 6WUHVVLQWKHUHSDLUDUHDVKDOOQRWH[FHHGOEILQ7KLVOLPLWLQJVWUHVVVKDOOEHFDOFXODWHGDVIROORZV
S
H D G
t
ZKHUH
S
LVWKHVKHOOVWUHVVLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ H
LVWKHWDQNILOOKHLJKWDERYHWKHERWWRPRIUHSDLURUDOWHUDWLRQLQIHHW IW t
LVWKHVKHOOWKLFNQHVVDWDUHDRILQWHUHVWLQLQFKHV LQ D
LVWKHWDQNPHDQGLDPHWHULQIHHW IW G
LVWKHVSHFLILFJUDYLW\RISURGXFW
1HZYHUWLFDODQGKRUL]RQWDOVKHOOEXWWZHOGVVKDOOKDYHFRPSOHWHSHQHWUDWLRQDQGIXVLRQ
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
7KHURRWSDVVDQGILQDOSDVV H[DPLQDWLRQ VKDOOEHLQ DFFRUGDQFHZLWK,QDGGLWLRQ WKHILQLVKHG
ZHOGVKDOOEHIXOO\UDGLRJUDSKHG
6KHOOZHOGVIRUWKHUHLQIRUFLQJSODWHWRQR]]OHQHFNDQGQR]]OHQHFNWRVKHOOMRLQWVVKDOOKDYHFRPSOHWH
SHQHWUDWLRQ DQG IXVLRQ 7KH URRW SDVV RI WKH QR]]OH DWWDFKPHQW ZHOG VKDOO EH EDFNJRXJHG DQG H[DPLQHG E\
PDJQHWLF SDUWLFOH RU OLTXLG SHQHWUDQW PHWKRGV &RPSOHWHG ZHOGV VKDOO EH H[DPLQHG E\ PDJQHWLF SDUWLFOH RU OLTXLG
SHQHWUDQW PHWKRGV$GGLWLRQDOO\ FRPSOHWHG ZHOGV VKDOO EH H[DPLQHG E\ WKH XOWUDVRQLF PHWKRG ([DPLQDWLRQ DQG
DFFHSWDQFHFULWHULDIRU1'(VKDOOEHLQDFFRUGDQFHZLWK
6HHIRUVKHOOWRERWWRPZHOGUHVWULFWLRQV
'RRUVKHHWVVKDOOFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKLVVWDQGDUGIRUVKHOOSODWHLQVWDOODWLRQH[FHSWWKH\
VKDOOQRWH[WHQGWRRULQWHUVHFWWKHERWWRPWRVKHOOMRLQW
%RWWRP5HSDLUZLWKLQWKH&ULWLFDO=RQH
5HSDLUV WR WKH DQQXODU ULQJ RU ERWWRP SODWHV ZLWKLQ WKH FULWLFDO ]RQH GHILQHG LQ 6HFWLRQ VKDOO FRPSO\ ZLWK WKH
IROORZLQJ
D 0HHWWKHUHTXLUHPHQWVRIWKURXJK
E %HH[DPLQHGYLVXDOO\SULRUWRZHOGLQJDQGH[DPLQHGDIWHUWKHURRWSDVVDQGWKHILQDOSDVVE\WKHPDJQHWLFSDUWLFOHRU
OLTXLGSHQHWUDQWPHWKRGV$QQXODUSODWHEXWWZHOGVVKDOODOVREHH[DPLQHGE\XOWUDVRQLFPHWKRGVDIWHUWKHILQDOSDVV
([DPLQDWLRQDQGDFFHSWDQFHFULWHULDIRU1'(VKDOOEHLQDFFRUGDQFHZLWK
6KHOOWRERWWRP:HOG5HSDLU
5HSDLURIWKHZHOGDWWDFKLQJWKHVKHOOWRWKHDQQXODUULQJRUWKHVKHOOWRWKHERWWRPSODWHVKDOOPHHWRQHRI
WKHIROORZLQJUHTXLUHPHQWV
D $SRUWLRQRIWKHZHOG RIDQ\OHQJWK PD\EHUHPRYHGDQGUHSODFHGDVORQJDVWKHUHSODFHGZHOGPHHWVWKHVL]H
UHTXLUHPHQWV RI$3, 6HFWLRQ DQG WKH SRUWLRQ UHSODFHG GRHV QRW UHSUHVHQW PRUH WKDQ RI WKH
UHTXLUHGZHOGFURVVVHFWLRQDODUHD
E 7KHZHOGRQRQHVLGHRIWKHVKHOOPD\EHFRPSOHWHO\UHPRYHGDQGUHSODFHGIRUDOHQJWKQRWH[FHHGLQJLQ
6KHOOWRERWWRPZHOGUHSDLUVUHSODFLQJPRUHWKDQ RIWKHUHTXLUHGZHOGFURVVVHFWLRQDODUHDVKDOOQRWEH
FORVHUWKDQLQWRHDFKRWKHULQFOXGLQJUHSDLUVRQWKHRSSRVLWHVLGHRIWKHVKHOO
5HSDLUVVKDOOEHH[DPLQHGSULRUWRZHOGLQJDIWHUWKHURRWSDVVDQGDIWHUWKHILQDOSDVVE\YLVXDODVZHOO
DVPDJQHWLFSDUWLFOHRUOLTXLGSHQHWUDQWPHWKRGV([DPLQDWLRQDQGDFFHSWDQFHFULWHULDIRU1'(VKDOOEHLQDFFRUGDQFH
ZLWK
0LQRU6KHOO-DFNLQJ
7DQNVKHOODQGFULWLFDO]RQHPDWHULDOVVKDOOPHHWRQHRIWKHUHTXLUHPHQWVRI
7KH HQJLQHHU VKDOO FRQVLGHU DOO SHUWLQHQW YDULDEOHV ZKHQ H[HPSWLQJ D PLQRU VKHOO MDFNLQJ UHSDLU IURP
K\GURVWDWLFWHVWLQJLQFOXGLQJEXWQRWOLPLWHGWRWKHPDJQLWXGHRIMDFNLQJUHTXLUHGPDWHULDOWRXJKQHVVTXDOLW\FRQWURO
LQVSHFWLRQEHIRUHDQGDIWHUUHSDLUPDWHULDOWHPSHUDWXUHIXWXUHIRXQGDWLRQVWDELOLW\DQGMDFNLQJWHFKQLTXHV LQFOXGLQJ
FRQWUROVDQGPHDVXUHPHQW &DUHIXOFRQVLGHUDWLRQVKDOOEHJLYHQWRSRWHQWLDOVWUHVVHVDQGGDPDJHWKDWPD\UHVXOW
IURPMDFNLQJ
$3,67$1'$5' )LWQHVVIRU6HUYLFH(YDOXDWLRQ
7KH RZQHURSHUDWRU PD\ XWLOL]H D ILWQHVVIRUVHUYLFH RU RWKHU DSSURSULDWH HYDOXDWLRQ PHWKRGRORJ\ EDVHG RQ
HVWDEOLVKHG SULQFLSOHV DQG SUDFWLFHV WR H[HPSW D UHSDLU IURP K\GURVWDWLF WHVWLQJ7KH SURFHGXUHV DQG DFFHSWDQFH
FULWHULDIRUFRQGXFWLQJDQDOWHUQDWLYHDQDO\VLVDUHQRWLQFOXGHGLQWKLVVWDQGDUG7KLVHYDOXDWLRQVKDOOEHSHUIRUPHGE\
DQHQJLQHHUH[SHULHQFHGLQVWRUDJHWDQNGHVLJQDQGWKHHYDOXDWLRQPHWKRGRORJLHVXVHG
+\GURVWDWLF7HVWLQJ([HPSWLRQV 2WKHU
*HQHUDO
)RUFODULW\WKHVLWXDWLRQVRIDQGGRQRWLQWKHPVHOYHVUHTXLUHDK\GURVWDWLFWHVWEHFDXVHWKH\DUHQRW
PDMRUUHSDLUVRUPDMRUDOWHUDWLRQV
5HSDLURU$OWHUDWLRQ0DGHWRD)ORDWLQJ5RRI
1RK\GURWHVWLVUHTXLUHG
%RWWRP5HSDLURU5HSODFHPHQW2XWVLGHWKH&ULWLFDO=RQH
3RUWLRQVRIQHZERWWRPV DQ\RUDOOUHFWDQJXODUSODWHVRUODUJHVHJPHQWVRISODWHV LQWDQNVPD\EHUHSODFHGZLWKRXWD
K\GURWHVWZKHQWKHVXEJUDGHXQGHUWKHQHZSODWHVLVIRXQGWREHLQDFRQGLWLRQDFFHSWDEOHWRWKHDXWKRUL]HGLQVSHFWRU
RULVUHVWRUHGWRVXFKFRQGLWLRQDQGHLWKHURIWKHIROORZLQJFRQGLWLRQVLVPHW
)RU WDQNV ZLWK DQQXODU ULQJV WKH DQQXODU ULQJ DQG WKH DUHD RI VXSSRUW XQGHU WKH DQQXODU ULQJ FRQFUHWH
IRXQGDWLRQRUJUDGHPDWHULDO UHPDLQVLQWDFW
)RUWDQNVZLWKRXWDQQXODUULQJVWKHERWWRPUHSDLURUUHSODFHPHQWGRHVQRWUHVXOWLQZHOGLQJRQWKHUHPDLQLQJ
ERWWRP ZLWKLQ WKH FULWLFDO ]RQH DQG WKH VKHOO DQG ERWWRP VXSSRUW LQ WKH FULWLFDO ]RQH GHILQHG LQ 6HFWLRQ UHPDLQVLQWDFW
/HDN7HVWV
1HZ RU DOWHUHG UHLQIRUFLQJ SODWHV RI VKHOO SHQHWUDWLRQV VKDOO EH JLYHQ DQ DLU OHDN WHVW LQ DFFRUGDQFH ZLWK$3, 6HFWLRQ
6HWWOHPHQW6XUYH\'XULQJ+\GURVWDWLF7HVWLQJ
:KHQ6HWWOHPHQW6XUYH\LV5HTXLUHG
$VHWWOHPHQWVXUYH\VKDOOEHFRQGXFWHGIRUDOOH[LVWLQJWDQNVWKDWXQGHUJRDK\GURVWDWLFWHVWH[FHSWIRUWDQNVWKDW
KDYHDGRFXPHQWHGVHUYLFHKLVWRU\RIDFFHSWDEOHVHWWOHPHQWYDOXHVDQGQRVHWWOHPHQWLVDQWLFLSDWHGWRRFFXUGXULQJ
WKHK\GURWHVW
,QLWLDO6HWWOHPHQW6XUYH\
:KHQDVHWWOHPHQWVXUYH\LVUHTXLUHGLQDFFRUGDQFHZLWKWKHWDQNVHWWOHPHQWVKDOOLQLWLDOO\EHVXUYH\HGZLWK
WKH WDQN HPSW\ XVLQJ DQ HYHQ QXPEHU RI HOHYDWLRQ PHDVXUHPHQW SRLQWV XQLIRUPO\ GLVWULEXWHG DURXQG WKH
FLUFXPIHUHQFH$Q LQLWLDO VHWWOHPHQW VXUYH\ SULRU WR WKH ILUVW K\GURVWDWLF WHVW SURYLGHV EDVHOLQH UHDGLQJV IRU IXWXUH
VHWWOHPHQWHYDOXDWLRQ,QWKHDEVHQFHRIWKLVLQLWLDOVXUYH\WKHWDQNVKDOOEHDVVXPHGWREHLQLWLDOO\OHYHO
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
7KHPLQLPXPQXPEHURIHOHYDWLRQSRLQWVVKDOOEHDVLQGLFDWHGE\WKHIROORZLQJHTXDWLRQ
D ZKHUH
D
LVWKHWDQNGLDPHWHULQIHHW IW $QG
LVWKHPLQLPXPUHTXLUHGQXPEHURIVHWWOHPHQWPHDVXUHPHQWSRLQWVEXWQROHVVWKDQHLJKW$OOYDOXHVRI
VKDOOEHURXQGHGWRWKHQH[WKLJKHUHYHQZKROHQXPEHU7KHPD[LPXPVSDFLQJEHWZHHQVHWWOHPHQW
PHDVXUHPHQWSRLQWVVKDOOEHIW
6HWWOHPHQW6XUYH\'XULQJ+\GURVWDWLF7HVWLQJ
:KHQDVHWWOHPHQWVXUYH\LVUHTXLUHGLQDFFRUGDQFHZLWKWDQNVHWWOHPHQWVKDOOEHPHDVXUHGGXULQJILOOLQJDQG
ZKHQWKHWHVWZDWHUUHDFKHV RIWKHWHVWOHYHO
6HFWLRQ²0DUNLQJDQG5HFRUGNHHSLQJ
1DPHSODWHV
5HFRQVWUXFWHG7DQNV
7DQNV UHFRQVWUXFWHG LQ DFFRUGDQFH ZLWK WKLV VWDQGDUG VKDOO EH LGHQWLILHG E\ D FRUURVLRQUHVLVWDQW PHWDO
QDPHSODWHVLPLODUWRWKDWVKRZQLQ)LJXUH/HWWHUVDQGQXPHUDOVQRWOHVVWKDQ LQKLJKVKDOOEHHPERVVHG
HQJUDYHGRUVWDPSHGLQWKHSODWHWRLQGLFDWHLQIRUPDWLRQDVIROORZV
D UHFRQVWUXFWHGWR$3,
E HGLWLRQDQGUHYLVLRQQXPEHU
F \HDUUHFRQVWUXFWLRQZDVFRPSOHWHG
G LINQRZQWKHDVEXLOWVWDQGDUGDQGWKH\HDURIRULJLQDOFRQVWUXFWLRQ
H QRPLQDOGLDPHWHU
I QRPLQDOVKHOOKHLJKW
J GHVLJQVSHFLILFJUDYLW\
K PD[LPXPSHUPLVVLEOHRSHUDWLQJOLTXLGOHYHO
L WKHQDPHRIWKHUHFRQVWUXFWLRQFRQWUDFWRUDQGWKHDVVLJQHGVHULDOQXPEHURUFRQWUDFWQXPEHU
M WKHRZQHURSHUDWRU¶VWDQNQXPEHU
N VKHOOPDWHULDOIRUHDFKVKHOOFRXUVH
RECONSTRUCTED TO API 653 EDITION
Reconstructed by:
Original Standard
Tank No.
Date Completed
Tank Diam.
Serial No.
Specific Gravity
Design Pressure
Shell
Course
Allowable
Stress
Orig. Const. Date
Material
Year Reconstructed
Liquid Level Max.
Capacity
Max. Operating Temp.
)LJXUH ²1DPHSODWH
Height
$3,67$1'$5'
O PD[LPXPRSHUDWLQJWHPSHUDWXUH
P DOORZDEOHVWUHVVXVHGLQFDOFXODWLRQVRIHDFKVKHOOFRXUVH
7KH QHZ QDPHSODWH VKDOO EH DWWDFKHG WR WKH WDQN VKHOO DGMDFHQW WR WKH H[LVWLQJ QDPHSODWH LI DQ\$Q
H[LVWLQJQDPHSODWHVKDOOEHOHIWDWWDFKHGWRWKHWDQN1DPHSODWHVVKDOOEHDWWDFKHGDVVSHFLILHGLQ$3,6HFWLRQ
DQG)LJXUH
7DQNV:LWKRXW1DPHSODWHV
$W WKH RZQHU¶V UHTXHVW D QDPHSODWH PD\ EH DWWDFKHG WR D WDQN PHHWLQJ WKH UHTXLUHPHQWV LQ WKURXJK
,I LQIRUPDWLRQ UHTXLUHG WR FRPSOHWH WKH QDPHSODWH DV UHTXLUHG E\ WKH DVEXLOW VWDQGDUG LV DYDLODEOH DQG
WUDFHDEOH WR WKH WDQN D QHZ 5HSODFHPHQW 1DPHSODWH VLPLODU WR WKDW VKRZQ LQ )LJXUH LQ$3, PD\ EH
DWWDFKHG XQGHU WKH GLUHFWLRQ RI WKH$XWKRUL]HG LQVSHFWRU 7KH QHZ QDPHSODWH VKDOO FRQWDLQ DOO RI WKH LQIRUPDWLRQ
UHTXLUHGE\WKHDVEXLOWVWDQGDUGDQGEHPDUNHG³5HSODFHPHQW1DPHSODWH´
,ILQIRUPDWLRQUHTXLUHGWRFRPSOHWHWKHQDPHSODWHDVUHTXLUHGE\WKHDVEXLOWVWDQGDUGLVQRWDYDLODEOHDQ
µ$VVHVVPHQW1DPHSODWH¶PD\EHDWWDFKHGXQGHUWKHGLUHFWLRQRIWKH$XWKRUL]HGLQVSHFWRUSURYLGHGDVXLWDELOLW\IRU
VHUYLFHDVVHVVPHQWLVSHUIRUPHGSHU6HFWLRQVDQG7KHQHZQDPHSODWHVKDOOFRQWDLQWKHIROORZLQJLQIRUPDWLRQ
D $3,6WDQGDUGAssessment Nameplate
E 2ZQHU¶VWDQNQXPEHU
F WKHFRPSDQ\SHUIRUPLQJWKHDVVHVVPHQW
G WKHGDWHWKHDVVHVVPHQWZDVSHUIRUPHG
H WKHGDWHRIWKHHGLWLRQDQGWKHDGGHQGXPQXPEHURI$3,XVHGWRSHUIRUPWKHDVVHVVPHQW
I WKHQRPLQDOGLDPHWHUDQGQRPLQDOKHLJKWLQPHWHUV IWDQGLQ J WKHPD[LPXPFDSDFLW\LQP JDOORQEDUUHOV K WKHOLTXLGOHYHOLQPHWHUV IWDQGLQ XVHGWRSHUIRUPWKHDVVHVVPHQW
L WKHVSHFLILFJUDYLW\RIWKHOLTXLGXVHGWRSHUIRUPWKHDVVHVVPHQW
M WKHGHVLJQPHWDOWHPSHUDWXUHLQƒ& ƒ) XVHGWRSHUIRUPWKHDVVHVVPHQW
N WKHSUHVVXUHDQGYDFXXPXVHGWRSHUIRUPWKHDVVHVVPHQW
O WKHPD[LPXPGHVLJQWHPSHUDWXUHLQƒ& ƒ) XVHGWRSHUIRUPWKHDVVHVVPHQW
P WKHPDWHULDOVSHFLILFDWLRQLINQRZQIRUHDFKVKHOOFRXUVH
Q WKHDOORZDEOHVWUHVVYDOXHVLQ03D SVL XVHGWRSHUIRUPWKHDVVHVVPHQW
R WKHMRLQWHIILFLHQF\XVHGWRSHUIRUPWKHDVVHVVPHQW VHHRU 7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
7KHQDPHSODWHVKDOOEHPDGHRIDFRUURVLRQUHVLVWDQWPHWDOHPERVVHGHQJUDYHGRUVWDPSHGZLWKOHWWHUV
DQGQXPHUDOVQRWOHVVWKDQPP LQ KLJK1DPHSODWHVVKDOOEHDWWDFKHGDVVSHFLILHGLQ$3,,QDGGLWLRQWKH
QDPHSODWHVKDOOEHFOHDUO\PDUNHGDVDQ$3,Assessment Nameplate5HIHUWR)LJXUH
5HFRUGNHHSLQJ
:KHQ D WDQN LV HYDOXDWHG UHSDLUHG DOWHUHG RU UHFRQVWUXFWHG LQ DFFRUGDQFH ZLWK WKLV VWDQGDUG WKH IROORZLQJ
LQIRUPDWLRQDVDSSOLFDEOHVKDOOEHPDGHDSDUWRIWKHRZQHURSHUDWRU¶VUHFRUGVIRUWKHWDQN VHH &DOFXODWLRQVIRU
D FRPSRQHQWHYDOXDWLRQIRULQWHJULW\LQFOXGLQJEULWWOHIUDFWXUHFRQVLGHUDWLRQV VHH6HFWLRQ E UHUDWLQJ LQFOXGLQJOLTXLGOHYHO F UHSDLUDQGDOWHUDWLRQFRQVLGHUDWLRQV
&RQVWUXFWLRQDQGUHSDLUGUDZLQJV
$GGLWLRQDOVXSSRUWGDWDLQFOXGLQJEXWQRWOLPLWHGWRLQIRUPDWLRQSHUWDLQLQJWR
D H[DPLQDWLRQV LQFOXGLQJWKLFNQHVVHV E PDWHULDOWHVWUHSRUWVFHUWLILFDWLRQV
F WHVWV
G UDGLRJUDSKV UDGLRJUDSKVVKDOOEHUHWDLQHGIRUDWOHDVWRQH\HDU H EULWWOHIUDFWXUHFRQVLGHUDWLRQV
I RULJLQDOWDQNFRQVWUXFWLRQGDWD GDWHDVEXLOWVWDQGDUGHWF J ORFDWLRQDQGLGHQWLILFDWLRQ RZQHURSHUDWRU¶VQXPEHUVHULDOQXPEHU K GHVFULSWLRQRIWKHWDQN GLDPHWHUKHLJKWVHUYLFH L GHVLJQFRQGLWLRQV OLTXLGOHYHOVSHFLILFJUDYLW\DOORZDEOHVWUHVVXQXVXDOGHVLJQORDGLQJVHWF M VKHOOPDWHULDODQGWKLFNQHVVE\FRXUVH
N WDQNSHULPHWHUHOHYDWLRQV
O FRQVWUXFWLRQFRPSOHWLRQUHFRUG
P EDVLVIRUK\GURVWDWLFWHVWH[HPSWLRQ
&HUWLILFDWLRQ
7DQNV UHFRQVWUXFWHG LQ DFFRUGDQFH ZLWK WKLV VWDQGDUG VKDOO UHTXLUH GRFXPHQWDWLRQ RI VXFK UHFRQVWUXFWLRQ DQG
FHUWLILFDWLRQWKDWWKHGHVLJQUHFRQVWUXFWLRQLQVSHFWLRQDQGWHVWLQJZDVSHUIRUPHGLQFRPSOLDQFHZLWKWKLVVWDQGDUG
7KHFHUWLILFDWLRQVKDOOFRQWDLQLQIRUPDWLRQDVVKRZQLQ)LJXUHIRUGHVLJQDQGRUUHFRQVWUXFWLRQDVDSSOLFDEOH
$3,67$1'$5'
CERTIFICATION FOR TANK
RECONSTRUCTED TO API 653
We hereby certify that the tank reconstructed at ___________________________________________ and described as follows:
Location
Serial No.
Owner's No.
Height
Capacity
Floating or Fixed Roof
was reconstructed, inspected, and tested in accordance with all applicable requirements of API Standard 653,
________________ Edition, ________________ Revision, Dated ________________ (including all material supplied by the
reconstruction organization).
Reconstruction Organization
Authorized Representative
Date
CERTIFICATION FOR TANK
DESIGNED TO API 653
We hereby certify that the design evaluation of the tank reconstructed at _______________________________________________
and described as follows:
Location
Serial No.
Owner's No.
Height
Capacity
Floating or Fixed Roof
was performed by the undersigned organization in accordance with all design requirements of API Standard 653,
________________ Edition, ________________ Revision, Dated ________________.
Reconstruction Organization
Authorized Representative
Date
)LJXUH ²&HUWLILFDWLRQ)RUPV
$QQH[$
LQIRUPDWLYH
%DFNJURXQGRQ3DVW(GLWLRQVRI$3,:HOGHG6WRUDJH7DQN6WDQGDUGV
$3, SXEOLVKHG D VSHFLILFDWLRQ IRU ZHOGHG VWHHO VWRUDJH WDQNV LQ HQWLWOHG$3, 6WDQGDUG & All el e
l
t a e an s )LIWHHQ HGLWLRQV DQG VHYHQ VXSSOHPHQWV WR$3, & ZHUH SXEOLVKHG EHWZHHQ DQG $3,
&ZDVUHSODFHGE\$3,6WDQGDUG el e an s
l t a eHGLWLRQVDQGVXSSOHPHQWVUHYLVLRQVRU
DGGHQGDWR$3,KDYHEHHQLVVXHG7KHFXUUHQWHGLWLRQRI$3,LVWKHWK(GLWLRQ$GGHQGXPSXEOLVKHGLQ
-DQXDU\
7KHWDEOHEHORZSURYLGHVDOLVWRIHGLWLRQVVXSSOHPHQWVDQGUHYLVLRQVWR$3,&DQG$3,
7DEOH$²(GLWLRQVRI$3,6WDQGDUGDQGLWV3UHFXUVRU$3,6WDQGDUG&
$3,6WDQGDUG& All-Welded Oil Storage Tanks
(GLWLRQ
$3,6WDQGDUGWelded Tanks for Oil Storage
'DWH
)LUVW
-XO\
6HFRQG
2FWREHU
(GLWLRQ
)LUVW
6XSSOHPHQW
'DWH
'HFHPEHU
6XSSOHPHQW
$SULO
6HFRQG
$SULO
6XSSOHPHQW
6HSWHPEHU
7KLUG
-XO\
6XSSOHPHQW
$SULO
6XSSOHPHQW
7KLUG
$SULO
)RXUWK
0DUFK
)LIWK
0D\
6L[WK
$XJXVW
6XSSOHPHQW
2FWREHU
6HYHQWK
$XJXVW
6XSSOHPHQW
$SULO
6HSWHPEHU
6XSSOHPHQW
0DUFK
6XSSOHPHQW
(LJKWK
6XSSOHPHQW
)RXUWK
'HFHPEHU
6XSSOHPHQW
)LIWK
6HSWHPEHU
6L[WK
-XQH
$SULO
-XO\
$SULO
'HFHPEHU
5HYLVLRQ
0D\
1LQWK
2FWREHU
5HYLVLRQ
'HFHPEHU
7HQWK
6HSWHPEHU
5HYLVLRQ
2FWREHU
(OHYHQWK
6HSWHPEHU
6XSSOHPHQW
6HYHQWK
6HSWHPEHU
5HYLVLRQ
1RYHPEHU
)HEUXDU\
7ZHOIWK
2FWREHU
(LJKWK
1RYHPEHU
7KLUWHHQWK
6HSWHPEHU
1LQWK
-XO\
6XSSOHPHQW
2FWREHU
$GGHQGXP
'HFHPEHU
)RXUWHHQWK
2FWREHU
$GGHQGXP
'HFHPEHU
)LIWHHQWK
$GGHQGXP
'HFHPEHU
$GGHQGXP
'HFHPEHU
$
$
$3,67$1'$5'
7DEOH$²(GLWLRQVRI$3,6WDQGDUGDQGLWV3UHFXUVRU$3,6WDQGDUG& &RQWLQXHG
$3,6WDQGDUG& All-Welded Oil Storage Tanks
(GLWLRQ
'DWH
$3,6WDQGDUGWelded Tanks for Oil Storage
(GLWLRQ
7HQWK
'DWH
1RYHPEHU
$GGHQGXP
0DUFK
$GGHQGXP
1RYHPEHU
$GGHQGXP
$XJXVW
$GGHQGXP
'HFHPEHU
(UUDWD
$SULO
(OHYHQWK
-XQH
$GGHQGXP
1RYHPEHU
$GGHQGXP
1RYHPEHU
$GGHQGXP
$XJXVW
(UUDWD
2FWREHU
7ZHOIWK
0DUFK
(UUDWD
-XO\
$GGHQGXP
6HSWHPEHU
$GGHQGXP
-DQXDU\
$GGHQGXP
$XJXVW
7KLUWHHQWK
0DUFK
127( 2UGHULQJLQIRUPDWLRQIRUSDVWHGLWLRQVRI$3,&DQG$3,LVDYDLODEOHE\FDOOLQJ,+6,QFDW ZZZJOREDOLKVFRP $VRIWKHGDWHWKLVHGLWLRQ RUDGGHQGD RI$3,ZDVSXEOLVKHGWKHFXUUHQWHGLWLRQRI$3,LVWKHWK(GLWLRQ
SXEOLVKHGLQ0DUFK3OHDVHFKHFNZLWKWKH$3,3XEOLFDWLRQV'HSDUWPHQWRUVHHZZZDSLRUJIRUWKHODWHVW$3,
UHOHDVH
$QQH[%
QRUPDWLYH
(YDOXDWLRQRI7DQN%RWWRP6HWWOHPHQW
% ,QWURGXFWLRQ
% ,QGHWHUPLQLQJWKHHIIHFWVRIVRLOVHWWOHPHQWRQVWRUDJHWDQNVLWLVFRPPRQSUDFWLFHWRPRQLWRUVHWWOHPHQWRI
WKHWDQNERWWRP,QPRVWFDVHVVXFKDPRQLWRULQJSURJUDPLVLQLWLDWHGGXULQJWKHFRQVWUXFWLRQDQGFRQWLQXHGGXULQJ
K\GURVWDWLF WHVWLQJ DQG RSHUDWLRQV 'XULQJ RSHUDWLRQV VHWWOHPHQW PHDVXUHPHQWV VKRXOG EH WDNHQ DW D SODQQHG
IUHTXHQF\ EDVHG RQ DQ DVVHVVPHQW RI VRLO VHWWOHPHQW SUHGLFWLRQV )RU H[LVWLQJ WDQNV WKDW GR QRW KDYH LQLWLDO
VHWWOHPHQWGDWDDSURJUDPRIVHWWOHPHQWPRQLWRULQJVKRXOGEHEDVHGRQSULRUVHUYLFHKLVWRU\
% ,IDWDQ\WLPHVHWWOHPHQWLVGHHPHGH[FHVVLYHWKHWDQNVKRXOGEHHPSWLHGDQGUHOHYHOHG5HOHYHOLQJRID
VL]DEOHWDQNLVH[SHQVLYHDQGUDWKHUGLIILFXOWWRDFKLHYH7KXVDGHFLVLRQWRUHOHYHODWDQNLVDFUXFLDORQHDQG
UHOLHVYHU\PXFKRQWKHSURSHULQWHUSUHWDWLRQDQGHYDOXDWLRQRIWKHPRQLWRUHGVHWWOHPHQWGDWD
% $SSURDFKHVXVHGWRFRUUHFWWDQNVKHOODQGERWWRPVHWWOHPHQWLQFOXGHWHFKQLTXHVVXFKDVORFDOL]HGUHSDLUV
RIWKHERWWRPSODWHVSDUWLDOUHOHYHOLQJRIWKHWDQNSHULSKHU\DQGPDMRUUHOHYHOLQJRIWKHHQWLUHWDQNERWWRP0DMRU
UHOHYHOLQJRIWKHWDQNLQYROYLQJWRWDOOLIWLQJRIWKHWDQNVKHOODQGERWWRPDWRQHWLPHFDQLQWURGXFHKLJKO\ORFDOL]HG
VWUHVVHV LQ WKH VWUXFWXUH DQG LPSDLU LWV LQWHJULW\7KHUHIRUH ZKHQ FKRRVLQJ WHFKQLTXHV IRU FRUUHFWLQJ VHWWOHPHQW
SUREOHPVDQDOWHUQDWLYHWRWRWDOOLIWLQJRIWKHWDQNVKHOODQGERWWRPVKRXOGEHFRQVLGHUHGDVDILUVWFKRLFH,ILWLV
GHFLGHG WR OLIW WKH HQWLUH WDQN VKHOO DQG ERWWRP DW RQH WLPH LW VKRXOG EH GRQH E\ SHUVRQQHO ZLWK GHPRQVWUDWHG
H[SHULHQFHLQWKLVWHFKQLTXH
% 7\SHVRI6HWWOHPHQW
% 6HWWOHPHQW0HDVXUHPHQWV
0HDVXUHPHQWV RI WDQN VHWWOHPHQW VKRXOG EH SHUIRUPHG E\ SHUVRQQHO H[SHULHQFHG LQ WKH W\SHV RI PHDVXUHPHQW
SURFHGXUHVEHLQJSHUIRUPHGXVLQJHTXLSPHQWFDSDEOHRIVXIILFLHQWDFFXUDF\WRGLVWLQJXLVKVHWWOHPHQWGLIIHUHQFHV
7KH SULQFLSOH W\SHV RI WDQN VHWWOHPHQW FRQVLVW RI VHWWOHPHQWV WKDW UHODWH WR WKH WDQN VKHOO DQG ERWWRP SODWH7KHVH
VHWWOHPHQWVFDQEHUHFRUGHGE\WDNLQJHOHYDWLRQPHDVXUHPHQWVDURXQGWKHWDQNFLUFXPIHUHQFHDQGDFURVVWKHWDQN
GLDPHWHU )LJXUH % DQG )LJXUH % VKRZ PLQLPXP UHFRPPHQGHG ORFDWLRQV RQ D WDQN VKHOO DQG ERWWRP SODWH IRU
VHWWOHPHQWPHDVXUHPHQWV'DWDREWDLQHGIURPVXFKPHDVXUHPHQWVVKRXOGEHXVHGWRHYDOXDWHWKHWDQNVWUXFWXUH
$GGLWLRQDO VHWWOHPHQW UHDGLQJV PD\ EH UHTXLUHG WR EHWWHU GHILQH ORFDO ERWWRP GHSUHVVLRQV RU HGJH VHWWOHPHQWV WR
UHILQH VKHOO VHWWOHPHQW PHDVXUHPHQWV LQ DUHDV VXVSHFWHG WR KDYH ORFDO RXWRISODQH VHWWOHPHQWV RU WR RWKHUZLVH
LPSURYHERWWRPRUVKHOOVHWWOHPHQWHYDOXDWLRQ6HWWOHPHQWPHDVXUHPHQWORFDWLRQVVKRXOGEHUHXVHGLQDQ\IXWXUH
VHWWOHPHQWVXUYH\VDQGHYDOXDWLRQV
,Q FDVHV RI GLVWRUWLRQ RU FRUURVLRQ RI WKH WDQN ERWWRP H[WHQGLQJ EH\RQG WKH VKHOO VKHOO VHWWOHPHQW PHDVXUHPHQWV
WDNHQQHDUODSZHOGVLQWKHWDQNERWWRPFDQUHVXOWLQVLJQLILFDQWHUURUVLQPHDVXUHGHOHYDWLRQ5HSDLUHGRUUHSODFHG
ERWWRPSODWHVRUQHZVORWWHGLQERWWRPVPD\QRWKDYHEHHQLQVWDOOHGSDUDOOHOWRWKHRULJLQDOERWWRP,QVRPHFDVHV
PRUHFRQVLVWHQWDQGDFFXUDWHUHVXOWVPD\EHREWDLQHGE\VXUYH\LQJWKHHOHYDWLRQRIWKHZHOGEHWZHHQWKHILUVWDQG
VHFRQGFRXUVHV
0HDVXUHERWWRPDQGHGJHVHWWOHPHQWFDUHIXOO\WDNLQJLQWRDFFRXQWWKDWPHDVXUHPHQWVWDNHQZKHQWKHERWWRPLVQRW
LQFRQWDFWZLWKWKHVRLORUIRXQGDWLRQXQGHUWKHWDQNFDQRYHUHVWLPDWHRUXQGHUHVWLPDWHHGJHRUERWWRPVHWWOHPHQW
VLJQLILFDQWO\ ,I WKH PHDVXUHG VHWWOHPHQW LV QHDU WKH PD[LPXP DOORZDEOH VHWWOHPHQW FRQVLGHU UHSHDWLQJ WKH
PHDVXUHPHQWZLWKWKHERWWRPIRUFHGGRZQWRWKHVRLOHJVWDQGLQJRQLWRUWDNHDQDGGLWLRQDOVHWRIPHDVXUHPHQWV
LQWKHVDPHDUHDZKHUHWKHERWWRPLVLQILUPFRQWDFWZLWKWKHVRLO %
%
$3,67$1'$5'
Maximum spacing of 32 ft around circumference.
There must be at least 4 equally spaced diametrical
measurement lines.
Tank shell
11
0
1
10
2
9
3
8
4
7
5
6
NOTE 1 There must be at least eight settlement points. The maximum spacing
of the settlement points is 32 ft around the circumference.
NOTE 2 Points shall be equally spaced around the tank shell. See 12.5.2 for
method of determining the number of measurement points.
)LJXUH %²0HDVXUHPHQWVRI6KHOO6HWWOHPHQW ([WHUQDO
Maximum spacing
of 32 ft around
circumference.
There must be at
least 4 equally
spaced diametrical
measurement lines.
Tank shell
0
5
1
4
2
3
3
2
4
1
5
Maximum spacing
of 10 ft across
diameter.
0
NOTE See 12.5.2 for method of determining the number of
measurement points.
