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IA Clarington Investments Inc. (iA Clarington)

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IA Clarington Investments Inc.
Use this application to open one of the following:
Individual plan (RESP 1145002)
Family plan (RESP 1145001)
MUTUAL FUND EDUCATION SAVINGS PLAN (ESP) APPLICATION
Questions? Please contact us at 1.800.530.0204
Please remember to:
1. Select your funds and fill in the
amount to be invested.
2. Include your SIN number in section 4.
3. Attach a void cheque or direct deposit
form for section 10, if completed.
4. Sign the investment application in
section 11.
Please make cheques payable to
“IA Clarington Investments Inc.”
Mail to:
IA Clarington Investments Inc.,
c/o IFDS
1-30 Adelaide St. E.,
Toronto, ON M5C 3G9
Fax this application to:
1.866.506.9884
White copy to IA Clarington Investments Inc. Blue copy to dealer. Carbon white copy to client. ESP Application Form | July 2018
1. APPLICATION INFORMATION
MANDATORY Language preference: ❑ English ❑ French
Account number:
❑Individual plan ❑ Family plan
2. FINANCIAL ADVISOR INFORMATION MANDATORY
Financial advisor’s full name Advisor code/number Telephone number Fax number
Dealer name Dealer code/number Advisor email address
3. SUBSCRIBER INFORMATION
❑ Mr. ❑ Mrs. ❑ Ms. ❑ Miss
Last name First name Initial
Address City Province
Postal code Residence phone Business phone Ext.
4. JOINT SUBSCRIBER INFORMATION
❑ Mr. ❑ Mrs. ❑ Ms. ❑ Miss Only a spouse or common-law partner can be a joint subscriber.
❑ Same address as subscriber
Last name First name Initial
Address City Province
Postal code Residence phone Business phone Ext.
Custodial parent/legal guardian
Where multiple custodial parents or legal guardians exist, please identify the custodial parent or legal guardian related to the beneficiary. Please use a separate form for additional
custodial parents or legal guardians. “Public Primary Caregiver”, of a Beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act of
Canada, means the department, agency or institution that maintains the Beneficiary or the public trustee or public curator of the province in which the Beneficiary resides.
❑ Same as subscriber ❑ Same as joint subscriber ❑ Public primary caregiver ❑ Other - enter information below
❑ Same address as subscriber
Last name First name Initial
Address City Province
Postal code Residence phone Business phone Ext.
5. BENEFICIARY INFORMATION
The beneficiary’s information must appear exactly as it does on the Social Insurance Number Card and the information
should also appear on the Grant Form ESDC SDE 0093. I designate the following individual as the person entitled to receive payments from the plan to further his/her post-secondary
education. For additional beneficiaries, please use a separate form and check here. ❑
A) INDIVIDUAL PLAN
Gender of beneficiary: ❑ Male ❑ Female Relationship to subscriber:
❑ Same address as subscriber
Last name First name Middle name
Address City Province
Postal code Residence phone Other phone Ext.
B) FAMILY PLAN
BENEFICIARY 1
Gender of beneficiary: ❑ Male ❑ Female Relationship to subscriber:
❑ Same address as subscriber
Last name First name Middle name
Address City Province
Postal code Residence phone Other phone Ext.
BENEFICIARY 2
Gender of beneficiary: ❑ Male ❑ Female Relationship to subscriber:
❑ Same address as subscriber
Last name First name Middle name
Address City Province
Postal code Residence phone Other phone Ext.
CONTRIBUTION ALLOCATION
❑ Equally, or, beneficiary 1 % and beneficiary 2 %
Mutual Fund Education Savings Plan (ESP) Application
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
Date of birth (DD/MM/YYYY)
Social insurance number
MANDATORY
White copy to IA Clarington Investments Inc. Blue copy to dealer. Carbon white copy to client. ESP Application Form | July 2018
6. GRANT INFORMATION
To ensure this plan receives grants that may be available for a beneficiary under the Canada Education Savings Act or a provincial program administered under this act, the subscriber
and joint subscriber, if any, must complete the appropriate Declaration and Consent Form prescribed by Employment and Social Development Canada and forward it to IA Clarington
with the application. For copies of these forms, please go to our website at www.iaclarington.com. If you do not wish to participate in any grants program, please check off the
box below:
❑ I do not wish this plan to participate in any grants program.
7. INVESTMENT INSTRUCTIONS
Contribution amount Grant allocation
❑ Transfer from another institution
(Attach a copy of the transfer form)
❑ One time PAC (Pre-authorized Contribution)
(Withdraw directly from a bank account)
VOID CHEQUE REQUIRED
Amount: $
❑Upon receipt of this application in good order.
❑Specify date
(DD/MM/YYYY)
One-time purchase: If no date is provided, IAC will process
the one time purchase on the next available trade date
after reception of the request in good order.
FundSERV
wire order number
Fund code Investment amount
Amount
❑ $ or ❑ %
Front End Sales
charge 0–5%
Default is 0% if left
blank.
Amount % Front End Sales
charge 0–5%
Default is 0% if left
blank.
Total: 100%
Total: 100%
Plan termination date (DD/MM/YYYY):
.
The plan must be terminated on or before December 31
st
of the 35
th
year following the year in which the plan was entered
into. No contributions may be made after the 31
st
year following the year in which the plan was entered into. This rule is applicable to both individual and family plan types.
Check here ❑ if you have attached a separate sheet with additional investment instruction and/or distribution instructions.
8. DIVIDEND/DISTRIBUTION OPTIONS
Please choose one option. If no option is chosen IA Clarington Investments Inc. will reinvest the dividends/distributions.
A) ❑ Reinvest dividends and distributions from all funds.
B) ❑ Redirect to fund number:
9. SYSTEMATIC PLANS OPTIONAL VOID CHEQUE REQUIRED
A. PAC – Pre-authorized cheque payment
i. Start date:
ii. Frequency
❑ Monthly*
❑ Every other month
❑ Quarterly
❑ Semi-annually
❑ Annually
❑ Twice monthly (Provide 2 dates)**
1st start date:
2nd start date:
❑ Weekly ❑ Every other week
Choose the day of the week:
❑ Mon. ❑ Thurs.
❑ Tues. ❑ Fri.
❑ Wed.
I/We the applicant(s) of the account have read and acknowledge the pre-authorized debit agreement at the back of
this application. * If monthly frequency is selected and no start date is provided we will default your run date to the
15th of the month. **If twice monthly frequency is selected and the 2nd start date is not provided, we will default
your 2nd run date to 15 days following the date provided.
B. SSP – Systematic switch plan: for automatic switches between funds in your account
i. Start date:
ii. Frequency
❑ Monthly*
❑ Every other month
❑ Quarterly
❑ Semi-annually
❑ Annually
❑ Twice monthly (Provide 2 dates)**
1st start date:
2nd start date:
❑ Weekly ❑ Every other week
Choose the day of the week:
❑ Mon. ❑ Thurs.
❑ Tues. ❑ Fri.
❑ Wed.
Note: No switches available between USD and CDN units or between different sales charge option, such as DSC securities to low load securities and vice versa. Automatic switches are not allowed
for free unit switches into front end sales charge option. *If monthly frequency is selected and no start date is provided we will default your run date to the 15th of the month. **If twice monthly
frequency is selected and the 2nd start date is not provided, we will default your 2nd run date to 15 days following the date provided.
(DD/MM/YYYY)
iii. PAC allocation
Fund code Amount
Total: $
❑ % ❑ $
Sales charge
front-end* (0-5%)
Must = 100% of amount *FE = 0% unless stated otherwise
iii. SSP instructions
From fund code To fund code SSP amount
Total: $
Dollar amounts only
(DD/MM/YYYY)
White copy to IA Clarington Investments Inc. Blue copy to dealer. Carbon white copy to client. ESP Application Form | July 2018
10. BANKING INFORMATION MANDATORY if section 7 (One time PAC) or 9A (EFT payment), is completed.
❑ Please attach void cheque or direct deposit form or
existing bank account information on iA Clarington account - Account #
IMPORTANT: If attached banking information does NOT contain the iA Clarington accountholder’s name, please complete below authorization.
11. AUTHORIZATION
The undersigned hereby applies to IA Clarington Investments Inc. to purchase or redeem units of the Fund(s) as indicated and register the units in the name and address shown.
I acknowledge receipt of the current Simplified Prospectus and financial reports of the Fund(s) purchased and understand that these transactions are made under the terms and conditions
therein. IA Clarington Investments Inc. may reject a purchase application within one business day of receipt.
I have requested that this document be drawn in the English language. J’ai exigé que ce document soit rédigé en anglais.
I hereby request that the Promoter applies to register my account as a Registered Education Savings Plan (“RESP”) under the Income Tax Act (Canada) and any applicable provincial
legislation in accordance with the terms of the Declaration of Trust attached to the current application.
I declare that the information given above with respect to the dates of birth and social insurance numbers is exact and undertake to furnish all additional information which may be
required with respect to the registration and administration of the RESP.
1. I have read and understood and agree to comply with the “Declaration of Trust” governing the Plan set forth on the reverse and forming a part of this application;
2. The assets of the Plan are not insured under the Canada Deposit Insurance Corporation Act;
3. The information contained in this Plan application is complete and true in all respects.
X
Subscriber Signature Date (DD/MM/YYYY)
X
Joint Subscriber Signature Date (DD/MM/YYYY)
Accepted by IA Clarington Investments Inc., as the Promoter on behalf of the Trustee, Industrial Alliance Trust Inc.
X
Dec 31
st
, 2017
IA Clarington Authorized Signature Date
12. PRIVACY AND TELEPHONE POLICIES
For all account types.
I have read and acknowledge IA Clarington Investments Inc.’s privacy policy explained under the heading “Your Personal Information” at the back of this application.
IA Clarington Investments Inc. reserves the right to accept or reject this ESP application and any purchase order provided that any decision to reject an order will be made within 1 day
of receipt of the order and any amounts received will be returned to you immediately.
❑ Joint (void cheque is issued under primary owner’s name only – no further authorization is required)
❑ Third Party Personal (bank account does not belong to the iA Clarington accountholder)
X
Signature of bank account owner (if applicable) Date (DD/MM/YYYY)
❑ Business (corporate resolution required)
X
Signature of Business Signing Officer(s) (if applicable) Date (DD/MM/YYYY)
Only preprinted banking information is acceptable.
click to sign
signature
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signature
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signature
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signature
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PRIVACY NOTICE
At IA Clarington Investments Inc. (“IA Clarington”) we take the issue of privacy seriously. We are committed to providing investors with excellent service while respecting the privacy of
personal information. Each IA Clarington employee is responsible for ensuring the confidentiality of all personal information to which they have access.
Personal Information
Personal information is information that identifies an individual. It includes information such as age, marital status, social insurance number, home address and telephone number.
How do we use personal information?
Obtaining personal information allows us to:
• Establish the identity of investors;
• Ensure our records are accurate;
• Establish and administer accounts;
• Execute transactions;
• Maintain account holdings and transaction records;
• Verify information previously given;
• Provide investors and their investment advisors account information and statements;
• Provide investors with financial statements, tax receipts, transaction confirmations, proxy mailing and other information that may be required to service accounts;
• Provide customer service; and
• Meet legal and regulatory requirements.
