&KDSWHU

(QJLQH6\VWHPV
7RSLFV
 (QJLQHV
 )XHO,QMHFWLRQ6\VWHPV
 $LU,QWDNH6\VWHPV
 /XEULFDWLRQ6\VWHPV
 &RROLQJ6\VWHPV

7RKHDUDXGLRFOLFNRQWKHER[

2YHUYLHZ
,QVSHFWLQJDQGUHSOHQLVKLQJFRRODQWDQGRLOOHYHOVDQGFOHDQLQJDLUILOWHUVDUHSDUWRI
RSHUDWRUSUHYHQWLYHPDLQWHQDQFH7RXQGHUVWDQGWKHSXUSRVHRIWKHVHLQVSHFWLRQV\RX
PXVWXQGHUVWDQGWKHRSHUDWLQJSULQFLSOHVRIDXWRPRWLYHDQGFRQVWUXFWLRQHTXLSPHQW
7KLVFKDSWHUFRYHUVWKHEDVLFSULQFLSOHVRIHQJLQHVIXHOV\VWHPVDLULQWDNHV\VWHPV
OXEULFDWLRQV\VWHPVDQGFRROLQJV\VWHPVRQWKHHTXLSPHQWXVHGE\WKH1DY\DQGWKH
1DYDO&RQVWUXFWLRQ)RUFH1&)

2EMHFWLYHV
:KHQ\RXKDYHFRPSOHWHGWKLVFKDSWHU\RXZLOOEHDEOHWRGRWKHIROORZLQJ
 8QGHUVWDQGWKHSULQFLSOHVRIHQJLQHV
 8QGHUVWDQGWKHSULQFLSOHVRIIXHOLQMHFWLRQV\VWHPV
 8QGHUVWDQGWKHSULQFLSOHVRIDLULQWDNHV\VWHPV
 8QGHUVWDQGWKHSULQFLSOHVRIOXEULFDWLRQV\VWHPV
 8QGHUVWDQGWKHSULQFLSOHVRIFRROLQJV\VWHPV

3UHUHTXLVLWHV
1RQH

1$9('75$$ 
7KLVFRXUVHPDSVKRZVDOORIWKHFKDSWHUVLQ(TXLSPHQW2SHUDWRU%DVLF7KHVXJJHVWHG
WUDLQLQJRUGHUEHJLQVDWWKHERWWRPDQGSURFHHGVXS6NLOOOHYHOVLQFUHDVHDV\RXDGYDQFH
RQWKHFRXUVHPDS

0LVFHOODQHRXV(TXLSPHQW  (
3DYLQJ2SHUDWLRQVDQG(TXLSPHQW  4
8
5LJJLQJ2SHUDWLRQV 
,
&UDQHV 
3
5ROOHUV  0
'R]HUV  (
6FUDSHUV  1

*UDGHUV  7

'LWFKHUV 

([FDYDWRUV 

%DFNKRH/RDGHUV  2
)URQW(QG/RDGHUV  3
)RUNOLIWV  (

7UXFN'ULYLQJ6DIHW\  5
$
7UXFN7UDFWRUVDQG7UDLOHUV 
7
7DQN7UXFNV 
2
'XPS7UXFNV  5
0HGLXP7DFWLFDO9HKLFOH5HSODFHPHQWV  
(DUWKZRUN2SHUDWLRQV  

(OHFWULFDODQG+\GUDXOLF6\VWHPV 
%
&KDVVLV6\VWHPV 
$
3RZHU7UDLQ  6
(QJLQH6\VWHPV  ,
7UDQVSRUWDWLRQ2SHUDWLRQV  &




1$9('75$$ 
)HDWXUHVRIWKLV0DQXDO
7KLVPDQXDOKDVVHYHUDOIHDWXUHVZKLFKPDNHLWHDV\WRXVHRQOLQH
x )LJXUHDQGWDEOHQXPEHUVLQWKHWH[WDUHLWDOLFL]HG7KHILJXUHRUWDEOHLVHLWKHU
QH[WWRRUEHORZWKHWH[WWKDWUHIHUVWRLW
x 7KHILUVWWLPHDJORVVDU\WHUPDSSHDUVLQWKHWH[WLWLVEROGDQGLWDOLFL]HG:KHQ
\RXUFXUVRUFURVVHVRYHUWKDWZRUGRUSKUDVHDSRSXSER[GLVSOD\VZLWKWKH
DSSURSULDWHGHILQLWLRQ
x $XGLRDQGYLGHRFOLSVDUHLQFOXGHGLQWKHWH[WZLWKLWDOLFL]HGLQVWUXFWLRQVWHOOLQJ
\RXZKHUHWRFOLFNWRDFWLYDWHLW
x 5HYLHZTXHVWLRQVWKDWDSSO\WRDVHFWLRQDUHOLVWHGXQGHUWKH7HVW<RXU
.QRZOHGJHEDQQHUDWWKHHQGRIWKHVHFWLRQ6HOHFWWKHDQVZHU\RXFKRRVH,I
WKHDQVZHULVFRUUHFW\RXZLOOEHWDNHQWRWKHQH[WVHFWLRQKHDGLQJ,IWKHDQVZHU
LVLQFRUUHFW\RXZLOOEHWDNHQWRWKHDUHDLQWKHFKDSWHUZKHUHWKHLQIRUPDWLRQLV
IRUUHYLHZ:KHQ\RXKDYHFRPSOHWHG\RXUUHYLHZVHOHFWDQ\ZKHUHLQWKDWDUHD
WRUHWXUQWRWKHUHYLHZTXHVWLRQ7U\WRDQVZHUWKHTXHVWLRQDJDLQ
x 5HYLHZTXHVWLRQVDUHLQFOXGHGDWWKHHQGRIWKLVFKDSWHU6HOHFWWKHDQVZHU\RX
FKRRVH,IWKHDQVZHULVFRUUHFW\RXZLOOEHWDNHQWRWKHQH[WTXHVWLRQ,IWKH
DQVZHULVLQFRUUHFW\RXZLOOEHWDNHQWRWKHDUHDLQWKHFKDSWHUZKHUHWKH
LQIRUPDWLRQLVIRUUHYLHZ:KHQ\RXKDYHFRPSOHWHG\RXUUHYLHZVHOHFW
DQ\ZKHUHLQWKDWDUHDWRUHWXUQWRWKHUHYLHZTXHVWLRQ7U\WRDQVZHUWKH
TXHVWLRQDJDLQ

1$9('75$$ 
(1*,1(6
$QHQJLQH)LJXUHLVDGHYLFHWKDW
FRQYHUWVKHDWHQHUJ\LQWRPHFKDQLFDO
SRZHUZKLFKGULYHVWKHYHKLFOHRU
HTXLSPHQW$QLQWHUQDOFRPEXVWLRQHQJLQH
LVDQ\W\SHRIHQJLQHWKDWEXUQVIXHOZLWKLQ
LWVERG\
)XHODQGDLUDUHQHHGHGWRSURGXFHKHDW
HQHUJ\)XHOLVEURNHQGRZQLQWRVPDOO
SDUWLFOHVDSURFHVVNQRZQDVDWRPL]DWLRQ
7KHDWRPL]HGIXHOLVHYHQO\PL[HGZLWK
LQFRPLQJDLU7KLVPL[WXUHLVKLJKO\
FRPEXVWLEOH&RPEXVWLRQLVDFKHPLFDO
UHDFWLRQWKDWRFFXUVZKHQWKHPL[WXUHLV
LJQLWHGLQWKHHQJLQHF\OLQGHU7KHIRUFHRI
WKHFRPEXVWLRQSURGXFHVPHFKDQLFDO )LJXUH±%DVLFHOHPHQWVRIDQ
SRZHU HQJLQH

$SLVWRQF\OLQGHUFRQQHFWLQJURGDQGD
FUDQNVKDIWZRUNWRJHWKHUWRFRQYHUW
reciprocating motion LQWRrotary motion
7KHSLVWRQLVILWWHGWRJOLGHXSDQGGRZQLQ
WKHF\OLQGHUZLWKOLWWOHVLGHFOHDUDQFH
)LJXUH7KHFRPEXVWLRQFKDPEHULV
ORFDWHGRQWRSRIWKHF\OLQGHU,WXVXDOO\
KDVWZRYDOYHVDQLQWDNHYDOYHDQGDQ
H[KDXVWYDOYH7KHFRQQHFWLQJURG
WUDQVPLWVWKHSLVWRQ¶VUHFLSURFDWLQJPRWLRQ
WRWKHFUDQNVKDIW7KHFUDQNVKDIWKDVD
VHFWLRQRIIVHWIURPWKHFHQWHUOLQHRIWKH
VKDIWVRWKDWLW³FUDQNV´ZKHQWKHVKDIWLV
WXUQHG)LJXUH
)LJXUH±3LVWRQLQDF\OLQGHU


1$9('75$$ 
 
)LJXUH±3LVWRQWRFUDQNVKDIWUHODWLRQVKLS

(QJLQH&\FOH
:KHQWKHSLVWRQLVDWWKHKLJKHVWSRLQWLQWKHF\OLQGHULWLVFDOOHGWRSGHDGFHQWHU:KHQ
WKHSLVWRQLVDWLWVORZHVWSRLQWLQWKHF\OLQGHULWLVFDOOHGERWWRPGHDGFHQWHU)LJXUH
VKRZVWKHSRVLWLRQRI³WRSGHDGFHQWHU´7'&DQG³ERWWRPGHDGFHQWHU´%'&


)LJXUH±3LVWRQSRVLWLRQV
$VWKHSLVWRQPRYHVIURPWRSWRERWWRPRUIURPERWWRPWRWRSWKHFUDQNVKDIWURWDWHV
H[DFWO\RQHKDOIRIDUHYROXWLRQ(DFKPRYHPHQWRIWKHSLVWRQIURPWRSWRERWWRPRUIURP
ERWWRPWRWRSLVFDOOHGDVWURNHWKHUHIRUHWKHSLVWRQFRPSOHWHVWZRVWURNHVIRUHYHU\IXOO
FUDQNVKDIWUHYROXWLRQ
7KHIROORZLQJVHTXHQFHRIHYHQWVPXVWRFFXUIRUDQHQJLQHWRRSHUDWH
x ,17$.($FRPEXVWLEOHPL[WXUHLVSXOOHGLQWRWKHF\OLQGHU
x &2035(66,217KHFRPEXVWLEOHPL[WXUHLVFRPSUHVVHGLQWRDVPDOOHUVSDFH
x 32:(57KHFRPSUHVVHGFRPEXVWLEOHPL[WXUHLVLJQLWHGFDXVLQJLWWRH[SDQG
SURGXFLQJPHFKDQLFDOSRZHU
x (;+$8677KHEXUQWJDVHVDUHUHPRYHGIURPWKHF\OLQGHU


1$9('75$$ 
7KHHQJLQHUHSHDWVWKLVVHTXHQFHRIHYHQWVRYHUDQGRYHUWRSURGXFHVXVWDLQDEOH
SRZHU2QHFRPSOHWHVHULHVRIWKHVHHYHQWVLVFDOOHGDF\FOH(QJLQHVKDYHHLWKHUD
IRXUVWURNHF\FOHRUDWZRVWURNHF\FOH0RVWHQJLQHVRSHUDWHRQDIRXUVWURNHF\FOH

)RXU6WURNH&\FOH*DVROLQH(QJLQH
,QWKHIRXUVWURNHF\FOHJDVROLQHHQJLQHWKHUHDUHIRXUVWURNHVRIWKHSLVWRQLQHDFK
F\FOHWZRXSDQGWZRGRZQ7KHIRXUVWURNHVRIDF\FOHDUHLQWDNHFRPSUHVVLRQSRZHU
DQGH[KDXVW$F\FOHRFFXUVGXULQJWZRUHYROXWLRQVRIWKHFUDQNVKDIW
,QWDNH6WURNH±7KHLQWDNHVWURNHEHJLQVZKHQWKHSLVWRQLVDWWRSGHDGFHQWHU$VWKH
SLVWRQPRYHVGRZQZDUGVWKHLQWDNHYDOYHRSHQV7KHGRZQZDUGPRYHPHQWRIWKH
SLVWRQFUHDWHVDYDFXXPLQWKHF\OLQGHUFDXVLQJWKHIXHODQGDLUPL[WXUHWREHGUDZQ
WKURXJKWKHLQWDNHSRUWDQGLQWRWKHFRPEXVWLRQFKDPEHU$VWKHSLVWRQUHDFKHVERWWRP
GHDGFHQWHUWKHLQWDNHYDOYHFORVHV
&RPSUHVVLRQ6WURNH±7KHFRPSUHVVLRQVWURNHEHJLQVZKHQWKHSLVWRQLVDWERWWRP
GHDGFHQWHU$VWKHSLVWRQPRYHVXSXSZDUGVLWFRPSUHVVHVWKHIXHODQGDLUPL[WXUH
6LQFHERWKWKHLQWDNHDQGH[KDXVWYDOYHVDUHFORVHGWKHIXHODQGDLUPL[WXUHFDQQRW
HVFDSH,WLVFRPSUHVVHGWRDIUDFWLRQRILWVRULJLQDOYROXPH
3RZHU6WURNH±7KHSRZHUVWURNHEHJLQVZKHQWKHSLVWRQLVDWWRSGHDGFHQWHU7KH
HQJLQHLJQLWLRQV\VWHPFRQVLVWVRIDVSDUNSOXJ7KHVSDUNSOXJHPLWVDQHOHFWULFDODUFDW
WKHWLSWRLJQLWHWKHIXHODQGDLUPL[WXUH:KHQLJQLWHGWKHEXUQLQJJDVHVH[SDQGIRUFLQJ
WKHSLVWRQGRZQ7KHYDOYHVUHPDLQFORVHGVRWKDWDOOWKHIRUFHLVH[HUWHGRQWKHSLVWRQ
([KDXVW6WURNH±7KHH[KDXVWVWURNHEHJLQVZKHQWKHSLVWRQQHDUVWKHHQGRIWKH
SRZHUVWURNHDQGWKHH[KDXVWYDOYHRSHQV$VWKHSLVWRQPRYHVXSZDUGVLWSXVKHVWKH
EXUQWJDVHVRXWRIWKHFRPEXVWLRQFKDPEHUWKURXJKWKHH[KDXVWSRUW$IWHUWKHSLVWRQ
UHDFKHVWRSGHDGFHQWHUWKHH[KDXVWYDOYHFORVHV7KHQH[WF\FOHEHJLQVZKHQWKH
LQWDNHYDOYHRSHQV)LJXUHVKRZVWKHRSHUDWLRQVRIDIRXUVWURNHF\FOHJDVROLQH
HQJLQH