)LJXUH %²0HDVXUHPHQWVRI%RWWRP6HWWOHPHQW ,QWHUQDO 7DQN2XWRIVHUYLFH
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
% 6KHOO6HWWOHPHQW(YDOXDWLRQ
6HWWOHPHQWRIDWDQNLVWKHUHVXOWRIHLWKHURQHRUDFRPELQDWLRQRIWKHIROORZLQJWKUHHVHWWOHPHQWFRPSRQHQWV
%
n m settlement 7KLVFRPSRQHQWRIWHQFDQEHSUHGLFWHGLQDGYDQFHZLWKVXIILFLHQWDFFXUDF\IURPVRLO
WHVWV,WPD\YDU\LQPDJQLWXGHGHSHQGLQJRQWKHVRLOFKDUDFWHULVWLFV8QLIRUPVHWWOHPHQWRIDWDQNGRHVQRWLQGXFH
VWUHVVHVLQWKHWDQNVWUXFWXUH+RZHYHUSLSLQJWDQNQR]]OHVDQGDWWDFKPHQWVPXVWEHJLYHQDGHTXDWHFRQVLGHUDWLRQ
WRSUHYHQWSUREOHPVFDXVHGE\VXFKVHWWOHPHQW
Max. settlement at
(Pt. 11)
Min.
settlement
(Pt. 22)
Plane of rigid tilt
Actual edge
represented by
settlement
optimum cosine curve
Uniform or minimum settlement
1
3
2
5
4
7
6
9
8
11
10
13
12
15
14
17
16
19
18
21
20
Datum line for net settlement
Datum line for adjusted settlement
U13
U12
U10
U11
%
t lt n
a tan plana t lt 7KLVFRPSRQHQWURWDWHVWKHWDQNLQDWLOWHGSODQH7KHWLOWZLOOFDXVHDQ
LQFUHDVHLQWKHOLTXLGOHYHODQGWKHUHIRUHDQLQFUHDVHLQWKHKRRSVWUHVVLQWKHWDQNVKHOO$OVRH[FHVVLYHWLOWLQJFDQ
FDXVHELQGLQJRISHULSKHUDOVHDOVLQDIORDWLQJURRIDQGLQKLELWURRIWUDYHO7KLVW\SHRIVHWWOHPHQWFRXOGDIIHFWWDQN
QR]]OHVWKDWKDYHSLSLQJDWWDFKHGWRWKHP)LJXUH%VKRZVWKDWWKHVHWWOHGORFDWLRQRIWKHWDQNVKHOODIWHUULJLGERG\
WLOWFDQEHUHSUHVHQWHGE\HLWKHUDFRVLQHRUVLQHZDYHZLWKUHVSHFWWRLWVRULJLQDOSRVLWLRQLQDKRUL]RQWDOSODQH
23
22
1
N (23) data points, equally (L) spaced apart.
Tank circumference envelope (SD)
Out-of-plane deflection for Point “i” is
Ui = out-of-plane settlement of Point, “i ”
Si = Uií 1/2 ULí+ 1/2 Ui + 1), for example
(+) when above cos. curve;
í ZKHQEHORZFRVFXUYHIRUH[DPSOH
S11 = U11 í 1/2U10 + 1/2U12)
U11 = (+)
U13 í
)LJXUH %²*UDSKLFDO5HSUHVHQWDWLRQRI7DQN6KHOO6HWWOHPHQWSHU%
%
$3,67$1'$5'
% 'XHWRWKHIDFWWKDWDWDQNLVDUDWKHUIOH[LEOHVWUXFWXUHWKHWDQNPD\VHWWOHLQDQRQSODQDUFRQILJXUDWLRQ
LQGXFLQJDGGLWLRQDOVWUHVVHVLQWKHWDQNVKHOO7KHRXWRISODQHVHWWOHPHQWVRIWKHVKHOOFDQOHDGWRRXWRIURXQGQHVVDW
WKHWRSRIWKHVKHOODQGGHSHQGLQJRQWKHH[WHQWRIWKHLQGXFHGRXWRIURXQGQHVVPD\LPSHGHWKHSURSHUIXQFWLRQLQJ
RIWKHIORDWLQJURRILQVXFKDZD\WKDWUHOHYHOLQJLVUHTXLUHG7KHRXWRIURXQGQHVVFDXVHGE\VHWWOHPHQWPD\DOVR
DIIHFWLQWHUQDOURRIVXSSRUWVWUXFWXUHVVXFKDVFROXPQVUDIWHUVDQGJLUGHUV$OVRVXFKVHWWOHPHQWVPD\FDXVHIODW
VSRWVWRGHYHORSLQWKHWDQNVKHOO7KLVW\SHRIVHWWOHPHQWFRXOGDIIHFWWDQNQR]]OHVWKDWKDYHSLSLQJDWWDFKHGWRWKHP
% :KLOH XQLIRUP VHWWOHPHQW DQG ULJLG ERG\ WLOW RI D WDQN PD\ FDXVH SUREOHPV DV GHVFULEHG LQ % DQG
% WKH RXWRISODQH VHWWOHPHQW LV WKH LPSRUWDQW FRPSRQHQW WR GHWHUPLQH DQG HYDOXDWH LQ RUGHU WR HQVXUH WKH
VWUXFWXUDO LQWHJULW\ RI WKH VKHOO DQG ERWWRP %DVHG RQ WKLV SULQFLSOH D FRPPRQ DSSURDFK LV WR GHWHUPLQH WKH
PDJQLWXGHVRIWKHXQLIRUPVHWWOHPHQWDQGULJLGERG\WLOW LIDULJLGWLOWSODQHH[LVWVRUFDQEHLGHQWLILHG IRUHDFKGDWD
SRLQWRQWKHWDQNSHULSKHU\,IDSODQHRIULJLGWLOWFDQEHGLVWLQJXLVKHGLWEHFRPHVLPSRUWDQWDVDGDWXPIURPZKLFKWR
PHDVXUHWKHPDJQLWXGHVRIWKHRXWRISODQHVHWWOHPHQWV:KHQWKHRXWRISODQHVHWWOHPHQWSDWWHUQRIDWDQNKDVDQ
HDVLO\GLVWLQJXLVKDEOHSODQHRIULJLGWLOWWKHPHWKRGRORJ\LQWKLVSDUDJUDSKFDQEHXVHGWRHYDOXDWHWKHDFFHSWDELOLW\RI
WKHWDQN¶VRXWRISODQHVHWWOHPHQW,IDULJLGWLOWSODQHFDQQRWEHUHDGLO\GHWHUPLQHGWKHPHWKRGRORJ\LQ%FDQEH
XVHGWRHYDOXDWHWKHDFFHSWDELOLW\RIWKHWDQN¶VRXWRISODQHVHWWOHPHQW
$JUDSKLFDOUHSUHVHQWDWLRQLOOXVWUDWLQJWDQNVKHOOVHWWOHPHQWZLWKDULJLGWLOWSODQHZHOO±GHILQHGE\DFRVLQHFXUYHILWLV
VKRZQLQ)LJXUH%7KHFRQVWUXFWLRQRIWKLVVHWWOHPHQWSORWKDVEHHQGHYHORSHGLQDFFRUGDQFHZLWKWKHIROORZLQJ
D 7KHDFWXDOVHWWOHPHQW LQPRVWFDVHVDQLUUHJXODUFXUYH LVSORWWHGXVLQJSRLQWVDURXQGWKHWDQNFLUFXPIHUHQFHDV
WKHDEVFLVVD
E 7KH YHUWLFDO GLVWDQFH EHWZHHQ WKH DEVFLVVD DQG WKH ORZHVW SRLQW RQ WKLV FXUYH 3RLQW LV WKH PLQLPXP
VHWWOHPHQWDQGLWLVFDOOHGWKHXQLIRUPVHWWOHPHQWFRPSRQHQW$OLQHWKURXJKWKLVSRLQWSDUDOOHOWRWKHDEVFLVVD
SURYLGHVDQHZEDVHRUGDWXPOLQHIRUVHWWOHPHQWPHDVXUHPHQWVFDOOHGDGMXVWHGVHWWOHPHQWV
F 7KHSODQHRIULJLGWLOWVHWWOHPHQWLIZHOOGHILQHGLVUHSUHVHQWHGE\WKHRSWLPXPFRVLQHFXUYH6HYHUDOPHWKRGVH[LVW
IRUGHWHUPLQLQJWKHRSWLPXPFRVLQHFXUYH7KHOHDVWDFFXUDWHPHWKRGLVE\IUHHKDQGGUDZLQJWHFKQLTXHVDNLQGRI
WULDODQGHUURUSURFHGXUHWRILWWKHEHVWFRVLQHFXUYHWKURXJKWKHGDWD$EHWWHUPHWKRGLVWRXVHWKHPDWKHPDWLFDO
DQGJUDSKLFDOFDSDELOLWLHVRIDFRPSXWHU
G 7KHYHUWLFDOGLVWDQFHVEHWZHHQWKHLUUHJXODUFXUYHDQGWKHFRVLQHFXUYHUHSUHVHQWWKHPDJQLWXGHVRIWKHRXWRI
SODQHVHWWOHPHQWV UL DW'DWD3RLQWL H $FRPPRQO\XVHGDQGDFFHSWHGPHWKRGLVWRXVHDFRPSXWHUWRVROYHIRUFRQVWDQWVabDQGcWRILQGWKHRSWLPXP
FRVLQHFXUYHRIWKHIRUP
(OHYSUHG ab×FRV θc
:KHUH(OHYSUHGLVWKHHOHYDWLRQSUHGLFWHGE\WKHFRVLQHFXUYHDWDQJOHWKHWD$W\SLFDOVWDUWLQJSRLQWIRUDFRPSXWHU
EHVWILW FRVLQH FXUYH LV D OHDVWVTXDUH ILW ZKHUH a b DQG c DUH FKRVHQ WR PLQLPL]H WKH VXP RI WKH VTXDUH RI WKH
GLIIHUHQFHV EHWZHHQ PHDVXUHG DQG SUHGLFWHG HOHYDWLRQV 7KH RSWLPXP FRVLQH FXUYH LV RQO\ FRQVLGHUHG YDOLG LH
DFFXUDWHO\ILWVWKHPHDVXUHGGDWD LIWKHYDOXHRLVJUHDWHUWKDQRUHTXDOWR
R
( S \\ ± SSE )
S \\
ZKHUH
S\\
LVWKHVXPRIWKHVTXDUHVRIWKHGLIIHUHQFHVEHWZHHQDYHUDJHPHDVXUHGHOHYDWLRQDQGWKHPHDVXUHG
HOHYDWLRQV
SSE
LVWKHVXPRIWKHVTXDUHRIWKHGLIIHUHQFHVEHWZHHQWKHPHDVXUHGDQGSUHGLFWHGHOHYDWLRQV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
/LQHDUOHDVWVTXDUHILWWLQJDQGWKH RPHWKRGRIFXUYHILWWLQJDUHEDVLFVWDWLVWLFDOWRROV7KHXVHRIDPRUHULJRURXV
VWDWLVWLFDOPHWKRGWRGHWHUPLQHWKHRSWLPXPFRVLQHFXUYHVXFKDVQRQOLQHDURULWHUDWLYHSURFHGXUHVPD\EHXVHGE\
WKRVHH[SHULHQFHGLQWKHLUXVH
2EWDLQLQJ D VWDWLVWLFDOO\ YDOLG FRVLQH FXUYH PD\ UHTXLUH WDNLQJ PRUH PHDVXUHPHQWV WKDQ WKH PLQLPXPV VKRZQ LQ
)LJXUH%,QPDQ\FDVHVWKHRXWRISODQHVHWWOHPHQWPD\EHFRQFHQWUDWHGLQRQHRUPRUHDUHDV,QVXFKFDVHVWKH
OHDVWVTXDUHV ILW DSSURDFK PD\ XQGHU SUHGLFW WKH ORFDO RXWRISODQH VHWWOHPHQW DQG LV QRW FRQVHUYDWLYH ,Q WKHVH
FDVHV R ZLOO W\SLFDOO\ EH OHVV WKDQ DQG PRUH ULJRURXV FXUYHILWWLQJ SURFHGXUHV VKRXOG EH FRQVLGHUHG
$OWHUQDWLYHO\WKHVHWWOHPHQWPD\QRWLQGLFDWHDZHOOGHILQHGULJLGWLOWSODQHDQGWKHSURFHGXUHLQ%VKRXOGEH
FRQVLGHUHG
I 7KHYHUWLFDOGLVWDQFHVEHWZHHQWKHLUUHJXODUFXUYHDQGWKHRSWLPXPFXUYHUHSUHVHQWWKHPDJQLWXGHVRIWKHRXWRI
SODQHVHWWOHPHQWV ULDW'DWD3RLQWL SLLVWKHRXWRISODQHGHIOHFWLRQDW3RLQWL VHH)LJXUH% 127( :KHQGHWHUPLQLQJWKHRSWLPXPFRVLQHFXUYHGHVFULEHGLQ%H WDNLQJDGGLWLRQDOPHDVXUHPHQWVDURXQGWKHVKHOO
ZLOOUHVXOWLQDPRUHDFFXUDWHFRVLQHFXUYHILW+RZHYHUXVLQJDOORIWKHPHDVXUHPHQWSRLQWVLQWKHHTXDWLRQVKRZQLQ%ZLOO
UHVXOW LQ YHU\ VPDOO DOORZDEOH RXWRISODQH VHWWOHPHQWV SPD[ VLQFH WKH DUF OHQJWK L EHWZHHQ PHDVXUHPHQW SRLQWV LV VPDOO ,W LV
DFFHSWDEOH WR DOO PHDVXUHPHQW SRLQWV WR GHYHORS WKH RSWLPXP FRVLQH FXUYH EXW RQO\ XVH D VXEVHW RI WKHVH SRLQWV VSDFHG QR
IXUWKHUWKDQIW PLQLPXP ZKHQFDOFXODWLQJSi DQGSPD[7KHSRLQWVXVHGPXVWLQFOXGHWKHSRLQWVIXUWKHVWIURPWKHRSWLPXP
FRVLQHFXUYH)RUH[DPSOHLISRLQWVDUHUHTXLUHGEXWPHDVXUHPHQWVDUHWDNHQDQGWKHDUFOHQJWKEHWZHHQPHDVXUHPHQW
SRLQWVLVRQO\IWFDOFXODWHWKHRSWLPXPFRVLQHFXUYHXVLQJDOOSRLQWVEXWXVHRQO\SRLQWVWRFDOFXODWHSi 7KHHTXDWLRQVLQ
)LJXUH%ZRXOGEHUHYLVHGWRUHDG
SL UL± UL ±UL S U± UU
% ,IDZHOOGHILQHGULJLGWLOWSODQHFDQQRWEHGHWHUPLQHGRUWKHPD[LPXPRXWRISODQHVHWWOHPHQWGHWHUPLQHGLQ
DFFRUGDQFH ZLWK % LV H[FHHGHG WKH SURFHGXUHV JLYHQ LQ WKLV VHFWLRQ PD\ EH XVHG LQ OLHX RI PRUH ULJRURXV
DQDO\VLVRUUHSDLU
% )RU VHWWOHPHQW SURILOHV ZLWKRXW D ZHOOGHILQHG ULJLG WLOW SODQH WKH VHWWOHPHQW DUF OHQJWK SDUF DQG RXWRI
SODQH VHWWOHPHQW DW WKH SRLQW XQGHU FRQVLGHUDWLRQ SL PXVW EH GHWHUPLQHG IURP D SORW RI WKH PHDVXUHPHQW GDWD
)LJXUH%LVDJUDSKLFDOLOOXVWUDWLRQRIWKHYDULRXVPHDVXUHPHQWWHUPVDQGSURFHGXUHVIRUGHWHUPLQLQJHVWLPDWHVRI
WKHVHWWOHPHQWDUFOHQJWKDQGWKHFRUUHVSRQGLQJRXWRISODQHVHWWOHPHQWLQFOXGLQJWKHUHILQHPHQWRIPHDVXUHPHQWV
ZKHQQHHGHG
D 7KHDFWXDOVHWWOHPHQWLVSORWWHGXVLQJSRLQWVDURXQGWKHWDQNFLUFXPIHUHQFHDVWKHDEVFLVVD
E $Q LQLWLDO VHWWOHPHQWDUF OHQJWK DQG PD[LPXP VHWWOHPHQW LV GHWHUPLQHG IURP WKH SRLQWV RQ WKH SORWWHG GDWD WKDW
LQGLFDWHDFKDQJHLQGLUHFWLRQRIVHWWOHPHQWVORSH VHH)LJXUH% F $GGLWLRQDO VHWWOHPHQW PHDVXUHPHQW SRLQWV PD\ EH QHHGHG KDOIZD\ EHWZHHQ WKH SRLQWV LQGLFDWLQJ D FKDQJH LQ
GLUHFWLRQRIWKHVHWWOHPHQWVORSHWRIXUWKHUUHILQHWKHVHWWOHPHQWDUFOHQJWKDQGORFDWLRQDQGPDJQLWXGHRIPD[LPXP
VHWWOHPHQW
G 6WHSF PD\QHHGWREHUHSHDWHG7KHEHVWHVWLPDWHRIWKHVHWWOHPHQWDUFOHQJWKDQGPD[LPXPVHWWOHPHQWVKDOOEH
FRQVLGHUHGLQWKHSURFHGXUHJLYHQLQ%
% ,I D YDOLG FRVLQH ILW RI WKH ULJLG WLOW SODQH FDQ EH GHWHUPLQHG EXW WKH PD[LPXP RXWRISODQH VHWWOHPHQW
GHWHUPLQHGLQDFFRUGDQFHZLWK%LVH[FHHGHGWKHSURFHGXUHLQ%PD\EHXVHGWRHYDOXDWHWKHVHWWOHPHQW
,Q WKLV FDVH VHH )LJXUH % IRU D JUDSKLFDO LOOXVWUDWLRQ RI WKH GHWHUPLQDWLRQ RI WKH VHWWOHPHQW DUF OHQJWK DQG WKH
FRUUHVSRQGLQJRXWRISODQHVHWWOHPHQW
%
$3,67$1'$5'
S arci,2
Sunif has been
Sarci,1
Sarcj,1
eliminated from all
measurements
S arck,1
Sj ,1
S i,1 Si ,2
POINT 16
S i,N
S arci,N
1
2
3
4
5
6
7
8
S k,1
9 10 11 12 13 14 15 16
initial 16 measurements
additional measurements to better define settlement arc and maximum settlement
is the maximum out -of -plane settlement measured from indicated plane , Nth estimate
is the settlement arc corresponding to S i ,N
)LJXUH %²*UDSKLFDO5HSUHVHQWDWLRQRI6KHOO6HWWOHPHQWSHU%
7LOW3ODQH1RW'HVFULEHGE\DQ2SWLPDO&RVLQH&XUYH
Sarci
Sj
Si
S arcj
POINT 1
2...
16
S i is the maximim out - of- plane settlement measured from tilt plane for i th arc
S arci is the settlement arc corresponding to Si
S unif has been eliminated from all measurements
)LJXUH %²*UDSKLFDO5HSUHVHQWDWLRQRI6KHOO6HWWOHPHQWSHU%
7LOW3ODQH'HVFULEHGE\DQ2SWLPDO&RVLQH&XUYH
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
% ,IDQH[DPLQDWLRQRIWKHPHDVXUHGVHWWOHPHQWSORWLQGLFDWHVDIROGSDWWHUQDERXWDGLDPHWHURIWKHWDQNWKH
PD[LPXP RXWRISODQH VHWWOHPHQW VKRXOG EH GHWHUPLQHG XVLQJ D VHWWOHPHQW DUF OHQJWK RI RI WKH WDQN¶V
FLUFXPIHUHQFH
% (GJH6HWWOHPHQW
% (GJHVHWWOHPHQWRFFXUVZKHQWKHWDQNVKHOOVHWWOHVVKDUSO\DURXQGWKHSHULSKHU\UHVXOWLQJLQGHIRUPDWLRQRI
WKHERWWRPSODWHQHDUWKHVKHOOWRERWWRPFRUQHUMXQFWLRQ)LJXUH%LOOXVWUDWHVWKLVVHWWOHPHQW
% 7KH HTXDWLRQ JLYHQ LQ % FDQ EH XVHG WR HYDOXDWH HGJH VHWWOHPHQW$OWHUQDWLYHO\ D ULJRURXV VWUHVV
DQDO\VLV FDQ EH FDUULHG RXW IRU WKH GHIRUPHG SURILOH 7KH GHWHUPLQDWLRQ RI WKH GHIRUPHG SURILOH VKRXOG WDNH LQWR
FRQVLGHUDWLRQWKHIROORZLQJ
>WH[WPRYHGWR%@
D /RFDWLQJWKHEUHDNRYHUSRLQWZKHUHWKHVHWWOHGDUHDEHJLQVUHTXLUHVVRPHMXGJPHQW3ODFLQJDVWUDLJKWHGJHRQWKH
XQVHWWOHGERWWRPDVVKRZQLQ)LJXUH%DQGREVHUYLQJZKHUHWKHERWWRPVHSDUDWHVIURPWKHVWUDLJKWHGJHZLOO
KHOSGHILQHWKHEUHDNRYHUSRLQW
E ,I WKH WDQN ERWWRP LV FRQH XS RU FRQH GRZQ WKH VHWWOHPHQW B VKRXOG EH PHDVXUHG IURP D SURMHFWLRQ RI WKH
XQVHWWOHGERWWRPQRWIURPOHYHO6HH)LJXUH%
% 7KHPHDVXUHGHGJHVHWWOHPHQWBLVGHILQHGDVVKRZQLQ)LJXUH%BHZLVGHILQHGDVWKHDOORZDEOHHGJH
VHWWOHPHQWLQDQDUHDZKHUHWKHUHLVDERWWRPODSZHOGLQWKHVHWWOHGDUHDWKDWLVHVVHQWLDOO\SDUDOOHO “° WRWKHVKHOO
BeLVGHILQHGDVWKHDOORZDEOHVHWWOHPHQWLQDQDUHDZLWKQRERWWRPZHOGVRURQO\EXWWZHOGVLQWKHERWWRPRUODS
ZHOGVLQWKHERWWRPWKDWDUHHVVHQWLDOO\SHUSHQGLFXODU “° WRWKHVKHOO R is the Radius width of settled area
B is the Settlement
R
Tank
shell
Use straight edge
to determine the
breakover point
Original
bottom
position
B
Breakover point
Tank bottom
R
Tank
shell
Original
bottom
position
B
Breakover point
)LJXUH %²(GJH6HWWOHPHQW
Tank bottom
%
$3,67$1'$5'
Cone up
bottom
Cone down
bottom
Shell
Shell
Original bottom
Breakover
Original
bottom
position
Settled bottom
Settled bottom
position
B — Measured from original
bottom position
B — Incorrect!
Measured from level line from
breakover point to shell
)LJXUH %²&RUUHFWLRQIRU0HDVXUHG(GJH6HWWOHPHQW
% 6HFWLRQ % SURYLGHV PHWKRGV IRU HYDOXDWLRQ RI PHDVXUHG HGJH VHWWOHPHQW B DJDLQVW DOORZDEOH HGJH
VHWWOHPHQWBHZDQGBH6LQFHBHZLVPRUHFRQVHUYDWLYHWKDQBHWKHVLPSOHVWDSSURDFKLVWRLQLWLDOO\HYDOXDWHPHDVXUHG
VHWWOHPHQW B DJDLQVW BHZ IRU DOO VHWWOHG DUHDV ,I DOO DUHDV PHHW WKLV FULWHULRQ WKH VHWWOHPHQW LV DFFHSWDEOH DQG QR
IXUWKHUHYDOXDWLRQLVQHFHVVDU\,IQHFHVVDU\GLIIHUHQWVHWWOHGDUHDVFDQEHHYDOXDWHGVHSDUDWHO\DJDLQVWBHZDQGBH
)RUDUHDVFRQWDLQLQJODSZHOGVDWDQDUELWUDU\DQJOHWRWKHVKHOOLQWHUSRODWLRQWRILQGDQDOORZDEOHVHWWOHPHQWEHWZHHQ
BHZDQGBHEDVHGRQWKHDQJOHRIWKHZHOGWRWKHVKHOOLVDOORZHG
% %RWWRP6HWWOHPHQW1HDUWKH7DQN6KHOO
% )LJXUH%LOOXVWUDWHVERWWRPVHWWOHPHQWQHDUWKHWDQNVKHOO
% 7KHHTXDWLRQJLYHQLQ%FDQEHXVHGWRHYDOXDWHVHWWOHPHQWQHDUWKHWDQNVKHOO$OWHUQDWLYHO\DULJRURXV
VWUHVVDQDO\VLVFDQEHFDUULHGRXWIRUWKHGHIRUPHGSURILOH
% /RFDOL]HG%RWWRP6HWWOHPHQW5HPRWHIURPWKH7DQN6KHOO
% /RFDOL]HG ERWWRP VHWWOHPHQW UHPRWH IURP WDQN VKHOO DUH GHSUHVVLRQV RU EXOJHV WKDW RFFXU LQ D UDQGRP
PDQQHUUHPRWHIURPWKHVKHOO VHH)LJXUH% 7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
Tank shell
R
A
A
R R
R
R ” 2R
R
R
B
B
SECTION A-A
R is the radius of inscribed circle in bulged or depressed area
B is the settlement or depression depth or height of bulge
)LJXUH %²%RWWRP6HWWOHPHQW1HDU6KHOO
% $FFHSWDELOLW\RIWKHVHORFDOL]HGVHWWOHPHQWVLVGHSHQGHQWRQORFDOL]HGVWUHVVHVLQWKHERWWRPSODWHGHVLJQ
DQGTXDOLW\RIWKHODSZHOGV VLQJOHSDVVRUPXOWLSDVV DQGYRLGVEHORZWKHERWWRPSODWH7KHHTXDWLRQJLYHQLQ%
FDQEHXVHGWRHYDOXDWHORFDOL]HGVHWWOHPHQWUHPRWHIURPWKHWDQNVKHOO7KHVHOLPLWVDUHDSSOLFDEOHWRWDQNERWWRPV
WKDWKDYHVLQJOHSDVVODSZHOGHGMRLQWV
% 'HWHUPLQDWLRQRI$FFHSWDEOH6HWWOHPHQW
% *HQHUDO
)RUH[LVWLQJWDQNVZLWKKLVWRU\RIVXFFHVVIXOVHUYLFHLWPD\EHSRVVLEOHWRDFFHSWJUHDWHUVHWWOHPHQWDQGGLVWRUWLRQRIWKH
IRXQGDWLRQIURPDWUXHSODQHWKDQQHZWDQNFRQVWUXFWLRQVWDQGDUGVDOORZ(DFKWDQNPXVWEHHYDOXDWHGEDVHGRQVHUYLFH
FRQGLWLRQVPDWHULDOVRIFRQVWUXFWLRQVRLOFKDUDFWHULVWLFVWDQNIRXQGDWLRQGHVLJQDQGWDQNVHUYLFHKLVWRU\7KHPHWKRGV
GLVFXVVHG LQ IROORZLQJ VHFWLRQV DUH QRW PDQGDWRU\ DQG DSSUR[LPDWH WKH PD[LPXP SHUPLVVLEOH VHWWOHPHQW +RZHYHU
H[SHULHQFHKDVVKRZQWKDWLIVHWWOHPHQWVH[FHHGWKHIROORZLQJUHTXLUHPHQWVIXUWKHUDVVHVVPHQWRUUHSDLULVUHTXLUHG
% 3HUPLVVLEOH2XWRISODQH6HWWOHPHQW
)URP WKH PHDVXUHPHQWV SURFHGXUHV GHVFULEHG LQ % DQG % GHWHUPLQH WKH PD[LPXP RXWRISODQH
VHWWOHPHQW7KHPDJQLWXGH DEVROXWHYDOXH RIWKHPD[LPXPVHWWOHPHQWVKDOOEHFRPSDUHGWRWKHSHUPLVVLEOHYDOXHV
JLYHQLQ%RU%DVDSSOLFDEOH7KHSHUPLVVLEOHRXWRISODQHVHWWOHPHQWJLYHQLQ%DQG%GRQRW
%
$3,67$1'$5'
Tank shell
R
A
A
R
R
Localized depressions
or bulges in tank
bottom plate
R
R
B
B
R is the radius of inscribed circle
in bulged or depressed area
B is the settlement depth
or height of bulge
SECTION A-A
)LJXUH %²/RFDOL]HG%RWWRP'HSUHVVLRQVRU%XOJHV5HPRWHIURP6KHOO
WDNHLQWRFRQVLGHUDWLRQDEUXSWFKDQJHVLQVKHOOHOHYDWLRQ ULGJHV RUGLVFRQWLQXLWLHVQHDUWKHERWWRPRIWKHWDQNLQWKH
VHWWOHGUHJLRQVXFKDVORZQR]]OHV7KH\DOVRGRQRWFRQVLGHUIROGSDWWHUQVLQFRQHURRIWDQNVZKHQWKHIROGOLQHLV
DGMDFHQWWRRUWKURXJKDOLQHRIRQHRUPRUHURRIFROXPQVRUWRSDWWHUQVRIVHWWOHPHQWWKDWLQFOXGHFRPELQHGVKHOODQG
HGJHVHWWOHPHQWV7KHSHUPLVVLEOHVHWWOHPHQWFULWHULDLQ%DUHDSSOLFDEOHWR$3,FDUERQVWHHODQGVWDLQOHVV
VWHHOWDQNVDQGGLDPHWHUUDQJHVJLYHQLQ%2XWRISODQHVHWWOHPHQWWKDWGRHVQRWPHHWWKHVHOLPLWDWLRQVVKRXOG
EHIXUWKHUH[DPLQHGE\DPRUHULJRURXVHQJLQHHULQJDVVHVVPHQWWRGHWHUPLQHWKHQHHGIRUUHSDLUVVHH%
% :KHQXVLQJWKHSURFHGXUHZLWKDQRSWLPDOFRVLQHFXUYHDSSURDFKGHILQHGLQ%WRGHWHUPLQHRXWRI
SODQHVHWWOHPHQWWKHSHUPLVVLEOHRXWRISODQHVHWWOHPHQWLVJLYHQE\WKHIROORZLQJHTXDWLRQ VHH1RWH S PD[IW
( L × Y × )
[(E × H)]
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
ZKHUH
SPD[IW LVSHUPLVVLEOHRXWRISODQHVHWWOHPHQWLQIHHW
L
LVDUFOHQJWKEHWZHHQPHDVXUHPHQWSRLQWVLQIHHW
Y
LV\LHOGVWUHQJWKRIWKHVKHOOPDWHULDOLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ E
LV<RXQJ¶V0RGXOXVLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ H
LVWDQNKHLJKWLQIHHW
127( 7KLVHTXDWLRQLVEDVHGRQ³&ULWHULDIRU6HWWOHPHQWRI7DQNV´:$OOHQ0DUU0$6&(-RVH$5DPRVDQG7:LOOLDP
/DPEH)$6&(
nal
e te n al n nee n
s n3URFHHGLQJVRIWKH$PHULFDQ6RFLHW\RI&LYLO(QJLQHHUV9RO
$XJXVW
% :KHQ XVLQJ WKH SURFHGXUH LQ % WR GHWHUPLQH RXWRISODQH VHWWOHPHQW WKH SHUPLVVLEOH RXWRISODQH
VHWWOHPHQWLVJLYHQE\WKHIROORZLQJHTXDWLRQ VHH1RWH S PD[LQ
D
Y
PLQ K × S DUF × § · × § · © H¹ © E¹
7DQN'LDPHWHU
IW
2SHQ7RS7DQNV
K
)L[HG5RRI7DQNV
K
D ≤ D ≤ D ≤ D ≤ D ≤ 1RWDSSOLFDEOH
D ≤ 1RWDSSOLFDEOH
D
1RWDSSOLFDEOH
1RWDSSOLFDEOH
ZKHUH
SPD[LQ LVSHUPLVVLEOHRXWRISODQHVHWWOHPHQWLQLQFKHV
SDUF
LVHIIHFWLYHVHWWOHPHQWDUFVHH%LQIHHW
D
LVWDQNGLDPHWHULQIHHW IW Y
LV\LHOGVWUHQJWKRIWKHVKHOOPDWHULDOLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ E
LV<RXQJ¶V0RGXOXVLQSRXQGIRUFHSHUVTXDUHLQFK OEILQ H
LVWDQNKHLJKWLQIHHW
127( 7KLVHTXDWLRQLVEDVHGRQ³)LQDO5HSRUWRQWKH6WXG\RI2XWRI3ODQH7DQN6HWWOHPHQW´-$QGUHDQL1&DUU5HSRUWWR
$3,6&$670D\
% 6HUYLFHDELOLW\ PD\ DOVR EH D FRQFHUQ IRU WDQNV ZLWK VLJQLILFDQW RXWRISODQH VHWWOHPHQW 2XWRIURXQGQHVV
FDQLPSHGHIORDWLQJURRIRSHUDWLRQDQGDOVRDIIHFWLQWHUQDOURRIVXSSRUWVWUXFWXUHV7KHRXWRIURXQGQHVVWKDWDWDQN
H[SHULHQFHV ZLWK RXWRISODQH VHWWOHPHQW LV IDLUO\ VHQVLWLYH WR WKH DFWXDO SDWWHUQ RI VHWWOHPHQW7KH RZQHURSHUDWRU
PD\ZLVKWRVSHFLI\DGGLWLRQDOLQVSHFWLRQRUDPRUHULJRURXVDVVHVVPHQWRIWKHWDQN¶VRXWRIURXQGQHVV
%
$3,67$1'$5'
% ,IPHDVXUHGRXWRISODQHVHWWOHPHQWH[FHHGVWKHDSSOLFDEOHOLPLWVGHVFULEHGLQ%RU%DPRUH
ULJRURXV HYDOXDWLRQ PD\ EH SHUIRUPHG WR GHWHUPLQH WKH QHHG IRU UHSDLUV 7KLV HYDOXDWLRQ VKRXOG EH GRQH E\ DQ
HQJLQHHUH[SHULHQFHGLQWDQNVHWWOHPHQWDQDO\VLV
% ,QWHUQDO%RWWRP6HWWOHPHQWVRU%XOJHV
0HDVXUHWKHEXOJHRUGHSUHVVLRQ7KHSHUPLVVLEOHEXOJHRUGHSUHVVLRQLVJLYHQE\WKHIROORZLQJHTXDWLRQ VHH1RWH BB R
ZKHUH
BB LVPD[LPXPKHLJKWRIEXOJHRUGHSWKRIORFDOGHSUHVVLRQLQLQFKHV
R
LVUDGLXVRILQVFULEHGFLUFOHLQEXOJHGDUHDRUORFDOGHSUHVVLRQLQIHHW
)LJXUH%LVDJUDSKLFDOUHSUHVHQWDWLRQRIWKLVHTXDWLRQ
127( 7KLVHTXDWLRQLVEDVHGRQ³&ULWHULDIRU6HWWOHPHQWRI7DQNV´:$OOHQ0DUU0$6&(-RVH$5DPRVDQG7:LOOLDP
/DPEH)$6&(
nal
e te n al n nee n
s n3URFHHGLQJVRIWKH$PHULFDQ6RFLHW\RI&LYLO(QJLQHHUV9RO
$XJXVW
15
14
Repairs or a rigorous assessment
should be conducted if the depth
of the observed bulge or
depression is above this line
B = Depth of depression or bulge at center (in.)
