As filed with the Securities and Exchange Commission on October 4, 2001
Registration No. 333-
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT
Under
The Securities Act of 1933
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BANK ONE CORPORATION
(Exact name of Registrant as specified in Its charter)
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Delaware 31-0738296
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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1 Bank One Plaza, Chicago, Illinois, 60670, (312) 732-4000
(Address, including zip code, and telephone number, including
area code, of Registrant's principal executive offices)
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Charles W. Scharf
Chief Financial Officer
BANK ONE CORPORATION
1 Bank One Plaza
Chicago, Illinois 60670
(312) 336-2411
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
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With Copies to:
Laurence Goldman, Esq. B. Robbins Kiessling, Esq.
BANK ONE CORPORATION Cravath, Swaine & Moore
1 Bank One Plaza Worldwide Plaza
Chicago, Illinois 60670 825 Eighth Avenue
New York, New York 10019
Approximate date of commencement of proposed sale to the public: From time
to time after the effective date of this Registration Statement, subject to
market conditions and other factors.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [_]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier registration statement for the
same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [X]
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CALCULATION OF REGISTRATION FEE
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Proposed maximum
Title of each class of Amount to be Proposed maximum aggregate
securities to be registered offering price offering price Amount of
registered (1)(2) per unit (1) (1)(3) registration fee
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Debt securities........ 100%
Warrants to purchase
Debt Securities....... --
Foreign Currency
Warrants.............. --
Other Warrants......... --
Preferred Stock(4)..... $12,000,000,000 -- $12,000,000,000 $3,000,000
Depositary Shares
representing Preferred
Stock(5).............. --
Preferred Stock
Warrants.............. --
Common Stock Warrants.. --
Common Stock, $.01 par
value per share(6) --
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(1) In no event will the aggregate initial offering price of the securities
issued under this Registration Statement, and not previously registered
under the Securities Act of 1933, as amended (the "Act"), exceed $ ,
or the equivalent thereof in one or more foreign currencies, or currency
units.
(2) This Registration Statement also serves to register such indeterminate
amount of securities that are to be offered and sold in connection with
market making activities by an affiliate of the Registrant.
(3) Estimated solely for the purpose of calculating the registration fee. Any
offering of Debt Securities or Warrants denominated in any foreign
currency or currency unit will be treated as the equivalent in U.S.
dollars based on the exchange rate applicable to the purchase of such Debt
Securities or Warrants from the Registrant. No separate consideration will
be received for Common Stock, Preferred Stock or Debt Securities that are
issued upon conversion or exchange of Debt Securities, Preferred Stock or
Depositary Shares registered hereunder.
(4) Including such indeterminate number of shares of Preferred Stock as may
from time to time be issued at indeterminate prices or issuable upon
conversion or exchange of Debt Securities or exercise of Warrants.
(5) To be evidenced by Depositary Receipts issued pursuant to a Deposit
Agreement, in the event the Registration elects to offer to the public
fractional interests in shares of the Preferred Stock registered
hereunder. Depositary Receipts will be distributed to those persons
purchasing such fractional interests and the shares of the Preferred Stock
will be issued to the Depositary under the Deposit Agreement.
(6) Including such indeterminate number of shares of Common Stock as may from
time to time be issued (i) at indeterminate prices or (ii) upon exercise
of Warrants or conversion or exchange of Debt Securities or Preferred
Stock to the extent any of such Debt Securities or shares or Preferred
Stock are, by their terms convertible into Common Stock, registered
hereunder.
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The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to Section 8(a), may
determine.
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++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+The information contained in this prospectus is not complete and may be +
+changed. BANK ONE CORPORATION may not sell these securities until the +
+Registration Statement filed with the Securities and Exchange Commission is +
+effective. This prospectus is not an offer to sell these securities and is +
+not soliciting an offer to buy these securities in any state where the offer +
+or sale is not permitted. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Subject to completion, dated October 4, 2001.
PROSPECTUS
[LOGO] BANK ONE
$12,000,000,000
BANK ONE CORPORATION
1 Bank One Plaza, Chicago, Illinois 60670
(312) 732-4000
Debt Securities and Debt Warrants
Currency Warrants, Stock-Index Warrants and Other Warrants
Preferred Stock, Depositary Shares and Preferred Stock Warrants
Common Stock and Common Stock Warrants
This prospectus contains a general description of the securities which BANK
ONE CORPORATION may offer for sale. The specific terms of the securities will
be contained in one or more supplements to this prospectus. Read the prospectus
and any supplement carefully before you invest.
The securities will be unsecured obligations of BANK ONE CORPORATION and will
not be savings accounts, deposits or other obligations of any bank and are not
insured by the Federal Deposit Insurance Corporation, the Bank Insurance Fund
or any other governmental agency.
The common stock of BANK ONE CORPORATION is listed on the New York Stock
Exchange under the trading symbol "ONE".
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved the securities to be issued under this
prospectus or determined if this prospectus is accurate or adequate. Any
representation to the contrary is a criminal offense.
The date of this prospectus is , 2001.
ABOUT THIS PROSPECTUS
This document is called a prospectus. To understand the terms of the
securities offered by this prospectus, you should carefully read this
prospectus with the attached prospectus supplement. This prospectus and the
prospectus supplement together give the specific terms of the securities being
offered. You should also read the documents referred to under the heading
"Where You Can Find More Information" for information on BANK ONE CORPORATION
and its financial statements. BANK ONE has its principal offices at 1 Bank One
Plaza, Chicago, Illinois (telephone: 312-732-4000). Certain capitalized terms
used in this summary are defined elsewhere in this prospectus.
BANK ONE CORPORATION, a Delaware corporation, which is also referred to as
the "Company", "BANK ONE", "us" or "we" filed a registration statement with the
Securities and Exchange Commission under a "shelf" registration procedure.
Under this procedure, BANK ONE may offer and sell from time to time, in one or
more series, up to $12,000,000,000, or the equivalent in one or more foreign
currencies, including composite currencies, of any of the following securities:
. senior or subordinated debt securities,
. debt warrants,
. currency warrants,
. stock-index warrants,
. other warrants,
. preferred stock which could be in the form of depositary shares,
. preferred stock warrants,
. common stock and
. common stock warrants.
The securities may be sold for U.S. dollars, foreign-denominated currency or
currency units. Amounts payable with respect to any securities may be payable
in U.S. dollars or foreign-denominated currency or currency units.
This prospectus provides you with a general description of the securities we
may offer. Each time we offer securities, we will provide you with a prospectus
supplement that will describe the specific amounts, prices and terms of the
securities being offered. The prospectus supplement may also add, update or
change information contained in this prospectus.
The prospectus supplement may also contain information about any relevant
United States federal income tax considerations relating to the securities
covered by the prospectus supplement.
BANK ONE may sell securities to underwriters who will sell the securities to
the public on terms fixed at the time of sale. In addition, the securities may
be sold by BANK ONE directly or through dealers or agents designated from time
to time, which agents may be affiliates of BANK ONE. If BANK ONE, directly or
through agents, solicits offers to purchase the securities, BANK ONE reserves
the sole right to accept and, together with its agents, to reject, in whole or
in part, any offer.
The prospectus supplement will also contain, with respect to the securities
being sold, the names of any underwriters, dealers or agents, together with the
terms of offering, the compensation of any underwriters and the net proceeds to
BANK ONE.
2
Any underwriters, dealers or agents participating in the offering may be
deemed "underwriters" within the meaning of the Securities Act of 1933.
One or more of our subsidiaries may buy and sell any of the securities
offered by this prospectus after the securities are issued as part of their
business as a broker-dealer. Those subsidiaries may use this prospectus and the
related prospectus supplement in these transactions. Any sale by a subsidiary
will be made at the prevailing market price at the time of sale.
WHERE YOU CAN FIND MORE INFORMATION
BANK ONE has filed with the SEC a registration statement under the
Securities Act that registers the distribution of the securities. The
registration statement, including the attached exhibits and schedules, contains
additional relevant information about BANK ONE and BANK ONE's securities. The
rules and regulations of the SEC allow us to omit certain information included
in the registration statement from this prospectus.
In addition, we file reports, proxy statements and other information with
the SEC under the Securities Exchange Act of 1934. You may read and copy this
information at the public reference facility maintained by the SEC at 450 Fifth
Street, N.W., Washington, D.C. 20549.
You may also obtain copies of this information by mail from the Public
Reference Section of the SEC, 450 Fifth Street, N.W., Room 1024, Washington,
D.C. 20549, at prescribed rates. You may obtain information on the operation of
the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC also maintains an Internet world wide web site that contains
reports, proxy statements and other information about issuers, like BANK ONE,
who file electronically with the SEC. The address of that site is
http://www.sec.gov.
You can also inspect reports, proxy statements and other information about
BANK ONE at the offices of the New York Stock Exchange, 20 Broad Street, New
York, New York, and the Chicago Stock Exchange, 440 South LaSalle Street,
Chicago, Illinois.
The SEC allows us to "incorporate by reference" information into this
prospectus. This means that we can disclose important information to you by
referring you to another document filed separately with the SEC. The
information incorporated by reference is considered to be a part of this
prospectus, except for any information that is superseded by information that
is included directly in this document or in a later document that is also
incorporated by reference.
3
This prospectus incorporates by reference the documents listed below that
BANK ONE previously filed with the SEC. They contain important information
about us.
BANK ONE SEC Filings Period
-------------------- ------
Annual Report on Form 10-K......................... Year ended December 31, 2000
Quarterly Reports on Form 10-Q..................... Quarters ended:
. March 31, 2001
.June 30, 2001
Current Reports on Form 8-K........................ Dated:
. January 17, 2001
. February 2, 2001
. February 23, 2001
(as amended by a
Form 8-K/A dated
March 27, 2001)
. April 9, 2001
. April 17, 2001
. June 6, 2001
. June 17, 2001
. July 27, 2001
. September 7, 2001
. September 17, 2001
. October 3, 2001
. October 3, 2001
BANK ONE incorporates by reference additional documents that it may file
with the SEC between the date of this prospectus and the termination of the
offering of the securities. These documents include periodic reports, such as
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K, as well as proxy statements.
You can obtain any of the documents incorporated by reference in this
document through us, or from the SEC through the SEC's web site at the address
described above. Documents incorporated by reference are available from us
without charge, excluding any exhibits to those documents unless the exhibit is
specifically incorporated by reference as an exhibit in this prospectus. You
can obtain documents incorporated by reference in this prospectus by requesting
them in writing or by telephone from us at the following addresses:
Investor Relations
BANK ONE CORPORATION
1 Bank One Plaza
Mail Suite IL1-0460
Chicago, Illinois 60670
Telephone (312) 732-4812
If you request any incorporated documents from us, we will mail them to you
by first class mail, or another equally prompt means, within one business day
after we receive your request.
You should rely only on the information provided in this prospectus and the
prospectus supplement, as well as the information incorporated by reference.
BANK ONE has not authorized anyone to provide you with different information.
BANK ONE is not making an offer of these securities in any state where it is
not permitted. You should not assume that the information in this prospectus,
the prospectus supplement or any other documents incorporated by reference is
accurate as of any date other than the date on the front of the applicable
document.
4
FORWARD-LOOKING STATEMENTS
This prospectus, including information included or incorporated by reference
in this prospectus, contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In addition,
certain statements made in future SEC filings by BANK ONE, in press releases
and in oral and written statements made by BANK ONE which are not statements of
historical fact may constitute forward-looking statements. Forward-looking
statements may relate to, without limitation, BANK ONE's financial condition,
results of operations, plans, objectives, future performance or business. Words
such as "believes," "anticipates," "expects," "intends," "estimates,"
"targeted" and similar expressions are intended to identify forward-looking
statements but are not the only means to identify these statements.
Forward-looking statements involve risks and uncertainties. Actual results
may differ materially from those contemplated by the forward-looking
statements. Factors which could cause this difference--many of which are beyond
BANK ONE's control--include, without limitation:
. local, regional and international conditions may differ from those
expected;
. the effects of and changes in trade, monetary and fiscal policies and
laws, including the interest rate policies of the Federal Reserve Board,
may have an adverse effect on BANK ONE's business;
. the timely development and acceptance of new products and services may be
different than anticipated;
. technological changes, instituted by BANK ONE and by persons by whom BANK
ONE's business may be affected, may be more difficult to accomplish or
more expensive than anticipated or may have unforeseen consequences;
. acquisitions and integration of acquired businesses may be more difficult
or expensive than expected;
. the ability to increase market share and control expenses may be more
difficult than anticipated;
. competitive pressures among financial services companies may increase
significantly;
. changes in laws and regulations (including laws and regulations
concerning taxes, banking, securities and insurance) may adversely affect
BANK ONE or its business;
. changes in accounting policies and practices, as may be adopted by
regulatory agencies and the Financial Accounting Standards Board, may
affect expected financial reporting;
. the costs, effects and outcomes of litigation may adversely affect BANK
ONE or its business; and
. BANK ONE may not manage risks involved in the foregoing as well as
anticipated.
Forward-looking statements speak only as of the date the statements are made.
BANK ONE undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the statement is made,
or to reflect the occurrence of unanticipated events.
BANK ONE CORPORATION
BANK ONE CORPORATION is a bank holding company and a financial holding
company under the Gramm-Leach-Bliley Act of 1999 (the "GLB Act"). BANK ONE was
organized in 1998 under the laws of the State of Delaware to effect the merger,
effective October 2, 1998, of First Chicago NBD Corporation with BANC ONE
CORPORATION.
5
BANK ONE provides domestic retail banking, finance and credit card services;
worldwide commercial banking services; and trust and investment management
services. BANK ONE operates banking offices in Arizona, Colorado, Florida,
Illinois, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Texas, Utah,
West Virginia and Wisconsin. BANK ONE also engages in other businesses related
to banking and finance, including credit card and merchant processing, consumer
and education finance, mortgage lending and servicing, insurance, venture
capital, investment and merchant banking, trust, brokerage, investment
management, leasing, community development and data processing. These
activities are conducted through bank and nonbank subsidiaries.
BANK ONE continually evaluates its business operations and organizational
structures and routinely explores opportunities to (1) acquire financial
institutions and other financial services-related businesses and assets, and
(2) enter into strategic alliances to expand the scope of its services and its
customer base. When consistent with its overall business strategy, BANK ONE
also will sell assets or exit certain businesses and markets.
BANK ONE directly or indirectly raises funds principally to finance the
operations of its nonbank subsidiaries. A substantial portion of BANK ONE's
annual income typically has been derived from dividends from its subsidiaries,
and from interest on loans, some of which are subordinated, to its
subsidiaries.
BANK ONE is a legal entity separate and distinct from BANK ONE's banking
subsidiaries (the "Banks") and BANK ONE's other affiliates. There are various
legal limitations on the extent to which the Banks may extend credit, pay
dividends or otherwise supply funds to BANK ONE.
Under the longstanding policy of the Board of Governors of the Federal
Reserve System (the "Federal Reserve"), a bank holding company is expected to
act as a source of financial strength for its subsidiary banks and to commit
resources to support such banks. As a result of this policy, BANK ONE may be
required to commit resources to the Banks in circumstances where it might not
otherwise do so.
Because BANK ONE is a holding company, its rights and the rights of its
creditors to participate in the distribution and payment of assets of any
subsidiary upon the subsidiary's liquidation or recapitalization would be
subject to the prior claims of the subsidiary's creditors except to the extent
that BANK ONE may itself be a creditor with recognized claims against the
subsidiary.
BANK ONE's executive offices are located at 1 Bank One Plaza, Chicago,
Illinois 60670, and the telephone number is (312) 732-4000.