)LJXUH±)RXUVWURNHF\FOHJDVROLQHHQJLQHLQRSHUDWLRQ

1$9('75$$ 
)RXU6WURNH&\FOH'LHVHO(QJLQH
7KHIRXUVWURNHF\FOHGLHVHOHQJLQH)LJXUH
LVVLPLODUWKHIRXUVWURNHJDVROLQH
HQJLQH,WKDVWKHVDPHRSHUDWLQJF\FOH
FRQVLVWLQJRIDQLQWDNHFRPSUHVVLRQ
SRZHUDQGH[KDXVWVWURNH,WVLQWDNHDQG
H[KDXVWYDOYHVDOVRRSHUDWHLQWKHVDPH
PDQQHU7KHIRXUVWURNHF\FOHRIDGLHVHO
HQJLQHLVDVIROORZV
'LHVHO(QJLQH,QWDNH6WURNH±7KHLQWDNH
VWURNHEHJLQVZKHQWKHSLVWRQLVDWWRS
GHDGFHQWHU$VWKHSLVWRQPRYHVGRZQ
WKHLQWDNHYDOYHRSHQV7KHGRZQZDUG
PRYHPHQWRIWKHSLVWRQGUDZVDLULQWRWKH
F\OLQGHU$VWKHSLVWRQUHDFKHVERWWRP 
GHDGFHQWHUWKHLQWDNHYDOYHFORVHV )LJXUH±)RXUVWURNHF\FOHGLHVHO
HQJLQH
'LHVHO(QJLQH&RPSUHVVLRQ6WURNH±7KHFRPSUHVVLRQVWURNHEHJLQVZKHQWKHSLVWRQLV
DWERWWRPGHDGFHQWHU$VWKHSLVWRQPRYHVXSZDUGVWKHDLULVFRPSUHVVHGWRDVPXVK
DVSRXQGVSHUVTXDUHLQFKSVLDWDWHPSHUDWXUHDSSUR[LPDWHO\)ƒ
'LHVHO(QJLQH3RZHU6WURNH±7KHSRZHUVWURNHEHJLQVZKHQWKHSLVWRQLVDWWRSGHDG
FHQWHU7KHHQJLQH¶VIXHOLQMHFWLRQV\VWHPGHOLYHUVIXHOLQWRWKHFRPEXVWLRQFKDPEHU
7KHIXHOLVLJQLWHGE\WKHKHDWRIWKHFRPSUHVVLRQ7KHH[SDQGLQJIRUFHRIWKHEXUQLQJ
JDVHVSXVKHVWKHSLVWRQGRZQZDUGVSURYLGLQJSRZHUWRWKHFUDQNVKDIW7KHGLHVHOIXHO
ZLOOFRQWLQXHWREXUQWKURXJKWKHHQWLUHSRZHUVWURNHDPRUHFRPSOHWHEXUQLQJRIIXHO
7KHJDVROLQHHQJLQHKDVDSRZHUVWURNHZLWKUDSLGFRPEXVWLRQLQWKHEHJLQQLQJEXW
OLWWOHWRQRFRPEXVWLRQDWWKHHQG
'LHVHO(QJLQH([KDXVW6WURNH±7KHH[KDXVWVWURNHEHJLQVZLWKWKHSLVWRQDWERWWRP
GHDGFHQWHU$VWKHSLVWRQPRYHXSZDUGVWKHH[KDXVWYDOYHRSHQV7KHEXUQWJDVHV
DUHSXVKHGRXWWKURXJKWKHH[KDXVWSRUW$VWKHSLVWRQUHDFKHVWRSGHDGFHQWHUWKH
H[KDXVWYDOYHFORVHVDQGWKHLQWDNHYDOYHRSHQV7KHHQJLQHLVQRZUHDG\WREHJLQWKH
QH[WF\FOH.)LJXUHVKRZVWKHRSHUDWLRQRIIRXUVWURNHF\FOHRIDGLHVHOHQJLQH

)LJXUH±)RXUVWURNHF\FOHGLHVHOHQJLQHLQRSHUDWLRQ

1$9('75$$ 
7KHSULPDU\GLIIHUHQFHVEHWZHHQDGLHVHOHQJLQHDQGDJDVROLQHHQJLQHDUHDVIROORZV
x ,QDGLHVHOHQJLQHWKHIXHODQGDLUPL[WXUHLVLJQLWHGE\WKHKHDWJHQHUDWHGE\WKH
FRPSUHVVLRQVWURNHZKLOHDJDVROLQHHQJLQHXVHVDQLJQLWLRQV\VWHPWRLJQLWHIXHO
DQGDLU
x 7KHIXHODQGDLUPL[WXUHLQDGLHVHOHQJLQHLVFRPSUHVVHGWRDERXWRQHWZHQWLHWK
RILWVRULJLQDOYROXPHZKLOHLQDJDVROLQHHQJLQHWKHIXHODQGDLUPL[WXUHLVRQO\
FRPSUHVVHGWRDERXWRQHHLJKWKRILWVRULJLQDOYROXPH$GLHVHOHQJLQHPXVW
FRPSUHVVWKHPL[WXUHPRUHWLJKWO\WRJHQHUDWHHQRXJKKHDWWRLJQLWHWKHIXHODQG
DLUPL[WXUH7KHFRQWUDVWEHWZHHQWKHWZRHQJLQHVLVVKRZQLQ)LJXUH

)LJXUH±'LHVHODQGJDVROLQHHQJLQHVFRPSUHVVLRQVWURNHV
x $GLHVHOHQJLQHWDNHVLQRQO\DLUWKURXJKWKHLQWDNHSRUW$QLQMHFWLRQV\VWHP
GHOLYHUVIXHOGLUHFWO\LQWRWKHFRPEXVWLRQFKDPEHUZKHUHLWLVWKHQPL[HGZLWKDLU
$JDVROLQHHQJLQHPL[HVWKHIXHODQGDLULQWKHLQWDNHPDQLIROGEHIRUHLWUHDFKHV
WKHFRPEXVWLRQFKDPEHU7KLVFRQWUDVWLQVKRZQLQ)LJXUH


)LJXUH±'LHVHODQGJDVROLQHHQJLQHVLQWDNHVWURNHV
x $GLHVHOHQJLQHFRQWUROVWKHHQJLQHVSHHGDQGSRZHURXWSXWE\WKHTXDQWLW\RI
IXHOGHOLYHUHGWRWKHFRPEXVWLRQFKDPEHU7KHDPRXQWRIDLULVFRQVWDQW7KH
JDVROLQHHQJLQHUHJXODWHVWKHVSHHGDQGSRZHURXWSXWE\OLPLWLQJWKHDLUDQGIXHO
PL[WXUHHQWHULQJWKHHQJLQH


1$9('75$$ 
$GLHVHOHQJLQHLVPRUHHIILFLHQWWKDQDJDVROLQHHQJLQH,WGRHVQRWUHTXLUHDQLJQLWLRQ
V\VWHPEHFDXVHLWJHQHUDWHVKHDWE\WKHKLJKHUFRPSUHVVLRQ,WLVPRUHIXHOHIILFLHQW
EHFDXVHLWEXUQVIXHOFRPSOHWHO\$GLHVHOHQJLQHDOVRKDVJUHDWHUWRUTXHEHFDXVHRI
WKHSRZHUGHYHORSHGE\WKHKLJKFRPSUHVVLRQUDWLR

7ZR6WURNH&\FOH'LHVHO(QJLQH
7KHWZRVWURNHF\FOHGLHVHOHQJLQH)LJXUH
KDVWKHVDPHRSHUDWLQJSULQFLSOHVDV
DQ\RWKHULQWHUQDOFRPEXVWLRQHQJLQH,W
DOVRKDVWKHVDPHDGYDQWDJHVWKDWGLHVHO
HQJLQHVKDYHRYHUJDVROLQHHQJLQHV
$OWKRXJKWKHWZRVWURNHF\FOHGLHVHO
HQJLQHGRHVQRWSURGXFHDVPXFKSRZHU
DVWKHIRXUVWURNHGLHVHOHQJLQHLWUXQV
PRUHVPRRWKO\EHFDXVHDWZRVWURNHF\FOH
GLHVHOHQJLQHJHQHUDWHVDSRZHUVWURNH
HDFKWLPHWKHSLVWRQPRYHVGRZQZDUG
RQFHIRUHDFKFUDQNVKDIWUHYROXWLRQ
7KHWZRVWURNHF\FOHGLHVHOHQJLQHDOVR
KDVDOHVVFRPSOLFDWHGYDOYHWUDLQEHFDXVH
LWGRHVQRWKDYHDQLQWDNHYDOYH,QVWHDGLW 
UHTXLUHVDVXSHUFKDUJHUWRIRUFHDLULQDQG )LJXUH±7ZRVWURNHF\FOHGLHVHO
H[KDXVWJDVHVRXWRIWKHF\OLQGHU7KLV HQJLQH
PHWKRGLVFDOOHGVFDYHQJLQJ
6FDYHQJLQJEHJLQVZKHQWKHSLVWRQLVDWERWWRPGHDGFHQWHUWKHH[KDXVWYDOYHLVRSHQ
DQGWKHLQWDNHSRUWVDUHXQFRYHUHG7KHVXSHUFKDUJHUIRUFHVDLULQWRWKHF\OLQGHU$VWKH
DLULVIRUFHGLQWKHEXUQWJDVHVIURPWKHSUHYLRXVRSHUDWLQJF\FOHDUHIRUFHGRXW
&RPSUHVVLRQ6WURNH±$VWKHSLVWRQPRYHVWRZDUGVWRSGHDGFHQWHULWFRYHUVWKH
LQWDNHSRUWV7KHH[KDXVWYDOYHFORVHVVHDOLQJWKHXSSHUF\OLQGHU$VWKHSLVWRQ
FRQWLQXHVXSZDUGVWKHDLULQWKHF\OLQGHULVWLJKWO\FRPSUHVVHG$VLQWKHIRXUVWURNH
F\FOHGLHVHOWKHFRPSUHVVLRQJHQHUDWHVDWUHPHQGRXVDPRXQWRIKHDW
3RZHU6WURNH±$VWKHSLVWRQUHDFKHVWRSGHDGFHQWHUWKHFRPSUHVVLRQVWURNHHQGV
7KHHQJLQH¶VIXHOLQMHFWLRQV\VWHPGHOLYHUVIXHOLQWRWKHF\OLQGHU7KHKHDWRIWKH
FRPSUHVVLRQLJQLWHVWKHIXHODQGDLUPL[WXUH7KHEXUQLQJJDVHVSXVKWKHSLVWRQGRZQ
JLYLQJSRZHUWRWKHFUDQNVKDIW7KHSRZHUVWURNHHQGVZKHQWKHSLVWRQJHWVGRZQWRWKH
SRLQWZKHUHWKHLQWDNHSRUWVDUHXQFRYHUHGDQGWKHH[KDXVWYDOYHRSHQVDQG
VFDYHQJLQJEHJLQVDJDLQ)LJXUHVKRZVWKHRSHUDWLRQRIDWZRVWURNHF\FOHRID
GLHVHOHQJLQH

1$9('75$$ 
 
)LJXUH±7ZRVWURNHF\FOHGLHVHOHQJLQHLQRSHUDWLRQ
9DOYH7UDLQ±9DOYHWLPLQJDQGVHTXHQFH
LVFULWLFDO,IWKHH[KDXVWYDOYHRSHQVLQWKH
PLGGOHRIWKHLQWDNHVWURNHEXUQWJDVHV
ZLOOEHGUDZQLQWRWKHFRPEXVWLRQFKDPEHU
DQGPL[HGZLWKIUHVKIXHODQGDLU7KLV
PL[WXUHZRXOGQRWEHFRPEXVWLEOH$WZR
VWURNHF\FOHHQJLQHLVHTXLSSHGZLWKD
YDOYHWUDLQWRSURSHUO\RSHUDWHWKHYDOYHV
)LJXUH
7KHFDPVKDIWVKRZQLQ)LJXUHLV
GHVLJQHGWRURWDWHZLWKWKHFUDQNVKDIW
WKURXJKWLPLQJJHDUV$VWKHFDPOREH
URWDWHVLWSXVKHVXSRQWKHOLIWHU7KHFDP
OREHSXVKHVWKHYDOYHRSHQDJDLQVWWKH
SUHVVXUHRIDVSULQJ$VWKHFDPOREH
URWDWHVDZD\IURPWKHOLIWHUWKHYDOYH
VSULQJSXOOVWKHYDOYHFORVHG7KHSURSHU
SRVLWLRQLQJRIWKHFDPOREHVRQWKH
FDPVKDIWHVWDEOLVKHVDVHTXHQFHIRUWKH )LJXUH±9DOYHWUDLQ
LQWDNHDQGH[KDXVWYDOYHV

7HVW\RXU.QRZOHGJH6HOHFWWKH&RUUHFW5HVSRQVH
 $WRPL]DWLRQLVWKHBBBBBBB

$ WKHSURFHVVRIEUHDNLQJGRZQIXHOLQWRVPDOOSDUWLFOHV
% WKHSURFHVVRIEUHDNLQJGRZQDLULQWRVPDOOHUSDUWLFOHV
& WKHFKHPLFDOUHDFWLRQWKDWRFFXUVZKHQIXHODQGDLULVPL[HG
' WKHFKHPLFDOUHDFWLRQWKDWRFFXUVZKHQIXHODQGDLULVLJQLWHG

1$9('75$$ 
 7KHPRYHPHQWRIDSLVWRQIURPWRSWRERWWRPRUIURPERWWRPWRWRSLVNQRZQDV
BBBBBBB

$ WRSGHDGFHQWHU
% ERWWRPGHDGFHQWHU
&WLPLQJ
'DVWURNH

 7UXHRU)DOVH,QDIRXUVWURNHF\FOHJDVROLQHHQJLQHDF\FOHRFFXUVGXULQJIRXU
UHYROXWLRQVRIWKHFUDQNVKDIW

$7UXH
%)DOVH

 7UXHRU)DOVH$GLHVHOHQJLQHKDVDQLJQLWLRQV\VWHP

$7UXH
%)DOVH

 7UXHRU)DOVH7KHWZRVWURNHF\FOHGLHVHOHQJLQHKDVDQLQWDNHYDOYH

$7UXH
%)DOVH

)8(/,1-(&7,216<67(06
7KHIXHOLQMHFWLRQV\VWHPVHUYHVWKUHHIXQFWLRQVGHOLYHUSURSHUDPRXQWRISUHVVXUL]HG
IXHOWRWKHHQJLQHF\OLQGHUVFORVHO\FRQWUROWKHIXHODLUUDWLRDQGDWRPL]HIXHOVRWKDWLW
ZLOOPL[ZLWKWKHDLUWREHFRPHDFRPEXVWLEOHPL[WXUH7KHPDMRUFRPSRQHQWVRIIXHO
LQMHFWLRQV\VWHPVDUHIXHOIXHOWDQNIXHOOLQHVSXPSVDQGLQMHFWRUV

)XHO
)XHOLVGHILQHGDVDQ\FKHPLFDOFRPSRXQGWKDWFDQEXUQDQGSURGXFHHQHUJ\0RVW
IXHOVDUHFRPSRXQGVRIK\GURJHQDQGFDUERQFDOOHGK\GURFDUERQV7KHPRVW
FRPPRQO\XVHGIXHOVLQLQWHUQDOFRPEXVWLRQHQJLQHVDUHJDVROLQHDQGGLHVHO

*DVROLQH
*DVROLQHLVDE\SURGXFWRISHWUROHXP7ZRW\SHVRIJDVROLQHDUHXVHGOHDGHGDQG
XQOHDGHG
/HDGHGJDVROLQHKDVDKLJKHURFWDQHUDWLQJWKDQXQOHDGHGJDVROLQH,WLVDOVRPRUH
HIIHFWLYHDVDYDOYHDQGYDOYHVHDWOXEULFDQW/HDGHGJDVROLQHKDVDOPRVWEHHQ
GLVFRQWLQXHGEHFDXVHHQJLQHVWKDWXVHLWHPLWDJUHDWDPRXQWRIK\GURFDUERQVWKDWDUH
KDUPIXOWRWKHDWPRVSKHUH
(QJLQHVWKDWXVHXQOHDGHGJDVROLQHHPLWIHZHUK\GURFDUERQVDQGKDYHIHZHU
FRPEXVWLRQFKDPEHUGHSRVLWV,QDGGLWLRQXQOHDGHGJDVROLQHSURYLGHVDORQJHUOLIHIRU
VSDUNSOXJVH[KDXVWV\VWHPVDQGIXHOLQMHFWRUV,QWHUHVWLQJO\XQOHDGHGJDVROLQH
HQJLQHVHPLWVDERXWWKHVDPHDPRXQWRIFDUERQPRQR[LGHDQGQLWURJHQR[LGHDV
OHDGHGJDVROLQH