How do we obtain personal information?
In order to ensure that your investment in an IA Clarington investment product is administered efficiently, we will collect personal information from you or from your dealer. We may collect
the information in various ways, including electronic transfers and telephone calls, and may retain copies of documents, or recordings of telephone calls, that contain personal information.
To whom do we disclose personal information?
In order to provide the best possible client service, we may be required to disclose personal information to third parties in the normal course of business. These third parties include:
• Your investment advisor;
• Other financial institutions, securities dealers, and mutual fund companies; for example, when you move your investments from one firm to another;
• Affiliates of IA Clarington;
• Contracted third-party service providers;
• Canadian government, government agencies and regulators; and
• Any other entity as required by law.
IA Clarington may be required to provide personal information in response to a search warrant, court order or other legally valid request.
Obtaining Consent
If you have completed an investment application with us, you have provided us with personal information. Notice of IA Clarington’s use of personal information is disclosed on the back
of the IA Clarington investment application under the heading of “Your Personal Information”. By signing an application form you are consenting to the use of your personal information.
IA Clarington’s Privacy Notice explains how we collect, hold, use and disclose personal information. This Privacy Notice may also be sent to you. By continuing to do business with us,
you are consenting to the use of your personal information on an ongoing basis, as described under the heading “To whom do we disclose personal information?”
Some investors may have completed an investment application form through a dealer representative or other party that is unrelated to IA Clarington, thereby providing them with personal
information. Any personal information which may be disclosed to us through an unrelated party is also subject to IA Clarington’s Privacy Policy.
How can you withdraw your consent?
You may withdraw your consent to IA Clarington’s use of your information by contacting us. In some circumstances, legal requirements may prevent you from withholding consent. The
decision to withhold information may also limit the products or services we are able to provide.
How can you access your personal information?
Upon written request IA Clarington will provide you with access to the personal information we have collected for you. Please note that we may not be able to provide you with this
information in certain circumstances, for example: where information contains references to other persons; where information contains proprietary information confidential to IA Clarington,
or where information cannot be disclosed for legal reasons.
How can you ensure your information is accurate?
The accuracy of your personal information is essential to providing you with excellent service. If you wish to change or update your personal information, please contact us. Please inform
us of any errors regarding your personal information right away, so that we may correct our records.
Where is your personal information kept?
Your personal information may be kept in electronic or paper format in our offices, in secure off-site storage facilities, or in the offices of our service providers, such as International
Financial Data Services (Canada) Limited. Your personal information may also be held in the offices of U.S.-based third-party service providers that provide IA Clarington with data hosting
and imaging services, for example. U.S. laws regarding the protection of personal information may afford you lower protection than that of Canadian laws.
How do we protect your personal information?
Policies, procedures and safeguards have been put in place at IA Clarington to ensure your personal information is protected. Our employees and service providers have access to your
personal information to enable them to provide necessary services to you. Any personal information collected from you will only be used for the purposes identified at the time of collecting
the information and will be retained for as long as is necessary to fulfill the service, or as required by law.
Security measures including passwords, restricted access to our offices and records, and physical access security have been put in place to protect your information against unauthorized
access, modification, loss, theft or general misuse.
Questions, Concerns and Complaints
If you have any questions, concerns or complaints regarding matters of privacy please contact us. In many cases concerns can be resolved by discussing it with one of our Client Service
Representatives.
Phone: 1-800-530-0204 or 416-860-9880
Email: privacy@iaclarington.com
If your concern has not been resolved to your satisfaction, please contact our Privacy Officer.
Phone: 1-888-860-9888 or 416-860-9880
Email: privacy@iaclarington.com
Write to: Privacy Officer
IA Clarington Investments Inc.
522 University Avenue, Suite 700 , Toronto, ON M5G 1Y7
If after contacting our Privacy Officer your concern remains unresolved, you may contact the Privacy Commission of Canada:
The Privacy Commission of Canada
112 Kent Street, Ottawa, Ontario K1A 1H3
Phone: 613-995-8210 or 1-800-282-1376
Or in Quebec:
The Commission d’accès a l’information
575, rue St. Amable, Bureau 1.10, Québec, Québec G1R 2G4
Phone: 418-528-7741 or 1-888-528-7741
PRE-AUTHORIZED DEBIT (PAD) AGREEMENT
Each account owner is referred to as “I” in this PAD Agreement section and makes the following statements in respect of himself or herself.
I authorize IA Clarington Investments Inc. (the “Company”) and the financial institution designated (or any other financial institution I may authorize at any time) to begin deductions as
per my instructions for regular recurring payments and/or a one-time payment from time to time, for payment of all premiums, deposits, instalments and charges arising from the contract
hereunder mentioned. Regular payments will be debited from my specified account based on the date and/or frequency I have chosen, whereas the Company will obtain my
authorization for any one-time payment that can be debited from my account on any other date.
I agree that, for the purpose of this PAD Agreement, all PADs from my account will be treated either as Personal or Business* depending on the choice I’ve made.
I waive the right to receive pre-notification of an increase or a decrease in the amount to be debited or a change in the date and/or frequency of these payments as I may have personally
authorized.
I agree that the Company is not required to provide me with written notice of a change in a PAD amount that is made as a result of my request. If a PAD is dishonoured for any reason such
as, but not limited to, insufficient funds (“NSF”), a stop payment or a closed account, the Company is authorized to re-submit the payment. Any charges incurred by the Company as a result
of the dishonoured PAD will be added to the subsequent PAD.
I may cancel or modify this PAD Agreement at any time, subject to providing the Company with thirty (30) days notice in writing. To obtain a sample cancellation form or for
more information on my right to cancel the PAD agreement, I may contact my financial institution or visit www.cdnpay.ca.
Any cancellation of this PAD Agreement will not affect my contract(s) for financial services, so long as payment is provided by an alternative method.
The Company will not assign this PAD Agreement without providing me with written notice of the assignment, any time prior to the next PAD.
I have certain recourse rights if any PAD does not comply with this PAD Agreement. For example, I have the right to receive reimbursement for any PAD that is not authorized or is not consistent
with this PAD agreement. To obtain more information on my recourse rights, I should contact my financial institution or visit www.cdnpay.ca.
*Business PAD means a PAD for the payment of goods or services related to a business or commercial activity of the payor.
IA CLARINGTON INVESTMENTS INC. – INDIVIDUAL EDUCATION SAVINGS PLAN (ESP)– DECLARATION OF TRUST
The Subscriber’s application in respect of this Plan and the following terms and conditions constitute a contract between IA Clarington Investments Inc. (the “Promoter”), Industrial Alliance
Trust Inc. (the “Trustee”) and the Subscriber designated in the application, under which the Promoter agrees to pay or cause to be paid Educational Assistance Payments to or for the Beneficiary.
1. DEFINITIONS
In this Plan, unless otherwise indicated by the context:
a) “Accumulated Income Payment” means any amount paid pursuant to the Plan, other than:
i. payment of Educational Assistance Payments;
ii. Refunds of Payments;
iii. repayment of Grants and payment of amounts related to that repayment;
iv. payment to, or to a trust in favour of, Designated Educational Institutions in Canada referred to in subparagraph h) i. of the definition “Designated Educational Institution in Canada”;
v. payment to a trust that irrevocably holds property pursuant to a registered education savings plan for any of the purposes set out in paragraphs i) to iv) above to the extent that the amount
so paid exceeds the fair market value of any consideration given to the Plan for the payment of the amount;
b) “Beneficiary” means a person designated in the application by the Subscriber to whom or on whose behalf Educational Assistance Payments under the Plan are agreed to be paid if he/she
qualifies under the Plan. The Subscriber can designate himself/herself as the Beneficiary. A Beneficiary must be resident in Canada at the time a Contribution is made to the Plan in order for the
Beneficiary to be eligible to receive the government Grant;
c) “Canada Education Savings Act” is the act that provides financial assistance for post-secondary education savings and the regulations adopted under this act, as they are modified from time to time;
d) “Canada Education Savings Grant” means the Canada Education Savings Grant as defined in the Canada Education Savings Act, paid into the Plan by the Federal Government on behalf of a
Beneficiary;
e) “Canada Learning Bond” means the Canada Learning Bond as defined in the Canada Education Savings Act or in any other provincial legislation. Subject to any restrictions of applicable Tax
Laws, the Canada Learning Bond is paid into the Plan on behalf of a Beneficiary;
f) “Common-law partner” means any person who is recognized as such for the purposes of the Tax Laws;
g) “Contribution” means contributions paid by the Subscriber as defined in this Plan, excluding amount paid into the Plan under or because of:
a. The Canada Education Savings Act or designated provincial program, or
b. Any other program that has a similar purpose to a designated provincial program and that is funded, directly or indirectly, by a province, other than an amount paid into the Plan by a
public primary caregiver in its capacity as subscriber under the Plan;
h) “Designated Educational Institution in Canada” means an educational institution in Canada that is:
i. a university, college or other educational institution designated by the Lieutenant Governor in Council of a province as a specified educational institution under the Canada Student Loans Act,
by an appropriate authority under the Canada Student Financial Assistance Act, or by the Minister of Education and Science of the Province of Quebec for the purposes of An Act respecting
financial assistance for education expenses; or
ii. certified by the Minister of Human Resources and Skills Development of Canada to be an educational institution providing courses, other than courses designated for university credit, that
furnish a person with skills for, or improve a person’s skills in, an occupation;
i) “Designated Provincial Program” means:
i. a program administered pursuant to an agreement entered into under section 12 of the Canada Education Savings Act; or
ii. a program established under the laws of a province to encourage the financing of children’s post-secondary education through savings in registered education savings plans;
j) “Educational Assistance Payment” means any amount, other than a Refund of Payments, paid out of the Plan to or for a Beneficiary to assist him/her to further his/her education at a Post-
Secondary School Level;
k) “Grant” means any grant administered under the Canada Education Savings Act or under a Designated Provincial Program, such as the Canada Education Savings Grant and the Canada Learning
Bond.;
l) “Income Tax Act” means the Income Tax Act (Canada) and the regulations adopted thereunder, as amended from time to time;
m) “Plan” means the Individual Education Savings Plan of the Promoter established in accordance with the terms and conditions set out in the application and herein;
n) “Plan Property” means all property of any nature whatsoever of which the Plan is composed, including the Plan Contributions, the Grant amounts, if any, as well as any income, capital gains
and other earnings of any nature whatsoever, generated or realized in connection with the Plan’s administration;
o) “Post-Secondary Educational Institution” means:
a. Designated Educational Institution in Canada; or
b. an educational institution outside Canada that provides courses at a post-secondary school level and that is
(i) a university, college or other educational institution at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks, or
(ii) a university at which a beneficiary was enrolled on a full-time basis in a course of not less than three consecutive weeks;
p) “Post-Secondary School Level” includes a program of courses, at an institution described in subparagraph h) ii. of the definition “Designated Educational Institution in Canada”, of a technical
or vocational nature designed to furnish a person with skills for, or improve a person’s skills in, an occupation;
q) “Promoter” means IA Clarington Investments Inc.;
r) “Public Primary Caregiver”, of a Beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act of Canada, means the department, agency or institution
that maintains the Beneficiary or the public trustee or public curator of the province in which the Beneficiary resides;
s) “Qualifying Educational Program” means a program at a Post-Secondary School Level of not less than three (3) consecutive weeks duration that requires that each student taking the program
spend not less than ten (10) hours per week on courses or work in the program;
t) “Refund of Payments” means:
i. a refund of a Contribution that had been made at a previous time, if the Contribution was made otherwise than by way of a transfer from another registered education savings plan and had
been paid into the Plan by or on behalf of the Subscriber; or
ii. a refund of an amount that was paid at a previous time into the Plan by way of a transfer from another registered education savings plan, where the amount would have been a refund of
payments under the other plan if it had been paid at the previous time directly to the Subscriber under the other plan;
u) “RESP Lifetime Limit” means $50,000 or any other maximum amount of Contributions in all registered education savings plans in respect of a particular Beneficiary as set out in the Tax Laws;
v) “Specified Educational Program” means a program at a Post-Secondary School Level of not less than three (3) consecutive weeks duration that requires each student taking the program to
spend not less than twelve (12) hours per month on courses in the program;
w) “Spouse” means any person who is recognized as such for the purposes of the Tax Laws;
x) “Subscriber” means:
i. an individual or the Public Primary Caregiver indicated as the Subscriber on the application, provided that joint subscribers, if any, are Spouses or Common-law partners;
ii. any other individual as defined in the Income Tax Act;
For the purposes of this Plan, “Subscriber” includes any joint subscriber if one has been named in the application.
y) “Tax Laws” means any tax laws that are applicable within the meaning of the Income Tax Act, the Canada Education Savings Act, and any other applicable tax law in the Subscriber’s province
of residence;
z) “Trustee” means Industrial Alliance Trust Inc.
