SEE OVERLEAF
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1.16 “ Leveraging” is when an investor borrows money to purchase Securities. When Leveraging, the purchased Securities are pledged, hypothecated
and/or assigned to the lender as collateral.
1.17 “Loan” means the loan between the Bank, as lender, and the Borrower, as more fully described in the Application.
1.18 “ Loan Documents” are any pre-printed documents which include this Agreement, the Movable Hypothec (Quebec only), the Pledge Letter or Notice
of Investments (if applicable), the Assignment, Hypothecation, Acknowledgement and Direction (for Segregated Funds), the Letter of Direction (if
paying out another financial institution), the Letter of Privilege (if applicable), and the Securities Control Agreement (if applicable).
1.19 “Margin” is the level of Securities that must be maintained by the Borrower relative to the outstanding Loan acquired to purchase the Securities.
1.20 “ Margin Call” is the demand by the lender that a Borrower deposit additional money or securities sufficient to bring the Loan Margin to the minimum
level as prescribed by the Agreement.
1.21 “ Net Asset Value (NAV)” means the total value of the assets of a fund, minus any liabilities of the fund. “Net Asset Value per Share (NAVPS)” is a
valuation of a mutual fund unit and/or segregated fund unit. The NAVPS is a measure of the total value of the assets of a fund, minus any liabilities
of the fund, divided by the number of units outstanding.
1.22 “ Net Proceeds of the Securities” is, at any time, the amount that the Securities would realize if redeemed, surrendered for cancellation or sold, less
any commission and all other related costs that would otherwise be payable.
1.23 “ Other Property” means any assets other than Securities and Contract(s) which is pledged and which is designated on the books and records of
the Bank as security for the Loan and all claims, present or future, by such Borrower against any person liable upon or for he payment of any of
the Security.
1.24 “ Pledged Account” means all those Securities, securities entitlements, financial assets and other items and property (or their value) standing to the
credit of an account or accounts with an Account Administrator.
1.25 “ Secured Obligations” means all of my present and future, direct or indirect indebtedness and liability to the Bank including, but not limited to, the
Indebtedness and all other debts, liabilities and obligations, present or future, and all interest, commissions, legal and other costs and expenses.
1.26 “ Securities” means all Pledged Accounts, monies, deposits, shares, units of a mutual fund or other issuer, other securities or instruments or
insurance contracts and all other property held within or to the credit of the Pledged Account administered by an Account Administrator including:
1.26.1 any and all Securities and other property as may hereafter be delivered to the Bank by me or on my behalf;
1.26.2 all other Securities issued or received in substitution, renewal, addition or replacement of any of the Securities described above, or issued
or received on the purchase, redemption, conversion, cancellation or transformation of any such Securities or issued or received by way
of dividend, distribution or otherwise to the holder of any such Securities;
1.26.3 any rights attached to the Securities, as well as the benefits and revenues thereof, including the capital thereof, income therefrom,
interest, dividends and distributions thereon, accretions thereto and any other proceeds thereof, including proceeds of redemption;
1.26.4 the proceeds of any sale, assignment or other disposition of the Securities, any claim resulting from such a sale, assignment or other
disposition, as well as any property acquired in replacement thereof; and
1.26.5 all titles, instruments, documents, records, receipts, invoices and accounts evidencing the Securities or relating thereto and the interest in
the Pledged Account.
1.27 “Security” means Securities, Contract(s), Other Property, Pledged Accounts and any other assets pledged for the Loan.
1.28 “ Segregated Funds” are segregated funds offered under an individual variable insurance contract or an individual annuity contract, in each case,
issued by a life insurance company.
2. LOAN TERMS
The Loan terms are as set out in sections 7, 8, and 9 of the Application which is an integral part of this Agreement. Pursuant to this Agreement and
subsequent to the approval of the Loan, the Loan proceeds will be fully advanced to the Pledged Account or, when the Account Administrator is B2B
Bank, will be advanced on the date the purchase orders for Securities are executed, or on the date on which the purchases have settled. Following this
advance, the interest as provided herein will accrue.
3. REVIEW
I acknowledge that the Bank will review the Loan as frequently as it shall deem necessary and I agree to provide any additional information that it may
require.
4. JOINT AND SEVERAL LIABILITY
If more than one person is bound by the Agreement, we shall be jointly and severally liable (in Quebec: solidarily liable) for the total Indebtedness and for
the fulfilment of each of the obligations contained herein and in the other Loan Documents.
5. FEES
I agree to pay the cost of registering a security interest or hypothec where applicable under applicable personal (movable) property security legislation
on the first Payment Date. I also agree to pay, under applicable personal (movable) property security legislation: a) the cost of renewing the security
interest or hypothec where applicable, and b) the cost of discharging the security interest or hypothec where applicable following repayment of the
Loan. I further agree to pay all other costs, fees and expenses including, without limitation, legal fees and disbursements, which the Bank may incur in
protecting its position and/or any policy or in collecting the Indebtedness. I acknowledge and agree that if any cheques or pre-authorized debits issued
by me are returned to the Bank unpaid, the Bank will charge a fee for each cheque or pre-authorized debit so returned (currently $50.00 or any amount
published from time to time). All such costs and fees will be paid by me forthwith upon notification. Until paid, they shall be added to and form part of the
Indebtedness and shall bear interest at the rates applicable from time to time pursuant to the Demand Note therein.
6. PERSONAL INFORMATION
The Bank collects personal information including certain credit, employment, and other financially-related information (“Personal Information”) from its
clients, and if necessary, from their surety (guarantor) and other sources, as described below. The Bank makes use of this personal information in the
context of activities it generally carries out, including but without limiting the generality of the foregoing: verifying the identity of its clients, opening an
account or a loan, understanding the overall financial situation of a client and adequately delivering products and services.
To this end,
6.1 I authorize the Bank, its affiliates and service providers acting on its behalf to:
i) obtain information regarding my solvency or financial situation, as may be required from time to time for the purposes provided herein including
the applicant and co-applicant’s identification and until full payment of any amount as may be owing to the Bank, from legally authorized
persons as well as from any Designated Advisor, personal information agent, any person referred to in credit reports obtained, any financial
institution, any mortgage insurer or any other person providing references, from my current or previous employer mentioned in the application,
and I authorize such persons to disclose the information requested;
ii) disclose the information it holds on myself to any person authorized by law, Designated Advisor, personal information agent, financial
institution, mortgage insurer or any organization duly designated by the Bank according to paragraph 6.3 below, or with my consent, to any
person who so requests it;
iii) use my social insurance number for income tax reporting, identification and data-grouping purposes regarding services offered by the Bank;
iv) make my personal information available to its employees, affiliates and services providers who are bound to protect the confidentiality of
information.
In granting this authorization, I acknowledge that I am giving the Bank permission to request and access my credit report from credit-reporting agencies.
6.2 You may at all times, without notifying me, assign my account to any person. The assignee may be required by applicable laws to retain my
personal information for a certain period of time.
6.3 With a view to benefiting from high-quality service and obtaining all information available regarding the financial products offered by the Bank, its
12. Terms and Conditions (continued)
817-07-233E (06/30/2017)