13
12
11
10
R
B
9
R
R
R
R
R R
R
B
R
8
7
Partial ringtype depression
or bulge
(at edge only)
where R < 2R
6
5
4
3
Depression
or bulge
(anywhere)
2
1
0
0
5
10
15
20
25
30
35
40
45
R = Radius of inscribed circle in depression or bulge (ft)
)LJXUH %²/RFDOL]HG7DQN%RWWRP6HWWOHPHQW/LPLWVIRU6LQJOH3DVV:HOGV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
% (GJH6HWWOHPHQW
% 0D[LPXPDOORZDEOHVHWWOHPHQWBHZLVVKRZQLQ)LJXUH%IRUVHWWOHGDUHDVWKDWLQFOXGHERWWRPODSZHOGV
HVVHQWLDOO\SDUDOOHOWRWKHVKHOO “° ,QVHWWOHGDUHDVZKHUHWKHPHDVXUHGVHWWOHPHQWBH[FHHGV RIDOORZHG
VHWWOHPHQWBHZ ,DOOVKHOOWRERWWRPZHOGVDQGERWWRPZHOGVVKRXOGEHH[DPLQHGYLVXDOO\DQGZLWKPDJQHWLFSDUWLFOH
RUOLTXLGSHQHWUDQWPHWKRGV$OOLQGLFDWLRQVVKRXOGEHUHSDLUHGRUHYDOXDWHGIRUULVNRIEULWWOHIUDFWXUHDQGRUIDWLJXH
IDLOXUHSULRUWRUHWXUQLQJWKHWDQNWRVHUYLFH
% )RUVHWWOHGDUHDVZKHUHPHDVXUHGVHWWOHPHQWBH[FHHGV RIBHZ DQ\ZHOGVZLWKLQLQRIHLWKHUVLGH
RI WKH EUHDNRYHU DUHD VHH )LJXUH % VKRXOG EH H[DPLQHG YLVXDOO\$Q\ VXVSHFW DUHDV VKRXOG EH H[DPLQHG ZLWK
HLWKHUPDJQHWLFSDUWLFOHH[DPLQDWLRQRUOLTXLGSHQHWUDQWH[DPLQDWLRQ$OOLQGLFDWLRQVVKRXOGEHUHSDLUHGRUHYDOXDWHG
IRUULVNRIIDWLJXHSULRUWRUHWXUQLQJWKHWDQNWRVHUYLFH
% 0D[LPXPDOORZDEOHVHWWOHPHQWBeLVVKRZQLQ)LJXUH%IRUDUHDVRIHGJHVHWWOHPHQWZLWKQRZHOGVEXWW
ZHOGVRUODSZHOGVLQWKHERWWRPWKDWDUHHVVHQWLDOO\SHUSHQGLFXODUWRWKHVKHOO “° ,QVHWWOHGDUHDVZKHUHWKH
PHDVXUHGVHWWOHPHQWH[FHHGV RIWKHDOORZHGVHWWOHPHQWDOOVKHOOWRERWWRPZHOGVDQGERWWRPZHOGVVKRXOGEH
H[DPLQHG YLVXDOO\ DQG ZLWK PDJQHWLF SDUWLFOH RU OLTXLG SHQHWUDQW PHWKRGV $OO LQGLFDWLRQV VKRXOG EH UHSDLUHG RU
HYDOXDWHGIRUULVNRIEULWWOHIUDFWXUHDQGRUIDWLJXHSULRUWRUHWXUQLQJWKHWDQNWRVHUYLFH
10.00
Tanks with larger edge settlements
are to be repaired, or have detailed
analysis of bottom, and bottom-toshell junction
9.00
Diameter, ft
Bew = Maximum allowable settlement, (in.)
8.00
Welds in tanks with settlement
greater than or equal 75 % of Bew,
and larger than 2 in., are to be
examined with magnetic particle or
liquid penetrant methods
7.00
160 & Larger
120
6.00
100
5.00
80
60
4.00
50
40
30
3.00
20
2.00
Tanks with settlement less than 75 % of
Bew may be returned to service
1.00
0.00
0
1
2
3
4
5
6
R = Radius of settled area, ft
)LJXUH %²0D[LPXP$OORZDEOH(GJH6HWWOHPHQWIRU$UHDVZLWK%RWWRP/DS:HOGV
$SSUR[LPDWHO\3DUDOOHOWRWKH6KHOO
%
$3,67$1'$5'
% 0D[LPXPDOORZDEOHVHWWOHPHQWIRUDUHDVRIHGJHVHWWOHPHQWZLWKDODSZHOGDWDQDUELWUDU\DQJOHWRWKHVKHOO
PD\EHLQWHUSRODWHGIURPBHDQGBHZIURP)LJXUH%DQG)LJXUH%DQGWKHIROORZLQJHTXDWLRQ
Bα BH± BH±BHZ ×VLQα
:KHUHαLVWKHDQJOHRIWKHZHOGWRDWDQNFHQWHUOLQHDQGBαLVWKHDOORZDEOHVHWWOHPHQWIRUDQDUHDZLWKDZHOGDWWKDW
DQJOH VHH)LJXUH% % ,QJHQHUDOVHWWOHPHQWRFFXUVVORZO\DQGIRUPRVWH[LVWLQJWDQNVWKHPDMRULW\RIVHWWOHPHQWLVSUHVXPHGWR
KDYHRFFXUUHGLQWKHILUVWIHZ\HDUVRIVHUYLFH6LJQLILFDQWDGGLWLRQDOVHWWOHPHQWZLOOQRWEHH[SHFWHGDIWHUWKHLQLWLDO
LQVSHFWLRQV7KHUHIRUH W\SLFDO SUDFWLFH LV WR FRPSDUH WKH PHDVXUHG HGJH VHWWOHPHQW ZLWK WKH PD[LPXP DOORZDEOH
HGJHVHWWOHPHQWBHZDQGBHDQGQRWLQFOXGHDOORZDQFHIRUDGGLWLRQDOVHWWOHPHQWGXULQJVXEVHTXHQWRSHUDWLRQ1RWH
WKDW HURVLRQ RI WKH SDG DGMDFHQW WR WKH WDQN PD\ FDXVH ORFDO VHWWOHPHQW ,Q WKLV FDVH WKH VHWWOHPHQW ZLOO FRQWLQXH
XQOHVV WKH SDG LV UHSDLUHG DQG IXWXUH HURVLRQ SUHYHQWHG )RU FDVHV ZKHUH VLJQLILFDQW DGGLWLRQDO VHWWOHPHQW LV
H[SHFWHGDQHQJLQHHUH[SHULHQFHGLQWDQNVHWWOHPHQWHYDOXDWLRQVKRXOGHYDOXDWHWKHVHWWOHPHQWH[SHFWHGDWWKHQH[W
LQVSHFWLRQZLWKWKHOLPLWVLQ%7KLVLVDQDORJRXVWRDFRUURVLRQDOORZDQFHIRUFRPSRQHQWVH[SHFWHGWRFRUURGH
10.00
Tanks with larger edge settlements
are to be repaired, or have detailed
analysis of bottom, and bottom-toshell junction
9.00
Diameter, ft
Be = Maximum allowable settlement, (in.)
8.00
160 & Larger
Welds in tanks with settlement
greater than or equal 75 % of Bew,
and larger than 2 in., are to be
examined with magnetic particle or
liquid penetrant methods
7.00
120
100
6.00
80
60
5.00
50
40
4.00
30
20
3.00
2.00
Tanks with settlement less than 75 % of
Bew may be returned to service
1.00
0.00
0
1
2
3
4
5
6
R = Radius of settled area, ft
)LJXUH %²0D[LPXP$OORZDEOH(GJH6HWWOHPHQWIRU$UHDVZLWK%RWWRP/DS:HOGV
$SSUR[LPDWHO\3HUSHQGLFXODUWRWKH6KHOO
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
%
% 7KHHGJHVHWWOHPHQWOLPLWVGHVFULEHGLQ%WKURXJK%ZHUHGHYHORSHGIRUW\SLFDOLQWKLFNWDQN
ERWWRPVZLWKPLQLPDOFRUURVLRQ
D (GJHVHWWOHPHQWOLPLWVFDQEHDSSOLHGZLWKUHDVRQDEOHDFFXUDF\WRDQGLQWKLFNWDQNERWWRPV
E (GJHVHWWOHPHQWOLPLWVFDQEHDSSOLHGZLWKUHDVRQDEOHDFFXUDF\WRERWWRPVZLWKJHQHUDOFRUURVLRQDVORQJDVWKH
DUHDVQHDUDOOZHOGVDUHWKLFNHUWKDQLQ
F (GJHVHWWOHPHQWOLPLWVFDQEHDSSOLHGZLWKUHDVRQDEOHDFFXUDF\WRERWWRPVZLWKORFDOFRUURVLRQLIDOOORFDOO\WKLQ
DUHDVLQWKHVHWWOHGDUHD FORVHUWKDQ³R´WRWKHVKHOO WKLQQHUWKDQ LQDUHVPDOOHUWKDQLQFKHVLQGLDPHWHU
DQGWKHWKLQDUHDGRHVQRWLQFOXGHDZHOG
G 6HWWOHPHQWLVSUHVXPHGWREHVORZDQGDVPDOODPRXQWRIDGGLWLRQDOVHWWOHPHQWLVH[SHFWHGWRRFFXUSULRUWRWKH
QH[WLQVSHFWLRQ
% (GJH VHWWOHPHQW LQFUHDVHV VHFRQGDU\VWUHVVDW WKH ERWWRPWRVKHOOZHOG,IZHOG UHSDLUV DUH PDGHWR WKH
ERWWRPWRVKHOOZHOGLQDQDUHDZKHUHVHWWOHPHQWH[FHHGVRIBHWKHVHDGGLWLRQDOVWUHVVHVVKRXOGEHHYDOXDWHGE\
DQHQJLQHHUH[SHULHQFHGLQWDQNVHWWOHPHQWHYDOXDWLRQEHIRUHZDLYLQJDK\GURVWDWLFWHVWSHU
% 5HSDLUV
% ,ILWLVGHWHUPLQHGWKDWVHWWOHPHQWVKDYHRFFXUUHGZKLFKDUHEH\RQGWKHSHUPLVVLEOHOLPLWVHVWDEOLVKHGLQWKH
SUHYLRXVVHFWLRQVWKHQFRQVLGHUDWLRQVKRXOGEHJLYHQWRPDNLQJUHSDLUVRUDULJRURXVVWUHVVDQDO\VLVVKRXOGEH
SHUIRUPHGWRHYDOXDWHWKHGHIRUPHGSURILOH9DULRXVUHSDLUWHFKQLTXHVKDYHEHHQGLVFXVVHGDERYH7KHMXGJPHQW
RQUHSDLUVVKRXOGEHWHPSHUHGZLWKNQRZOHGJHRIWDQNVHUYLFHKLVWRU\SUHYLRXVUHSDLUVSUHYLRXVLQVSHFWLRQVWDQN
IRXQGDWLRQ FRQGLWLRQV VRLO FKDUDFWHULVWLFV WKH PDWHULDO RI FRQVWUXFWLRQ DQG HVWLPDWHV RI IXWXUH VHWWOHPHQW 6HH
IRUVXJJHVWHGUHSDLUGHWDLOV
Angle
alpha
Settled
area
Tank
centerline
Bottom plate
layout
)LJXUH %²(GJH6HWWOHPHQWZLWKD/DS:HOGDWDQ$UELWUDU\$QJOHWRWKH6KHOO
%
$3,67$1'$5'
% )RUWDQNVZLWKHGJHVHWWOHPHQWH[FHHGLQJWKHOLPLWVDQGDVVXPSWLRQVJLYHQLQ%WKURXJK%
WKHWDQNVKRXOGEHUHSDLUHG$Q\SODWHH[FHHGLQJDFFHSWDEOHVWUDLQV W\SLFDOO\ WR VKRXOGEHUHSODFHG
5HOHYHOLQJWKHWDQNZLOOQRWUHPRYHWKHSODVWLFVWUDLQVROHYHOLQJWKHWDQNZLWKRXWUHSODFLQJWKHVWUDLQPD\QRWEH
DVXIILFLHQWUHSDLU:HOGVLQWKHDUHDRIWKHKLJKVWUDLQVVKRXOGEHUHPRYHGDQGUHSODFHGRUEHVXEMHFWHGWRD
ILWQHVVIRUVHUYLFHHYDOXDWLRQE\DQHQJLQHHUH[SHULHQFHGLQWDQNVHWWOHPHQWHYDOXDWLRQ7KHFRQGLWLRQOHDGLQJWR
WKH XQDFFHSWDEOH VHWWOHPHQW VKRXOG EH FRUUHFWHG 'HSHQGLQJ RQ WKH VHYHULW\ DQG ORFDWLRQ RI WKH VHWWOHPHQW
UHTXLUHGUHSDLUVPD\LQFOXGHUHJUDGLQJWKHVRLOXQGHUWKHWDQNERWWRPDQGRUUHSDLULQJWKHIRXQGDWLRQ-DFNLQJ
DQG UHOHYHOLQJ WKH VKHOO PD\ EH UHTXLUHG WR SUHYHQW DGGLWLRQDO VHWWOHPHQW GDPDJH -DFNLQJ DQG OHYHOLQJ DUH
XVXDOO\GRQHLQFRQMXQFWLRQZLWKQRWLQVWHDGRIUHSODFLQJGDPDJHGSODWHDQGZHOGV,QOLHXRIUHSDLUVDGHWDLOHG
DQDO\VLV RI WKH VHWWOHG DUHD PD\ EH SHUIRUPHG E\ DQ HQJLQHHU H[SHULHQFHG LQ WDQN GHVLJQ DQG VHWWOHPHQW
HYDOXDWLRQ7KHDQDO\VLVVKRXOGFRQVLGHUSULPDU\DQGVHFRQGDU\VWUHVVDQGWKHULVNRIEULWWOHIUDFWXUH
$QQH[&
LQIRUPDWLYH
&KHFNOLVWVIRU7DQN,QVSHFWLRQ
$QQH[&FRQWDLQVVDPSOHFKHFNOLVWVLOOXVWUDWLQJWDQNFRPSRQHQWVDQGDX[LOLDU\LWHPVWKDWVKRXOGEHFRQVLGHUHGIRU
LQWHUQDO DQG H[WHUQDO LQVSHFWLRQ RI WDQNV 7KLV LQIRUPDWLRQ LV SURYLGHG DV JXLGDQFH WR WKH RZQHURSHUDWRU IRU
GHYHORSLQJDQLQVSHFWLRQDVVHVVPHQWVFKHGXOHIRUDQ\VSHFLILFWDQNLQVWDOODWLRQ7KHFKHFNOLVWIRUPDWIDFLOLWDWHVWKH
UHFRUGLQJRILQVSHFWLRQILQGLQJV
127( 8VHUV RI FKHFNOLVWV VKRXOG QRW UHO\ H[FOXVLYHO\ RQ WKH LQIRUPDWLRQ FRQWDLQHG LQ WKLV GRFXPHQW 6RXQG EXVLQHVV
VFLHQWLILFHQJLQHHULQJDQGVDIHW\MXGJPHQWVKRXOGEHXVHGLQHPSOR\LQJWKHLQIRUPDWLRQFRQWDLQHGKHUHLQ
127( :KHUHDSSOLFDEOHDXWKRULWLHVKDYLQJMXULVGLFWLRQVKRXOGEHFRQVXOWHG
&
&
$3,67$1'$5'
7DEOH&ͶdĂŶŬ/ŶͲƐĞƌǀŝĐĞ/ŶƐƉĞĐƚŝŽŶŚĞĐŬůŝƐƚ
,WHP
&
)RXQGDWLRQ
0HDVXUHIRXQGDWLRQOHYHOQHVVDQGERWWRPHOHYDWLRQV VHH$QQH[%IRUH[WHQWRI
PHDVXUHPHQWV &
&RQFUHWH5LQJ
D ,QVSHFWIRUEURNHQFRQFUHWHVSDOOLQJDQGFUDFNVSDUWLFXODUO\XQGHUEDFNXSEDUVXVHG
LQZHOGLQJEXWWZHOGHGDQQXODUULQJVXQGHUWKHVKHOO
E ,QVSHFWGUDLQRSHQLQJVLQULQJEDFNRIZDWHUGUDZEDVLQVDQGWRSVXUIDFHRIULQJIRU
LQGLFDWLRQVRIERWWRPOHDNDJH
F
,QVSHFWIRUFDYLWLHVXQGHUIRXQGDWLRQDQGYHJHWDWLRQDJDLQVWERWWRPRIWDQN
G &KHFNWKDWUXQRIIUDLQZDWHUIURPWKHVKHOOGUDLQVDZD\IURPWDQN
H &KHFNIRUVHWWOHPHQWDURXQGSHULPHWHURIWDQN
&
$VSKDOW
D &KHFNIRUVHWWOLQJRIWDQNLQWRDVSKDOWEDVHZKLFKZRXOGGLUHFWUXQRIIUDLQZDWHUXQGHU
WKHWDQNLQVWHDGRIDZD\IURPLW
E /RRNIRUDUHDVZKHUHOHDFKLQJRIRLOKDVOHIWURFNILOOHUH[SRVHGZKLFKLQGLFDWHV
K\GURFDUERQOHDNDJH
&
2LOHG'LUWRU6DQG
&KHFNIRUVHWWOHPHQWLQWRWKHEDVHZKLFKZRXOGGLUHFWUXQRIIUDLQZDWHUXQGHUWKHWDQN
UDWKHUWKDQDZD\IURPLW
&
5RFN
3UHVHQFHRIFUXVKHGURFNXQGHUWKHVWHHOERWWRPXVXDOO\UHVXOWVLQVHYHUHXQGHUVLGH
FRUURVLRQ0DNHDQRWHWRGRDGGLWLRQDOERWWRPSODWHH[DPLQDWLRQ XOWUDVRQLFKDPPHU
WHVWLQJRUWXUQLQJRIFRXSRQV ZKHQWKHWDQNLVRXWRIVHUYLFH
&
6LWH'UDLQDJH
D &KHFNVLWHIRUGUDLQDJHDZD\IURPWKHWDQNDQGDVVRFLDWHGSLSLQJDQGPDQLIROGV
E &KHFNRSHUDWLQJFRQGLWLRQRIWKHGLNHGUDLQV
&
+RXVHNHHSLQJ
,QVSHFWWKHDUHDIRUEXLOGXSRIWUDVKYHJHWDWLRQDQGRWKHULQIODPPDEOHVEXLOGXS
&
&DWKRGLF3URWHFWLRQ
&
6KHOOV
5HYLHZFDWKRGLFSURWHFWLRQSRWHQWLDOUHDGLQJV
&
([WHUQDO9LVXDO,QVSHFWLRQ
D 9LVXDOO\LQVSHFWIRUSDLQWIDLOXUHVSLWWLQJDQGFRUURVLRQ
E &OHDQRIIWKHERWWRPDQJOHDUHDDQGLQVSHFWIRUFRUURVLRQDQGWKLQQLQJRQSODWHDQG
ZHOG
F
&
,QVSHFWWKHERWWRPWRIRXQGDWLRQVHDOLIDQ\
,QWHUQDO )ORDWLQJ5RRI7DQN
9LVXDOO\LQVSHFWIRUJURRYLQJFRUURVLRQSLWWLQJDQGFRDWLQJIDLOXUHV
&
5LYHWHG6KHOO,QVSHFWLRQ
D ,QVSHFWH[WHUQDOVXUIDFHIRUULYHWDQGVHDPOHDNV
E /RFDWHOHDNVE\VNHWFKRUSKRWR ORFDWLRQZLOOEHORVWZKHQVKHOOLVDEUDVLYHFOHDQHG
IRUSDLQWLQJ F
,QVSHFWULYHWVIRUFRUURVLRQORVVDQGZHDU
G ,QVSHFWYHUWLFDOVHDPVWRVHHLIWKH\KDYHEHHQIXOOILOOHWODSZHOGHGWRLQFUHDVHMRLQW
HIILFLHQF\
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
&RPSOHWHG
√
&RPPHQWV
H ,IQRUHFRUGH[LVWVRIYHUWLFDOULYHWHGVHDPVGLPHQVLRQDQGVNHWFK RUSKRWRJUDSK WKHULYHWSDWWHUQQXPEHURIURZVULYHWVL]HSLWFKOHQJWKDQGQRWHZKHWKHUWKHMRLQWLV
EXWWULYHWHGRUODSULYHWHG
&
:LQG*LUGHU )ORDWLQJ5RRI7DQNV
D ,QVSHFWZLQGJLUGHUDQGKDQGUDLOIRUFRUURVLRQGDPDJH SDLQWIDLOXUHSLWWLQJFRUURVLRQ
SURGXFWEXLOGXS HVSHFLDOO\ZKHUHLWRFFXUVDWWDFNZHOGHGMXQFWLRQDQGIRUEURNHQ
ZHOGV
E &KHFNVXSSRUWZHOGVWRVKHOOIRUSLWWLQJHVSHFLDOO\RQVKHOOSODWHV
F
1RWHZKHWKHUVXSSRUWVKDYHUHLQIRUFLQJSDGVZHOGHGWRVKHOO
&
6KHOO$SSXUWHQDQFHV
&
0DQZD\VDQG1R]]OHV
D ,QVSHFWIRUFUDFNVRUVLJQVRIOHDNDJHRQZHOGMRLQWDWQR]]OHVPDQZD\VDQG
UHLQIRUFLQJSODWHV
E ,QVSHFWIRUVKHOOSODWHGLPSOLQJDURXQGQR]]OHVFDXVHGE\H[FHVVLYHSLSHGHIOHFWLRQ
F
,QVSHFWIRUIODQJHOHDNVDQGOHDNVDURXQGEROWLQJ
G ,QVSHFWVHDOLQJRILQVXODWLRQDURXQGPDQZD\VDQGQR]]OHV
H &KHFNIRULQDGHTXDWHPDQZD\IODQJHDQGFRYHUWKLFNQHVVRQPL[HUPDQZD\V
&
7DQN3LSLQJ0DQLIROGV
D ,QVSHFWPDQLIROGSLSLQJIODQJHVDQGYDOYHVIRUOHDNV
E ,QVSHFWILUHILJKWLQJV\VWHPFRPSRQHQWV
F
&KHFNIRUDQFKRUHGSLSLQJZKLFKZRXOGEHKD]DUGRXVWRWKHWDQNVKHOORUERWWRP
FRQQHFWLRQVGXULQJHDUWKPRYHPHQW
G &KHFNIRUDGHTXDWHWKHUPDOSUHVVXUHUHOLHIRISLSLQJWRWKHWDQN
H &KHFNRSHUDWLRQRIUHJXODWRUVIRUWDQNVZLWKSXUJHJDVV\VWHPV
I
&KHFNVDPSOHFRQQHFWLRQVIRUOHDNVDQGIRUSURSHUYDOYHRSHUDWLRQ
J &KHFNIRUGDPDJHDQGWHVWWKHDFFXUDF\RIWHPSHUDWXUHLQGLFDWRUV
K &KHFNZHOGVRQVKHOOPRXQWHGGDYLWFOLSVDERYHYDOYHV LQDQGODUJHU
&
$XWRJDXJH6\VWHP
D ,QVSHFWDXWRJDXJHWDSHJXLGHDQGORZHUVKHDYHKRXVLQJ IORDWLQJVZLQJV IRUOHDNV
E ,QVSHFWDXWRJDXJHKHDGIRUGDPDJH
F
%XPSWKHFKHFNHURQDXWRJDXJHKHDGIRUSURSHUPRYHPHQWRIWDSH
G ,GHQWLI\VL]HDQGFRQVWUXFWLRQPDWHULDORIDXWRJDXJHWDSHJXLGH IORDWLQJURRIWDQNV H $VNRSHUDWRULIWDSHWHQGVWRKDQJXSGXULQJWDQNURRIPRYHPHQW IORDWLQJURRIWDQNV I
&RPSDUHDFWXDOSURGXFWOHYHOWRWKHUHDGLQJRQWKHDXWRJDXJH PD[LPXPYDULDWLRQLV
LQ J 2QIORDWLQJURRIWDQNVZKHQWKHURRILVLQWKHORZHVWSRVLWLRQFKHFNWKDWQRPRUHWKDQ
WZRIWRIWDSHDUHH[SRVHGDWWKHHQGRIWKHWDSHJXLGH
K ,QVSHFWFRQGLWLRQRIERDUGDQGOHJLELOLW\RIERDUGW\SHDXWRJDXJHV
L
&
7HVWIUHHGRPRIPRYHPHQWRIPDUNHUDQGIORDW
6KHOOPRXQWHG6DPSOH6WDWLRQ
D ,QVSHFWVDPSOHOLQHVIRUIXQFWLRQRIYDOYHVDQGSOXJJLQJRIOLQHVLQFOXGLQJGUDLQRU
UHWXUQWRWDQNOLQH
E &KHFNFLUFXODWLRQSXPSIRUOHDNVDQGRSHUDWLQJSUREOHPV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
F
7HVWEUDFLQJDQGVXSSRUWVIRUVDPSOHOLQHVDQGHTXLSPHQW
&
+HDWHU 6KHOO0DQZD\0RXQWHG
&
0L[HU
,QVSHFWFRQGHQVDWHGUDLQIRUSUHVHQFHRIRLOLQGLFDWLQJOHDNDJH
D ,QVSHFWIRUSURSHUPRXQWLQJIODQJHDQGVXSSRUW
E ,QVSHFWIRUOHDNDJH
F
&
,QVSHFWFRQGLWLRQRISRZHUOLQHVDQGFRQQHFWLRQVWR PL[HU
6ZLQJ/LQHV:LQFK2SHUDWLRQ
D 1RQIORDWLQJ5DLVHWKHQORZHUWKHVZLQJOLQHZLWKWKHZLQFKDQGFKHFNIRUFDEOH
WLJKWQHVVWRFRQILUPWKDWVZLQJOLQHORZHUHGSURSHUO\
E )ORDWLQJ:LWKWDQNKDOIIXOORUPRUHORZHUWKHVZLQJOLQHWKHQOHWRXWFDEOHDQGFKHFN
LIVZLQJKDVSXOOHGFDEOHWLJKWLQGLFDWLQJWKDWWKHZLQFKLVRSHUDWLQJSURSHUO\
F
&
,QGLFDWRU&KHFNWKDWWKHLQGLFDWRUPRYHVLQWKHSURSHUGLUHFWLRQ)ORDWLQJVZLQJOLQH
LQGLFDWRUVVKRZDORZHUOHYHODVFDEOHLVZRXQGXSRQWKHZLQFK1RQIORDWLQJVZLQJ
OLQHLQGLFDWRUVVKRZWKHRSSRVLWH
6ZLQJ/LQHV([WHUQDO*XLGH6\VWHP
&KHFNIRUOHDNVDWWKUHDGHGDQGIODQJHGMRLQWV
&
6ZLQJ/LQHV,GHQWLI\%DOODVW9DU\LQJ1HHG
&
6ZLQJ/LQHV&DEOH0DWHULDODQG&RQGLWLRQ
&KHFNIRUVLJQLILFDQWGLIIHUHQFHLQVWRFNVSHFLILFJUDYLW\
D )RUQRQVWDLQOHVVVWHHOFDEOHFKHFNIRUFRUURVLRQRYHUHQWLUHOHQJWK
E $OOFDEOHFKHFNIRUZHDURUIUD\LQJ
&
6ZLQJ/LQHV3URGXFW6DPSOH&RPSDULVRQ
&
6ZLQJ/LQHV7DUJHW
&KHFNIRUZDWHURUJUDYLW\GLIIHUHQFHVWKDWZRXOGLQGLFDWHDOHDNLQJVZLQJMRLQW
7DUJHWVKRXOGLQGLFDWHGLUHFWLRQRIVZLQJRSHQLQJ XSRUGRZQ DQGKHLJKWDERYHERWWRP
ZKHUHVXFWLRQZLOOEHORVWZLWKVZLQJRQERWWRPVXSSRUW
&
5RRIV
&
'HFN3ODWH,QWHUQDO&RUURVLRQ
)RUVDIHW\EHIRUHDFFHVVLQJWKHURRIFKHFNZLWKXOWUDVRQLFLQVWUXPHQWRUOLJKWO\XVHDEDOO
SHHQKDPPHUWRWHVWWKHGHFNSODWHQHDUWKHHGJHRIWKHURRIIRUWKLQQLQJ &RUURVLRQ
QRUPDOO\DWWDFNVWKHGHFNSODWHDWWKHHGJHRIDIL[HGURRIDQGDWWKHUDIWHUVLQWKHFHQWHU
RIWKHURRIILUVW
&
'HFN3ODWH([WHUQDO&RUURVLRQ
&
5RRI'HFN'UDLQDJH
9LVXDOO\LQVSHFWIRUSDLQWIDLOXUHKROHVSLWWLQJDQGFRUURVLRQSURGXFWRQWKHURRIGHFN
/RRNIRULQGLFDWLRQRIVWDQGLQJZDWHU 6LJQLILFDQWVDJJLQJRIIL[HGURRIGHFNLQGLFDWHV
SRWHQWLDOUDIWHUIDLOXUH/DUJHVWDQGLQJZDWHUDUHDVRQDIORDWLQJURRILQGLFDWHLQDGHTXDWH
GUDLQDJHGHVLJQRULIWRRQHVLGHDQRQOHYHOURRIZLWKSRVVLEOHOHDNLQJSRQWRRQV
&
/HYHORI)ORDWLQJ5RRI
$WVHYHUDOORFDWLRQVPHDVXUHGLVWDQFHIURPURRIULPWRDKRUL]RQWDOZHOGVHDPDERYHWKH
URRI$YDULDQFHLQWKHUHDGLQJVLQGLFDWHVDQRQOHYHOURRIZLWKSRVVLEOHVKHOORXWRIURXQG
RXWRISOXPEOHDNLQJSRQWRRQVRUKDQJXS2QVPDOOGLDPHWHUWDQNVDQXQOHYHO
FRQGLWLRQFDQLQGLFDWHXQHTXDOORDGLQJDWWKDWOHYHO
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
&
*DV7HVW,QWHUQDO)ORDWLQJ5RRI
7HVWIRUH[SORVLYHJDVRQWRSRIWKHLQWHUQDOIORDWLQJURRI5HDGLQJVFRXOGLQGLFDWHD
OHDNLQJURRIOHDNLQJVHDOV\VWHPRULQDGHTXDWHYHQWLODWLRQRIWKHDUHDDERYHWKHLQWHUQDO
IORDWLQJURRI
&
5RRI,QVXODWLRQ
D 9LVXDOO\LQVSHFWIRUFUDFNVRUOHDNVLQWKHLQVXODWLRQZHDWKHUFRDWZKHUHUXQRIIUDLQ
ZDWHUFRXOGSHQHWUDWHWKHLQVXODWLRQ
E ,QVSHFWIRUZHWLQVXODWLRQXQGHUWKHZHDWKHUFRDW
F
&
5HPRYHVPDOOWHVWVHFWLRQVRILQVXODWLRQDQGFKHFNURRISODWHIRUFRUURVLRQDQGKROHV
QHDUDUHDVVXVFHSWLEOHWRZDWHULQJUHVV LHURRIQR]]OHVHWF )ORDWLQJ5RRI6HDO6\VWHPV
D ,QVSHFWWKHFRQGLWLRQRIWKHVHDOPHDVXUHDQGUHFRUGPD[LPXPULPVSDFHVDQGVHDO
WRVKHOOJDSVDURXQGWKHIXOOURRIFLUFXPIHUHQFHDWWKHOHYHORILQVSHFWLRQ
127( ,QVSHFWLRQRIWKHVHDODQGPHDVXUHPHQWRIWKHULPVSDFHVDQGVHDOWRVKHOO
JDSVDWPRUHWKDQRQHOHYHOPD\EHQHFHVVDU\WRPRUHIXOO\GHWHUPLQHLIDQ\
SUREOHPVH[LVWDWRWKHUOHYHOVRIWDQNRSHUDWLRQ E 0HDVXUHDQGUHFRUGDQQXODUVSDFHDWIWVSDFLQJ PLQLPXPRIIRXUTXDGUDQWV DURXQGURRIDQGUHFRUG0HDVXUHPHQWVVKRXOGEHWDNHQLQGLUHFWO\RSSRVLWHSDLUV
BBBBBBB BBBBBBB2SSRVLWHSDLU
BBBBBBB BBBBBBB2SSRVLWHSDLU
F
&KHFNLIVHDOIDEULFRQSULPDU\VKRHVHDOVLVSXOOLQJVKRHVDZD\IURPVKHOO IDEULFQRW
ZLGHHQRXJK G ,QVSHFWIDEULFIRUGHWHULRUDWLRQKROHVWHDUVDQGFUDFNV
H ,QVSHFWYLVLEOHPHWDOOLFSDUWVIRUFRUURVLRQDQGZHDU
I
,QVSHFWIRURSHQLQJVLQVHDOVWKDWZRXOGSHUPLWYDSRUHPLVVLRQV
J ,QVSHFWIRUSURWUXGLQJEROWRUULYHWKHDGVDJDLQVWWKHVKHOO
K 3XOOERWKSULPDU\DQGVHFRQGDU\VHDOV\VWHPVEDFNDOODURXQGWKHVKHOOWRFKHFNWKHLU
RSHUDWLRQ
L
,QVSHFWVHFRQGDU\VHDOVIRUVLJQVRIEXFNOLQJRULQGLFDWLRQVWKDWWKHLUDQJOHZLWKWKH
VKHOOLVWRRVKDOORZ
M
,QVSHFWZHGJHW\SHZLSHUVHDOVIRUIOH[LELOLW\UHVLOLHQFHFUDFNVDQGWHDUV
&
5RRI$SSXUWHQDQFHV
&
6DPSOH+DWFK
D ,QVSHFWFRQGLWLRQDQGIXQFWLRQLQJRIVDPSOHKDWFKFRYHU
E 2QWDQNVJRYHUQHGE\$LU4XDOLW\0RQLWRULQJ'LVWULFWUXOHVFKHFNIRUWKHFRQGLWLRQRI
VHDOLQVLGHKDWFKFRYHU
F
&KHFNIRUFRUURVLRQDQGSOXJJLQJRQWKLHIDQGJDXJHKDWFK FRYHU
G :KHUHVDPSOHKDWFKLVXVHGWRUHHOJDXJHVWRFNOHYHOFKHFNIRUPDUNHUDQGWDE
VWDWLQJKROGRIIGLVWDQFH
H &KHFNIRUUHLQIRUFLQJSDGZKHUHVDPSOHKDWFKSLSHSHQHWUDWHVWKHURRIGHFN
I
2QIORDWLQJURRIVDPSOHKDWFKDQGUHFRLOV\VWHPVLQVSHFWRSHUDWLRQRIUHFRLOUHHODQG
FRQGLWLRQRIURSH
J 7HVWRSHUDWLRQRIV\VWHP
K 2QXOWUDFOHDQVWRFNVVXFKDV-3FKHFNIRUSUHVHQFHDQGFRQGLWLRQRISURWHFWLYH
FRDWLQJRUOLQHULQVLGHVDPSOHKDWFK SUHYHQWLQJUXVWIURPSLSHJHWWLQJLQWRVDPSOH &RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
&
*DXJH:HOO
D ,QVSHFWYLVLEOHSRUWLRQRIWKHJDXJHZHOOIRUWKLQQLQJVL]HRIVORWVDQGFRYHUFRQGLWLRQ
E &KHFNIRUDKROGRIIGLVWDQFHPDUNHUDQGWDEZLWKKROGRIIGLVWDQFH OHJLEOH F
2QIORDWLQJURRIVLQVSHFWFRQGLWLRQRIURRIJXLGHIRU JDXJHZHOOSDUWLFXODUO\WKH
FRQGLWLRQRIWKHUROOHUVIRUJURRYLQJ
G ,IDFFHVVLEOHFKHFNWKHGLVWDQFHIURPWKHJDXJHZHOOSLSHWRWKHWDQNVKHOODWGLIIHUHQW
OHYHOV
H ,IWDQNKDVDJDXJHZHOOZDVKHUFKHFNYDOYHIRUOHDNDJHDQGIRUSUHVHQFHRIDEXOO
SOXJRUEOLQGIODQJH
&
)L[HG5RRI6FDIIROG6XSSRUW
&
$XWRJDXJH,QVSHFWLRQ+DWFKDQG*XLGHV )L[HG5RRI
,QVSHFWVFDIIROGVXSSRUWIRUFRUURVLRQZHDUDQGVWUXFWXUDOVRXQGQHVV
D &KHFNWKHKDWFKIRUFRUURVLRQDQGPLVVLQJEROWV
E /RRNIRUFRUURVLRQRQWKHWDSHJXLGH¶VDQGIORDWJXLGH¶VZLUHDQFKRUV
&
$XWRJDXJH)ORDW:HOO&RYHU
D ,QVSHFWIRUFRUURVLRQ
E &KHFNWDSHFDEOHIRUZHDURUIUD\LQJFDXVHGE\UXEELQJRQWKHFRYHU
&
6DPSOH+DWFK ,QWHUQDO)ORDWLQJ5RRI
D &KHFNRYHUDOOFRQGLWLRQV
E :KHQHTXLSSHGZLWKDIDEULFVHDOFKHFNIRUDXWRPDWLFVHDOLQJDIWHUVDPSOLQJ
F
:KHQHTXLSSHGZLWKDUHFRLOUHHORSHQLQJGHYLFHFKHFNIRUSURSHURSHUDWLRQV
&
5RRIPRXQWHG9HQWV ,QWHUQDO)ORDWLQJ5RRI
&
*DXJLQJ3ODWIRUP'ULS5LQJ
&KHFNFRQGLWLRQRIVFUHHQVORFNLQJDQGSLYRWSLQV
2QIL[HGURRIWDQNVZLWKGULSULQJVXQGHUWKHJDXJLQJSODWIRUPRUVDPSOLQJDUHDLQVSHFW
IRUSOXJJHGGUDLQUHWXUQWRWKHWDQN
&
(PHUJHQF\5RRI'UDLQV
,QVSHFWYDSRUSOXJVIRUHPHUJHQF\GUDLQWKDWVHDOIDEULFGLVFVDUHVOLJKWO\VPDOOHUWKDQ
WKHSLSH,'DQGWKDWIDEULFVHDOLVDERYHWKHOLTXLGOHYHO