2. REGISTRATION
The Promoter will apply to register the Plan as a registered education savings plan under the Income Tax Act after the Subscriber has provided all information required by this act including the
Social Insurance Number of the Beneficiary. The Subscriber will be bound by the terms and conditions imposed on the Plan by all applicable legislation. If the Subscriber does not provide all the
necessary information to complete the registration before the end of the year in which the application is entered into, the Plan will not be registered as a registered education savings plan and
tax implication may occur.
3. EFFECTIVE DATE OF THE PLAN
The effective date of the Plan is the date that it was entered into, or at the earliest, January 1 of the year the contract was submitted to Employment and Social Development Canada (ESDC), if it
was submitted after the end of the year the contract was entered into. The effective date of the Plan serves as the starting point for computation of Plan anniversaries.
4. CURRENCY
The Contributions and the amounts due in accordance with the Plan provisions are payable in legal Canadian currency.
5. DATE OF BIRTH AND SOCIAL INSURANCE NUMBER
Evidence satisfactory to the Promoter must be furnished at the time the Plan is entered into. The statement of the Subscriber’s and Beneficiary’s birth date and Social Insurance Number in the
application is deemed to be a certification of its truth on which the Promoter may rely and the Subscriber’s undertaking to provide proof if requested by the Promoter.
6. OBJECT
The Plan Property, after the payment of trustee and administration charges that must be paid from the Plan, shall be irrevocably held by the Trustee for any of the following purposes:
i. the payment of Educational Assistance Payments;
ii. the payment of Accumulated Income Payments;
iii. the Refund of Payments;
iv. the repayment of Grants and the payment of amounts related to that repayment;
v. the payment to, or to a trust in favour of, Designated Educational Institution in Canada referred to in subparagraph h) i. of Section 1 “DEFINITIONS”;
vi. the payment to a trust that irrevocably holds property pursuant to a registered education savings plan for any of the purposes set out in paragraphs i. to v.
7. DESIGNATION OF BENEFICIARY
The Subscriber shall not designate more than one individual as Beneficiary. Any individual can be named as Beneficiary, including the Subscriber or the Subscriber’s Spouse or Common-law partner.
An individual may be designated as a Beneficiary under the Plan only if the individual’s Social Insurance Number is provided to the Promoter before the designation is made and either:
i. the individual is resident in Canada when the designation is made; or
ii. the designation is made in conjunction with a transfer of property into the Plan from another registered education savings plan under which the individual was a beneficiary immediately before
the transfer.
The Promoter shall, within ninety (90) days after an individual becomes a Beneficiary under the Plan, notify the individual (or, where the individual is under nineteen (19) years of age at that time
and either ordinarily resides with a parent or is maintained by a Public Primary Caregiver, that parent or Public Primary Caregiver), in writing, of the existence of the Plan and the name and address
of the Subscriber in respect of the Plan. An application signed by a Subscriber who is also the Beneficiary or by a Subscriber who is the father, the mother or the Public Primary Caregiver of a
Beneficiary who is under nineteen (19) years of age and ordinarily resides with that parent or is maintained by a Public Primary Caregiver shall be sufficient for such purpose.
8. CHANGE OF BENEFICIARY
The Subscriber may, at any time, change the Beneficiary designation made in the application. The Subscriber shall notify the Promoter of any such change by means of a written document in form
and substance acceptable to the Promoter and, where the new Beneficiary is under nineteen (19) years of age, the address of one of the parents, legal guardians or the Public Primary Caregiver.
The designation of the new Beneficiary shall comply with the provisions set out in Section 7 “DESIGNATION OF BENEFICIARY” and any applicable Tax Laws.
If the Promoter receives several such changes on the part of the Subscriber, the most recent change will prevail.
Any Contribution made in respect of the previous Beneficiary will be deemed to have been paid in respect of the new Beneficiary in his/her stead, subject to any restriction of applicable Tax Laws.
9. CONTRIBUTIONS INTO THE PLAN
The only Contributions that can be made into the Plan is the Contributions made by or on behalf of the Subscriber in respect of the Beneficiary or the Contributions made by way of transfer from
another registered education savings plan.
The Contributions may be made periodically or in lump-sum payments, subject to the rules of the Promoter and the Trustee and any applicable Tax Laws. The Plan does not allow the total of all
Contributions made into the Plan for a year, other than Contributions made by way of transfer from registered education savings plans, to exceed the maximum limits set by any applicable Tax
Laws. Also, the RESP Lifetime Limit must be respected by the Subscriber. The Subscriber is responsible for any penalties that may result from these excess Contributions.
The Plan does not allow for the receipt of property by way of direct transfer from another registered education savings plan after the other plan has made any Accumulated Income Payments.
No Contributions may be made into the Plan by or on behalf of a Subscriber after the 31st year following the year in which the Plan was entered into. In the event of any transfer of property held
irrevocably by a trust governed by another registered education savings plan in favor of the Plan, no payments may be made into the Plan by or on behalf of a Subscriber after the 31st year following
the year in which the first of the two plans came into force.
The Plan provides that a Contribution to the Plan in respect of an individual who is a Beneficiary under the Plan is permitted to be made only if:
i. the individual’s Social Insurance Number is provided to the Promoter before the Contribution is made and the individual is resident in Canada when the Contribution is made; or
ii. the Contribution is made by way of transfer from another registered education savings plan under which the individual was a beneficiary immediately before the transfer.
Transaction fees may be charged if a cheque or pre-authorized payment is not honored on its first presentation.
10. INVESTMENTS
The Plan Property will be invested and reinvested by the Promoter from time to time in the investments selected in accordance with the Subscriber’s directives. The directives shall be transmitted
in a form that is satisfactory to the Promoter. In making the investment selection, the Subscriber may select units of mutual funds managed by the Promoter or other investments acceptable to
it in its sole discretion. In selecting investments for the Plan, the Subscriber will not be limited to investment authorized by legislation governing the investment property held in trust. Neither
the Promoter nor the Trustee will provide any investment advice regarding the purchase, retention or sale of any investment by the Plan and will not be held responsible for
advice the Subscriber may have received from another party. Cash distributions received on investment held in the Plan will be invested in additional investments of the same type unless
the Subscriber instructs otherwise. In the event the Subscriber fails to give satisfactory investment instructions as to the desired allocation in the various Funds under the Plan, the Contributions
will be invested in the IA Clarington Money Market Fund until he/she will give specified instructions.
The Subscriber acknowledges that the Plan Property may be invested and reinvested by the Promoter in its investments or those of its affiliates.
Notwithstanding any provision contained in the Plan, the Promoter reserves the right to determine and modify the investments in which the Plan may be invested or reinvested, including, inter
alia, investments which, in the Promoter’s understanding, are not qualified under the provisions of the Tax Laws for trusts governed by registered education savings plans.
The Promoter may only acquire property that is a qualified investment under the provisions of the Tax Laws for trusts governed by registered education savings plans. When a property held by the
Plan ceases to be such a qualified investment, the Plan shall dispose of it within sixty (60) days.
The Plan may not begin carrying on a business.
Where the Trustee holds property in connection with the Plan, it may not borrow money for the purposes of the Plan, except where:
i. the money is borrowed for a term not exceeding ninety (90) days;
ii. the money is not borrowed as part of a series of loans or other transactions and repayments; and
iii. none of the property of the trust is used as security for the borrowed money.
11. OWNERSHIP AND VOTING RIGHTS
The investments of the Plan will be held in the name of the Trustee or any other name the Trustee may determine. The Trustee is entitled to exercise in its sole discretion the rights, powers and
privileges that could otherwise be exercised by the beneficial owner of the investments of the Plan.
12. GRANTS
Whenever the Plan is authorized to receive any Grant, the Promoter will apply for them on behalf of the Subscriber and will take the measures required to ensure that such Grant is paid into the
Plan after the Promoter receives:
a) the instructions to apply for the Grant;
b) satisfactory evidence that the Beneficiary is eligible for the Grant;
c) any information or document that the Promoter or a government authority may require in connection with the Grant application.
Neither the Trustee nor the Promoter is responsible of any loss that might be related to any delays in the receipt of Grant payments.
13. TRANSFERS
At all times before a payment is made under Section 18 “ACCUMULATED INCOME PAYMENTS” and following the Subscriber’s written request in such regard, all or part of the Plan Property
(net of the applicable charges) will be transferred to the carrier of another plan in accordance with the Subscriber’s request. However, an amount equal to the Grants received in the Plan may be
withheld as long as the Promoter has not obtained satisfactory proof in respect of the refundable amount of such Grants, as the case may be, from the concerned government authorities. The
Promoter and the Trustee will provide the other plan carrier with all the relevant information held by them. The Promoter will take the measures required to sell or transfer the Plan investments
in accordance with the written instructions received from the Subscriber. In the absence of satisfactory written instructions, the Promoter may take the measures required to sell or transfer any
Plan investment, chosen at its sole discretion, in order to effect the transfer, and shall not be held liable for any contingent loss arising from such transfer. The transfer of Plan Property will be
made subject to any limitation under the applicable Tax Laws, the Canada Education Savings Act or the Plan investment terms and conditions.
Where property irrevocably held by a trust governed by a registered education savings plan (transferor plan) is transferred to a trust governed by another registered education savings plan (transferee
plan), for the purpose of Contribution into the Plan, termination of the Plan and Accumulated Income Payments, the transferee plan is deemed to have been entered into on the day that is the earlier of:
i. the day on which the transferee plan was entered into;
ii. the day on which the transferor plan was entered into.