1$9('75$$ 
 127(
7KHRFWDQHQXPEHULVWKHPHDVXUHPHQWRIJDVROLQH¶VDELOLW\WREXUQHYHQO\DQGUHVLVW
VSRQWDQHRXVFRPEXVWLRQ$NQRFNLQJVRXQGLQDJDVROLQHHQJLQHLVFDXVHGE\JDVHV
EXUQLQJWRRUDSLGO\
&DWDO\VLV&RQYHUWHU±$FDWDO\WLFFRQYHUWHULVSRVLWLRQHGLQWKHH[KDXVWV\VWHPXVXDOO\
EHWZHHQWKHHQJLQHDQGWKHPXIIOHU,WFRQWUROVWKHHPLVVLRQRIFDUERQPRQR[LGHDQG
K\GURFDUERQVSURGXFHGIURPEXUQLQJJDVROLQH$VWKHHQJLQHH[KDXVWSDVVHVWKURXJK
WKHFRQYHUWHUFDUERQPRQR[LGHDQGK\GURFDUERQVDUHR[LGL]HGFRPELQHGZLWK
R[\JHQFKDQJLQJWKHPWRFDUERQGLR[LGHDQGZDWHU7KLVR[LGDWLRQFDXVHVWKHRXWHU
VKHOORIWKHFRQYHUWHUWRRSHUDWHFRQVLVWHQWO\DWWHPSHUDWXUHVWKDWDUHVHYHUDOKXQGUHG
GHJUHHVKLJKHUWKDQWKHUHVWRIWKHH[KDXVWV\VWHP7KHRXWHUVKHOORIWKHFDWDO\WLF
FRQYHUWHULVQRUPDOO\PDGHRIVWDLQOHVVVWHHOWRFRSHZLWKWKHKLJKRSHUDWLQJ
WHPSHUDWXUHV
$FKHPLFDOFDWDO\VWLVDQHOHPHQWRUFKHPLFDOFRPSRXQGWKDWLQFUHDVHVWKHUHDFWLRQ
EHWZHHQWZRRWKHUFKHPLFDOVZLWKRXWUHDFWLQJZLWKWKHP,QWKLVFDVHWKHFDWDO\VWLQWKH
FDWDO\WLFFRQYHUWHULQFUHDVHVWKHUHDFWLRQEHWZHHQR[\JHQDQGWKHKDUPIXOFDUERQ
PRQR[LGHDQGK\GURFDUERQVWRSURGXFHKDUPOHVVFDUERQGLR[LGHDQGZDWHUHPLVVLRQV
3ODWLQXPDQGSDOODGLXPDUHSUHFLRXVPHWDOVRIWHQXVHGDVFDWDO\VWV6PDOODPRXQWVRI
WKHFDWDO\VWVDUHXVHGWRFRDWWKHVXUIDFHVRIWKHPDWHULDOLQWKHFRQYHUWHU3HOOHWDQG
PRQROLWKLFDUHWZRFRPPRQW\SHVRIFDWDO\WLFFRQYHUWHUV)LJXUH


)LJXUH±&DWDO\WLFFRQYHUWHUV

&$87,21 
7KHXVHRIOHDGHGJDVROLQHLVGHVWUXFWLYHWRDFDWDO\WLFFRQYHUWHU7KHOHDGLQH[KDXVW
FDQFRDWWKHFDWDO\VWDVLWSDVVHVWKURXJKWKHFRQYHUWHU7KLVFRDWLQJFDQFRPSOHWHO\
KDOWWKHRSHUDWLRQRIWKHFDWDO\WLFFRQYHUWHU

'LHVHO)XHO
'LHVHOIXHOFRPHVIURPWKHUHVLGXHRIFUXGHRLO,WLVFROOHFWHGGXULQJWKHSHWUROHXP
UHILQLQJSURFHVVDIWHUWKHPRUHYRODWLOHIXHOVVXFKDVJDVROLQHDQGNHURVHQHKDYHEHHQ
UHPRYHG$VZLWKJDVROLQHWKHHIILFLHQF\RIGLHVHOIXHOYDULHVZLWKWKHW\SHRIHQJLQH
7KHUHILQLQJDQGEOHQGLQJSURFHVVFDQSURGXFHDVXLWDEOHGLHVHOIXHOIRUDOPRVWDQ\
HQJLQHRSHUDWLQJFRQGLWLRQ
'LHVHOIXHOFDQKROGGLUWSDUWLFOHVLQVXVSHQVLRQORQJHUWKDQJDVROLQHEHFDXVHLWLV
KHDYLHUDQGWKLFNHU1RWDOOIRUHLJQPDWWHUFDQEHUHPRYHGGXULQJWKHUHILQLQJSURFHVV
1$9('75$$ 
+DUPIXOPDWWHUVXFKDVGLUWDQGZDWHUFDQDOVRJHWLQWRGLHVHOIXHOGXULQJKDQGOLQJ
:DWHUFDQUXVWWKHLQMHFWLRQV\VWHPFDXVLQJLWWRIDLO'LUWFDQFORJIXHOLQMHFWRUV
FDXVLQJDQHQJLQHWRPLVILUHRUVWRSDOWRJHWKHU7REHVDIHUHPHPEHUWRWDNH
SUHFDXWLRQVZKHQUHIXHOLQJDQGWU\WRSUHYHQWIRUHLJQPDWWHUIURPHQWHULQJWKHIXHOWDQN
+LJKFHWDQHGLHVHOIXHODOORZVHQJLQHVWRVWDUWDWORZWHPSHUDWXUHV+LJKFHQWDQHGLHVHO
SURYLGHVIDVWZDUPXSVZLWKRXWPLVILULQJRUSURGXFLQJZKLWHVPRNH,WDOVRUHGXFHVWKH
IRUPDWLRQRIFDUERQGHSRVLWVDQGHOLPLQDWHVHQJLQHNQRFNLQJ+RZHYHUDWRRKLJKRID
FHWDQHQXPEHUFDQOHDGWRLQFRPSOHWHFRPEXVWLRQDQGH[KDXVWVPRNHLIWKHGHOD\LV
WRRVKRUWWRDOORZIRUSURSHUPL[LQJRIIXHODQGDLU0RVWGLHVHOIXHOUDQJHIURPWR
LQFHWDQHQXPEHUZLWKWKHPLQLPXPIRUPLOLWDU\JUDGHV')DQG')
127(
7KHFHWDQHQXPEHULVWKHPHDVXUHPHQWRIGLHVHO¶VDELOLW\WRSURYLGHIDVWVSRQWDQHRXV
FRPEXVWLRQZLWKVKRUWLJQLWLRQGHOD\$NQRFNLQJVRXQGLQDGLHVHOHQJLQHLVFDXVHGE\
WKHIXHOLJQLWLQJWRRVORZO\
-HW)XHO±<RXPD\EHGHSOR\HGWRVRPHVLWHVDWZKLFKGLHVHOIXHOLVQRWDYDLODEOHDQG
\RXPXVWXVH-(7)8(/7KHWKUHHPDMRUW\SHVRIMHWIXHOXVHGE\WKHPLOLWDU\DUH-3
-(7$DQG-3'212786(-3,1$1<',(6(/(1*,1(7KHPDLQWHQDQFH
VXSHUYLVRUDSSURYHVWKHXVHRI-(7$DQG-3DQGGLUHFWVWKHDPRXQWRIHQJLQHRLO
WKDWPXVWEHDGGHGWRWKHMHWIXHO7KLVPXVWEHGRQHWRLPSURYHWKHOXEULFDWLQJTXDOLWLHV
WKDWSUHYHQWWKHLQMHFWRUSXPSDQGLQMHFWRUVIURPVHL]LQJ

)XHO7DQN
7KHIXHOWDQNVWRUHVIXHOXQWLOLWLVXVHGE\WKHHQJLQH7KHWDQNFDQEHORFDWHG
DQ\ZKHUHRQWKHYHKLFOHWKDWLVSURWHFWHGIURPIO\LQJGHEULVVKLHOGHGIURPFROOLVLRQDQG
QRWOLNHO\WRERWWRPRXW)LJXUH0RVWZKHHOHGYHKLFOHVXVHUHPRYDEOHIXHOWDQNV


)LJXUH±&RPPRQIXHOWDQNORFDWLRQV


1$9('75$$ 
0RVWIXHOWDQNVDUHPDGHRIWKLQVKHHW
PHWDOFRDWHGZLWKDOHDGWLQDOOR\WR
SUHYHQWFRUURVLRQ)LEHUJODVVDQGD
YDULHW\RIPROGHGSODVWLFVDUHDOVRSRSXODU
FRUURVLRQUHVLVWDQWPDWHULDOV7KHZDOOVRI
IXHOWDQNVDUHPDQXIDFWXUHGZLWKULGJHVWR
JLYHWKHPVWUHQJWKDQGLQWHUQDOEDIIOHVWKDW
LQFUHDVHLQWHUQDOVWUHQJWKDQGSUHYHQWWKH
IXHOIURPVORVKLQJ7KHILOOHUSLSHRIIHUVD
FRQYHQLHQWRSHQLQJWRILOOWKHWDQNDQG
SUHYHQWIXHOIURPVSLOOLQJRQWRWKH
SDVVHQJHUHQJLQHRUFDUJR
FRPSDUWPHQWV7KHIXHORXWOHWSLSHLV
ORFDWHGLQVLGHWKHWDQNDQGLWVRSHQLQJLV
DERXWRQHKDOILQFKDERYHWKHERWWRP7KLV
ORFDWLRQDOORZVVHGLPHQWWRIDOOWRWKH
ERWWRPRIWKHIXHOWDQNZLWKRXWEHLQJ 
GUDZQLQWRWKHIXHOV\VWHP )LJXUH±)XHOWDQNFRQVWUXFWLRQ

0RVWIXHOWDQNVKDYHDORFDWLRQRQWRSWRLQVWDOODIXHOJDXJHVHQGLQJXQLW7KLVLV
XVXDOO\DIODQJHGKROH$WKUHDGHGGUDLQSOXJLVQRUPDOO\ORFDWHGDWWKHERWWRPRIWKH
WDQNDQGLVXVHGIRUGUDLQLQJDQGFOHDQLQJWKHWDQN)LJXUHVKRZVWKHFRQVWUXFWLRQ
RIDIXHOWDQN

)XHO3XPS
7KHIXHOSXPSWUDQVIHUVIXHOIURPWKHIXHO
WDQN6HYHUDOW\SHVRIIXHOSXPSVDUH
XVHG7KHPRVWFRPPRQW\SHLVWKH
HOHFWULFIXHOSXPS

(OHFWULF)XHO3XPS
$QHOHFWULFIXHOSXPS)LJXUH
SURYLGHVSRVLWLYHIXHOSUHVVXUH,WLVXVXDOO\
PRXQWHGLQVLGHWKHIXHOWDQNKRZHYHULW
FDQEHSODFHGLQWKHOLQHVIURPWKHWDQNWR
WKHHQJLQH
6RPHHOHFWULFSXPSVDUHRSHUDWHGE\WKH
YHKLFOHHOHFWULFDOV\VWHPZKHQHYHUWKH
LJQLWLRQVZLWFKLVRQ2WKHUVW\SHVRI
HOHFWULFSXPSVDUHHQHUJL]HGE\DQ 
electronic control module (ECM)EHIRUH )LJXUH±(OHFWULFIXHOSXPS
WKHHQJLQHKDVEHHQVWDUWHG
,QJDVROLQHHQJLQHVWKHIXHOWKDWLVWUDQVIHUUHGE\WKHHOHFWULFSXPSPRYHVWKURXJKRQH
ILOWHUDQGWKHQWRWKHLQMHFWRUV
,QGLHVHOHQJLQHVWKHIXHOWKDWLVWUDQVIHUUHGE\WKHHOHFWULFSXPSPRYHVWKURXJKWZR
ILOWHUVDQGWKHQWRDIXHOLQMHFWLRQSXPSKRXVLQJPDQLIROG

1$9('75$$ 
)XHO,QMHFWLRQ3XPS
'LHVHOHQJLQHVKDYHRQHRUPRUHIXHOLQMHFWLRQSXPSV7KHSULPDU\IXQFWLRQRIWKHIXHO
LQMHFWLRQSXPSLVWRWDNHIXHOIURPWKHIXHOPDQLIROGDQGGHOLYHULWXQGHUKLJKSUHVVXUHWR
WKHLQMHFWRUV

)XHO/LQHV
%\FDUU\LQJIXHOIXHOOLQHVFRQQHFWWKHIXHOWDQNWRWKHUHVWRIWKHV\VWHP6RPHIXHO
OLQHVDUHPDGHRIIOH[LEOHUXEEHUWRPRYHZLWKWKHHQJLQHRUJDOYDQL]HGVWHHOFRDWHG
LQWHUQDOO\ZLWKDFRUURVLRQLQKLELWRU2WKHUW\SHVRIIXHOOLQHVDUHPDGHRIQ\ORQRUSODVWLF
WRSUHYHQWWKHIXHOLQMHFWRUVIURPFORJJLQJDQGFRUURGLQJ)XHOOLQHVFDQEHMRLQHGE\
WXEHILWWLQJVRUSXVKRQFRQQHFWRUV

'LHVHO)XHO/LQHV
'LHVHOHQJLQHVKDYHWKUHHW\SHVRIIXHOOLQHVKHDY\ZHLJKWPHGLXPZHLJKWDQG
OLJKWZHLJKW)LJXUH7KHVHIXHOOLQHVKDQGOHYDULRXVDPRXQWRISUHVVXUHDUH
FRQVWUXFWHGGLIIHUHQWO\DQGKDYHVSHFLILFORFDWLRQV
+HDY\ZHLJKW/LQHV±+HDY\ZHLJKWOLQHVKDQGOHYHU\KLJKSUHVVXUHIXHO7KH\DUH
XVXDOO\PDGHRIFRSSHUFRDWHGVWHHOWXELQJDQGDUHORFDWHGEHWZHHQWKHLQMHFWLRQSXPS
DQGWKHLQMHFWLRQQR]]OHV
0HGLXPZHLJKW/LQHV±0HGLXPZHLJKWOLQHVKDQGOHORZRUPRGHUDWHIXHOSUHVVXUH7KH\
DUHPDGHRIQ\ORQRUQHRSUHQHUHLQIRUFHGZLWKDEUDLGHGRXWHUFDVLQJ7KH\DUHORFDWHG
EHWZHHQWKHWDQNDQGWKHLQMHFWLRQSXPS
/LJKWZHLJKW/LQHV±/LJKWZHLJKWOLQHVKDQGOHOLWWOHRUQRIXHOSUHVVXUH7KH\DUHXVHGDV
OHDNRIIOLQHV/LJKWZHLJKWOLQHVDUHPDGHRIP\ODUKRVLQJDQGDUHORFDWHGQHDUWKH
QR]]OHVWDQNRUIXHOSXPS


)LJXUH±'LHVHOIXHOLQMHFWLRQV\VWHP

)XHO)LOWHUV
7KHIXHOLQMHFWLRQV\VWHPLVKLJKO\VHQVLWLYHWRIRUHLJQSDUWLFOHV)XHOILOWHUVSUHYHQW
ZDWHUGLUWDQGUXVWSDUWLFOHVIURPHQWHULQJWKHV\VWHP. &RQWDPLQDWHGIXHOFDQFDXVH
LQFRPSOHWHFRPEXVWLRQVPRN\H[KDXVWHQJLQHNQRFNLQJDQGGLIILFXOWLHVVWDUWLQJWKH
HQJLQH0RVWKHDY\HTXLSPHQWKDVDIXHOSUHVVXUHJDXJHWKDWLQGLFDWHVZKHQWKHILOWHUV
DUHGLUW\

1$9('75$$ 
7KHIXHOILOWHURSHUDWHVE\SDVVLQJIXHO
WKURXJKDSRURXVHOHPHQWWKDWUHPRYHV
SDUWLFOHVODUJHHQRXJKWRFDXVHSUREOHPV
LQWKHV\VWHP3DUWLFOHVDUHRIWHQ
PHDVXUHGLQPLFURQV$PLFURQLVRQH
PLOOLRQWKRIDPHWHU
6RPHILOWHUVVHUYHDVVHGLPHQWERZOV
7KHVHW\SHVRIILOWHUVVHSDUDWHZDWHUDQG
ODUJHUSDUWLFOHVIURPWKHIXHO$IWHU
VHSDUDWLRQWKHZDWHUDQGSDUWLFOHVVHWWOH
WRWKHERWWRPRIWKHERZOZKHUHWKH\FDQ
EHUHPRYHGWKURXJKDGUDLQSOXJ)LJXUH