6
RATIO OF EARNINGS TO FIXED CHARGES
The ratios of earnings to fixed charges for BANK ONE are listed below for
the periods indicated. The ratios are computed on the basis of the total
enterprise (as defined by the SEC) by dividing earnings before fixed charges
and income taxes by fixed charges. Also listed below are the ratios of earnings
to combined fixed charges and preferred stock dividends. These ratios are
computed on the basis of the total enterprise by dividing earnings before fixed
charges and income taxes by fixed charges and preferred stock dividend
requirements for the periods indicated. Fixed charges consist principally of
interest expense on all long- and short-term borrowings, excluding or including
interest on deposits as indicated.
Six Months
Ended
June 30, Year Ended December 31,
----------- ----------------------------
2001 2000 2000 1999 1998 1997 1996
----- ----- ---- ---- ---- ---- ----
Earnings to Fixed Charges:
Excluding interest expense on
deposits.......................... 1.8x 0.6x 0.8x(1) 2.3x 2.3x 2.4x 2.6x
Including interest expense on
deposits.......................... 1.4x 0.8x 0.9x(1) 1.6x 1.5x 1.5x 1.6x
Earnings to Combined Fixed Charges
and Preferred Dividends:
Excluding interest expense on
deposits.......................... 1.8x 0.6x 0.8x(1) 2.3x 2.3x 2.3x 2.5x
Including interest expense on
deposits.......................... 1.4x 0.8x 0.9x(1) 1.6x 1.5x 1.5x 1.6x
--------
(1) Earnings for the year ended December 31, 2000 were insufficient to cover
fixed charges. The coverage deficiency was approximately $1.2 billion.
USE OF PROCEEDS
BANK ONE currently intends to use the net proceeds from the sale of any
securities for general corporate purposes, which may include the reduction of
its short-term indebtedness, investments at the holding company level,
investments in or extensions of credit to its affiliates and other banks and
companies engaged in other financial service activities, possible acquisitions
and any other purpose stated in any prospectus supplement. Pending this use,
BANK ONE may temporarily invest the net proceeds. The precise amounts and
timing of the application of proceeds will depend upon the funding requirements
of BANK ONE and its affiliates and the availability of other funds. Except as
may be described in any prospectus supplement, specific allocations of the
proceeds to these purposes will not have been made at the date of that
prospectus supplement. Based upon the historical and anticipated future growth
of BANK ONE and the financial needs of its affiliates, BANK ONE anticipates
that it will, on a recurrent basis, engage in additional financings of a
character and amount to be determined as the need arises.
REGULATORY MATTERS
The following discussion describes certain of the material elements of the
regulatory framework applicable to bank holding companies and their
subsidiaries and provides certain specific information relevant to BANK ONE.
This regulatory framework is intended primarily for the protection of
depositors and the federal deposit insurance funds and not for the protection
of security holders. To the extent that the following information describes
statutory and regulatory provisions, it is qualified in its entirety by
reference to those provisions. A change in the statutes, regulations or
regulatory policies applicable to BANK ONE or its subsidiaries may have a
material effect on the business of BANK ONE.
7
General
As a registered bank holding company and financial holding company BANK ONE
is subject to regulation under the Bank Holding Company Act of 1956 (the "BHC
Act"), and to inspection, examination and supervision by the Federal Reserve.
The Gramm-Leach-Bliley Act of 1999 (the "GLB Act") eliminated many of the
restrictions placed on the activities of bank holding companies that qualify as
financial holding companies. Among other things, the GLB Act repealed certain
Glass-Steagall Act restrictions on affiliations between banks and securities
firms, and amended the BHC Act to permit bank holding companies that qualify as
"financial holding companies" to engage in activities, and acquire companies
engaged in activities, that are: financial in nature (including insurance
underwriting, insurance company portfolio investment, financial advisory,
securities underwriting, dealing and market-making, and merchant banking
activities); incidental to financial activities; or complementary to financial
activities if the Federal Reserve determines that they pose no substantial risk
to the safety or soundness of depository institutions or the financial system
in general. The GLB Act also permits national banks, under certain
circumstances, to engage through special financial subsidiaries in the
financial and other incidental activities authorized for financial holding
companies.
Bank holding companies (including bank holding companies that also are
financial holding companies) also are required to obtain the prior approval of
the Federal Reserve Board before acquiring more than five percent of any class
of voting stock of any bank that is not already majority-owned by the bank
holding company. The BHC Act, as amended by the Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994 ("Riegle-Neal"), permits bank holding
companies, subject to certain restrictions, to merge with or acquire banks and
branches in any state that has not opted out of Riegle-Neal.
Most of BANK ONE's affiliate banks are national banking associations and, as
such, are subject to regulation primarily by the Office of the Comptroller of
the Currency ("OCC") and, secondarily, by the Federal Deposit Insurance
Corporation ("FDIC") and the Federal Reserve. BANK ONE's state-chartered banks
also are subject to regulation by the FDIC and the Federal Reserve and, in
addition, by their respective state banking departments. The banks' operations
in other countries are subject to various restrictions imposed by the laws of
those countries.
Liability for Bank Subsidiaries
The Federal Reserve requires that a bank holding company act as a source of
financial and managerial strength to each of its subsidiary banks and maintain
resources adequate to support each subsidiary bank. This support may be
required at times when BANK ONE may not have the resources to provide it. In
addition, Section 55 of the National Bank Act, permits the OCC to order the pro
rata assessment of shareholders of a national bank whose capital has become
impaired. If a shareholder fails to pay this assessment, the OCC can order the
sale of the shareholder's stock to cover the deficiency. In the event of a bank
holding company's bankruptcy, any commitment by the bank holding company to a
federal bank regulatory agency to maintain the capital of a subsidiary bank
would be assumed by the bankruptcy trustee and entitled to priority of payment.
Under the Federal Deposit Insurance Act, the FDIC can hold any FDIC-insured
depository institution liable for any loss the FDIC incurs, or reasonably
expects to incur, in connection with (1) the default of a commonly controlled
FDIC-insured depository institution or (2) any assistance provided by the FDIC
to a commonly controlled depository institution that is in danger of default.
"Default" is defined generally as the appointment of a conservator or
8
receiver and "in danger of default" is defined generally as the existence of
certain conditions indicating that a "default" is likely to occur in the
absence of regulatory assistance. All of BANK ONE's subsidiary banks are FDIC-
insured institutions. Also, in the event that such a default occurred with
respect to a bank, any capital loans to the bank from its parent holding
company would be subordinate in right of payment to payment of the bank's
depositors and certain of its other obligations.
Capital Requirements
BANK ONE is subject to capital requirements and guidelines imposed by the
Federal Reserve. The OCC, the FDIC and the Federal Reserve impose similar
requirements and guidelines on BANK ONE's banks within their respective
jurisdictions. These capital requirements establish higher capital standards
for banks and bank holding companies that assume greater risks. For this
purpose, a bank's or holding company's assets and certain specified off-balance
sheet commitments are assigned to four risk categories. Each risk category is
weighted differently based on the level of credit risk that is ascribed to
particular assets or commitments. A bank's or holding company's capital, in
turn, is divided into three tiers:
. core ("Tier 1") capital, which includes common equity, certain qualifying
cumulative and non-cumulative perpetual preferred stock and related
surplus (excluding auction rate issues), and minority interests in equity
accounts of consolidated subsidiaries;
. supplementary ("Tier 2") capital, which includes, perpetual preferred
stock and related surplus not meeting the Tier 1 definition, hybrid
capital instruments, perpetual debt and mandatory convertible securities,
subordinated debt, intermediate-term preferred stock, and allowances for
loan and lease losses; and
. market risk ("Tier 3") capital, which includes qualifying unsecured
subordinated debt.
Goodwill, certain identifiable intangible assets, and certain other assets
must be deducted in calculating the sum of the core capital elements.
BANK ONE, like other bank holding companies, currently is required to
maintain Tier 1 capital equal to at least 4% of its total risk-weighted assets
and total capital (the sum of Tier 1, Tier 2 and Tier 3 capital) equal to at
least 8% of its total risk-weighted assets. At June 30, 2001, BANK ONE met both
requirements, with Tier 1 capital equal to 8.2% and total capital equal to
11.6% of its total risk-weighted assets. Each of the BANK ONE bank subsidiaries
was in compliance with its applicable minimum capital requirement at June 30,
2001.
The Federal Reserve, the FDIC and the OCC have adopted rules to incorporate
market and interest rate risk components into their risk-based capital
standards. Under the market risk requirements, capital is allocated to support
the amount of market risk related to a financial institution's ongoing trading
activities.
Each federal banking regulator may set capital requirements higher than the
minimums noted above for holding companies whose circumstances warrant it. For
example, holding companies experiencing or anticipating significant growth may
be expected to maintain capital ratios including tangible capital positions
well above the minimum levels. Furthermore, the Federal Reserve has indicated
that it will consider a "tangible Tier I capital leverage ratio" (deducting all
intangibles) and other measures of capital strength in evaluating proposals for
expansion or new activities. No federal banking regulator has imposed any
special capital requirement on BANK ONE or the BANK ONE bank subsidiaries.
Failure to meet capital requirements could subject a bank to a variety of
enforcement remedies, including the termination of deposit insurance by the
FDIC, and to certain restrictions on its business, which are described below.
9
The Federal Deposit Insurance Corporation Improvement Act of 1991
("FDICIA"), among other things, identifies five capital categories (from "well
capitalized" to "critically undercapitalized") for insured depository
institutions and requires the respective federal bank regulatory agencies to
implement systems for "prompt corrective action" for insured depository
institutions that do not meet minimum capital requirements within these
categories.
Failure to meet the capital guidelines could subject a depository
institution to capital-raising requirements. An "undercapitalized" depository
institution must develop a capital restoration plan, and its parent holding
company must guarantee the bank's compliance with the plan. In the event of the
bankruptcy of the parent holding company, this guarantee would take priority
over the parent's general unsecured creditors. In addition, FDICIA requires the
federal bank regulatory agencies to prescribe certain non-capital standards for
safety and soundness relating generally to operations and management, asset
quality and executive compensation, and it permits regulatory action against a
financial institution that does not meet these standards.
As of June 30, 2001 each BANK ONE banking subsidiary was "well capitalized,"
based on the "prompt corrective action" ratios and guidelines described above.
It should be noted, however, that a bank's capital category is determined
solely for the purpose of applying the federal banking agencies' "prompt
corrective action" regulations and that the capital category may not constitute
an accurate representation of the bank's overall financial condition or
prospects.
Dividend Restrictions
BANK ONE's national bank subsidiaries are subject to two statutory
limitations on their ability to pay dividends. Under the first, dividends
cannot exceed the level of undivided profits. In addition, a national bank
cannot declare a dividend, without regulatory approval, in an amount in excess
of its net income for the current year combined with the combined net profits
for the preceding two years. State bank subsidiaries may also be subject to
limitations on dividend payments. The amount of dividends available from
certain nonbank subsidiaries that are subject to dividend restrictions is
regulated by the governing agencies to which they report.
Based on these statutory requirements, the bank affiliates could, in the
aggregate, have declared additional dividends of up to approximately $409
million without regulatory approval at January 1, 2001. The payment of
dividends by any bank may also be affected by other factors, such as the
maintenance of adequate capital.
In addition, federal bank regulatory authorities have authority to prohibit
BANK ONE's affiliate banks from engaging in an unsafe or unsound practice in
conducting their business. The payment of dividends, depending upon the
financial condition of the bank in question, could be deemed to constitute an
unsafe or unsound practice. The ability of BANK ONE's affiliate banks to pay
dividends in the future is currently, and could be further, influenced by bank
regulatory policies and capital guidelines.
Depositor Preference Statute
Federal law provides that deposits and certain claims for administrative
expenses and employee compensation against an insured depository institution
are afforded a priority over other general unsecured claims against such
institution, including federal funds and letters of credit, in the "liquidation
or other resolution" of the institution by any receiver.
Other
BANK ONE's nonbank subsidiaries and banking-related business units are
subject to regulation by various state and federal regulatory agencies and
self-regulatory organizations. Activities subject to such regulation include
investment management, investment advisory services, commodities and securities
brokerage, insurance services and products, securities dealing and transfer
agency services.
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DESCRIPTION OF DEBT SECURITIES
General
The debt securities will be unsecured and may be issued in one or more
series. The debt securities may be either senior or subordinated in priority of
payment.
. The senior securities will be issued under an Indenture dated as of
March 3, 1997, originally between BANC ONE and The Chase Manhattan Bank
("Chase"), as trustee, which was supplemented by a First Supplemental
Indenture dated as of October 2, 1998, between BANK ONE and Chase, as
trustee. We refer to this indenture as the "Senior Indenture" in this
prospectus.
. The subordinated securities will be issued under an Indenture dated as
of March 3, 1997, originally between BANC ONE and Chase, as trustee,
which was supplemented by a First Supplemental Indenture dated as of
October 2, 1998, between BANK ONE and Chase, as trustee. We refer to
this indenture as the "Subordinated Indenture" in this prospectus.
. The Senior Indenture and the Subordinated Indenture are collectively
referred to as the "Indentures".
. References to the "Trustee" will mean Chase in its capacity as trustee
under the Senior Indenture or the Subordinated Indenture, as applicable.
The statements under this caption are brief summaries of certain provisions
contained in the Indentures, do not purport to be complete and are qualified in
their entirety by reference to the applicable Indenture, copies of which are
exhibits to the registration statement. Whenever defined terms are used but not
defined in this prospectus, the terms will have the meanings given to them in
the applicable Indenture.
The following material describes certain general terms and provisions of the
debt securities to which any prospectus supplement may relate. The particular
terms of any debt securities and the extent, if any, to which these general
provisions may apply to the debt securities will be described in the prospectus
supplement relating to the debt securities.
Neither of the Indentures limits the aggregate principal amount of debt
securities which may be issued under it. Debt securities of any series may be
issued under either Indenture up to the aggregate principal amount authorized
from time to time by BANK ONE. Debt Securities may be denominated in any
currency or currency unit designated by BANK ONE. Neither the Indentures nor
the debt securities will limit or otherwise restrict the amount of other
indebtedness which may be incurred or the other securities which may be issued
by BANK ONE or any of its subsidiaries.
Debt securities of a series may be issuable in registered form without
coupons, in bearer form with or without coupons attached or in the form of one
or more global securities in registered or bearer form. Bearer securities will
be offered only to non-United States persons and to offices located outside the
United States of certain United States financial institutions.
You should refer to the applicable prospectus supplement for a description
of the following terms, where relevant, of each series of debt securities for
which this prospectus is being delivered:
. the title of the debt securities;
. any limit on the aggregate principal amount or aggregate initial public
offering price of the debt securities;
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. the priority of payment of the debt securities;
. the price or prices, which may be expressed as a percentage of the
aggregate principal amount, at which the debt securities will be issued;
. the date or dates on which the principal of the debt securities will be
payable;
. whether the debt securities will bear interest, any rate or rates of
interest, which may be fixed or variable, or the method of determining
the rate or rates of interest;
. the date or dates from which any interest on the debt securities will
accrue, the date or dates on which any interest will be payable, the
date or dates on which payment of any interest will begin and the
regular record dates for these interest payment dates;
. the extent to which any of the debt securities will be issuable in
temporary or permanent global form, or the manner in which any interest
payable on a temporary or permanent global debt security will be paid;
. each office or agency where, subject to the terms of the applicable
Indenture, the debt securities may be presented for registration of
transfer or exchange;
. the place or places where the principal of, any premium and any interest
on the debt securities will be payable;
. any date or dates after which the debt securities may be redeemed or
purchased in whole or in part, at the option of BANK ONE or mandatorily
under any sinking, purchase or analogous fund or may be required to be
purchased or redeemed at the option of the holder, and the redemption or
repayment price or prices;
. any terms upon which the debt securities may be convertible into or
exchanged for securities or indebtedness of any kind of BANK ONE or of
any other issuer or obligor and the terms and conditions upon which a
conversion or exchange will be effected, including the initial
conversion or exchange price or rate, the conversion period and any
other additional provisions;
. the denomination or denominations in which the debt securities are
authorized to be issued;
. the currency, currencies or units based on or related to currencies for
which the debt securities may be purchased and the currency, currencies
or currency units in which the principal of, any premium and any
interest on the debt securities may be payable;
. any index used to determine the amount of payments of principal of, any
premium and any interest on the debt securities;
. whether any of the debt securities are issuable as bearer securities
and/or registered securities, and if issuable as bearer securities, any
limitations on issuance of such bearer securities and any provisions
regarding the transfer or exchange of the bearer securities including
exchange for registered debt securities of the same series;
. the payment of any additional amounts with respect to the debt
securities;
. whether any of the debt securities will be issued as original issue
discount securities;
. information with respect to any book-entry procedures;
. any additional covenants or Events of Default for a particular series of
debt securities; and
. any other terms of the debt securities not inconsistent with the
provisions of the applicable Indenture.
