on an acquisition event (where a person acquires control of  MBL or the Company), where MBL’s common equity Tier 1  capital ratio falls below 5.125 per cent, or where APRA  determines MBL would be non-viable without an exchange  or a public sector injection of capital (or equivalent support). If exchange occurs, a variable number of the Company's  ordinary shares will be issued at a 5 per cent discount to the  share price, as quoted on the ASX and converted to US  dollars, determined over a period immediately prior to the  date of that exchange. No ECS were exchanged during the financial year. The total  number of ordinary shares that would be issued if ECS were  exchanged at 31 March 2014 would be 5,067,970  (31 March 2013: 6,800,228). The maximum number of  ordinary shares that can be issued on an exchange is  17,689,525.  The ECS will only be redeemable, subject to APRA’s written  approval, at the discretion of the Bank in limited  circumstances, including following a change in law that has  an impact on the regulatory or tax treatment of the ECS.  As at 31 March 2014, the remaining principal liability related  to the ECS was US$250 million (31 March 2013: US$250  million).  On 7 June 2013, the Company issued six million Macquarie  Group Capital Notes (MCN) at face value of $100 each.  These instruments are non-cumulative and unsecured and  may be redeemed at face value on 7 June 2018, 7  December 2018 or 7 June 2019 (subject to certain  conditions being satisfied) or earlier in specified  circumstances. MCN may also be exchanged into a variable number of the  Company’s ordinary shares (subject to certain conditions  being satisfied) on these redemption dates or mandatorily  exchanged on 7 June 2021. The MCN may also  be exchanged earlier on an acquisition event (where a  person acquires control of the Company) or where APRA  determines the Company would be non-viable without an  exchange or a public sector injection of capital (or equivalent  support).  The maximum that MCN Holders will receive in the event of  an exchange is $101 worth of ordinary shares per MCN held.  The total number of ordinary shares that would be issued if  MCN were exchanged at 31 March 2014 would be  10,824,681. The maximum number of ordinary shares that  can be issued on an exchange is 70,721,358. The MCN pay discretionary, floating rate cash distributions  equal to 180-day BBSW plus a fixed margin of 4.00 percent  per annum, adjusted for franking credits, paid semi-annually.  If interest is not paid on the MCN, the Company will be  restricted from paying dividends or returning capital on  ordinary shares until the next interest payment date.  Subject to certain conditions being met, the ECS will be  exchanged for a variable number of fully paid ordinary shares  of the Company on 20 June 2017, or on any interest  payment date thereafter, with exchange to occur no later  than 20 June 2057. The ECS may also be exchanged earlier  The ECS, being unsecured subordinated notes, pay  discretionary, non-cumulative interest of 10.25 per cent per  annum, payable semi annually in arrears, with the rate to be  reset on 20 June 2017 (and each fifth anniversary thereafter)  if the ECS remain outstanding after this time. If interest is not  paid on the ECS, MBL and the Company will be restricted  from paying dividends or returning capital on their ordinary  shares until the next interest payment date.  On 26 March 2012, MBL, acting through its London Branch,  issued US$250 million of Exchangeable Capital Securities  (ECS). The total number of MGL preference shares that would be  issued if Macquarie PMI were exchanged at 31 March 2014  would be 400,000 (31 March 2013: 400,000).  The Macquarie PMI bear discretionary fixed-rate coupons at  8.375 per cent per annum, paid semi-annually. If coupons  are not paid, the Company will be restricted from paying  dividends or returning capital on ordinary shares until two full  coupon payments have been made.  On 2 December 2010, Macquarie PMI LLC, a subsidiary of  the Company, issued $US400 million of US$ denominated  Preferred Membership Interests (Macquarie PMI). These  instruments are non-cumulative and unsecured equity  interests in the issuer. They are redeemable at the  Company’s option, subject to various conditions, on any  distribution date from 2 December 2015, and are non- dilutive, as they will only exchange to MGL preference shares  in specified circumstances, and mandatorily on 26  November 2035. In July 2008, Macquarie CPS Trust, a subsidiary of the  Company issued six million Macquarie CPS at face value of  $100 each. These instruments were non-cumulative and  unsecured and were potentially convertible to Macquarie  ordinary shares. These instruments were redeemed during  the year. Agreements between the Consolidated Entity and the  lenders provide that, in the event of liquidation, entitlement of  such lenders to repayment of the principal sum and interest  thereon is and shall at all times be and remain subordinated  to the rights of all other present and future creditors of the  Consolidated Entity. Details of selected capital instruments  are discussed below.  Macquarie Convertible Preference Securities  Macquarie Preferred Membership Interests  Macquarie Group Capital Notes  Exchangeable Capital Securities  140  Subordinated debt  Loan capital  Note 27  macquarie.com.au  Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  Notes to the financial statements  for the financial year ended 31 March 2014  continued 