Page 1 of 13 Scotiabank Equity Powered GICs • Enjoy full principal protection • Benefit from the return potential of equity investments • Invest for growth or income • Select with or without minimum guaranteed rate Consider this investment if: – You want a 100% principal guaranteed and CDIC eligible investment – You want to invest for two years or longer – You want the potential to enhance your GIC returns – You are willing to forgo the guaranteed return of a traditional GIC in exchange for the potential to earn a higher return Scotiabank Equity Powered GICs Canadian Income Canadian Guaranteed Return Canadian Growth American Growth Global Growth Term in years 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5 Minimum Annual Guaranteed Interest Rate / / Paid annually / / Compounded and paid at maturity None None None Maximum Basket Return / / Paid annually / / Paid at maturity / / Paid at maturity / / Paid at maturity / / Paid at maturity Cumulative Maximum Potential Return* Up to / / Up to / / Up to / / Up to / / Up to / / Linked to Basket of Canadian Shares Basket of Canadian Shares Basket of Canadian Shares Basket of US Shares Basket of Global Shares Minimum investment $500 (Canadian Dollars Only) Principal 100% Principal Guarantee CDIC eligible Yes Enjoy the potential for equity powered return with principal protection This series is available * This is not an annual return but rather the maximum cumulative return over the entire term of the GIC. It is the sum of the Minimum Annual Guaranteed Interest Rate for each year of the term, if applicable, and the Maximum Basket Return (for each year of the term, for Canadian Income). Actual return could be the Minimum Annual Guaranteed Interest Rate only, or zero, as applicable.
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Enjoy the potential for equity powered return with principal … · 2020-06-10 · Scotiabank Equity Powered GICs Canadian Income Canadian Guaranteed Return Canadian Growth American
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Page 1 of 13
Scotiabank Equity Powered GICs
• Enjoy full principal protection • Benefitfromthereturnpotentialofequityinvestments
Do I need to choose only one of the payout options?Theminimuminvestmentis$500.Therefore,ifyouhave$2,000toinvest,youcould,forexample,choosetopurchasetheScotiabankEquityPoweredGIC–CanadianIncomefor$500for2-years,theScotiabankEquityPoweredGIC–CanadianGuaranteedReturn for$500for3-years,theScotiabankEquityPoweredGIC–AmericanGrowthfor$500for5-years,andScotiabankEquityPoweredGIC–GlobalGrowthfor$500for5-years,therebyladderingyourmaturitydatesanddiversifyingyourinvestment.
To make the Scotiabank Equity Powered GICs part of your portfolio, talk to your Scotiabank advisor today.* MaximumPotentialReturnisthehighestpossiblereturnandincludestheminimumannualguaranteedinterestrate.Thisisnotanannualrateorrateofreturnandspecifiedfortheentireterm.
Guaranteed ReturnCanadian Growth American Growth Global Growth
Term 2 3 5 2 3 5 2 3 5 2 3 5 2 3 5
Minimum Annual Guaranteed Interest Rate
0% 0% 0% 0% 0% 0% 0% 0% 0%
Maximum Share Price Return/Maximum Basket Return (paid at maturity)
N/A N/A N/A
Maximum Annual Share Price Return / Maximum Annual Return
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Please check only one (for more details on the share and companies, please refer to “The Shares and the Companies”)
£ Basket of Canadian Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Canadian Income, Scotiabank Equity Powered GIC - Canadian Guaranteed Return and Scotiabank Equity Powered GIC - Canadian Growth only):
£ Basket of US Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - American Growth):
£ Basket of Global Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Global Growth):
2. Your Principal:YourPrincipal(“Principal”)isyourpurchaseamountplusanyinteriminterestearnedbetweenthepurchasedateandissuedate.Theprincipalisguaranteedandwillbepaidbacktoyouatmaturity.ThePrincipalwillincludeanyinteriminterestearnedbetweenthepurchasedateandtheissuedate.
9. Potential Conflicts of Interest:Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoyou.Scotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindingonyou.Consequently,potentialconflictsbetweenyourinterestsandScotiabank’sinterestsmayarise. Inaddition,Scotiabankanditsaffiliatesmayholdinterestsinorsecuritiesof,extendcredittoorenterintootherbusinessdealingswithoneormoreoftheentitieswhoseSharesareincludedintheBasket.Pleasesee“Terms and Conditions – Your Risks”formoreinformationonconflictsofinterest.
10. Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheetisprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
By signing below, you acknowledge that before entering this agreement to purchase your Scotiabank Equity Powered GIC in person, you have received a completed copy of this Scotiabank Equity Powered GIC Fact Sheet and that we have orally disclosed to you the information in the paragraphs numbered 1 to 10 above prior to or at the time of entering into this agreement. You further acknowledge that you have received and read a copy of the Investment Companion Booklet. You agree to be bound by all of the terms, conditions and other provisions in this Fact Sheet and those terms, conditions and other provisions in the Investment Companion Booklet that relate to your Scotiabank Equity Powered GIC purchase.
Guaranteed ReturnCanadian Growth American Growth Global Growth
Term 2 3 5 2 3 5 2 3 5 2 3 5 2 3 5
Minimum Annual Guaranteed Interest Rate
0% 0% 0% 0% 0% 0% 0% 0% 0%
Maximum Share Price Return/Maximum Basket Return (paid at maturity)
N/A N/A N/A
Maximum Annual Share Price Return / Maximum Annual Return
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Please check only one (for more details on the share and companies, please refer to “The Shares and the Companies”)
£ Basket of Canadian Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Canadian Income, Scotiabank Equity Powered GIC - Canadian Guaranteed Return and Scotiabank Equity Powered GIC - Canadian Growth only):
£ Basket of US Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - American Growth):
£ Basket of Global Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Global Growth):
2. Your Principal:YourPrincipal(“Principal”)isyourpurchaseamountplusanyinteriminterestearnedbetweenthepurchasedateandissuedate.Theprincipalisguaranteedandwillbepaidbacktoyouatmaturity.ThePrincipalwillincludeanyinteriminterestearnedbetweenthepurchasedateandtheissuedate.
9. Potential Conflicts of Interest:Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoyou.Scotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindingonyou.Consequently,potentialconflictsbetweenyourinterestsandScotiabank’sinterestsmayarise.Inaddition,Scotiabankanditsaffiliatesmayholdinterestsinorsecuritiesof,extendcredittoorenterintootherbusinessdealingswithoneormoreoftheentitieswhoseSharesareincludedintheBasket.Pleasesee“Terms and Conditions – Your Risks”formoreinformationonconflictsofinterest.
10. Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheetisprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
By signing below, you acknowledge that before entering this agreement to purchase your Scotiabank Equity Powered GIC in person, you have received a completed copy of this Scotiabank Equity Powered GIC Fact Sheet and that we have orally disclosed to you the information in the paragraphs numbered 1 to 10 above prior to or at the time of entering into this agreement. You further acknowledge that you have received and read a copy of the Investment Companion Booklet. You agree to be bound by all of the terms, conditions and other provisions in this Fact Sheet and those terms, conditions and other provisions in the Investment Companion Booklet that relate to your Scotiabank Equity Powered GIC purchase.
TheScotiabankEquityPoweredGIC(“GIC”)isanon-redeemable,non-transferableguaranteedinvestmentcertificatewhoserateofreturn,ifany,isbasedonthepriceperformanceofanunderlyingBasketofSharesofCanadian,UScompaniesorinternationalcompanieswithglobaloperations. TheScotiabankEquity PoweredGIC is available asbothanon-registeredandregistereddeposit,subjecttothetermsoftheparticularplan.YoushouldreadthefollowingsummaryandthedetaileddescriptioncontainedinthisFactSheet.
Business Daymeansaday,otherthanaSaturday,SundayorstatutoryholidayinOntario,onwhichScotiabankisopenfordomesticbusinessinToronto,Ontario.
Business Exchange Daymeansanydayonwhicheachexchangeandeachrelatedexchangeareopenfortradingduringtheirrespectiveregulartradingsessions,notwithstandinganysuchexchangeorrelatedexchangeclosingpriortoitsscheduledclosingtimethatisalsoaBusinessDay.
Principal means your purchase amount plus any interim interest you earn between thepurchasedateand issuedateofyourScotiabankEquityPoweredGICasspecified inyourCustomerAgreement.