If any of the debt securities are sold for one or more foreign currencies or
foreign currency units or if the principal of, any premium or any interest on
any series of debt securities is payable in one or
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more foreign currencies or foreign currency units, the restrictions, elections,
tax consequences, specific terms and other information with respect to that
issue of debt securities and the currencies or currency units will be described
in the applicable prospectus supplement. A judgment for money damages by courts
in the United States, including a money judgment based on an obligation
expressed in a foreign currency, will ordinarily be rendered only in U.S.
dollars. New York statutory law provides that a court will render a judgment or
decree in the foreign currency of the underlying obligation and that the
judgment or decree will be converted into U.S. dollars at the exchange rate
prevailing on the date of entry of the judgment or decree.
Debt securities may be issued as original issue discount debt securities
which bear no interest or interest at a rate which at the time of issuance is
below market rates. Original issue discount debt securities will be sold at a
substantial discount below the stated principal amount due at their stated
maturity. There may not be any periodic payments of interest on original issue
discount securities. In the event of an acceleration of the maturity of any
original issue discount security, the amount payable to the holder of the
original issue discount security upon acceleration will be determined in
accordance with the prospectus supplement, the terms of the security and the
Indenture, but will be an amount less than the amount payable at the stated
maturity of the principal of the original issue discount security. Federal
income tax considerations with respect to original issue discount securities
will be described in the applicable prospectus supplement.
Registration and Transfer
Debt securities normally will be issued only as registered securities. If
bearer securities are issued, the United States federal income tax consequences
and other special considerations, procedures and limitations relating to bearer
securities will be described in the applicable prospectus supplement.
Debt securities issued as registered securities will not have interest
coupons. Debt securities issued as bearer securities will have interest coupons
attached, unless issued as zero coupon securities.
Registered securities, other than a global security, may be presented for
transfer, with the form of transfer duly executed, or exchanged for other debt
securities of the same series at the office of the note registrar according to
the terms of the applicable Indenture. BANK ONE has agreed in each of the
Indentures that, with respect to registered securities having The City of New
York as a place of payment, BANK ONE will appoint a note registrar or co-note
registrar located in The City of New York for such transfer or exchange.
Transfer or exchange will be made without service charge, but BANK ONE may
require payment of any taxes or other governmental charges as described in the
applicable Indenture.
Provisions relating to the exchange of bearer securities for other debt
securities of the same series, including, if applicable, registered securities,
will be described in the applicable prospectus supplement. In no event,
however, will registered securities be exchangeable for bearer securities.
Global securities
The debt securities of a series may be issued in whole or in part in the
form of one or more global securities. Each global security will be deposited
with, or on behalf of, a depositary identified in the applicable prospectus
supplement. Global securities may be issued in either registered or bearer form
and in either temporary or permanent form. A global security may not be
transferred except as a whole among the depositary, any successor depositary
and any of their nominees.
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The specific terms of the depositary arrangement with respect to a series of
debt securities and certain limitations and restrictions relating to a series
of bearer securities in the form of one or more global securities will be
described in the applicable prospectus supplement. BANK ONE anticipates that
the following provisions will generally apply to all depositary arrangements.
Upon the issuance of a global security, the depositary or its nominee will
credit, on its book-entry registration and transfer system, the respective
principal amounts of the individual debt securities represented by the global
security to the accounts of persons that have accounts with the depositary. The
underwriters or agents for the debt securities will designate the appropriate
accounts. Ownership of beneficial interests in a global security will be
limited to persons that have accounts with the depositary ("participants") or
persons that may hold interests through participants. Ownership of beneficial
interests in a global security will be shown on, and the transfer of that
ownership will be effected only through, records maintained by the depositary
or its nominee (with respect to interests of participants) and the records of
participants (with respect to interests of persons other than participants).
The laws of some states require that certain purchasers of securities take
physical delivery of the securities in definitive form. These limits and laws
may impair the ability to transfer beneficial interests in a global security.
So long as the depositary or its nominee is the registered owner of a global
security, the depositary or its nominee will be considered the sole owner or
holder of the debt securities represented by the global security for all
purposes under the applicable Indenture. Except as provided below, owners of
beneficial interests in a global security
. will not be entitled to have any of the individual debt securities of the
series represented by the global security registered in their names,
. will not receive or be entitled to receive physical delivery of any debt
securities of the series in definitive form and
. will not be considered the owners or holders of the debt security under
the applicable Indenture.
Payments of principal of, any premium and any interest on individual debt
securities represented by a global security will be made to the depositary or
its nominee as the registered owner of the global security. Neither BANK ONE,
the Trustee, any paying agent nor the note registrar for the debt securities
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of
the global security or for maintaining, supervising or reviewing any records
relating to beneficial ownership interests.
Subject to certain restrictions relating to bearer securities, BANK ONE
expects that the depositary for a series of debt securities or its nominee will
credit participants' accounts immediately upon receipt of any payment on a
permanent global security representing any debt securities in amounts
proportionate to their respective beneficial interests in the principal amount
of the global security. BANK ONE also expects that payments by participants to
owners of beneficial interests in a global security held through these
participants will be governed by standing instructions and customary practices.
This is now the case with securities held for the accounts of customers in
bearer form or registered in "street name". Payments will be the responsibility
of the participants. Payments of principal, premium or interest on a temporary
global security representing bearer securities will be subject to additional
restrictions.
A global security is exchangeable for definitive debt securities registered
in the name of, and a transfer of a global security may be registered to, any
person other than the depositary or its nominee, only if:
(1) the depositary for a series of debt securities is at any time unwilling,
unable or ineligible to continue as depositary and a successor depositary is
not appointed by BANK ONE within 90 days;
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(2) BANK ONE at any time, and in its sole discretion, determines not to have
any debt securities of a series represented by one or more global securities;
or
(3) BANK ONE, in its discretion, specifies with respect to the debt
securities of a series, that an owner of a beneficial interest in a global
security representing debt securities of the series may, on terms acceptable to
BANK ONE, the Trustee and the depositary for the global security, receive debt
securities of the series in definitive form in exchange for beneficial
interests.
In any such instance, an owner of a beneficial interest in a global security
will be entitled to physical delivery in definitive form of debt securities of
the series represented by the global security equal in principal amount to the
owner's beneficial interest and to have the debt securities registered in its
name, if the debt securities of the series are issuable as registered
securities. Debt securities of a series issued in definitive form will be
issued
. as registered securities in denominations, unless otherwise specified by
BANK ONE, of $1,000 and multiples of $1,000 if the debt securities of the
series are issuable as registered securities,
. as bearer securities in the denomination, unless otherwise specified by
BANK ONE, of $5,000 if the debt securities of the series are issuable as
bearer securities or
. as either registered or bearer securities, if the debt securities of the
series are issuable in either form.
Certain restrictions may apply, however, on the issuance of a bearer security
in definitive form in exchange for an interest in a global security.
Payment and Paying Agents
Payment of principal of, any premium and any interest on registered
securities will be made at the office of the paying agent or paying agents
designated by BANK ONE from time to time. In addition, at the option of BANK
ONE, payment of any interest may be made
. by check mailed to the person entitled to payment as that person's
address appears in the applicable note register or
. by wire transfer to an account maintained by the person entitled to
payment as specified in the applicable note register.
Payment of any installment of interest on registered securities will be made
to the person in whose name the debt security is registered at the close of
business on the regular record date for the payment.
Payment of principal of, any premium and any interest on bearer securities
will be payable, subject to any applicable laws and regulations, at the offices
of the paying agents outside the United States designated by BANK ONE from time
to time. The payment will be made, at the option of the holder, by check or by
transfer to an account maintained by the payee with a bank located outside the
United States.
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Payment of interest on bearer securities will be made only against surrender
of the coupon relating to the interest payment date. No payment on any bearer
security will be made at any office or agency of BANK ONE in the United States
or by check mailed to any address in the United States or by transfer to an
account maintained with a bank located in the United States.
Consolidation, Merger or Sale of Assets
Each Indenture provides that BANK ONE may, without the consent of the
holders of any of the debt securities outstanding under the applicable
Indenture, consolidate with, merge into or transfer assets substantially as an
entirety to any person, provided that
. any successor assumes BANK ONE's obligations on the applicable debt
securities and under the applicable Indenture,
. after giving effect to the merger, consolidation or transfer, no Event
of Default (as defined in the Senior Indenture) in the case of the
senior securities, or Default (as defined in the Subordinated Indenture)
in the case of the subordinated securities, will have happened and be
continuing and
. certain other conditions under the applicable Indenture are met.
Any consolidation, merger or transfer of assets substantially as an
entirety, which meets the conditions described above, would not create any
Event of Default or Default which would entitle holders of the debt securities,
or the Trustee on their behalf, to take any of the actions described below
under "Senior Securities--Events of Default, Waivers, etc." or "Subordinated
Securities --Events of Default, Waivers, etc."
Leveraged and Other Transactions
Each Indenture and the debt securities do not contain provisions which would
protect holders of the debt securities in the event of a highly leveraged or
other transaction involving BANK ONE which could adversely affect the holders
of debt securities.
Modification of the Indenture; Waiver of Covenants
Each Indenture provides that, with the consent of the holders of not less
than a majority in aggregate principal amount of the outstanding debt
securities of each affected series, modifications and alterations of the
Indenture may be made which affect the rights of the holders of such debt
securities. However, no such modification or alteration may be made without the
consent of the holder of each debt security so affected which would, among
other things, (1) modify the terms of payment of principal, any premium, or
interest on the debt securities or (2) reduce the percentage in principal
amount of outstanding debt securities required to modify or alter the
Indenture.
Regarding Chase
Chase is the Trustee under both the Senior Indenture and the Subordinated
Indenture. Chase serves as trustee for certain subordinated debt securities
issued by BANK ONE under indentures originally dated as of July 1, 1986, July
15, 1992, April 30, 1993, May 17, 1995 and December 1, 1995. Chase also serves
as the institutional or property trustee under declarations of trust for four
statutory business trusts formed under the laws of the State of Delaware and
sponsored by BANK ONE. In connection with those transactions, Chase also serves
as the debt trustee under indentures originally dated as of November 15, 1996
and as of January 1, 1997, with respect to junior subordinated debentures of
BANK ONE purchased by such trusts and is the also the guarantee trustee under
each of nine guarantee agreements dated as of December 3, 1996, December 5,
16
1996, January 31, 1997, September 20, 1999, August 8, 2000, August 30, 2000
(two guarantee agreements), January 30, 2001 and September 28, 2001
respectively, from BANK ONE to the applicable trust guaranteeing certain
payments to such trust. Chase has a principal corporate trust office at 450
West 33rd Street, New York, New York 10001.
Chase Manhattan Bank USA, National Association ("Chase Delaware"), an
affiliate of Chase, serves as trustee for subordinated debt securities issued
by BANK ONE under an indenture originally dated March 1, 1989. Chase Delaware
also serves as the Delaware trustee for the nine Delaware business trusts
described in the preceding paragraph.
BANK ONE and its affiliates have normal banking relationships with Chase,
Chase Delaware and their affiliates in the ordinary course of business.
SENIOR SECURITIES
The senior securities will be direct, unsecured obligations of BANK ONE and
will rank on a parity with all outstanding unsecured senior indebtedness of
BANK ONE.
Events of Default, Waivers, Etc.
An Event of Default with respect to senior securities of any series is
defined in the Senior Indenture as
(1) default in the payment of principal of or any premium on any of the
outstanding senior securities of that series when due;
(2) default in the payment of interest on any of the outstanding senior
securities of that series when due and continuance of the default for 30
days;
(3) default in the performance of any other covenant of BANK ONE in the
Senior Indenture with respect to senior securities of the series and
continuance of the default for 90 days after written notice;
(4) certain events of bankruptcy, insolvency or reorganization of BANK
ONE; and
(5) any other event that may be specified in a prospectus supplement
with respect to any series of senior securities.
If an Event of Default with respect to any series of outstanding senior
securities occurs and is continuing, either the applicable Trustee or the
holders of not less than 25% in aggregate principal amount of the senior
securities of such series outstanding may declare the principal amount (or if
such senior securities are original issue discount securities, the portion of
the principal amount as may be specified in the terms of that series) of all
senior securities of that series to be immediately due and payable. The holders
of a majority in aggregate principal amount of the senior securities of any
series outstanding under the Senior Indenture may waive an Event of Default
resulting in acceleration of such senior securities, but only if all Events of
Default with respect to senior securities of the series have been remedied and
all payments due, other than those due as a result of acceleration, have been
made.
If an Event of Default occurs and is continuing, the applicable Trustee may,
in its discretion, proceed to protect the rights of the holders of all the
senior securities of the affected series. The Trustee must proceed to protect
those rights if requested in writing by holders of not less than a majority in
aggregate principal amount of the senior securities of any series outstanding
under the Senior Indenture and if it is given reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with the request
and subject to certain other conditions described in the
17
Senior Indenture. Prior to acceleration of maturity of the senior securities of
any series, the holders of a majority in aggregate principal amount of those
senior securities may waive any past default under the Senior Indenture except
a default in the payment of principal of, any premium or interest on the
securities.
The Senior Indenture provides that upon the occurrence of an Event of
Default specified in clauses (1) or (2) of the first paragraph under "--Events
of Defaults, Waivers, etc.", BANK ONE will, upon demand of the applicable
Trustee, pay to it, for the benefit of the holder of any affected senior
security, the whole amount then due and payable on the senior securities for
principal, any premium and interest. The Senior Indenture also provides that if
BANK ONE fails to pay this amount promptly upon demand, the Trustee may, among
other things, institute a judicial proceeding for the collection of the amount
due.
The Senior Indenture also provides that despite any other provision of the
Senior Indenture, the holder of a senior security of any series will have the
right to institute suit for the enforcement of any payment of principal of, any
premium and interest on the senior security when due. This right may not be
impaired without the consent of each holder.
BANK ONE is required to file annually with the applicable Trustee a written
statement of officers as to the existence or non-existence of defaults under
the Senior Indenture or the senior securities.
SUBORDINATED SECURITIES
The subordinated securities will be direct, unsecured obligations of BANK
ONE and, unless otherwise specified in the prospectus supplement relating to a
particular series of subordinated securities, will be subject to the
subordination provisions described below.
