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Exclusively Savings Plan
Education for members of
The Education Community
Investment Application
and their families
PLANNING • INVESTING • LENDING
CLIENT CONSENT
I understand that in signing this application I consent to my personal information being collected, held, used
and disclosed by Educators Financial Group. If I have provided information concerning my spouse/partner
and/or my beneficiary, I confirm that I am authorized to provide such information. I understand that the
personal information collected may include but is not limited to:
• my name, address, social insurance number, date of birth and telephone number
• the name, address, social insurance number and date of birth of my spouse/partner and
beneficiary
• my e-mail address, school board and/or affiliation
• my banking information (i.e. void cheque for Pre-Authorized Contribution Plan).
I understand that Educators Financial Group may use and disclose this information for the following purposes:
• to establish and maintain an investment account for me;
• to verify my identity and protect me against fraud;
• to fully understand my investment needs, objectives and tolerance for risk so that Educators Financial
Group may determine appropriate investment strategies for me;
• to establish and maintain services that I may have requested such as a PAC (Pre-Authorized Contribution
Plan) and/or a Group Payroll Deduction Plan;
• to execute transactions for me such as transferring funds by electronic or other means;
• to establish and maintain paper/electronic communications with me through mediums including
newsletters, quarterly statements and special mailings;
• to provide me with information about Educators Financial Group products and services; and
• to meet legal and regulatory requirements.
I understand that I have the following rights concerning the privacy of my personal information:
• I have the right to know why Educators Financial Group collects, uses or discloses my personal
information;
• I have the right to expect that Educators Financial Group will only use or disclose my personal
information for the purpose for which it was collected, unless I give consent for it to be used for other
reasons;
• I have the right to know who at Educators Financial Group is responsible for protecting my personal
information;
• I understand that access to my personal information is restricted to and may only be accessed by
employees of Educators Financial Group whose professional duties requires them to do so;
• I am entitled, through a written request, to access and inspect the personal information Educators
Financial Group maintains in my client file. I may verify this personal information and request in writing,
that any inaccurate information be corrected. If my request or concern is not resolved to my satisfaction,
I have the right to file a formal complaint with the Privacy Commissioner of Ontario;
• I understand that Educators Financial Group will destroy my personal information when it is no longer
required for its original purpose;
• I have the right to withdraw my consent at any time by notifying Educators Financial Group in writing.
Education Savings Plan Account
For office use only
Rep.
Number
Account
Please note all sections must be completed in full before your account can be processed. Number
J Individual J Family Do you want the availability to view your account online? J Yes J No
School Board Affiliations: J OSSTF J ETFO J OECTA J AEFO J Retired J Other
1: Subscriber Information
J Mr. J Mrs. J Miss J Ms. J Dr.
Last Name First Name Initials
Address:
City Province Postal Code
Telephone: Res. ( ) Bus. ( ) Email
Social Insurance Number M A N D A T O R Y Date of Birth Y Y Y Y M M D D
Name of Employer: Type of Business:
Address: Occupation:
Joint Subscriber (for Joint Accounts only)
Last Name First Name Initials
Social Insurance Number M A N D A T O R Y Date of Birth Y Y Y Y M M D D
2: Know Your Client Information – Mandatory
Applicable securities laws require us to determine the general investment needs and objectives of potential purchasers before executing
purchase orders. This information will be held in strict confidence.