14. REFUNDS OF CONTRIBUTION AND REPAYMENT OF GRANT
Upon receipt of the Subscriber’s written request in such regard and subject to the applicable Tax Laws, the Subscriber is entitled, at all times, to receive a refund of the Contributions he/she has
made to the Plan or may request that the refund amount be paid to any person he/she indicates to the Promoter, to the extent that such amount does not exceed the Contributions previously paid
into the Plan, net of the applicable charges and refunds previously made under this section.
In order to make such a refund, the Promoter will take the measures required to sell or transfer the Plan investments in accordance with the Subscriber’s written instructions. In the absence of
satisfactory written instructions, the Promoter may take the measures required to sell or transfer any Plan investment, chosen at its sole discretion, in order to make the refund, and shall not be
held liable for any contingent loss arising from such refund. The refund will be made subject to any limitation under the applicable Tax Laws or the Plan investment terms and conditions. When
the refund is made, neither the Promoter nor the Trustee shall have other obligation or duty to the Subscriber in respect of the Plan Property sold to make the refund. The refund requested shall
be made net of the following applicable charges:
• taxes and income taxes (including interest and penalties) claimed or claimable under the Plan, if applicable;
• sales charges and other inherent charges;
• any amount that must be withheld by reason of the payment of income tax arising from the withdrawal of Plan funds, if applicable.
If Contributions that have given rise to a Canada Education Savings Grant are withdrawn by the Subscriber and no Beneficiary is entitled to the Educational Assistance Payment, the Trustee,
following Promoter’s instructions, shall repay to the federal government the amount in Canada Education Savings Grant as determined in the Canada Education Savings Act.
The Trustee, following Promoter’s instructions, may be required to repay the Grant to the government on:
i. withdrawal of assisted Contributions (20% of amount of withdrawal);
ii. termination of the Plan;
iii. revocation of the Plan;
iv. ineligible transfer of the Plan;
v. eligible replacement of a Beneficiary;
vi. repayment of an Accumulated Income Payment;
vii. payment to a Designated Educational Institution.
The Trustee, following Promoter’s instructions, may also be required to repay the Grants received in the Plan in accordance with other circumstances set out in the applicable Tax Laws. In addition,
if an individual who is the Beneficiary is also the beneficiary of one or more other education savings plans and receives an amount equal to the Grants received in the Plan that exceed the maximum
permitted by the applicable Tax Laws, the individual shall refund the amounts exceeding the authorized amount to the federal or provincial government, where applicable.
15. PAYMENTS FROM THE PLAN
Before each payment is made from the Plan, the Subscriber may be required to provide information and evidence satisfactory to the Promoter confirming that the payment is permitted under the
Plan, the Tax Laws and any other applicable legislation. The decision of the Promoter as to whether a payment is permitted will be final and binding on the Subscriber and the Beneficiary. In the
absence of satisfactory instructions from the Subscriber, the Promoter may sell or transfer investments of the Plan selected by it, in its sole discretion, for the purpose of making a payment from
the Plan and will not be liable for any resulting loss. Payments from the Plan will be made net of all proper charges including tax required to be withheld and expenses incurred by the Plan upon the
sale or transfer of investments. If the Plan does not have sufficient cash to pay these charges, the Promoter may impose any other reasonable requirements and conditions in respect of payments
from the Plan. A payment from the Plan will be deemed to have been made when a cheque payable to the recipient is mailed in a postage pre-paid envelope addressed to the recipient at the last
known address for the recipient or an amount is electronically transferred to the credit of a bank account for the recipient.
16. EDUCATIONAL ASSISTANCE PAYMENTS
Upon receipt of a written notice from the Subscriber in the form prescribed by the Promoter and if the Promoter has determined that the conditions precedent to such payment under the applicable
laws have been satisfied, the Promoter shall proceed with the sale of the necessary Plan investments in accordance with the Subscriber’s written instructions to make Educational Assistance
Payments to or on behalf of the Beneficiary. Unless otherwise indicated in the Subscriber’s application, the payments will first be made out of the net accumulated income (including the capital
appreciation) in the Plan and, to the extent permitted by the applicable Tax Laws or required by the Canada Education Savings Act, of any Grant paid into the Plan. In accordance with the applicable
Tax Laws, a portion of each Educational Assistance Payment may be attributable to a Grant established in accordance with the terms of the Tax Laws. The Promoter shall adjust the Beneficiary’s
register in respect of the administration of the Grant as required.
17. LIMITATION ON EDUCATIONAL ASSISTANCE PAYMENTS
In accordance with the applicable legislation, the Plan does not allow for the payment of an Educational Assistance Payment to a Beneficiary at any time unless:
i. either
a) the individual is, at that time, enrolled as a student in a Qualifying Educational Program at a Post-Secondary Educational Institution; or
b) the individual has, before that time, attained the age of sixteen (16) years and is, at that time, enrolled as a student in a Specified Educational Program at a Post-Secondary Educational
Institution; and
ii. either
a) the individual satisfies, at that time, the condition set out in subparagraph i.a); and
I. he/she has satisfied that condition throughout at least thirteen (13) consecutive weeks in the 12-month period that ends at that time; or
II. the total of the payments and all other Educational Assistance Payments made under the Plan to or for the individual in the 12-month period that ends at that time does not exceed $5,000
or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual; or
b) the individual satisfies, at that time, the condition set out in clause i.b) and the total of the payment and all other Educational Assistance Payments made under the Plan to or for the individual
in the 13-week period that ends at that time does not exceed $2,500 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in
writing with respect to the individual.
Notwithstanding the preceding, the Plan may allow for the payment of an Educational Assistance Payment to or for an individual at any time in the 6-month period immediately following the
particular time at which the individual ceases to be enrolled as a student in a Qualifying Educational Program or a Specified Educational Program, as the case may be, if the payment would have
complied with the requirements of paragraphs i. and ii. above had the payment been made immediately before the particular time.
An Educational Assistance Payment that is made at any time in accordance with the preceding paragraph but not in accordance with paragraphs i. and ii. above is deemed, for the purposes of
applying that paragraph at and after that time, to have been made immediately before the particular time referred to in the previous paragraph.
18. ACCUMULATED INCOME PAYMENTS
Upon written notice in the manner prescribed by the Promoter, an Accumulated Income Payment may be made at the particular time only if:
i. the payment is made to, or on behalf of, a Subscriber who is resident in Canada when the payment is made;
ii. the payment is not made jointly to, or on behalf of, more than one Subscriber; and
iii. any of:
a) the payment is made after the 9th year that follows the year in which the Plan was entered into and each individual (other than a deceased individual) who is or was a Beneficiary has attained
twenty-one (21) years of age before the payment is made and is not, when the payment is made, eligible under the Plan to receive an Educational Assistance Payment;
b) the payment is made in the 35th year following the year in which the Plan was entered into;
c) each individual who was a Beneficiary under the Plan is deceased at the time the payment is made.
The conditions set out in paragraph iii. will not apply where the Beneficiary suffers from a severe and prolonged mental impairment that prevents, or can reasonably be expected to prevent, the
Beneficiary from enrolling in a Qualifying Educational Program at a Post-Secondary Educational Institution and if the Minister of National Revenue has waived the application thereof.
19. SUBSCRIBER’S RESPONSIBILITIES
The Subscriber shall be responsible for:
i. ensuring the accuracy of information furnished in respect of him/her, the Beneficiary, the Beneficiary’s parents or any other person related to the Plan, and for notifying the Promoter of any
change in the information furnished;
ii. furnishing all the information required in the application and necessary for the administration of Canada Education Savings Grant pursuant to the applicable Tax Laws;
iii. solely ensuring compliance with the RESP Lifetime Limit that the Subscriber is authorized to pay into the Plan under the applicable Tax Laws. Being understood that a person may be designated
as a Beneficiary of a registered education savings plan by more than one Subscriber, any overpayments made on behalf of a Beneficiary shall be established in accordance with the total amounts
paid by the Subscriber(s). Should Contributions for a given Beneficiary exceed the RESP Lifetime Limit, the Subscriber will be responsible for paying any income tax on the overpayments and for
requesting a refund of the Contributions;
iv. selecting investments for the Plan and assessing the merits of those investments or obtaining the advice of a representative to do these things;
v. ensuring that the investments held in the Plan are at all times qualified investments for the Plan under the Income Tax Act and immediately notifying the Promoter if an investment held in the
Plan is or becomes a non-qualified investment.
The Subscriber acknowledges and accepts sole responsibility for these matters and undertakes to act in the best interest of the Plan. The Subscriber confirms that neither the Promoter
nor the Trustee is responsible for any of these matters or for any loss in the value of the Plan. The Subscriber acknowledges that neither the Promoter nor the Trustee is responsible for any
investment or tax advice that he/she may obtain from his/her representative or any other source. The Subscriber acknowledges that any financial advisor or representative appointed by him/
her in connection with the Plan and any person from whom he/she obtains investment, tax or other advice is his/her representative and not the agent of the Promoter, the Trustee or any of
their affiliates.
20. PROMOTER’S RESPONSIBILITY
The Promoter shall have ultimate responsibility for the Plan, including the responsibility for obtaining approval of the Plan specimen from the tax authorities and shall:
i. forward an application for Plan registration for the purposes of the Tax Laws;
ii. collect the Contributions paid into the Plan;
iii. make Grant applications on behalf of the Plan;
iv. invest and reinvest the Plan Property as directed by the Subscriber;
v. issue statements to the Subscriber as set out herein;
vi. furnish any information or notice required by the applicable Tax Laws to the Subscriber and the Beneficiary;
vii. receive and carry out instructions received from the Subscriber;
viii. make payments out of the Plan in accordance with the terms hereof;
ix. deal, should the case arise, with the relevant tax administrations concerning the Plan or following amendments to the Plan terms;
x. ensure compliance with all relevant provisions contained in the applicable Tax Laws;
xi. perform, from time to time, any other duty necessary to administer the Plan that is deemed appropriate by the Promoter and the Trustee.
Without waiving its responsibilities, the Promoter may delegate duties or retain the services of the Trustee or other agents in respect of the administrative services concerning the Plan.
21. SUBSCRIBER’S ACCOUNT
The Promoter shall maintain an account for the Subscriber, in which the following information shall be recorded:
i. the amount of Contributions paid into the Plan;
ii. the amounts of Grant paid into the Plan;
iii. the number and cost of investments acquired;
iv. the amount of income, dividends, capital gains and other earnings in respect of the Plan Property;
v. the net value of the Plan Property;
vi. the applicable charges pursuant hereto;
vii. the payments made as a refund of Contributions to the Subscriber or as an Accumulated Income Payment and any Grant repayment;
viii. the payment to a Beneficiary as an Educational Assistance Payment; and
ix. any transaction effected hereunder through the maintenance of a register specifying the names and addresses of the recipients.
The Promoter undertakes to forward an annual statement to the Subscriber showing the balance of the Subscriber’s account and the information herein above in accordance with the data existing
on the statement date.
22. PROOF
Before making a payment out of the Plan, the Promoter or the Trustee may ask the Subscriber to furnish such documents as it may deem necessary to determine whether such payment meets the
Plan requirements. The decision of the Trustee or the Promoter on its behalf regarding the compliance of any payment in respect of such requirements and any applicable legislative provision will
be final and binding on the Beneficiary and the Subscriber.