Subordination
BANK ONE intends that the subordinated securities be treated as capital for
calculation of regulatory capital ratios. The Federal Reserve has issued
interpretations of its capital regulations indicating that subordinated debt of
bank holding companies issued on or after September 4, 1992 is includable in
capital for calculation of regulatory capital ratios only if the subordination
of the debt meets certain criteria and if the debt may be accelerated only for
bankruptcy, insolvency and similar matters. The Subordinated Indenture contains
subordination and acceleration provisions for the subordinated securities which
are intended to be consistent with these interpretations. Subordinated debt of
BANK ONE, including any of its predecessor corporations, issued after September
4, 1992, which meet the subordination interpretations of the Federal Reserve
are referred to in this prospectus supplement as "new subordinated securities".
Subordinated securities offered by this prospectus will constitute new
subordinated securities.
. Upon any distribution of assets of BANK ONE due to any dissolution,
winding up, liquidation or reorganization of BANK ONE, the payment of
the principal of, any premium and interest on the subordinated
securities is to be subordinated in right of payment, to the extent
provided in the Subordinated Indenture, to the prior payment in full of
all senior indebtedness of BANK ONE.
. In certain events of bankruptcy or insolvency of BANK ONE, the payment
of the principal of, any premium and interest on the subordinated
securities will, to the extent provided in the Subordinated Indenture,
also be effectively subordinated in right of payment to the prior
payment in full of all general obligations of BANK ONE.
. Upon any distribution of assets due to any dissolution, winding up,
liquidation or reorganization of BANK ONE, the holders of senior
indebtedness will first be entitled to receive payment in full of all
amounts due or to become due before the holders of the subordinated
securities will
18
be entitled to receive any payment in respect of the principal of, any
premium or interest on the subordinated securities.
. If after any such payment or distribution of assets to the holders of
senior indebtedness there remain any excess proceeds such as cash,
property or securities available for payment or distribution to the
subordinated securities and if, at such time, any creditors in respect
of general obligations have not received payment in full of all amounts
due or to become due on or in respect of such general obligations, then
these excess proceeds will first be applied to pay or provide for the
payment in full of the general obligations before any payment or
distribution may be made to the new subordinated securities.
. No payment may be made of the principal of, any premium or interest on
the subordinated securities, or in respect of any redemption,
retirement, purchase or other acquisition of any of the subordinated
securities, at any time when
(1) there is a default in the payment of the principal of, any premium
or interest on or otherwise in respect of any senior indebtedness or
(2) any event of default with respect to any senior indebtedness has
occurred and is continuing, or would occur as a result of such
payment on the subordinated securities or any redemption,
retirement, purchase or other acquisition of any of the subordinated
securities, permitting the holders of the senior indebtedness to
accelerate the maturity of the senior indebtedness.
. Due to the subordination provisions of the subordinated securities, in
the event of a distribution of assets upon any dissolution, winding up,
liquidation or reorganization, certain creditors of BANK ONE who are not
holders of senior indebtedness or of the subordinated securities may
recover less, ratably, than holders of senior indebtedness and may
recover more, ratably, than holders of the subordinated securities.
. Due to the subordination of payments and distributions on the new
subordinated securities to creditors in respect of general obligations,
in the event of a distribution of assets upon any dissolution, winding
up, liquidation or reorganization, holders of subordinated securities
issued prior to September 4, 1992 may recover less, ratably, than
creditors in respect of general obligations and may recover more,
ratably, than the holders of new subordinated securities.
. Subject to payment in full of all senior indebtedness, the holders of
subordinated securities will be subrogated to the rights of the holders
of senior indebtedness to receive payments or distributions of cash,
property or securities of BANK ONE applicable to senior indebtedness.
This means that the holders of the subordinated securities will be
entitled to the payments of any amounts that a holder of senior
indebtedness receives to the extent that the holder of the senior
indebtedness receives or has already received full payment of the senior
indebtedness.
. Subject to payment in full of all general obligations, the holders of
the new subordinated securities will be subrogated to the rights of the
creditors in respect of general obligations to receive payments or
distributions of cash, property or securities of BANK ONE applicable to
such creditors in respect of general obligations.
"Senior indebtedness" for purposes of the Subordinated Indenture generally
is the principal of, any premium and interest on
(1) all of BANK ONE's indebtedness for money borrowed, other than
subordinated securities and junior subordinated securities, whether
outstanding on the date of execution of the Subordinated Indenture or
created, assumed or incurred afterward, except indebtedness that is by
its terms expressly stated to be not superior in right of payment to
the subordinated securities or to rank on a parity with the
subordinated securities issued under the Subordinated Indenture; and
(2) any deferrals, renewals or extensions of any such senior indebtedness.
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The term "indebtedness for money borrowed" includes, without limitation, any
obligation of, or
any obligation guaranteed by, BANK ONE for the repayment of borrowed money,
whether or not evidenced by bonds, debentures, notes or other written
instruments, and any deferred obligation for the payment of the purchase price
of property or assets. There is no limitation on the issuance of additional
senior indebtedness of BANK ONE.
The subordinated securities offered by this prospectus rank and will rank on
a parity with the currently existing subordinated indebtedness of BANK ONE,
subject to the obligations of the holders of subordinated securities (and,
generally, holders of other new subordinated securities) to pay over to
creditors in respect of general obligations any proceeds remaining after
payments and distributions to holders of senior indebtedness. In the event of a
distribution of assets of BANK ONE upon any dissolution, winding up,
liquidation or reorganization, the holders of the new subordinated securities,
including holders of the subordinated securities offered by this prospectus,
may receive less, ratably, than holders of subordinated securities issued prior
to September 4, 1992.
The subordinated securities rank and will rank senior to junior subordinated
indebtedness of BANK ONE.
"General obligations" means all obligations of BANK ONE to make payment on
account of claims in respect of derivative products such as interest and
foreign exchange rate contracts, commodity contracts and similar arrangements,
other than
(1) obligations on account of senior indebtedness,
(2) obligations on account of indebtedness for money borrowed ranking on
a parity with or subordinate to the subordinated securities and
(3) obligations which by their terms are expressly stated not to be
superior in right of payment to the subordinated securities or to rank on
parity with the subordinated securities.
In the event that any rule, guideline or interpretation promulgated or
issued by the Federal Reserve, or other competent regulatory agency or
authority, specifies criteria for the inclusion in regulatory capital of
subordinated debt of a bank holding company requiring that subordinated debt be
subordinated to obligations to creditors in addition to those described above,
then the term "general obligations" will also include such additional
obligations to creditors. For purposes of this definition, "claim" has the
meaning assigned in Section 101(4) of the Bankruptcy Code of 1978, as amended
to the date of the Subordinated Indenture.
"Junior subordinated indebtedness", with respect to the subordinated
securities, means the principal of, any premium and interest on all of BANK
ONE's indebtedness for money borrowed, but excluding trade accounts payable
arising in the ordinary course of business, whether outstanding on the date of
execution of the Subordinated Indenture or created, assumed or incurred
afterward and any deferrals, renewals or extensions of such debt, provided such
debt
(1) is by its terms subordinated to the subordinated securities,
(2) is between or among BANK ONE and certain affiliated financing
entities, including all debt securities and guarantees in respect of those
debt securities issued to certain financing entities or a trustee of a
financing entity sponsored by BANK ONE,
(3) is evidenced by securities issued under one of the indentures dated
either as of November 15, 1996 or as of January 1, 1997, each between BANK
ONE and The Chase Manhattan Bank, as trustee unless such securities are by
their terms senior in right of payment to the securities issued previously
under those indentures, or
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(4) is a guarantee of BANK ONE on a subordinated basis under certain
guarantee agreements dated December 3, 1996, December 5, 1996, January 31,
1997, September 20, 1999, August 8, 2000, August 30, 2000 (two guarantee
agreements), January 30, 2001, or September 28, 2001 relating to securities
issued by certain financing entities affiliated with BANK ONE.
The term "indebtedness for money borrowed" as used in the prior paragraph
includes, without limitation, any obligation of, or any obligation guaranteed
by, BANK ONE for the repayment of borrowed money, whether or not evidenced by
bonds, debentures, notes or other written instruments, and any deferred
obligation for the payment of the purchase price of property or assets.
As of June 30, 2001, the aggregate amount of senior indebtedness and general
obligations of BANK ONE was approximately $16.6 billion. As of June 30, 2001,
$6.6 billion aggregate principal amount of existing subordinated securities of
BANK ONE would rank on a parity with the subordinated securities offered by
this prospectus.
Limited Rights of Acceleration
Payment of principal of the subordinated securities may be accelerated only
in case of the bankruptcy, insolvency or reorganization of BANK ONE. There is
no right of acceleration in the case of a default in the payment of principal
of, any premium or interest on the subordinated securities or the performance
of any other covenant of BANK ONE in the Subordinated Indenture. Payment of
principal of certain subordinated securities issued by BANK ONE prior to
September 4, 1992, may also be accelerated in the case of the bankruptcy,
insolvency or receivership of Bank One, National Association (Chicago,
Illinois), or Bank One, Michigan.
Events of Default, Defaults, Waivers, Etc.
An Event of Default with respect to subordinated securities of any series is
defined in the Subordinated Indenture as certain events involving the
bankruptcy, insolvency or reorganization of BANK ONE and any other Event of
Default provided with respect to subordinated securities of that series. A
"Default" with respect to subordinated securities of any series is defined in
the Subordinated Indenture as
(1) an Event of Default with respect to the series;
(2) default in the payment of the principal of or any premium on any
subordinated security of the series when due;
(3) default in the payment of interest upon any subordinated security of
the series when due and the continuance of the default for a period of 30
days;
(4) default in the performance of any other covenant or agreement of
BANK ONE in the Subordinated Indenture with respect to subordinated
securities of the series and continuance of the default for 90 days after
written notice; or
(5) any other Default provided with respect to subordinated securities
of the series.
If an Event of Default with respect to any series of outstanding
subordinated securities occurs and is continuing, either the applicable Trustee
or the holders of not less than 25% in aggregate principal amount of the
subordinated securities of the series may declare the principal amount, or if
such subordinated securities are original issue discount securities, the
portion of the principal amount specified in the terms of that series, of all
subordinated securities of that series to be immediately due and payable. The
holders of a majority in aggregate principal amount of the subordinated
securities of any series outstanding under the Subordinated Indenture may waive
an Event of Default
21
resulting in acceleration of those subordinated securities, but only if all
Defaults have been remedied and all payments due, other than those due as a
result of acceleration, have been made.
If a Default occurs and is continuing, the Trustee may in its discretion
proceed to protect the rights of the holders of the subordinated securities of
an affected series. The Trustee must proceed to protect those rights if
requested in writing by holders of not less than a majority in aggregate
principal amount of the subordinated securities of any series outstanding under
the Subordinated Indenture and if it is given reasonable indemnity against the
costs, expenses and liabilities to be incurred in compliance with the request
and subject to certain other conditions described in the Subordinated
Indenture. Prior to acceleration of maturity of the subordinated securities of
any outstanding series, the holders of a majority in aggregate principal amount
of the subordinated securities may waive any past default under the
Subordinated Indenture except a default in the payment of principal of, any
premium or interest on the subordinated securities of the series.
The Subordinated Indenture provides that in the event of a Default specified
in clauses (2) or (3) of the definition in payment of principal of, any premium
or interest on any subordinated security of any series, BANK ONE will, upon
demand of the applicable Trustee, pay to it, for the benefit of the holder of
that subordinated security, the whole amount then due and payable on that
subordinated security for principal, any premium and interest. The Subordinated
Indenture further provides that if BANK ONE fails to pay the amount promptly
upon demand, the applicable Trustee may, among other things, institute a
judicial proceeding for collection.
The Subordinated Indenture also provides that despite any other provision of
the Subordinated Indenture, the holder of any subordinated security of any
series will have the right to institute suit for the enforcement of any payment
of principal of, any premium and interest on a subordinated security on the
respective stated maturities. This right may not be impaired without the
consent of each holder.
BANK ONE is required to file annually with the applicable Trustee a written
statement of officers as to the existence or non-existence of defaults under
the subordinated Indenture or the subordinated securities.
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DESCRIPTION OF DEBT WARRANTS
BANK ONE may issue warrants for the purchase of debt securities. Debt
warrants may be issued independently or together with any securities offered by
any prospectus supplement and may be attached to, or separate from, those
securities. The debt warrants will be issued under warrant agreements between
BANK ONE and a warrant agent named in the applicable prospectus supplement. The
debt warrant agent will act solely as an agent of BANK ONE in connection with
the debt warrants and will not assume any obligation or relationship of agency
or trust for or with any holders or beneficial owners of debt warrants.
The following summaries of certain provisions of the form of debt warrant
agreement and form of any certificate representing the debt warrants, do not
purport to be complete and are subject to, and are qualified in their entirety
by reference to, all the provisions of the debt warrant agreement and the debt
warrant certificates, respectively, including the definitions contained in
those documents. Any debt warrant agreement or debt warrant certificate will be
filed as exhibits to, or incorporated by reference in, the registration
statement of which this prospectus forms a part.
If debt warrants are offered, the prospectus supplement will describe the
terms of the debt warrants, the debt warrant agreement relating to the debt
warrants and, if applicable, the debt warrant certificates, including the
following:
. the offering price;
. the currency or currency unit in which the price for the debt warrants
may be payable;
. the designation, aggregate principal amount and terms of the debt
securities purchasable upon exercise of the debt warrants;
. the designation and terms of any securities with which the debt warrants
are issued and the number of debt warrants issued with each security;
. if the debt securities purchasable upon exercise of debt warrants are
denominated in a currency or currency unit other than U.S. dollars, the
denomination of the debt securities and the currency or currency units
in which the principal of, any premium and interest on those debt
securities will be payable;
. the date on and after which the debt warrants and the related securities
will be separately transferable;
. the principal amount of debt securities purchasable upon exercise of a
debt warrant and the price at which, and currency or currency units in
which, the principal amount of debt securities may be purchased upon
exercise;
. the date on which the right to exercise the debt warrants will begin and
the date on which the right will end;
. a discussion of any federal income tax, accounting and other special
considerations, procedures and limitations;
. whether the debt warrants will be represented by certificates or issued
in book-entry form; and
. any other terms of the debt warrants, including terms, procedures and
limitations relating to the exchange and exercise of the debt warrants.
23
DESCRIPTION OF CURRENCY WARRANTS
BANK ONE may issue options, warrants or other rights relating to the
exchange of certain currencies which, upon exercise at a permitted time or
times in the future, entitle a holder to receive the cash settlement value of
two designated currencies. Currency warrants may be issued independently or
together with any securities offered by any prospectus supplement and may be
attached to or separate from those securities. The currency warrants will be
issued under warrant agreements between BANK ONE and a warrant agent named in
the applicable prospectus supplement. The currency warrant agent will act
solely as an agent of BANK ONE in connection with the currency warrants and
will not assume any obligation or relationship of agency or trust for or with
any holder or beneficial owners of currency warrants.
The following summaries of certain provisions of the form of currency
warrant agreement and the form of any certificate representing the currency
warrants do not purport to be complete and are subject to and are qualified in
their entirety by reference to all the provisions of the currency warrant
agreement and the currency warrant certificates, respectively, including the
definitions contained in those documents. Any currency warrant agreement or
currency warrant certificate, will be filed as an exhibit to, or incorporated
by reference in, the registration statement of which this prospectus forms a
part.
The currency warrants will not require, or entitle, any holder to sell any
foreign currency to BANK ONE. BANK ONE will make only a U.S. dollar cash
settlement upon exercise of a currency warrant and will not be obligated to
purchase or take delivery of any foreign currency from any holder of a currency
warrant.
The "cash settlement value" of an exercised currency warrant will be an
amount stated in U.S. dollars which is the greater of (1) zero and (2) an
amount equal to (a) the nominal amount of the currency warrant, minus (b) an
amount equal to the nominal amount of the currency warrant times a fraction,
the numerator of which is the strike price of the currency warrant and the
denominator of which is the spot rate of the currency warrant on the exercise
date.