J Low
Investment Knowledge Investment Objective* Investment Risk Tolerance* Marital Status
J Sophisticated J Safety J Married
J Good J Income J Low–Medium J Single
J Fair J Balanced J Medium J Other
J Novice J Growth J Medium–High
J Speculation J High
J < 1 year
Approx Annual Income Approx Net Worth* Investment Time Horizon*
J Under $25,000 J Under $20,000
J $25,000 - $49,999 J $20,000 - $34,999 J 1 to < 3 years
J $50,000 - $74,999 J $35,000 - $59,999 J 3 to < 5 years
J $75,000 - $99,999 J $60,000 - $99,999 J 5 to < 10 years
J $100,000 - $124,999 J $100,000 - $199,999 J 10 to < 20 years
J $125,000 - $199,999 J $200,000 - $999,999 J Over 20 years
J $200,000 - $999,999 J Over $1 Million
J Over $1 Million * Please refer to Appendix A for more information
Spouse’s Name: _____________________________________________ Spouse’s Occupation: _______________________________
Number of Dependants: _______________________________________
3: Investment Instructions
AMOUNT PRE-AUTHORIZED
FUND NAME $ OR % CONTRIBUTION AMOUNT
$ OR %
Educators Money Market Fund
Educators Mortage & Income Fund
Educators Balanced Fund
Educators Dividend Fund
Educators Diversified Fund
Educators Growth Fund
Educators Global Fund
TOTALS $ $
4: Banking Information (Mandatory)
Bank Name: Account Number:
Branch Address: Transit Number:
5: Pre-Authorized Contribution Plan (PAC)
Frequency: J Weekly J Bi-Weekly J Semi-Monthly J Monthly Start Date: Y Y Y Y M M D D
Pre-Authorized Contribution Amount $ ______________
Where my application is for Pre-Authorized Contributions, I hereby authorize and request Educators Financial Group to draw on my
account, whether the account continues to be maintained at the named branch or is transferred to another branch of the financial institution.
Weekly and bi-weekly automatic contributions are processed on Fridays and the semi-monthly and monthly automatic
purchases are processed on the 1st and/or the 15th of the month.
A VOID CHEQUE IS REQUIRED TO ESTABLISH A PRE-AUTHORIZED CONTRIBUTION PLAN
For the terms and conditions related to your PAC please refer to the attached Pre-Authorized Chequing Agreement.
Y Y Y Y MMD D Y Y Y Y MMD D
Account Holder’s Signature Date Joint Account Holder’s Signature Date
(if applicable)
6: Beneficiary Designation
Individual Plan – Under an Individual Plan, the Subscriber may designate only one beneficiary.There is neither a relational
nor an age requirement.
Beneficiary 1
Surname ________________________________ Given Name(s) ____________________ (Initials) _______ Relationship ___________
(Name must be exactly as appears on Social Insurance Card)
Date of Social Insurance Gender Canadian resident
Birth Y Y Y Y M M D D Number M A N D A T O R Y F J M J YES J NO J
Custodial Parent/Guardian Name ____________________________ Beneficiary Address _____________________________________
(if not Subscriber) (Custodial Parent/Guardian address required if Beneficiary is under 19 years of age)
Family Plan – Under a Family Plan, one or more beneficiaries may be designated provided each beneficiary is related to the
Subscriber(s) by blood or adoption and has not attained 21 years of age.
Beneficiary 2
Surname ________________________________ Given Name(s) ____________________ (Initials) _______ Relationship ___________
(Name must be exactly as appears on Social Insurance Card)
Date of Social Insurance Gender Canadian resident
Birth Y Y Y Y M M D D Number M A N D A T O R Y F J M J YES J NO J
Custodial Parent/Guardian Name ____________________________ Beneficiary Address _____________________________________
(if not Subscriber) (Custodial Parent/Guardian address required if Beneficiary is under 19 years of age)
6: Beneficiary Designation (cont’d.)
Beneficiary 3
Surname ________________________________ Given Name(s) ____________________ (Initials) _______ Relationship ___________
(Name must be exactly as appears on Social Insurance Card)
Date of Social Insurance Gender Canadian resident
Birth Y Y Y Y M M D D Number M A N D A T O R Y F J M J YES J NO J
Custodial Parent/Guardian Name ____________________________ Beneficiary Address _____________________________________
(if not Subscriber) (Custodial Parent/Guardian address required if Beneficiary is under 19 years of age)
Beneficiary 4
Surname ________________________________ Given Name(s) ____________________ (Initials) _______ Relationship ___________
(Name must be exactly as appears on Social Insurance Card)
Date of Social Insurance Gender Canadian resident
Birth Y Y Y Y M M D D Number M A N D A T O R Y F J M J YES J NO J
Custodial Parent/Guardian Name ____________________________ Beneficiary Address _____________________________________
(if not Subscriber) (Custodial Parent/Guardian address required if Beneficiary is under 19 years of age)
7: Other Pertinent Information
SUCCESSOR SUBSCRIBER: (the person who will continue to administer the plan in the event of the death of the subscriber)
Surname ________________________________________ Given Name _________________________ (Initials) ____________
Designation of Educational Institution (entitled to amount held under plan in case of failure of direction on termination date.)