23. FEES AND CHARGES
The Promoter and the Trustee may apply reasonable fees and administration charges established from time to time in respect of the Plan to the refund of the reasonable disbursements and
expenses incurred in the performance of their respective obligations pursuant hereto. Unless the Subscriber pays the fees and charges directly, the Promoter shall be entitled to deduct the unpaid
charges, disbursements and expenses from the Plan Property other than amounts paid into the Plan as Grant amounts. For such purposes, the Subscriber authorizes the Trustee and the Promoter
to realize a sufficient portion of the Plan Property, which they may choose at their sole discretion. Neither the Promoter nor the Trustee shall be held liable for any contingent loss whatsoever
following such transaction.
24. PLAN AMENDMENT
From time to time, the Promoter may amend the Plan provided that the amendment in question does not modify the nature of the Plan as a registered education savings plan for tax purposes and
subject to obtaining the approval of the relevant authorities pursuant to the applicable Tax Laws, as the case may be. Any amendment made to the Plan shall take effect thirty (30) days after the
sending of a prior written notice to such effect addressed to the Subscriber, by the Promoter.
25. TERMINATION OF THE PLAN
The Plan must be terminated on or before December 31st of the 35th year following the year in which the Plan was entered into (hereafter referred to as the “Termination Date”). If the Subscriber
wants to terminate the Plan before the Termination Date, the date shall be determined by the Subscriber in the application. The Subscriber may change the Termination Date by means of a written
notice to the Promoter in a form satisfactory thereto.
In the event of the transfer of property irrevocably held by a trust governed by another registered education savings plan in favor of the Plan, the Plan shall terminate on or before the last day of
the 35th year following the year during which the first of the two plans came into force.
If, under the Plan, an Accumulated Income Payment is allowed and is made, the Plan must be terminated before March of the year following the year in which the first Accumulated Income Payment
is made out of the Plan.
The Promoter shall notify the Subscriber in writing of the termination before the Plan Termination Date.
In the event that the Plan is terminated, the Plan Property shall be used for any of the purposes described in Section 6 “OBJECT”.
The Promoter shall take the measures required to sell or transfer Plan investments in accordance with the written instructions received from the Subscriber. All the applicable charges and any
Grant that are required to be repaid by the Plan will be deducted from the payments made hereunder. In the absence of instructions and under any applicable Tax Laws, all Plan Property shall be
returned to the Subscriber upon termination of the Plan.
26. CHANGE DURING THE SUBSCRIBER’S LIFETIME
Only the Spouse or Common-law partner of the initial Subscriber may be considered to be the new Plan Subscriber if such spouse or common-law partner acquires the rights of the initial Subscriber
following a court order or a written agreement to partition property between two individuals following the breakdown of their marriage or their common-law relationship. However, if the initial
Subscriber is a Public Primary Caregiver, any other individual or Public Primary Caregiver may be considered as the new Plan Subscriber if he/she acquires the rights of the initial Subscriber
following a written agreement.
27. SUBSCRIBER’S DEATH
If the Subscriber dies before the Plan terminates, any other person, including the estate of the deceased Subscriber, who acquires the individual’s rights as a subscriber under the Plan or who
makes Contributions into the Plan in respect of a Beneficiary, becomes the Plan Subscriber.
28. LIMITS OF LIABILITY
Neither the Promoter nor the Trustee, its officers, employees or agents shall, in the performance of their duties, be held liable for the following:
i. income taxes, interest or penalties that may be claimed under the applicable Tax Laws in respect of the Plan;
ii. charges levied or imposed by the government authorities arising from payments made out of the Plan or the purchase, sale or maintenance of investments in the Plan; and
iii. costs inherent to the performance of their respective duties in accordance with the provisions of this agreement and the applicable Tax Laws.
To pay such income taxes, interest, penalties or charges, or to be refunded the charges in respect of such payment, the Trustee may draw on the Plan Property either in whole or in part, and at
its discretion. The Promoter may act in the same manner and shall authorize the Trustee to reimburse it accordingly. The Subscriber, its estate, testamentary executors and legal representatives,
and the Beneficiary shall, at all times, indemnify the Trustee and the Promoter for all income taxes, interest, penalties, or charges claimed under the Plan, expenses incurred in the performance of
their respective duties hereunder or any loss affecting the Plan, with the exception of losses for which the Trustee or the Promoter is held liable pursuant to this section.
Any investment made with the assets of the Plan will be for the Subscriber’s benefit and his/her risk. Neither the Promoter nor the Trustee is authorized to select investments for the Plan and will
not assess the merits of any investment selected by the Subscriber or his/her representatives.
Moreover, the Subscriber, its estate, testamentary executors and legal representatives, and the Beneficiary under the Plan will at all times indemnify and save harmless the Promoter, the
Trustee and any of their agents from all taxes, assessments, expenses, liability, claims and demands arising out of the purchase, sale or retention of assets of the Plan or anything done in
connection with the Plan, other than as the result of their dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard. Neither the Promoter nor the Trustee will be liable
for any loss or penalty suffered as a result of any act done by it in reasonable reliance of the Subscriber’s authority or the authority of the properly authorized agent or legal representatives
of the Subscriber.
29. ASSIGNMENT BY THE PROMOTER
The Promoter may assign its rights and obligations hereunder to any corporation established in Canada, provided that such corporation signs an agreement to assume the rights and obligations
under the terms of the Plan, and provided that an assignment of this Plan shall not be valid without the prior written consent of the Trustee, which consent shall not be refused abusively.
30. DELEGATION OF DUTIES
Without detracting in any way from their responsibilities, the Promoter and the Trustee may appoint agents and may delegate to its agents the performance of clerical, administrative and other
duties under this declaration. Each of the Promoter and the Trustee may employ or engage accountants, brokers, lawyers or others and may rely on their advice and services. Neither the Promoter
nor the Trustee will be liable for the acts or omissions of any of its advisors or agents. Each of the Promoter and the Trustee may pay to any advisor or agent all or part of the fees received by it
under the terms of this declaration.
31. SUCCESSOR TRUSTEE
The Trustee may resign and be discharged from all duties and liabilities under this declaration by giving the Subscriber thirty (30) day’s written notice. The Promoter is nominated to appoint a
successor trustee. If the Promoter fails to appoint a successor trustee within sixty (60) days following its receipt of a notice of resignation, the Trustee may itself appoint its own successor.
The new trustee shall have the same powers, rights and obligations as the former Trustee, provided that the former Trustee or its successor, as the case may be, signs and delivers to the new
trustee all instruments translatory of property, transfer acts or other assurances necessary or desirable to give effect to its appointment.
Any successor trustee shall be approved by the Canada Revenue Agency and be a corporation resident in Canada authorized under the laws of Canada or the province of residence of the Subscriber
to exercise the duties and responsibilities of trustee in respect of the Plan. The successor trustee shall give notice of its appointment to the Subscriber immediately upon becoming the successor
trustee under the Plan.
Any corporation merging, consolidating or amalgamating with the Trustee or any corporation resulting from such merge, consolidation or amalgamation shall be authorized to act as trustee for
this Plan without any requirement to sign another document, provided such corporation is authorized by law to be the trustee of the Plan. Thereafter, the term “Trustee” shall also designate such
corporation in connection with this Plan.
Upon acceptance, the successor trustee will be the trustee of the Plan for all purposes as if it had been the original trustee of the Plan. The Plan will continue to be in force and effect with the
new trustee and the Trustee will be relieved of all duties and liabilities under this Plan.
32. APPLICABLE LAWS
This declaration will be governed, construed and enforced in accordance with the laws of Ontario and Canada and in particular, with the Income Tax Act.
Specimen Plan RESP 1145002 - Education Savings Plan Individual, Revised: November 12, 2015
IA CLARINGTON INVESTMENTS INC. – FAMILY EDUCATION SAVINGS PLAN (ESP) – DECLARATION OF TRUST
The Subscriber’s application in respect of this Plan and the following terms and conditions constitute a contract between IA Clarington Investments Inc. (the “Promoter”), Industrial Alliance Trust Inc.
(the “Trustee”) and the Subscriber designated in the application, under which the Promoter agrees to pay or cause to be paid Educational Assistance Payments to or for one or more Beneficiaries.
1. DEFINITIONS
In this Plan, unless otherwise indicated by the context:
a) “Accumulated Income Payment” means any amount paid pursuant to the Plan, other than:
i. payment of Educational Assistance Payments;
ii. Refunds of Payments;
iii. repayment of Grants and payment of amounts related to that repayment;
iv. payment to, or to a trust in favour of, Designated Educational Institutions in Canada referred to in subparagraph h) i. of the definition “Designated Educational Institution in Canada”;
v. payment to a trust that irrevocably holds property pursuant to a registered education savings plan for any of the purposes set out in paragraphs i) to iv) above
to the extent that the amount so paid exceeds the fair market value of any consideration given to the Plan for the payment of the amount;
b) “Beneficiary” or “Beneficiaries” means any eligible person(s) related to the Subscriber by blood relationship or adoption and designated in the application by the Subscriber to whom or on whose
behalf Educational Assistance Payments under the Plan are agreed to be paid if he/she qualifies under the Plan. The Subscriber cannot designate himself/herself nor his/her Spouse or Common-
law partner as a Beneficiary. A Beneficiary must be resident in Canada at the time a Contribution is made to the Plan in order for the Beneficiary to be eligible to receive the government Grant;
c) “Canada Education Savings Act” is the act that provides financial assistance for post-secondary education savings and the regulations adopted under this act, as they are modified from time to time;
d) “Canada Education Savings Grant” means the Canada Education Savings Grant as defined in the Canada Education Savings Act, paid into the Plan by the Federal Government on behalf of a
Beneficiary;
e) “Canada Learning Bond” means the Canada Learning Bond as defined in the Canada Education Savings Act or in any other provincial legislation. Subject to any restrictions of applicable Tax
Laws, the Canada Learning Bond is paid into the Plan on behalf of a Beneficiary;
f) “Common-law partner” means any person who is recognized as such for the purposes of the Tax Laws;
g) “Contribution” means contributions paid by the Subscriber as defined in this Plan, excluding amount paid into the Plan under or because of:
a. The Canada Education Savings Act or designated provincial program, or
b. Any other program that has a similar purpose to a designated provincial program and that is funded, directly or indirectly, by a province(other than an amount paid into the Plan by a public
primary caregiver in its capacity as subscriber under the Plan);
h) “Designated Educational Institution in Canada” means an educational institution in Canada that is:
i. a university, college or other educational institution designated by the Lieutenant Governor in Council of a province as a specified educational institution under the Canada Student Loans Act,
by an appropriate authority under the Canada Student Financial Assistance Act, or by the Minister of Education and Science of the Province of Quebec for the purposes of An Act respecting
financial assistance for education expenses; or
ii. certified by the Minister of Human Resources and Skills Development of Canada to be an educational institution providing courses, other than courses designated for university credit, that
furnish a person with skills for, or improve a person’s skills in, an occupation;
i) “Designated Provincial Program” means:
i. a program administered pursuant to an agreement entered into under section 12 of the Canada Education Savings Act; or
ii. a program established under the laws of a province to encourage the financing of children’s post-secondary education through savings in registered education savings plans.