Return Calculation: Scotia Capital Inc. will act as calculation agent. See “How is the Return Calculated?”
Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheet isprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
Restrictions on Sale:YourScotiabankEquityPoweredGICisonlyavailableforsalewithinCanadaandtoCanadianresidents.
No amendment:ThetermsofYourScotiabankEquityPoweredGICwillnotbeamended,except(a)ifacompanyannouncesthetermsofaPotentialAdjustmentEvent;(b)ifthereisanEquityDisruptionEvent;(c)ifthereisaSubstitutionEventinrespectofaShareintheBasket;(d)AMergerEventandTenderOffer;(e)anExtraordinaryEventoranyothereventbeyondthereasonablecontroloftheissuerofyourGICwhichhasamateriallyadverseeffectontheissuer’sabilitytocalculatearateofreturnforyourGIC,tomanagetherelatedrisk,orotherwiseperformitsobligations.Thedefinedtermsusedinthisriskfactoraredescribedbelow.Thecalculationagentwillmakethenecessarydeterminationsinconnectionwithanyamendmentinthecircumstancessetforthabove.
Potential Adjustment Eventmeans, inrespectofaShareofacompanycomprisingtheBasket, the occurrence of any of the following events: (a) a subdivision, consolidation orreclassificationoftheShares(unlessresultinginamerger),orafreedistributionordividendofanysuchSharestoexistingholdersbywayofbonus,capitalizationorsimilarissue;(b)adistribution,issueordividendtoexistingholdersoftheSharesof:(i)additionalShares;or(ii)othersharecapitalorsecuritiesgrantingtherighttopaymentofdividendsand/ortheproceedsofliquidationoftheapplicablecompanyequallyorproportionatelywithsuchpaymentstoholders
Equity Disruption Eventmeans in respectofaShare,anyevent,circumstanceorcausebeyondthereasonablecontroloftheissuerwhichhasorwillhaveamaterialadverseeffectontheabilityofequitydealersgenerallytoacquire,establish,re-establish,substitute,maintain,unwindormodifyhedgesofpositionsinrespectofsuchShare.IfanEquityDisruptionEventinrespectofaShareoccursonaValuationDate(asdefinedbelowin“HowistheReturnCalculated”),thedeterminationoftheclosingpriceforthatShareonsuchdate(and,possibly,anypaymentofreturn,ifany)maybedelayed.FluctuationsintheclosingpriceoftheaffectedSharemayoccurintheinterim.If“Scotiabank”determinesthatanEquityDisruptionEventinrespectofaShareintheBaskethasoccurredandiscontinuingonanydatethatbutforthateventwouldbeaValuationDateinrespectofsuchShare,thenthereturn,ifany,willbecalculated(andtheapplicableclosingpricewillbedetermined)onthebasisthatsuchValuationDatewillbepostponedtothenextBusinessExchangeDaythatisalsoaBusinessDayonwhichthereisnoEquityDisruptionEventineffectinrespectofsuchShare.
Extraordinary Event:ThereisalwaysthepossibilityofanequitydisruptionorothereventbeyondthereasonablecontroloftheissuerofyourGICwhichmayhaveamaterialadverseeffectontheissuer’sabilitytocalculatetherateofreturnonyourScotiabankEquityPoweredGICs,tomanagetherelatedriskorotherwiseperformitsobligations.Shouldsuchaneventoccur,theissuermay,actingreasonably,takesuchactionsasitdeemsappropriate,includingwithout limitation, adjusting or delaying calculations or payment of any return on yourScotiabankEquityPoweredGICs.
