PF Finans / Clarinova

Governing Law:

The Bonds shall be governed by and construed in accordance with the substantive laws of the Kingdom of Sweden. Any dispute or claim arising in relation to the Bonds shall be determined by Swedish courts, with the District Court of Stockholm to be the court of first instance.

Risk factors

A number of risk factors could influence the Company’s activities (including those beyond Clarinovas’s control). The following summarises, in no particular order, some of the risk factors and circumstances considered to be of material significance to the Company’s future development. Further risks that at present are not known to the Company may have a material impact on the Company’s operations, financial position and results. The reader should also read and carefully consider the more detailed description of the various risk factors set out under the section “Risk Factors”, together with the other information in this Prospectus. Risks relating to the Company - Financial risks and risks relating to the current macroeconomic environment The Company’s performance depends on its current management team The Company hav a limited operating history, past performance is not indicative of future performance -There is currently no market for the Bonds -The Bonds are not rated by any rating agency -The Bonds are limited recouse obligations ot the Company -The Bonds may be affected by currency risks -Counterpart risks -The weighted average life of SLS -Change in Tax law, withholding taxes and no gross up -The Bonds are not guaranteed by the Company ot any Counterparty -Non compliance with restrictions on ownershir of the Bonds and the United States investment company act of 1940, would adversely affect the Company -Below investment grade assets involve particular risks -Risks relating to the SLS such as longevity risk, liquidity and lapse risk, contract and enforceable riskm litigation risk and solvency risk Risks relating to the Bonds -Priorities of Bonds

Clarinova, operations and market in brief

Clarinova is a SPV formed 30 November 2010. Clarinova’s business concept is to acquire, develop a portfolio of financial assets such as SLS. The financing of the operations is via a Bond issue, which has the form of a structured financial instrument.

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