Mandatorily Convertible Preferred Stock And Warrants 02 2009

The document describes terms for the Treasury Department's Capital Assistance Program, which involves issuing mandatorily convertible preferred stock (Convertible Preferred) and warrants to qualifying financial institutions (QFIs). Key terms include: - QFIs can sell Convertible Preferred to Treasury in an amount from 1-2% of risk-weighted assets, to optionally convert to common stock after 7 years. - Treasury will receive warrants equal to 20% of the Convertible Preferred amount. - Proceeds must be used to redeem existing Treasury preferred stock from the Capital Purchase Program. - Convertible Preferred pays 9% annual dividends and converts at 90% of the stock price average before