Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

RE: deferral

From the prospectus-
"Deferral of distributions would have adverse tax consequences for you and may adversely affect the trading price of the preferred securities.

If distributions on the preferred securities are deferred, you will be required to recognize interest income for United States federal income tax purposes in respect of your ratable share of the interest on the junior subordinated debt securities held by the trust before you receive any cash distributions relating to this interest. In addition, you will not receive this cash if you sold the preferred securities before the end of any deferral period or before the record date relating to distributions which are paid."