Name __________________________________________ Address ________________________________________________
This date must not be later than December 31st of the 31st year following the year the account
FINAL CONTRIBUTION DATE:
is established.
Y Y Y Y M M D D
This date must not be later than December 31st of the 35th year following the year the account
PLAN TERMINATION DATE:
is established. Y Y Y Y 1 2 3 1
8: Authorization
I/We hereby apply to open an Educators Financial Group Inc. Education Savings Plan, and request The Royal Trust Company (“Royal Trust”)
apply for registration of the Plan under the Income Tax Act (Canada) and any applicable provincial income tax legislation.
I/We acknowledge and agree to be bound by the terms and conditions of this Plan as set out in the application, the Declaration of Trust, and
any relevant addendum to the Plan.
I/We understand that the information contained in this form, as well as the amount of the contribution and grant paid and/or received to
the plan may be shared with the custodial parent/guardian. Information will also be provided to Human Resources Development Canada,
the federal government department responsible for the program and Canada Customs and Revenue Agency for taxation purposes.
It is my wish that all documents relating to the Account have been and shall be drawn up in the English language only. C’est mon désir que
tout document de rapportant au régime soient rédigés en anglais seulement.
By signing here I/We verify that all the information provided in Sections 1-7 is true, and you further confirm that you have read, understand
and acknowledge Appendix A, the Client Consent Document and the Risk Disclosure Document.
Y Y Y Y M M D D
Subscriber’s Signature Joint Subscriber’s Signature Date
Y Y Y Y M M D D
Sales Representative’s Signature Date
Y Y Y Y M M D D
Compliance Officer’s Approval Date of Approval
(Accepted by Educators Financial Group Inc., as agent for The Royal Trust Company)
(10/09)
Appendix A
Risk Tolerance
Risk tolerance can be defined by how comfortable you are with fluctuations in the value of your investments.
Please refer to the risk categories below to assist you in determining your own acceptable level of risk.
Low – Low risk investments demonstrate a low volatility and are for investors who are willing to accept lower
returns for greater safety of capital and may include money market and Canadian Bond funds.
Low-Medium – Low-medium risk investments demonstrate a low to medium volatility but a higher volatility
than those described above and may include bond funds and mortgage funds.
Medium – Medium risk investments demonstrate a medium volatility and are for investors looking for moderate
growth over a longer period of time and may include balanced funds, as well as certain Canadian and U.S. Equity funds.
Medium-High – Medium-High risk investments demonstrate a medium to high volatility and are for investors
looking for long-term growth and may include funds that invest in smaller companies, specific market sectors or
geographic areas.
High – High risk investments demonstrate a high volatility and are for investors who are growth oriented and are
willing to accept significant short-term fluctuations in portfolio value in exchange for potentially higher long-term
returns. Examples may include labour sponsored venture capital funds or funds that invest in specific market
sectors or geographic areas such as emerging markets and science and technology funds.
Investment Objectives
Safety: Your main focus is the preservation of capital and the generation of current income. As such, you will have
no exposure to equities in your portfolio.
Income: Your main focus is on generating income from investments in the form of interest and dividends, with
little emphasis on long-term capital appreciation. As such, your equity exposure should be no more than 30%.
Balanced: You are seeking a combination of income and growth by investing in fixed income securities and equity
funds. An account with income and growth objectives will typically hold approximately 50% in fixed income
investments and 50% in equity mutual funds.