j) “Educational Assistance Payment” means any amount, other than a Refund of Payments, paid out of the Plan to or for a Beneficiary to assist him/her to further his/her education at a Post-
Secondary School Level;
k) “Grant” means any grant administered under the Canada Education Savings Act or under a Designated Provincial Program, such as the Canada Education Savings Grant and the Canada Learning
Bond.;
l) “Income Tax Act” means the Income Tax Act (Canada) and the regulations adopted thereunder, as amended from time to time;
m) “Plan” means the Family Education Savings Plan of the Promoter established in accordance with the terms and conditions set out in the application and herein;
n) “Plan Property” means all property of any nature whatsoever of which the Plan is composed, including the Plan Contributions, the Grant amounts, if any, as well as any income, capital gains
and other earnings of any nature whatsoever, generated or realized in connection with the Plan’s administration;
o) “Post-Secondary Educational Institution” means:
a. Designated Educational Institution in Canada; or
b. an educational institution outside Canada that provides courses at a post-secondary school level and that is
(i) a university, college or other educational institution at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks, or
(ii) a university at which a beneficiary was enrolled on a full-time basis in a course of not less than three consecutive weeks;
p) “Post-Secondary School Level” includes a program of courses, at an institution described in subparagraph h) ii. of the definition “Designated Educational Institution in Canada”, of a technical
or vocational nature designed to furnish a person with skills for, or improve a person’s skills in, an occupation;
q) “Promoter” means IA Clarington Investments Inc.;
r) “Public Primary Caregiver”, of a Beneficiary in respect of whom a special allowance is payable under the Children’s Special Allowances Act of Canada, means the department, agency or institution
that maintains a Beneficiary or the public trustee or public curator of the province in which a Beneficiary resides;
s) “Qualifying Educational Program” means a program at a Post-Secondary School Level of not less than three (3) consecutive weeks duration that requires that each student taking the program
spend not less than ten (10) hours per week on courses or work in the program;
t) “Refund of Payments” means:
i. a refund of a Contribution that had been made at a previous time, if the Contribution was made otherwise than by way of a transfer from another registered education savings plan and had
been paid into the Plan by or on behalf of the Subscriber; or
ii. a refund of an amount that was paid at a previous time into the Plan by way of a transfer from another registered education savings plan, where the amount would have been a refund of
payments under the other plan if it had been paid at the previous time directly to the Subscriber under the other plan;
u) “RESP Lifetime Limit” means $50,000 or any other maximum amount of Contributions in all registered education savings plans in respect of each particular Beneficiary as set out in the Tax Laws;
v) “Specified Educational Program” means a program at a Post-Secondary School Level of not less than three (3) consecutive weeks duration that requires each student taking the program to
spend not less than twelve (12) hours per month on courses in the program;
w) “Spouse” means any person who is recognized as such for the purposes of the Tax Laws;
x) “Subscriber” means:
i. an individual or the Public Primary Caregiver indicated as the Subscriber on the application, provided that joint subscribers, if any, are Spouses or Common-law partners;
ii. any other individual as defined in the Income Tax Act;
For the purposes of this Plan, “Subscriber” includes any joint subscriber if one has been named in the application.
y) “Tax Laws” means any tax laws that are applicable within the meaning of the Income Tax Act, the Canada Education Savings Act, and any other applicable tax law in the Subscriber’s province
of residence;
z) “Trustee” means Industrial Alliance Trust Inc.
2. REGISTRATION
The Promoter will apply to register the Plan as a registered education savings plan under the Income Tax Act after the Subscriber has provided all information required by this act including the
Social Insurance Number of each Beneficiary. The Subscriber will be bound by the terms and conditions imposed on the Plan by all applicable legislation. If the Subscriber does not provide all the
necessary information to complete the registration before the end of the year in which the application is entered into, the Plan will not be registered as a registered education savings plan and
tax implication may occur.
3. EFFECTIVE DATE OF THE PLAN
The effective date of the Plan is the date that it was entered into, or at the earliest, January 1 of the year the contract was submitted to Employment and Social Development Canada (ESDC), if it
was submitted after the end of the year the contract was entered into. The effective date of the Plan serves as the starting point for computation of Plan anniversaries.
4. CURRENCY
The Contributions and the amounts due in accordance with the Plan provisions are payable in legal Canadian currency.
5. DATE OF BIRTH AND SOCIAL INSURANCE NUMBER
Evidence satisfactory to the Promoter must be furnished at the time the Plan is entered into. The statement of the Subscriber’s and any Beneficiary’s birth date and Social Insurance Number in the
application is deemed to be a certification of its truth on which the Promoter may rely and the Subscriber’s undertaking to provide proof if requested by the Promoter.
6. OBJECT
The Plan Property, after the payment of trustee and administration charges that must be paid from the Plan, shall be irrevocably held by the Trustee for any of the following purposes:
i. the payment of Educational Assistance Payments;
ii. the payment of Accumulated Income Payments;
iii. the Refund of Payments;
iv. the repayment of Grants and the payment of amounts related to that repayment;
v. the payment to, or to a trust in favour of, Designated Educational Institution in Canada referred to in subparagraph h) i. of Section 1 “DEFINITIONS”;
vi. the payment to a trust that irrevocably holds property pursuant to a registered education savings plan for any of the purposes set out in paragraphs i. to v.
7. DESIGNATION OF BENEFICIARY
The Subscriber must designate one or more individuals as Beneficiary. There must be one Beneficiary in the Plan at all times. The Subscriber cannot name himself/herself or his/her Spouse or
Common-law partner as a Beneficiary.
An individual may be designated as a Beneficiary under the Plan at any particular time only if:
i. the individual had not attained twenty-one (21) years of age before that particular time, or that individual was, immediately before the particular time, a beneficiary under another registered
education savings plan that allows more than one beneficiary at any one time;
ii. the individual is connected to each living Subscriber, or to have been connected to a deceased original Subscriber under the Plan, by blood relationship or adoption; and
iii. the individual’s Social Insurance Number is provided to the Promoter before the designation is made and either:
a) the individual is resident in Canada when the designation is made; or
b) the designation is made in conjunction with a transfer of property into the Plan from another registered education savings plan under which the individual was a beneficiary immediately
before the transfer.
The Promoter shall, within ninety (90) days after an individual becomes a Beneficiary under the Plan, notify the individual (or, where the individual is under nineteen (19) years of age at that time
and either ordinarily resides with a parent or is maintained by a Public Primary Caregiver, that parent or Public Primary Caregiver), in writing, of the existence of the Plan and the name and address
of the Subscriber in respect of the Plan. An application signed by a Subscriber who is the father, the mother or the Public Primary Caregiver of a Beneficiary who is under nineteen (19) years of age
and ordinarily resides with that parent or is maintained by a Public Primary Caregiver shall be sufficient for such purpose.
The Subscriber can add Beneficiary at any time. The additional Beneficiary must:
i. be related to the original Subscriber of the Plan, either by blood or by adoption; and
ii. be under twenty-one (21) years of age at the time he/she is added or must have been beneficiary under another family registered education savings plan immediately before being added.
8. CHANGE OF BENEFICIARY
The Subscriber may, at any time, make, change or revoke a Beneficiary designation made in the application. The Subscriber shall notify the Promoter of any such change by means of a written
document in form and substance acceptable to the Promoter and, where a new Beneficiary is under nineteen (19) years of age, the address of one of the parents, legal guardians or the Public
Primary Caregiver. The designation of a new Beneficiary shall comply with the provisions set out in Section 7 “DESIGNATION OF BENEFICIARY” and any applicable Tax Laws.
If the Promoter receives several such changes on the part of the Subscriber, the most recent change will prevail. Any Contribution made in respect of a previous Beneficiary will be deemed to have
been paid in respect of the new Beneficiary in his/her stead, subject to any restriction of applicable Tax Laws.
9. CONTRIBUTIONS INTO THE PLAN
The only Contributions that can be made into the Plan is the Contributions made by or on behalf of the Subscriber in respect of each Beneficiary or the Contributions made by way of transfer from
another registered education savings plan.
Contributions to the Plan will be considered to have been made in proportion to each Beneficiary unless otherwise stipulated by the Subscriber. Any Contribution to the Plan made in respect of a
former beneficiary will be considered to have been made in proportion to each current Beneficiary unless otherwise stipulated by the Subscriber. Any amount may be transferred to the Plan from
another registered education savings plan that allows more than one Beneficiary at a time provided that other plan has never made any Accumulated Income Payment. Contributions transferred
to the Plan shall be considered to have been made on the behalf of the Subscriber in proportion to each Beneficiary unless otherwise stipulated by the Subscriber. If the other registered education
savings plan was established before the Plan, the Plan will be deemed to be established on the day the other plan was established. Grants received by the Plan directly or by way of transfer from
another registered education savings plan shall not be considered to be a Contribution to the Plan.
The Contributions may be made periodically or in lump-sum payments, subject to the rules of the Promoter and the Trustee and any applicable Tax Laws. The Plan does not allow the total of all
Contributions made into the Plan for a year, other than Contributions made by way of transfer from registered education savings plans, to exceed the maximum limits set by any applicable Tax
Laws for each Beneficiary. Also, the RESP Lifetime Limit for each Beneficiary must be respected by the Subscriber. The Subscriber is responsible for any penalties that may result from these
excess Contributions.
The Plan does not allow for the receipt of property by way of direct transfer from another registered education savings plan after the other plan has made any Accumulated Income Payments.
No Contributions may be made into the Plan by or on behalf of a Subscriber after the 31st year following the year in which the Plan was entered into. In the event of any transfer of property held
irrevocably by a trust governed by another registered education savings plan in favor of the Plan, no payments may be made into the Plan by or on behalf of a Subscriber after the 31st year following
the year in which the first of the two plans came into force.
The Plan provides that a Contribution to the Plan in respect of an individual who is a Beneficiary under the Plan is permitted to be made only if:
i. The beneficiary has not attained 31 years of age before the contribution is made; or
ii. The contribution is made by way of transfer from another registered family education saving plan.
Transaction fees may be charged if a cheque or pre-authorized payment is not honored on its first presentation.
10. INVESTMENTS
The Plan Property will be invested and reinvested by the Promoter from time to time in the investments selected in accordance with the Subscriber’s directives. The directives shall be transmitted
in a form that is satisfactory to the Promoter. In making the investment selection, the Subscriber may select units of mutual funds managed by the Promoter or other investments acceptable to
it in its sole discretion. In selecting investments for the Plan, the Subscriber will not be limited to investment authorized by legislation governing the investment property held in trust. Neither
the Promoter nor the Trustee will provide any investment advice regarding the purchase, retention or sale of any investment by the Plan and will not be held responsible for
advice the Subscriber may have received from another party. Cash distributions received on investment held in the Plan will be invested in additional investments of the same type unless
the Subscriber instructs otherwise. In the event the Subscriber fails to give satisfactory investment instructions as to the desired allocation in the various Funds under the Plan, the Contributions
will be invested in the IA Clarington Money Market Fund until he/she will give specified instructions.
The Subscriber acknowledges that the Plan Property may be invested and reinvested by the Promoter in its investments or those of its affiliates.