)LJXUH±)XHOILOWHURSHUDWLRQ

)LOWHUHOHPHQWV)LJXUHFDQEHPDGH

)LJXUH±)XHOILOWHUHOHPHQWV

'LHVHO)XHO)LOWHUV
'LHVHOIXHOFRQWDLQVPRUHDEUDVLYHSDUWLFOHVWKDQJDVROLQHGRHV)RUWKLVUHDVRQPRVW
GLHVHOHQJLQHVKDYHDSULPDU\ILOWHUDQGDVHFRQGDU\ILOWHU)LJXUH7KHVHILOWHUV
DUHQRWLQWHUFKDQJHDEOH7KH\DUHXVXDOO\PDUNHGZLWKWKHOHWWHU³3´RU³6´
3ULPDU\)LOWHU±7KHSULPDU\ILOWHULVPDGHRIDFRDUVHPHWDOHOHPHQW7KLVW\SHRI
HOHPHQWUHPRYHVODUJHSDUWLFOHVUDQJLQJIURPPLFURQVLQVL]H3ULPDU\ILOWHUVRIIHU
ORZIXHOUHVWULFWLRQEHFDXVHWKH\DUHORFDWHGEHWZHHQWKHIXHOWDQNDQGWKHIXHOSXPS
7KHHIIHFWLYHQHVVRIWKHSULPDU\ILOWHULQFUHDVHVWKHOLIHRIWKHVHFRQGDU\ILOWHU

1$9('75$$ 
6HFRQGDU\)LOWHU±7KHVHFRQGDU\ILOWHULVKLJKO\HIIHFWLYHLQUHPRYLQJILQHSDUWLFOHV
UDQJLQJIURPPLFURQVLQVL]H6HFRQGDU\ILOWHUVDUHPDGHRIDSOHDWHGSDSHU
HOHPHQW7KH\DUHXVXDOO\ORFDWHGEHWZHHQWKHIXHOSXPSDQGWKHIXHOLQMHFWLRQSXPS
ZKHUHIXHOUHVWULFWLRQLVQRWDIDFWRU7KHSULPDU\SXUSRVHRIWKHVHFRQGDU\ILOWHULVWR
SURWHFWWKHIXHOLQMHFWLRQSXPS


)LJXUH±3ULPDU\DQGVHFRQGDU\IXHOILOWHUVORFDWLRQV

)XHO,QMHFWRUV
)XHOLQMHFWLRQV\VWHPVFDQKDYHRQHRU
PRUHIXHOVXSSO\GHYLFHVFDOOHGIXHO
LQMHFWRUV)LJXUH)XHOLQMHFWRUVDUH
FRQWUROOHGE\DQ(&07KHFRPSXWHU
V\VWHPVHQGVDQHOHFWULFDOFXUUHQWWR
DFWLYDWHWKHVROHQRLGLQVLGHWKHLQMHFWRU
:KHQWKHVROHQRLGLVDFWLYDWHGWKHLQMHFWRU
QR]]OHRSHQVDQGVTXLUWVDWRPL]HGIXHOLQ
DFRQHVKDSHGSDWWHUQ7KHFRPSXWHU
V\VWHPFRQWUROVWKHIXHODLUUDWLRE\YDU\LQJ
WKHOHQJWKRIWLPHWKDWWKHLQMHFWRUQR]]OH
UHPDLQVRSHQ
,QJDVROLQHHQJLQHVLQMHFWRUVVTXLUWIXHO
LQWRWKHLQWDNHPDQLIROG,QGLHVHOHQJLQHV
IXHOLVGHOLYHUHGGLUHFWO\LQWRWKH 
FRPEXVWLRQFKDPEHU6SULQJSUHVVXUH
FORVHVWKHLQMHFWRUQR]]OHZKHQWKH )LJXUH±)XHOLQMHFWRU
VROHQRLGLVGHDFWLYDWHG

&ROG:HDWKHU6WDUWLQJ$LGV
'LHVHOIXHOHYDSRUDWHVPXFKPRUHVORZO\WKDQJDVROLQHDQGUHTXLUHVPRUHKHDWWR
FDXVHFRPEXVWLRQLQWKHF\OLQGHUV)RUWKLVUHDVRQSUHKHDWHUVDQGVWDUWLQJDLGVFDOOHG
JORZSOXJVDUHLQVWDOOHGRQGLHVHOHQJLQHV

3UHKHDWHUV
3UHKHDWHUVDUHQRUPDOO\LQVWDOOHGLQWKHLQWDNHPDQLIROGKRZHYHULQDWZRVWURNHF\FOH
HQJLQHWKH\DUHSODFHGLQWKHDLUSDVVDJHVVXUURXQGLQJWKHF\OLQGHUV7KHSUHKHDWHU
EXUQVDVPDOOTXDQWLW\RIGLHVHOIXHOLQWKHDLUEHIRUHWKHDLULVGUDZQLQWRWKHF\OLQGHUV
1$9('75$$ 
7KLVEXUQLQJSURFHVVLVDFFRPSOLVKHGE\WKHXVHRIHLWKHUDJORZSOXJRUDQLJQLWLRQFRLO
WKDWSURGXFHVDVSDUNWRLJQLWHDILQHVSUD\RIGLHVHOIXHO7KHUHVXOWLQJKHDWZDUPVWKH
UHPDLQLQJDLUEHIRUHLWLVGUDZQLQWRWKHF\OLQGHUV

*ORZ3OXJV
*ORZSOXJV)LJXUHDQGWKHLQMHFWLRQ
QR]]OHDUHLQVWDOOHGLQWKHSUHFRPEXVWLRQ
FKDPEHURIWKHF\OLQGHUKHDG7KHJORZ
SOXJLVWXUQHGRQZKHQ\RXWXUQRQWKH
LJQLWLRQVZLWFK2QVRPHHTXLSPHQWDOLJKW
RQWKHGDVKERDUGVLJQDOVWKDWWKHJORZ
SOXJLVF\FOLQJZKLFKVLJQDOV\RXWRZDLW
EHWZHHQWRVHFRQGVEHIRUHFUDQNLQJ
WKHHQJLQH7KHKHDWFUHDWHGE\HOHFWULFDO
UHVLVWDQFHLQWKHJORZSOXJKHDWVWKHIXHO
DQGDLUPL[WXUH7KHKHDWJHQHUDWHGE\WKH
JORZSOXJDQGWKHKHDWJHQHUDWHGE\
FRPSUHVVLRQDOORZWKHIXHOWRLJQLWH 
)LJXUH±*ORZSOXJV

7HVW\RXU.QRZOHGJH6HOHFWWKH&RUUHFW5HVSRQVH
 *DVROLQHLVDE\SURGXFWRIBBBBBBB

$FUXGHRLO
%RFWDQH
&SHWUROHXP
'FHWDQH

 ,QWKHGLHVHOHQJLQHZKDWIXHOOLQHVKDQGOHKLJKSUHVVXUHIXHO"

$+HDY\ZHLJKW
%0HGLXPZHLJKW
&/LJKWZHLJKW 
'/HDNRII

 7UXHRU)DOVH*ORZSOXJVDUHQHHGHGRQJDVROLQHHQJLQHVEHFDXVHJDVROLQH
IXHOHYDSRUDWHVVORZO\DQGUHTXLUHVKHDWWRFDXVHFRPEXVWLRQLQWKHF\OLQGHUV

$7UXH
%)DOVH

$,5,17$.(6<67(06
7KHDLULQWDNHV\VWHPSOD\VDFULWLFDOUROHLQVXSSO\LQJDQGFOHDQLQJDLU7KHDLULQWDNH
V\VWHPDOVRIXQFWLRQVDVDVLOHQFHU$LULQWDNHV\VWHPVFRQVLVWRIIRUFHLQGXFWLRQ
V\VWHPVDQGDLUFOHDQHUV

1$9('75$$ 
)RUFH,QGXFWLRQV6\VWHPV
$QHQJLQHQHHGVDVXIILFLHQWDPRXQWRIDLUIRUFRPEXVWLRQ,QDGGLWLRQPRUHDLULQWKH
FRPEXVWLRQFKDPEHUSURGXFHVJUHDWHUHQJLQHSRZHU'HYLFHVVXFKDVEORZHUV
VXSHUFKDUJHUVDQGWXUERFKDUJHUVDUHXVHGWRLQFUHDVHDLULQGXFWHG

%ORZHUV
7KHVFDYHQJLQJSURFHVVXVHGLQWKHWZR
VWRNHF\FOHGLHVHOHQJLQHLVVLPSO\D
FKDUJHRIDLUIRUFHGLQWRWKHF\OLQGHUE\D
EORZHU$VDLULVIRUFHGLQWRWKHF\OLQGHUDOO
WKHEXUQWJDVHVDUHVZHSWRXW7KLVDLU
DOVRKHOSVFRROLQWHUQDOHQJLQHSDUWV
SDUWLFXODUO\WKHH[KDXVWYDOYHV
%ORZHUVXVXDOO\KDYHWZRURWRUVFORVHO\
ILWWHGLQKRXVLQJEROWHGWRWKHHQJLQH
)LJXUH7KHURWDU\PRWLRQRIWKH
URWRUOREHVSURYLGHVFRQWLQXRXVDQG
XQLIRUPGLVSODFHPHQWRIDLU'HSHQGLQJRQ
WKHW\SHRIEORZHUURWRUVFDQKDYHWZRRU

WKUHHOREHV
)LJXUH±%ORZHU

6XSHUFKDUJHUV
6XSHUFKDUJHUVDUHHQJLQHGULYHQDLU
SXPSVWKDWIRUFHDLUDQGIXHOPL[WXUHLQWR
WKHHQJLQH7KHPRVWFRPPRQW\SHRI
VXSHUFKDUJHULVWKHcentrifugal
VXSHUFKDUJHU
&HQWULIXJDO6XSHUFKDUJHU±
7KHFHQWULIXJDOVXSHUFKDUJHU)LJXUH
KDVDQLPSHOOHUHTXLSSHGZLWKFXUYHG
YDQHV7KHLPSHOOHUGUDZVDLULQWRLWV
FHQWHUDQGWKURZVLWRIIDWLWVULP7KHDLULV
WKHQSXVKHGDORQJWKHLQVLGHRIWKH
FLUFXODUKRXVLQJ7KHGLDPHWHURIWKH
KRXVLQJJUDGXDOO\LQFUHDVHVWRWKHRXWOHW
ZKHUHWKHDLULVSXVKHGRXWWRWKHHQJLQH 
LQWDNHV\VWHP )LJXUH±&HQWULIXJDOVXSHUFKDUJHU

1$9('75$$ 
7XUERFKDUJHUV
7KHIRXUVWURNHF\FOHHQJLQHXVHVWZR
PHWKRGVRIDLULQGXFWLRQQDWXUDOO\
DVSLUDWHGDQGWXUERFKDUJHG
7KHQDWXUDOO\DVSLUDWHGV\VWHPGHSHQGV
RQDWPRVSKHULFSUHVVXUHWRNHHSD
FRQVWDQWVXSSO\RIDLULQWKHLQWDNH
PDQLIROG
7KHWXUERFKDUJHU)LJXUHLQVWDOOHG
RQWKHH[KDXVWPDQLIROGLVGHVLJQHGWR
IRUFHDLULQWRWKHF\OLQGHUDQGDLGLQ
VFDYHQJLQJH[KDXVWJDVHV7KH
WXUERFKDUJHUGLIIHUVIURPDVXSHUFKDUJHU
EHFDXVHLWXVHVWKHHQHUJ\IURPWKH
H[KDXVWJDVHVWRGULYHDWXUELQHZKHHO 
ZKHUHDVWKHVXSHUFKDUJHULVHQJLQH
)LJXUH±7XUERFKDUJHU
GULYHQ
7KHKRWH[KDXVWJDVHVIURPWKHHQJLQHJRWKURXJKWKHH[KDXVWLQOHWDFURVVWKHWXUELQH
ZKHHODQGRXWWKHH[KDXVWRXWOHW7KHIRUFHRIWKHH[KDXVWWXUQVWKHWXUELQHZKHHODQG
VKDIW7KLVURWDWHVWKHFRPSUHVVRUZKHHOLPSHOOHUWKDWLVDWWDFKHGWRWKHRSSRVLWHHQG
RIWKHWXUELQHVKDIW$VWKHLPSHOOHUURWDWHVLWGUDZVDLULQWRWKHKRXVLQJWKHDLULV
FRPSUHVVHGDQGIRUFHGLQWRWKHLQWDNHPDQLIROG

$LU&OHDQHUV
$LUFOHDQHUVDUHXVHGWRSUHYHQWIRUHLJQPDWWHUVXFKDVVDQGGXVWDQGOLQWIURP
HQWHULQJWKHLQWDNHV\VWHP&RQWDPLQDWHGDLULQWKHLQWDNHV\VWHPFDQFDXVHHQJLQH
ZHDUSRRUFRPEXVWLRQDQGHQJLQHEUHDNGRZQ,QDGGLWLRQWRVXSSO\LQJFOHDQDLUDLU
FOHDQHUVUHGXFHYLEUDWLRQVRXQGVDQGRWKHUQRLVHVFDXVHGE\DLUHQWHULQJWKHLQWDNH
V\VWHP

7KHPRVWFRPPRQW\SHVRIDLUFOHDQHUV
DUHSUHFOHDQHUVGU\DLUFOHDQHUVGU\
HOHPHQWDLUFOHDQHUVDQGRLOEDWKDLU
FOHDQHUV

3UH&OHDQHUV
3UHFOHDQHUV)LJXUHUHPRYHODUJH
SDUWLFOHVRIGLUWDQGIRUHLJQPDWWHUIURPWKH
DLUEHIRUHLWHQWHUVWKHPDLQDLUFOHDQHU
7KLVDOOHYLDWHVPRVWRIWKHZRUNIRUWKH
PDLQDLUFOHDQHU3UHFOHDQHUVDUHXVHGRQ
HTXLSPHQWRSHUDWLQJXQGHUPHGLXPWR
KHDY\GXVW\FRQGLWLRQV7KH\DUHQRUPDOO\
LQVWDOOHGDWWKHHQGRIDSLSHWKDWH[WHQGV
XSZDUGLQWRWKHDLU7KLVORFDWLRQNHHSV

WKHPLQDQDUHDUHODWLYHO\IUHHRIGXVW
)LJXUH±3UHFOHDQHU

1$9('75$$ 
'U\$LU&OHDQHUV
'U\DLUFOHDQHUV)LJXUHUHPRYH
ODUJHGLUWSDUWLFOHVE\SDVVLQJDLUWKURXJK
OD\HUVRIFORWKDQGIHOW'U\DLUFOHDQHUVDUH
GLUHFWO\DWWDFKHGWRWKHLQWDNHV\VWHPRQ
HQJLQHVWKDWUHTXLUHDVPDOODPRXQWRIDLU


)LJXUH±'U\DLUFOHDQHU

'U\(OHPHQW$LU&OHDQHUV
'U\HOHPHQWDLUFOHDQHUVSURYLGHWZRVWDJHVRIFOHDQLQJSUHFOHDQLQJDQGILOWHULQJ7KH
WZRPRVWFRPPRQO\XVHGGU\HOHPHQWDLUFOHDQHUVDUHWKHFOHDQHUZLWKDQXQORDGLQJ
YDOYHDQGWKHFOHDQHUZLWKDGXVWFXS

&OHDQHUZLWKD'XVW8QORDGLQJ9DOYH±
7KHFOHDQHUZLWKDGXVWXQORDGLQJYDOYH
)LJXUHGLUHFWVDLULQWRLWVSUHFOHDQHU
DVVHPEO\:KHQWKHDLUHQWHUVLWVWULNHVD
VLGHRIDPHWDOVKLHOGZKLFKFUHDWHVD
FHQWULIXJDOIRUFH7KHDLULVSXVKHGDFURVV
WKHIDUHQGRIWKHFOHDQHUKRXVLQJ+HDYLHU
GLUWSDUWLFOHVFRQWLQXHGRZQZDUGVDQGDUH
FROOHFWHGLQWKHGXVWXQORDGHUYDOYH
7KHGXVWXQORDGHUYDOYHLVKHOGFORVHGE\
WKHHQJLQHVXFWLRQZKLOHWKHHQJLQHLV
UXQQLQJ:KHQWKHHQJLQHLVVKXWGRZQ
WKHZHLJKWRIWKHDFFXPXODWHGGLUWKHOSV
RSHQWKHIODSVVRWKHGLUWFDQGURSRXW 
)LJXUH±'U\DLUFOHDQHUZLWK
XQORDGLQJYDOYH