Growth: You are primarily seeking capital appreciation over the long term.While current income is not a
requirement, a modest exposure to fixed income is desired to dampen potential portfolio volatility.An account with
growth objectives will typically hold approximately 25% in fixed income investments and 75% in equity mutual funds.
Speculation: You are seeking capital appreciation over the long term and current income is not a requirement.
Your long-term perspective, coupled with your stated capacity for portfolio volatility means you will be comfortable
holding up to 100% equity mutual funds.
Time Horizon
Time Horizon is the period between now and the point when you will need to access a significant portion of the
money you have accumulated.
Net Worth
Your Net Worth is calculated as estimated liquid assets (i.e. investments, cash) plus fixed assets (i.e. real estate) less
estimated liabilities (i.e. mortgage, car loan).
EDUCATORS FINANCIAL GROUP INC., EDUCATION SAVINGS PLAN
PLAN TEXT, INDIVIDUAL PLAN
(q) Post-Secondary School Level includes a program of courses at an
educational institution in Canada that is certified by the Minister of Human
1. DEFINED TERMS
(a) Accumulated Income Payment means any amount paid out of the Plan,
other than a payment described in any of sections 14(a) and 14(c) to 14(f), Resources and Social Development to be an educational institution
to the extent that the amount so paid exceeds the fair market value of any providing courses other than courses designed for university credit of a
consideration given to the Plan for the payment of the amount. technical or vocational nature designed to furnish the person with skills for
or improve a person’s skill in an occupation.
(b) Applicable Grant Legislation means:
the Canada Education Savings Act (Canada) and any regulations thereunder, (r) Promoter means EDUCATORS FINANCIAL GROUP INC. or any
as may be amended from time to time. successor Promoter under section 19.
(c) Applicable Tax Legislation means the Income Tax Act (Canada), the (s) Public Primary Caregiver of a beneficiary under an education savings
regulations thereunder and any applicable provincial income tax legislation plan in respect of whom a special allowance is payable under the Children’s
relating to education savings plans, all as may be amended from time to Special Allowances Act, means the department, agency or institution that
time. maintains the beneficiary or the public trustee or public curator of the
province in which the beneficiary resides.
(d) Application means the Subscriber’s application for a EDUCATORS
FINANCIAL GROUP INC. Education Savings Plan. (t) Qualifying Educational Program means a program at a Post-Secondary
School Level of not less than 3 consecutive weeks duration that requires
(e) Assets of the Plan means all amounts contributed to the Plan (including that each student taking the program spend not less than 10 hours per
transfers to the Plan from another RESP), all Government Grants received week on courses or work in the program.
by the Plan and all earnings and gains derived from investments, net of any
losses and fees, charges and disbursements payable pursuant to section 13 (u) Refund of Payments means
and any other payments from the Plan, and includes all investments and I. a refund of a contribution if the contribution was made otherwise than
uninvested cash held from time to time by the Trustee in accordance with by way of a transfer from another RESP or
the Plan. II. a refund of an amount that was paid into the Plan by way of a transfer
(f) Beneficiary means the individual, designated by the Subscriber in from another RESP where the amount would have been a refund of
accordance with section 3, to whom or on whose behalf an Educational payments under the other RESP if it had been paid directly to a
Assistance Payment will be paid if the individual qualifies under the Plan. subscriber under the other RESP.
(g) Designated Educational Institution in Canada means an educational (v) RESP means a “registered education savings plan” as defined in the
institution in Canada that is a university, college or other educational Applicable Tax Legislation.
institution designated by the Lieutenant Governor in Council of a province (w) RESP Lifetime Limit means the “RESP lifetime limit” as defined in the
as a specified educational institution under the Canada Student Loans Act, Applicable Tax Legislation.
designated by an appropriate authority under the Canada Student Financial
Assistance Act, or designated by the Minister of Education of the Province of (x) RRSP means a registered retirement savings plan as defined in the
Quebec for the purpose of An Act respecting financial assistance for education Applicable Tax Legislation.
expenses, R.S.Q., c. A-13.3. (y) Specified Educational Program means a program at a Post-Secondary
(h) Designated Provincial Program means a program administered pursuant School Level of not less than three consecutive weeks duration that requires each
student taking the program to spend not less than 12 hours per month on courses
Act (Canada) or a program designated under the Applicable Tax Legislation.
to an agreement entered into under section 12 of the Canada Education Savings
in the program.