Scotiabank Equity Powered GICsRate of return.TherateofreturnthatmaybepayableontheScotiabankEquityPoweredGIC–CanadianGrowth, ScotiabankEquity PoweredGIC–CanadianGuaranteedReturn and Scotiabank Equity Powered GIC – American Growth, Scotiabank Equity Powered GIC–GlobalGrowthislinkedtothesimpleaverageoftheShareReturns(oneforeachShare,eachofwhichcanbepositiveornegative).InvestorsshouldrealizethatthereisapossibilitythatnoreturnmaybepayableontheGICs(besidestheminimumannualguaranteedinterestrateinthecaseoftheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnonly)eventhoughthereisalimitonanyShare’snegativecontributiontotheaverageofShareReturnsiftheShareReturnforsuchshareisnegative.Atthesametime,themaximumShareReturnforanySharewillbecappedregardlessoftheactualpercentageincreaseinaShare’sclosingpricemeasuredfromthesecondBusinessExchangeDayfollowingtheIssueDatetothesecondBusinessExchangeDaypriortotheMaturityDate.Therefore,themaximumrateofreturn,ifany,thatmaybepayableisequaltothespecifiedmaximumShareReturn.SufficientlyweakpriceperformancebyoneormoreSharescanoffsetpositivepriceperformanceresultinginthepossibilityofnorateofreturnbeingpaid(besidestheminimumannualguaranteedinterestrateinthecaseoftheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnonly).Inaddition,unlesstheShareReturnispositiveatmaturity,norateofreturnwillbepayableontheScotiabankEquityPoweredGIC–CanadianGrowthandScotiabankEquityPoweredGIC–AmericanGrowth, ScotiabankEquity PoweredGIC–GlobalGrowthandonly theminimumannualguaranteedinterestratewillbepayableontheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn.Sinceyourprincipalisunconditionallyguaranteed,youwouldreceiveonlythatamountinthiseventandtheminimumannualguaranteedreturn,ifyouinvestedintheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn.TheScotiabankEquityPoweredGIC–CanadianGrowthandScotiabankEquityPoweredGIC–AmericanGrowth,ScotiabankEquityPoweredGIC–GlobalGrowthoffernoguaranteedreturn.
Rate of return – Scotiabank Equity Powered GIC – Canadian Income.TherateofreturnthatmaybepayableontheScotiabankEquityPoweredGIC-CanadianIncomeislinkedtothesimpleaverageoftheShareReturns(oneforeachShare,eachofwhichcanbepositiveornegative).Investorsshouldrealizethatthereisapossibilitythatthereturnwillbelimitedtotheminimumannualguaranteedinterestrateandmightnotexceeditforanyorsomeoftheyearsoftheterm.ThemaximumShareReturnforanySharewillbecappedregardlessoftheactualpercentageincreaseinaShare’sclosingpricemeasuredfromthesecondBusinessExchangeDayfollowingtheIssueDatetothesecondBusinessExchangeDaypriortotherelevantAnniversaryDate.Therefore,themaximumrateofreturneachyearthatmaybepayableisequaltothespecifiedmaximumShareReturn.SufficientlyweakpriceperformancebyoneormoreSharescanoffsetpositivepriceperformanceresultinginthepossibilityofonlytheminimumannualguaranteedinterestratebeingpaid.
Risks relating to the Shares.ItisimpossibletopredictwhethertheclosingpriceofaSharewillincreaseordecreaseoverthetermoftheScotiabankEquityPoweredGICs.ClosingpricesoftheShareswillbe influencedbybothcomplexand interrelatedpolitical,economic,andfinancialeventsthatcaninfluencethepriceofaparticularShare.AprospectiveinvestorshouldundertakeanindependentinvestigationoftheSharescomprisingtheBaskets,astheinvestordeemsnecessary,toallowtheinvestortoreachaninformeddecisiontoinvestintheGICs.AninvestmentintheScotiabankEquityPoweredGICsis,apartfromtheprincipalprotectionfeatureoftheScotiabankEquityPoweredGIC,subjecttothesamerisksasadirectequityinvestmentintheShares.