1$9('75$$ 
&OHDQHUZLWKWKH'XVW$LU&XS±
7KHFOHDQHUZLWKWKHGXVWDLUFXS)LJXUH
GLUHFWVDLULQDQGSDVWWLOWHGILQV
ZKLFKFUHDWHVDFHQWULIXJDOIRUFH7KHDLULV
SXVKHGDFURVVWKHIDUHQGRIWKHFOHDQHU
KRXVLQJ7KHIRUFHRIWKHDLUSXVKHVGLUW
WKURXJKDVORWRQWKHWRSRIWKHFOHDQHU
ZKHUHLWHQWHUVWKHGXVWFXS
%RWKW\SHVRISUHFOHDQHUVUHPRYHRYHU
SHUFHQWRIWKHGLUWSDUWLFOHV7KHUHPDLQLQJ
GLUWSDUWLFOHVDUHUHPRYHGDIWHUWKHDLULV
UHGLUHFWHGDQGILOWHUHGWKURXJKDSOHDWHG
SDSHUHOHPHQW 
)LJXUH±'U\DLUFOHDQHUZLWKGXVW
FXS
$VSDUWRISUHYHQWLYHPDLQWHQDQFHRSHUDWRUVDUHUHVSRQVLEOHIRULQVSHFWLQJDQG
FOHDQLQJDLUFOHDQHUV7KHGXVWXQORDGLQJYDOYHVKRXOGEHLQVSHFWHGIRUFUDFNV
FORJJLQJDQGGHWHULRUDWLRQ7KHGXVWFXSVKRXOGEHUHPRYHGDQGZLSHGFOHDQZLWKD
UDJ
7DSSLQJDQGURWDWLQJDILOWHURQWKHKHHORI
\RXUKDQGFDQUHPRYHGXVW$YRLGWDSSLQJ
WKHILOWHURQDKDUGVXUIDFH7KLVFDQ
GDPDJHWKHILOWHUHOHPHQW
:KHQWDSSLQJGRHVQRWUHPRYHWKHGXVW
\RXFDQXVHDFRPSUHVVHGDLUJXQWR
FOHDQDILOWHU:KHQXVLQJFRPSUHVVHGDLU
PRYHWKHFOHDQDLUXSDQGGRZQWKH
SOHDWVEORZLQJIURPLQVLGHWRRXWVLGH
)LJXUH7RSUHYHQWUXSWXULQJWKH
ILOWHUGRQRWDOORZWKHDLUSUHVVXUHWR
H[FHHGSVL
:DWHUFDQDOVREHXVHGWRFOHDQILOWHUV
%HJLQE\EORZLQJRXWWKHGXVWZLWK
FRPSUHVVHGDLU7KHQIOXVKRXWWKH
UHPDLQLQJGXVWIURPLQVLGHWRRXWVLGHZLWK
ZDWHU'RQRWDOORZWKHZDWHUSUHVVXUHWR )LJXUH±&OHDQLQJDQDLUILOWHUZLWK
H[FHHGSVL$IWHUIOXVKLQJLVFRPSOHWH ORZSUHVVXUHGDLU
DOORZWKHILOWHUWRGU\

1$9('75$$ 
)RUDQH[WUHPHO\RLO\ILOWHUILUVWFOHDQWKHILOWHUZLWKWKHFRPSUHVVHGDLURUIOXVKLWZLWK
FOHDQZDWHU7KHQVRDNDQGJHQWO\DJLWDWHWKHILOWHULQDFOHDQLQJVROXWLRQDQGOXNHZDUP
ZDWHU5LQVHWKHILOWHUWKRURXJKO\ZLWKFOHDQZDWHU6KDNHWKHH[FHVVZDWHUIURPWKH
ILOWHUDQGDOORZLWWRDLUGU\5HPHPEHUWRSURWHFWWKHILOWHUIURPIUHH]LQJ.HHSDVSDUH
ILOWHUWRXVHZKLOHWKHZDVKHGRQHLVGU\LQJ
$IWHUWKHILOWHULVFOHDQDQGGU\LQVSHFWLWIRUGDPDJH%HIRUHLQVWDOOLQJWKHILOWHU
WKRURXJKO\FOHDQWKHLQVLGHRIWKHDLUFOHDQHUERG\ZLWKDFOHDQGDPSUDJ
127(
&RQVXOWWKH0DLQWHQDQFH6XSHUYLVRUEHIRUHZDVKLQJDQ\ILOWHUHOHPHQWZLWKZDWHU
$GGLWLRQDOO\QHYHUZDVKDGU\HOHPHQWLQIXHORLORUVROYHQWDQGQHYHUXVHFRPSUHVVHG
DLUWRGU\WKHHOHPHQW

2LO%DWK$LU&OHDQHUV
2LOEDWKDLUFOHDQHUV)LJXUHGUDZDLU
GRZQDFHQWHUWXEH$WWKHERWWRPRIWKH
WXEHLVDQRLOFXS$VDLULVGUDZQLQDQG
UHGLUHFWHGXSZDUGVODUJHUSDUWLFOHVFRPH
LQFRQWDFWZLWKWKHRLODQGEHFRPHWUDSSHG
6PDOOHUSDUWLFOHVWKDWZHUHDEOHWRE\SDVV
WKHRLOFRQWLQXHXSZDUGLQWRDILOWHUHOHPHQW
ZKHUHWKH\DUHUHPRYHGIURPWKHDLU
7KHILOWHUHOHPHQWLVHIIHFWLYHEHFDXVHLWLV
PDGHRIPHWDOZRROVFUHHQVRDNHGZLWK
RLOWKDWKDVEHHQVSUD\HGE\WKHDLUDVLW
SDVVHGWKHRLOFXS

)LJXUH±2LOEDWKDLUFOHDQHU
2SHUDWRUVDUHUHVSRQVLEOHIRUNHHSLQJWKHRLOFXSILOOHGWRWKHSURSHUOHYHO7KH\DUHDOVR
UHVSRQVLEOHIRUGRFXPHQWLQJZKHQWKHRLOLVGLUW\DQGWKLFNWKHUHIRUHXQDEOHWRFOHDQ
SDUWLFOHVIURPWKHDLU
7HVW\RXU.QRZOHGJH6HOHFWWKH&RUUHFW5HVSRQVH
 :KLFKRIWKHIROORZLQJDLUFOHDQHUVKDVDPHWDOVKLHOGWKDWFUHDWHVFHQWULIXJDOIRUFH"

$ &OHDQHUZLWKDGXVWXQORDGLQJYDOYH
% &OHDQHUZLWKDGXVWFXS
& 'U\DLUFOHDQHU
' 2LOEDWKDLUFOHDQHU

/8%5,&$7,216<67(06
(QJLQHVQHHGDSURSHUDPRXQWRIOXEULFDWLRQWRSURSHUO\RSHUDWH7KHOXEULFDWLRQV\VWHP
)LJXUHVXSSOLHVHQJLQHRLOWKURXJKRXWWKHHQWLUHHQJLQH(QJLQHRLOUHGXFHV
IULFWLRQDEVRUEVKHDWFOHDQVDQGVHDOV
$VSDUWRISUHYHQWLYHPDLQWHQDQFHRSHUDWRUVDUHUHVSRQVLEOHIRULQVSHFWLQJWKH
OXEULFDWLRQV\VWHPEHIRUHRSHUDWLQJDSLHFHRIHTXLSPHQW7KHHIIRUWWRLQVSHFWLVHDVLHU

1$9('75$$ 
WKDQH[SODLQLQJWRWKHFKDLQRIFRPPDQGZK\DQHQJLQHRUSDUWRIWKHSRZHUWUDLQ
ORFNHGXSRUVHL]HG


)LJXUH±7\SLFDOHQJLQHOXEULFDWLRQV\VWHP

(QJLQH2LO
(QJLQHSDUWVDUHFRQVWDQWO\PRYLQJDQGFUHDWLQJIULFWLRQE\PHWDOWRPHWDOFRQWDFW
(QJLQHRLODOVRNQRZQDVPRWRURLOKHOSUHGXFHVIULFWLRQE\VHUYLQJDVWKLQFXVKLRQ
EHWZHHQPRYLQJSDUWV(QJLQHRLOFDQDOVRDEVRUEKHDWIURPSLVWRQVF\OLQGHUZDOOVDQG
RWKHUHQJLQHSDUWVWKDWDUHQRWFRROHGE\WKHFRROLQJV\VWHP
,QDGGLWLRQHQJLQHRLOLVDVHDOLQJDJHQW$WKLQILOPRIRLOEHWZHHQWKHSLVWRQULQJVDQG
F\OLQGHUZDOOFDQKHOSVHDOLQHQJLQHFRPSUHVVLRQ
(QJLQHRLOLVDJUHDWFOHDQLQJDJHQW,WKDVDGGLWLYHVWRPDNHLWFOHDQPRUHHIIHFWLYHO\
$VRLOFLUFXODWHVWKHHQJLQHLWWUDSVLPSXULWLHVWKDWFDQFDXVHRYHUKHDWLQJDQG
SUHPDWXUHZHDU)RUHLJQPDWWHUDWWKHERWWRPRIWKHFUDQNFDVHLVHYLGHQFHWKDWWKH
HQJLQHRLOLVFOHDQLQJ

1$9('75$$ 
2LO/HYHO,QGLFDWRU
7KHRLOOHYHOLQGLFDWRULVDURG
NQRZQDVDGLSVWLFN7KH
GLSVWLFNH[WHQGVWKURXJKDWXEH
LQWRWKHFUDQNFDVH)LJXUH
0DUNVRQWKHGLSVWLFN
LQGLFDWHZKHQWKHFUDQNFDVHLV
IXOORULIORZKRZPXFKRLOLV
QHHGHG<RXVKRXOGSHUIRUPWKH
IROORZLQJSURFHGXUHWRWDNHRLO
OHYHOUHDGLQJV
127(
%HIRUHSHUIRUPLQJWKHVHVWHSV
HQVXUHWKDWWKHYHKLFOHLV
SDUNHGRQDIODWVXUIDFH
6WHS 3XOOWKHGLSVWLFNRXW
6WHS :LSHWKHGLSVWLFNZLWK
DUDJ
6WHS 6WLFNWKHGLSVWLFNEDFN
LQ
6WHS 3XOOWKHGLSVWLFNRXW
RQFHDJDLQ9LHZLQJLW )LJXUH±2LOOHYHOLQGLFDWRU
IODWDFURVVIURP\RX
QRWHKRZKLJKWKHRLO
OHYHOLVRQWKH
GLSVWLFN
6RPHHQJLQHVPXVWF\FOHDIHZPLQXWHVEHIRUHWKHRLOOHYHOFDQEHDFFXUDWHO\
PHDVXUHG+RZHYHULWLVDJRRGSUDFWLFHWRFKHFNDQGPDNHVXUHWKHUHLVRLOLQWKH
FUDQNFDVHWKHQIROORZWKHPDQXIDFWXUHU¶VUHFRPPHQGDWLRQV

)XOO)ORZ)LOWHULQJ6\VWHP
7KHIXOOIORZILOWHULQJV\VWHPDOORZVDOOWKH
RLOWRIORZWKURXJKDILOWHUEHIRUHLWUHDFKHV
WKHHQJLQH)LJXUH)XOOIORZILOWHU
V\VWHPVDUHHTXLSSHGZLWKDE\SDVVYDOYH
:KHQWKHILOWHUHOHPHQWEHFRPHVFORJJHG
WKLVUHOLHIYDOYHDOORZVRLOWRE\SDVVWKH
HOHPHQWDQGFLUFXODWHWKHV\VWHP7KLV
SUHYHQWVWKHHQJLQHIURPEHLQJGHSULYHGRI
RLO

2LO)LOWHUV
2LOILOWHUVUHPRYHPRVWRIWKHLPSXULWLHV
WUDSSHGE\RLO&DUWULGJHILOWHUVDQGVHDOHG

³VSLQRQ´ILOWHUVDUHFRPPRQO\XVHG
)LJXUH±)XOOIORZV\VWHP
1$9('75$$ 
&DUWULGJH)LOWHU±7KHFDUWULGJHILOWHU)LJXUHLVDUHPRYDEOHSOHDWHGSDSHUHOHPHQW
VXSSRUWHGE\DFHQWHUWXEH,WILWVLQWRDPHWDOKRXVLQJEROWHGRQWRWKHHQJLQH2LOHQWHUV
IURPWKHRXWVLGHRIWKHILOWHUHOHPHQWDQGSDVVHVWKURXJKWKHFHQWHUWXEHZKHUHLWH[LWV
6HDOHG³6SLQ2Q´)LOWHU±7KHVHDOHG³VSLQRQ´ILOWHU)LJXUHLVGLUHFWO\DWWDFKHGWR
WKHHQJLQHE\DWKUHDGHGILWWLQJ7KHWHUP³VSLQRQ´UHIHUVWRWKHZD\LWLVLQVWDOOHG7KH
VSLQRQILOWHURSHUDWHVLQWKHVDPHPDQQHUDVFDUWULGJHILOWHUKRZHYHULWLVGHSRVHGRI
DVDZKROHXQLW

 
)LJXUH±2LOILOWHUV

+\GUDXOLF)OXLG
+\GUDXOLFV\VWHPVQHHGOXEULFDWLRQDVZHOO+\GUDXOLFIOXLGLVXVHGRQSDUWVWKDWVWHHU
OLIWDQGSXVK0RVWK\GUDXOLFIOXLGVDUHZDWHUEDVHGSHWUROHXPEDVHGRUV\QWKHWLF
EDVHG

&$87,21 
&RQVXOWWKHRSHUDWRU¶VPDQXDOIRUWKHFRUUHFWW\SHRIK\GUDXOLFIOXLGEHIRUHDSSO\LQJ7KH
LQFRUUHFWW\SHFDQFRQWDPLQDWHWKHK\GUDXOLFV\VWHPUHTXLULQJWKHV\VWHPWREHGUDLQHG
IOXVKHGDQGUHILOOHGZLWKWKHFRUUHFWIOXLG

*HDU2LO
*HDURLOLVXVHGRQWUDQVPLVVLRQVWKHV\VWHPRIJHDUVWKDWSURYLGHWKHPHFKDQLFDO
DGYDQWDJHWKDWGULYHVWKHYHKLFOH*HDURLOUHGXFHVIULFWLRQDQGGRHVQRWEUHDNGRZQDW
KLJKWHPSHUDWXUHV

&$87,21 
&RQVXOWWKHRSHUDWRU¶VPDQXDOIRUWKHFRUUHFWW\SHRIJHDURLOEHIRUHDSSO\LQJ0L[LQJ
JHDURLOVPD\FDXVHWKHRLOWREUHDNGRZQOHDYLQJJHDUVXQSURWHFWHG

*UHDVH
*UHDVHLVXVHGWROXEULFDWHILWWLQJVVXFKDVEHDULQJVEXVKLQJVDQGSLYRWSRLQWV,WFDQ
DOVREHXVHGWRVHDORXWGLUWDQGZDWHU
1$9('75$$ 
/LWKLXPEDVHGJUHDVHLVFRPPRQO\XVHGRQHTXLSPHQW,WLVZDWHUUHVLVWDQWDQGKDVD
VSHFLILFKHDWFDSDFLW\
*UHDVHOXEHFKDUWVDUHXVXDOO\PRXQWHG
RQHTXLSPHQWRUIRXQGLQWKHRSHUDWRU¶V
PDQXDO7KH\LGHQWLI\WKHORFDWLRQRI
ILWWLQJVDQGKRZIUHTXHQWO\WKH\VKRXOGEH
OXEULFDWHG
$SSOLQJDQH[FHVVLYHDPRXQWRIJUHDVHRQ
DSLHFHRIHTXLSPHQWFDQFDXVHVHDOVWR
EORZ,WFDQDOVRDWWUDFWGLUWZKLFKFDQDFW
DVJULQGLQJFRPSRXQGRQVXUIDFHV
$SSO\LQJWRROLWWOHJUHDVHDOORZVPHWDOWR
PHWDOFRQWDFWFDXVLQJKRWVSRWVDQG
H[FHVVLYHZHDU
*UHDVHJXQVOLNHWKHRQHVKRZQLQ)LJXUH
DUHXVHGWRDSSO\JUHDVHWR
LQDFFHVVLEOHILWWLQJV%DVLFLVVXHLWHPVRQ
0HGLXP7DFWLFDO9HKLFOHVLQFOXGHDJUHDVH
JXQDQGDIOH[LEOHDGDSWHU7KHRSHUDWRULV
UHVSRQVLEOHIRUJUHDVLQJHTXLSPHQW7DNH )LJXUH±+DQGRSHUDWHGJUHDVH
FDUHWRPDLQWDLQJUHDVLQJHTXLSPHQWDQG JXQ
NHHSJUHDVHIUHHIURPGHEULV