(i) Educational Assistance Payment means any amount, other than a (z) Specified Plan means an education savings plan:
Refund of Payments, paid out of the Plan in accordance with section 10(a) (i) that does not allow more than one Beneficiary at any one time,
to or for the Beneficiary to assist the Beneficiary to further his or her (ii) under which the Beneficiary is an individual in respect of whom
education at a Post-Secondary School Level. paragraphs 118.3(1)(a) to (b) of the Income Tax Act (Canada) apply for
(j) Estate Representative means an executor, an administrator, an the Beneficiary's taxation year that ends in the 31st year following the
administrator with the will annexed, a liquidator or an estate trustee with Plan Commencement Year, and
a will or without a will, whether one or more than one is appointed. (iii) that provides that, at all times after the end of the 35th year following
(k) Final Contribution Date means the Plan Commencement Year, no other individual may be designated
as a Beneficiary;
(i) where the Plan is not a Specified Plan, the last day of the 31st year
following the Plan Commencement Year, and (aa) Subscriber, at any time, means:
(ii) where the Plan is a Specified Plan, the last day of the 35th year following (i) each individual (other than a trust) identified as a Subscriber in the
the Plan Commencement Year. Application,
(l) Final Termination Date means (ii) an individual who has before that time acquired a Subscriber’s rights
under the Plan pursuant to a decree, order or judgment of a
(i) where the Plan is not a Specified Plan, the last day of the 35th year
competent tribunal, or under a written agreement, relating to a division
following the Plan Commencement Year, and
of property between the individual and a Subscriber under the Plan in
(ii) where the Plan is a Specified Plan, the last day of the 40th year following settlement of rights arising out of, or on the breakdown of, their
the Plan Commencement Year. marriage or common-law partnership, or
(m) Government Grants mean: (iii) after the death of an individual described in any of (i) and (ii) above, any
all grants paid or payable under the Canada Education Savings Act (Canada) other person (including the estate of the deceased individual) who
and pursuant to section 12 of that Act or under Part III.1 of the Department acquires the individual’s right as a subscriber under the Plan or who
of Human Resources Development Act (Canada) as it read immediately before makes contributions into the Plan in respect of a Beneficiary,
the coming into force of the Canada Education Savings Act (Canada). but does not include an individual whose rights as a Subscriber under the
(n) Plan means the education savings plan established by the Application and Plan had, before that time, been acquired by an individual in the
this Plan Text. circumstances described in (ii) above.
(o) Plan Commencement Year means: Where 2 individuals are identified as Subscribers in the Application, each
(i) the year in which the Plan was originally entered into, or individual must be a spouse or common-law partner of the other. When
the context requires or permits, the singular “Subscriber” shall be read as
(ii) where an amount has been transferred to the Plan from another RESP,
if the plural “Subscribers” was used.
the earlier of the year in which the Plan was originally entered into and
the year in which the other RESP was established. (bb) Trustee means The Royal Trust Company or any replacement Trustee
appointed pursuant to section 16.