&
5HPRYDEOH5RRI/HJ5DFNV
&
9DFXXP%UHDNHUV
&KHFNIRUOHJUDFNVRQURRI
5HSRUWVL]HQXPEHUDQGW\SHRIYDFXXPEUHDNHUV,QVSHFWYDFXXPEUHDNHUV,IKLJKOHJV
DUHVHWFKHFNIRUVHWWLQJRIPHFKDQLFDOEUHDNHULQKLJKOHJSRVLWLRQ
&
5LP9HQWV
D &KHFNFRQGLWLRQRIWKHVFUHHQRQWKHULPYHQWFRYHU
E &KHFNIRUSODWLQJRIIRUUHPRYDORIULPYHQWVZKHUHMXULVGLFWLRQDOUXOHVGRQRWSHUPLW
UHPRYDO
&
3RQWRRQ,QVSHFWLRQ+DWFKHV
D 2SHQSRQWRRQLQVSHFWLRQKDWFKFRYHUVDQGYLVXDOO\FKHFNLQVLGHIRUSRQWRRQOHDNDJH
E 7HVWIRUH[SORVLYHJDV DQLQGLFDWRURIYDSRUVSDFHOHDNV &RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN,QVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
F
&
,ISRQWRRQKDWFKHVDUHHTXLSSHGZLWKORFNHGGRZQFRYHVFKHFNIRUYHQWWXEHV
&KHFNWKDWYHQWWXEHVDUHQRWSOXJJHGXS,QVSHFWORFNGRZQGHYLFHVIRUFRQGLWLRQ
DQGRSHUDWLRQ
$FFHVVZD\V
6HH7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW,WHP&
127(6
&RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW
,WHP
&
2YHUYLHZ
D &KHFNWKDWWDQNKDVEHHQFOHDQHGLVJDVIUHHDQGVDIHIRUHQWU\
E &KHFNWKDWWKHWDQNLVFRPSOHWHO\LVRODWHGIURPSURGXFWOLQHVDOOHOHFWULFDOSRZHUDQG
VWHDPOLQHV
F
&KHFNWKDWURRILVDGHTXDWHO\VXSSRUWHGLQFOXGLQJIL[HGURRIVWUXFWXUHDQGIORDWLQJ
URRIOHJV
G &KHFNIRUSUHVHQFHRIIDOOLQJREMHFWKD]DUGVVXFKDVFRUURGHGWKURXJKURRIUDIWHUV
DVSKDOWVWDODFWLWHVDQGWUDSSHGK\GURFDUERQVLQXQRSHQHGRUSOXJJHGHTXLSPHQWRU
DSSXUWHQDQFHVOHGJHVHWF
H ,QVSHFWIRUVOLSSLQJKD]DUGVRQWKHERWWRPDQGURRIGHFNV
I
,QVSHFWVWUXFWXUDOZHOGVRQDFFHVVZD\VDQGFOLSV
J &KHFNVXUIDFHVQHHGLQJLQVSHFWLRQIRUDKHDY\VFDOHEXLOGXSDQGFKHFNZHOGVHDPV
DQGRLO\VXUIDFHVZKHUHZHOGLQJLVWREHGRQH1RWHDUHDVQHHGLQJPRUHFOHDQLQJ
LQFOXGLQJEODVWLQJ
K 5HYLHZFDWKRGLFSURWHFWLRQSRWHQWLDOUHDGLQJV
&
7DQN([WHULRU
D ,QVSHFWDSSXUWHQDQFHVRSHQHGGXULQJFOHDQLQJVXFKDVORZHUIORDWLQJVZLQJVKHDYH
DVVHPEOLHVQR]]OHLQWHULRUV DIWHUUHPRYDORIYDOYHV E +DPPHUWHVWRUXOWUDVRQLFDOO\WHVWWKHURRI
F
&
(QWHUDQGLQVSHFWWKHIORDWLQJURRISRQWRRQFRPSDUWPHQWV
%RWWRP,QWHULRU6XUIDFH
D 8VLQJDIODVKOLJKWKHOGFORVHWRDQGSDUDOOHOWRWKHERWWRPSODWHVDQGXVLQJWKHERWWRP
SODWHOD\RXWDVDJXLGHYLVXDOO\LQVSHFWDQGKDPPHUWHVWWKHHQWLUHERWWRP
E 0HDVXUHWKHGHSWKRISLWWLQJDQGGHVFULEHWKHSLWWLQJDSSHDUDQFH VKDUSHGJHGODNH
W\SHGHQVHVFDWWHUHGHWF
F
0DUNDUHDVUHTXLULQJSDWFKLQJRUIXUWKHULQVSHFWLRQ
G 0DUNORFDWLRQVIRUWXUQLQJFRXSRQVIRULQVSHFWLRQ
H ,QVSHFWDOOZHOGVIRUFRUURVLRQDQGOHDNVSDUWLFXODUO\WKHVKHOOWRERWWRPZHOG
I
,QVSHFWVNHWFKSODWHVIRUFRUURVLRQ
J &KHFNFRQGLWLRQRILQWHUQDOVXPSLIDSSOLFDEOH6WDQGLQJOLTXLGVKRXOGEHUHPRYHG
IURPWKHVXPSWRDOORZIRUFRPSOHWHLQVSHFWLRQDQGYDFXXPWHVWLQJRIZHOGVHDPVDV
DSSURSULDWH6XPSERWWRPDQGVLGHZDOOSODWHDQGVHDPVQHHGWREHHYDOXDWHGIRU
ERWKSURGXFWVLGHDQGVRLOVLGHFRUURVLRQ
K /RFDWHDQGPDUNYRLGVXQGHUWKHERWWRP
L
5HFRUGERWWRPGDWDRQDOD\RXWVNHWFKXVLQJWKHH[LVWLQJERWWRPSODWHVDVDJULG
/LVWWKHQXPEHUDQGVL]HVRISDWFKHVUHTXLUHG
M
9DFXXPWHVWWKHERWWRPODSZHOGV
N
+DPPHUWHVWRUXOWUDVRQLFDOO\H[DPLQHDQ\VOLJKWO\GLVFRORUHGVSRWVRUGDPSDUHDV
O
&KHFNIRUUHLQIRUFLQJSDGVXQGHUDOOERWWRPDWWDFKHGFOLSVEUDFNHWVDQGVXSSRUWV
P ,QVSHFWIORDWLQJURRIOHJSDGVIRUSLWWLQJRUFXWWLQJDQGH[FHVVLYHGLPSOLQJ LQGLFDWLQJ
H[FHVVLYHORDGLQJ Q &KHFNWKHFROXPQEDVHVRIIL[HGURRIVXSSRUWVIRUDGHTXDWHSDGVDQGUHVWUDLQLQJFOLSV
R ,QHDUWKTXDNH=RQHVDQGFKHFNWKDWURRIVXSSRUWVDUHQRWZHOGHGGRZQWRWKH
WDQNERWWRPEXWDUHRQO\UHVWUDLQHGIURPKRUL]RQWDOPRYHPHQW
S &KHFNDUHDEHQHDWKVZLQJOLQHFDEOHIRULQGLFDWLRQVRIFDEOHFXWWLQJRUGUDJJLQJ
T 0DUNROGRLODQGDLUWHVWFRQQHFWLRQIRUUHPRYDODQGSDWFKLQJ
U
,GHQWLI\DQGUHSRUWORZDUHDVRQWKHERWWRPWKDWGRQRWGUDLQDGHTXDWHO\
V
,QVSHFWFRDWLQJIRUKROHVGLVERQGLQJGHWHULRUDWLRQDQGGLVFRORUDWLRQ
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
&
6KHOO6HDPVDQG3ODWH
D 2QFRQHXSERWWRPVFORVHO\LQVSHFWDQGJDXJHWKHGHSWKRIPHWDOORVVRQWKHORZHU
LQWRLQRIWKHVKHOO DUHDRIVWDQGLQJZDWHU E 0HDVXUHWKHGHSWKRISLWWLQJRQHDFKFRXUVH
F
,QVSHFWDQGHVWLPDWHWKHDPRXQWRIPHWDOORVVRQWKHKHDGVRIULYHWVDQGEROWV
G ,QVSHFWVKHOOWRERWWRPULYHWHGODSMRLQWV
H ,QVSHFWIRUYHUWLFDOJURRYLQJGDPDJHIURPVHDODVVHPEO\SURWUXVLRQV
I
,QVSHFWH[LVWLQJSURWHFWLYHFRDWLQJVIRUGDPDJHGHWHULRUDWLRQDQGGLVERQGLQJ
J &KHFNIRUDUHDVRIUXEELQJ LQGLFDWLQJWRRPXFKSUHVVXUHE\WKHVHDODVVHPEO\VKRHV
RULQDGHTXDWHDQQXODUVSDFH K 9LVXDOO\LQVSHFWWKHVKHOOSODWHVDQGVHDPVIRULQGLFDWLRQVRIOHDNDJH
&
L
,IWKHVKHOOKDVULYHWHGRUEROWHGVHDPVUHFRUGWKHOHDNORFDWLRQVE\ILOPRUFKDUWLQ
FDVHWKHORFDWLRQVDUHORVWGXULQJVXUIDFHSUHSDUDWLRQIRUSDLQWLQJ
M
0HDVXUHDQQXODUVSDFHDWIWLQWHUYDOV
N
6XUYH\WKHVKHOOWRFKHFNIRUURXQGQHVVDQGSOXPE
6KHOOPRXQWHG2YHUIORZV
D ,QVSHFWRYHUIORZIRUFRUURVLRQDQGDGHTXDWHVFUHHQLQJ
E &KHFNORFDWLRQRIRYHUIORZWKDWLWLVQRWDERYHDQ\WDQNYDOYHVRUHTXLSPHQW
&
5RRI,QWHULRU6XUIDFH
&
*HQHUDO
D 9LVXDOO\LQVSHFWWKHXQGHUVLGHVXUIDFHRIWKHURRISODWHVIRUKROHVVFDOHEXLOGXSDQG
SLWWLQJ
E +DPPHUWHVWRUXOWUDVRQLFDOO\H[DPLQHWRFKHFNIRUWKLQDUHDVSDUWLFXODUO\LQWKHYDSRU
VSDFHRIIORDWLQJURRIVDQGDWHGJHRIURRIRQFRQHURRIWDQN
F
&KHFNDOOFOLSVEUDFNHWVEUDFHVHWFZHOGHGWRWKHURRIGHFNSODWHIRUZHOGHG
UHLQIRUFLQJSDGVDQGVHHWKDWWKH\KDYHQRWEURNHQIUHH
G ,IQRSDGLVSUHVHQWSHQHWUDQWWHVWIRUFUDFNLQJRIWKHZHOGRUGHFNSODWH
H ,QVSHFWIRUSURWHFWLYHFRDWLQJIRUEUHDNVGLVERQGPHQWDQGGHWHULRUDWLRQ
I
&
6SDUNWHVWWKHLQWHULRUVXUIDFHFRDWLQJLIUHFRDWLQJLVQRWSODQQHG
)L[HG5RRI6XSSRUW6WUXFWXUH
D ,QVSHFWWKHVXSSRUWFROXPQVIRUWKLQQLQJLQWKHXSSHUIW
E 2Q$3,FROXPQV WZRFKDQQHOVZHOGHGWRJHWKHU FKHFNIRUFRUURVLRQVFDOHEUHDNLQJ
WKHWDFNZHOGVXQOHVVWKHMRLQWEHWZHHQWKHFKDQQHOVLVFRPSOHWHO\VHDOZHOGHG
F
&KHFNWKDWWKHUHLQIRUFLQJSDGRQWKHERWWRPLVVHDOZHOGHGWRWKHWDQNERWWRPZLWK
KRUL]RQWDOPRYHPHQWUHVWUDLQLQJFOLSVZHOGHGWRWKHSDG
G 'HWHUPLQHLISLSHFROXPQVXSSRUWVDUHFRQFUHWHILOOHGRURSHQSLSH,IRSHQSLSH
FKHFNIRUDGUDLQRSHQLQJLQWKHERWWRPRIWKHSLSH
H ,QVSHFWDQGJDXJHUDIWHUVIRUWKLQQLQJSDUWLFXODUO\QHDUWKHFHQWHURIWKHURRI5HSRUW
PHWDOORVV
I
&KHFNIRUORRVHRUWZLVWHGUDIWHUV
J ,QVSHFWJLUGHUVIRUWKLQQLQJDQGFKHFNWKDWWKH\DUHDWWDFKHGVHFXUHO\WRWKHWRSRIWKH
FROXPQV
&RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
K 5HSRUWLIWKHFROXPQVKDYHFURVVEUDFLQJLQWKHDUHDEHWZHHQWKHORZSXPSRXWRIWKH
WRSRIWKHVKHOO IRUIXWXUHLQWHUQDOIORDWLQJURRILQVWDOODWLRQ L
,QVSHFWDQGUHSRUWSUHVHQFHRIDQ\URRIPRXQWHGVZLQJOLQHEXPSHUV
M
3KRWRJUDSKWKHURRIVWUXFWXUHLIQRUDIWHUOD\RXWGUDZLQJH[LVWV
&
)L[HG5RRI$SSXUWHQDQFHV
&
,QVSHFWLRQDQG/LJKW+DWFKHV
D ,QVSHFWWKHKDWFKHVIRUFRUURVLRQSDLQWDQGFRDWLQJIDLOXUHVKROHVDQGFRYHUVHDOLQJ
E 2QORRVHFRYHUVFKHFNIRUDVDIHW\FKDLQLQJRRGFRQGLWLRQ
F
2QOLJKWKDWFKHVRYHULQDFURVVFKHFNIRUVDIHW\URGV
G ,QVSHFWWKHFRQGLWLRQRIWKHJDVNHWVRQEROGRUODWFKHGGRZQKDWFKFRYHUV
&
6WDJLQJ6XSSRUW&RQQHFWLRQ
,QVSHFWWKHFRQGLWLRQRIWKHVWDJLQJVXSSRUWIRUFRUURVLRQ
&
%UHDWKHUVDQG9HQWV
D ,QVSHFWDQGVHUYLFHWKHEUHDWKHU
E ,QVSHFWVFUHHQVRQYHQWVDQGEUHDWKHUV
&
(PHUJHQF\39+DWFKHV
D ,QVSHFWDQGVHUYLFHSUHVVXUHYDFXXPKDWFKHV 6HWWLQJVKRXOGEHKLJKHQRXJKWRSUH
YHQWFKDWWHULQJRIEUHDWKHUGXULQJQRUPDORSHUDWLRQ6HHEUHDWKHUPDQXIDFWXUHU¶V
JXLGH
E ,QVSHFWOLTXLGVHDOKDWFKHVIRUFRUURVLRQDQGSURSHUOLTXLGOHYHOLQWKHVHDO
&
6DPSOH+DWFK
D ,QVSHFWVDPSOHKDWFKIRUFRUURVLRQ
E &KHFNWKDWWKHFRYHURSHUDWHVSURSHUO\
F
,IWKHWDQNKDVQRJDXJHZHOOFKHFNIRUDKROGRIIGLVWDQFHPDUNHUDQGFKHFNPHD
VXUHPHQW
&
)ORDWLQJ5RRI
&
5RRI'HFN
D +DPPHUWHVWWKHDUHDEHWZHHQURRIULPDQGVKHOO ,IDFFHVVIRUKDPPHUWHVWLQJLV
LQDGHTXDWHPHDVXUHWKHGLVWDQFHIURPWKHERWWRPHGJHRIWKHURRIWRWKHFRUURGHG
DUHDDQGWKHQKDPPHUWHVWIURPLQVLGHWKHSRQWRRQ
E ,QVRXUZDWHUVHUYLFHFOHDQDQGWHVWDOOGHFNSODWHZHOGVHDPVIRUFUDFNLQJXQOHVVWKH
ORZHUODSVKDYHEHHQVHDOZHOGHG
F
&KHFNWKDWHLWKHUWKHURRIGUDLQLVRSHQRUWKHGUDLQSOXJLQWKHURRILVRSHQLQFDVHRI
XQH[SHFWHGUDLQ
G 2QIODWERWWRPHGDQGFRQHERWWRPURRIGHFNVFKHFNIRUDYDSRUGDPDURXQGWKH
SHULSKHU\RIWKHURRI7KHGDPVKRXOGEHFRQWLQXRXVZLWKRXWEUHDNWRSUHYHQWHVFDSH
RIYDSRUVWRWKHVHDODUHDIURPXQGHUWKHFHQWHURIWKHURRI
&
)ORDWLQJ5RRI3RQWRRQV
D 9LVXDOO\LQVSHFWHDFKSRQWRRQIRUOLTXLGOHDNDJH
E 5XQDOLJKWZLUHWKURXJKWKHJRRVHQHFNYHQWVRQORFNHGGRZQLQVSHFWLRQKDWFKFRYHUV
WRPDNHVXUHWKH\DUHRSHQ
F
,QVSHFWORFNGRZQODWFKHVRQHDFKFRYHU
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
G &KHFNDQGUHSRUWLIHDFKSRQWRRQLV
YDSRUWLJKW EXONKHDGVHDOZHOGHGRQRQHVLGHRQERWWRPVLGHVDQGWRS OLTXLGWLJKW VHDOZHOGHGRQERWWRPDQGVLGHVRQO\ RU
XQDFFHSWDEOH PLQLPXPDFFHSWDEOHFRQGLWLRQLVOLTXLGWLJKW &
)ORDWLQJ5RRI&XWRXWV
D ,QVSHFWXQGHUVLGHRIFXWRXWVIRUPHFKDQLFDOGDPDJH
E ,QVSHFWZHOGVIRUFUDFNV
F
,QVSHFWSODWHIRUWKLQQLQJSLWWLQJDQGHURVLRQ
G 0HDVXUHPL[HUFXWRXWVDQGUHFRUGSODWHWKLFNQHVVIRUIXWXUHPL[HULQVWDOODWLRQRU
UHSODFHPHQW
3ODWHWKLFNQHVVBBBBBB &
)ORDWLQJ5RRI6XSSRUWV
D ,QVSHFWIL[HGORZDQGUHPRYDEOHKLJKIORDWLQJURRIOHJVIRUWKLQQLQJ
E ,QVSHFWIRUQRWFKLQJDWERWWRPRIOHJVIRUGUDLQDJH
F
,QVSHFWIRUOHJEXFNOLQJRUIHOOLQJDWERWWRP
G ,QVSHFWSLQKROHLQURRIJXLGHIRUWHDUV
H &KHFNSOXPERIDOOOHJV
I
,QVSHFWIRUDGHTXDWHUHLQIRUFLQJJXVVHWVRQDOOOHJVWKURXJKDVLQJOHSRUWLRQRIWKH
URRI
J ,QVSHFWWKHDUHDDURXQGWKHURRIOHJVIRUFUDFNLQJLIWKHUHLVQRLQWHUQDOUHLQIRUFLQJSDG
RULIWKHWRSVLGHSDGLVQRWZHOGHGWRWKHGHFNSODWHRQWKHXQGHUVLGH
K ,QVSHFWWKHVHDOLQJV\VWHPRQWKHWZRSRVLWLRQOHJVDQGWKHYDSRUSOXJVLQWKHIL[HG
ORZOHJIRUGHWHULRUDWLRQRIWKHJDVNHWV
L
2QVKHOOPRXQWHGURRIVXSSRUWVFKHFNIRUDGHTXDWHFOHDUDQFHEDVHGRQWKHPD[L
PXPIORDWLQJURRIPRYHPHQWDVGHWHUPLQHGE\WKHSRVLWLRQRIWKHURRIUHODWLYHWRWKH
JDXJHZHOODQGRUFRXQWHUURWDWLRQDOGHYLFH
&
)ORDWLQJ5RRI6HDO$VVHPEOLHV
&
3ULPDU\6KRH$VVHPEO\
D 5HPRYHIRXUVHFWLRQVRIIRDPORJ IRDPILOOHGVHDOV IRULQVSHFWLRQRQƒORFDWLRQV
E ,QVSHFWKDQJHUDWWDFKPHQWWRURRIULPIRUWKLQQLQJEHQGLQJEURNHQZHOGVDQGZHDU
RISLQKROHV
F
,QVSHFWFOLSVZHOGHGWRURRIULPIRUWKLQQLQJ
G 6KRHV²LQVSHFWIRUWKLQQLQJDQGKROHVLQVKRHV
H ,QVSHFWIRUELWPHWDOEROWVFOLSVDQGDWWDFKPHQWV
I
6HDOIDEULF²LQVSHFWIRUGHWHULRUDWLRQVWLIIHQLQJKROHVDQGWHDUVLQIDEULF
J 0HDVXUHOHQJWKRIIDEULFIURPWRSRIVKRHWRURRIULPDQGFKHFNDJDLQVWPD[LPXP
DQWLFLSDWHGDQQXODUVSDFHDVURRIRSHUDWHV
K ,QVSHFWDQ\PRGLILFDWLRQRIVKRHVRYHUVKHOOQR]]OHVPL[HUVHWFIRUFOHDUDQFH
L
&
,QVSHFWVKRHVIRUGDPDJHFDXVHGE\VWULNLQJVKHOOQR]]OHVPL[HUVHWF
3ULPDU\7RURLGDO$VVHPEO\
D ,QVSHFWVHDOIDEULFIRUZHDUGHWHULRUDWLRQKROHVDQG WHDUV
&RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
E ,QVSHFWKROGGRZQV\VWHPIRUEXFNOLQJRUEHQGLQJ
F
&
,QVSHFWIRDPIRUOLTXLGDEVRUSWLRQDQGGHWHULRUDWLRQ
5LPPRXQWHG6HFRQGDULHV
D ,QVSHFWWKHULPPRXQWHGEROWLQJEDUIRUFRUURVLRQDQGEURNHQZHOGV
E 0HDVXUHDQGFKDUWVHDOWRVKHOOJDSV
F
9LVXDOO\LQVSHFWVHDPIURPEHORZORRNLQJIRUKROHVDVHYLGHQFHGE\OLJKW
G ,QVSHFWIDEULFIRUGHWHULRUDWLRQDQGVWLIIQHVV
H ,QVSHFWIRUPHFKDQLFDOGDPDJHFRUURVLRQDQGZHDURQWLSLQFRQWDFWZLWKVKHOO
I
,QVSHFWIRUFRQWDFWZLWKREVWUXFWLRQVDERYHWRSRIVKHOO
&
)ORDWLQJ5RRI$SSXUWHQDQFHV
&
5RRI0DQZD\V
D ,QVSHFWZDOOVRIPDQZD\VIRUSLWWLQJDQGWKLQQLQJ
E 2QWDQNVZLWKLQWHUIDFHDXWRJDXJHVFKHFNVHDODURXQGJDXJHWDSHFDEOHDQGJXLGH
ZLUHVWKURXJKPDQZD\FRYHU
F
&
,QVSHFWFRYHUJDVNHWDQGEROWV
5LP9HQW
D &KHFNULPYHQWIRUSLWWLQJDQGKROHV
E &KHFNYHQWIRUFRQGLWLRQRIVFUHHQ
F
&
2QIORDWLQJURRIWDQNVZKHUHWKHHQYLURQPHQWDOUXOHVUHTXLUHFORVLQJRIIWKHYHQW
FKHFNWKHYHQWSLSHIRUFRUURVLRQDWWKHSLSHWRULPMRLQWDQGFKHFNWKDWWKHEOLQGLQJLV
DGHTXDWH
9DFXXP%UHDNHU%UHDWKHU7\SH
D 6HUYLFHDQGFKHFNRSHUDWLRQRIEUHDWKHUYDOYH
E &KHFNWKDWQR]]OHSLSHSURMHFWVQRPRUHWKDQLQEHORZURRIGHFN
&
9DFXXP%UHDNHU0HFKDQLFDO7\SH
,QVSHFWWKHVWHPIRUWKLQQLQJ0HDVXUHKRZIDUWKHYDFXXPEUHDNHUFRYHULVUDLVHGRIIWKH
SLSHZKHQWKHURRILVUHVWLQJRQKLJKRUORZOHJV
D 2QKLJKOHJVBBBBBBBBB E 2QORZOHJVBBBBBBBBB &
5RRI'UDLQV2SHQ6\VWHPV,QFOXGLQJ(PHUJHQF\'UDLQV
D &KHFNOLTXLGOHYHOLQVLGHRSHQURRIGUDLQVIRUDGHTXDWHIUHHERDUG5HSRUWLIWKHUHLV
LQVXIILFLHQWGLVWDQFHEHWZHHQOLTXLGOHYHODQGWRSRIGUDLQ
E ,IWDQNFRPHVXQGHU$LU4XDOLW\0RQLWRULQJ'LVWULFWUXOHVLQVSHFWWKHURRIGUDLQYDSRU
SOXJ
F
&
,IHPHUJHQF\GUDLQLVQRWDWWKHFHQWHURIWKHURRIFKHFNWKDWWKHUHDUHDWOHDVWWKUHH
HPHUJHQF\GUDLQV
&ORVHG'UDLQ6\VWHPV'UDLQ%DVLQV
D ,QVSHFWIRUWKLQQLQJDQGSLWWLQJ
E ,QVSHFWSURWHFWLYHFRDWLQJ WRSVLGH F
,QVSHFWEDVLQFRYHURUVFUHHQIRUFRUURVLRQ
G 7HVWRSHUDWLRQRIFKHFNYDOYH
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
H &KHFNIRUSUHVHQFHRIFKHFNYDOYHZKHUHERWWRPRIEDVLQLVEHORZSURGXFWOHYHO
I
,QVSHFWGUDLQEDVLQ V WRURRIGHFNZHOGVIRUFUDFNLQJ
J &KHFNGUDLQEDVLQ V RXWOHWSLSHIRUDGHTXDWHUHLQIRUFHPHQWWRURRIGHFN LQFOXGLQJ
UHLQIRUFLQJSDG &
&ORVHG'UDLQ6\VWHPV)L[HG'UDLQ/LQHRQ7DQN%RWWRP
D +DPPHUWHVWIL[HGGUDLQOLQHRQWDQNERWWRPIRUWKLQQLQJDQGVFDOHGHEULVSOXJJLQJ
E ,QVSHFWVXSSRUWVDQGUHLQIRUFLQJSDGVIRUZHOGIDLOXUHVDQGFRUURVLRQ
F
&
&KHFNWKDWSLSHLVJXLGHGQRWULJLGO\ORFNHGWRVXSSRUWWRDYRLGWHDULQJRIWDQNERWWRP
SODWH
&ORVHG'UDLQ6\VWHPV)OH[LEOH3LSH'UDLQ
D ,QVSHFWIRUGDPDJHWRH[WHULRURISLSH
E &KHFNIRUREVWUXFWLRQVWKDWSLSHFRXOGFDWFKRQ
F
,QVSHFWVKLHOGVWRSURWHFWSLSHIURPVQDJJLQJ
G ,QVSHFWUHVXOWVRIK\GURVWDWLFWHVWRQIOH[LEOHURRIGUDLQV\VWHP
&
&ORVHG'UDLQ6\VWHPV$UWLFXODWHG-RLQW'UDLQ
D +DPPHUWHVWULJLGSLSHLQIOH[LEOHMRLQWV\VWHPVIRUWKLQQLQJDQGVFDOHGHEULVSOXJJLQJ
E ,QVSHFWV\VWHPIRUVLJQVRIEHQGLQJRUVWUDLQ
F
,QVSHFWUHVXOWVRIV\VWHPK\GURVWDWLFWHVW
G ,QVSHFWODQGLQJOHJDQGSDG
& $XWRJDXJH6\VWHPDQG$ODUPV
D &KHFNIUHHGRPRIPRYHPHQWRIWDSHWKURXJKDXWRJDXJHWDSHJXLGH
E ,QVSHFWVKHDYHVIRUIUHHGRPRIPRYHPHQW
F
7HVWRSHUDWLRQFKHFNHU
G ,QVSHFWWDSHDQGWDSHFDEOHIRUWZLVWLQJDQGIUD\LQJ
H 7HVWWKHWDSH¶VIUHHGRPRIPRYHPHQWWKURXJKJXLGHVKHDYHVDQGWDSHJXLGHSLSH
I
2QRSHQWRSWDQNVFKHFNWKDWJDWHWDSHVZLWKFDEOHVKDYH QRPRUHWKDQRQHIRRWRI
WDSHH[SRVHGZLWKIORDWDWORZHVWSRLQW
J &KHFNIORDWIRUOHDNDJH
K 7HVWIORDWJXLGHZLUHDQFKRUVIRUVSULQJDFWLRQE\SXOOLQJRQZLUHDQGUHOHDVLQJ
L
,QVSHFWIORDWZHOOVLQIORDWLQJURRIVIRUWKLQQLQJDQGSLWWLQJRIZDOOVMXVWDERYHWKHOLTXLG
OHYHO
M
&KHFNWKDWWKHDXWRJDXJHWDSHLVILUPO\DWWDFKHGWRWKH IORDW
N
,QVSHFWWKHWDSHFDEOHDQGIORDWJXLGHZLUHIDEULFVHDOVWKURXJKWKHIORDWZHOOFRYHU
O
,QVSHFWWKHERWWRPJXLGHZLUHDWWDFKPHQWFOLSLQVSHFWIRUDWHPSRUDU\ZHLJKWHGEDU
LQVWHDGRIDSHUPDQHQWZHOGHGGRZQFOLS
P ,QVSHFWERDUGW\SHDXWRJDXJHLQGLFDWRUVIRUOHJLELOLW\DQGIUHHGRPRIPRYHPHQWRI
LQGLFDWRU
Q 0HDVXUHDQGUHFRUGWKHVHGLVWDQFHVWRGHWHUPLQHLIVHDOGDPDJHZLOORFFXULIWDQNLV
UXQRYHUIURP
6KHOOWRSDQJOHWRXQGHUVLGHRIWDSHJXLGHV\VWHP
/LTXLGOHYHORQIORDWLQJWRSWRWRSRIVHFRQGDU\VHDO
&RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
R ,GHQWLI\IORDWLQJURRIVZKHUHWKHWDSHLVFRQQHFWHGGLUHFWO\WRWKHURRI
S 2YHUILOODODUP,QVSHFWWDQNRYHUILOOSUHYHQWLRQDODUPVZLWFKHVIRUSURSHURSHUDWLRQ
&
&RPPRQ7DQN$SSXUWHQDQFHV
&
*DXJH:HOO
D ,QVSHFWJDWHZHOOSLSHIRUWKLQQLQJDWDERXWWZRWKLUGVGLVWDQFHDERYHWKHERWWRPORRN
IRUWKLQQLQJDWWKHHGJHRIWKHVORWV
E &KHFNIRUFRUURVLRQRQWKHSLSHMRLQW&KHFNWKDWVDPSOHFRUGVZHLJKWV
WKHUPRPHWHUVHWFKDYHEHHQUHPRYHGIURPWKHSLSH
F
&KHFNIRUFRQHDWERWWRPHQGRISLSHDERXWRQHIRRWDERYHWKHERWWRP
G &KHFNFRQGLWLRQRIZHOOZDVKHUSLSHDQGWKDWLWVIODUHGHQGLVGLUHFWHGDWWKHQHDUVLGH
RIWKHKROGRIISDG
H &KHFNWKDWVXSSRUWVIRUJDXJHZHOODUHZHOGHGWRSDGRUWRVKHOODQGQRWGLUHFWO\WR
ERWWRPSODWH
I
&KHFNRSHUDWLRQRIJDXJHZHOOFRYHU
J &KHFNSUHVHQFHRIDKROGRIIGLVWDQFHPDUNHULQZHOOSLSHDQGUHFRUGKROGRII
GLVWDQFH
+ROGRIIGLVWDQFHBBBBBBBBB K ,GHQWLI\DQGUHSRUWVL]HDQGSLSHVFKHGXOHDQGZKHWKHUSLSHLVVROLGRUVORWWHG5HSRUW
VORWVL]H
L
&KHFNWKDWWKHKROGRIIGLVWDQFHSODWHLVVHDOZHOGHGWRWKHERWWRPDQGWKDWDQ\JDXJH
ZHOOVXSSRUWVDUHZHOGHGWRWKHSODWHDQGQRWGLUHFWO\WRWKHERWWRP
M
,QVSHFWYDSRUFRQWUROIORDWDQGFDEOH
N
&KHFNIRUSUHVHQFHDQGFRQGLWLRQRIJDXJHZHOOZDVKHU
O
&KHFNIRUEXOOSOXJRUSODWHEOLQGRQJDXJHZHOOZDVKHUYDOYH
P ,QVSHFWJDXJHZHOOJXLGHLQIORDWLQJURRIIRUSLWWLQJDQGWKLQQLQJ
Q ,QVSHFWWKHJXLGHUROOHUVDQGVOLGLQJSODWHVIRUIUHHGRPRIPRYHPHQW
R ,QVSHFWFRQGLWLRQRIJDXJHZHOOSLSHVHDOV\VWHP
S 2QEODFNRLODQGGLHVHOVHUYLFHVLIJDXJHZHOOLVDOVRXVHGIRUVDPSOLQJFKHFNIRU
SUHVHQFHRIDWKLHIDQGJDXJHW\SHKDWFKWRDYRLGVSLOODJH
T 9LVXDOO\LQVSHFWLQVLGHRISLSHIRUSLSHZHOGSURWUXVLRQVZKLFKFRXOGFDWFKRUGDPDJH
YDSRUFRQWUROIORDW
&
6DPSOLQJ6\VWHPV5RRI6DPSOH+DWFKHV
D ,QVSHFWURRIPRXQWHGVDPSOHKDWFKHVIRUUHLQIRUFLQJSDGVDQGFUDFNLQJ
E ,QVSHFWFRYHUIRURSHUDWLRQ
F
)RUWDQNVFRPSO\LQJZLWK$LU4XDOLW\0RQLWRULQJ'LVWULFWUXOHVLQVSHFWVDPSOHKDWFK
FRYHUVIRUDGHTXDWHVHDOLQJ
G &KHFNKRUL]RQWDODOLJQPHQWRILQWHUQDOIORDWLQJURRIVDPSOHKDWFKHVXQGHUIL[HGURRI
KDWFKHV
H ,QVSHFWWKHVHDOLQJV\VWHPRQWKHLQWHUQDOIORDWLQJURRIVDPSOHKDWFKFRYHU
I
&
,QVSHFWIORDWLQJURRIVDPSOHKDWFKFRYHUUHFRLOUHHODQGURSH
6KHOO1R]]OHV
D ,QVSHFWVKHOOQR]]OHVIRUWKLQQLQJDQGSLWWLQJ
E ,QVSHFWKRWWDSQR]]OHVIRUWULPPLQJRIKROHV
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
F
,GHQWLI\W\SHRIVKHOOQR]]OHV
G ,GHQWLI\DQGGHVFULEHLQWHUQDOSLSLQJLQFOXGLQJHOERZXSDQGHOERZGRZQW\SHV
&
)RU1R]]OHV([WHQGHG,QWRWKH7DQN
D ,QVSHFWSLSHVXSSRUWSDGVZHOGHGWRWDQNERWWRP
E ,QVSHFWWRVHHWKDWSLSHLVIUHHWRPRYHDORQJVXSSRUWZLWKRXWVWUDLQRUWHDULQJDFWLRQ
RQERWWRPSODWH
F
,QVSHFWQR]]OHYDOYHVIRUSDFNLQJOHDNVDQGGDPDJHGIODQJHIDFHV
G ,QVSHFWKHDWHUVWUHDPQR]]OHIODQJHVDQGYDOYHVIRUZLUHFXWWLQJ
H 5HSRUWZKLFKQR]]OHVKDYHWKHUPDOSUHVVXUHUHOLHIERVVHVDQGYDOYHV
I
,QLQWHUQDOHOERZGRZQILOOOLQHQR]]OHVLQVSHFWWKHZHDUSODWHRQWKHWDQNERWWRP
J 2QHOERZXSILOOOLQHVLQIORDWLQJURRIWDQNVFKHFNWKDWRSHQLQJLVGLUHFWHGDJDLQVW
XQGHUVLGHRIURRIQRWDJDLQVWYDSRUVSDFH,QVSHFWLPSDFWDUHIRUHURVLRQ
&
'LIIXVHUVDQG$LU5ROOLQJ6\VWHPV
D ,QVSHFWGLIIXVHUSLSHIRUHURVLRQDQGWKLQQLQJ
E &KHFNKROHVLQGLIIXVHUIRUH[FHVVLYHZHDUDQGHQODUJHPHQW
F
,QVSHFWGLIIXVHUVXSSRUWVIRUGDPDJHDQGFRUURVLRQ
G &KHFNWKDWGLIIXVHUVXSSRUWVUHVWUDLQQRWDQFKRUORQJLWXGLQDOOLQHPRYHPHQW
H ,QVSHFWDLUVSLGHUVRQERWWRPRIOXEHRLOWDQNVIRUSOXJJLQJDQGGDPDJHGRUEURNHQ
WKUHDGHGMRLQWV
&
6ZLQJ/LQHV
D ,QVSHFWIOH[LEOHMRLQWIRUFUDFNVDQGOHDNV
E 6FULEHWKHIOH[LEOHMRLQWDFURVVWKHWZRPRYLQJIDFHVDQGUDLVHHQGRIVZLQJOLQHWR
FKHFNWKHMRLQW¶VIUHHGRPRIPRYHPHQWLQGLFDWHGE\VHSDUDWLRQRIVFULEHPDUNV
F
&KHFNWKDWIOH[LEOHMRLQWVRYHULQDUHVXSSRUWHG
G ,QVSHFWWKHVZLQJSLSHIRUGHHSSLWWLQJDQGZHOGFRUURVLRQ
H /RRVHQWKHYHQWSOXJVLQWKHSRQWRRQVDQGOLVWHQIRUDYDFXXP/DFNRIDYDFXXP
LQGLFDWHVDOHDNLQJSRQWRRQ
I
&KHFNWKHUHVXOWVRIDLUWHVWRQSRQWRRQVGXULQJUHSDLUV
J ,QVSHFWWKHSRQWRRQVIRUSLWWLQJ
K ,QVSHFWWKHSXOOGRZQFDEOHFRQQHFWLRQVWRWKHVZLQJ
L
,QVSHFWWKHFRQGLWLRQRIWKHERWWRPPRXQWHGVXSSRUWIL[HGURRIOLPLWLQJEXPSHURU
VKHOOPRXQWHGOLPLWLQJEXPSHUIRUZRRGFRQGLWLRQZHOGDQGEROWFRUURVLRQDQGVHDO
ZHOGLQJWRERWWRPRUVKHOO
M
,QVSHFWVDIHW\KROGGRZQFKDLQIRUFRUURVLRQDQGZHDNOLQNV
N
&KHFNWKDWWKHUHLVDZHOGHGUHLQIRUFLQJSDGZKHUHWKHFKDLQFRQQHFWVWRWKHERWWRP
O
,IWKHIORDWLQJVZLQJLQDIORDWLQJRULQWHUQDOIORDWLQJURRIWDQNGRHVQRWKDYHDOLPLWLQJ
GHYLFHSUHYHQWLQJWKHVZLQJIURPH[FHHGLQJGHJUHHVPHDVXUHDQGFDOFXODWHWKH
PD[LPXPDQJOHSRVVLEOHZLWKWKHURRIRQRYHUIORZ
0D[DQJOHRQRYHUIORZBBBBBBBBBBBBB ,IWKHFDOFXODWHGDQJOHH[FHHGVGHJUHHVUHFRPPHQGHGLQVWDOODWLRQRIDOLPLWLQJ
