Business: Popular Inc., 6.375% Non-cumulative Monthly Income Preferred Stock, 2003 Series A, liquidation preference $25 per share, redeemable at the issuer's option on or after 3/31/2008 at $25.50 per share declining to $25 per share by 3/31/2010 plus declared and unpaid dividends, and with no stated maturity. <p> Non-cumulative distributions of 6.375% ($1.59375) per annum paid monthly on the last day of each month to holders of record on the 15th day of each month (NOTE: the ex-dividend date is one business day prior to the record date). The dividends are non-cumulative and if the board of directors does not declare a dividend or the company fails to pay a dividend declared by the board for any quarterly dividend period, the holder will not be entitled to receive any dividend for that quarterly period and the undeclared or unpaid dividend will not accumulate. <p> Dividends paid by these preference shares are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) but, since they are issued by a foreign company, are NOT eligible for the dividends received deduction for corporate holders.<p> In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.