Notwithstanding any provision contained in the Plan, the Promoter reserves the right to determine and modify the investments in which the Plan may be invested or reinvested, including, inter
alia, investments which, in the Promoter’s understanding, are not qualified under the provisions of the Tax Laws for trusts governed by registered education savings plans.
The Promoter may only acquire property that is a qualified investment under the provisions of the Tax Laws for trusts governed by registered education savings plans. When a property held by the
Plan ceases to be such a qualified investment, the Plan shall dispose of it within sixty (60) days.
The Plan may not begin carrying on a business.
Where the Trustee holds property in connection with the Plan, it may not borrow money for the purposes of the Plan, except where:
i. the money is borrowed for a term not exceeding ninety (90) days;
ii. the money is not borrowed as part of a series of loans or other transactions and repayments; and
iii. none of the property of the trust is used as security for the borrowed money.
11. OWNERSHIP AND VOTING RIGHTS
The investments of the Plan will be held in the name of the Trustee or any other name the Trustee may determine. The Trustee is entitled to exercise in its sole discretion the rights, powers and
privileges that could otherwise be exercised by the beneficial owner of the investments of the Plan.
12. GRANTS
Whenever the Plan is authorized to receive any Grant, the Promoter will apply for them on behalf of the Subscriber and will take the measures required to ensure that such Grant is paid into the
Plan after the Promoter receives:
a) the instructions to apply for the Grant;
b) satisfactory evidence that the Beneficiary is eligible for the Grant;
c) any information or document that the Promoter or a government authority may require in connection with the Grant application.
Neither the Trustee nor the Promoter is responsible of any loss that might be related to any delays in the receipt of Grant payments.
13. TRANSFERS
At all times before a payment is made under Section 18 “ACCUMULATED INCOME PAYMENTS” and following the Subscriber’s written request in such regard, all or part of the Plan Property
(net of the applicable charges) will be transferred to the carrier of another plan in accordance with the Subscriber’s request. However, an amount equal to the Grants received in the Plan may be
withheld as long as the Promoter has not obtained satisfactory proof in respect of the refundable amount of such Grants, as the case may be, from the concerned government authorities. The
Promoter and the Trustee will provide the other plan carrier with all the relevant information held by them. The Promoter will take the measures required to sell or transfer the Plan investments
in accordance with the written instructions received from the Subscriber. In the absence of satisfactory written instructions, the Promoter may take the measures required to sell or transfer any
Plan investment, chosen at its sole discretion, in order to effect the transfer, and shall not be held liable for any contingent loss arising from such transfer. The transfer of Plan Property will be
made subject to any limitation under the applicable Tax Laws, the Canada Education Savings Act or the Plan investment terms and conditions.
Where property irrevocably held by a trust governed by a registered education savings plan (transferor plan) is transferred to a trust governed by another registered education savings plan (transferee
plan), for the purpose of Contribution into the Plan, termination of the Plan and Accumulated Income Payments, the transferee plan is deemed to have been entered into on the day that is the earlier of:
i. the day on which the transferee plan was entered into;
ii. the day on which the transferor plan was entered into.
14. REFUNDS OF CONTRIBUTION AND REPAYMENT OF GRANT
Upon receipt of the Subscriber’s written request in such regard and subject to the applicable Tax Laws, the Subscriber is entitled, at all times, to receive a refund of the Contributions he/she has
made to the Plan or may request that the refund amount be paid to any person he/she indicates to the Promoter, to the extent that such amount does not exceed the Contributions previously paid
into the Plan, net of the applicable charges and refunds previously made under this section.
In order to make such a refund, the Promoter will take the measures required to sell or transfer the Plan investments in accordance with the Subscriber’s written instructions. In the absence of
satisfactory written instructions, the Promoter may take the measures required to sell or transfer any Plan investment, chosen at its sole discretion, in order to make the refund, and shall not be
held liable for any contingent loss arising from such refund. The refund will be made subject to any limitation under the applicable Tax Laws or the Plan investment terms and conditions. When
the refund is made, neither the Promoter nor the Trustee shall have other obligation or duty to the Subscriber in respect of the Plan Property sold to make the refund. The refund requested shall
be made net of the following applicable charges:
• taxes and income taxes (including interest and penalties) claimed or claimable under the Plan, if applicable;
• sales charges and other inherent charges;
• any amount that must be withheld by reason of the payment of income tax arising from the withdrawal of Plan funds, if applicable.
If Contributions that have given rise to a Canada Education Savings Grant are withdrawn by the Subscriber and no Beneficiary is entitled to the Educational Assistance Payment, the Trustee,
following Promoter’s instructions, shall repay to the federal government the amount in Canada Education Savings Grant as determined in the Canada Education Savings Act.
The Trustee, following Promoter’s instructions, may be required to repay the Grant to the government on:
i. withdrawal of assisted Contributions (20% of amount of withdrawal);
ii. termination of the Plan;
iii. revocation of the Plan;
iv. ineligible transfer of the Plan;
v. eligible replacement of a Beneficiary;
vi. repayment of an Accumulated Income Payment;
vii. payment to a Designated Educational Institution.
The Trustee, following Promoter’s instructions, may also be required to repay the Grants received in the Plan in accordance with other circumstances set out in the applicable Tax Laws. In addition,
if an individual who is a Beneficiary is also the beneficiary of one or more other education savings plans and receives an amount equal to the Grants received in the Plan that exceed the maximum
permitted by the applicable Tax Laws, the individual shall refund the amounts exceeding the authorized amount to the federal or provincial government, where applicable.
15. PAYMENTS FROM THE PLAN
Before each payment is made from the Plan, the Subscriber may be required to provide information and evidence satisfactory to the Promoter confirming that the payment is permitted under the
Plan, the Tax Laws and any other applicable legislation. The decision of the Promoter as to whether a payment is permitted will be final and binding on the Subscriber and the Beneficiaries. In
the absence of satisfactory instructions from the Subscriber, the Promoter may sell or transfer investments of the Plan selected by it, in its sole discretion, for the purpose of making a payment
from the Plan and will not be liable for any resulting loss. Payments from the Plan will be made net of all proper charges including tax required to be withheld and expenses incurred by the Plan
upon the sale or transfer of investments. If the Plan does not have sufficient cash to pay these charges, the Promoter may impose any other reasonable requirements and conditions in respect of
payments from the Plan. A payment from the Plan will be deemed to have been made when a cheque payable to the recipient is mailed in a postage pre-paid envelope addressed to the recipient
at the last known address for the recipient or an amount is electronically transferred to the credit of a bank account for the recipient.
16. EDUCATIONAL ASSISTANCE PAYMENTS
Upon receipt of a written notice from the Subscriber in the form prescribed by the Promoter and if the Promoter has determined that the conditions precedent to such payment under the applicable
laws have been satisfied, the Promoter shall proceed with the sale of the necessary Plan investments in accordance with the Subscriber’s written instructions to make Educational Assistance
Payments to or on behalf of the Beneficiary. Unless otherwise indicated in the Subscriber’s application, the payments will first be made out of the net accumulated income (including the capital
appreciation) in the Plan and, to the extent permitted by the applicable Tax Laws or required by the Canada Education Savings Act, of any Grant paid into the Plan. In accordance with the applicable
Tax Laws, a portion of each Educational Assistance Payment may be attributable to a Grant established in accordance with the terms of the Tax Laws. The Promoter shall adjust the Beneficiary’s
register in respect of the administration of the Grant as required.
17. LIMITATION ON EDUCATIONAL ASSISTANCE PAYMENTS
In accordance with the applicable legislation, the Plan does not allow for the payment of an Educational Assistance Payment to a Beneficiary at any time unless:
i. either
a) the individual is, at that time, enrolled as a student in a Qualifying Educational Program at a Post-Secondary Educational Institution; or
b) the individual has, before that time, attained the age of sixteen (16) years and is, at that time, enrolled as a student in a Specified Educational Program at a Post-Secondary Educational
Institution; and
ii. either
a) the individual satisfies, at that time, the condition set out in subparagraph i.a); and
I. he/she has satisfied that condition throughout at least thirteen (13) consecutive weeks in the 12-month period that ends at that time; or
II. the total of the payments and all other Educational Assistance Payments made under the Plan to or for the individual in the 12-month period that ends at that time does not exceed $5,000
or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual; or
b) the individual satisfies, at that time, the condition set out in clause i.b) and the total of the payment and all other Educational Assistance Payments made under the Plan to or for the individual
in the 13-week period that ends at that time does not exceed $2,500 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in
writing with respect to the individual.
Notwithstanding the preceding, the Plan may allow for the payment of an Educational Assistance Payment to or for an individual at any time in the 6-month period immediately following the
particular time at which the individual ceases to be enrolled as a student in a Qualifying Educational Program or a Specified Educational Program, as the case may be, if the payment would have
complied with the requirements of paragraphs i. and ii. above had the payment been made immediately before the particular time.
An Educational Assistance Payment that is made at any time in accordance with the preceding paragraph but not in accordance with paragraphs i. and ii. above is deemed, for the purposes of
applying that paragraph at and after that time, to have been made immediately before the particular time referred to in the previous paragraph.
18. ACCUMULATED INCOME PAYMENTS
Upon written notice in the manner prescribed by the Promoter, an Accumulated Income Payment may be made at the particular time only if:
i. the payment is made to, or on behalf of, a Subscriber who is resident in Canada when the payment is made;
ii. the payment is not made jointly to, or on behalf of, more than one Subscriber; and
iii. any of:
a) the payment is made after the 9th year that follows the year in which the Plan was entered into and each individual (other than a deceased individual) who is or was a Beneficiary has attained
twenty-one (21) years of age before the payment is made and is not, when the payment is made, eligible under the Plan to receive an Educational Assistance Payment;
b) the payment is made in the 35th year following the year in which the Plan was entered into;
c) each individual who was a Beneficiary under the Plan is deceased at the time the payment is made.
The conditions set out in paragraph iii. will not apply where a Beneficiary suffers from a severe and prolonged mental impairment that prevents, or can reasonably be expected to prevent, that
Beneficiary from enrolling in a Qualifying Educational Program at a Post-Secondary Educational Institution and if the Minister of National Revenue has waived the application thereof.
19. SUBSCRIBER’S RESPONSIBILITIES
The Subscriber shall be responsible for:
i. ensuring the accuracy of information furnished in respect of him/her, the Beneficiaries, the Beneficiaries’ parents or any other person related to the Plan, and for notifying the Promoter of any
change in the information furnished;
ii. furnishing all the information required in the application and necessary for the administration of Canada Education Savings Grant pursuant to the applicable Tax Laws;
iii. solely ensuring compliance with the RESP Lifetime Limit that the Subscriber is authorized to pay into the Plan under the applicable Tax Laws. Being understood that a person may be designated
as a Beneficiary of a registered education savings plan by more than one Subscriber, any overpayments made on behalf of a Beneficiary shall be established in accordance with the total amounts
paid by the Subscriber(s). Should Contributions for a given Beneficiary exceed the RESP Lifetime Limit, the Subscriber will be responsible for paying any income tax on the overpayments and for
requesting a refund of the Contributions;
iv. selecting investments for the Plan and assessing the merits of those investments or obtaining the advice of a representative to do these things;
v. ensuring that the investments held in the Plan are at all times qualified investments for the Plan under the Income Tax Act and immediately notifying the Promoter if an investment held in the
Plan is or becomes a non-qualified investment.