. The "nominal amount" of a currency warrant refers to the principal
amount, expressed in U.S. dollars, of a base currency which is to be
compared to another second currency upon exercise of the currency
warrant. Generally, the base currency will be U.S. dollars.
. The "strike price" is the designated rate of exchange of the base
currency for the second currency which BANK ONE will specify in the
prospectus supplement relating to the currency warrants.
. The "spot rate" refers to the floating rate of exchange of the base
currency for the second currency on any given date, as quoted by a
reference bank or banks or other institution at a designated time of
day. The applicable prospectus supplement will specify the source of
this quotation.
. The "exercise date" refers to the effective date on which the holder of
a currency warrant exercises the currency warrant.
If currency warrants are offered, the prospectus supplement will describe
the terms of the currency warrants, the currency warrant agreement relating to
the currency warrants and any currency warrant certificates, including the
following:
. the aggregate number of currency warrants;
. the nominal amount of each currency warrant;
. the price of the currency warrants;
24
. the base currency and the second currency;
. the strike price for the currency warrants;
. the reference bank or banks or other institution and time of day to be
used to determine the spot rate;
. the date on which the right to exercise the currency warrants will begin
and the date on which the right will end;
. the minimum or maximum amount of currency warrants which may be
exercised at any one time;
. the place or places at which payment of the cash settlement value is to
be made by BANK ONE;
. whether the currency warrants will be represented by certificates or
issued in book-entry form;
. the method by which the currency warrants are to be exercised;
. the federal income tax consequences and other special considerations,
procedures and limitations applicable to the currency warrants; and
. any other terms of the currency warrants, including risk factors
specifically relating to the base currency or second currency and
currency warrants relating to these currencies.
DESCRIPTION OF STOCK-INDEX WARRANTS
BANK ONE may issue options, warrants or other rights which, upon exercise at
a permitted time or times in the future, entitle a holder to receive an amount
of cash determined by reference to increases and/or decreases in the level of a
specified stock index. These stock-index warrants may be issued independently
or together with other securities offered by any prospectus supplement and may
be attached to or separate from these other securities. The stock-index
warrants will be issued under one or more warrant agreements between BANK ONE
and a bank or trust company, as stock-index warrant agent, named in the
applicable prospectus supplement. The stock-index warrant agent will act solely
as an agent of BANK ONE in connection with the stock-index warrants and will
not assume any obligation or relationship of agency or trust for or with any
holder or beneficial owners of stock-index warrants.
The following summaries of certain provisions of the form of stock-index
warrant agreement and form of any certificate representing the stock-index
warrant do not purport to be complete and are subject to, and are qualified in
their entirety by reference to, all the provisions of the stock-index warrant
agreement and the stock-index warrant certificates, respectively, including the
definitions contained in those documents. Any stock-index warrant or stock-
index warrant certificate, will be filed as an exhibit to, or incorporated by
reference in, the registration statement of which this prospectus forms a part.
BANK ONE may issue stock-index warrants either in the form of stock-index
put warrants or stock-index call warrants.
. Stock-index put warrants entitle the holders to receive from BANK ONE
the stock-index cash settlement value, determined at the time of
exercise of the warrant, by reference to the amount, if any, by which
the stock-index exercise price exceeds the closing value of the stock-
index on the valuation date.
. Stock-index call warrants entitle the holders to receive from BANK ONE
the stock-index cash settlement value, determined at the time of
exercise of the warrant, by reference to the
25
amount, if any, by which the closing value of the index on the valuation
date exceeds the stock-index exercise price.
The prospectus supplement for the stock-index warrants will describe the
formula to determine the stock-index cash settlement value.
A stock-index warrant will be settled only in cash and, accordingly, will
not require or entitle a holder to sell, deliver, purchase or take delivery of
any shares of any underlying stock or any other securities. The holders will
not be entitled to any of the rights of the holders of any underlying stock.
If stock-index warrants are offered, the prospectus supplement will describe
the terms of the stock-index warrants, the stock-index warrant agreement
relating to the stock-index warrants and any stock-index warrant certificates,
including the following:
. whether the stock-index warrants are stock-index put warrants, stock-
index call warrants or both;
. the aggregate number of stock-index warrants offered;
. the offering price;
. the stock index for the stock-index warrants, which may be based on one
or more U.S. or foreign stocks or a combination and may be a preexisting
U.S. or foreign stock index compiled and published by a third party or
an index based on one or more underlying stock or stocks selected by
BANK ONE solely in connection with the issuance of the stock-index
warrants, and certain information regarding such stock index and the
underlying stock or stocks;
. the date on which the right to exercise the stock-index warrants begins
and the date on which the right ends;
. the procedures and conditions relating to exercise;
. any circumstances which will cause the stock-index warrants to be deemed
to be automatically exercised;
. any minimum number of stock-index warrants to be exercised at any one
time other than upon automatic exercise and any other restrictions on
exercise;
. any maximum number of the stock-index warrants that may, subject to BANK
ONE's election, be exercised by all owners (or by any person or entity)
on any day;
. the method of providing for a substitute index or otherwise determining
the amount payable in connection with the exercise of the stock-index
warrants if the stock index changes or ceases to be made available by
its publisher;
. any national securities exchange on which the stock-index warrants will
be listed;
. whether the stock-index warrants will be issued in certificated or book-
entry form;
. the place or places at which payment of the stock-index cash settlement
value is to be made by BANK ONE;
. information with respect to any book-entry procedures;
. the plan of distribution of the stock-index warrants;
. the identity of the stock-index warrant agent;
. any provisions permitting a holder of a stock-index warrant to condition
a stock-index exercise notice on the absence of certain specified
changes in the index value after the stock-index warrant exercise date;
and
26
. any other terms of the stock-index warrants, including risk factors
specifically relating to fluctuations in the applicable stock index and
possible illiquidity in the secondary market.
Prospective purchasers of stock-index warrants should be aware that special
U.S. federal income tax, accounting and other considerations may be applicable
to stock-index warrants. The prospectus supplement relating to any issue of
stock-index warrants will describe those considerations.
DESCRIPTION OF OTHER WARRANTS
BANK ONE may issue other options, warrants or rights, if permitted under
applicable law, to buy or sell any of the following exercise items:
. debt securities of, or guaranteed by, the United States,
. a commodity or a unit of a commodity index, or
. some other item or unit of an index, other than indices covered by
stock-index warrants.
Owners of these warrants will be entitled to receive from BANK ONE the cash
settlement value in U.S. dollars of the right to buy or sell the applicable
exercise items. An owner of these warrants will receive a cash payment upon
exercise only if the warrants have a warrant cash settlement value in excess of
zero at that time.
These warrants may be issued independently or together with other securities
offered by any prospectus supplement and may be attached to or separate from
such other securities. The warrants are to be issued under one or more warrant
agreements between BANK ONE and a bank or trust company as warrant agent named
in the applicable prospectus supplement. The warrant agent will act solely as
an agent of BANK ONE in connection with the warrants and will not assume any
obligation or relationship of agency or trust for or with any holder or
beneficial owners of the warrants.
The following summaries of certain provisions of the form of warrant
agreement and form of any certificate representing the warrants do not purport
to be complete and are subject to, and are qualified in their entirety by
reference to, all the provisions of the warrant agreement and the warrant
certificates, respectively, including the definitions contained in these
documents. Any warrant agreement or warrant certificate will be filed as an
exhibit to, or incorporated by reference in, the registration statement of
which this prospectus forms a part.
Unless otherwise indicated in the prospectus supplement, a warrant will be
settled only in cash, in U.S. dollars, and accordingly, will not require or
entitle an owner to sell, deliver, purchase or take delivery of any exercise
items.
If these warrants are offered, the applicable prospectus supplement will
describe the terms of these warrants, including, where applicable, the
following:
. the title and aggregate number of the warrants;
. the offering price;
. the exercise items that the warrants represent the right to buy or sell;
. the procedures and conditions relating to exercise;
. the date on which the right to exercise the warrants will begin and the
date the right will end;
27
. the method of determining the warrant cash settlement value;
. whether the warrants will be issued in certificated or book-entry form;
. whether the warrants will be listed on a national securities exchange;
. information with respect to any book-entry procedures;
. the identity of the warrant agent; and
. any other terms of the warrants, including risk factors relating to
significant fluctuations in the market for the applicable exercise item,
the potential illiquidity of the secondary market and the risk that the
warrants may expire worthless.
Prospective purchasers of these warrants should be aware that special U.S.
federal income tax, accounting and other considerations may be applicable to
these warrants. The prospectus supplement relating to any issue of these
warrants will describe these considerations.
DESCRIPTION OF PREFERRED STOCK
The following description of the terms of the preferred stock describes
certain general terms and provisions of the preferred stock to which any
prospectus supplement may relate. Certain other terms of any series of
preferred stock offered by any prospectus supplement will be specified in the
applicable prospectus supplement. The terms of any series of preferred stock
may differ from the terms described below. The following description of the
terms of the preferred stock does not purport to be complete and is subject to
and qualified in its entirety by reference to the certificate of designation
relating to the applicable series of preferred stock. This certificate of
designation will be filed as an exhibit to, or incorporated by reference in,
the registration statement of which this prospectus forms a part.
General
Under BANK ONE's Restated Certificate of Incorporation, the Board of
Directors of BANK ONE has the authority, without further stockholder action, to
issue from time to time a maximum of 50,000,000 shares of preferred stock,
$0.01 par value, in one or more series. These shares may be issued for such
consideration as may be fixed from time to time by the Board of Directors of
BANK ONE. The Board of Directors is also authorized to set the following terms
of a series of preferred stock before issuance:
. the designation of the series;
. the number of shares to comprise the series;
. the dividend rate or rates payable with respect to the shares of the
series;
. any redemption price or prices and the terms and conditions of the
redemption;
. any voting rights;
. any sinking fund provisions for the redemption or purchase of the shares
of the series;
. any terms and conditions upon which the shares are convertible; and
. any other relative rights, preferences and limitations pertaining to
such series.
As of June 30, 2001, BANK ONE had issued and outstanding 1,191,000 shares of
Preferred Stock with Cumulative and Adjustable Dividends, Series B ($100 stated
value) and 713,800 shares of Preferred Stock with Cumulative and Adjustable
Dividends, Series C ($100 stated value).
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BANK ONE may, at its option, elect to offer depositary shares each
representing a fraction of a share of a particular series of preferred stock
instead of offering full shares of a series of preferred stock.
Under interpretations adopted by the Federal Reserve, if the holders of
preferred stock of any series become entitled to vote for the election of
directors because dividends on such series are in arrears as described under
"Voting Rights" below, such series may then be deemed a "class of voting
securities" and a holder of 25% or more of such series, or a holder of 5% or
more if it otherwise exercises a "controlling influence" over BANK ONE, may
then be subject to regulation as a bank holding company in accordance with the
Bank Holding Company Act of 1956. In addition, at the time a series is deemed a
class of voting securities, any other bank holding company may be required to
obtain the prior approval of the Federal Reserve Board to acquire 5% or more of
the series, and any person other than a bank holding company may be required to
obtain the prior approval of the Federal Reserve Board to acquire 10% or more
of the series.
The preferred stock will have the dividend, liquidation, redemption, voting
and conversion rights described below. Reference is made to the applicable
prospectus supplement relating to the particular series of preferred stock for
specific terms, including:
. the designation, stated value and liquidation preference of the
preferred stock and the number of shares offered;
. the initial public offering price at which the shares will be issued;
. the dividend rate or rates, or method of calculation, the dividend
periods, the date on which dividends will be payable and whether the
dividends will be cumulative or noncumulative and, if cumulative, the
dates from which dividends will begin to cumulate;
. any redemption or sinking fund provisions;
. any conversion provisions;
. whether BANK ONE has elected to offer depositary shares as described
below under "Description of Depositary Shares"; and
. any additional dividend, liquidation, redemption, sinking fund and other
rights, preferences, privileges, limitations and restrictions.
The preferred stock will, when issued, be fully paid and nonassessable. The
shares of each series of preferred stock will rank on a parity in all respects
with BANK ONE's existing preferred stock, described below, and any other series
of preferred stock of BANK ONE which is outstanding at the time. The preferred
stock will have no preemptive rights to subscribe for any additional securities
which may be issued by BANK ONE. First Chicago Trust Division of EquiServe
Limited Partnership, or an affiliate, will be the transfer agent and registrar
for the preferred stock.
Because BANK ONE is a holding company, its rights and the rights of holders
of its securities, including the holders of preferred stock, to participate in
the assets of any BANK ONE subsidiary upon the latter's liquidation or
recapitalization will be subject to the prior claims of such subsidiary's
creditors and preferred stockholders, except to the extent BANK ONE may itself
be a creditor with recognized claims against such subsidiary or a holder of
preferred shares of such subsidiary.
Dividends
As described in the applicable prospectus supplement, the holders of the
preferred stock will be entitled to receive dividends on such preferred stock
when and if declared by the Board of Directors of BANK ONE. These dividends
will be paid only out of funds legally available for such payment. The
29
dividends will be payable at such rates and on such dates as described in the
applicable prospectus supplement. The dividend rates may be fixed or variable
or both. If variable, the formula used for determining the dividend rate for
each dividend period will be specified in the applicable prospectus supplement.
Dividends will be payable to the holders of record as they appear on the
stock books of BANK ONE, or, if applicable, the records of the depositary
referred to below under "Description of Depositary Shares", on the record dates
fixed by the Board of Directors of BANK ONE. Dividends may be paid in the form
of cash, preferred stock, of the same or a different series, or common stock of
BANK ONE, in each case as specified in the applicable prospectus supplement.
Dividends on any series of preferred stock may be cumulative or
noncumulative, as specified in the applicable prospectus supplement. If the
Board of Directors of BANK ONE fails to declare a dividend payable on a
dividend payment date on any preferred stock for which dividends are
noncumulative, then the holders of that preferred stock will have no right to
receive a dividend in respect of the dividend period relating to that dividend
payment date. In such case, BANK ONE will have no obligation to pay the
dividend accrued for that period, whether or not dividends on the preferred
stock are declared or paid on any future dividend payment dates.
BANK ONE will not declare or pay or set apart for payment any dividends on
any series of its preferred shares ranking, as to dividends, on a parity with
or junior to the outstanding preferred stock of any other series unless:
. if the other outstanding series of preferred stock is cumulative, full
cumulative dividends have been, or contemporaneously are, declared and
paid or declared and a sum sufficient for the payment set apart for
payment on that series of preferred stock for all dividend periods
terminating on or prior to the date of payment of any dividends on the
series of preferred shares, or
. if the other series of preferred stock is noncumulative preferred stock,
full dividends for the then-current dividend period on such preferred
stock have been or contemporaneously are declared and paid or declared
and a sum sufficient for the payment set apart for payment.
When dividends are not paid in full upon preferred stock of any series and
any other shares of preferred stock of BANK ONE ranking on a parity as to
dividends with such preferred stock, all dividends declared upon the preferred
stock and any other preferred shares ranking on a parity will be declared pro
rata so that the amount of dividends declared per share on the preferred stock
and the other shares will in all cases bear to each other the same ratio that
the accrued dividends per share on the preferred stock (which will not, if such
preferred stock is noncumulative, include any accumulation for unpaid dividends
for prior dividend periods) and the other preferred shares bear to each other.