EUDFNHW
P ,QVSHFWSXOOGRZQFDEOHIRUIUD\LQJ
&RPSOHWHG
√
&RPPHQWV
&
$3,67$1'$5'
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
Q ,QVSHFWIRUWKUHHFDEOHFODPSVZKHUHFDEOHDWWDFKHVWRHQGRIVZLQJOLQH VLQJOH
UHHYHG RUWRURRIDVVHPEO\ GRXEOHUHHYHG ,QVSHFWVKHDYHVIRUIUHHGRPRIPRYH
PHQW
R ,QVSHFWZLQFKRSHUDWLRQDQGFKHFNWKHKHLJKWLQGLFDWRUIRUOHJLELOLW\DQGDFFXUDF\
S ,QVSHFWERWWRPPRXQWHGVKHDYHDVVHPEO\DWHQGRISRQWRRQIRUIUHHGRPRIURWDWLRQ
RIVKHDYH
T ,QVSHFWVKHOOPRXQWHGORZHUVKHDYHDVVHPEO\IRUIUHHGRPRIURWDWLRQRIVKHDYH
FRUURVLRQWKLQQLQJDQGSLWWLQJRIVKHDYHKRXVLQJ
&
U
,QVSHFWXSSHUVKHDYHDVVHPEO\IRUIUHHGRPRIPRYHPHQWRIVKHDYH
V
,QVSHFWWKHFDEOHFRXQWHUEDODQFHDVVHPEO\IRUFRUURVLRQDQGIUHHGRPRIRSHUDWLRQ
0DQZD\+HDWHU5DFNV
D ,QVSHFWWKHPDQZD\KHDWHUUDFNVIRUEURNHQZHOGVDQGEHQGLQJRIWKHVOLGLQJUDLOV
E 0HDVXUHDQGUHFRUGWKHOHQJWKRIWKHKHDWHUDQGOHQJWKRIWKHWUDFN
&
0L[HU:HDU3ODWHVDQG'HIOHFWRU6WDQGV
D ,QVSHFWERWWRPDQGVKHOOSODWHVDQGGHIOHFWRUVWDQGV
E ,QVSHFWIRUHURVLRQDQGFRUURVLRQRQWKHZHDUSODWHV,QVSHFWIRUULJLGLW\VWUXFWXUDO
VRXQGQHVVFRUURVLRQDQGHURVLRQRIGHFNSODWHVDQGUHLQIRUFLQJSDGVWKDWDUHVHDO
ZHOGHGWRWKHERWWRPXQGHUWKHGHIOHFWRUVWDQGOHJV
F
0HDVXUHIRUSURSHOOHUFOHDUDQFHEHWZHHQWKHERWWRPRIGHIOHFWRUVWDQGDQGURRIZKHQ
WKHURRILVRQORZOHJV
&
$FFHVV6WUXFWXUHV
&
+DQGUDLOV
D ,GHQWLI\DQGUHSRUWW\SH VWHHOSLSHJDOYDQL]HGSLSHVTXDUHWXEHDQJOH DQGVL]HRI
KDQGUDLOV
E ,QVSHFWIRUSLWWLQJDQGKROHVSDLQWIDLOXUH
F
,QVSHFWDWWDFKPHQWZHOGV
G ,GHQWLI\FROGMRLQWVDQGVKDUSHGJHV,QVSHFWWKHKDQGUDLOVDQGPLGUDLOV
H ,QVSHFWVDIHW\GURSEDU RUVDIHW\FKDLQ IRUFRUURVLRQIXQFWLRQLQJDQGOHQJWK
I
&
,QVSHFWWKHKDQGUDLOEHWZHHQWKHUROOLQJODGGHUDQGWKHJDJLQJSODWIRUPIRUD
KD]DUGRXVRSHQLQJZKHQWKHIORDWLQJURRILVDWLWVORZHVWOHYHO
3ODWIRUP)UDPH
D ,QVSHFWIUDPHIRUFRUURVLRQDQGSDLQWIDLOXUH
E ,QVSHFWWKHDWWDFKPHQWRIIUDPHWRVXSSRUWVDQGVXSSRUWVWRWDQNIRUFRUURVLRQDQG
ZHOGIDLOXUH
F
&KHFNUHLQIRUFLQJSDGVZKHUHVXSSRUWVDUHDWWDFKHGWRVKHOORUURRI
G ,QVSHFWWKHVXUIDFHWKDWGHFNSODWHRUJUDWLQJUHVWVRQIRUWKLQQLQJDQGKROHV
H &KHFNWKDWIODWVXUIDFHWRIODWVXUIDFHMXQFWXUHVDUHVHDOZHOGHG
&
'HFN3ODWHDQG*UDWLQJ
D ,QVSHFWGHFNSODWHIRUFRUURVLRQFDXVHGWKLQQLQJRUKROHV QRWGUDLQKROHV DQGSDLQW
IDLOXUH
E ,QVSHFWSODWHWRIUDPHZHOGIRUUXVWVFDOHEXLOGXS
F
,QVSHFWJUDWLQJIRUFRUURVLRQFDXVHGWKLQQLQJRIEDUVDQGIDLOXUHRIZHOGV
&RPSOHWHG
√
&RPPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
&
7DEOH&Ͷ7DQN2XWRIVHUYLFH,QVSHFWLRQ&KHFNOLVW &RQWLQXHG
,WHP
G &KHFNJUDWLQJWLHGRZQFOLSV:KHUHJUDWLQJKDVEHHQUHWURILWWHGWRUHSODFHSODWH
PHDVXUHWKHULVHRIWKHVWHSEHORZDQGDERYHWKHJUDWLQJVXUIDFHDQGFRPSDUHZLWK
RWKHUULVHUVRQWKHVWDLUZD\
&
6WDLUZD\6WULQJHUV
D ,QVSHFWVSLUDOVWDLUZD\VWULQJHUVIRUFRUURVLRQSDLQWIDLOXUHDQGZHOGIDLOXUH,QVSHFW
DWWDFKPHQWRIVWDLUZD\WUHDGVWRVWULQJHU
E ,QVSHFWVWDLUZD\VXSSRUWVWRVKHOOZHOGVDQGUHLQIRUFLQJSDGV
F
&
,QVSHFWVWHHOVXSSRUWDWWDFKPHQWWRFRQFUHWHEDVHIRUFRUURVLRQ
5ROOLQJ/DGGHU
D ,QVSHFWUROOLQJODGGHUVWULQJHUVIRUFRUURVLRQ
E ,GHQWLI\DQGLQVSHFWODGGHUIL[HGUXQJV VTXDUHEDUURXQGEDUDQJOHV IRUZHOG
DWWDFKPHQWWRVWULQJHUVDQGFRUURVLRQSDUWLFXODUO\ZKHUHDQJOHUXQJVDUHZHOGHGWR
VWULQJHUV
F
&KHFNIRUZHDUDQGFRUURVLRQZKHUHUROOLQJODGGHUDWWDFKHVWRJDJLQJSODWIRUP
G ,QVSHFWSLYRWEDUIRUZHDUDQGVHFXUHQHVV
H ,QVSHFWRSHUDWLRQRIVHOIOHYHOLQJVWDLUZD\WUHDGV
I
,QVSHFWIRUFRUURVLRQDQGZHDURQPRYLQJSDUWV
J ,QVSHFWUROOLQJODGGHUZKHHOVIRUIUHHGRPRIPRYHPHQWIODWVSRWVDQGZHDURQD[OH
K ,QVSHFWDOLJQPHQWRIUROOLQJODGGHUZLWKURRIUDFN
L
,QVSHFWWRSVXUIDFHRIUROOLQJODGGHUWUDFNIRUZHDUE\ZKHHOVWRDVVXUHDWOHDVWLQ
RIXQZRUQWUDFN WUDFNORQJHQRXJK M
,QVSHFWUROOLQJODGGHUWUDFNZHOGVIRUFRUURVLRQ
N
,QVSHFWWUDFNVXSSRUWVRQURRIIRUUHLQIRUFLQJSDGVVHDOZHOGHGWRGHFNSODWH
O
&KHFNE\GLPHQVLRQLQJWKHPD[LPXPDQJOHRIWKHUROOLQJODGGHUZKHQWKHURRILVRQ
ORZOHJV
0D[DQJOHBBBBBBBBBBBB P ,IUROOLQJODGGHUWUDFNH[WHQGVWRZLWKLQIWRIWKHHGJHRIWKHURRIRQWKHIDUVLGHFKHFN
IRUDKDQGUDLORQWKH WRSRIWKHVKHOORQWKDWVLGH
127(6
&RPSOHWHG
√
&RPPHQWV
$QQH['
QRUPDWLYH
$XWKRUL]HG,QVSHFWRU&HUWLILFDWLRQ
' ([DPLQDWLRQ
$ZULWWHQH[DPLQDWLRQWRFHUWLI\DQDXWKRUL]HGLQVSHFWRUZLWKLQWKHVFRSHRI$3,VKDOOEHDGPLQLVWHUHGE\DWKLUGSDUW\
GHVLJQDWHGE\$3,7KHH[DPLQDWLRQVKDOOEHEDVHGRQWKHFXUUHQW$3,ERG\RINQRZOHGJHDVSXEOLVKHGE\$3,
' &HUWLILFDWLRQ
' $Q$3,DXWKRUL]HGLQVSHFWRUFHUWLILFDWHZLOOEHLVVXHGZKHQDQDSSOLFDQWKDVVXFFHVVIXOO\SDVVHGWKH$3,
FHUWLILFDWLRQH[DPLQDWLRQDQGVDWLVILHVWKHFULWHULDIRUHGXFDWLRQDQGH[SHULHQFH(GXFDWLRQDQGH[SHULHQFHZKHQ
FRPELQHGVKDOOEHHTXDOWRDWOHDVWRQHRIWKHIROORZLQJ
D $ EDFKHORU RI VFLHQFH GHJUHH LQ HQJLQHHULQJ RU WHFKQRORJ\ SOXV RQH \HDU RI H[SHULHQFH LQ VXSHUYLVLRQ RU
SHUIRUPDQFHRILQVSHFWLRQDFWLYLWLHVDVGHVFULEHGLQ$3,
E $ WZR\HDU GHJUHH RU FHUWLILFDWH LQ HQJLQHHULQJ RU WHFKQRORJ\ SOXV WZR \HDUV RI H[SHULHQFH LQ WKH GHVLJQ
FRQVWUXFWLRQ UHSDLU LQVSHFWLRQ RU RSHUDWLRQ RI DERYHJURXQG VWRUDJH WDQNV RI ZKLFK RQH \HDU PXVW EH LQ
VXSHUYLVLRQRUSHUIRUPDQFHRILQVSHFWLRQDFWLYLWLHVDVGHVFULEHGLQ$3,
F $KLJKVFKRROGLSORPDRUHTXLYDOHQWSOXVWKUHH\HDUVRIH[SHULHQFHLQWKHGHVLJQFRQVWUXFWLRQUHSDLULQVSHFWLRQ
RURSHUDWLRQRIDERYHJURXQGVWRUDJHWDQNVRIZKLFKRQH\HDUPXVWEHLQVXSHUYLVLRQRUSHUIRUPDQFHRILQVSHFWLRQ
DFWLYLWLHVDVGHVFULEHGLQ$3,
G $PLQLPXPRIILYH\HDUVRIH[SHULHQFHLQWKHGHVLJQFRQVWUXFWLRQUHSDLULQVSHFWLRQRURSHUDWLRQRIDERYHJURXQG
VWRUDJHWDQNVRIZKLFKRQH\HDUPXVWEHLQVXSHUYLVLRQRUSHUIRUPDQFHRILQVSHFWLRQDFWLYLWLHVDVGHVFULEHGLQ
$3, ' $Q$3,FHUWLILFDWHIRUDQDXWKRUL]HGLQVSHFWRULVYDOLGIRUWKUHH\HDUVIURPLWVGDWHRILVVXDQFH
' $Q$3,DXWKRUL]HGLQVSHFWRUFHUWLILFDWHLVYDOLGLQDOOMXULVGLFWLRQVDQGDQ\RWKHUORFDWLRQWKDWDFFHSWVRU
RWKHUZLVHGRHVQRWSURKLELWWKHXVHRI$3,
' &HUWLILFDWLRQ$JHQF\
$3,VKDOOEHWKHFHUWLI\LQJDJHQF\
' 5HWURDFWLYLW\
7KHFHUWLILFDWLRQUHTXLUHPHQWVRI$3,VKDOOQRWEHUHWURDFWLYHRULQWHUSUHWHGDVDSSO\LQJEHIRUHPRQWKVDIWHU
WKHGDWHRISXEOLFDWLRQRIWKLVHGLWLRQRUDGGHQGXPRI$3,7KHUHFHUWLILFDWLRQUHTXLUHPHQWVRI'VKDOOQRWEH
UHWURDFWLYHRULQWHUSUHWHGDVDSSO\LQJEHIRUHWKUHH\HDUVDIWHUWKHGDWHRISXEOLFDWLRQRIWKLVHGLWLRQRUDGGHQGXPRI
$3,
' 5HFHUWLILFDWLRQ
' 5HFHUWLILFDWLRQ LV UHTXLUHG WKUHH \HDUV IURP WKH GDWH RI LVVXDQFH RI WKH $3, DXWKRUL]HG LQVSHFWRU
FHUWLILFDWH5HFHUWLILFDWLRQE\ZULWWHQH[DPLQDWLRQZLOOEHUHTXLUHGIRUDXWKRUL]HGLQVSHFWRUVZKRKDYHQRWEHHQDFWLYHO\
HQJDJHGDVDXWKRUL]HGLQVSHFWRUVZLWKLQWKHPRVWUHFHQWWKUHH\HDUFHUWLILFDWLRQSHULRG5HFHUWLILFDWLRQH[DPVZLOOEH
LQDFFRUGDQFHZLWKDOORIWKHSURYLVLRQVFRQWDLQHGLQ$3,
'
'
$3,67$1'$5'
' $FWLYHO\HQJDJHGDVDQDXWKRUL]HGLQVSHFWRUVKDOOEHGHILQHGDVRQHRIWKHIROORZLQJSURYLVLRQV
D D PLQLPXP RI RI WKH WLPH VSHQW SHUIRUPLQJ LQVSHFWLRQ DFWLYLWLHV RU VXSHUYLVLRQ RI LQVSHFWLRQ DFWLYLWLHV RU
HQJLQHHULQJVXSSRUWRILQVSHFWLRQDFWLYLWLHVDVGHVFULEHGLQ$3,RYHUWKHPRVWUHFHQWWKUHH\HDUFHUWLILFDWLRQ
SHULRG
E SHUIRUPDQFH RI LQVSHFWLRQ DFWLYLWLHV RU VXSHUYLVLRQ RI LQVSHFWLRQ DFWLYLWLHV RU HQJLQHHULQJ VXSSRUW RI LQVSHFWLRQ
DFWLYLWLHVRQDERYHJURXQGVWRUDJHWDQNVDVGHVFULEHGLQ$3,RYHUWKHPRVWUHFHQWWKUHH\HDUFHUWLILFDWLRQ
SHULRG
127( ,QVSHFWLRQDFWLYLWLHVFRPPRQWRRWKHU$3,LQVSHFWLRQGRFXPHQWV 1'(UHFRUGNHHSLQJUHYLHZRIZHOGLQJGRFXPHQWV
HWF PD\EHFRQVLGHUHGKHUH
' 2QFHHYHU\RWKHUUHFHUWLILFDWLRQSHULRG HYHU\VL[\HDUV LQVSHFWRUVDFWLYHO\HQJDJHGDVDQDXWKRUL]HGLQVSHFWRU
VKDOOGHPRQVWUDWHNQRZOHGJHRIUHYLVLRQVWR$3,WKDWZHUHLQVWLWXWHGGXULQJWKHSUHYLRXVVL[\HDUV7KLVUHTXLUHPHQW
VKDOOEHHIIHFWLYHVL[\HDUVIURPWKHLQVSHFWRU¶VLQLWLDOFHUWLILFDWLRQGDWH,QVSHFWRUVZKRKDYHQRWEHHQDFWLYHO\HQJDJHG
DVDQDXWKRUL]HGLQVSHFWRUZLWKLQWKHPRVWUHFHQWWKUHH\HDUSHULRGVKDOOUHFHUWLI\DVUHTXLUHGLQ'
$QQH[(
,QWHQWLRQDOO\/HIW%ODQN
(
$QQH[)
QRUPDWLYH
1'(5HTXLUHPHQWV6XPPDU\
7DEOH)²1'(5HTXLUHPHQWV6XPPDU\
3URFHVV
:HOGV5HTXLULQJ,QVSHFWLQJ
5HIHUHQFH6HFWLRQ
9(
&DYLWLHVIURPUHPRYDORIUHSDGV
$3,
9(
&RPSOHWHGZHOGVRIVWUHVVUHOLHYHGDVVHPEOLHVDIWHUVWUHVVUHOLHIEXWEHIRUH
K\GURVWDWLFWHVWLQJ
$3,
9(
$OOILOOHWZHOGVDQGFRPSOHWHGUHSDLUVRIILOOHWZHOGV
$3,DQG$3,
9(
&RPSOHWHGZHOGVRIQHZSHUPDQHQWDWWDFKPHQWVDQGDUHDVRIUHPRYHGWHPSRUDU\
DWWDFKPHQWV
$3,
9(
1HZVKHOOSODWHWRVKHOOSODWHZHOGV
$3,
9(
7DFNZHOGVOHIWLQSODFH
$3,
9(
%RWWRPSODWHDQGDOOZHOGVLQFOXGLQJWKHZHOGDWWDFKLQJDSDWFKSODWHWRWKHERWWRP
IRUQHZERWWRPSODWHV
$3,
9(
5RRWDQGILQDOZHOGSDVVRISDWFKSODWHWRERWWRPLQWKHFULWLFDO]RQH
$3,
9(
$UHDVRIDERWWRPSODWHUHSDLUHGE\ZHOGLQJ
$3,
9(
$UHDVRIDVKHOOSODWHWREHUHSDLUHGE\ZHOGLQJ
$3,
9(
&DYLWLHVIURPUHPRYDORIZHOGGHIHFWV
$3,
9(
$QQXODUSODWHEXWWZHOGVURRWSDVVDQGILQDOSDVV
$3,E
9(
5HSDLUHGDUHDVRIWKHVKHOOWRERWWRPZHOG
$3,
07RU37
&DYLWLHVIURPUHPRYLQJH[LVWLQJUHLQIRUFLQJSDGZHOGV
$3,
07RU37
1HZZHOGVRIQR]]OHQHFNWRVKHOOQR]]OHQHFNWRUHSDGDQGUHSDGWRVKHOO
$3,
07RU37
&RPSOHWHGZHOGVRIVWUHVVUHOLHYHGDVVHPEOLHVDIWHUVWUHVVUHOLHIEHIRUHK\GURVWDWLF
WHVWLQJ
$3,
07RU37
&DYLWLHVIURPUHPRYDORIZHOGGHIHFWV
$3,
07RU37
)RU$3,*URXS,9,9$9DQG9,PDWHULDOV&RPSOHWHGZHOGVRIQHZSHUPDQHQW
DWWDFKPHQWVDQGDUHDVRIUHPRYHGWHPSRUDU\DWWDFKPHQWVRQ$3,PDWHULDO
*URXSV,9,9$9RU9, RUDWWKHDSSURYDORIWKHSXUFKDVHUE\OLTXLGSHQHWUDQW
PHWKRG
$3,
07RU37
7KHEDFNJRXJHGVXUIDFHRIWKHURRWSDVVDQGWKHILQDOVXUIDFHRIQHZVKHOOSODWH
ZHOGVZKHUHWKHVKHOOLVWKLFNHUWKDQLQ
$3,
07RU37
([LVWLQJVKHOOWRERWWRPZHOGVWKDWZLOOEHXQGHUDSDWFKSODWHSOXVLQRQHDFKVLGH $3,
07RU37
5RRWDQGILQDOZHOGSDVVRISDWFKSODWHWRERWWRPLQWKHFULWLFDO]RQH
$3,
07RU37
%RWWRPSODWHUHVWRUHGE\ZHOGLQJ
$3,
07RU37
$UHDVRIDVKHOOSODWHUHSDLUHGE\ZHOGLQJ
$3,
07RU37
07RU37UHSDLUVWRWKHDQQXODUSODWHRUERWWRPSODWHVZLWKLQWKHFULWLFDO]RQHDIWHUURRW
$3,E
DQGILQDOSDVV
07RU37
07RU37UHSDLUVWRWKHVKHOOWRERWWRPZHOGVEHIRUHDQGDIWHUWKHURRWSDVVDQGDIWHU
$3,
WKHILQDOSDVV
07RU37
7KHEDFNJRXJHGVXUIDFHRIWKHURRWSDVVRIIXOOSHQHWUDWLRQQR]]OHQHFNWRVKHOODQG
UHSDGZHOGVDVUHTXLUHGE\$3,VSHFLILFK\GURVWDWLFWHVWH[HPSWLRQ
$3,
UHTXLUHPHQW
)
)
$3,67$1'$5'
7DEOH)²1'(5HTXLUHPHQWV6XPPDU\ &RQWLQXHG
3URFHVV
:HOGV5HTXLULQJ,QVSHFWLQJ
5HIHUHQFH6HFWLRQ
07
0DJQHWLFSDUWLFOHH[DPLQDWLRQDORQHLVUHTXLUHGIRUDUFJRXJHGZHOGUHPRYDODUHDVRI
$3,
WKHERWWRPWRVKHOOZHOGVZKHQUHPRYLQJDERWWRP
07
7KHPDJQHWLFSDUWLFOHH[DPLQDWLRQDFFHSWDQFHVWDQGDUGLV$60(6HFWLRQ9$UWLFOH $3,
37
7KHOLTXLGSHQHWUDQWH[DPLQDWLRQDFFHSWDQFHVWDQGDUGVDUH$60(6HFWLRQ9
$UWLFOH
$3,
87
6KHOODUHDVRYHUZKLFKODSSDWFKSODWHVDUHWREHZHOGHG
$3,
87
6KHOODUHDVRYHUZKLFKQHZUHLQIRUFLQJRUKRWWDSQR]]OHVDUHWREHZHOGHG
$3,
87
&RPSOHWHGUHSDLUVRIEXWWZHOGVXQOHVVUDGLRJUDSKHG
$3,
87
7KHIXOOSHQHWUDWLRQQR]]OHQHFNWRVKHOODQGUHSDGZHOGVDUHUHTXLUHGE\$3,
VSHFLILFK\GURVWDWLFWHVWH[HPSWLRQUHTXLUHPHQW
$3,
87
5HSDLUVWRDQQXODUSODWHEXWWZHOGVDIWHUILQDOSDVV
$3,E
9%
1HZVKHOOWRERWWRPZHOGVXQOHVVGLHVHOWHVWHG
$3,
9%
1HZERWWRPZHOGVXQOHVVWUDFHUJDVWHVWHG
$3,
9%
1HZURRISODWHZHOGVIRUWDQNVGHVLJQHGWREHJDVWLJKW
$3,
9%
3RWHQWLDOERWWRPSODWHOHDNSDWKV
$3,
9%
3DWFKSODWHVZHOGHGRQWKHERWWRP
$3,DQG
9%
%RWWRPSODWHUHVWRUHGE\ZHOGLQJ
$3,
7UDFHU*DV
5HTXLUHGIRUQHZERWWRPZHOGVXQOHVVYDFXXPER[WHVWHG
$3,
3HQ2LO
7KHILUVWSDVVRIQHZVKHOOWRERWWRPZHOGVDQGWKHILQDOQHZVKHOOWRERWWRPZHOG
XQOHVVWKHILQDOZHOGLVYDFXXPER[WHVWHG
$3,
3HQ2LO
)ORDWLQJURRIGHFNVHDPVDQGRWKHUMRLQWVUHTXLUHGWREHOLTXLGWLJKWRUYDSRUWLJKW
$3,+DQG&
$LU7HVW
5HSDGWRVKHOOUHSDGWRQR]]OHDQGQR]]OHWRVKHOOZHOGVRIQHZRUDOWHUHGVKHOO
QR]]OHV
$3,
$LU7HVW
,QLWLDOSDVVRIWKHVKHOOWRERWWRPZHOGVDQGLQVLGHDQGRXWVLGHRIWKHVKHOOLIWKHZHOG
$3,
LVQRWWHVWHGE\YDFXXPER[RUSHQHWUDWLQJRLO
57
%XWWZHOGVIRULQVHUWSODWHVDQGWKLFNHQHGLQVHUWSODWHVFRQWDLQLQJSHQHWUDWLRQ V VKDOO
$3,
EHIXOO\UDGLRJUDSKHG
57
:HOGUHSDLUVWREXWWZHOGVXQOHVVXOWUDVRQLFDOO\H[DPLQHG
$3,
57
9HUWLFDODQGKRUL]RQWDOMRLQWVDQGMXQFWLRQVRIQHZVKHOOSODWHVZHOGHGWRQHZVKHOO
SODWHVDQGQHZSODWHVZHOGHGWRH[LVWLQJSODWHV7KLVVHFWLRQFRYHUVVKHOO
UHSODFHPHQWSODWHVDQGGRRUVKHHWV
$3,
57
7DQNVKHOOEXWWZHOGVRQUHFRQVWUXFWHGWDQNV
$3,
57
1HZDQQXODUSODWHMRLQWV
$3,
57
9HUWLFDODQGKRUL]RQWDOVKHOOMRLQWVDVUHTXLUHGE\$3,VSHFLILF
K\GURVWDWLFWHVWH[HPSWLRQUHTXLUHPHQWV
$3,
'HILQLWLRQV
07 0DJQHWLF3DUWLFOH
3HQ2LO 3HQHWUDWLQJ2LO7HVWLQJ
37 /LTXLG3HQHWUDQW([DPLQDWLRQ
57 5DGLRJUDSKLF([DPLQDWLRQ
87 8OWUDVRQLF([DPLQDWLRQ
9% 9DFXXP%R[7HVWLQJ
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
)
9( 9LVXDO([DPLQDWLRQ
$FFHSWDQFH6WDQGDUGV
$LU7HVW1RQH
3HQ2LO1RQH
0737$60(6HFWLRQ9,,,$SSHQGL[ SDUDJUDSKV
57$60(6HFWLRQ9,,, SDUDJUDSK8: E
7UDFHU*DV1RQH
8($3,6HFWLRQ
9%1RQH
9($3,6HFWLRQ
([DPLQHU4XDOLILFDWLRQV
$LU7HVW1RQH
3HQ2LO1RQH
0737$3,6HFWLRQ
57$6176177&$/HYHO,,RU,,,/HYHO,SHUVRQQHOPD\EHXVHGXQGHUWKHVXSHUYLVLRQRI
/HYHO,,RU/HYHO,,,SHUVRQQHOZLWKDZULWWHQSURFHGXUHLQDFFRUGDQFHZLWK$60(6HFWLRQ9
$UWLFOH
7UDFHU*DV1RQH
8($6176177&$/HYHO,,RU,,,/HYHO,SHUVRQQHOPD\EHXVHGXQGHUWKHVXSHUYLVLRQRI
/HYHO,,RU/HYHO,,,SHUVRQQHOZLWKDZULWWHQSURFHGXUHLQDFFRUGDQFHZLWK$60(6HFWLRQ9
$UWLFOH
9%$3,6HFWLRQ
9($3,6HFWLRQ
3URFHGXUH5HTXLUHPHQWV
$LU7HVW$3,6HFWLRQ
3HQ2LO1RQH
0737$60(6HFWLRQ9
5($60(6HFWLRQ9$UWLFOH
7UDFHU*DV$3,6HFWLRQ
8($60(6HFWLRQ9
9%$3,6HFWLRQ
9(1RQH
$QQH[*
LQIRUPDWLYH
4XDOLILFDWLRQRI7DQN%RWWRP([DPLQDWLRQ3URFHGXUHVDQG3HUVRQQHO
* ,QWURGXFWLRQ
* 7KLV DQQH[ SURYLGHV JXLGDQFH IRU TXDOLI\LQJ ERWK WDQN ERWWRP H[DPLQDWLRQ SURFHGXUHV DQG LQGLYLGXDOV WKDW
SHUIRUPWDQNERWWRPH[DPLQDWLRQV2ZQHURSHUDWRUVPD\HOHFWWRHLWKHUDSSO\WKLVDQQH[DVZULWWHQRUPRGLI\LWWRPHHW
WKHLURZQDSSOLFDWLRQVDQGQHHGV7DQNERWWRPH[DPLQDWLRQVDUHDQLPSRUWDQWIDFWRULQSURYLGLQJWKHRZQHURSHUDWRU
LQFUHDVHGDVVXUDQFHRIWDQNLQWHJULW\$VDUHVXOWLWLVLPSRUWDQWWKDWTXDOLILHGH[DPLQDWLRQSURFHGXUHVDQGSHUVRQQHO
DUHXVHGLQWKHVHH[DPLQDWLRQV6SHFLILFDJUHHPHQWVDQGUHTXLUHPHQWVIRUTXDOLILFDWLRQRIWDQNERWWRPH[DPLQDWLRQ
SURFHGXUHV DQG WDQN ERWWRP H[DPLQHUV VKRXOG EH HVWDEOLVKHG EHWZHHQ WKH RZQHURSHUDWRU DQG WKH DXWKRUL]HG
LQVSHFWLRQDJHQF\
* 7KHUHKDYHEHHQPDQ\1'(WRROVGHYHORSHGIRUH[DPLQLQJWDQNERWWRPV0RVWRIWKHVHWRROVDUHFRPSOH[
DQGUHTXLUHWKHRSHUDWRUWRKDYHDKLJKOHYHORINQRZOHGJHDQGVNLOO7KHHIIHFWLYHQHVVRIWKHVHH[DPLQDWLRQVPD\
YDU\JUHDWO\GHSHQGLQJRQWKHHTXLSPHQWXVHGWKHH[DPLQDWLRQSURFHGXUHDQGWKHVNLOORIWKHH[DPLQHU
2IWHQWKHRZQHURSHUDWRUZLOOQRWKDYHWKHDELOLW\WRHDVLO\GHWHUPLQHLIWKHWDQNERWWRPH[DPLQDWLRQKDVEHHQHIIHFWLYH
LQDVVHVVLQJWKHDFWXDOFRQGLWLRQRIWKHWDQNERWWRP7KHUHTXLUHPHQWVLQWKLVDQQH[ZLOOSURYLGHWKHRZQHURSHUDWRU
DGGLWLRQDODVVXUDQFHWKDWWKHWDQNERWWRPH[DPLQDWLRQZLOOILQGVLJQLILFDQWPHWDOORVV
* 'HILQLWLRQV
*
DXWKRUL]HGLQVSHFWLRQDJHQF\
2UJDQL]DWLRQVWKDWHPSOR\DQDERYHJURXQGVWRUDJHWDQNLQVSHFWRUFHUWLILHGE\$3, VHH *
ERWWRPVFDQ
7KHXVHRIHTXLSPHQWRYHUODUJHSRUWLRQVRIWKHWDQNERWWRPWRGHWHFWFRUURVLRQLQDWDQNERWWRP2QHFRPPRQW\SH
RIERWWRPVFDQQLQJHTXLSPHQWLVWKHPDJQHWLFIOX[OHDNDJH 0)/ VFDQQHU
*
HVVHQWLDOYDULDEOHV
9DULDEOHVLQWKHSURFHGXUHWKDWFDQQRWEHFKDQJHGZLWKRXWWKHSURFHGXUHDQGVFDQQLQJRSHUDWRUVEHLQJUHTXDOLILHG
*
H[DPLQHUV
6FDQQLQJRSHUDWRUVDQG1'(WHFKQLFLDQVZKRSURYHXSERWWRPLQGLFDWLRQV
*
QRQHVVHQWLDOYDULDEOHV
9DULDEOHVLQWKHSURFHGXUHWKDWFDQEHFKDQJHGZLWKRXWKDYLQJWRUHTXDOLI\WKHSURFHGXUHDQGRUVFDQQLQJRSHUDWRUV
*
TXDOLILFDWLRQWHVW
7KHGHPRQVWUDWLRQWHVWWKDWLVXVHGWRSURYHWKDWDSURFHGXUHRUH[DPLQHUFDQVXFFHVVIXOO\ILQGDQGSURYHXSWDQN
ERWWRPPHWDOORVV
*
*
$3,67$1'$5'
*
VFDQQLQJRSHUDWRU
RSHUDWRU
7KHLQGLYLGXDOWKDWRSHUDWHVERWWRPVFDQQLQJHTXLSPHQW
*
VL]LQJ
SURYHXS
7KHDFWLYLW\WKDWLVXVHGWRDFFXUDWHO\GHWHUPLQHWKHUHPDLQLQJERWWRPWKLFNQHVVLQDUHDVZKHUHLQGLFDWLRQVDUHIRXQG
E\WKHERWWRPVFDQQLQJHTXLSPHQW7KLVLVRIWHQDFFRPSOLVKHGXVLQJWKH87PHWKRG
*
WDQNERWWRPH[DPLQDWLRQ
7KHH[DPLQDWLRQRIDWDQNERWWRPXVLQJVSHFLDOHTXLSPHQWWRGHWHUPLQHWKHUHPDLQLQJWKLFNQHVVRIWKHWDQNERWWRP,W
LQFOXGHVERWKWKHGHWHFWLRQDQGSURYHXSRIWKHLQGLFDWLRQV,WGRHVQRWLQFOXGHWKHYLVXDOH[DPLQDWLRQWKDWLVLQFOXGHG
LQWKHLQWHUQDOLQVSHFWLRQ
*
WDQNERWWRPH[DPLQDWLRQSURFHGXUH
7%3
$ TXDOLILHG ZULWWHQ SURFHGXUH WKDW DGGUHVVHV WKH HVVHQWLDO DQG QRQHVVHQWLDO YDULDEOHV IRU WKH WDQN ERWWRP
H[DPLQDWLRQ 7KH SURFHGXUH FDQ LQFOXGH PXOWLSOH PHWKRGV DQG WRROV LH ERWWRP VFDQQHU KDQG VFDQQHU DQG 87
SURYHXS
*
WDQNERWWRPH[DPLQHUTXDOLILFDWLRQUHFRUG
7%(4
$UHFRUGRIWKHTXDOLILFDWLRQWHVWIRUDVSHFLILFVFDQQLQJRSHUDWRU7KLVUHFRUGPXVWFRQWDLQWKHGDWDIRUDOOHVVHQWLDO
YDULDEOHVDQGWKHUHVXOWVRIWKHTXDOLILFDWLRQWHVW
*
WDQNERWWRPSURFHGXUHTXDOLILFDWLRQUHFRUG
7%34
$UHFRUGRIWKHTXDOLILFDWLRQWHVWIRUDWDQNERWWRPH[DPLQDWLRQSURFHGXUH7KLVUHFRUGPXVWFRQWDLQWKHGDWDIRUDOO
HVVHQWLDOYDULDEOHVDQGWKHUHVXOWVRIWKHTXDOLILFDWLRQWHVW
*
YDULDEOHVRUSURFHGXUHYDULDEOHV
7KHVSHFLILFGDWDLQDSURFHGXUHWKDWSURYLGHVGLUHFWLRQDQGOLPLWDWLRQVWRWKHVFDQQLQJRSHUDWRU([DPSOHVLQFOXGH
SODWHWKLFNQHVVRYHUODSRIDGMDFHQWERWWRPVFDQVVFDQQLQJVSHHGHTXLSPHQWVHWWLQJVHWF
* 7DQN%RWWRP([DPLQDWLRQ3URFHGXUHV
* (DFK DXWKRUL]HG LQVSHFWLRQ DJHQF\ SHUIRUPLQJ WDQN ERWWRP H[DPLQDWLRQV LV UHVSRQVLEOH WR KDYH DQG XVH
7%3V 7KHVH SURFHGXUHV SURYLGH GLUHFWLRQ IRU H[DPLQHUV SHUIRUPLQJ WDQN ERWWRP H[DPLQDWLRQV$ SURFHGXUH DOVR
DOORZV WKH RZQHURSHUDWRU RU DXWKRUL]HG LQVSHFWRU WR YHULI\ ZKHWKHU WKH H[DPLQHUV DUH FRUUHFWO\ SHUIRUPLQJ WKH
H[DPLQDWLRQV
* 7KHDXWKRUL]HGLQVSHFWLRQDJHQF\WKDWSHUIRUPVWKHWDQNERWWRPH[DPLQDWLRQVVKRXOGGHYHORSWKH7%3V
* (DFK 7%3 VKDOO DGGUHVV HVVHQWLDO DQG QRQHVVHQWLDO YDULDEOHV 6HFWLRQ * SURYLGHV JXLGDQFH IRU
GHWHUPLQLQJ DSSURSULDWH 7%3 HVVHQWLDO DQG QRQHVVHQWLDO YDULDEOHV (DFK SURFHGXUH VKRXOG VSHFLI\ OLPLWV RQ
DSSURSULDWHYDULDEOHVHJSODWHWKLFNQHVVUDQJH
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
*
* 7DQN%RWWRP([DPLQHUV
* ([DPLQHUVQHHGRQO\WREHTXDOLILHGIRUWKHZRUNWKH\GRLQWKHILHOG)RUH[DPSOHVFDQQLQJRSHUDWRUVZKR
RQO\ XVH WKH ERWWRP VFDQQLQJ HTXLSPHQW DQG GR QRW SURYHXS WKH IODZ ZLWK D IROORZXS PHWKRG QHHG RQO\ WR EH
TXDOLILHGIRUWKHVFDQQLQJRSHUDWLRQ
* 7KHSXUSRVHRITXDOLI\LQJWKHWDQNERWWRPH[DPLQHULVWRGHWHUPLQHLIWKHH[DPLQHULVFDSDEOHRIVDWLVIDFWRULO\
XVLQJDTXDOLILHGSURFHGXUHWRGHWHUPLQHWKHFRQGLWLRQRIWKHWDQNERWWRP
* (DFK DXWKRUL]HG LQVSHFWLRQ DJHQF\ LV UHVSRQVLEOH WR WUDLQ WHVW DQG TXDOLI\ WKH VFDQQLQJ RSHUDWRUV DQG
H[DPLQHUVWKH\HPSOR\XVLQJIROORZXSWHFKQLTXHV4XDOLILFDWLRQVJDLQHGWKURXJKRQHDXWKRUL]HGLQVSHFWLRQDJHQF\
DUHQRWQHFHVVDULO\YDOLGIRUDQ\RWKHUDXWKRUL]HGLQVSHFWLRQDJHQF\>VHH*DQG*I @
* 7KH DXWKRUL]HG LQVSHFWLRQ DJHQF\ LV UHVSRQVLEOH IRU WUDLQLQJ HDFK VFDQQLQJ RSHUDWRU WKH\ HPSOR\ (DFK
VFDQQLQJRSHUDWRUVKRXOGUHFHLYHDPLQLPXPRIKRXUVRIWUDLQLQJ7KLVWUDLQLQJVKRXOGLQFOXGH
D LQVWUXFWLRQRQWKH1'(SULQFLSOHVPHWKRGVXVHGE\WKHERWWRPVFDQQHUOLPLWDWLRQVDQGDSSOLFDWLRQRIWKHVSHFLILF
VFDQQLQJ HTXLSPHQW DQG SURFHGXUH VFDQQLQJ HTXLSPHQW FDOLEUDWLRQ DQG RSHUDWLRQ NH\ VFDQQLQJ HTXLSPHQW
RSHUDWLQJYDULDEOHVHWF
E KDQGVRQRSHUDWLRQRIWKHERWWRPVFDQQHUXQGHUWKHGLUHFWVXSHUYLVLRQRIDTXDOLILHGVFDQQLQJH[DPLQHU