(p) Post-Secondary Educational Institution means (i) a Designated
Educational Institution in Canada, (ii) an educational institution in Canada
that is certified by the Minister of Human Resources and Social
2. AGREEMENT
The application of the Subscriber for a EDUCATORS FINANCIAL
Development to be an educational institution providing courses, other than GROUP INC. Education Savings Plan and this Plan Text constitute an
courses designed for university credit, that furnish a person with skills for, agreement between the Promoter, the Trustee and the Subscriber for an
or improve a person’s skills in, an occupation, or (iii) an educational education savings plan.
institution outside Canada that is a university, college or other educational
institutional that provides courses at a Post-Secondary School Level at 3. BENEFICIARY
which the Beneficiary was enrolled in a course of not less than 13 Any individual may be designated by the Subscriber in the Application as the
consecutive weeks. Beneficiary. A designation made after 2003 can only be made if:
(a) the individual’s social insurance number is provided to the Promoter before It is the sole responsibility of the Subscriber to select investments of the Plan
the designation and the individual is resident in Canada at the time of the and to determine whether any investment should be purchased, sold or retained
designation, or by the Plan. In the absence of any instructions from the Subscriber, the Promoter
(b) the designation is made in conjunction with a transfer of property into the may, in its sole discretion, cause the realization of sufficient investments to
Plan from another RESP under which the individual was a beneficiary permit the payment of any amounts required to be paid under the Plan.
immediately before the transfer and, except where the individual is not a The investment of the assets of the Plan shall not be limited in any way to
resident of Canada and was not assigned a social insurance number before investments authorized for trustees under, or to the criteria in planning or the
the designation is made, the individual’s social insurance number is provided requirements for diversifying the investment of the assets of the Plan as may be
to the Promoter before the designation. prescribed for trustees by, any applicable federal, provincial or territorial
At any time, subject to the conditions above, the Subscriber may designate a legislation.
replacement Beneficiary by delivering to the Promoter written notice of such It is the sole responsibility of the Subscriber to ensure that investments of the
designation in a form satisfactory to, and containing the information required by, Plan are and remain “qualified investments” for RESPs within the meaning of the
the Promoter. If more than one such replacement designation has been delivered Applicable Tax Legislation.
to the Promoter, the one bearing the latest date will govern.
8. CORPORATE ACTIONS
The Promoter and the Trustee will not have any duty or responsibility to vote,
4. NOTICE OF BENEFICIARY DESIGNATION
Within 90 days after a Beneficiary has been designated by the Subscriber, the subscribe, convert or tender the Assets of the Plan in respect of any merger,
Promoter shall notify the Beneficiary (or, where the Beneficiary is under 19 consolidation, reorganization, receivership, bankruptcy, insolvency proceedings,
years of age at the time of designation and either ordinarily resides with a parent
take-over bids, issuer bids, rights offerings or similar events with respect to the
or legal guardian of the Beneficiary or is maintained by a public primary caregiver
investments of the Plan, except in accordance with a direction from the
(as defined in the Applicable Tax Legislation) of the Beneficiary, that parent, legal
guardian or public primary caregiver) in writing of the existence of the Plan and Subscriber.
the name and address of the Subscriber. 9. REFUND OF PAYMENTS
At any time, the Subscriber may, in a written form satisfactory to the Promoter,
request a Refund of Payments, such amount not to exceed the value of the Assets
5. CONTRIBUTIONS
Contributions into the Plan do not include amounts paid into the Plan under the
Applicable Grant Legislation. of the Plan less the total amount of all Government Grants held in the Plan.
No contribution may be made to the Plan other than a contribution made by or Within 30 days of receipt of the written request by the Promoter (or such
on behalf of the Subscriber in respect of the Beneficiary or a contribution made shorter period as the Promoter may determine in its sole discretion), the
by way of transfer from another RESP, provided that either: Refund of Payments will be paid to the Subscriber or to the Beneficiary if so
directed by the Subscriber in writing.
(a) the Beneficiary is resident in Canada when the contribution is made and,
unless the Plan was entered into before 1999, the Beneficiary’s social Where there is more than one Subscriber at the time a Refund of Payments is
insurance number is provided to the Promoter before the contribution is requested, the Refund of Payments is deemed to be owed to both Subscribers
made, or jointly and may be paid either to both Subscribers or to either one of them, as
directed by the Subscribers. Absent such direction, the Refund of Payments will
(b) the contribution is made by way of transfer from another RESP under be paid to both Subscribers jointly.Any Refund of Payments made to one or both
which the Beneficiary was a beneficiary immediately before the transfer.
