PNC Bank 2014 Annual Report Download - page 194

These Trust Securities are automatically exchangeable as set forth above under certain conditions relating to the capitalization or
the financial condition of PNC Bank, National Association (PNC Bank) and upon the direction of the Office of the Comptroller of
the Currency.
On March 15, 2013 we redeemed all $375 million of the PNC Preferred Funding Trust III securities with a distribution rate of
8.7%.
Table 107: Summary of Replacement Capital Covenants of Perpetual Trust Securities
Replacement Capital Covenant (RCC) (a) Trust Description of Capital Covenants
Trust I RCC PNC Preferred Funding Trust I Neither we nor our subsidiaries (other than PNC Bank and its
subsidiaries) would purchase the Trust Securities, the LLC Preferred
Securities or the PNC Bank Preferred Stock unless such repurchases or
redemptions are made from proceeds of the issuance of certain qualified
securities and pursuant to the other terms and conditions set forth in the
Trust I RCC.
Trust II RCC PNC Preferred Funding Trust II Until March 29, 2017, neither we nor our subsidiaries would purchase
or redeem the Trust II Securities, the LLC Preferred Securities or the
Series I Preferred Stock unless such repurchases or redemptions are
made from proceeds of the issuance of certain qualified securities and
pursuant to the other terms and conditions set forth in the Trust II RCC.
(a) As of December 31, 2014, each of the Trust I RCC and the Trust II RCC are for the benefit of holders of our $200 million of Floating Rate Junior Subordinated Notes issued in June
1998.
Table 108: Summary of Contractual Commitments of Perpetual Trust Securities
Trust Description of Restrictions on Dividend Payments (c)
PNC Preferred Funding Trust I (a) If full dividends are not paid in a dividend period, neither PNC Bank nor its subsidiaries will declare
or pay dividends or other distributions with respect to, or redeem, purchase or acquire or make a
liquidation payment with respect to, any of its equity capital securities during the next succeeding
period (other than to holders of the LLC Preferred Securities and any parity equity securities issued
by the LLC). (d)
PNC Preferred Funding Trust II (b) If full dividends are not paid in a dividend period, PNC will not declare or pay dividends with
respect to, or redeem, purchase or acquire, any of its equity capital securities during the next
succeeding dividend period. (e)
(a) Contractual commitments made by PNC Bank.
(b) Contractual commitments made by PNC.
(c) Applies to the applicable Trust Securities and the LLC Preferred Securities.
(d) Except: (i) in the case of dividends payable to subsidiaries of PNC Bank, to PNC Bank or another wholly-owned subsidiary of PNC Bank or (ii) in the case of dividends payable to
persons that are not subsidiaries of PNC Bank, to such persons only if, (A) in the case of a cash dividend, PNC has first irrevocably committed to contribute amounts at least equal to
such cash dividend or (B) in the case of in-kind dividends payable by PNC REIT Corp., PNC has committed to purchase such in-kind dividend from the applicable PNC REIT Corp.
holders in exchange for a cash payment representing the market value of such in-kind dividend, and PNC has committed to contribute such in-kind dividend to PNC Bank.
(e) Except for: (i) purchases, redemptions or other acquisitions of shares of capital stock of PNC in connection with any employment contract, benefit plan or other similar arrangement
with or for the benefit of employees, officers, directors or consultants, (ii) purchases of shares of common stock of PNC pursuant to a contractually binding requirement to buy stock
existing prior to the commencement of the extension period, including under a contractually binding stock repurchase plan, (iii) any dividend in connection with the implementation of
a shareholders’ rights plan, or the redemption or repurchase of any rights under any such plan, (iv) as a result of any exchange or conversion of any class or series of PNC’s capital
stock for any other class or series of PNC’s capital stock, (v) the purchase of fractional interests in shares of PNC capital stock pursuant to the conversion or exchange provisions of
such stock or the security being converted or exchanged or (vi) any stock dividends paid by PNC where the dividend stock is the same stock as that on which the dividend is being
paid.
176 The PNC Financial Services Group, Inc. – Form 10-K