No ownership of Shares in the Basket.SincetheBasketofSharesisnotionalonly,investorswillhavenoownershiporotherinterestintheSharescomprisingtheBasketotherthantherighttobepaidareturn,ifany,ontheirScotiabankEquityPoweredGICbasedonthepriceperformanceoftheSharesintheBasket.AninvestorwillnothavetherightsofasecurityholderofanyofthecompaniesintheBasketincluding,withoutlimitation,anyvotingrightsorrightstoreceivedividendsorotherdistributions.TherewillbenocontroloverthemanagementofanycompanywhoseSharesarereflectedintheBasket.TheperformanceoftheScotiabankEquityPoweredGICswilldependinpartontheabilityandsuccessofthemanagementofthecompaniescomprisingtheBasket,inadditiontogeneraleconomicandmarketfactors.PastperformanceofacompanyoritsSharesisnotindicativeoffuturereturns.AllinformationinthedocumentationbeingdeliveredtoyouinrelationtotheScotiabankEquityPoweredGICsrelatingtotheSharesandthecompaniesisderivedfrompubliclyavailablesourcesandispresentedinthisfactsheetinsummaryform.Assuch,Scotiabankassumesnoresponsibilityfortheaccuracyorcompletenessofsuchinformationorforanymaterialcontainedonthewebsitesofthevariouscompaniesreferredtoherein.
Conflict of interests.Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoinvestorsofGICsonthematuritydateandonanniversarydatesfortheScotiabankEquityPowered-CanadianIncomeGIC.AllofScotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindinguponinvestors,withoutanyliabilitytoScotiabank,andinvestorsoranythirdpartywillnotbeentitledtoanycompensationfromScotiabankforanylosssufferedasaresultofanyofScotiabank’sdeterminationsandcalculations.SinceScotiabank’sdeterminations and calculationsmay affect the return, Scotiabankmay have a conflict ofinterest if it needs tomake any suchdeterminations and calculations because Scotiabankmayhaveaneconomicinterestadversetothoseofinvestors.Forexample,withrespecttoScotiabank’s hedging arrangements, certain determinations that Scotiabank must makeincluding,withoutlimitation,whetheranEquityDisruptionEventoranExtraordinaryEventhasoccurredandinmakingotherdeterminationswithrespecttoScotiabankEquityPoweredGIC.Scotiabankmayfromtimetotime,inthecourseofitsnormalbusinessoperations,holdSharesorinterestslinkedtoanyShareorcompany.Scotiabankanditsaffiliatesmayalsodealinthesecuritiesofeachcompany(includingShares)andmay,wherepermitted,acceptdepositsfrom,makeloansorotherwiseextendcreditto,andgenerallyengageinanykindofcommercialorinvestmentbankingorotherbusinesswithanycompanyoranyotherpersonorentityhavingobligationsrelatingtosuchcompanyandmayengageinproprietarytradingintheSharesorinoptions,futuresorderivativesrelatingtotheShares(includingsuchtradingasScotiabankmaydeemappropriate,initsdiscretion,tohedgeanyriskinconnectionwiththeScotiabankEquityPoweredGIC)andmayactwithrespecttheretointhesamemannerasitwouldiftheScotiabankEquityPoweredGICdidnotexist,regardlessofwhetheranysuchactionmighthave
Credit risk. Because the obligation to make payments to investors is an obligation ofScotiabank, the likelihood that such investorswill receive thepaymentsowing to them inconnectionwiththeGICswillbedependentuponthefinancialhealthandcreditworthinessofScotiabank.
Changes in legislation.Therecanbenoassurancethatincometax,securitiesandotherlawswillnotbeamendedorchangedinamannerwhichadverselyaffectsinvestors.
Economic and regulatory issues.Changesineconomicconditions,including,forexample,interestrates,inflationrates,commodityprices,industryconditions,competition,technologicaldevelopments,politicalanddiplomaticeventsandtrends,war,taxlawsandinnumerableotherfactors,canaffectsubstantiallyandadverselytheclosingpricesoftheShares.NoneoftheseconditionsarewithinthecontrolofScotiabank.TheGICsarenotsubjecttoCanadiansecuritieslaws.Accordingly,investorsdonothavethesamerightsofactionthataprospectuswouldprovide.NosecuritiescommissionorsimilarauthorityhasinanywaypasseduponthemeritsofinvestingintheScotiabankEquityPoweredGICsoranyoftheinformationthatisbeingdeliveredtoyou.
Tax considerations.
