COREALCREDIT BANK AG
COREALCREDIT BANK AG
COREALCREDIT BANK AG
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withholding under FATCA, or (b) any FFI through which payment on such Notes is made is not a<br />
Participating FFI or otherwise exempt from FATCA withholding.<br />
The application of FATCA to interest, principal or other amounts paid with respect to the Notes is not clear.<br />
If an amount in respect of U.S. withholding tax were to be deducted or withheld from interest, principal or<br />
other payments on the Notes as a result of FATCA, none of the Issuer, any Guarantor, any paying agent or<br />
any other person would, pursuant to the Terms and Conditions of the Notes be required to pay additional<br />
amounts as a result of the deduction or withholding of such tax.<br />
As a result, investors may, if FATCA is implemented as currently proposed by the IRS, receive less interest<br />
or principal than expected. Holders of the Notes should consult their own tax advisers on how these rules<br />
may apply to payments they receive under the Notes.<br />
The application of FATCA to Notes issued or materially modified on or after January 1, 2013 (or whenever<br />
issued, in the case of Notes treated as equity for U.S. federal tax purposes) may be addressed in the relevant<br />
Final Terms or a supplement to this Base Prospectus, as applicable.<br />
FATCA IS PARTICULARLY COMPLEX AND ITS APPLICATION TO THE ISSUER, ANY<br />
GUARANTOR, THE NOTES AND THE HOLDERS IS UNCERTAIN AT THIS TIME. EACH HOLDER<br />
OF NOTES SHOULD CONSULT ITS OWN TAX ADVISER TO OBTAIN A MORE DETAILED<br />
EXPLANATION OF FATCA AND TO LEARN HOW THIS LEGISLATION MIGHT AFFECT EACH<br />
HOLDER IN ITS PARTICULAR CIRCUMSTANCE.<br />
Legality of Purchase<br />
Potential investors of the Notes should be aware that the lawfulness of the acquisition of the Notes<br />
might be subject to legal restrictions potentially affecting the validity of the purchase. Neither the<br />
Issuer, any Dealer nor any of their respective affiliates has or assumes responsibility for the<br />
lawfulness of the acquisition of the Notes by a prospective purchaser of the Notes, whether under<br />
the laws of the jurisdiction of its incorporation or the jurisdiction in which it operates (if different). A<br />
prospective purchaser may not rely on the Issuer, any Dealer or any of their respective affiliates in<br />
connection with its determination as to the legality of its acquisition of the Notes.<br />
Change of Law<br />
The Terms and Conditions of the Notes are based on German law in effect as at the date of this<br />
Prospectus. No assurance can be given as to the impact of any possible judicial decision or<br />
change to German law or administrative practice after the date of this Prospectus.<br />
Risks Relating to Specific Types of Notes<br />
Fixed Rate Notes<br />
A holder of Fixed Rate Notes is exposed to the risk that the price of such Notes falls as a result of<br />
changes in the market interest rate. While the nominal interest rate of Fixed Rate Notes as<br />
specified in the applicable Final Terms is fixed during the term of such Note, the current interest<br />
rate on the capital market ("market interest rate") typically changes on a daily basis. As the market<br />
interest rate changes, the price of Fixed Rate Notes regularly changes, too, but in the opposite<br />
direction. If the market interest rate increases, the price of Fixed Rate Notes typically falls, until the<br />
yield of such Notes is approximately equal to the market interest rate of comparable issues. If the<br />
market interest rate falls, the price of Fixed Rate Notes typically increases, until the yield of such<br />
Notes is approximately equal to the market interest rate. The holder of Notes is therefore exposed<br />
to the risk of an unfavourable development of market interest rate which may materialise if the<br />
holder sells the Notes prior to the final maturity of such Notes. If the holder decides to hold the<br />
Notes until final maturity the Notes will be redeemed at the amount set out in the relevant Final<br />
Terms.<br />
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