7HVW\RXU.QRZOHGJH6HOHFWWKH&RUUHFW5HVSRQVH
 7UXHRU)DOVH7KHVHDOHGILOWHULVGHSRVHGRIDVDZKROHXQLW

$7UXH
%)DOVH

 7UXHRU)DOVH$SSO\LQJWRRPXFKJUHDVHRQDSLHFHRIHTXLSPHQWFDQFDXVH
VHDOVWREORZ

$7UXH
%)DOVH

&22/,1*6<67(06
,QWHUQDOFRPEXVWLRQHQJLQHVDUHHTXLSSHGZLWKDFRROLQJV\VWHPEHFDXVHRIWKHKHDW
WKH\JHQHUDWHGXULQJRSHUDWLRQ7KHWHPSHUDWXUHLQWKHFRPEXVWLRQFKDPEHUFDQEH
JUHDWHUWKDQWKHPHOWLQJSRLQWRILURQ:LWKRXWDFRROLQJV\VWHPYDOYHVFDQEXUQ
OXEULFDQWRLOVFDQEUHDNGRZQDQGEHDULQJDQGSLVWRQVFDQRYHUKHDW$WWKHVDPHWLPH
WKHHQJLQHPXVWQRWUXQWRRFROG$FROGHQJLQHGRHVQRWEXUQDOOWKHIXHOWDNHQLQWRWKH
FRPEXVWLRQFKDPEHUZKLFKFDQFDXVHWKHIRUPDWLRQRIFDUERQGHSRVLWVUHGXFLQJ
HQJLQHSRZHUDQGIXHOPLOHDJH
7KHFRROLQJV\VWHPUHPRYHVXQZDQWHGKHDWKHOSVWKHHQJLQHZDUPXSWRLWVQRUPDO
RSHUDWLQJWHPSHUDWXUHDVVRRQDVSRVVLEOHDQGNHHSVWKHHQJLQHDWDFRQVWDQW
WHPSHUDWXUH7KHUHDUHWZRW\SHVRIHQJLQHFRROLQJV\VWHPVOLTXLGFRROLQJDQGDLU
FRROLQJ

1$9('75$$ 
/LTXLG&RROLQJ6\VWHP
7KHOLTXLGFRROLQJV\VWHPLVWKHPRVWSRSXODUW\SHRIFRROLQJV\VWHPRQYHKLFOHV,W
FRQVLVWVRIFRRODQWDUDGLDWRUZDWHUSXPSKRVHVIDQDQGVKURXGWKHUPRVWDWDQGD
V\VWHPRIMDFNHWVDQGSDVVDJHV
LQWKHF\OLQGHUKHDGDQGEORFN
(QJLQHSDUWVDUHFRROHGE\
NHHSLQJFRRODQWFLUFXODWLQJDQG
LQFRQWDFWZLWKPHWDOVXUIDFHV
)LJXUH7KHZDWHUSXPS
GUDZVFRRODQWIURPWKHERWWRPRI
WKHUDGLDWRUIRUFHVLWWKURXJKWKH
MDFNHWVDQGSDVVDJHVDQG
HMHFWVLWLQWRWKHXSSHUWDQNRI
WKHUDGLDWRU7KHFRRODQWWKHQ
SDVVHVWKURXJKDVHWRIWXEHV
DQGILQVXQWLOLWJHWVWRWKH
ERWWRPRIWKHUDGLDWRUZKHUHWKH
FRROLQJF\FOHEHJLQV7KH
UDGLDWRULVVLWXDWHGLQIURQWRID
IDQWKDWLVGULYHQE\DZDWHU
SXPSRUDQHOHFWULFPRWRU7KH
IDQHQVXUHVDLUIORZWRWKH
UDGLDWRUZKHQWKHYHKLFOHLVQRW
LQPRWLRQ$WKHUPRVWDWFRQWUROV
WKHDPRXQWRIFRRODQWWKDW )LJXUH±/LTXLGFRROLQJV\VWHP
HQWHUVWKHUDGLDWRU

&RRODQWDQG$QWLIUHH]H
:DWHUKDVVHUYHGDVDEDVLFFRRODQWIRU\HDUVEHFDXVHLWLVFKHDSHDVLO\REWDLQHGDQG
KDVWKHDELOLW\WRWUDQVIHUKHDWKRZHYHUWKHSK\VLFDOSURSHUWLHVRIZDWHUOLPLWLWV
XVHIXOQHVVDVDFRRODQW7KHVHSK\VLFDOSURSHUWLHVLQFOXGHZDWHU¶VERLOLQJSRLQW
IUHH]LQJSRLQWDQGQDWXUDOFRUURVLYHDFWLRQRQPHWDO$QWLIUHH]HLVDGGHGWRZDWHUWR
FRXQWHUDFWWKHVHSURSHUWLHV
$QWLIUHH]HLVPDQXIDFWXUHGXQGHUPDQ\GLIIHUHQWWUDGHQDPHV7KHPRVWFRPPRQO\
XVHGW\SHRIDQWLIUHH]HLVHWK\OHQHJO\FRODFKHPLFDOFRPSRXQGRIHWK\OHQHDQG
JO\FHULQGHULYDWLYHV(WK\OHQHJO\FROLVDQLGHDOFRRODQWEHFDXVHLWLVQRQIODPPDEOHKDV
DYHU\KLJKERLOLQJSRLQWDQGGRHVQRWHYDSRUDWHHDVLO\0D[LPXPIUHH]LQJSURWHFWLRQLV
DFKLHYHGE\PL[LQJHWK\OHQHJO\FROZLWKZDWHU7KLVPL[WXUHSURWHFWVWKH
FRROLQJV\VWHPIURPWHPSHUDWXUHVDVORZDVPLQXVƒ)

:$51,1* 
&RRODQWLVKLJKO\WR[LFZKHQLQJHVWHG,WVKRXOGEHSURSHUO\GLVSRVHGRIWRSUHYHQW
SRLVRQLQJFKLOGUHQDQGDQLPDOV

1$9('75$$ 
5DGLDWRU
7KHUDGLDWRU)LJXUHLVDKHDW
H[FKDQJLQJGHYLFHPRXQWHGRQWKHIURQW
HQGRIYHKLFOHV0RVWDUHGHVLJQHGZLWKD
WRSDQGERWWRPWDQN7KHWRSWDQNKDVDQ
RXWVLGHSLSHNQRZQDVWKHLQOHWGLUHFWO\
FRQQHFWHGWRWKHHQJLQH7KHERWWRPWDQN
KDVRXWVLGHSLSHNQRZQDVWKHRXWOHW
FRQQHFWHGWRWKHZDWHUSXPS%HWZHHQWKH
WDQNVLVDKHDWH[FKDQJLQJFRUHFRQVLVWLQJ
RIWKLQWXEHVDQGILQV
2QDYHUWLFDOIORZUDGLDWRUFRRODQWHQWHUV
WKHLQOHWRQWKHWRSWDQNIORZVGRZQWKH
H[FKDQJLQJFRUHDQGH[LWVWKHUDGLDWRUDW
WKHERWWRPWDQN
)LJXUH±5DGLDWRU
5DGLDWRU3UHVVXUH&DS±7KHUDGLDWRUSUHVVXUHFDSLVXVHGRQQHDUO\DOOPRGHUQ
HQJLQHV,WDOORZVDFHUWDLQDPRXQWRISUHVVXUHWRGHYHORSZLWKLQWKHFRROLQJV\VWHP
7KHSUHVVXUHUDLVHVWKHFRRODQW¶VERLOLQJSRLQWDSSUR[LPDWHO\GHJUHHVIRUHYHU\
SRXQGRISUHVVXUH7KLVDOORZVWKHHQJLQHWRRSHUDWHDWDKLJKHUWHPSHUDWXUHZLWKRXW
WKHORVVRIFRRODQWIURPERLOLQJ
7KHUDGLDWRUSUHVVXUHFDSKDVWZRVSULQJORDGHGYDOYHV7KHODUJHULVFDOOHGWKH
SUHVVXUHYDOYH7KHVPDOOHULVFDOOHGWKHYDFXXPYDOYH:KHQWKHFRROLQJV\VWHP
H[FHHGVDPD[LPXPDPRXQWRISUHVVXUHXVXDOO\LGHQWLILHGE\WKHPDQXIDFWXUHUVRQWKH
FDSWKHSUHVVXUHYDOYHRSHQVDQGDOORZVFRRODQWWRIORZWKURXJKWKHRYHUIORZSLSHDQG
LQWRWKHUHFRYHU\WDQN)LJXUH
7KHYDFXXPYDOYHRSHQVZKHQWKHSUHVVXUHLQWKHFRROLQJV\VWHPGURSVEHORZWKH
RXWVLGHDLUSUHVVXUH7KHYDFXXPYDOYHGUDZVFRRODQWEDFNLQWRWKHUDGLDWRUSUHYHQWLQJ
WKHUDGLDWRUDQGKRVHVIURPFROODSVLQJGXHWRDWPRVSKHULFSUHVVXUHDVWKHFRRODQW
FRROV)LJXUH

 
)LJXUH±5DGLDWRUSUHVVXUHFDSRSHUDWLRQ
1$9('75$$ 
 :$51,1* 
$OZD\VUHPRYHWKHUDGLDWRUFDSVORZO\DQGFDUHIXOO\5HPRYLQJWKHFDSIURPDKRW
SUHVVXUL]HGUDGLDWRUFDQFDXVHVHULRXVEXUQVIURPHVFDSLQJVWHDPDQGFRRODQW
:KHQSHUIRUPLQJDSUHVWDUWFKHFNLQVSHFWWKHUDGLDWRUIRUOHDNVSDUWLFXODUO\ZKHUHWKH
WDQNVDUHVROGHUHGWRWKHFRUH7KHYLEUDWLRQIURPSUHVVXUHFDQFDXVHIDWLJXHRI
VROGHUHGMRLQWVRUVHDPV%HQWILQVVKRXOGEHVWUDLJKWHQHGDQGWKHUDGLDWRUFRUHVKRXOG
EHLQVSHFWHGIRUDQ\REVWUXFWLRQVWKDWZRXOGFORJLWDQGUHGXFHLWVFRROLQJHIILFLHQF\
$QDLUKRVHFDQEHXVHGWRFOHDQDLUSDVVDJHVRQDUDGLDWRU:KHQXVLQJDQDLUKRVH
DSSO\DLULQWKHRSSRVLWHGLUHFWLRQRIRUGLQDU\DLUIORZ/RZSUHVVXUHGZDWHUFDQDOVREH
XVHGWRVRIWHQREVWUXFWLRQVEHIRUHDSSO\LQJDLU

&$87,21 
6SUD\LQJKLJKSUHVVXUHGZDWHUFDQFDXVHGDPDJHWRUDGLDWRUILQVDQGFRUH
5DGLDWRUKRVHVDQGWXELQJVKRXOGEHLQVSHFWHGIRUOHDNVDQGJHQHUDOFRQGLWLRQ,QVRPH
FDVHVOHDNVFDQEHUHSDLUHGE\WLJKWHQLQJRUUHSODFLQJWKHKRVHFODPSV'HWHULRUDWHG
KRVHVVKRXOGEHUHSODFHGWRSUHYHQWIXWXUHSUREOHPV+RVHVFDQURWIURPLQVLGH
DOORZLQJWLQ\IUDJPHQWVWRIORZWKURXJKWKHV\VWHPDQGEHFRPHORGJHGLQWKHUDGLDWRU
)RUWKLVUHDVRQDOOROGFUDFNHGRUVSRQJ\KRVHVVKRXOGEHUHSODFHGDVVRRQDVWKH
FRQGLWLRQLVGLVFRYHUHG

5HFRYHU\7DQN
7KHUHFRYHU\WDQNVHUYHVDVDUHFHSWDFOHIRUFRRODQWIRUFHGRXWRIWKHUDGLDWRURYHUIORZ
SLSHDQGSURYLGHVIRULWVUHWXUQWRWKHV\VWHP$VWKHHQJLQHFRROVWKHEDODQFLQJRI
SUHVVXUHVFDXVHVWKHFRRODQWWRVLSKRQEDFNLQWRWKHUDGLDWRU&RROLQJV\VWHPVXVLQJD
UHFRYHU\WDQNDUHNQRZQDVFORVHGFRROLQJV\VWHPV

:DWHU3XPS
7KHZDWHUSXPS)LJXUHDOVRNQRZQ
DVWKHFRRODQWSXPSLVWKHKHDUWRIWKH
FRROLQJV\VWHP7KH\DUHFDVWLURQRU
DOXPLQXPKRXVLQJVEROWHGWRWKHHQJLQH
EORFN
$VDZDWHUSXPSURWDWHVFRRODQWLVGUDZQ
WRWKHFHQWHURIWKHSXPSE\VXFWLRQ7KH
ZDWHUSXPSXVHVFHQWULIXJDOIRUFHFUHDWHG
E\DQLPSHOOHUZLWKFXUYHGEODGHVWRSXVK
FRRODQWRXWZDUGVWRWKHHQJLQH7KH
LPSHOOHULVEHOWGULYHQIURPWKHFUDQNVKDIW
DQGLVVXSSRUWHGE\WZRVHDOHGEHDULQJV
)LJXUH±:DWHUSXPS

)DQDQG6KURXG
7KHHQJLQHIDQLVXVXDOO\PRXQWHGRQWKHHQGRIWKHZDWHUSXPSVKDIWVRWKDWWKHVDPH
EHOWWKDWGULYHVWKHSXPSDOVRGULYHVWKHIDQ7KHIDQSXOOVDODUJHYROXPHRIDLUWKURXJK

1$9('75$$ 
WKHUDGLDWRUWRDLGLQKHDWWUDQVIHUDWORZVSHHG,QDGGLWLRQWRWUDQVIHUULQJWKHKHDWWKH
IDQDOVRFRROVWKHHQJLQH
2QVRPHFRQVWUXFWLRQHTXLSPHQWVXFKDVGR]HUVDQGWUDFNORDGHUVWKHIDQEORZVDLU
WKURXJKWKHUDGLDWRUYLFHSXOOLQJWKHDLU%HVLGHVFRROLQJWKHZDWHUWKHEORZLQJRIDLU
NHHSVVDQGGLUWDQGGHEULVRXWRIWKHUDGLDWRU6RPHHQJLQHVDUHHTXLSSHGZLWKD
VKURXGWKDWLPSURYHVIDQHIILFLHQF\E\DVVXULQJWKDWDOOWKHDLUKDQGOHGE\WKHIDQ
SDVVHVWKURXJKWKHUDGLDWRU
)DQEODGHVDUHVSDFHGDWLQWHUYDOVDURXQGWKHIDQKXEWRDLGLQFRQWUROOLQJYLEUDWLRQDQG
QRLVH7KH\DUHRIWHQFXUOHGDW
WKHWLSWRLQFUHDVHWKHLUDELOLW\WR
PRYHDLU([FHSWIRUGLIIHUHQFHV
LQORFDWLRQDURXQGWKHKXEPRVW
EODGHVKDYHWKHVDPHSLWFKDQG
DQJXODULW\
%HQWIDQEODGHVDUHDFRPPRQ
SUREOHP7KH\FDXVHQRLVH
YLEUDWLRQDQGH[FHVVZHDURQWKH
ZDWHUSXPSVKDIW9LVXDO
LQVSHFWLRQRIWKHIDQEODGHV
SXOOH\VSXPSVKDIWHQGSOD\DQG
GULYHEHOWVDUHSDUWRISUHYHQWLYH
PDLQWHQDQFH$EHQWRUGLVWRUWHG
IDQRURQHZLWKDORRVHEODGH
VKRXOGEHUHSODFHG:KHQWKHIDQ
LVPHUHO\ORRVHRQLWVPRXQWLQJ
WLJKWHQLQJLVLQRUGHU/RRVHIDQ
EHOWVFDQEHDGMXVWHGIRUSURSHU
WHQVLRQXVXDOO\E\DGMXVWLQJWKH
JHQHUDWRURUDOWHUQDWRURQLWV
PRXQWLQJ)LJXUH )LJXUH±'ULYHEHOWDGMXVWPHQW
$FRPPRQPHWKRGIRUPHDVXULQJ
EHOWWHQVLRQLVWRSUHVVGRZQRQWKHEHOWDWDSRLQWPLGZD\EHWZHHQWKHJHQHUDWRURU
DOWHUQDWRUDQGWKHIDQSXOOH\DQGPHDVXUHWKHDPRXQWRIGHIOHFWLRQ7KHDPRXQWRI
GHIOHFWLRQYDULHVDQGVKRXOGEHVHWWRWKHPDQXIDFWXUHU¶VVSHFLILFDWLRQ$rule of thumb
XVHGLQWKH1&)IRUEHOWWHQVLRQLVQRPRUHWKDQDRQHKDOILQFKGHIOHFWLRQ