Except as described in the preceding paragraph, unless full dividends on the
outstanding cumulative preferred stock of any series have been paid for all
past dividend periods and full dividends for the then-current dividend period
on the outstanding noncumulative preferred stock of any series have been
declared and paid or declared and a sum sufficient for the payment set apart
for payment:
. no dividends (other than in common stock of BANK ONE or other shares of
BANK ONE ranking junior to the preferred stock as to dividends and upon
liquidation) will be declared or paid or set aside for payment nor any
other distribution will be made on the common stock of BANK ONE or on any
other shares of BANK ONE ranking junior to or on a parity with the
preferred stock as to dividends or upon liquidation, and
30
. no common stock or any other shares of BANK ONE ranking junior to or on
a parity with the preferred stock as to dividends or upon liquidation
will be redeemed, purchased or otherwise acquired for any consideration
(or any moneys be paid or made available for a sinking fund for the
redemption of any such shares) by BANK ONE or any subsidiary of BANK ONE
except by conversion into or exchange for shares of BANK ONE ranking
junior to such preferred stock as to dividends and upon liquidation.
Redemption
A series of the preferred stock may be redeemable, in whole or in part, at
the option of BANK ONE. A series of preferred stock also may be subject to
mandatory redemption pursuant to a sinking fund or otherwise. If a series of
preferred stock is subject to either an optional or mandatory redemption, the
terms, the times for redemption and the redemption prices will be specified in
the applicable prospectus supplement. Preferred stock redeemed by BANK ONE will
be restored to the status of authorized but unissued preferred shares.
The prospectus supplement relating to a series of preferred stock that is
subject to mandatory redemption will specify the number of shares that will be
redeemed by BANK ONE in each year, the timing of redemption and the redemption
price per share. Generally, the redemption payment will include an amount equal
to all accrued and unpaid dividends on the preferred stock (which will not, if
such preferred stock is noncumulative, include any accumulation for unpaid
dividends for prior dividend periods) to the date of redemption. The redemption
price may be payable in cash or other property as specified in the applicable
prospectus supplement.
The redemption price for preferred stock of any series may be payable only
from the net proceeds of an issuance of capital stock of BANK ONE. The terms of
this type of preferred stock may provide that if no capital stock is issued or
the net proceeds from any issuance are insufficient to pay in full the
aggregate redemption price, then the preferred stock will automatically and
mandatorily be converted into shares of the applicable capital stock of BANK
ONE. Any conversion provisions will be specified in the applicable prospectus
supplement.
If fewer than all the outstanding shares of preferred stock of any series
are to be redeemed, the number of shares to be redeemed will be determined in a
manner determined by the Board of Directors of BANK ONE. Shares will be
redeemed pro rata from the holders of record in proportion to the number of
shares held by the holders (with adjustments to avoid redemption of fractional
shares) or by lot or by any other method determined by the Board of Directors
of BANK ONE.
If any dividends, including any accumulation on cumulative preferred stock,
of any series are in arrears, no preferred stock of that series will be
redeemed unless all outstanding preferred stock of the series is simultaneously
redeemed. Additionally, BANK ONE will not purchase or otherwise acquire any
preferred stock of the series. The foregoing, however, will not prevent the
purchase or acquisition of preferred stock of the series pursuant to a purchase
or exchange offer, provided the offer is made on the same terms to all holders
of the preferred stock of that series.
Notice of redemption will be given to each record holder of preferred stock
to be redeemed, not less than 30 nor more than 60 days prior to the date fixed
for redemption. The notice will be mailed to the respective addresses of the
holders appearing on the stock books of BANK ONE. Each notice will state:
(1) the redemption date;
(2) the number of shares and series of the preferred stock to be redeemed;
(3) the redemption price;
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(4) the place or places where certificates for the preferred stock are to be
surrendered for payment of the redemption price;
(5) that dividends on the shares to be redeemed will cease to accrue on such
redemption date; and
(6) the date upon which the any conversion rights as to such shares will
terminate.
If fewer than all the shares of preferred stock of any series held by any
holder are to be redeemed, the notice mailed to the holder will also specify
the number of shares of preferred stock to be redeemed from the holder.
If notice of redemption of any shares of preferred stock has been given and
BANK ONE provides money for the payment of the redemption price of the shares,
from and after the redemption date, dividends on the shares will cease to
accrue and the shares will no longer be deemed to be outstanding. In addition,
all rights of the holders as shareholders of BANK ONE, except the right to
receive the redemption price, will cease at such redemption date. Upon proper
surrender of the preferred stock certificates in accordance with the redemption
notices, the redemption price described above and in the applicable prospectus
supplement will be paid out of the funds provided by BANK ONE. If fewer than
all the shares represented by any certificate are redeemed, a new certificate
will be issued representing the unredeemed shares without cost to the holder.
Conversion Rights
The prospectus supplement relating to a series of the preferred stock that
is convertible will state the terms on which shares of the series are
convertible into BANK ONE's common stock or another series of preferred stock.
Rights Upon Liquidation
In the event of any voluntary or involuntary liquidation, dissolution or
winding up of BANK ONE, the holders of preferred stock will be entitled to
receive liquidating distributions in the amount of the liquidation preference
of the preferred stock plus accrued and unpaid dividends out of the assets of
BANK ONE available for distribution to shareholders. This liquidating
distribution will be made before any distribution of assets is made to holders
of common stock or any other class or series of shares ranking junior to the
preferred stock upon liquidation. If the preferred stock is noncumulative
preferred stock, the liquidating distribution will not include any accumulation
for unpaid dividends for prior dividend periods.
If, upon any voluntary or involuntary liquidation, dissolution or winding up
of BANK ONE, the amounts payable with respect to preferred stock of any series
and any other shares of BANK ONE ranking as to any distribution on a parity
with the preferred stock are not paid in full, the holders of the preferred
stock and of the other shares will share ratably in any distribution of assets
of BANK ONE in proportion to the full respective preferential amounts to which
they are entitled. After payment of the full amount of the liquidating
distribution to which they are entitled, the holders of preferred stock of any
series will not be entitled to any further participation in any distribution of
assets by BANK ONE.
Voting Rights
Except as indicated below or except as expressly required by applicable law,
the holders of the preferred stock will not be entitled to vote. In the event
BANK ONE issues full shares of any series of preferred stock, each share will
be entitled to one vote on matters on which holders of the series of the
preferred stock are entitled to vote. However, as more fully described under
"Description of
32
Depositary Shares" below, if BANK ONE elects to issue depositary shares
representing a fraction of a share of a series of preferred stock, each
depositary share will, in effect, be entitled to a fraction of a vote, rather
than a full vote, per depositary share. Since each full share of any series of
preferred stock of BANK ONE will be entitled to one vote, the voting power of a
series, on matters on which holders of that series and holders of other series
of preferred stock are entitled to vote as a single class, will depend on the
number of shares in the series, not the aggregate stated value, liquidation
preference or initial offering price of the shares of such series of preferred
stock.
If the equivalent of six quarterly dividends payable on any series of
preferred stock are in default, the number of directors of BANK ONE will be
increased by two. The holders of all outstanding series of preferred stock,
voting as a single class without regard to series, will be entitled to elect
the additional two directors until all dividends in default have been paid or
declared and set apart for payment.
The affirmative vote or consent of the holders of at least 66 2/3 percent of
the outstanding shares of preferred stock of any series, voting as a class,
will be required for any amendment to BANK ONE's Restated Certificate of
Incorporation, or any supplemental certificate, that will adversely affect the
powers, preferences, privileges or rights of the preferred stock of the series.
The affirmative vote or consent of the holders of at least 66 2/3 percent of
the outstanding shares of preferred stock of any series and any other series of
preferred shares of BANK ONE ranking on a parity with the preferred stock of
the series as to dividends or upon liquidation, voting as a single class
without regard to series, will be required to authorize, effect or validate:
(1) the creation, authorization or issue of any shares of any class of
stock of BANK ONE ranking prior to the preferred stock of the series as to
dividends or upon liquidation, or
(2) the reclassification of any authorized stock of BANK ONE into any
prior shares, or
(3) the creation, authorization or issue of any obligation or security
convertible into or evidencing the right to purchase any prior shares.
Subject to the affirmative vote or consent of the holders of the outstanding
shares of preferred stock of any series, BANK ONE may, by resolution of its
Board of Directors or as otherwise permitted by law, from time to time alter or
change the preferences, rights or powers of the preferred stock of the series.
The holders of the preferred stock of a series will not be entitled to
participate in any vote if, at or prior to the time when any alteration or
change is to take effect, provision is made for the redemption of all the
outstanding preferred stock of the series. Nothing in this section requires a
class vote or consent in connection with the authorization, designation,
increase or issuance of any shares of any class or series, including additional
preferred stock of any series that rank junior to, or on a parity with, the
preferred stock of a series as to dividends and liquidation rights or in
connection with the authorization, designation, increase or issuance of any
bonds, mortgages, debentures or other obligations of BANK ONE.
DESCRIPTION OF DEPOSITARY SHARES
General
BANK ONE may, at its option, elect to offer fractional shares of preferred
stock rather than full shares of preferred stock. If this option is exercised,
BANK ONE will issue receipts for depositary shares, each of which will
represent a fraction of a share of the series of preferred stock as described
in the applicable prospectus supplement.
The shares of any series of preferred stock represented by depositary shares
will be deposited under a deposit agreement between BANK ONE and a bank or
trust company selected by
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BANK ONE. This bank or trust company will have its principal office in the
United States and have a combined capital and surplus of at least $50,000,000.
Subject to the terms of the deposit agreement, each owner of a depositary share
will be entitled to all the rights and preferences of the preferred stock,
including dividend, voting, redemption, conversion and liquidation rights, in
proportion to the applicable fraction of a share of preferred stock represented
by the depositary share.
The depositary shares will be represented by depositary receipts issued
under the deposit agreement. Depositary receipts will be distributed to those
persons purchasing the fractional shares of preferred stock in accordance with
the terms of the offering. Copies of the forms of deposit agreement and
depositary receipt will be filed as exhibits to, or incorporated by reference
in, the registration statement of which this prospectus is a part. The
following summary is qualified in its entirety by reference to these exhibits.
Unless the related depositary shares have previously been called for
redemption, upon surrender of depositary receipts at the principal office of
the preferred stock depositary, the owner of the depositary shares represented
by the receipts is entitled to the number of whole shares of preferred stock
and any money or other property represented by such depositary shares. Partial
shares of preferred stock will not be issued. If the depositary receipts
delivered by the holder entitle the holder to the delivery of any fraction of a
share of preferred stock, the preferred stock depositary will deliver to the
holder the whole shares of preferred stock which the holder is entitled to and
a new depositary receipt representing the fractional share holding. After
withdrawing shares of preferred stock, holders will not be entitled to deposit
shares under the deposit agreement or to receive depositary shares for their
shares of preferred stock. BANK ONE does not expect that there will be any
public trading market for withdrawn shares of preferred stock.
Dividends and Other Distributions
The preferred stock depositary will distribute all cash dividends or other
cash distributions received on the preferred stock to the record holders of
depositary shares relating to such preferred stock in proportion to the numbers
of depositary shares owned by such holders. The preferred stock depositary will
distribute only the amount, however, as can be distributed without attributing
to any holder of depositary shares a fraction of one cent. Any balance not so
distributed will be added to and treated as part of the next sum received by
the preferred stock depositary for distribution to record holders of depositary
shares.
In the event of a distribution other than in cash, the preferred stock
depositary will distribute property received by it to the record holders of
depositary shares entitled to such distribution, unless the preferred stock
depositary determines that it is not feasible to distribute the property. If
the depositary determines that distribution is not feasible, the preferred
stock depositary may, with the approval of BANK ONE, sell the property and
distribute the net proceeds from the sale to holders.
Redemption of Depositary Shares
If a series of preferred stock represented by depositary shares is subject
to redemption, the depositary shares will be redeemed from the proceeds
received by the preferred stock depositary resulting from the redemption of the
series of preferred stock held by the depositary. The preferred stock
depositary will mail notice of redemption not less than 30 nor more than 60
days prior to the date fixed for redemption to the record holders of the
depositary shares to be redeemed. The notice will be mailed to the holders'
addresses appearing in the preferred stock depositary's books. The redemption
price per depositary share will be equal to the applicable fraction of the
redemption price per share payable on the series of preferred stock. Whenever
BANK ONE redeems shares of preferred stock held by the preferred stock
depositary, the depositary will redeem as of the same redemption date the
number of depositary shares representing shares of preferred stock so
34
redeemed. If less than all the depositary shares are to be redeemed, the
depositary shares to be redeemed will be selected by lot or pro rata as
determined by the preferred stock depositary.
After the date fixed for redemption, the depositary shares called for
redemption will no longer be deemed to be outstanding. On the redemption date,
all rights of the holders of the depositary shares will cease, except the right
to receive the moneys payable upon redemption and any money or other property
to which the holders of depositary shares were entitled upon redemption upon
surrender to the preferred stock depositary of the depositary receipts
representing the depositary shares.
Voting the preferred stock
Upon receipt of notice of any meeting at which the holders of the preferred
stock are entitled to vote, the preferred stock depositary will mail the
information contained in the notice to the record holders of the depositary
shares relating to the preferred stock. Each record holder of depositary shares
on the record date, which will be the same date as the record date for the
preferred stock, will be entitled to instruct the preferred stock depositary as
to the exercise of the voting rights pertaining
to the amount of the preferred stock represented by the holder's depositary
shares. The preferred stock depositary will endeavor, if practicable, to vote
the amount of the preferred stock represented by depositary shares in
accordance with the instructions it receives. BANK ONE will agree to take all
action which may be deemed necessary by the preferred stock depositary in order
to enable the preferred stock depositary to do so. The preferred stock
depositary will abstain from voting shares of the preferred stock to the extent
it does not receive specific instructions from the holders of depositary shares
representing the preferred stock.
Taxation
Owners of the depositary shares will be treated for federal income tax
purposes as if they were owners of the series of preferred stock represented by
these depositary shares. Accordingly, owners will be entitled to take into
account for federal income tax purposes income and deductions to which they
would be entitled if they were holders of the series of preferred stock. In
addition,
. no gain or loss will be recognized for federal income tax purposes upon
the withdrawal of preferred stock in exchange for depositary shares as
provided in the deposit agreement,
. the tax basis of each share of preferred stock to an exchanging owner of
depositary shares will, upon exchange, be the same as the aggregate tax
basis of the depositary shares exchanged and
. the holding period for shares of the preferred stock in the hands of an
exchanging owner of depositary shares who held depositary shares as a
capital asset at the time of the exchange for preferred stock will
include the period during which the person owned the depositary shares.
Amendment and Termination of the Deposit Agreement
The form of depositary receipt representing the depositary shares and any
provision of the deposit agreement may at any time be amended by agreement
between BANK ONE and the preferred stock depositary. However, any amendment
which materially and adversely alters the rights of the holders of depositary
shares will not be effective unless such amendment has been approved by the
holders of at least a majority of the outstanding depositary shares. The
deposit agreement may be terminated by BANK ONE or the preferred stock
depositary only if (1) all outstanding depositary shares have been redeemed, or
(2) there has been a final distribution on the preferred stock in connection
with any liquidation, dissolution or winding up of BANK ONE and the
distribution has been distributed to the holders of depositary receipts.
35
Charges of Preferred Stock Depositary
BANK ONE will pay all transfer and other taxes and governmental charges
arising solely from the existence of the depositary arrangements. BANK ONE will
pay charges of the preferred stock depositary in connection with the initial
deposit of the preferred stock and any redemption of the preferred stock.
Holders of depositary receipts will pay other transfer and other taxes and
governmental charges and such other charges as are expressly provided in the
deposit agreement to be for their accounts.
Miscellaneous
The preferred stock depositary will forward to the holders of depositary
shares all reports and communications from BANK ONE which are delivered to the
preferred stock depositary and which BANK ONE is required to furnish to the
holders of the preferred stock.