:KHQ KLULQJ H[SHULHQFHG H[DPLQHUV WKH DXWKRUL]HG LQVSHFWLRQ DJHQF\ VKRXOG YHULI\ DQG GRFXPHQW SUHYLRXV
H[DPLQHU WUDLQLQJ DQG SURYLGH DQ\ DGGLWLRQDO WUDLQLQJ LI QHFHVVDU\ ([SHULHQFHG H[DPLQHUV VKRXOG EH SURYLGHG
WUDLQLQJUHJDUGLQJVSHFLILFSURFHGXUDOUHTXLUHPHQWVDQGWHVWHTXLSPHQWWREHXWLOL]HGE\WKHQHZHPSOR\HU
* 7KHDXWKRUL]HGLQVSHFWLRQDJHQF\LVUHVSRQVLEOHIRUWHVWLQJHDFKVFDQQLQJRSHUDWRUE\ZULWWHQH[DPLQDWLRQ
7KH WHVW TXHVWLRQV VKRXOG EH DSSURSULDWH IRU WKH VFDQQLQJ PHWKRG WR EH XVHG7KH DXWKRUL]HG LQVSHFWLRQ DJHQF\
VKRXOGHVWDEOLVKWKHSDVVLQJVFRUHIRUWKHZULWWHQH[DPLQDWLRQ
* 7KH DXWKRUL]HG LQVSHFWLRQ DJHQF\ LV UHVSRQVLEOH IRU TXDOLI\LQJ DOO H[DPLQHUV WKH\ HPSOR\$OO H[DPLQHUV
VFDQQLQJ RSHUDWRUV DQG H[DPLQHUV SHUIRUPLQJ SURYHXS RQ WKH LQGLFDWLRQV VKDOO EH TXDOLILHG E\ SHUIRUPLQJ DQ
H[DPLQDWLRQ RQ WHVW SODWHV DV VSHFLILHG LQ * 2QO\ WKLUGSDUW\ FRPSDQLHV KDYLQJ QR FRQIOLFW RI LQWHUHVW LQ WDQN
ERWWRPH[DPLQDWLRQDSSOLFDWLRQVRURZQHURSHUDWRUFRPSDQLHVPD\IDFLOLWDWHTXDOLILFDWLRQWHVWV7KHH[DPLQHUVKDOO
EHFRQVLGHUHGTXDOLILHGLIWKHDFFHSWDQFHFULWHULDVSHFLILHGLQ*KDVEHHQPHW
([DPLQHUVSHUIRUPLQJSURYHXSRILQGLFDWLRQVXVLQJXOWUDVRQLFWHVWLQJPHWKRGVVKRXOGEHTXDOLILHGLQDFFRUGDQFH
ZLWK$3,6HFWLRQDQGVXSSOHPHQWDOUHTXLUHPHQWVJLYHQLQWKLVDQQH[
* 'XULQJ WKH TXDOLILFDWLRQ WHVW D7%(4 PXVW EH FRPSOHWHG IRU HDFK H[DPLQHU7KH7%(4 LV D UHFRUG RI WKH
YDULDEOHVXVHGGXULQJWKHTXDOLILFDWLRQWHVW2QWKH7%(4WKHTXDOLI\LQJFRPSDQ\PXVWUHFRUG
D WKHHVVHQWLDOYDULDEOHVIURPWKHTXDOLILFDWLRQWHVW
E WKHTXDOLILFDWLRQWHVWUHVXOWV
F QXPEHURIKRXUVWKHLQGLYLGXDOKDVEHHQWUDLQHG
G WHVWVFRUHIURPWKHZULWWHQWUDLQLQJH[DPLQDWLRQ
7KH 7%(4 VKDOO EH FHUWLILHG VLJQHG DV DFFXUDWH E\ D UHSUHVHQWDWLYH RI WKH DXWKRUL]HG LQVSHFWLRQ DJHQF\ DQG D
UHSUHVHQWDWLYHRIWKHFRPSDQ\IDFLOLWDWLQJWKHWHVW
* 7KH7%(4PD\EHZULWWHQLQDQ\IRUPDWWKDWFRQWDLQVDOOWKHUHTXLUHGLQIRUPDWLRQ
*
$3,67$1'$5'
* 7KH ERWWRPVFDQQLQJ H[DPLQHUV RSHUDWRUV DQGRU 87 H[DPLQHUV VKRXOG EH UHTXDOLILHG ZKHQ DQ\ RI WKH
IROORZLQJDSSO\
D ZKHQWKHH[DPLQHULVQRWTXDOLILHGWRWKH7%3WKDWLVWREHXVHGDWWKHRZQHURSHUDWRUIDFLOLW\
E ZKHQ WKH DXWKRUL]HG LQVSHFWLRQ DJHQF\ FKDQJHV WKH 7%3 DQG WKDW FKDQJH UHTXLUHV WKH SURFHGXUH WR EH UH
TXDOLILHG
F ZKHQWKHRSHUDWRUKDVQRWSHUIRUPHGDWDQNERWWRPVFDQLQVL[PRQWKV
G ZKHQWKHRSHUDWRUKDVQRWXVHGWKHVSHFLILFSURFHGXUH 7%3 IRUPRQWKV
H ZKHQWKHDXWKRUL]HGLQVSHFWLRQDJHQF\KDVUHDVRQWRTXHVWLRQWKHDELOLW\RIWKHH[DPLQHU
I ZKHQDQH[DPLQHUFKDQJHVWRDQHZHPSOR\LQJDXWKRUL]HGLQVSHFWLRQDJHQF\WKDWXVHVSURFHGXUHVZLWKHVVHQWLDO
YDULDEOHVWKDWDUHGLIIHUHQWIURPWKHSUHYLRXVHPSOR\HU¶VSURFHGXUHV
* 4XDOLILFDWLRQ7HVWLQJ
* 4XDOLILFDWLRQ7HVW3ODWHV
* 7KHTXDOLILFDWLRQWHVWZLOOEHSHUIRUPHGRQDVDPSOHWDQNERWWRPZLWKGHVLJQHGIODZV7KHVDPSOHWDQNERWWRP
VKRXOGEHDPLQLPXPRIIWWRSURYLGHVSDFHIRUWKHGHVLJQHGIODZV7KHSODWHPDWHULDOXVHGWRIDEULFDWHVDPSOH
SODWHVPD\EHHLWKHUQHZVWHHORUXVHGVWHHO,WVKRXOGEHQRWHGWKDWWKHUHVXOWVREWDLQHGGXULQJTXDOLILFDWLRQWHVWVPLJKW
QRWEHLQGLFDWLYHRIWKHUHVXOWVRIH[DPLQDWLRQVSHUIRUPHGRQRWKHUSODWHVRIGLIIHULQJTXDOLW\RUSHUPHDELOLW\:KHQXVHG
VWHHOLVXWLOL]HGIRUTXDOLILFDWLRQSXUSRVHVWKHTXDOLILFDWLRQWHVWDFFHSWDQFHVWDQGDUGVUHFRPPHQGHGLQ*PD\QRWEH
DSSURSULDWH7KHRZQHURSHUDWRUVKRXOGHVWDEOLVKLWVRZQDFFHSWDQFHVWDQGDUGVLQVXFKFDVHV
* 7KHPLQLPXPQXPEHUDQGW\SHVRIXQGHUVLGHWHVWSLWVORFDWHGRQWKHWHVWSODWHVDUHGHVFULEHGEHORZ
5HPDLQLQJ%RWWRP
7KLFNQHVV t LQ
0LQLPXP1XPEHU
RI3LWV
ZKHUH
LVQRPLQDOERWWRPWKLFNQHVV
LVWKHUHPDLQLQJERWWRPWKLFNQHVVDWWHVWSODWHIODZV
127( 7HVWSLWVVKRXOGJHQHUDOO\EHKHPLVSKHULFDOKDYLQJDGHSWKWRGLDPHWHUUDWLRRIIURP WR 7HVWSLWVVKRXOG
QRWEHIODWERWWRPKROHVVLQFHH[DPLQHUVPD\LQWHUSUHWWKHVHDVDODPLQDWLRQ$OVRPDFKLQHGFRQLFDOKROHVVKRXOGQRWEH
XVHGVLQFHWKH\DUHGLIILFXOWWRVL]HZLWK87PHWKRGV
7KHRZQHURSHUDWRUPD\FRQVLGHUSODFLQJDGGLWLRQDOIODZVQHDUWKHSODWHHGJHLHOHVVWKDQLQIURPWKHHGJHWR
GHWHUPLQHLIVXFKIODZVFDQEHGHWHFWHGE\DXWKRUL]HGLQVSHFWLRQDJHQF\SURFHGXUHV$Q\IODZVSODFHGFORVHUWKDQ
LQ WR WKH SODWH HGJH VKRXOG EH LQ DGGLWLRQ WR WKRVH VKRZQ DERYH DQG VKRXOG QRW EH LQFOXGHG LQ GHWHUPLQLQJ
TXDOLILFDWLRQ XQOHVV VSHFLILFDOO\ UHTXLUHG E\ DQ RZQHURSHUDWRU DQG VXFK GHIHFWV DUH VWDWHG DV EHLQJ GHWHFWDEOH LQ
DXWKRUL]HGLQVSHFWLRQDJHQF\SURFHGXUHV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
*
* 7KHPLQLPXPQXPEHUDQGW\SHVRISURGXFWVLGHWHVWSLWVORFDWHGRQWKHWHVWSODWHVDUHGHVFULEHGEHORZ
5HPDLQLQJ%RWWRP
7KLFNQHVV t LQ
0LQLPXP1XPEHU
RI3LWV
* 7KHUHVKRXOGDOVREHDWOHDVWRQHDUHDUHSUHVHQWLQJJHQHUDOVRLOVLGHFRUURVLRQ7KLVDUHDVKRXOGEHDWOHDVW
LQ FP DQGKDYHDUHPDLQLQJERWWRPWKLFNQHVVRIDERXW QRPLQDOSODWHWKLFNQHVV * 4XDOLILFDWLRQ7HVW$FFHSWDQFH6WDQGDUGV
* 7KH IROORZLQJ DFFHSWDQFH FULWHULD PXVW EH PHW ZKHQ TXDOLI\LQJ HLWKHU DQ H[DPLQDWLRQ SURFHGXUH RU DQ
H[DPLQHU ,I DOO WKH DFFHSWDQFH FULWHULD DUH PHW WKH SURFHGXUH RU H[DPLQHU VKDOO EH FRQVLGHUHG TXDOLILHG 2ZQHU
RSHUDWRUV PD\ VXEVWLWXWH DOWHUQDWLYH DFFHSWDQFH FULWHULD HLWKHU PRUH RU OHVV FRQVHUYDWLYH EDVHG RQ WKHLU VSHFLILF
QHHGVDQGUHTXLUHPHQWV
* :KHQTXDOLI\LQJHLWKHUDSURFHGXUHRUDVFDQQLQJRSHUDWRUWKHRSHUDWRUPXVWEHDEOHWRGHWHFWWKHIROORZLQJ
IODZV
5HPDLQLQJ%RWWRP
7KLFNQHVV t
LQ
)ODZV7KDW0XVW
EH)RXQG
WR LQ $UHDRIJHQHUDOFRUURVLRQ
WR WR * :KHQTXDOLI\LQJHLWKHUDSURFHGXUHRUDQH[DPLQHUZKRSURYHVXSWKHLQGLFDWLRQVWKHH[DPLQHUPXVWEH
DEOHWRGHWHUPLQHWKHIODZGHSWKDVIROORZV
7\SHRI7DQN%RWWRP
3URYHXS )ODZ'HSWK
1RWFRDWHG
“LQ
7KLQFRDWLQJLQ
“LQ
7KLFNFRDWLQJ!LQ
3HUDJUHHPHQWZLWK
RZQHURSHUDWRU
7KHRZQHURSHUDWRUVKRXOGGHWHUPLQHLIDGGLWLRQDOIODZGLPHQVLRQVPXVWEHDGGUHVVHGLQWKHTXDOLILFDWLRQSURFHVV
*
$3,67$1'$5'
* :KLOHIDOVHFDOOVDOVRUHIHUUHGWRDVRYHUFDOOVWHQGWREHPRUHRIDQH[DPLQDWLRQHIILFLHQF\LVVXHWKDQD
WDQN ERWWRP LQWHJULW\ LVVXH WKH RZQHURSHUDWRU VKRXOG GHWHUPLQH LI WKH\ VKRXOG EH DGGUHVVHG LQ WKH TXDOLILFDWLRQ
SURFHVV
* 4XDOLILFDWLRQ7HVW9DULDEOHV
* (VVHQWLDOYDULDEOHVDUHWKRVHLWHPVWKDWPD\KDYHDVLJQLILFDQWHIIHFWRQWKHTXDOLW\RIWKHH[DPLQDWLRQLI
WKH\DUHFKDQJHGIURPWKRVHXVHGGXULQJWKHTXDOLILFDWLRQWHVW
* 7DEOH*OLVWVVXJJHVWHGLWHPVWKDWPD\EHFRQVLGHUHGDVHVVHQWLDOYDULDEOHVIRUWKHTXDOLILFDWLRQWHVWZKHQ
TXDOLI\LQJHLWKHUDWDQNERWWRPH[DPLQDWLRQSURFHGXUHRUDWDQNERWWRPH[DPLQHU(VVHQWLDOYDULDEOHVPD\EHGLIIHUHQW
IRU GLIIHUHQW W\SHV RI WDQN ERWWRP VFDQQHUV$XWKRUL]HG LQVSHFWLRQ DJHQFLHV DUH UHVSRQVLEOH IRU GHWHUPLQLQJ ZKDW
DGGLWLRQDOYDULDEOHVVKRXOGEHFRQVLGHUHGHVVHQWLDOYDULDEOHVIRUHDFKWDQNERWWRPVFDQQHU
* (VVHQWLDOYDULDEOHVDQGWKHYDOXHVPXVWEHUHFRUGHGRQWKH7%3DQGRQWKH7%(4
* 1RQHVVHQWLDOYDULDEOHVDUHWKRVHLWHPVWKDWZLOOKDYHDOHVVHUHIIHFWRQWKHTXDOLW\RIWKHH[DPLQDWLRQ1RQ
HVVHQWLDOYDULDEOHVPD\EHGLIIHUHQWIRUGLIIHUHQWW\SHVRIWDQNERWWRPVFDQQHUV
7DEOH*²6XJJHVWHG(VVHQWLDO9DULDEOHVIRU4XDOLILFDWLRQ7HVWV
(VVHQWLDO9DULDEOH
8VHG'XULQJ7HVW
4XDOLILHG
6FDQQHU(TXLSPHQW
$VWHVWHG
6DPHDVWHVWHG
3URYHXS(TXLSPHQW
$VWHVWHG
6DPHDVWHVWHG
3URYHXS3URFHGXUH
$VWHVWHG
6DPHDVWHVWHG
3ODWH7KLFNQHVV
&RDWLQJ7KLFNQHVV F
'LVWDQFHIURP6KHOO V
&ULWLFDO(TXLSPHQW6HWWLQJV
7KUHVKROG6HWWLQJV K
&DOLEUDWLRQRU)XQFWLRQDO&KHFN
LQ± ±LQ
1RFRDWLQJXVHG
LQ
LQ FLQ
LQWRLQ
LQ FLQ
LQWRLQ
F!
LQWR F
V
/HVVHURILQRU V
$VWHVWHG
K
$VWHVWHG
3HUPDQXIDFWXUHU
K
6DPHDVWHVWHG
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
*
* 1RQHVVHQWLDOYDULDEOHVPXVWEHOLVWHGRQWKH7%3EXWQHHGQRWEHDGGUHVVHGRQWKH7%34RUWKH7%(4
7KH IROORZLQJ LV D OLVW RI H[DPSOHV RI LWHPV WKDW PLJKW EH FRQVLGHUHG DV QRQHVVHQWLDO YDULDEOHV (TXLSPHQW
PDQXIDFWXUHUV DQG DXWKRUL]HG LQVSHFWLRQ DJHQFLHV DUH UHVSRQVLEOH WR GHWHUPLQH ZKDW DGGLWLRQ IDFWRUV VKRXOG EH
FRQVLGHUHGQRQHVVHQWLDOYDULDEOHVIRUHDFKWDQNERWWRPVFDQQHU
D VFDQQHUVSHHG
E VFDQQLQJSDWWHUQ
F KHLJKWOLPLWDWLRQV
G RYHUODSEHWZHHQVFDQV
H SODWHFOHDQOLQHVV
I QRQFULWLFDOHTXLSPHQWVHWWLQJV
127( 6RPHRIWKHOLVWHGQRQHVVHQWLDOYDULDEOHVPD\DFWXDOO\EHHVVHQWLDOYDULDEOHVIRUVSHFLILFW\SHVRIVFDQQHUV
$QQH[+
LQIRUPDWLYH
6LPLODU6HUYLFH$VVHVVPHQW
7KLVDQQH[LVSURYLGHGDVJXLGDQFHIRUSHUIRUPLQJDVLPLODUVHUYLFHDVVHVVPHQW7KLVDQQH[LVQRWDOOLQFOXVLYHDQGLV
QRWPDQGDWRU\,WLVQRWLQWHQGHGWRSUHYHQWWKHXVHRIRWKHUVLPLODUVHUYLFHDVVHVVPHQWPHWKRGV7KLVDQQH[FRQWDLQV
VDPSOHGDWDVKHHWVLOOXVWUDWLQJLWHPVWKDWVKRXOGEHFRQVLGHUHGZKHQFRQGXFWLQJDVLPLODUVHUYLFHDVVHVVPHQW7KH
GDWDVKHHWIRUPDWIDFLOLWDWHVWKHUHFRUGLQJRIDVVHVVPHQWILQGLQJV
127( 7KH IROORZLQJ H[DPSOHV DUH PHUHO\ H[DPSOHV IRU LOOXVWUDWLRQ SXUSRVHV RQO\ (DFK FRPSDQ\ VKRXOG GHYHORS LWV RZQ
DSSURDFK 7KH\ DUH QRW WR EH FRQVLGHUHG H[FOXVLYH RU H[KDXVWLYH LQ QDWXUH$3, PDNHV QR ZDUUDQWLHV H[SUHVV RU LPSOLHG IRU
UHOLDQFHRQRUDQ\RPLVVLRQVIURPWKHLQIRUPDWLRQFRQWDLQHGLQWKLVGRFXPHQW
127(
:KHUHDSSOLFDEOHDXWKRULWLHVKDYLQJMXULVGLFWLRQVKRXOGEHFRQVXOWHG
+
+
$3,67$1'$5' +
6FRSH
7KLVDQQH[SURYLGHVJXLGDQFHIRUFRQGXFWLQJDVLPLODUVHUYLFHDVVHVVPHQWWRHVWDEOLVKLQVSHFWLRQLQWHUYDOVIRUWDQNV
IRUZKLFKFRUURVLRQUDWHVKDYHQRWEHHQGLUHFWO\PHDVXUHGDVUHIHUHQFHGLQDQG7KLVDQQH[LVLQWHQGHGIRU
XVH E\ DQ DXWKRUL]HG LQVSHFWRU VWRUDJH WDQN HQJLQHHU DQG RWKHU SHUVRQ V KDYLQJ NQRZOHGJH DQG H[SHULHQFH LQ
SHUIRUPLQJVLPLODUVHUYLFHDVVHVVPHQWV
+
6LPLODU6HUYLFH$VVHVVPHQW
6HYHUDOFULWHULDPXVWEHHYDOXDWHGWRGHWHUPLQHZKHWKHUWKHFDQGLGDWHWDQNLVLQVLPLODUVHUYLFHZLWKWKHFRQWUROWDQN
6LPLODUVHUYLFHDVVHVVPHQWUHTXLUHVDVXIILFLHQWDPRXQWRIGDWDFROOHFWLRQDQGDQDO\VLVDQGQHHGVWREHSHUIRUPHGLQD
FRPSUHKHQVLYH DQG WKRURXJK IDVKLRQ LQ DFFRUGDQFH ZLWK DQ HVWDEOLVKHG ULVN PDQDJHPHQW SURJUDP 6LPLODU VHUYLFH
DVVHVVPHQW LV FRQGXFWHG XVLQJ GHVLJQ FRQVWUXFWLRQ RSHUDWLRQ PDLQWHQDQFH DQG LQVSHFWLRQ GDWD 'DWD VKRXOG EH
REWDLQHG E\ XVLQJ GLUHFW DQG LQGLUHFW H[DPLQDWLRQ SURFHGXUHV VXFK DV 07 DQG 87 HYDOXDWLQJ SURGXFW FRUURVLYLW\
PHDVXULQJ &3 OHYHOV GHWHUPLQLQJ VRLO SURSHUWLHV DQG RWKHU IDFWRUV 5HIHU WR WKH ³6LPLODU 6HUYLFH $VVHVVPHQW²
'DWDVKHHW´ ZKLFK SURYLGHV D SODFH WR UHFRUG WKH UHTXLUHG GDWD 'DWD VKRXOG EH FROOHFWHG IRU HDFK RI WKH WDQN
FKDUDFWHULVWLFV OLVWHG RQ WKH GDWDVKHHW IRU ERWK WKH FRQWURO WDQN DQG FDQGLGDWH WDQNV DQG DQ DVVHVVPHQW PDGH WR
GHWHUPLQHLIWKHVHUYLFHVDUHVLPLODU7\SLFDOO\WKHUHZLOOQRWEHDQH[DFWPDWFKRIDOOGDWDRUVRPHRIWKHUHTXLUHGGDWD
ZLOO QRW HYHQ EH NQRZQ :KHQ WKHUH LV QRW DQ H[DFW PDWFK EHWZHHQ RQH RU PRUH FULWHULD DGGLWLRQDO HYDOXDWLRQ LV
QHFHVVDU\WRGHWHUPLQHZKHWKHUWKHWDQNVFDQEHFRQVLGHUHGWREHLQVLPLODUVHUYLFH)LJXUH+LOOXVWUDWHVWKHVWHSVLQ
FRQGXFWLQJDVLPLODUVHUYLFHDVVHVVPHQW7KH³6LPLODU6HUYLFH$VVHVVPHQW²'DWDVKHHW´LVWRIDFLOLWDWHWKHFRPSDULVRQ
RI GDWD IRU WKH WZR WDQNV ,I WKH FULWHULD IRU WKH FRQWURO WDQN DQG FDQGLGDWH WDQN PDWFK WKH FDQGLGDWH WDQN PD\ EH
FRQVLGHUHGLQVLPLODUVHUYLFHDVWKHFRQWUROWDQNIRUWKDWSDUWLFXODUFULWHULRQ
+
$GGLWLRQDO$VVHVVPHQW
:KHQDGGLWLRQDODVVHVVPHQWLVUHTXLUHGEHFDXVHDQLQGLYLGXDOEDVLFFULWHULRQGRHVQRWPDWFKWKHWDEOHUHIHUHQFHV
WKHVHFWLRQGHVFULELQJDGGLWLRQDOIDFWRUVWKDWPXVWEHDVVHVVHG,IWKHDGGLWLRQDOIDFWRUVLQWKHVSHFLILHGUHIHUHQFH
VHFWLRQDUHDVVHVVHGWREHVXIILFLHQWO\VLPLODUWKHWDQNVDUHFRQVLGHUHGLQVLPLODUVHUYLFHIRUWKDWIDFWRU,IDOODGGLWLRQDO
SURYLVLRQVDUHVDWLVILHGWKHWDQNVDUHFRQVLGHUHGLQVLPLODUVHUYLFH$GGLWLRQDODVVHVVPHQW V PXVWEHGRFXPHQWHG
DQGPDLQWDLQHGLQWKHUHFRUGILOHDVSHU
+
t ,I WKH FULWHULD IRU WKH FRQWURO WDQN DQG FDQGLGDWH WDQN GR QRW PDWFK WKH IROORZLQJ
DGGLWLRQDOSURYLVLRQVPXVWEHVDWLVILHGWRFRQVLGHUERWKWDQNVLQVLPLODUVHUYLFH
D WKHGLIIHUHQFHLQDJHVRIWKHWDQNVPXVWEHFRQVLGHUHGLQWKHFRUURVLRQUDWHFDOFXODWLRQVDQG
E DQ\VXEVWDQWLYHGLIIHUHQFHVLQWKHGHVLJQDQGRUFRQVWUXFWLRQVWDQGDUGVWRZKLFKWKHWDQNVZHUHFRQVWUXFWHGPXVW
EHFRQVLGHUHGLQWKHVLPLODUVHUYLFHHYDOXDWLRQ
+
tt
t
,IWKHFULWHULDIRUWKHFRQWUROWDQNDQGFDQGLGDWHWDQNGRQRWPDWFKWKHIROORZLQJDGGLWLRQDO
SURYLVLRQVPXVWEHVDWLVILHGWRFRQVLGHUERWKWDQNVLQVLPLODUVHUYLFH
D WKHERWWRPPDWHULDORIWKHFDQGLGDWHWDQNPXVWKDYHVLPLODUFRUURVLRQUHVLVWDQFHSURSHUWLHVDVWKHERWWRPPDWHULDO
RIWKHFRQWUROWDQN
E WKHFDQGLGDWHWDQNRUERWKWKHFDQGLGDWHDQGWKHFRQWUROWDQNVXWLOL]HDQHIIHFWLYHOLQLQJWRSUHYHQWFRUURVLRQRIWKH
SURGXFWVLGHRIWKHERWWRPDQG
F WKHSRWHQWLDOIRUFRUURVLRQRIWKHVRLOVLGHRIWKHERWWRPLVDVVHVVHGWREHVLPLODUIRUERWKWDQNERWWRPPDWHULDOV
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
+
t
,I WKH FULWHULD IRU WKH FRQWURO WDQN DQG FDQGLGDWH WDQN GR QRW PDWFK WKH IROORZLQJ DGGLWLRQDO
SURYLVLRQVPXVWEHVDWLVILHGWRFRQVLGHUERWKWDQNVLQVLPLODUVHUYLFH
D WKHVKHOOPDWHULDORIWKHFDQGLGDWHWDQNPXVWKDYHVLPLODUFRUURVLRQUHVLVWDQFHSURSHUWLHVDVWKHVKHOOPDWHULDORI
WKHFRQWUROWDQN
E WKHFDQGLGDWHWDQNRUERWKWKHFDQGLGDWHDQGWKHFRQWUROWDQNVXWLOL]HDVXLWDEOHOLQLQJWRSUHYHQWFRUURVLRQRIWKH
SURGXFWVLGHRIWKHVKHOODQG
F WKH FDQGLGDWH WDQN RU ERWK WKH FDQGLGDWH DQG WKH FRQWURO WDQNV XWLOL]H D VXLWDEOH SDLQW RU FRDWLQJ WR SUHYHQW
FRUURVLRQRIWKHH[WHUQDOVLGHRIWKHVKHOO
+
tt
,IWKHFULWHULDIRUWKHFRQWUROWDQNDQGFDQGLGDWHWDQNGRQRWPDWFKWKH
GLIIHUHQFHLQFRUURVLRQDOORZDQFHVKRXOGEHDFFRXQWHGIRULQWKHUHPDLQLQJOLIHDQGLQVSHFWLRQLQWHUYDOFDOFXODWLRQVWR
FRQVLGHUERWKWDQNVLQVLPLODUVHUYLFH
+
tt
,IWKHFULWHULDIRUWKHFRQWUROWDQNDQGFDQGLGDWHWDQNGRQRWPDWFKWKH
GLIIHUHQFHVLQWKHERWWRPOLQLQJV\VWHPVPXVWEHDVVHVVHG7KHSURYLVLRQVRI$3,VKRXOGEHXVHGWRDVVHVVWKH
UHODWLYHFRUURVLRQSURWHFWLRQSURYLGHGE\WKHGLIIHUHQWOLQLQJV\VWHPV
+
t
t t ,I WKH FULWHULD IRU WKH FRQWURO WDQN DQG FDQGLGDWH WDQN GR QRW PDWFK WKH IROORZLQJ
DGGLWLRQDOSURYLVLRQVVKDOODSSO\7KHSURYLVLRQVRI$3,VKRXOGEHXVHGWRDVVHVVWKHUHODWLYHFRUURVLRQSURWHFWLRQ
SURYLGHGE\WKHFDWKRGLFSURWHFWLRQV\VWHPV
D LI WKH FDQGLGDWH WDQN LV SURWHFWHG ZLWK D SURSHUO\ GHVLJQHG DQG IXQFWLRQDO FDWKRGLF SURWHFWLRQ V\VWHP DQG WKH
FRQWURO WDQN LV QRW WKH FDQGLGDWH WDQN PD\ EH FRQVLGHUHG WR EH LQ VLPLODU VHUYLFH ZLWK UHVSHFW WR FDWKRGLF
SURWHFWLRQ
E LI WKH FRQWURO WDQN LV SURWHFWHG ZLWK D SURSHUO\ GHVLJQHG DQG IXQFWLRQDO FDWKRGLF SURWHFWLRQ V\VWHP DQG WKH
FDQGLGDWHWDQNLVQRWWKHFDQGLGDWHWDQNPD\QRWEHFRQVLGHUHGWREHLQVLPLODUVHUYLFHZLWKUHVSHFWWRFDWKRGLF
SURWHFWLRQ
F LIWKHFRQWUROWDQNDQGWKHFDQGLGDWHWDQNDUHSURWHFWHGZLWKSURSHUO\GHVLJQHGDQGIXQFWLRQDOFDWKRGLFSURWHFWLRQ
V\VWHPVWKHWDQNVPD\EHFRQVLGHUHGWREHLQVLPLODUVHUYLFHZLWKUHVSHFWWRFDWKRGLFSURWHFWLRQ
+
tt ,I WKH FDQGLGDWH WDQN DQGRU WKH FRQWURO WDQN KDV PXOWLSOH ERWWRPV WKH VLPLODU VHUYLFH
DVVHVVPHQWRIVRLOVLGHFRUURVLRQVKRXOGEHEDVHGRQWKHPDWHULDOWKDWLVLQFRQWDFWZLWKWKHXQGHUVLGHRIWKHSULPDU\
XSSHU ERWWRPSODWH
+
t
t t t
tt
t $Q\GLIIHUHQFHVLQWKHIROORZLQJIDFWRUVEHWZHHQWKHFRQWURODQG
WKHFDQGLGDWHWDQNPXVWEHDVVHVVHGLQGHWHUPLQLQJZKHWKHUWKHFDQGLGDWHWDQNLVLQVLPLODUVHUYLFHDVWKHFRQWURO
WDQN
D VRLORUPDWHULDOW\SH
E S+
F DONDOLQLW\
G PRLVWXUH
H VDOLQLW\
I UHVLVWLYLW\
+
$3,67$1'$5' J RLOW\SH LIRLOHGVDQGIRXQGDWLRQ K VRLOPDWHULDOFOHDQOLQHVV
L VRLOJUDGDWLRQ
M FKORULGHV
N VXOIDWHV
+
t
t
$Q\ GLIIHUHQFHV LQ WKH IROORZLQJ IDFWRUV EHWZHHQ WKH FRQWURO WDQN DQG WKH FDQGLGDWH
WDQNPXVWEHDVVHVVHGLQGHWHUPLQLQJZKHWKHUWKHFDQGLGDWHWDQNLVLQVLPLODUVHUYLFHDVWKHFRQWUROWDQN
D ORZRQHGD\PHDQWHPSHUDWXUH
E H[SRVXUHWRVDOWDLURURWKHUFRUURVLYHHOHPHQWV
+ t
t
$Q\ GLIIHUHQFHV LQ WKH IROORZLQJ IDFWRUV EHWZHHQ WKH FRQWURO WDQN DQG WKH
FDQGLGDWHWDQNPXVWEHDVVHVVHGLQGHWHUPLQLQJZKHWKHUWKHFDQGLGDWHWDQNLVLQVLPLODUVHUYLFHDVWKHFRQWUROWDQN
D SURGXFWFODVVLILFDWLRQ VHH7DEOH+ E VSHFLILFJUDYLW\RIOLTXLG
F 5HLGYDSRUSUHVVXUHDWq)
G QRUPDORSHUDWLQJWHPSHUDWXUH
H LQHUWJDVEODQNHWLIXVHG
I ZDWHUERWWRPLIXVHG
J VXOIXUFRQWHQW
K OHQJWKRIWLPHLQVHUYLFH
L SURGXFWFRUURVLYLW\
+
t
,I WKH FRQWURO WDQN DQGRU FDQGLGDWH WDQN KDYH SUHYLRXVO\ EHHQ XVHG IRU
GLIIHUHQW VHUYLFHV WKDQ WKH FXUUHQW VHUYLFH WKH VDPH IDFWRUV GHVFULEHG LQ + VKRXOG EH HYDOXDWHG IRU WKH
SUHYLRXVVHUYLFHFRQGLWLRQV
+
t
t 7DEOH + FODVVLILHV D ZLGH YDULHW\ RI OLTXLGV FRPPRQO\ VWRUHG LQ DERYHJURXQG
VWRUDJHWDQNV7KLVWDEOHVHUYHVDVJXLGDQFHLQDVVHVVLQJFXUUHQWRUSUHYLRXVVHUYLFHFRQGLWLRQV
+
t
t
,QDGGLWLRQWRWKHIDFWRUVGLVFXVVHGDERYHWKHIROORZLQJGDWDLIDYDLODEOHIRUWKH
FRQWURO WDQN DQG WKH FDQGLGDWH WDQN VKRXOG EH DVVHVVHG LQ GHWHUPLQLQJ ZKHWKHU WKH FDQGLGDWH WDQN LV LQ VLPLODU
VHUYLFHDVWKHFRQWUROWDQN
D 0)/GDWDIRUWKHWDQNERWWRP
E XOWUDVRQLFWKLFNQHVV 87 PHDVXUHPHQWGDWD
F ILEHURSWLFPRQLWRULQJV\VWHPGDWD
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
G FDWKRGLFSURWHFWLRQPRQLWRULQJWXEHGDWD
H WDQNERWWRPLQWHJULW\WHVWLQJGDWD
I PDLQWHQDQFHSURFHGXUHVLQFOXGLQJIUHTXHQF\DQGPHWKRGVRIWDQNFOHDQLQJ
+
([DPSOHRI5HPDLQLQJ/LIH'HWHUPLQDWLRQ
+
7DQN%RWWRP
)LJXUH + LOOXVWUDWHV RQH PHWKRG RI GHWHUPLQLQJ WKH WLPH LQWHUYDO LQ ZKLFK D WDQN ERWWRP ZLOO UHDFK LWV PLQLPXP
ERWWRP SODWH WKLFNQHVV EH\RQG ZKLFK WKH WDQN VKRXOG EH UHSDLUHG RU UHPRYHG IURP VHUYLFH ,Q WKLV H[DPSOH WKH
RULJLQDOPHWDOWKLFNQHVVZDV LQZKHQWKHWDQNZDVFRQVWUXFWHGLQ7KHPLQLPXPERWWRPSODWHWKLFNQHVVDW
WKHQH[WLQVSHFWLRQLQWHUYDOZDVLQ 6HHDOVR7DEOH $WWKHWLPHRIWKLVHYDOXDWLRQ -XQH WKHWDQN
ZDVLQVRXUFUXGHVHUYLFH3UHYLRXVVHUYLFHLQFOXGHG\HDUVLQVRXUFUXGHVHUYLFH%DVHGRQWKLFNQHVVHVPHDVXUHG
DQGWKHFDOFXODWHGFRUURVLRQUDWHWKHUHPDLQLQJOLIHRUWLPHWRUHDFKWKHPLQLPXPERWWRPSODWHWKLFNQHVVRILQ
LVSURMHFWHGWREHDSSUR[LPDWHO\\HDUVRU-XQH6HHIRUWKHPLQLPXPWKLFNQHVVFDOFXODWLRQIRUD
WDQNERWWRP
+
7DQN6KHOO
)LJXUH+LOOXVWUDWHVRQHPHWKRGRIGHWHUPLQLQJWKHWLPHLQWHUYDOLQZKLFKDWDQNVKHOOFRXUVHZLOOUHDFKLWVOLPLWRI
PHWDOORVVEH\RQGZKLFKWKHWDQNVKRXOGEHUHSDLUHGRUUHPRYHGIURPVHUYLFH,QWKLVH[DPSOHWKHRULJLQDOPHWDO
WKLFNQHVVZDV LQZKHQWKHWDQNZDVFRQVWUXFWHGLQ7KHOLPLWRIPHWDOORVVRIWKHWRSVKHOOFRXUVHZDV
FDOFXODWHGWREHLQ$WWKHWLPHRIWKLVHYDOXDWLRQ 1RYHPEHU WKHWDQNZDVLQVZHHWJDVROLQHVHUYLFH
3UHYLRXVVHUYLFHVLQFOXGHGQHDUO\VHYHQ\HDUVLQVZHHWFUXGHDQGQHDUO\WKUHH\HDUVLQVRXUFUXGHVHUYLFH%DVHG
RQWKLFNQHVVHVPHDVXUHGDWSHULRGLFLQVSHFWLRQVDQGFRUURVLRQUDWHVFDOFXODWHGIURPWKHPWKHUHPDLQLQJOLIHRU
WLPHWRUHDFKWKHPHWDOORVVOLPLWRILQLVSURMHFWHGWREHDSSUR[LPDWHO\IRXU\HDUVRU$XJXVW6HH
IRUWKHPLQLPXPWKLFNQHVVFDOFXODWLRQIRUDQHQWLUHVKHOOFRXUVH
7DEOH+²6LPLODU6HUYLFH3URGXFW&ODVVLILFDWLRQ
&ODVV
'HVFULSWLRQ
([DPSOH
$
/RZVXOIXUOLJKWRLO VXOIXU
1RIXHORLOGLHVHONHURVHQHMHWIXHOJDVROLQH
%
+LJKVXOIXUOLJKWRLO ! VXOIXU
8QILQLVKHGKHDWLQJRLOGLVWLOODWH
&
6ZHHWVXOIXUKHDY\RLO VXOIXU +HDY\JDVRLODQGVZHHWUHVLGXDO
'
6RXUVXOIXUKHDY\RLO
! VXOIXU
6RXUUHVLGXDO
(
6ORSDQGSURFHVVZDWHU
6HHGHVFULSWLRQ
)
)LQLVKHGOXEHRLO
$XWRPRWLYHGLHVHODQGDYLDWLRQRLO
*
6OXGJH
$FLGLFQRQDFLGLF
/LJKWYRODWLOHRLO &ODVV
+
&UXGHRLOV
1RQVWLFN\RLO &ODVV
+HDY\VWLFN\RLO &ODVV
1RQIOXLG KHDY\FUXGHKLJKSDUDIILQ &ODVV
,
$GGLWLYH
*DVROLQHSHUIRUPDQFHDGGLWLYHV
-
6ROYHQW
.HWRQHVDOFRKROWROXHQH[\OHQHJO\FROVJO\FROHWKHUV
.