:DWHU-DFNHW
7KHSDVVDJHVLQWKHF\OLQGHUEORFNDQGKHDGDUHUHIHUUHGWRDVDZDWHUMDFNHW7KH
ZDWHUMDFNHWGRHVQRWFDUU\ZDWHU,QVWHDGLWFRQWUROVWKHFLUFXODWLRQRIFRRODQWDQG
SURYLGHVSURSHUFRROLQJWKURXJKRXWWKHHQJLQH7KHHQJLQH¶VKRWWHVWSDUWVVXFKDVWKH
YDOYHVDQGF\OLQGHUZDOOVDUHVXUURXQGHGE\DZDWHUMDFNHW

1$9('75$$ 
7KHUPRVWDW
$XWRPDWLFFRQWURORIWKHWHPSHUDWXUHRIDQHQJLQHLVQHFHVVDU\IRUHIILFLHQWHQJLQH
SHUIRUPDQFHDQGHFRQRPLFDORSHUDWLRQ6LQFHDOOHQJLQHSDUWVDUHLQDFRQWUDFWHGVWDWH
ZKHQFROGWKHHQJLQH
WHPSHUDWXUHVKRXOGEHEURXJKW
WRQRUPDODVTXLFNO\DVSRVVLEOH
7KHZDWHUSXPSVWDUWVFRRODQW
FLUFXODWLQJWKHPRPHQWWKH
HQJLQHLVVWDUWHGZKLFKLV
XQGHVLUDEOHGXULQJFROGZHDWKHU
RSHUDWLRQV&RRODQWFLUFXODWLRQLV
UHVWULFWHGE\WKHLQVWDOODWLRQRID
WKHUPRVWDWLFDOO\FRQWUROOHGYDOYH
RUWKHUPRVWDWEHWZHHQWKH
F\OLQGHUKHDGDQGWKHUDGLDWRU
WRSWDQN7KLVYDOYHDOORZV
FRRODQWWRFLUFXODWHIUHHO\RQO\
ZLWKLQWKHEORFNXQWLOWKHGHVLUHG
WHPSHUDWXUHLVUHDFKHG7KLV
VKRUWHQVWKHZDUPXSSHULRG$
E\SDVVLVXVHGWRGLUHFWWKH
ZDWHUIURPWKHEORFNWRWKHSXPS
ZKHQWKHSDVVDJHWRWKH
UDGLDWRULVEORFNHGE\WKHFORVHG
WKHUPRVWDW)LJXUH
)LJXUH±&ORVHGWKHUPRVWDW
6RPHVWDWLRQDU\HQJLQHVDQG
ODUJHWUXFNVDUHHTXLSSHGZLWKVKXWWHUVWKDWVXSSOHPHQWWKHDFWLRQRIWKHWKHUPRVWDWLQ
SURYLGLQJIDVWHUZDUPXSDQGPDLQWDLQLQJSURSHURSHUDWLQJWHPSHUDWXUHV:KHQWKH
HQJLQHFRRODQWLVEHORZDSUHGHWHUPLQHGWHPSHUDWXUHEHWZHHQƒ)WRƒ)WKH
VKXWWHUVORFDWHGLQIURQWRIWKHUDGLDWRUUHPDLQFORVHGDQGUHVWULFWWKHIORZRIDLU
WKURXJKWKHUDGLDWRU$VWKHFRRODQWUHDFKHVSURSHUWHPSHUDWXUHWKHVKXWWHUVVWDUWWR
RSHQ

([SDQVLRQ7DQN
6RPHHQJLQHVXVHDQH[SDQVLRQWDQNLQ
WKHLUFRROLQJV\VWHP)LJXUH7KH
H[SDQVLRQWDQNLVPRXQWHGLQVHULHVZLWK
WKHXSSHUUDGLDWRUKRVHDQGLVXVHGWR
VXSSO\H[WUDURRPIRUFRRODQWH[SDQVLRQ
DQGJHQHUDOO\WDNHVWKHSODFHRIWKHXSSHU
UDGLDWRUWDQN7KHSUHVVXUHFDSDQGWKH
RYHUIORZOLQHDUHDOVRPRXQWHGRQWKH
H[SDQVLRQWDQN.

$LU&RROLQJ6\VWHP
7KHDLUFRROLQJV\VWHPLVWKHVLPSOHVWDQG
TXLFNHVWZD\WRFRRODQHQJLQH$LULV
VXSSOLHGE\IRUZDUGYHKLFOHPRYHPHQW$
)LJXUH± ([SDQVLRQWDQN
1$9('75$$ 
IDQLVDOVRXVHGWRFRROWKHHQJLQHE\GUDZLQJRIIKHDW
7KHUDWHRIFRROLQJGHSHQGVRQPDQ\IDFWRUVVXFKDVWKHDUHDH[SRVHGWRWKHFRROLQJ
DLUWKHKHDWFRQGXFWLYLW\RIWKHHQJLQHPHWDOWKHDPRXQWRIDLUIORZDQGWKHGLIIHUHQFH
LQWHPSHUDWXUHEHWZHHQWKHHQJLQHPHWDODQGWKHLQFRPLQJDLUIORZ6RPHKHDWPXVWEH
UHWDLQHGIRUHIILFLHQWRSHUDWLRQ7KLVLVDFFRPSOLVKHGE\WKHXVHRIWKHUPRVWDWLFFRQWUROV
DQGPHFKDQLFDOOLQNDJHWKDWRSHQDQGFORVHVKXWWHUVWRFRQWUROWKHYROXPHRIFRROLQJ
DLU$LUFRROHGHQJLQHVJHQHUDOO\RSHUDWHDWDKLJKHUWHPSHUDWXUHWKDQOLTXLGFRROHG
HQJLQHVZKRVHRSHUDWLQJWHPSHUDWXUHLVODUJHO\OLPLWHGE\WKHERLOLQJSRLQWRIWKH
FRRODQWXVHG&RQVHTXHQWO\JUHDWHUFOHDUDQFHVPXVWEHSURYLGHGEHWZHHQWKHPRYLQJ
SDUWVRIDLUFRROHGHQJLQHVWRDOORZIRUWKHLQFUHDVHGH[SDQVLRQ
,QDLUFRROHGHQJLQHVWKHF\OLQGHUVDUHPRXQWHGLQGHSHQGHQWO\WRWKHFUDQNFDVHVRWKDW
DQDGHTXDWHYROXPHRIDLUFDQFLUFXODWHGLUHFWO\DURXQGHDFKF\OLQGHU7KHFLUFXODWLQJDLU
DEVRUEVH[FHVVLYHDPRXQWVRIKHDWIURPWKHF\OLQGHUVDQGPDLQWDLQVHQRXJKF\OLQGHU
KHDGWHPSHUDWXUHVIRUVDWLVIDFWRU\RSHUDWLRQ7KHFRROLQJDFWLRQLVEDVHGRQWKHVLPSOH
SULQFLSOHWKDWWKHVXUURXQGLQJDLULVFRROHUWKDQWKHHQJLQHKHDW
7KHSULPDU\FRPSRQHQWVRIDQDLUFRROHGV\VWHPDUHWKHIDQDQGVKURXGDQGWKHEDIIOHV
DQGILQV$W\SLFDODLU±FRROHGHQJLQHLVVKRZQLV)LJXUH


)LJXUH±$LUFRROHGHQJLQH

)DQDQG6KURXG
0RVWDLUFRROHGHQJLQHVPXVWKDYHIDQVRUEORZHUVWRFLUFXODWHDODUJHYROXPHRIDLU
RYHUDQGDURXQGWKHF\OLQGHU7KHVHIDQVDUHEXLOWLQWRWKHHQJLQHIO\ZKHHO)LJXUH
:KHQWKHHQJLQHLVDVVHPEOHGDVKURXGLQJRUFRZOLQJIRUPVDFRPSDUWPHQW
DURXQGWKHHQJLQHVRWKDWWKHFRROLQJDLULVSURSHUO\GLUHFWHGIRUHIIHFWLYHFRROLQJ6RPH
DLUFRROHGHQJLQHVVXFKDVWKRVHXVHGRQPRWRUF\FOHVDQGRXWERDUGHQJLQHVGRQRW
UHTXLUHWKHXVHRIIDQVRUVKURXGV7KHLUHQJLQHVDUHDGHTXDWHO\FRROHGE\WKHDLUIORZ
FUHDWHGE\IRUZDUGPRYHPHQW

%DIIOHVDQG)LQV
6RPHHQJLQHVXVHEDIIOHVWRUHGLUHFWFRRODLUWRZDUGVHQJLQHSDUWVWKDWDUHQRWLQWKH
GLUHFWSDWKRIDLUIORZ0RVWEDIIOHVDUHPDGHRIOLJKWPHWDODQGDUHVHPLFLUFXODUZLWKRQH
HGJHLQWKHVWUHDPRIDLU
2WKHUW\SHVRIDLUFRROHGHQJLQHVXVHILQV)LQVDUHWKLQUDLVHGSURMHFWLRQVRQWKH
F\OLQGHUEDUUHODQGKHDG7KH\SURYLGHPRUHFRROLQJDUHDDQGDLGLQGLUHFWLQJDLUIORZ
+HDWUHVXOWLQJIURPFRPEXVWLRQSDVVHVE\FRQGXFWLRQIURPWKHF\OLQGHUZDOOVDQG
F\OLQGHUKHDGWRWKHILQVDQGLVFDUULHGDZD\E\WKHSDVVLQJDLU
1$9('75$$ 
7HVW\RXU.QRZOHGJH6HOHFWWKH&RUUHFW5HVSRQVH
 7UXHRU)DOVH7KHFRROLQJV\VWHPZDUPVXSWKHHQJLQHWRLWVQRUPDORSHUDWLQJ
WHPSHUDWXUH

$7UXH
%)DOVH

 :KHQGRHVWKHUDGLDWRUYDFXXPYDOYHRSHQ"

$ :KHQWKHSUHVVXUHLQWKHFRROLQJV\VWHPUDLVHVDERYHWKHRXWVLGHDLU
SUHVVXUH
% :KHQWKHSUHVVXUHLQWKHFRROLQJV\VWHPGURSVEHORZWKHRXWVLGHDLU
SUHVVXUH
& :KHQWKHSUHVVXUHLQWKHFRROLQJV\VWHPH[FHHGVLWVPD[LPXPOLPLW
' :KHQWKHSUHVVXUHLQWKHFRROLQJV\VWHPGURSVEHORZWKHQRUPDOSUHVVXUH

 :KDWLVWKHIXQFWLRQRIWKHZDWHUMDFNHW"

$ &RQWUROWKHFLUFXODWLRQRIFRRODQW
% &RQWUROWKHFLUFXODWLRQRIZDWHU
& &RQWUROWKHWHPSHUDWXUHRIWKHFRRODQW
' 'HFUHDVHWKHWHPSHUDWXUHRIWKHFRRODQW

6XPPDU\
7KLVFKDSWHUQRWRQO\GHVFULEHGHQJLQHV\VWHPVLWDOVRH[SODLQHGWKHKDUVKHIIHFWVWKDWFDQ
RFFXULIWKH\QRWURXWLQHO\FDUHGIRU%\VLPSO\LQVSHFWLQJDQGUHSOHQLVKLQJFRRODQWDQGRLO
OHYHOVDSSO\LQJDQDGHTXDWHDPRXQWRIJUHDVHDQGLQVSHFWLQJDUDGLDWRUDQRSHUDWRUFDQ
SUHYHQWPDMRUHQJLQHSUREOHPVDQGH[WHQGWKHOLIHRIDSLHFHRIHTXLSPHQW

1$9('75$$ 
5HYLHZ4XHVWLRQV6HOHFWWKH&RUUHFW5HVSRQVH
 $QHQJLQHLVDGHYLFHWKDWFRQYHUWVZKDWW\SHRIHQHUJ\LQWRPHFKDQLFDOSRZHU"

$5HFLSURFDWLQJ
%3K\VLFDO
&+HDW
'.LQHWLF

 :KDWLVWKHFKHPLFDOUHDFWLRQWKDWRFFXUVZKHQWKHIXHODQGDLUPL[WXUHLVLJQLWHG
LQWKHHQJLQHF\OLQGHU"

$&RPEXVWLRQ
% ([SORVLRQ
&'HWRQDWLRQ
'&RQYXOVLRQ

 7UXHRU)DOVH7KHFRQQHFWLQJURGWUDQVPLWVWKHUHFLSURFDWLQJPRWLRQRIWKH
F\OLQGHUWRWKHFUDQNVKDIW

$7UXH
%)DOVH

 7UXHRU)DOVH0RVWHQJLQHVRSHUDWHRQDIRXUVWURNHF\FOH

$7UXH
%)DOVH

 'XULQJWKHLQWDNHVWURNHLQDIRXUVWURNHJDVROLQHHQJLQHZKDWFRQGLWLRQFDXVHV
WKHIXHODQGDLUPL[WXUHWRHQWHUWKHFRPEXVWLRQFKDPEHU"

$&RPSUHVVLRQ
%9DFXXP
&&RPEXVWLRQ
'([SDQVLRQ

 ,QDGLHVHOHQJLQHWRZKDWYROXPHLVWKHIXHODQGDLUPL[WXUHFRPSUHVVHG"

$2QHHLJKW
%2QHILIWHHQWK
&2QHWZHQWLHWK
'2QHWZHQW\ILIWK

 ,QDIRXUVWURNHGLHVHOHQJLQHZKHUHGRHVDLUDQGIXHOPL["

$ ,QWKHFRPEXVWLRQFKDPEHU
% ,QWKHLQMHFWLRQFKDPEHU
& ,QWKHFDWDO\WLFFRQYHUW
' ,QWKHLQWDNHPDQLIROG


1$9('75$$ 
 7UXHRU)DOVH$GLHVHOHQJLQHKDVDJUHDWHUWRUTXHWKDQDJDVROLQHHQJLQH
EHFDXVHRIWKHSRZHUGHYHORSHGIURPWKHORZFRPSUHVVLRQUDWLR

$7UXH
%)DOVH

 7KHWZRVWURNHGLHVHOHQJLQHXVHVZKDWPHWKRGWRIRUFHDLULQDQGH[KDXVW
JDVHVRXWRIWKHF\OLQGHU"

$6XSHUFKDUJLQJ
%7XUERFKDUJLQJ
&6FDYHQJLQJ
'%ORZLQJ

 7UXHRU)DOVH,QDWZRVWURNHF\FOHGLHVHOHQJLQHLIWKHH[KDXVWYDOYHRSHQHG
LQWKHPLGGOHRIWKHLQWDNHVWURNHWKHSLVWRQZRXOGGUDZEXUQWJDVHVLQWRWKH
FRPEXVWLRQFKDPEHU

