Canadian Bank Notes
Potential 9.54% per year
7-year maximum term note*
You get paid when the index representing Canadian banks (‘’Index’’) has remained the same or is higher on the valuation date in a given year. Note is offered by a Canadian bank and the notes are not principal protected.
You invest a sum in a note issued by a Canadian bank (the “Note”). The date the investment starts is called the valuation date (the “Valuation Date”). A year following your Valuation Date, if the Index has remained the same or is higher, the Note will be redeemed, and investors will receive all their principal plus 9.54% interest. If the Index is down, the investment continues for a 2nd, 3rd, 4th, 5th, 6th and/or 7th year. If at the end of any of those years the Index is positive since your Valuation Date, you will receive 9.54% per year and get back your capital. Example, if the Index is down for the first two years and recovers to the initial Index level on the third year, your interest payment would be 3 x 9.54% = 28.62%*.
What if index is never up on the annual valuation date?
After 7 years, your capital will be returned if the Index has not fallen more than 30% since your Valuation Date. If at end of the 7th year, the Index has decreased more than 30%, your capital is at risk and you will lose the respective percentage that the Index is down. For example, if the Index is down 39%, your loss will be 39% from your initial investment.
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*A person should reach a decision to invest in a Note only after carefully considering, with his or her investment, legal, accounting, tax and other advisors, the suitability of a Note in light of his or her investment objectives and the information set out in the Note’s prospectus. There is no guarantee that any of the principal amount of a Note will be paid or guarantee that any return will be paid on a Note, at or prior to maturity. Purchasers of Notes could lose substantially all of their investments in the Notes. These Notes are not designed to be alternatives to fixed income or money market investments. The Notes are not appropriate investments for persons who don’t understand the risks associated with structured products or derivatives. There is currently no public market through which Notes may be sold. There is no guarantee that any secondary market which may develop will be liquid or sustainable. Holders are not entitled to redeem their Notes prior to maturity. Consequently, the Notes should not be viewed as a trading instrument. The Notes will not constitute deposits that are insured under the Canadian Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking financial institution. A holder will not be entitled to the Canada deposit insurance corporation protection. The deposit in Notes, along with the indicated terms, are a direct obligation of the issuing Canadian bank.