&KHPLFDOV
3KRVSKRULFVXOIXULFK\GURFKORULFIRUPLFDQGQLWULFDFLGV
127( 7KLV WDEOH LV QRW DOO LQFOXVLYH$GGLWLRQDOO\ WKHUH PD\ EH VLJQLILFDQW YDULDELOLW\ LQ WKH FKHPLFDO FRPSRVLWLRQ RI
SURGXFWVZLWKLQDOLVWHGFODVVLILFDWLRQ
+
$3,67$1'$5' Collect Tank Data for
the Control Tank and the
Candidate Tank
Collect Similar Service
Assessment Using the
Datasheet
Determine if Similar
Service Can be Applied to
the Candidate Tank
Determine the Corrosion
Rates to Apply to the
Candidate Tank
Establish the Next Internal
Inspection Date for
the Candidate Tank
Document the Revised
Internal Inspection Date for
the Candidate Tank
Determine if the Additional Inspection
Data Changes the Inspection Schedule
for the Candidate Tank
As Additional Inspection Data Becomes
Available, Validate the Corrosion Rate
Established for Candidate Tank
)LJXUH
+²6WHSVLQ&RQGXFWLQJ6LPLODU6HUYLFH$VVHVVPHQW
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
METAL THICKNESS, IN INCHES
0
1970
YEAR
Min. Bottom Plate Thickness at Next Inspection (See Table 4.4)
1980
1/16
1/32
Tank New January 21, 1970
3/32
1/8
5/32
3/16
7/32
de
ru
C
r
u
So
First Internal Inspection June 10, 1990
Tank Bottom Repaired to 1/4-in.
1990
de
ru
C
ur
So
2000
Extended
Corrosion
Curve
Limit of metal loss June 10, 2010
2010
)LJXUH
+²([DPSOH&RUURVLRQ5DWH&XUYHVIRU%RWWRPRI6WRUDJH7DQN
1/4
+
$3,67$1'$5' METAL THICKNESS, IN INCHES
0
1990
1/16
1/8
Tank New January 21, 1990
3/16
1/4
5/16
3/8
7/16
Limit of thickness for top course
Sw
eet
Cru
de
First Inspection June 10, 1992
1995
2000
Fourth Inspection November 15, 2002
Gas
olin
e
YEAR
Third Inspection July 20, 1999 - Service Changed
So
ur
Cr
ud
e
Second Inspection December 2, 1996 - Service Changed
2005
Limit of metal loss August 1, 2006
Extended
Corrosion
Curve
2010
)LJXUH
+²([DPSOH&RUURVLRQ5DWH&XUYHVIRU7RS&RXUVHRI6WRUDJH7DQN
1/2
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
SIMILAR SERVICE ASSESSMENT—DATASHEET
CONTROL TANK ID:
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
CANDIDATE TANK ID:
CAPACITY:
BBLS
CAPACITY:
BBLS
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
SECTION 1—TANK BOTTOM (PRODUCT-SIDE) ASSESSMENT
MATCH 3
H.1.1 TANK CHARACTERISTICS
a)
b)
c)
d)
e)
f)
Control Tank 1
Candidate Tank 2
Yes
Control Tank 1
Candidate Tank 2
Yes
Control Tank 1
Candidate Tank 2
Yes
YEAR TANK ERECTED
BOTTOM MATERIAL
CORROSION ALLOWANCE
BOTTOM LINING TYPE
BOTTOM LINING THICKNESS
BOTTOM LINING AGE
MATCH 3
H.1.2 CURRENT SERVICE CONDITIONS
a)
b)
c)
d)
e)
f)
g)
h)
No
CURRENT PRODUCT NAME
PRODUCT CLASS. (TABLE H.1)
SPECIFIC GRAVITY OF PRODUCT
NORMAL OPERATING TEMP.
WATER BOTTOM?
SULFUR CONTENT
TIME IN THIS SERVICE
PRODUCT CORROSIVITY
MATCH 3
H.1.3 PREVIOUS SERVICE CONDITIONS
a)
b)
c)
d)
e)
f)
g)
h)
No
PREVIOUS PRODUCT NAME
PRODUCT CLASS. (TABLE H.1)
SPECIFIC GRAVITY OF PRODUCT
NORMAL OPERATING TEMP.
WATER BOTTOM?
SULFUR CONTENT
TIME IN THIS SERVICE
PRODUCT CORROSIVITY
No
IF NO,
SEE SEC.4
H.2.1.1
H.2.1.2
H.2.1.4
H.2.1.5
H.2.1.5
H.2.1.5
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.1.4 CONCLUSIONS
a) Does this assessment include additional assessment documentation (see H.2.1), YES
or NO
b) Based on the criteria reviewed in this similar service evaluation,
similar service is
OR is NOT
recommended for this tank (check appropriate box)
c) The corrosion rate to be applied to the product side of the tank bottom is: ___________mpy.
COMMENTS:
NOTE THE DATASHEET SHALL BE MAINTAINED IN THE RECORD FILE AS PER 6.8.
ASSESSED BY:
DATE:
APPROVED BY:
DATE:
(tank owner/operator)
NOTE 1
NOTE 2
NOTE 3
NOTE 4
The control tank is the tank for which service conditions and corrosion rates are well known.
The candidate tank is the tank to be compared to the control tank to determine if similar service concepts apply.
“Y” or “Yes” indicates that the candidate tank criterion essentially matches the control tank .
If the candidate tank criterion does not match the control tank criterion, see H.2.1.
+
$3,67$1'$5' SIMILAR SERVICE ASSESSMENT—DATASHEET
CONTROL TANK ID:
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
CANDIDATE TANK ID:
CAPACITY:
BBLS
CAPACITY:
BBLS
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
SECTION 2—TANK BOTTOM (SOIL-SIDE) ASSESSMENT
MATCH 3
H.2.1 TANK CHARACTERISTICS
Control Tank 1
a)
b)
c)
d)
Candidate Tank 2
Yes
No
YEAR TANK ERECTED
BOTTOM MATERIAL
CORROSION ALLOWANCE
DOUBLE BOTTOM
H.2.2 SOIL/MATERIAL IN CONTACT WITH OR AROUND BOTTOM PLATE5
Control Tank 1
a) SOIL TYPE
b) SOIL pH
c) SOIL ALKALINITY
d) SOIL MOISTURE
e) SOIL SALINITY
f) SOIL CONDUCTIVITY
g) OIL TYPE (IF OIL SAND FOUNDATION)
h) SOIL CLEANLINESS
MATCH 3
Candidate Tank
2
Candidate Tank
2
Yes
Candidate Tank 2
Yes
Yes
No
MATCH 3
H.2.3 CURRENT OPERATING CONDITIONS
Control Tank
1
No
a) NORMAL OPERATING TEMP.
b) CATHODIC PROTECTION 5
c) PONDING/WATER
MATCH 3
H.2.4 PREVIOUS OPERATING CONDITIONS
Control Tank 1
a) NORMAL OPERATING TEMP.
5
b) CATHODIC PROTECTION
c) PONDING/WATER
No
IF NO,
SEE SEC. 4
H.2.1.1
H.2.1.2
H.2.1.4
H.2.1.7
IF NO,
SEE SEC. 4
H.2.1.8
H.2.1.8
H.2.1.8
H.2.1.8
H.2.1.8
H.2.1.8
H.2.1.8
H.2.1.8
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.6
H.2.1.8
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.6
H.2.1.8
H.2.5 CONCLUSIONS
a) Does this assessment include additional assessment documentation (see H.2.1), YES
or NO
b) Based on the criteria reviewed in this similar service evaluation,
similar service is
OR is NOT
recommended for this tank (check appropriate box)
c) The corrosion rate to be applied to the soil side of the tank bottom is: ___________mpy.
COMMENTS:
NOTE
THE DATASHEET SHALL BE MAINTAINED IN THE RECORD FILE AS PER 6.8.
ASSESSED BY:
DATE:
APPROVED BY:
DATE:
(tank owner/operator)
NOTE 1 The control tank is the tank for which service conditions and corrosion rates are well known.
NOTE 2 The candidate tank is the tank to be compared to the control tank to determine if similar service concepts apply.
NOTE 3 “Y” or “Yes” indicates that the candidate tank criterion essentially matches the control tank .
NOTE 4 If the candidate tank criterion does not match the control tank criterion, see H.2.1.
NOTE 5 See API 651, Section 5.3.
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
SIMILAR SERVICE ASSESSMENT—DATASHEET
CONTROL TANK ID:
DIAMETER (FT):
LOCATION:
HEIGHT (FT):
CANDIDATE TANK ID:
DIAMETER (FT):
CAPACITY:
BBLS
CAPACITY:
BBLS
LOCATION:
HEIGHT (FT):
SECTION 3—TANK SHELL (PRODUCT-SIDE) ASSESSMENT
H.3.1 TANK CHARACTERISTICS
a)
b)
c)
d)
e)
f)
MATCH
Control Tank
1
Candidate Tank
2
Control Tank
1
Candidate Tank
2
Yes
Control Tank 1
Candidate Tank 2
Yes
Control Tank 1
Candidate Tank 2
Yes
3
Yes
No
YEAR TANK ERECTED
SHELL MATERIAL
CORROSION ALLOWANCE
SHELL LINING TYPE
SHELL LINING THICKNESS
SHELL LINING AGE
H.3.2 AMBIENT CONDITIONS
MATCH
3
No
a) LOW ONE DAY MEAN TEMP.
b) EXPOSURE TO SALT AIR
H.3.3 CURRENT SERVICE CONDITIONS:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
MATCH
No
CURRENT PRODUCT NAME
PRODUCT CLASS. (TABLE H.1)
SPECIFIC GRAVITY OF PRODUCT
REID VAPOR PRESSURE @ 60 oF
NORMAL OPERATING TEMP.
INERT GAS BLANKET?
WATER BOTTOM?
SULFUR CONTENT
TIME IN THIS SERVICE
PRODUCT CORROSIVITY
H.3.4 PREVIOUS SERVICE CONDITIONS
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
3
MATCH
PREVIOUS PRODUCT NAME
PRODUCT CLASS. (TABLE H.1)
SPECIFIC GRAVITY OF PRODUCT
REID VAPOR PRESSURE @ 60 oF
NORMAL OPERATING TEMP.
INERT GAS BLANKET?
WATER BOTTOM?
SULFUR CONTENT
TIME IN THIS SERVICE
PRODUCT CORROSIVITY
H.3.5 CONCLUSIONS
a) Does this assessment include additional assessment documentation (see H.2.1), YES
b) Based on the criteria reviewed in this similar service evaluation,
similar service is
OR is NOT
recommended for this tank (check appropriate box)
c) The corrosion rate to be applied to the product side of the tank shell is: ___________mpy.
COMMENTS:
or NO
3
No
IF NO,
SEE SEC. 4
H.2.1.1
H.2.1.3
H.2.1.4
H.2.1.5
H.2.1.5
H.2.1.5
IF NO,
SEE SEC. 4
H.2.1.9
H.2.1.9
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
H.2.1.10
+
$3,67$1'$5' SIMILAR SERVICE ASSESSMENT—DATASHEET
NOTE
THE DATASHEET SHALL BE MAINTAINED IN THE RECORD FILE AS PER 6.8.
SUBMITTED BY:
DATE:
APPROVED BY:
DATE:
NOTE 1
NOTE 2
NOTE 3
NOTE 4
The control tank is the tank for which service conditions and corrosion rates are well known.
The candidate tank is the tank to be compared to the control tank to determine if similar service concepts apply.
“Y” or “Yes” indicates that the candidate tank criterion essentially matches the control tank .
If the candidate tank criterion does not match the control tank criterion, see H.2.1.
7$1. ,163(&7,215(3$,5$/7(5$7,21$1' 5(&216758&7,21
+
SIMILAR SERVICE ASSESSMENT—DATASHEET
CONTROL TANK ID:
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
CANDIDATE TANK ID:
CAPACITY:
BBLS
CAPACITY:
BBLS
LOCATION:
DIAMETER (FT):
HEIGHT (FT):
SECTION 4—TANK SHELL (EXTERNAL SIDE) ASSESSMENT
MATCH 3
H.4.1 TANK CHARACTERISTICS
a)
b)
c)
d)
e)
f)
g)
h)
i)
Control Tank
1
Candidate Tank
2
Control Tank
1
Candidate Tank
2
Yes
Control Tank 1
Candidate Tank 2
Yes
1
2
Yes
No
YEAR TANK ERECTED
SHELL MATERIAL
CORROSION ALLOWANCE
INSULATION TYPE
INSULATION THICKNESS
INSULATION AGE
COATING TYPE
COATING THICKNESS
COATING AGE
MATCH 3
H.4.2 AMBIENT CONDITIONS
No
a) LOW ONE DAY MEAN TEMP.
b) EXPOSURE TO SALT AIR
MATCH 3
H.4.3 CURRENT OPERATING CONDITIONS
No
a) PONDING/WATER
b) NORMAL OPERATING TEMP.
MATCH 3
H.4.4 PREVIOUS OPERATING CONDITIONS
Control Tank
Candidate Tank
Yes
a) PONDING/WATER
b) NORMAL OPERATING TEMP.
No
IF NO,
SEE SEC. 4
H.2.1.1
H.2.1.3
H.2.1.4
H.2.1.4
H.2.1.4
H.2.1.4
H.2.1.4
H.2.1.4
H.2.1.4
IF NO,
SEE SEC. 4
H.2.1.9
H.2.1.9
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
IF NO,
SEE SEC. 4
H.2.1.10
H.2.1.10
H.4.5 CONCLUSIONS
a) Does this assessment include additional assessment documentation (see H.2.1), YES
or NO
b) Based on the criteria reviewed in this similar service evaluation,
similar service is
OR is NOT
recommended for this tank (check appropriate box)
c) The corrosion rate to be applied to the ambient side of the tank shell is: ___________mpy.
COMMENTS:
NOTE
THE DATASHEET SHALL BE MAINTAINED IN THE RECORD FILE AS PER 6.8.
ASSESSED BY:
DATE:
APPROVED BY:
DATE:
(tank owner/operator)
NOTE 1
NOTE 2
NOTE 3
NOTE 4
The control tank is the tank for which service conditions and corrosion rates are well known.
The candidate tank is the tank to be compared to the control tank to determine if similar service concepts apply.
“Y” or “Yes” indicates that the candidate tank criterion essentially matches the control tank .
If the candidate tank criterion does not match the control tank criterion, see H.2.1.
+
$3,67$1'$5' SIMILAR SERVICE ASSESSMENT—DATASHEET
CONTROL TANK ID:
DIAMETER (FT):
LOCATION:
HEIGHT (FT):
CANDIDATE TANK ID:
DIAMETER (FT):
CAPACITY:
BBLS
CAPACITY:
BBLS
LOCATION:
HEIGHT (FT):
SECTION 5—CONCLUSION SUMMARY
a) From Section 1, the corrosion rate to be applied to the product-side of the tank bottom is: ___________mpy.
b) From Section 2, the corrosion rate to be applied to the soil-side of the tank bottom is: ___________mpy.
c) From Section 3, the corrosion rate to be applied to the product-side of the tank shell is: ___________mpy.
d) From Section 4, the corrosion rate to be applied to the external side of the t ank shell i s: ___________mpy.
e) Based on the corrosion rates applied, the next internal inspection for this tank will be completed in Year _________.
COMMENTS:
NOTE
THE DATASHEET SHALL BE MAINTAINED IN THE RECORD FILE AS PER 6.8.
ASSESSED BY:
DATE:
APPROVED BY:
DATE:
(tank owner/operator)
$QQH[,
LQIRUPDWLYH
,QTXLULHVDQG6XJJHVWLRQVIRU&KDQJH
, ,QWURGXFWLRQ
7KLV DQQH[ GHVFULEHV WKH SURFHVV HVWDEOLVKHG E\ $3, IRU VXEPLWWLQJ LQTXLULHV WR $3, DQG IRU VXEPLWWLQJ
VXJJHVWLRQV IRU FKDQJHV WR WKLV VWDQGDUG ,QTXLULHV DQG VXJJHVWLRQV IRU FKDQJH DUH ZHOFRPH DQG HQFRXUDJHG
EHFDXVHWKH\SURYLGHXVHIXOUHDGHUIHHGEDFNWRWKHUHVSRQVLEOH$3,&RPPLWWHHUHJDUGLQJWHFKQLFDODFFXUDF\FXUUHQW
WHFKQRORJ\XVHFODULW\FRQVLVWHQF\DQGFRPSOHWHQHVVRIWKHVWDQGDUG$3,ZLOODWWHPSWWRDQVZHUDOOYDOLGLQTXLULHV
6XEPLWWDOVQRWFRPSO\LQJZLWKWKLV$QQH[ZLOOEHUHWXUQHGXQDQVZHUHG
6HFWLRQV , WKURXJK , EHORZFRYHU WKH VXEPLWWLQJ RI LQTXLULHV 6HH 6HFWLRQ , IRU LQVWUXFWLRQV DERXW VXEPLWWLQJ
VXJJHVWLRQVIRUFKDQJH
, ,QTXLU\5HIHUHQFHV
, $3, PDLQWDLQV VHYHUDO ZHEVLWHV WKDW SURYLGH LQIRUPDWLRQ WKDW VKRXOG EH FRQVLGHUHG ZKHQ FRQVLGHULQJ
VXEPLWWLQJDQLQTXLU\
, <RXU LQTXLU\ PD\ KDYH EHHQ SUHYLRXVO\ IRUPDOO\ DGGUHVVHG E\ WKH 6XEFRPPLWWHH DQG WKH UHVXOWLQJ
LQWHUSUHWDWLRQSRVWHGRQWKH$3,ZHEVLWHDVIROORZV
² )RUDOOVWDQGDUGVKWWSP\FRPPLWWHHVDSLRUJVWDQGDUGVWHFKLQWHUSGHIDXOWDVS[
² )RU5HILQLQJ6WDQGDUGVKWWSP\FRPPLWWHHVDSLRUJVWDQGDUGVWHFKLQWHUSUHIHTXLSGHIDXOWDVS[
)RUERWKOLQNVFOLFNRQWKHVWDQGDUGLQTXHVWLRQWRGRZQORDGWKHILOH
, ,QDGGLWLRQDQDGGHQGXPRUHUUDWDZKLFKPD\KDYHDGGUHVVHG\RXULVVXHFDQEHIRXQGRQWKH$3,ZHEVLWH
DVIROORZV
² )RUDOOVWDQGDUGVKWWSZZZDSLRUJVWDQGDUGVDGGHQGD
² )RU5HILQLQJ6WDQGDUGVKWWSZZZDSLRUJVWDQGDUGVDGGHQGDDGGUHIFIP
, 'HILQLWLRQV
, ,QTXLU\$TXHVWLRQWKDWDVNVZKDWLVWKHPHDQLQJRIDVSHFLILFSDUDJUDSKILJXUHRUWDEOHLQWKHVWDQGDUGLH
ZKDWGRWKHZRUGVVD\,WLVQRWDTXHVWLRQWKDWDVNVDERXWWKHLQWHQWLRQRIWKHVWDQGDUG
, 7KHDQVZHUWRWKHLQTXLU\7\SLFDOO\WKHDQVZHULVVLPSO\D³<HV´RU³1R´UHVSRQVHZLWKDEULHIFODULILFDWLRQLI
QHHGHG7KLVWHUPLVDOVRXVHGWRUHIHUWRWKHFRPELQHGTXHVWLRQDQGDQVZHU
, $3,3ROLF\5HJDUGLQJ,QTXLULHV
, $3,KDVHVWDEOLVKHGWKHIROORZLQJOLPLWVRQLWVDFWLYLW\LQWKHKDQGOLQJRILQTXLULHV
D $3,GRHVQRWDSSURYHFHUWLI\UDWHRUHQGRUVHDQ\LWHPFRQVWUXFWLRQSURSULHWDU\GHYLFHRUDFWLYLW\
E $3,GRHVQRWDFWDVDFRQVXOWDQWRQVSHFLILFHQJLQHHULQJSUREOHPV
,
,
$3,67$1'$5'
F $3,GRHVQRWSURYLGHLQIRUPDWLRQRQWKHJHQHUDOXQGHUVWDQGLQJRUDSSOLFDWLRQRIWKHVWDQGDUG
, $OOLQTXLULHVWKDWUHVXOWLQLQWHUSUHWDWLRQVZLOOEHPDGHDYDLODEOHWRWKHSXEOLFRQWKH$3,ZHEVLWH
, 6XEPLVVLRQRI,QTXLULHV
, $QHOHFWURQLFIRUPIRUVXEPLWWLQJDUHTXHVWFDQEHIRXQGRQWKH$3,:HEVLWHDWKWWSUILDSLRUJ3OHDVHXVH
WKLVPHDQVWRVXEPLW\RXULQTXLU\
, $OOLQTXLULHVPXVWFRPSO\ZLWKWKHIROORZLQJ
D &XUUHQWVWDQGDUG,IDQLQTXLU\UHIHUVWRDYHUVLRQRUDGGHQGXPWKDWLVQRWWKHODWHVWWKH6XEFRPPLWWHHZLOOGHYHORS
WKHLQWHUSUHWDWLRQEDVHGRQWKHUHTXLUHPHQWVVWDWHGLQWKHFXUUHQWYHUVLRQ
E 6SHFLILF5HIHUHQFH7KHDSSOLFDEOHSDUDJUDSKQXPEHUILJXUHQXPEHURUWDEOHQXPEHUPXVWEHFLWHGLQWKHLQTXLU\
F 6HQWHQFH6WUXFWXUH,QTXLULHVPXVWEHZULWWHQVXFKWKDWWKHDQVZHUFDQEHD<(6RU12ZLWKWHFKQLFDOGHWDLOV
DGGHG LI QHFHVVDU\ 7KH LQTXLU\ VWDWHPHQW VKRXOG EH WHFKQLFDOO\ DQG HGLWRULDOO\ FRUUHFW DQG ZULWWHQ LQ
XQGHUVWDQGDEOH(QJOLVK
G %DFNJURXQG 3URYLGLQJ D EDFNJURXQG H[SODQDWLRQ LV RSWLRQDO EXW LV HQFRXUDJHG WR DVVLVW WKH FRPPLWWHH LQ
XQGHUVWDQGLQJWKHTXHU\
H 6LQJOH6XEMHFW7KHVFRSHRIDQLQTXLU\VKDOOEHOLPLWHGWRDVLQJOHVXEMHFWRUDJURXSRIFORVHO\UHODWHGVXEMHFWV
I *HQHUDO)RUPDW
7KHJHQHUDOIRUPDWRIWKHLQTXLU\VKRXOGEHDVIROORZV³'RHV3DUDJUDSK;;;RI$3,;;UHTXLUHWKDW«"´
7KHLQTXLUHUVKDOOVWDWHZKDWLVUHTXLUHGLQKLVRUKHURSWLRQDVWKHDQVZHUWRWKHTXHU\
,IDUHYLVLRQWRWKHVWDQGDUGLVEHOLHYHGWRDOVREHQHHGHGSURYLGHUHFRPPHQGHGZRUGLQJ
J 7KH,QTXLUHUVKRXOGQRWXVHWKHLQTXLU\SURFHVVWRLPSURYHKLVJHQHUDOXQGHUVWDQGLQJGHVLJQVNLOOVDQGXVDJHRI
WKHVWDQGDUG&RQVXOWDQWVQRWDIILOLDWHGZLWK$3,DUHDYDLODEOHIRUWKLVSXUSRVH
K ,WLVLPSRUWDQWWKDWWKH,QTXLUHUXQGHUVWDQGWKH GLIIHUHQFH EHWZHHQDQLQTXLU\DQGDVXJJHVWLRQIRUFKDQJH$3,
HQFRXUDJHVERWKEXWWKHVXEPLWWDODQGFRPPLWWHHKDQGOLQJSURFHGXUHVDUHGLIIHUHQW
, *HQHUDOJXLGHOLQHVIRUVXEPLVVLRQFDQDOVREHIRXQGRQWKH$3,ZHEVLWHDW
KWWSZZZDSLRUJ3XEOLFDWLRQV6WDQGDUGVDQG6WDWLVWLFV)$4VDQG,QTXLULHV)$4V7HFKQLFDO4XHVWLRQ
*XLGHOLQHVIRUVXEPLVVLRQDVS[
, 7\SLFDO,QTXLU\3URFHGXUH
, 7KHW\SLFDOSURFHGXUHRIDQLQTXLU\LVDVIROORZV
D 7KH,QTXLUHUPXVWSUHSDUHWKHLQTXLU\LQFOXGLQJDQ\QHFHVVDU\EDFNJURXQGLQIRUPDWLRQLQIXOOFRPSOLDQFHZLWKWKLV
$QQH[DQGVXEPLWWRWKH$3,6WDQGDUGV&RRUGLQDWRU
E $3,6WDQGDUGV&RRUGLQDWRUFKHFNVWKHLQTXLU\WRYHULI\FRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIVXEPLWWLQJDQLQTXLU\
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
,
F ,IWKHLQTXLU\FDQQRWEHDQVZHUHGIRUDQ\UHDVRQWKH&RRUGLQDWRUZLOOLVVXHDUHVSRQVHWRWKHLQTXLUHUDGYLVLQJWKH
UHDVRQ V IRUQRWDQVZHULQJWKHLQTXLU\$IRUPRUFKHFNOLVWZLOOW\SLFDOO\EHXVHGIRUWKLVUHVSRQVH
G ,IWKH&RRUGLQDWRUEHOLHYHVLQTXLU\LVYDOLGLWZLOOEHIRUZDUGHGWRWKH6XEFRPPLWWHHIRUVWXG\DQGWKHLQTXLUHUZLOO
EHDGYLVHGXVLQJWKHIRUPOHWWHU
H 7KH6XEFRPPLWWHHZLOOHYDOXDWHWKHLQTXLU\DQGHLWKHUGHYHORSDUHVSRQVHRUGHWHUPLQHWKDWWKHLQTXLU\FDQQRWEH
DQVZHUHG DQG DGYLVH WKH &RRUGLQDWRU DFFRUGLQJO\7KH 6XEFRPPLWWHH ZLOO FRQVLGHU WKH QHHG IRU PRGLI\LQJ WKH
VWDQGDUGWRUHVROYHWHFKQLFDOLVVXHVDGGQHZUHTXLUHPHQWVPDNHHGLWRULDOFRUUHFWLRQVLPSURYHFODULW\UHPRYH
FRQIOLFWVHWFHWHUD
I 7KH6XEFRPPLWWHHZLOOGHYHORSLQTXLULHVLQDFFRUGDQFHZLWKWKHEDOORWLQJUHTXLUHPHQWVLQWKH$3,3URFHGXUHVIRU
6WDQGDUGV'HYHORSPHQW$OOLQTXLULHVVKDOODOVREHVXEPLWWHGWR$3,¶V2IILFHRIWKH*HQHUDO&RXQVHOIRUUHYLHZDQG
DSSURYDO8SRQDSSURYDODQGFOHDUDQFHWKHLQTXLU\ZLOOEHSXEOLVKHGRQWKH$3,ZHEVLWH
, 7KHWLPHUHTXLUHGWRSURFHVVDYDOLGLQTXLU\DVGHVFULEHGLQ,PD\WDNHDVORQJDVD\HDU