ThefollowingsummarizestheprincipalCanadianfederalincometaxconsiderationsgenerallyapplicabletoanindividual(otherthanatrust)who,forthepurposesoftheIncomeTaxAct(Canada) (the“Act”),dealsatarm’s lengthwith the IssuerandholdsaScotiabankEquityPoweredGICtomaturityoutside(an“investor”).ThissummaryisbasedontheActandtheregulationsmade thereunder (“Regulations”) as in force on the date of these Terms andConditions,allspecificproposalstoamendtheActorRegulationspubliclyannouncedbytheMinisterofFinancepriortothedateoftheseTermsandConditions(“TaxProposals”)andthecurrentadministrativepracticesandpoliciesoftheCanadaRevenueAgency.NoassurancecanbegiventhattheTaxProposalswillbeenactedasproposedoratall.Thissummarydoesnot,exceptfortheTaxProposals,takeintoaccountoranticipateanychangesinlaworintheadministrativepracticesandpoliciesoftheCanadaRevenueAgency.Provincial,territorialandforeignincometaxconsiderationsarenotaddressedinthissummary.
Thissummary isofageneralnatureonlyand isnot intendedtobe legalor taxadvice toany particular investor. No representation with respect to Canadian federal income taxconsiderations toanyparticular investor ismadeherein.Youshouldconsult yourown taxadvisorwithrespecttoyourparticularcircumstances.
When returns are to be included in income.Ingeneral,theinterestaccrualrulesundertheActandRegulationsshouldnotapplyinrespectoftheholdingofaScotiabankEquityPoweredGIC,except inrespectoftheminimumannualguaranteedinterestratefortheScotiabankEquityPoweredGIC-CanadianGuaranteedReturn.Accordingly,withtheexceptionoftheminimumannualguaranteedinterestratefortheScotiabankEquityPoweredGIC-CanadianGuaranteedReturn,youshouldnotberequiredtoincludeinincomeforanyyearthatendspriortothedeterminationoftheaverageofShareReturnsontheValuationDateimmediatelypriortotheMaturityDate(or,inrespectoftheScotiabankEquityPoweredGIC-CanadianIncome,theValuationDateinrespectoftheapplicableAnniversaryDate)anyimputedyieldinrespectofyourScotiabankEquityPoweredGIC.Ingeneral,anypositivereturn,onaScotiabankEquityPoweredGIC,(includinganyannualpositivereturninrespectofaScotiabankEquityPoweredGIC-CanadianIncome)willbeincludedinyourincomeintheyearitisreceivedorbecomesreceivable(dependingonthemethodregularlyfollowedbyyouincomputingincome)excepttotheextentthatitwasincludedinyourincomeforapreviousyear.
Information regarding registered plans.AScotiabankEquityPoweredGIC,ifissuedonthedateoftheseTermsandConditions,wouldbeaqualifiedinvestmentfortrustsgovernedbyregisteredretirementsavingsplans,registeredretirementincomefunds,registerededucationsavingsplans,deferredprofitsharingplans(otherthanadeferredprofitsharingplantowhichpaymentsaremadebytheIssuer,ScotiabankoracorporationorpartnershipwithwhichtheIssuerorScotiabankdoesnotdealatarm’slengthwithinthemeaningoftheAct)andtax-freesavingsaccounts(collectively,“RegisteredPlans”)andmaybeheldinsuchplanssubjecttothetermsoftheparticularRegisteredPlan.
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Scotiabank Equity Powered GICs
Definition of Terms:
Basket of Shares (or Basket) meansthenotionalportfolioofequitysecuritiesofcompaniesusedasareferenceforthepurposesofmeasuringtheShareReturn.
Valuation Date means the second Business Exchange Day prior to theMaturity Date, subject to amendments due to Equity Disruption Events orExtraordinaryEvents.
Calculation for “Canadian Guaranteed Return”, “Canadian Growth”, “American Growth” and “Global Growth”:
Methodology of calculation:
At theMaturityDate, youwill receive the return, if any, in an amountequaltothePrincipalmultipliedbytheaverageoftheShareReturnsoftheSharesintheBasket,expressedasapercentage.
•At the Maturity Date, Scotiabank will calculate the average oftheShareReturnsof theShares intheBasket.Prior totheaveragebeingcalculated,theShareReturnofeachSharewillbesubjecttoamaximum(the“MaximumSharePriceReturn”)andtoaminimumasstatedinyourCustomerAgreement.TheaverageoftheShareReturnswillbeusedasyourreturnandyouwillreceivepaymentequaltothatreturnmultipliedbyyourPrincipal.Youshouldknowthat.
