Which of the following statements regarding PERLS X capital notes is correct?

	A.	A successful conversion at the mandatory exchange date will increase the issuer's liabilities.
	B.	A capital note issued at its face value will cause the issuer to record a loss in its accumulated retained profits upon conversion to shares.
	C.	Capital notes are treated as equity on the issuer's balance sheet.
	D.	Capital notes are not a security.
	E.	Use of the payment system is required for a successful conversion at the mandatory exchange date.