$7UXH
%)DOVH

 ,QDWZRVWURNHF\FOHGLHVHOHQJLQHZKDWSDUWRIWKHFDPVKDIWFRQWDFWVWKH
ERWWRPRIWKHOLIWHU"

$&DPEHDULQJ
% &DPYDOYHWDSSHW
& &DPWLPLQJJHDU
'&DPOREH

 :KLFKRIWKHIROORZLQJLV127DIXQFWLRQRIWKHIXHOLQMHFWLRQV\VWHP"

$ 'HOLYHUSURSHUDPRXQWRISUHVVXUL]HGIXHO
% &RQWUROWKHIXHODLUUDWLR
&$WRPL]HIXHO
'$XWRPDWLFDOO\UHIXHO

 0RVWIXHOVDUHFRPSRXQGVRIBBBBBBBDQGBBBBBBB

$K\GURJHQFDUERQ
%VRGLXPDOXPLQDWH
&K\GURJHQVXOILGH
'FDUERQGLR[LGH

 :KDWW\SHRISROOXWLRQLVHPLWWHGLQWRDWPRVSKHUHE\HQJLQHVXVLQJOHDGHG
JDVROLQH"

$+\GURFDUERQV
%6RGLXPDOXPLQDWH
&+\GURJHQVXOILGH
'&DUERQGLR[LGH


1$9('75$$ 
 :KDWQXPEHUGHVLJQDWRULVXVHGWRLGHQWLI\JDVROLQH¶VDELOLW\WREXUQHYHQO\DQG
UHVLVWVSRQWDQHRXVFRPEXVWLRQ"

$&HWDQH
%5DWLR
&2FWDQH
')DWKRP

 $VH[KDXVWSDVVHVWKURXJKWKHFDWDO\WLFFRQYHUWHUZKDWFKHPLFDOFRPSRXQGV
DUHSURGXFHG"

$ 1LWUDWHVDQGNHWRQHV
% +\GURJHQVXOILGHDQGFDUERQPRQR[LGH
& &DUERQGLR[LGHDQGZDWHU
' 6XOIXUGLR[LGHDQGDFHWRQHV

 7UXHRU)DOVH&DWDO\WLFFRQYHUWHUVDUHGHVLJQHGWRFRQYHUWWKHH[KDXVWJDVHV
IRUPHGIURPWKHFRPEXVWLRQRIOHDGHGJDVROLQH

$7UXH
%)DOVH

 7UXHRU)DOVH'LHVHOIXHOFDQKROGGLUWSDUWLFOHVLQVXVSHQVLRQORQJHUWKDQ
JDVROLQHEHFDXVHLWLVKHDYLHUDQGWKLFNHU

$ 7UXH
%)DOVH

 :KDWVXSHUYLVRUDSSURYHVWKHXVHRI-HW$DQG-3DVIXHO"

$0DLQWHQDQFH
%7UDQVSRUWDWLRQ
&3URMHFW
'/LJKW6KRS

 :KHQMHWIXHOLVXVHGLQDGLHVHOHQJLQHZKDWLQJUHGLHQWLVDGGHGWRLPSURYH
OXEULFDWLQJTXDOLWLHV"

$+\GUDXOLFIOXLG
%(QJLQHRLO
& 3RZHUVWHHULQJIOXLG
' 'ULYHOLQHRLO

 7UXHRU)DOVH,QGLHVHOHQJLQHVWKHIXHOWKDWLVWUDQVIHUUHGE\WKHHOHFWULFSXPS
PRYHVWKURXJKDILOWHUDQGWKHQWRWKHIXHOLQMHFWLRQKRXVLQJPDQLIROG

$7UXH
%)DOVH




1$9('75$$ 
 7UXHRU)DOVH7KHIXHOILOWHURSHUDWHVE\SDVVLQJIXHOWKURXJKDSRURXV
HOHPHQW

$7UXH
%)DOVH

 :KDWLVWKHSXUSRVHRIWKHSULPDU\IXHOILOWHURQDGLHVHOHQJLQH"

$ 5HPRYHDOOIRUHLJQPDWWHU
% 5HPRYHILQHSDUWLFOHV
& 5HPRYHWKHDLUGHSRVLWV
' 5HPRYHODUJHSDUWLFOHV

 :KLFKRIWKHIROORZLQJLV127DIXQFWLRQRIWKHDLULQWDNHV\VWHP"

$6XSSO\DLU
% &RQWUROWKHIXHODLUPL[WXUH
&&OHDQDLU
' )XQFWLRQDVDVLOHQFHU

 :KDWGULYHVWKHWXUELQHZKHHORQDWXUERFKDUJHU"

$([KDXVWJDVHV
% $GULYHEHOW
&$SXPS
')XHODLUPL[WXUH

 'U\HOHPHQWDLUFOHDQHUVSURYLGHBBBBBBBDQGBBBBBBB

$ GU\FOHDQLQJDQGILOWHULQJ
% SUHFOHDQLQJDQGILOWHULQJ
& ZHWFOHDQLQJDQGILOWHULQJ
' SUHFOHDQLQJDQGGLVFKDUJLQJ

 :KDWFUHDWHVWKHFHQWULIXJDOIRUFHLQWKHDLUFOHDQHUZLWKDGXVWFXS"

$ $PHWDOVKLHOG
%7LWOHGILQV
&$SXPS
'$SURSHOOHU

 :KRLVUHVSRQVLEOHIRULQVSHFWLQJDQGFOHDQLQJDLUFOHDQHUV"

$7KH0HFKDQLF
% 7KH:DVKUDFN&XVWRGLDQ
& 7KH<DUG%RVV
'7KH2SHUDWRU





1$9('75$$ 
 :KLFKRIWKHIROORZLQJSURFHGXUHVLVXVHGWRFOHDQDQDLUILOWHUHOHPHQW"

$ $SSO\KLJKSUHVVXUHGDLU
% 7DSWKHILOWHURQWKHKHHORI\RXUKDQG
& $SSO\KLJKSUHVVXUHGZDWHU
' 7DSWKHILOWHURQWKHWLUHRIDYHKLFOH

 :KDWVXSHUYLVRUDSSURYHVWKHZDVKLQJRIILOWHUHOHPHQWV"

$7UDQVSRUWDWLRQ
%0DLQWHQDQFH
&/LJKW6KRS
'6KRS

 :KDWKDSSHQVWRWKHODUJHUGLUWSDUWLFOHVWKDWDUHGUDZQWKURXJKDQRLOEDWK
FOHDQHU"

$ 5HPDLQVWUDSSHGLQWKHILOWHUHOHPHQW
% 5HPDLQVWUDSSHGLQWKHGXVWFXS
& 5HPDLQWUDSSHGLQWKHRLO
' 5HPDLQWUDSSHGLQWKHGXVWXQORDGLQJYDOYH

 :KLFKRIWKHIROORZLQJLV127DIXQFWLRQRIWKHOXEULFDWLRQV\VWHP"

$5HGXFHIULFWLRQ
%$EVRUEKHDW
&&OHDQHQJLQH
' 6WUHQJWKHQHQJLQHSDUWV

 7UXHRU)DOVH7KHE\SDVVYDOYHSUHYHQWVWKHHQJLQHIURPEHLQJGHSULYHGRI
JUHDVH

$7UXH
%)DOVH

 :KDWRLOILOWHUILWVLQWRDPHWDOKRXVLQJWKDWLVEROWHGRQWRWKHHQJLQH"

$3UHFOHDQHUILOWHU
%&DUWULGJHILOWHU
&6HDOHGILOWHU
' 6SLQRQILOWHU

 :KLFKRIWKHIROORZLQJLV127DFRPPRQW\SHRIK\GUDXOLFIOXLG"

$:DWHUEDVHG
%3HWUROHXPEDVHG
&/LWKLXPEDVHG
'6\QWKHWLFEDVHG

1$9('75$$ 
 7UXHRU)DOVH*UHDVHOXEHFKDUWVLGHQWLI\WKHORFDWLRQRIJUHDVHILWWLQJVDQG
KRZIUHTXHQWO\WKH\VKRXOGEHOXEULFDWHG

$7UXH
%)DOVH

 :KRLVUHVSRQVLEOHIRUJUHDVLQJHTXLSPHQW"

$7KH<DUG%RVV
%7KH2SHUDWRU
& 7KH*UHDVH5DFN&XVWRGLDQ
' 7KH&RPSDQ\&OHUN

 7UXHRU)DOVH7KHZDWHUSXPSGUDZVFRRODQWIURPWKHERWWRPRIWKHUDGLDWRU

$7UXH
%)DOVH

 :KLFKRIWKHIROORZLQJLV127DSURSHUW\RIZDWHUWKDWOLPLWVLWVXVHIXOQHVVDVD
FRRODQW"

$%RLOLQJSRLQW
% +LJKVXUIDFHWHQVLRQ
&)UHH]LQJSRLQW
' 1DWXUDOFRUURVLYHDFWLRQRQPHWDO

 7KHSUHVVXUHLQWKHFRROLQJV\VWHPUDLVHVWKHFRRODQW¶VERLOLQJSRLQWKRZPDQ\
)DKUHQKHLWGHJUHHVIRUHYHU\SRXQGRISUHVVXUH"

$
%
&
'

 ,QWKH1&)ZKDWLVWKHUXOHRIWKXPEIRUIDQEHOWWHQVLRQ"

$ 1RPRUHWKDQLQFKGHIHFWLRQ
% 1RPRUHWKDQôLQFKGHIHFWLRQ
& 1RPRUHWKDQòLQFKGHIHFWLRQ
' 1RPRUHWKDQóLQFKGHIHFWLRQ

 2QDFROGHQJLQHZKDWUHVWULFWVWKHFLUFXODWLRQRIFRRODQW"

$7KHVKXWWHU
% 7KHRYHUIORZWDQN
& 7KHZDWHUMDFNHW
'7KHWKHUPRVWDW

1$9('75$$ 
 7UXHRU)DOVH7KHH[SDQVLRQWDQNLVPRXQWHGLQVHULHVZLWKWKHORZHUUDGLDWRU
KRVHDQGLVXVHGWRVXSSO\H[WUDURRPIRUFRRODQWH[SDQVLRQ

$7UXH
%)DOVH

 7KHFRROLQJDFWLRQRQDLUFRROHGHQJLQHVLVEDVHGRQZKDWSULQFLSOH"

$ 7KHLQFRPLQJDLUIORZLVFRROHUWKDQWKHHQJLQHPHWDO
% 7KHLQFRPLQJDLUIORZLVFRROHUWKDQWKHFRRODQW
& 7KHLQFRPLQJDLUIORZLVHDVLHUWRFRQWUROWKDQFRRODQW
' 7KHHQJLQHPHWDOLVHDVLHUWRFRQWUROE\WKHXVHRIVXUURXQGLQJDLU

 :KLFKRIWKHIROORZLQJSURYLGHVPRUHFRROLQJDUHDDQGDLGVLQGLUHFWLQJDLUIORZ"

$)DQ
%)LQV
&%DIIOHV
'6KURXG

1$9('75$$ 
7UDGH7HUPV,QWURGXFHGLQ7KLV&KDSWHU
&HQWULIXJDO $QRXWZDUGIRUFHH[HUWHGE\DERG\PRYLQJLQDFXUYHG
OLQH,WLVWKHIRUFHWKDWWHQGVWRWLSDFDURYHULQJRLQJ
DURXQGDFXUYH
(OHFWURQLFFRQWUROPRGXOH $FRPSXWHULQDYHKLFOHXVHGIRUVSHFLILFV\VWHPV
(&0
5HFLSURFDWLQJPRWLRQ $QXSDQGGRZQRUEDFNDQGIRUWKPRWLRQ
5RWDU\PRWLRQ $FLUFXODUPRWLRQ
5XOHRIWKXPE $VWDWHPHQWRUIRUPXODWKDWLVQRWH[DFWO\FRUUHFWEXWLV
DFFXUDWHHQRXJKIRUXVHLQURXJKILJXULQJ

1$9('75$$ 
$GGLWLRQDO5HVRXUFHVDQG5HIHUHQFHV
7KLVFKDSWHULVLQWHQGHGWRSUHVHQWWKRURXJKUHVRXUFHVIRUWDVNWUDLQLQJ7KHIROORZLQJ
UHIHUHQFHZRUNVDUHVXJJHVWHGIRUIXUWKHUVWXG\7KLVLVRSWLRQDOPDWHULDOIRUFRQWLQXHG
HGXFDWLRQUDWKHUWKDQIRUWDVNWUDLQLQJ
$XWR(QJLQH3HUIRUPDQFHDQG'ULYHDELOLW\7KH*RRGKHDUW:LOOFR[&RPSDQ\,QF7LQOH\
3DUN,OOLQRLV
&RQVWUXFWLRQ0HFKDQLF%DVLF9ROXPH1$9('75$1DYDO(GXFDWLRQDQG
7UDLQLQJ3URIHVVLRQDO'HYHORSPHQWDQG7HFKQRORJ\&HQWHU3HQVDFROD)/
'LHVHO7HFKQRORJ\)XQGDPHQWDOV6HUYLFH5HSDLUV7KH*RRGKHDUW:LOOFR[
&RPSDQ\,QF7LQOH\3DUN,OOLQRLV
)XQGDPHQWDORI6HUYLFH(OHFWULFDO6\VWHPVWKHG'HHUH &RPSDQ\0ROLQH,/

)XQGDPHQWDORI6HUYLFH(QJLQHWKHG'HHUH &RPSDQ\0ROLQH,/
*HQHUDO3XUSRVH9HKLFOH0HFKDQLF&'&([WHQVLRQ&RXUVH,QVWLWXWH*XQWHU$LU
)RUFH%DVH0RQWJRPHU\$/
*HQHUDO3XUSRVH9HKLFOH0HFKDQLF&'&([WHQVLRQ&RXUVH,QVWLWXWH*XQWHU$LU
)RUFH%DVH0RQWJRPHU\$/
3ULQFLSOHVRI$XWR PRWLYH9HKLFOHV70+HDGTXDUWHUV'H SDUWPHQWRIWKH$UP\
:DVKLQJWRQ'&
3ULQFLSOHVRI*DVROLQHDQG'LHVHO)XHO6\VWHPV6XEFRXUVH2'86$UP\
&RUUHVSRQGHQFH&RXUVH3URJUDP86$2UGQDQFH&HQWHUDQG6FKRRO$EHUGHHQ3URYLQJ
*URXQG0'

1$9('75$$ 
&6)(1RQUHVLGHQW7UDLQLQJ&RXUVH±8VHU8SGDWH
&6)(PDNHVHYHU\HIIRUWWRNHHSWKHLUPDQXDOVXSWRGDWHDQGIUHHRIWHFKQLFDOHUURUV
:HDSSUHFLDWH\RXUKHOSLQWKLVSURFHVV,I\RXKDYHDQLGHDIRULPSURYLQJWKLVPDQXDO
RULI\RXILQGDQHUURUDW\SRJUDSKLFDOPLVWDNHRUDQLQDFFXUDF\LQ&6)(PDQXDOV
SOHDVHZULWHRUHPDLOXVXVLQJWKLVIRUPRUDSKRWRFRS\%HVXUHWRLQFOXGHWKHH[DFW
FKDSWHUQXPEHUWRSLFGHWDLOHGGHVFULSWLRQDQGFRUUHFWLRQLIDSSOLFDEOH<RXULQSXWZLOO
EHEURXJKWWRWKHDWWHQWLRQRIWKH7HFKQLFDO5HYLHZ&RPPLWWHH7KDQN\RXIRU\RXU
DVVLVWDQFH
:ULWH &6)(1$
*RRGVSHHG6W
3RUW+XHQHPH&$
)$; 
(PDLO &6)(B157&#QDY\PLO

5DWHBBBB&RXUVH1DPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

5HYLVLRQ'DWHBBBBBBBBBB&KDSWHU1XPEHUBBBB3DJH1XPEHUVBBBBBBBBBBBB

'HVFULSWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

2SWLRQDO&RUUHFWLRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

2SWLRQDO<RXU1DPHDQG$GGUHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB




1$9('75$$