Neither the preferred stock depositary nor BANK ONE will be liable if it is
prevented or delayed by law or any circumstance beyond its control in
performing its obligations under the deposit agreement. The obligations of BANK
ONE and the preferred stock depositary under the deposit agreement will be
limited to performance in good faith of their duties under the agreement. They
will not be obligated to prosecute or defend any legal proceeding in respect of
any depositary shares or preferred stock unless satisfactory indemnity is
furnished. They may rely upon written advice of counsel or accountants, or
information provided by persons presenting preferred stock for deposit, holders
of depositary receipts or other persons believed to be competent and on
documents believed to be genuine.
Resignation and Removal of Preferred Stock Depositary
The preferred stock depositary may resign at any time by delivering to BANK
ONE notice of its election to do so. In addition, BANK ONE may at any time
remove the preferred stock depositary. Any resignation or removal will take
effect upon the appointment of a successor preferred stock depositary and the
acceptance of the successor depositary of its appointment. A successor
preferred stock depositary must be appointed within 60 days after delivery of
the notice of resignation or removal and must be a bank or trust company having
its principal office in the United States and having a combined capital and
surplus of at least $50,000,000.
DESCRIPTION OF EXISTING PREFERRED STOCK
The outstanding Series B preferred stock and Series C preferred stock of
BANK ONE were issued as of October 2, 1998, as part of the merger of BANC ONE
and First Chicago NBD in exchange for two similar series of preferred stock of
First Chicago NBD then outstanding. The two series of preferred stock were
originally issued by a predecessor corporation of First Chicago NBD in February
1983, and February 1984, respectively. The dividend rate on each series is
adjusted quarterly, based on a formula that considers the interest rates for
selected short- and long-term U.S. Treasury securities at the time the rate is
set. The existing preferred stock ranks prior to BANK ONE's common stock, both
as to dividends and upon liquidation, but has no general voting rights, except
as described under "Description of Preferred Stock -- Voting Rights". Each
series of the preferred stock ranks on a parity with the other series of
preferred stock with respect to dividends and liquidation rights.
The Series B preferred stock is subject to a minimum annual dividend rate of
6 percent and maximum annual dividend rate of 12.00 percent. The annualized
dividend rate for the quarterly period ended November 30, 2001, is 6.00
percent. Shares of this series are redeemable, at the
36
option of BANK ONE, at their stated value of $100 per share plus accrued and
unpaid dividends. Shares of this series are not convertible into other
securities of BANK ONE.
The Series C preferred stock is subject to a minimum annual dividend rate of
6.50 percent and maximum annual dividend rate of 12.50 percent. The annualized
dividend rate for the quarterly period ended November 30, 2001, is 6.50
percent. Shares of this series are redeemable, at the option of BANK ONE, at
their stated value of $100 per share plus accrued and unpaid dividends. Shares
of this series are not convertible into other securities of BANK ONE.
The shares of the outstanding existing preferred stock are listed on the New
York Stock Exchange. EquiServe Trust Company, N.A., or an affiliate, serves as
transfer agent, registrar and dividend disbursing agent for shares of the
existing preferred stock.
DESCRIPTION OF PREFERRED STOCK WARRANTS
BANK ONE may issue warrants for the purchase of preferred stock. Preferred
stock warrants may be issued independently or together with other securities
offered by any prospectus supplement and may be attached to or separate from
such other securities. Each series of preferred stock warrants will be issued
under one or more warrant agreements between BANK ONE and a bank or trust
company, as preferred stock warrant agent, named in the applicable prospectus
supplement. The preferred stock warrant agent will act solely as an agent of
BANK ONE in connection with the preferred stock warrants and will not assume
any obligation or relationship of agency or trust for or with any holders of
preferred stock warrant certificates or beneficial owners of preferred stock
warrants.
The following summaries of certain provisions of the form of preferred stock
warrant agreement and form of any certificate representing the preferred stock
warrants do not purport to be complete and are subject to and are qualified in
their entirety by reference to all the provisions of the preferred stock
warrant agreement and the preferred stock warrant certificates. Any preferred
stock warrant agreement and certificate will be filed as an exhibit to, or
incorporated by reference in, the registration statement of which this
prospectus forms a part.
If preferred stock warrants are offered, the applicable prospectus
supplement will describe the terms of the preferred stock warrants, the
preferred stock warrant agreement and any preferred stock warrant certificates,
including the following, where applicable:
. the offering price;
. the designation, aggregate number and terms of the series of preferred
stock purchasable upon exercise of the preferred stock warrants and
minimum number of preferred stock warrants that are exercisable;
. the designation and terms of any securities with which the preferred
stock warrants are being offered and the number of preferred stock
warrants being offered with each security;
. any date on and after which preferred stock warrants and the related
securities will be transferable separately;
. the number and stated values of the series of preferred stock
purchasable upon exercise of each preferred stock warrant and the price
at which the number of shares of preferred stock of the series may be
purchased upon exercise;
. the date on which the right to exercise the preferred stock warrant will
begin and the date on which the right will end;
37
. whether the preferred stock warrants represented by the preferred stock
warrant certificates will be issued in registered or bearer form;
. information with respect to any book-entry procedures; and
. any other terms of the preferred stock warrants for the purchase of
shares of preferred stock.
Preferred stock warrant certificates may be exchanged for new preferred
stock warrant certificates of different denominations. If in registered form,
they may also be presented for registration of transfer and may be exercised at
the corporate trust office of the preferred stock warrant agent or any other
office indicated in the applicable prospectus supplement. Prior to the exercise
of any preferred stock warrant, a holder will have no rights of a holder of
shares of the preferred stock purchasable upon exercise, including the right to
receive payment of any dividends on the underlying preferred stock or the right
to vote the underlying preferred stock.
Prospective purchasers of preferred stock warrants should be aware that
special U.S. federal income tax, accounting and other considerations may be
applicable to preferred stock warrants. The prospectus supplement relating to
any issue of preferred stock warrants will describe these considerations.
DESCRIPTION OF COMMON STOCK WARRANTS
BANK ONE may issue warrants for the purchase of common stock. Common stock
warrants may be issued independently or together with other securities offered
by any prospectus supplement and may be attached to or separate from such
securities. Each series of common stock warrants will be issued under one or
more warrant agreements between BANK ONE and a bank or trust company, as common
stock warrant agent, named in the applicable prospectus supplement. The common
stock warrant agent will act solely as an agent of BANK ONE in connection with
the common stock warrants and will not assume any obligation or relationship of
agency or trust for or with any holders or beneficial owners of common stock
warrant.
The following summaries of certain provisions of the form of common stock
warrant agreement and any certificate representing common stock warrants do not
purport to be complete and are subject to and are qualified in their entirety
by reference to all the provisions of the common stock warrant agreement and
the common stock warrant certificate. Any common stock warrant agreement and
certificate will be filed as an exhibit to, or incorporated by reference in the
registration statement which this prospectus forms a part of.
If common stock warrants are offered, the related prospectus supplement will
describe the terms of the common stock warrants, the common stock warrant
agreement and, any common stock warrant certificates, including the following,
where applicable:
. the offering price;
. the aggregate number of shares of common stock purchasable upon exercise
of the common stock warrants and minimum number of common stock warrants
that are exercisable;
. the designation and terms of any securities offered with the common
stock warrants and the number of common stock warrants being offered
with each security;
. any date on and after which the common stock warrants and the related
securities will be transferable separately;
. the number of shares of common stock purchasable upon exercise of each
common stock warrant and the price at which the number of shares of
common stock may be purchased upon the exercise;
38
. the date on which the right to exercise the common stock warrants will
begin and the date on which the right will end;
. whether the common stock warrants represented by the common stock
warrant certificates will be issued in registered or bearer form;
. information with respect to any book-entry procedures; and
. any other terms of the common stock warrants for the purchase of shares
of common stock.
Common stock warrant certificates may be exchanged for new common stock
warrant certificates of different denominations. If in registered form, they
may also be presented for registration of transfer and may be exercised at the
corporate trust office of the common stock warrant agent or any other office
indicated in the applicable prospectus supplement. Prior to the exercise of any
common stock warrant, a holder will have no rights of a holder of shares of the
common stock purchasable upon exercise, including the right to receive payments
of any dividends on the common stock purchasable upon exercise or to exercise
any applicable right to vote.
Prospective purchasers of common stock warrants should be aware that special
U.S. federal income tax, accounting and other considerations may be applicable
to common stock warrants. The prospectus supplement relating to any issue of
common stock warrants will describe these considerations.
DESCRIPTION OF COMMON STOCK
General
BANK ONE is authorized to issue 4,000,000,000 shares of common stock, $0.01
par value per share. As of June 30, 2001, there were outstanding 1,181,382,000
shares of BANK ONE's common stock.
Holders of BANK ONE's common stock are entitled to receive dividends when,
as and if declared by the Board of Directors out of any funds legally
available. So long as any shares of BANK ONE's preferred stock are outstanding,
however, no dividends, other than dividends payable in common stock, or other
distributions, including redemptions and purchases, may be made with respect to
the common stock unless full cumulative dividends on BANK ONE's preferred stock
have been made. Holders of BANK ONE's common stock are entitled upon the
liquidation or winding up of BANK ONE, after claims of creditors and
preferences of BANK ONE's preferred stock, to receive pro rata the net assets
of BANK ONE.
The holders of the common stock are entitled to one vote for each share held
and are vested with all of the voting power, except as the Board of Directors
of BANK ONE has provided with respect to the outstanding shares of BANK ONE's
existing preferred stock or may provide, in the future, with respect to any
other series of preferred stock which it may authorize after the date of this
prospectus. Generally, holders of BANK ONE's Series B preferred stock and
Series C preferred stock have no voting rights.
The shares of common stock have non-cumulative voting rights, which means
that the holders of more than 50% of the shares of common stock voting for the
election of directors can elect 100% of the directors standing for election at
any meeting if they choose to do so. The holders of the remaining shares voting
for the election of directors will not be able to elect any person or persons
to the Board of Directors of BANK ONE at that meeting.
BANK ONE's Restated Certificate of Incorporation includes specific
provisions with respect to mergers and other business combinations. In general,
these provisions require that, in the case of a
39
proposed merger or other business combination involving BANK ONE and an
"interested stockholder" (as defined in the Restated Certificate of
Incorporation), the holders of at least a majority of the voting power of all
shares of voting stock held by persons who are not interested stockholders or
persons affiliated with interested stockholders must approve this transaction,
unless the business combination has been approved by a majority of directors
not affiliated with the interested stockholder or unless certain conditions
regarding minimum price and procedural protections are met with respect to
each class of BANK ONE's then outstanding voting stock. The provisions of the
Restated Certificate of Incorporation also require that the Board of Directors
will not approve a proposal for a business combination or a tender offer until
the Board of Directors has evaluated the proposal in light of its effect on
the stockholders and employees of BANK ONE and the communities served by
BANK ONE. These provisions of the Restated Certificate of Incorporation could
be used to make a change in control of BANK ONE more difficult.
The issued and outstanding shares of BANK ONE's common stock are fully paid
and nonassessable. The holders of BANK ONE's common stock do not have any
preemptive rights to subscribe for additional shares of capital stock of BANK
ONE. The holders of common stock have no conversion rights. The common stock
is not subject to redemption by either BANK ONE or a stockholder. There is no
restriction on the purchase by BANK ONE of shares of common stock except for
certain regulatory limits.
BANK ONE's common stock is listed on the New York and Chicago Stock
Exchanges. EquiServe Trust Company, N.A., or an affiliate, is the transfer
agent, registrar and dividend disbursing agent for the common stock.
PLAN OF DISTRIBUTION
The securities may be offered and sold from time to time in one or more
transactions:
. at a fixed price or prices, which may be changed from time to time,
. at market prices prevailing at the time of sale,
. at prices related to prevailing market prices or
. at negotiated prices.
Each prospectus supplement will describe the method of distribution of the
securities offered by it.
BANK ONE may sell securities
. directly,
. through agents designated from time to time,
. through underwriting syndicates led by one or more managing underwriters
or
. through one or more underwriters acting alone.
Each prospectus supplement will describe the terms of the securities,
including the name or names of any underwriters or agents, the public offering
or purchase price and the net proceeds to BANK ONE, any underwriting discounts
and other items constituting underwriters' compensation, any discounts and
commissions allowed or paid to dealers, any commissions allowed or paid to
agents, and any securities exchange or exchanges on which such securities will
be listed. Dealer trading may take place in certain of the securities,
including securities not listed on any securities exchange.
Securities may be purchased to be reoffered to the public through
underwriting syndicates led by one or more managing underwriters, or through
one or more underwriters acting alone. The
40
underwriter or underwriters for each underwritten offering of securities will
be named in the applicable prospectus supplement. If an underwriting syndicate
is used, the managing underwriter or underwriters will be listed on the cover
page of the prospectus supplement. Unless otherwise described in the applicable
prospectus supplement, the obligations of the underwriters to purchase the
securities will be subject to certain prior conditions and each of the
underwriters with respect to a sale of securities will be obligated to purchase
all of its securities if any are purchased. Any initial public offering price
and any discounts or concession allowed or reallowed or paid to dealers may be
changed from time to time.
Securities may be offered and sold by BANK ONE through agents designated by
BANK ONE from time to time. Any agent involved in the offer and sale of any
securities will be named, and any commissions payable by BANK ONE to an agent
will be described, in the applicable prospectus supplement. Any agent will be
acting on a reasonable efforts basis for the period of its appointment.
Offers to purchase securities may be solicited directly by BANK ONE and
sales may be made by BANK ONE directly to institutional investors or others who
may be deemed to be underwriters within the meaning of the Securities Act with
respect to any resale of the securities. The terms of these sales will be
described in the applicable prospectus supplement. BANK ONE may also issue
contracts which require the counterparty to purchase securities. These
contracts would be issued with securities in amounts, at prices and on terms
described in a prospectus supplement.
The anticipated place and time of delivery of securities will be described
in the applicable prospectus supplement.
If indicated in the applicable prospectus supplement, BANK ONE will
authorize underwriters or agents to solicit offers by certain institutions to
purchase securities from BANK ONE under delayed delivery contracts. These
contracts provide for payment and delivery at a future date. Institutions with
which such contracts may be made include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and
charitable institutions and others, but in all cases such institutions must be
approved by BANK ONE. Unless otherwise described in the applicable prospectus
supplement, the obligations of any purchaser under any such contract will not
be subject to any conditions except that (1) the purchase of the securities
will not at the time of delivery be prohibited under applicable laws, and (2)
if the securities are also being sold to underwriters acting as principals for
their own account, the underwriters will have purchased all securities not sold
for delayed delivery. The underwriters or agents will not have any
responsibility in respect of the validity or performance of delayed delivery
contracts.
Any underwriter or agent participating in the distribution of the securities
may be deemed to be an underwriter, as that term is defined in the Securities
Act, of the securities offered and sold. Any discounts or commissions received
by them from BANK ONE and any profit realized by them on the sale or resale of
the securities may be deemed to be underwriting discounts and commissions under
the Securities Act.
Underwriters and agents may be entitled, under agreements entered into with
BANK ONE, to indemnification by BANK ONE against certain civil liabilities,
including liabilities under the Securities Act, or to contribution with respect
to payments which underwriters or agents may be required to make in respect of
these liabilities. Certain underwriters and agents including their associates,
may be customers of, engage in transactions with and perform services for, BANK
ONE and its subsidiaries in the ordinary course of business.
Banc One Capital Markets, Inc., an affiliate of BANK ONE, may from time to
time act as an agent or underwriter in connection with the sale of the
securities to the extent permitted by applicable law. The participation of Banc
One Capital Markets in the offer and sale of the securities will comply
41
with Rule 2720 of the Conduct Rules of the National Association of Securities
Dealers, Inc. regarding the offer and sale of securities of an affiliate.