The Subscriber acknowledges and accepts sole responsibility for these matters and undertakes to act in the best interest of the Plan. The Subscriber confirms that neither the Promoter
nor the Trustee is responsible for any of these matters or for any loss in the value of the Plan. The Subscriber acknowledges that neither the Promoter nor the Trustee is responsible for any
investment or tax advice that he/she may obtain from his/her representative or any other source. The Subscriber acknowledges that any financial advisor or representative appointed by him/
her in connection with the Plan and any person from whom he/she obtains investment, tax or other advice is his/her representative and not the agent of the Promoter, the Trustee or any of
their affiliates.
20. PROMOTER’S RESPONSIBILITY
The Promoter shall have ultimate responsibility for the Plan, including the responsibility for obtaining approval of the Plan specimen from the tax authorities and shall:
i. forward an application for Plan registration for the purposes of the Tax Laws;
ii. collect the Contributions paid into the Plan;
iii. make Grant applications on behalf of the Plan;
iv. invest and reinvest the Plan Property as directed by the Subscriber;
v. issue statements to the Subscriber as set out herein;
vi. furnish any information or notice required by the applicable Tax Laws to the Subscriber and each Beneficiary;
vii. receive and carry out instructions received from the Subscriber;
viii. make payments out of the Plan in accordance with the terms hereof;
ix. deal, should the case arise, with the relevant tax administrations concerning the Plan or following amendments to the Plan terms;
x. ensure compliance with all relevant provisions contained in the applicable Tax Laws;
xi. perform, from time to time, any other duty necessary to administer the Plan that is deemed appropriate by the Promoter and the Trustee.
Without waiving its responsibilities, the Promoter may delegate duties or retain the services of the Trustee or other agents in respect of the administrative services concerning the Plan.
21. SUBSCRIBER’S ACCOUNT
The Promoter shall maintain an account for the Subscriber, in which the following information shall be recorded:
i. the amount of Contributions paid into the Plan;
ii. the amounts of Grant paid into the Plan;
iii. the number and cost of investments acquired;
iv. the amount of income, dividends, capital gains and other earnings in respect of the Plan Property;
v. the net value of the Plan Property;
vi. the applicable charges pursuant hereto;
vii. the payments made as a refund of Contributions to the Subscriber or as an Accumulated Income Payment and any Grant repayment;
viii. the payment to a Beneficiary as an Educational Assistance Payment; and
ix. any transaction effected hereunder through the maintenance of a register specifying the names and addresses of the recipients.
The Promoter undertakes to forward an annual statement to the Subscriber showing the balance of the Subscriber’s account and the information herein above in accordance with the data existing
on the statement date.
22. PROOF
Before making a payment out of the Plan, the Promoter or the Trustee may ask the Subscriber to furnish such documents as it may deem necessary to determine whether such payment meets the
Plan requirements. The decision of the Trustee or the Promoter on its behalf regarding the compliance of any payment in respect of such requirements and any applicable legislative provision will
be final and binding on the Beneficiaries and the Subscriber.
23. FEES AND CHARGES
The Promoter and the Trustee may apply reasonable fees and administration charges established from time to time in respect of the Plan to the refund of the reasonable disbursements and
expenses incurred in the performance of their respective obligations pursuant hereto. Unless the Subscriber pays the fees and charges directly, the Promoter shall be entitled to deduct the unpaid
charges, disbursements and expenses from the Plan Property other than amounts paid into the Plan as Grant amounts. For such purposes, the Subscriber authorizes the Trustee and the Promoter
to realize a sufficient portion of the Plan Property, which they may choose at their sole discretion. Neither the Promoter nor the Trustee shall be held liable for any contingent loss whatsoever
following such transaction.
24. PLAN AMENDMENT
From time to time, the Promoter may amend the Plan provided that the amendment in question does not modify the nature of the Plan as a registered education savings plan for tax purposes and
subject to obtaining the approval of the relevant authorities pursuant to the applicable Tax Laws, as the case may be. Any amendment made to the Plan shall take effect thirty (30) days after the
sending of a prior written notice to such effect addressed to the Subscriber, by the Promoter.
25. TERMINATION OF THE PLAN
The Plan must be terminated on or before December 31st of the 35th year following the year in which the Plan was entered into (hereafter referred to as the “Termination Date”). If the Subscriber
wants to terminate the Plan before the Termination Date, the date shall be determined by the Subscriber in the application. The Subscriber may change the Termination Date by means of a written
notice to the Promoter in a form satisfactory thereto.
In the event of the transfer of property irrevocably held by a trust governed by another registered education savings plan in favor of the Plan, the Plan shall terminate on or before the last day of
the 35th year following the year during which the first of the two plans came into force.
If, under the Plan, an Accumulated Income Payment is allowed and is made, the Plan must be terminated before March of the year following the year in which the first Accumulated Income Payment
is made out of the Plan.
The Promoter shall notify the Subscriber in writing of the termination before the Plan Termination Date.
In the event that the Plan is terminated, the Plan Property shall be used for any of the purposes described in Section 6 “OBJECT”.
The Promoter shall take the measures required to sell or transfer Plan investments in accordance with the written instructions received from the Subscriber. All the applicable charges and any
Grant that are required to be repaid by the Plan will be deducted from the payments made hereunder. In the absence of instructions and under any applicable Tax Laws, all Plan Property shall be
returned to the Subscriber upon termination of the Plan.
26. CHANGE DURING THE SUBSCRIBER’S LIFETIME
Only the Spouse or Common-law partner of the initial Subscriber may be considered to be the new Plan Subscriber if such spouse or common-law partner acquires the rights of the initial Subscriber
following a court order or a written agreement to partition property between two individuals following the breakdown of their marriage or their common-law relationship. However, if the initial
Subscriber is a Public Primary Caregiver, any other individual or Public Primary Caregiver may be considered as the new Plan Subscriber if he/she acquires the rights of the initial Subscriber
following a written agreement.
27. SUBSCRIBER’S DEATH
If the Subscriber dies before the Plan terminates, any other person, including the estate of the deceased Subscriber, who acquires the individual’s rights as a subscriber under the Plan or who
makes Contributions into the Plan in respect of a Beneficiary, becomes the Plan Subscriber.
28. LIMITS OF LIABILITY
Neither the Promoter nor the Trustee, its officers, employees or agents shall, in the performance of their duties, be held liable for the following:
i. income taxes, interest or penalties that may be claimed under the applicable Tax Laws in respect of the Plan;
ii. charges levied or imposed by the government authorities arising from payments made out of the Plan or the purchase, sale or maintenance of investments in the Plan; and
iii. costs inherent to the performance of their respective duties in accordance with the provisions of this agreement and the applicable Tax Laws.
To pay such income taxes, interest, penalties or charges, or to be refunded the charges in respect of such payment, the Trustee may draw on the Plan Property either in whole or in part, and at
its discretion. The Promoter may act in the same manner and shall authorize the Trustee to reimburse it accordingly. The Subscriber, its estate, testamentary executors and legal representatives,
and the Beneficiaries shall, at all times, indemnify the Trustee and the Promoter for all income taxes, interest, penalties, or charges claimed under the Plan, expenses incurred in the performance
of their respective duties hereunder or any loss affecting the Plan, with the exception of losses for which the Trustee or the Promoter is held liable pursuant to this section.
Any investment made with the assets of the Plan will be for the Subscriber’s benefit and his/her risk. Neither the Promoter nor the Trustee is authorized to select investments for the Plan and will
not assess the merits of any investment selected by the Subscriber or his/her representatives.
Moreover, the Subscriber, its estate, testamentary executors and legal representatives, and the Beneficiaries under the Plan will at all times indemnify and save harmless the Promoter, the Trustee
and any of their agents from all taxes, assessments, expenses, liability, claims and demands arising out of the purchase, sale or retention of assets of the Plan or anything done in connection
with the Plan, other than as the result of their dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard. Neither the Promoter nor the Trustee will be liable for any loss or
penalty suffered as a result of any act done by it in reasonable reliance of the Subscriber’s authority or the authority of the properly authorized agent or legal representatives of the Subscriber.
29. ASSIGNMENT BY THE PROMOTER
The Promoter may assign its rights and obligations hereunder to any corporation established in Canada, provided that such corporation signs an agreement to assume the rights and obligations
under the terms of the Plan, and provided that an assignment of this Plan shall not be valid without the prior written consent of the Trustee, which consent shall not be refused abusively.
30. DELEGATION OF DUTIES
Without detracting in any way from their responsibilities, the Promoter and the Trustee may appoint agents and may delegate to its agents the performance of clerical, administrative and other
duties under this declaration. Each of the Promoter and the Trustee may employ or engage accountants, brokers, lawyers or others and may rely on their advice and services. Neither the Promoter
nor the Trustee will be liable for the acts or omissions of any of its advisors or agents. Each of the Promoter and the Trustee may pay to any advisor or agent all or part of the fees received by it
under the terms of this declaration.
31. SUCCESSOR TRUSTEE
The Trustee may resign and be discharged from all duties and liabilities under this declaration by giving the Subscriber thirty (30) day’s written notice. The Promoter is nominated to appoint a
successor trustee. If the Promoter fails to appoint a successor trustee within sixty (60) days following its receipt of a notice of resignation, the Trustee may itself appoint its own successor.
The new trustee shall have the same powers, rights and obligations as the former Trustee, provided that the former Trustee or its successor, as the case may be, signs and delivers to the new
trustee all instruments translatory of property, transfer acts or other assurances necessary or desirable to give effect to its appointment.
Any successor trustee shall be approved by the Canada Revenue Agency and be a corporation resident in Canada authorized under the laws of Canada or the province of residence of the Subscriber
to exercise the duties and responsibilities of trustee in respect of the Plan. The successor trustee shall give notice of its appointment to the Subscriber immediately upon becoming the successor
trustee under the Plan.
Any corporation merging, consolidating or amalgamating with the Trustee or any corporation resulting from such merge, consolidation or amalgamation shall be authorized to act as trustee for
this Plan without any requirement to sign another document, provided such corporation is authorized by law to be the trustee of the Plan. Thereafter, the term “Trustee” shall also designate such
corporation in connection with this Plan.
Upon acceptance, the successor trustee will be the trustee of the Plan for all purposes as if it had been the original trustee of the Plan. The Plan will continue to be in force and effect with the
new trustee and the Trustee will be relieved of all duties and liabilities under this Plan.
32. APPLICABLE LAWS
This declaration will be governed, construed and enforced in accordance with the laws of Ontario and Canada and in particular, with the Income Tax Act.
Specimen Plan RESP 1145001 Education Savings Plan Family, Revised: November 12, 2015
(18-0842) 07/18-010130-08
Administration
IA Clarington Investments Inc.
c/o International Financial Data Services (Canada) Limited
30 Adelaide Street East, Suite 1, Toronto, ON M5C 3G9
Toronto Oce
522 University Avenue, Suite 700, Toronto, ON M5G 1Y7
Phone: 888.860.9888
Fax: 416.860.9884
Client Services
Phone: 800.530.0204
Fax: 866.506.9884
funds@iaclarington.com | www.iaclarington.com
IA Clarington Investments Inc.
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Completed 26 December 2020

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