, ,QWHUSUHWDWLRQV5HVSRQGLQJWR,QTXLULHV
, $QLQWHUSUHWDWLRQLVZULWWHQE\WKH6XEFRPPLWWHHWRSURYLGHWKHVSHFLILFDQVZHUWRDQLQTXLU\,WW\SLFDOO\ZLOOQRW
VWDWHWKHLQWHQWRIWKHVWDQGDUGQRUJLYHUHDVRQVIRUWKHUHTXLUHPHQWVQRUJLYHKLVWRULFDOEDVHVQRUSURYLGHRYHUDOO
XQGHUVWDQGLQJRIWKHVWDQGDUG,IWKHLQTXLU\LVSURSHUO\SKUDVHGWKHLQWHUSUHWDWLRQFDQEHDRQHZRUGUHVSRQVH:LWK
PDQ\LQTXLULHVWKHUHPD\EHDQHHGWRSURYLGHFODULI\LQJVWDWHPHQWVVXFKDVWKHOLPLWVRQWKHDSSOLFDELOLW\
, $OWKRXJKLWLVQRWSRVVLEOHWRGHYHORSLQWHUSUHWDWLRQVTXLFNO\WRUHPHG\LPPHGLDWHQHHGVWKHLQGXVWU\EHQHILWV
DVDZKROHZKHQLQTXLULHVDUHXWLOL]HGDVDPHDQVRIWU\LQJWRXQGHUVWDQGWKHWHFKQLFDOUHTXLUHPHQWVLQWKHVWDQGDUG
, 6XJJHVWLRQVIRU&KDQJHV
, ³6XJJHVWLRQIRU&KDQJH´LVQRWDQLQTXLU\LWLVVLPSO\DFRPPXQLFDWLRQ HPDLOSUHIHUUHG IURPDUHDGHUWR$3,
SURSRVLQJWKDWDVSHFLILFFKDQJHEHPDGHWRWKHVWDQGDUG
, $Q\IRUPDWLVDFFHSWDEOHDVORQJDVWKHFRQWHQWLVFOHDU
, 7KH PRVW HIIHFWLYH PHDQV WR VXEPLW VXJJHVWLRQV LV WR VHQG DQ HPDLO WR WKH $3, &RRUGLQDWRU
VWDQGDUGV#DSLRUJ , 7KH FRQWHQW RI D VXJJHVWLRQ PXVW LQFOXGH WKH VWDQGDUG QXPEHU HGLWLRQ DQG DGGHQGXP LQ TXHVWLRQ 7KH
UHOHYDQWSDUDJUDSKQXPEHUVWDEOHQXPEHUILJXUHQXPEHUHWFPXVWDOVREHVWDWHG3URYLGHDVPXFKH[SODQDWLRQDV
QHFHVVDU\WREHVXUHWKH6XEFRPPLWWHHXQGHUVWDQGVWKHWHFKQLFDOLVVXHV3URYLGHVSHFLILFODQJXDJHWKDW\RXWKLQNLV
QHHGHGWRLPSOHPHQWWKHFKDQJH/DVWLQFOXGH\RXUQDPHFRPSDQ\DIILOLDWLRQLIDQ\DQG\RXUUHWXUQHPDLORUPDLOLQJ
DGGUHVV
, $3, ZLOO IRUZDUG DOO VXJJHVWLRQV WKDW DUH VXLWDEO\ ZULWWHQ WR WKH 6XEFRPPLWWHH IRU FRQVLGHUDWLRQ 7KH
6XEFRPPLWWHHZLOOHYDOXDWHHDFKVXJJHVWLRQDQGGHWHUPLQHLIDFKDQJHLVQHHGHG6XJJHVWLRQVWKDWDUHDFFHSWHGE\
WKH 6XEFRPPLWWHH ZLOO EH UHIOHFWHG LQ D IXWXUH HGLWLRQ RU DGGHQGD EXW D UHSO\ DGYLVLQJ WKH VXEPLWWHU RI WKH
6XEFRPPLWWHH VGHFLVLRQPD\QRWEHLVVXHG
$QQH[QRUPDWLYHLIVSHFLILHGE\WKH3XUFKDVHU
6KHOO3ODWH5HSDLUV8VLQJ1RQPHWDOOLF0DWHULDOV
- ,QWURGXFWLRQ
- 7KLVDQQH[VSHFLILHVUHTXLUHPHQWVDQGSURYLGHVJXLGDQFHIRUXWLOL]LQJFRPSRVLWHUHSDLUV\VWHPVWRUHSDLUWKH
VKHOORIDWDQNZKHQVSHFLILHGRUDXWKRUL]HGE\WKH2ZQHU2SHUDWRU&RPSRVLWHUHSDLUV\VWHPVVKDOOQRWEHXVHGWR
UHSDLUH[LVWLQJWDQNVIRUFKDQJHRIVHUYLFHDSSOLFDWLRQVIRUUHFRQVWUXFWHGWDQNVIRUVWUHQJWKHQLQJRIWDQNIORRUVQRU
IRUWKHVWUHQJWKHQLQJLQWKHERWWRP´RIWKHVKHOOZKHUHGLVFRQWLQXLW\VWUHVVHVVWUDLQVDUHGLIILFXOWWRSUHGLFW7KLFN
ILOPHGOLQHUV ILEHUJODVV DUHQRWLQFOXGHGLQWKLVOLVWRIXQDFFHSWDEOHUHSDLUV
- 5HSDLUV8VLQJ1RQPHWDOOLF&RPSRVLWH0DWHULDOV
- 7KH FRPSRVLWH UHSDLU V\VWHPV VKDOO EH GHVLJQHG DQG WHVWHG LQ DFFRUGDQFH ZLWK $60( 3&& 3DUW ³1RQPHWDOOLF DQG %RQGHG 5HSDLUV´ VSHFLILFDOO\ $UWLFOH ³1RQPHWDOOLF &RPSRVLWH 5HSDLU 6\VWHPV +LJK5LVN
$SSOLFDWLRQV´ZLWKWKHDGGLWLRQDOUHTXLUHPHQWVVWDWHGLQ7DEOH-7KHDSSOLFDWLRQRIWKLVUHSDLUV\VWHPVKDOOEHOLPLWHG
WRKRRSVWUHQJWKHQLQJRIWKHVKHOOIRUQRQOHDNLQJ 7\SH$ DQGOHDNLQJ 7\SH% FRQGLWLRQVDVGHILQHGLQ$60(3&&
7KHUHSDLULVDOVROLPLWHGWRDUHDVJUHDWHUWKDQVTUW>' W@IURPDVWUXFWXUDOGLVFRQWLQXLW\
7KHWKLFNQHVVRIWKHUHSDLUVVKDOOEHFDOFXODWHGDFFRUGLQJWR6HFWLRQ'(6,*1IURP$60(3&&$UWLFOHDQG
IROORZWKHVXSSOHPHQWDOUHTXLUHPHQWVIRXQGLQ$QQH[-7KHOHQJWKRIWKHUHSDLUVKDOOEHFDOFXODWHGDFFRUGLQJWRWKH
FULWHULDOLVWHGLQ³$[LDO/HQJWKRI5HSDLU´
$FRPSRVLWHUHSDLUWKDWLVGHVLJQHGLQDFFRUGDQFHZLWK$60(3&&³5HSDLU/DPLQDWH$OORZDEOH6WUHVV´RU³5HSDLU
/DPLQDWH$OORZDEOH 6WUHVVHV 'HWHUPLQHG E\ 3HUIRUPDQFH 7HVWLQJ´ QHJOHFWV WKH FRQWULEXWLRQ RI WKH WDQN ZDOO IRU
FRQWULEXWLRQRIORDGFDUU\LQJFDSDELOLW\DQGVKDOOEHFRQVLGHUHGDPDMRUUHSDLUSHU$3,VHFWLRQ
$FRPSRVLWHUHSDLUWKDWLVGHVLJQHGLQDFFRUGDQFHZLWK$60(3&&³&RPSRQHQW$OORZDEOH6WUHVV´UHOLHVRQWKH
FRQWULEXWLRQRIWKHWDQNZDOOIRUFRQWULEXWLRQRIORDGFDUU\LQJFDSDELOLW\,IWKHFRPSRVLWHUHSDLULVVPDOOHQRXJKDQG
SURYLGHVOHVVWKDQRQHKDOIRIWKHVWUHQJWKRIWKHVKHOOWKLVW\SHRIUHSDLUVKDOOQRWEHFRQVLGHUHGDPDMRUUHSDLUSHU
$3,VHFWLRQ
7KHIROORZLQJWDEOHSUHVHQWVWKHDPHQGPHQWVDQGVXSSOHPHQWVWRWKHLGHQWLILHGVHFWLRQVRI$60(3&&
-
-
$3,67$1'$5'
7DEOH-²$3,5HTXLUHPHQWVLQ$GGLWLRQWR$60(3&&
3&&3DUW
$UWLFOH 3&&3DUW$UWLFOH
6HFWLRQ
6HFWLRQ'HVFULSWLRQ
5HIHUHQFH
'(6&5,37,216
5LVN$VVHVVPHQW
'(6,*1
5HSDLU6\VWHP
4XDOLILFDWLRQ'DWD
$GGLWLRQDO5HTXLUHPHQWVIRU
6WRUDJH7DQN5HSDLUV
7KH2ZQHU2SHUDWRUVKDOODOVRLGHQWLI\WKHH[LVWLQJVXEVWUDWHPDWHULDOSUHVVXUH
WHPSHUDWXUHOLPLWVLQWHUQDOIOXLGVDQGH[WHUQDOHQYLURQPHQWDOUHTXLUHGIRUWKH
VHOHFWLRQDQGGHVLJQRIWKHUHSDLUV\VWHP
$OOSUHVFULEHGWHVWLQJVKDOOEHFRQGXFWHGE\DQDWLRQDOO\DFFUHGLWHGWHVWIDFLOLW\DQG
FHUWLILHGE\HQJLQHHUVNQRZOHGJHDEOHDERXWWDQNGHVLJQDQGPDWHULDOWHVWLQJ
'HVLJQVWUHQJWKVSHU$670'VKDOOEHGHWHUPLQHGE\WHVWLQJDPLQLPXP
VDPSOHV DYHUDJHVWUHQJWKOHVVWKUHHVWDQGDUGGHYLDWLRQV ZLWKDQHQYLURQPHQWDO
UHGXFWLRQIDFWRUDSSOLHG7KHHQYLURQPHQWDOUHGXFWLRQIDFWRUVDUH&DUERQ)LEHU
5HSDLU6\VWHP5HTXLUHG $UDPLGDQG*ODVV
7DEOH
0DWHULDODQG3HUIRUPDQFH
7HVWLQJRIWKHFRPSRQHQWVRIWKHVHV\VWHPVVKDOOGHWHUPLQHWHQVLOHVWUHQJWK
3URSHUWLHV
WHQVLOHPRGXOXVFRPSUHVVLYHVWUHQJWKORQJWHUPFUHHSWHVWLQJLQWHUODPLQDUVKHDU
PDWHULDOGXUDELOLW\DQGORQJWHUPVWUHQJWKUHWHQWLRQFRQVLGHULQJWKHVHLGHQWLILHG
SRWHQWLDOFRQVWUDLQWV SHU$60(3&&6WDQGDUG3DUW$UWLFOHV 127(&RPSRVLWHPDWHULDOVFDQQRWVXVWDLQORQJWHUPORDGVQHDUWKHLUVKRUWWHUPFRXSRQWHVWOHYHOVDVPHWDOVFDQ7KLVHIIHFW
LVFDOOHG³FUHHSUXSWXUH´
127(&RPSRVLWHPDWHULDOVGRQRW\LHOGDVPHWDOVXVXDOO\GR
127(&\FOLFDOORDGLQJSHUIRUPDQFHRIFRPSRVLWHPDWHULDOVLVXVXDOO\QRWDVJRRGDVPHWDOV
7KHGHVLJQRIWKHUHSDLUV\VWHPVKDOOLGHQWLI\WKHUHFRPPHQGHGVHUYLFHOLIH
LQVSHFWLRQDQGPDLQWHQDQFHSURJUDPVDQGVKDOOEHOLPLWHGWRWKRVHPDWHULDOVZKLFK
5HTXLUHG'DWD
KDYHEHHQWHVWHGE\WKHPDQXIDFWXUHUWRGHWHUPLQHDFFHSWDEOHGXUDELOLW\RIWKH
PDWHULDOVZKHQH[SRVHGWRDQWLFLSDWHGDWPRVSKHULF LQFOXGLQJ89 SURGXFWDQG
VHUYLFHFRQGLWLRQV
7KHGHVLJQRIWKHFRPSRVLWHUHSDLUV\VWHPVKDOOEHOLPLWHGWRKRRSVWUHQJWKHQLQJRI
WKHVKHOOIRUQRQOHDNLQJ 7\SH$ DQGOHDNLQJ 7\SH% FRQGLWLRQVDVGHILQHGLQ
$60(3&&,QDGGLWLRQWKHGHVLJQRIWKHFRPSRVLWHUHSDLUV\VWHPLVQRW
LQWHQGHGWRDGGUHVVQRQWHQVLOHUHODWHGIRUFHVVXFKDVEXWQRWOLPLWHGWRZLQG
ORDGVVHLVPLFORDGVFRPSUHVVLRQEXFNOLQJDQGWKHHIIHFWVRIIRXQGDWLRQ
'HVLJQ0HWKRGRORJ\
VHWWOHPHQW7KHULVNDVVHVVPHQWVKDOOFRQVLGHUSRWHQWLDOFRQVHTXHQFHVWKDWPD\
RFFXUGXHWRQRQWHQVLOHUHODWHGIRUFHV
7KHSURSRVHGUHSDLUV\VWHPVKDOOLGHQWLI\WKHH[LVWLQJVXEVWUDWHUHTXLUHGVXUIDFH
SUHSDUDWLRQFRPSRVLWHPDWHULDOORDGWUDQVIHUPDWHULDOSULPHUOD\HUDGKHVLYH
DSSOLFDWLRQPHWKRGFXULQJSURWRFRODQGLQWHUODPLQDUDGKHVLYH
7KHHQYLURQPHQWDOFRPSDWLELOLW\RIWKHFRPSRVLWHUHSDLUV\VWHPVKDOOEHDVVHVVHG
EDVHGRQWKHH[SRVXUHLWZLOOHQGXUHZKLOHLQVHUYLFHHJDFLGLFFDXVWLFKXPLG
5HSDLU/DPLQDWH
HQYLURQPHQWVDQGXOWUDYLROHWH[SRVXUH7KHV\VWHPVKDOOEHVXEMHFWHGWR
$OORZDEOH6WUHVVHV
LPPHUVLRQWHVWLQJLQDFFRUGDQFHZLWK$670&DQGGHPRQVWUDWHORQJWHUP
'HWHUPLQHGE\
VWUHQJWKUHWHQWLRQSHU$670'7KLVWHVWLQJVKDOOFRQILUPWKDWWKHUHWDLQHG
3HUIRUPDQFH7HVWLQJ
VWUHQJWKLVJUHDWHUWKDQWKHGHVLJQVWUHQJWKDIWHUEHLQJVXEMHFWHGWRWKLVORQJWHUP
GXUDELOLW\WHVWLQJLQWKHVHHQYLURQPHQWV
7$1.,163(&7,215(3$,5$/7(5$7,21$1'5(&216758&7,21
-
7DEOH-²$3,5HTXLUHPHQWVLQ$GGLWLRQWR$60(3&& &RQWLQXHG
3&&3DUW
$UWLFOH 3&&3DUW$UWLFOH
6HFWLRQ
6HFWLRQ'HVFULSWLRQ
5HIHUHQFH
)LUH3HUIRUPDQFH
)$%5,&$7,21
,167$//$7,21
*HQHUDO
(;$0,1$7,21
,QVSHFWLRQ0HWKRGV
$GGLWLRQDO5HTXLUHPHQWVIRU
6WRUDJH7DQN5HSDLUV
7KHFRPSRVLWHUHSDLUV\VWHPFRPSRQHQWVDQGERQGLQJVKDOOEHWHVWHGIRUILUH
UHVLVWDQFHLQDFFRUGDQFHZLWK$670(DQGFRQILUPHGWREHIODPHDQGVPRNH
VSUHDGUHVLVWDQWLQDFFRUGDQFHZLWK$670(,QDGGLWLRQWRWKHILUHSHUIRUPDQFH
LQWKHIROORZLQJLWHPVDUHUHTXLUHG
7KHIODPHVSUHDGLQGH[RIWKHPDWHULDOVKDOOQRWH[FHHGDQGWKHPDWHULDOVKDOO
QRWVXSSRUWFRQWLQXHGSURJUHVVLYHFRPEXVWLRQLQDLU
7KHPDWHULDOVKDOOEHRIVXFKFRPSRVLWLRQWKDWVXUIDFHVWKDWZRXOGEHH[SRVHGE\
FXWWLQJWKURXJKWKHPDWHULDORQDQ\SODQHVKDOOKDYHDIODPHVSUHDGLQGH[QRW
JUHDWHUWKDQDQGVKDOOQRWVXSSRUWFRQWLQXHGSURJUHVVLYHFRPEXVWLRQ
,WVKDOOEHVKRZQE\WHVWWKDWWKHFRPEXVWLRQSURSHUWLHVRIWKHPDWHULDOGRQRW
LQFUHDVHVLJQLILFDQWO\DVDUHVXOWRIORQJWHUPH[SRVXUHWRVWRUHGSURGXFWDWVHUYLFH
SUHVVXUHDQGWHPSHUDWXUH
7KHPDWHULDOVLQWKHLQVWDOOHGFRQGLWLRQVKDOOEHGHPRQVWUDWHGWREHFDSDEOHRI
EHLQJSXUJHGWREHJDVIUHHRULIDQ\UHPQDQWVDUHZLWKLQWKHPDWHULDOWKH\VKDOO
QRWLQFUHDVHWKHFRPEXVWLELOLW\RIWKHPDWHULDO
'RFXPHQWDWLRQRIWKHGHVLJQUHFRUGVIRUWKHIDEULFDWLRQ LQVWDOODWLRQ VKDOOEHPDGH
DQGUHWDLQHGIRUWKHUHSDLUOLIH7KLVLQIRUPDWLRQVKDOOLQFOXGHOD\HUVDQGRULHQWDWLRQ
RIUHLQIRUFHPHQWSUHSDUDWLRQSURFHGXUHFXUHSURFHGXUHDQGSRVWFXUH7KHVH
GRFXPHQWVVKDOOEHFHUWLILHGE\DUHSUHVHQWDWLYHIURPWKHLQVWDOODWLRQFRQWUDFWRU
7KHFRPSRVLWHUHSDLUV\VWHPPD\EHERQGHGLQWHUQDOO\RUH[WHUQDOO\WRUHVWRUHWKH
PLQLPXPVKHOOSODWHWKLFNQHVV8OWUDVRQLFWKLFNQHVVUHDGLQJVDWIXWXUHLQVHUYLFH
DQGRXWRIVHUYLFHLQVSHFWLRQVVKDOOEHFRQGXFWHGIURPWKHRSSRVLWHVLGHRIWKH
SODWHWRHQVXUHWKDWWKHFRUURVLRQKDVQRWUHGXFHGWKHWKLFNQHVV:KHUHWKH
RSSRVLWHVLGHRIWKHSODWHLVQRWDFFHVVLEOHRUFRYHUHGE\LQVXODWLRQLQVSHFWLRQRI
WKHVHUHSDLUVFDQEHFRQGXFWHGDWLQVSHFWLRQSRUWVGHVLJQHGLQWRWKHDSSOLFDWLRQDW
DUHDVZKHUHFRDWLQJLVUHPRYHGDQGSDWFKHGDIWHULQVSHFWLRQRUE\XWLOL]LQJ
HTXLSPHQWWKDWFDQVFDQWKURXJKWKHUHSDLUV\VWHP
$QQH[6
QRUPDWLYH
$XVWHQLWLF6WDLQOHVV6WHHO6WRUDJH7DQNV
6 6FRSH
6 7KLV DQQH[ FRYHUV WKH LQVSHFWLRQ UHSDLU DOWHUDWLRQ DQG UHFRQVWUXFWLRQ RI VWDLQOHVV VWHHO WDQNV WKDW ZHUH
FRQVWUXFWHGLQDFFRUGDQFHZLWK$3,$QQH[6
6 7KLVDQQH[VWDWHVRQO\WKHUHTXLUHPHQWVWKDWGLIIHUIURPWKHEDVLFUXOHVLQWKLVVWDQGDUG)RUUHTXLUHPHQWVQRW
VWDWHGWKHEDVLFUXOHVPXVWEHIROORZHG
6 5HIHUHQFHV
1RFKDQJHVWR6HFWLRQ
6 'HILQLWLRQV
1RFKDQJHVWR6HFWLRQ
6 6XLWDELOLW\IRU6HUYLFH
6 ,QWKHUHTXLUHPHQWVRI$3,6HFWLRQ6VKDOODOVREHVDWLVILHG
6 ,Q$QQH[0UHTXLUHPHQWVVKDOOEHPHWIRUVWDLQOHVVVWHHOWDQNVZLWKGHVLJQWHPSHUDWXUHVRYHU °&
°) DVPRGLILHGE\$3,6HFWLRQV6WKUX6 6 ,QWKHPD[LPXPDOORZDEOHVWUHVVSVKDOOEHPRGLILHGDVIROORZVIRUWKHGHVLJQFRQGLWLRQ SG DQGWKH
K\GURVWDWLFWHVWFRQGLWLRQ SW WKHPD[LPXPDOORZDEOHVWUHVVIRUDOOVKHOOFRXUVHVVKDOOEHWKHOHVVHURIYRU 6 7DEOH VKDOO EH LQ DFFRUGDQFH ZLWK$3, 7DEOH 6 :KHQ WKH UDGLRJUDSK\ VFKHGXOH DSSOLHG WR WKH
H[LVWLQJZHOGLVXQNQRZQWKHMRLQWHIILFLHQF\RIVKDOOEHXVHG
6 6HFWLRQF VKDOOEHFKDQJHGWRUHDG³2SHUDWLRQDWWHPSHUDWXUHVRYHU °& °) ´
6 ,QWKHIDFWRU
YVKDOOEHUHSODFHGZLWK Y
6 ,QWKHVHUXOHVGRQRWFRYHUVWDLQOHVVVWHHOWDQNV
6 %ULWWOH)UDFWXUH
7KHWDQNLVVXLWDEOHIRUFRQWLQXHGXVHLQDPELHQWWHPSHUDWXUHVHUYLFH
6 ,QVSHFWLRQ
1RFKDQJHVWR6HFWLRQ
6 0DWHULDOV
6 ,QDGGUHIHUHQFHWR$670$
6 6WUXFWXUDOPD\EHVKDSHVIDEULFDWHGIURPSODWH3ODWHDQGVWUXFWXUDOPDWHULDOVKDOOPHHW$3,6HFWLRQ6
6
6
$3,67$1'$5'
6 'HVLJQ&RQVLGHUDWLRQVIRU5HFRQVWUXFWHG7DQNV
,QWKHDOORZDEOHVWUHVVVKDOOEHUHYLVHGWRPHHWWKHDOORZDEOHVWUHVVHVRI$3,6HFWLRQ6
6 7DQN5HSDLUDQG$OWHUDWLRQ
6 ,QDSSO\LQJWRIDEULFDWLRQDQGFRQVWUXFWLRQUHTXLUHPHQWV$3,6HFWLRQV6WKURXJK6VKDOOEH
PHWDVDSSOLFDEOH
6 +RWWDSVIRUVWDLQOHVVVWHHOV UHIHUHQFH6HFWLRQ DUHQRWDGGUHVVHGE\WKLVDQQH[
6 'LVPDQWOLQJDQG5HFRQVWUXFWLRQ
6 ,QZHOGLQJVKDOODOVRPHHWWKHUHTXLUHPHQWVRI$3,6HFWLRQ6
6 7KHUPDOFXWWLQJRIVWDLQOHVVVWHHOVKDOOEHE\WKHLURQSRZGHUEXUQLQJFDUERQDUFSODVPDDUFZDWHUMHWRU
ODVHUFXWWLQJPHWKRGV
6 7KHVWRUDJHUHTXLUHPHQWVRI$3,6HFWLRQ6VKDOOEHPHW
6 ,IVSHFLILHGE\WKHRZQHURSHUDWRUWKHUHTXLUHPHQWVRI$3,6HFWLRQ6VKDOOEHPHW
6 :HOGLQJ
:HOGLQJVKDOODOVRPHHWWKHUHTXLUHPHQWVRI$3,6HFWLRQV6DQG6
6 ([DPLQDWLRQDQG7HVWLQJ
6 $Q\UHIHUHQFHWRPDJQHWLFSDUWLFOHPHWKRGVKDOOEHUHSODFHGZLWKWKHOLTXLGSHQHWUDQWPHWKRG
6 ,QWKHTXDOLW\RIWHVWZDWHUVKDOOPHHW$3,6HFWLRQ6
6 $QQH[HV
$QQH[) 1'(5HTXLUHPHQWV6XPPDU\ ²DQ\UHIHUHQFHVWRPDJQHWLFSDUWLFOHH[DPLQDWLRQVKDOOEHGLVUHJDUGHG
$QQH[6&
QRUPDWLYH
6WDLQOHVVDQG&DUERQ6WHHO0L[HG6WRUDJH7DQNV
6& 6FRSH
6& 7KLVDQQH[FRYHUVWKHLQVSHFWLRQUHSDLUDOWHUDWLRQDQGUHFRQVWUXFWLRQRIPL[HGPDWHULDOWDQNVFRQVWUXFWHGLQ
DFFRUGDQFHZLWK$3,$QQH[6&
6& 7KLV DQQH[ VWDWHV RQO\ WKH UHTXLUHPHQWV WKDW GLIIHU IURP WKH EDVLF UXOHV LQ WKLV VWDQGDUG$QQH[ 6 RI WKLV
VWDQGDUG$QQH[;RIWKLV VWDQGDUGDQG$3,$QQH[ 6& )RUUHTXLUHPHQWVQRWVWDWHGWKHEDVLF UXOHV VKDOOEH
IROORZHG
6& ,QWKLVDQQH[WKHWHUP³VWDLQOHVVVWHHO´LQFOXGHVDXVWHQLWLFRUGXSOH[VWDLQOHVVVWHHOXQOHVVQRWHGRWKHUZLVH
6& 5HIHUHQFHV
1RFKDQJHVWR6HFWLRQ
6& 'HILQLWLRQV
1RFKDQJHVWR6HFWLRQ
6& 6XLWDELOLW\IRU6HUYLFH
6& $GGWR7KHUHTXLUHPHQWVRI$3,6HFWLRQV6DQG$3,DQG;VKDOODOVREHVDWLVILHG
IRUWKHVWDLQOHVVVWHHOFRPSRQHQWVRIWKHWDQN
6& $GGWR7KLVDQQH[DSSOLHVWRWDQNVLQQRQUHIULJHUDWHGVHUYLFHVZLWKDPD[LPXPGHVLJQWHPSHUDWXUH
QRWH[FHHGLQJƒ& ƒ) )RUWKHSXUSRVHVRIWKLVDQQH[WKHGHVLJQWHPSHUDWXUHVKDOOEHWKHPD[LPXPGHVLJQ
WHPSHUDWXUHDVVSHFLILHGE\WKHRZQHURSHUDWRU
127( ([RWKHUPLFUHDFWLRQVRFFXUULQJLQVLGHXQKHDWHGVWRUDJHWDQNVFDQSURGXFHWHPSHUDWXUHVH[FHHGLQJƒ& ƒ) 6& $GGWR7KHPD[LPXPDOORZDEOHVWUHVVSVKDOOEHPRGLILHGDVIROORZVIRUWKHGHVLJQFRQGLWLRQ S
DQGWKHK\GURWHVWFRQGLWLRQ S WKHPD[LPXPDOORZDEOHVWUHVVIRUDXVWHQLWLFVWDLQOHVVVWHHOVKHOOFRXUVHVVKDOOEHWKH
VPDOOHURIYRU 6& 7DEOH²-RLQWHIILFLHQFLHVIRUZHOGHGVWDLQOHVVMRLQWVVKDOOEHLQDFFRUGDQFHZLWK$3,7DEOH6RU
$3,7DEOH;:KHQWKHUDGLRJUDSK\VFKHGXOHDSSOLHGWRWKHH[LVWLQJZHOGLVXQNQRZQWKHQWKHMRLQWHIILFLHQF\
RIVKDOOEHXVHG
6& 5HYLVHFWRUHDGµ2SHUDWLRQDWWHPSHUDWXUHVRYHU ƒ& ƒ) ¶
6& 5HYLVHE\UHSODFLQJWKHYIDFWRUZLWKYIRUDXVWHQLWLFVWDLQOHVVVWHHOFRPSRQHQWV
6& 7KHUXOHVLQIRUULYHWHGWDQNVGRQRWFRYHUPL[HGPDWHULDOWDQNV
6& %ULWWOH)UDFWXUH&RQVLGHUDWLRQV
(YDOXDWLRQRIEULWWOHIUDFWXUHVKDOOEHGRQHDFFRUGLQJWR6HFWLRQRIWKLVVWDQGDUGIRUFDUERQVWHHO6HFWLRQ6RIWKLV
VWDQGDUGIRUDXVWHQLWLFVWDLQOHVVVWHHODQG6HFWLRQ;RIWKLVVWDQGDUGIRUGXSOH[VWDLQOHVVVWHHOFRPSRQHQWV
6&
6&
$3,67$1'$5'
6& ,QVSHFWLRQ
1R&KDQJHVWR6HFWLRQ
6& 0DWHULDOV
0DWHULDOVUHTXLUHPHQWVIRUPL[HGPDWHULDOVVLWXDWLRQVDUHXQFKDQJHGIURPWKHEDVHGRFXPHQWH[FHSWDVPRGLILHGE\
$3,$SSHQGLFHV6DQG; 6DQG; IRUVWDLQOHVVVWHHOV
6& 'HVLJQ&RQVLGHUDWLRQVIRU5HFRQVWUXFWHG7DQNV
7KHDOORZDEOHVWUHVVLQDQGIRUVWDLQOHVVVWHHOFRPSRQHQWVVKDOOEHUHYLVHGWRPHHWWKHDOORZDEOHVWUHVVHV
RI$3,$QQH[6RU$3,$QQH[;
6& 7DQN5HSDLUDQG$OWHUDWLRQ
6& $GGWR6KHOOLQVHUWSODWHVDQGWKLFNHQHGLQVHUWSODWHVVKDOOEHPDGHLQDFFRUGDQFHZLWK$3,6HFWLRQ
6&
6& $GGWR/DSSDWFKHVVKDOOEHPDGHFDUERQVWHHOWRFDUERQVWHHODQGVWDLQOHVVVWHHOWRVWDLQOHVVVWHHO
6& $GGWR6KHOOSHQHWUDWLRQVDQGUHLQIRUFLQJVKDOOEHPDGHLQDFFRUGDQFHZLWK$3,6HFWLRQ6&
6& $GGWR5HSDLURIWDQNERWWRPVVKDOOEHPDGHLQDFFRUGDQFHZLWK$3,6HFWLRQ6&
6& $GGWR+RWWDSVLQVWDLQOHVVVWHHODUHQRWDGGUHVVHGE\WKLVDQQH[
6& 2WKHU
)RU'LVPDQWOLQJDQG5HFRQVWUXFWLRQ:HOGLQJ([DPLQDWLRQDQG7HVWLQJDQG$QQH[HVVHHWKHIROORZLQJVHFWLRQVRI
WKHEDVLFGRFXPHQW6WKURXJK6IRUDXVWHQLWLFVWDLQOHVVVWHHODQG;WKURXJK;IRUGXSOH[VWDLQOHVVVWHHO
FRPSRQHQWV
$QQH[;
QRUPDWLYH
'XSOH[6WDLQOHVV6WHHO6WRUDJH7DQNV
; 6FRSH
; 7KLV DQQH[ FRYHUV WKH LQVSHFWLRQ UHSDLU DOWHUDWLRQ DQG UHFRQVWUXFWLRQ RI GXSOH[ VWDLQOHVV VWHHO WDQNV WKDW
ZHUHFRQVWUXFWHGLQDFFRUGDQFHZLWK$3,$QQH[;
; 7KLVDQQH[VWDWHVRQO\WKHUHTXLUHPHQWVWKDWGLIIHUIURPWKHEDVLFUXOHVLQWKLV6WDQGDUG)RUUHTXLUHPHQWVQRW
VWDWHGWKHEDVLFUXOHVVKDOOEHIROORZHG
; 5HIHUHQFHV
1RFKDQJHVWR6HFWLRQ
; 'HILQLWLRQV
1RFKDQJHVWR6HFWLRQ
; 6XLWDELOLW\IRU6HUYLFH
; ,QWKHUHTXLUHPHQWVRI$3,6HFWLRQ;VKDOODOVREHVDWLVILHG
; ,QWKH UHTXLUHPHQWVRI$3, $QQH[ 0UHTXLUHPHQWVVKDOOEH VDWLVILHGIRUGXSOH[VWDLQOHVV VWHHO
WDQNVZLWKGHVLJQWHPSHUDWXUHVRYHUƒ& ƒ) DVPRGLILHGE\$3,6HFWLRQV;WKURXJK;
; ,QWKHPD[LPXPDOORZDEOHVWUHVV6VKDOOEHFDOFXODWHGWKHVDPHZD\DVIRUFDUERQVWHHO
; Y VSHFLILHGPLQLPXP\LHOGVWUHQJWKRIWKHSODWHDWGHVLJQWHPSHUDWXUHXVHPDWHULDO6SURSHUWLHVLI
GXSOH[PDWHULDOVSHFLILFDWLRQLVQRWNQRZQ
;
VSHFLILHGPLQLPXPWHQVLOHVWUHQJWKRIWKHSODWHDWGHVLJQWHPSHUDWXUHXVHPDWHULDO6SURSHUWLHVLI
GXSOH[PDWHULDOVSHFLILFDWLRQLVQRWNQRZQ
; -RLQWHIILFLHQF\WREHXVHGIRUHYDOXDWLRQVKDOOEHWDNHQIURP$3,7DEOH;UDWKHUWKDQIURP7DEOH
:KHQWKHUDGLRJUDSK\VFKHGXOHDSSOLHGWRWKHH[LVWLQJZHOGLVXQNQRZQDMRLQWHIILFLHQF\RIVKDOOEHXVHG
; FVKDOOEHFKDQJHGWRUHDG³2SHUDWLRQDWWHPSHUDWXUHVRYHUƒ& ƒ) ´
; 7KHUXOHVRIIRUULYHWHGWDQNVGRQRWFRYHUGXSOH[VWDLQOHVVVWHHOWDQNV
; %ULWWOH)UDFWXUH&RQVLGHUDWLRQV
; ,Q WKH DSSOLFDEOH $3, HGLWLRQ DQG DGGHQGXP IRU GXSOH[ VWDLQOHVV VWHHO WDQNV LV WK HGLWLRQ
$GGHQGXPRUODWHU
; GRHVQRWDSSO\WRGXSOH[VWDLQOHVVVWHHOWDQNV
; 7KHUXOHVRIVKDOOEHUHSODFHGZLWKWKHIROORZLQJ7DQNVFRQVWUXFWHGRIGXSOH[VWDLQOHVVVWHHOVZKRVH
WRXJKQHVVWHVWLQJRUWHVWLQJH[HPSWLRQFRQIRUPHGWR$3,6HFWLRQ;PD\EHFRQVLGHUHGWREHDGHTXDWHO\
WRXJKIRUFRQWLQXHGRSHUDWLRQ
;
;
$3,67$1'$5'
; ,QVSHFWLRQ
1R&KDQJHVWR6HFWLRQ
; 0DWHULDOV
; ,QDGGUHIHUHQFHWR$670$DQG$
; 6WUXFWXUDO VHFWLRQV PD\ EH VKDSHV IDEULFDWHG IURP SODWH 3ODWH DQG VWUXFWXUDO PDWHULDO VKDOO PHHW$3, 6HFWLRQ;
; 'HVLJQ&RQVLGHUDWLRQVIRU5HFRQVWUXFWHG7DQNV
,QDQGWKHDOORZDEOHVWUHVVVKDOOEHUHYLVHGWRPHHWWKHDOORZDEOHVWUHVVHVRI$3,$QQH[;
; 7DQN5HSDLUDQG$OWHUDWLRQ
; ,QDSSO\LQJWRIDEULFDWLRQDQGFRQVWUXFWLRQUHTXLUHPHQWV$3,6HFWLRQV;WKURXJK;VKDOOEH
PHWDVDSSOLFDEOHH[FHSWDVSHUPLWWHGLQ;RIWKLVDQQH[
; +RWWDSVIRUGXSOH[VWDLQOHVVVWHHOV UHIHUHQFHVHFWLRQ DUHQRWDGGUHVVHGE\WKLVDQQH[
; 'LVPDQWOLQJDQG5HFRQVWUXFWLRQ
; ,QZHOGLQJVKDOODOVRPHHWWKHUHTXLUHPHQWVRI$3,6HFWLRQ;
; &DUERQDUFFXWWLQJVKDOOQRWEHXVHGH[FHSWZKHQDJUHHGWRLQZULWLQJE\WKH3XUFKDVHUDVDQH[FHSWLRQWR
;IRUFHUWDLQGLVPDQWOLQJRSHUDWLRQV
; 7KHVWRUDJHUHTXLUHPHQWVRI$3,6HFWLRQ;VKDOOEHPHW
; :KHQVSHFLILHGE\WKH3XUFKDVHUWKHUHTXLUHPHQWVRI$3,6HFWLRQ;VKDOOEHPHW
; :HOGLQJ
:HOGLQJVKDOODOVRPHHWWKHUHTXLUHPHQWVRI$3,6HFWLRQV;DQG;
; ([DPLQDWLRQDQG7HVWLQJ
; $Q\UHIHUHQFHWRPDJQHWLFSDUWLFOHPHWKRGVKDOOEHUHSODFHGZLWKWKHOLTXLGSHQHWUDQWPHWKRG
; ,QWKHTXDOLW\RIWHVWZDWHUVKDOOPHHW$3,6HFWLRQ;
; $QQH[HV
$QQH[)1'(5HTXLUHPHQWV6XPPDU\DQ\UHIHUHQFHWRPDJQHWLFSDUWLFOHPHWKRGVKDOOEHUHSODFHGZLWKWKHOLTXLG
SHQHWUDQWPHWKRG
$QQH[<
LQIRUPDWLYH
%LEOLRJUDSK\
$OWKRXJKQRWFLWHGLQWKLVVWDQGDUGWKHIROORZLQJSXEOLFDWLRQPD\EHRILQWHUHVW
$3,5HFRPPHQGHG3UDFWLFH s
$3,6WDQGDUG es n
$16,$:6= a et n
nst
ase
t n
el n an
nspe t n
pe at n
et
l
a ntenan e an
tt n an All e
<
esses
nspe t n
e m nal an
an
a l t es
200 Massachusetts Avenue, NW
Suite 1100
Washington, DC 20001-5571
USA
202-686-8000
3URGXFW1R &