•No return will be paid unless average of the Share Returns isgreaterthanzero
•FortheScotiabank Equity Powered GIC - Canadian Guaranteed Return: aminimumannualguaranteedratewillbecompoundedthroughout the term and paid at maturity, regardless of theperformanceoftheShares.
Hypothetical Examples for “Canadian Guaranteed Return”, “Canadian Growth”, “American Growth” and “Global Growth”:
The following examples demonstrate how the return will be calculated and are included for illustration purposes only. The price performance of the Shares used to illustrate the calculation of the return are hypothetical and are not estimates or forecasts of future price performance or the amount actually payable. The actual price performance of the Shares will be different from this example and the differences may be material.
Both examples assume a 5 year term and $1,000 initial investment, a maximum Share Price Return of 35% and a minimum Share Price return of -10%. In the case of the Canadian Guaranteed Return only, a Minimum Annual Guaranteed Interest Rate of 0.75% is assumed.
Company 10 38.72 53.98 39.40% 35.00%Average 19.82%
Intheabovehypotheticalexample,theaverageoftheShareReturnsispositiveandwouldbe19.82%. Inthiscase, fora$1,000 investment,youwill receive your $1,000 Principal atMaturity aswell as a ShareReturn of $198.20 (equal to the Principal amount multiplied by theaverageShareReturnsof19.82%)foratotalof$1,198.20.
If you purchased theScotiabank Equity Powered GIC - Canadian Guaranteed Return, you will also receive an additional $38.07guaranteedreturnforatotalof$1,236.27atMaturitybecauseoftheMinimum Annual Guaranteed Interest Rate. This Minimum AnnualGuaranteedInterestRateiscalculatedasfollows:
•Minimum Annual Guaranteed Interest Rate (which, in thishypothetical example, is 0.75%) compounded over 5 years is3.807%.ThiscompoundedMinimumAnnualGuaranteedInterestRateismultipliedby$1,000principalproduces$38.07atMaturity.
If you purchased the Scotiabank Equity Powered GIC - Canadian Guaranteed Return,youwillreceive$38.07guaranteedreturnforatotalof$1,038.07atMaturitybecauseoftheMinimumAnnualGuaranteedInterestRate.ThisMinimumAnnualGuaranteedInterestRateiscalculatedasfollows:
•Minimum Annual Guaranteed Interest Rate (which, in this hypotheticalexample,is0.75%)compoundedover5yearsis3.807%.ThiscompoundedMinimumAnnualGuaranteedInterestRateismultipliedby$1,000principalproduces$38.07atmaturity.
•Foryoutoreceiveanannualpaymentthatexceedsthe“MinimumAnnualGuaranteedInterestPayment”,theannualaverageoftheShareReturnsmustexceed the“MinimumAnnualGuaranteed InterestPayment”– i.e. thesevaluesarenotaddedtogether.
Hypothetical Examples for “Canadian Income”:
In the following examples, the Minimum Annual Guaranteed Interest Rate is 0.75%, the maximum Share Return is 4% and the limit on negative Share Return is -5%, investment of $1,000 for a 3 year term.
The following examples demonstrate how the return will be calculated and are included for illustration purposes only. The price performance of the Shares used to illustrate the calculation of the return are hypothetical and are not estimates or forecasts of future price performance or the return payable. The actual price performance of the Shares will be different from this example and the differences may be material.
Example 1:Thefollowingisanexampleofpositiveperformance:
Share PricesCompany Initial Price Year 1 Year 2 Year 3
AstheaverageShareReturnsisbelowtheMinimumAnnualGuaranteedInterestRate, the paymentwill equal theMinimumAnnualGuaranteed Interest Ratemultiplied by the principal of $1,000 or $7.50. In Years 2 and 3 again theaverage of the Share Returns of the Basket is negative (-3.30%and -2.01%respectively) so again the payment will be equal to the Minimum AnnualGuaranteedInterestRatemultipliedbyyourprincipalor$7.50.AtMaturity,theinvestorwillalsoreceivebacktheirPrincipalof$1,000.