This prospectus and related prospectus supplements may be used by Banc One
Capital Markets in connection with offers and sales related to secondary market
transactions in the securities to the extent permitted by applicable law. Banc
One Capital Markets may act as principal or agent in such transactions. Such
sales will be made at prices related to prevailing market prices at the time of
sale.
LEGAL OPINIONS
Certain legal matters relating to the securities offered by this prospectus
will be passed upon for BANK ONE by Christine A. Edwards, Executive Vice
President, Chief Legal Officer and Secretary of BANK ONE, and for any
underwriters, selling agents and certain other purchasers by Cravath, Swaine &
Moore, Worldwide Plaza, 825 Eighth Avenue, New York, New York 10019. Cravath,
Swaine & Moore performs legal services for BANK ONE from time to time.
EXPERTS
The consolidated financial statements of BANK ONE included in the Annual
Report on Form 10-K for the year ended December 31, 2000, incorporated herein
by reference have been audited by Arthur Andersen LLP, independent public
accountants, as indicated in their report with respect thereto, and are
incorporated herein by reference in reliance upon the authority of said firm as
expert in accounting and auditing in giving said report.
42
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
SEC Filing Fee.................................................. $3,000,000
Rating Agency Fees.............................................. 800,000*
Legal Fees and Expenses......................................... 150,000*
Trustees' Fees and Expenses..................................... 100,000*
Printing and Engraving Expenses................................. 200,000*
Accounting Fees and Expense..................................... 300,000*
Miscellaneous Expenses.......................................... 40,000*
----------
Total....................................................... $4,590,000*
==========
--------
* Estimated
Item 15. Indemnification of Officers and Directors
The Registrant is a Delaware corporation. Section 145 of the General
Corporation Law of the State of Delaware contains detailed provisions on
indemnification of directors and officers of a Delaware corporation against
expenses, judgments, fines and amounts paid in settlement actually and
reasonably incurred in connection with certain litigation.
The Registrant's Restated Certificate of Incorporation (the "Certificate"),
provides for indemnification of directors and officers. The Registrant's
Certificate provides that the Registrant will indemnify each director, officer,
employee or agent of the Registrant or any individual serving in such a
capacity with another business entity at the Registrant's request (an
"Indemnitee") to the full extent permitted by the General Corporation Law of
the State of Delaware ("Delaware Law") or any other applicable laws as
presently or hereinafter in effect against all expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such Indemnitee in connection therewith. The Registrant's
Certificate also authorizes the Registrant to enter into agreements with any
person providing for indemnification greater or different than that provided
therein. The Registrant's Certificate provides that expenses incurred by a
director, officer or employee in defending an action, suit or proceeding shall
be paid by the Registrant in advance of the final disposition of such action
upon receipt of an undertaking by or on behalf of such person that he will
repay such amount if it is ultimately determined that he is not entitled to be
indemnified by the Registrant. The Registrant's Certificate and the Delaware
Law also provide that the indemnification provisions of the Registrant's
Certificate and the statute are not exclusive of any other right to which a
person seeking indemnification and advancement of expenses may be entitled
under any statute, by-laws, agreement, vote of stockholders or disinterested
directors or otherwise.
The directors and officers of the Registrant are covered by an insurance
policy indemnifying them against certain civil liabilities, including
liabilities under the federal securities laws, which might be incurred by them
in such capacity.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers or persons controlling the
Registrant pursuant to the foregoing provisions, the Registrant has been
informed that in the opinion of the Securities and Exchange Commission, such
indemnification is against public policy as expressed in the Act and is
therefore unenforceable.
II-1
Item 16. Exhibits
Exhibit
No. Description
------- -----------
1.1 Form of Debt Securities Underwriting Agreement (incorporated by
reference to Exhibit 1.1 to the BANC ONE CORPORATION's Registration
Statement on Form S-3 (File No. 33-60807)).
1.2 Form of Debt Securities Distribution Agreement (incorporated by
reference to Exhibit 1.2 to the BANC ONE CORPORATION's Registration
Statement on Form S-3 (File No. 333-22413)).
1.3 Form of Warrant Underwriting Agreement.**
1.4 Form of Preferred Stock Underwriting Agreement.**
1.5 Form of Common Stock Underwriting Agreement.**
3.1 Restated Certificate of Incorporation of the Registrant.
3.2 By-laws of the Registrant (incorporated by reference to Exhibit 3.2 to
the Registrant's Registration Statement on Form S-3 (File No. 333-
80903)).
4.1 Indenture relating to senior securities between the Registrant and The
Chase Manhattan Bank, as trustee (incorporated by reference to Exhibit
4.1 to BANC ONE CORPORATION's Registration Statement on Form S-3 (File
No. 333-22413)).
4.1(b) First Supplemental Indenture relating to senior securities between the
Registrant and The Chase Manhattan Bank, as trustee (incorporated by
reference to Exhibit 4.1(b) to the Registrant's Registration Statement
on Form S-3 (File No. 333-38387)).
4.2 Indenture relating to subordinated securities between the Registrant
and The Chase Manhattan Bank, as trustee (incorporated by reference to
Exhibit 4.2 to BANC ONE CORPORATION's Registration Statement on Form
S-3 (File No. 333-22413)).
4.2(b) First Supplemental Indenture relating to subordinated securities
between the Registrant and The Chase Manhattan Bank, as trustee
(incorporated by reference to Exhibit 4.2(b) to the Registrant's
Registration Statement on Form S-3 (File No. 333-38387)).
4.3 Form of Senior Note (incorporated by reference to Exhibit 4.3 to the
Registrant's Registration Statement on Form S-3 (File No. 333-38387)).
4.4 Form of Subordinated Note (incorporated by reference to Exhibit 4.4 to
the Registrant's Registration Statement on Form S-3 (File No. 333-
38387)).
4.5 Form of Senior Medium-Term Note (Fixed Rate) (incorporated by
reference to Exhibit 4.5 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.6 Form of Senior Medium-Term Note (Floating Rate) (incorporated by
reference to Exhibit 4.6 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.7 Form of Subordinated Medium-Term Note (Fixed Rate) (incorporated by
reference to Exhibit 4.7 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.8 Form of Subordinated Medium-Term Note (Floating Rate) (incorporated by
reference to Exhibit 4.8 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.9 Form of Debt Warrant Agreement (for Warrants attached to Debt
Securities, including form of Debt Warrant Certificate).**
4.10 Form of Debt Warrant Agreement (for Warrants not attached to Debt
Securities, including form of Debt Warrant Certificate).**
4.11 Form of Currency Warrant Agreement (including form of Global Warrant
Certificate).**
4.12 Form of Stock Index Warrant Agreement (including form of Stock Index
Warrant Certificate).**
II-2
Exhibit
No. Description
------- -----------
4.13 Form of Other Warrant Agreement (including form of Other Warrant
Certificate).**
4.14 Form of Deposit Agreement, with form of Depositary Receipt as an
exhibit thereto.**
4.15 Form of Preferred Stock Warrant Agreement (including form of Preferred
Stock Warrant Certificate).**
4.16 Form of Common Stock Warrant Agreement (including form of Common Stock
Warrant Certificate).**
5 Opinion of Christine A. Edwards, Executive Vice President, Chief Legal
Officer and Secretary of the Registrant, including consent.
12 Computation of Ratio of Earnings to Fixed Charges.
23.1 Consent of Christine A. Edwards, Executive Vice President, Chief Legal
Officer and Secretary and General Counsel of the Registrant (included
in Exhibit 5).
23.2 Consent of Arthur Andersen LLP.
24 Powers of Attorney.
25.1 Form T-1 Statement of Eligibility of The Chase Manhattan Bank under
the Trust Indenture Act of 1939 with respect to senior Debt
Securities.
25.2 Form T-1 Statement of Eligibility of The Chase Manhattan Bank under
the Trust Indenture Act of 1939 with respect to subordinated Debt
Securities.
--------
** To be incorporated by reference herein in connection with the offering of
each series of Securities.
Item 17. Undertakings
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement: (i) to include
any prospectus required by Section 10(a) (3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-
effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
registration statement (notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than a 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the
effective registration statement); and (iii) to include any material
information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such
information in the registration statement. Provided, however, that (1) (i)
and (1) (ii) do not apply if the information required to be included in a
post-effective amendment by those items is contained in periodic reports
filed by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference to this
registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
II-3
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) That, for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrants's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in the registration statement shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the provisions described
under the Item 15 above or otherwise, the Registrant has been advised that
in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of
expenses incurred or paid by a director, officer or controlling person of
the Registrant in the successful defense of any action, suit or proceeding)
is asserted against the Registrant by such director, officer or controlling
person in connection with the securities being registered, the Registrant
will, unless the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
(6) To file an application for the purpose of determining the
eligibility of the trustee to act under subsection (a) of Section 310 of
the Trust Indenture Act in accordance with the rules and regulations
prescribed by the Commission under Section 305(b)(2) of the Trust Indenture
Act.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing this Registration Statement on Form S-3 and has duly
caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Chicago, State of
Illinois, on October 4, 2001.
BANK ONE CORPORATION
/s/ Michael J. Cavanagh
By: _________________________________
Michael J. Cavanagh
Treasurer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated:
Signature Title Date
--------- ----- ----
/s/ John H. Bryan* Director October 4, 2001
___________________________________
John H. Bryan
/s/ James S. Crown* Director October 4, 2001
___________________________________
James S. Crown
/s/ James Dimon* Director and Principal October 4, 2001
___________________________________ Executive Officer
James Dimon
/s/ Dr. Maureen A. Fay, O.P.* Director October 4, 2001
___________________________________
Dr. Maureen A. Fay, O.P.
/s/ John R. Hall* Director October 4, 2001
___________________________________
John R. Hall
/s/ Laban P. Jackson, Jr.* Director October 4, 2001
___________________________________
Laban P. Jackson, Jr.
/s/ John W. Kessler* Director October 4, 2001
___________________________________
John W. Kessler
/s/ Richard A. Manoogian* Director October 4, 2001
___________________________________
Richard A. Manoogian
/s/ William T. McCormick* Director October 4, 2001
___________________________________
William T. McCormick
Director October 4, 2001
___________________________________
Heidi G. Miller
Director October 4, 2001
___________________________________
David C. Novak
II-5
Signature Title Date
--------- ----- ----
/s/ John W. Rogers, Jr.* Director October 4, 2001
___________________________________
John W. Rogers, Jr.
/s/ Frederick P. Stratton, Jr.* Director October 4, 2001
___________________________________
Frederick P. Stratton, Jr.
Director October 4, 2001
___________________________________
Robert D. Walter
/s/ Melissa Moore* Principal Accounting October 4, 2001
___________________________________ Officer
Melissa Moore
/s/ Charles W. Scharf* Principal Financial October 4, 2001
___________________________________ Officer
Charles W. Scharf
--------
* The undersigned, by signing her name hereto, does hereby sign this
Registration Statement on behalf of each of the above-indicated directors
and officers of the Registrant pursuant to a power of attorney signed by
such directors and officers.
/s/ Laurence Goldman
_____________________________________
Laurence Goldman
Attorney-in-Fact
II-6
Exhibit Index
Exhibit
No. Description
------- -----------
1.1 Form of Debt Securities Underwriting Agreement (incorporated by
reference to Exhibit 1.1 to the BANC ONE CORPORATION's Registration
Statement on Form S-3 (File No. 33-60807)).
1.2 Form of Debt Securities Distribution Agreement (incorporated by
reference to Exhibit 1.2 to the BANC ONE CORPORATION's Registration
Statement on Form S-3 (File No. 333-22413)).
1.3 Form of Warrant Underwriting Agreement.**
1.4 Form of Preferred Stock Underwriting Agreement.**
1.5 Form of Common Stock Underwriting Agreement.**
3.1 Restated Certificate of Incorporation of the Registrant.
3.2 By-laws of the Registrant (incorporated by reference to Exhibit 3.2 to
the Registrant's Registration Statement on Form S-3 (File No. 333-
80903)).
4.1 Indenture relating to senior securities between the Registrant and The
Chase Manhattan Bank, as trustee (incorporated by reference to Exhibit
4.1 to BANC ONE CORPORATION's Registration Statement on Form S-3 (File
No. 333-22413)).
4.1(b) First Supplemental Indenture relating to senior securities between the
Registrant and The Chase Manhattan Bank, as trustee (incorporated by
reference to Exhibit 4.1(b) to the Registrant's Registration Statement
on Form S-3 (File No. 333-38387)).
4.2 Indenture relating to subordinated securities between the Registrant
and The Chase Manhattan Bank, as trustee (incorporated by reference to
Exhibit 4.2 to BANC ONE CORPORATION's Registration Statement on Form
S-3 (File No. 333-22413)).
4.2(b) First Supplemental Indenture relating to subordinated securities
between the Registrant and The Chase Manhattan Bank, as trustee
(incorporated by reference to Exhibit 4.2(b) to the Registrant's
Registration Statement on Form S-3 (File No. 333-38387)).
4.3 Form of Senior Note (incorporated by reference to Exhibit 4.3 to the
Registrant's Registration Statement on Form S-3 (File No. 333-38387)).
4.4 Form of Subordinated Note (incorporated by reference to Exhibit 4.4 to
the Registrant's Registration Statement on Form S-3 (File No. 333-
38387)).
4.5 Form of Senior Medium-Term Note (Fixed Rate) (incorporated by
reference to Exhibit 4.5 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.6 Form of Senior Medium-Term Note (Floating Rate) (incorporated by
reference to Exhibit 4.6 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.7 Form of Subordinated Medium-Term Note (Fixed Rate) (incorporated by
reference to Exhibit 4.7 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.8 Form of Subordinated Medium-Term Note (Floating Rate) (incorporated by
reference to Exhibit 4.8 to the Registrant's Registration Statement on
Form S-3 (File No. 333-38387)).
4.9 Form of Debt Warrant Agreement (for Warrants attached to Debt
Securities, including form of Debt Warrant Certificate).**
4.10 Form of Debt Warrant Agreement (for Warrants not attached to Debt
Securities, including form of Debt Warrant Certificate).**
4.11 Form of Currency Warrant Agreement (including form of Global Warrant
Certificate).**
4.12 Form of Stock Index Warrant Agreement (including form of Stock Index
Warrant Certificate).**
Exhibit
No. Description
------- -----------
4.13 Form of Other Warrant Agreement (including form of Other Warrant
Certificate).**
4.14 Form of Deposit Agreement, with form of Depositary Receipt as an
exhibit thereto.**
4.15 Form of Preferred Stock Warrant Agreement (including form of Preferred
Stock Warrant Certificate).**
4.16 Form of Common Stock Warrant Agreement (including form of Common Stock
Warrant Certificate).**
5 Opinion of Christine A. Edwards, Executive Vice President, Chief Legal
Officer and Secretary of the Registrant, including consent.
12 Computation of Ratio of Earnings to Fixed Charges.
23.1 Consent of Christine A. Edwards, Executive Vice President, Chief Legal
Officer and Secretary and General Counsel of the Registrant (included
in Exhibit 5).
23.2 Consent of Arthur Andersen LLP.
24 Powers of Attorney.
25.1 Form T-1 Statement of Eligibility of The Chase Manhattan Bank under
the Trust Indenture Act of 1939 with respect to senior Debt
Securities.
25.2 Form T-1 Statement of Eligibility of The Chase Manhattan Bank under
the Trust Indenture Act of 1939 with respect to subordinated Debt
Securities.
--------
** To be incorporated by reference herein in connection with the offering of
each series of Securities.