Subscribers, as the case may be, shall constitute a valid discharge to the
Notwithstanding the foregoing: Promoter and Trustee for the Refund of Payments paid.
(c) no contribution shall be less than the minimum contribution amount, if any,
established by the Promoter from time to time,
10. EDUCATIONAL ASSISTANCE AND OTHER PAYMENTS
Upon receipt of instructions from the Subscriber in a form satisfactory to the
(d) no contribution may be made to the Plan by or on behalf of the Subscriber Promoter, the Promoter shall cause the Trustee to pay out of the Assets of the
after the Final Contribution Date, and Plan, including any Government Grants held in the Plan subject to the provisions
of the Applicable Grant Legislation, such amount or amounts as the Subscriber
(e) a contribution by way of transfer from another RESP will not be permitted
directs:
if the other RESP has made an accumulated income payment.
(a) to or for the Beneficiary as an Educational Assistance Payment
The Subscriber is solely responsible for ensuring that the total amount of
contributions made in respect of the Beneficiary under the Plan and any other (i) provided either that the Beneficiary
RESPs does not exceed the RESP Lifetime Limit. A. is enrolled at a Post-Secondary Educational Institution as a student
in a Qualifying Educational Program, or
B. has attained the age of 16 years and is enrolled as a student in a
6. GOVERNMENT GRANTS
Where the Beneficiary is eligible for Government Grants under the Applicable
Grant Legislation, at the request of the Subscriber and upon completion and Specified Education Program; and
delivery of all forms required under the Applicable Grant Legislation and by the (ii) further provided either that the Beneficiary
Promoter, the Promoter will apply for Government Grants in respect of the A. has satisfied the condition set out in section 10(a)(i)A., and
Beneficiary. The Promoter and the Trustee are not responsible for determining a) has done so throughout at least 13 consecutive weeks in the
whether the Beneficiary is eligible for Government Grants.
12-month period that ends at that time, or
The Promoter will cause the Trustee to pay out of the Assets of the Plan any b) the total of the Educational Assistance Payment and all other
refund of Government Grants required under the Applicable Grant Legislation education assistance payments made under this Plan and any
and Applicable Tax Legislation. other RESP of the Promoter to or for the Beneficiary in the
12-month period that ends at that time does not exceed
$5,000 or any greater amount that the Minister designated
7. INVESTING
The Assets of the Plan will be invested in accordance with the Subscriber’s
instructions, in a form satisfactory to the Promoter, provided that any proposed for the purposes of the Canada Education Savings Act (Canada)
investment complies with the Promoter’s investment requirements, if any, approves in writing with respect to the Beneficiary, or
communicated to the Subscriber from time to time. The Promoter may, in its B. satisfies the condition set out in section 10(a)(i)B. and the total of
sole discretion, retain a portion of the Assets of the Plan in cash for the the payment and all other educational assistance payments made
administration of the Plan. If the Plan has a cash deficit, as determined by the under a RESP of the Promoter to or for the Beneficiary in the 13-
Promoter in its sole discretion, the Promoter may cause the realization of week period that ends at that time does not exceed $2,500 or any
investments in the Plan, at the Promoter’s choosing, to cover such cash deficit greater amount that the Minister designated for the purpose of
including for the purposes of paying expenses, taxes, fees and other amounts the Canada Education Savings Act (Canada) approves in writing with
including for greater certainty, fees and other amounts payable under section 13. respect to the Beneficiary.
Any uninvested cash will be placed on deposit with the Trustee or an affiliate of Notwithstanding the above, an Educational Assistance Payment may be paid
the Trustee.The interest payable to the Plan in respect of such cash balances will at any time in the six-month period immediately following the time at which
be determined by the Promoter from time to time in its sole discretion with no the Beneficiary ceases to be enrolled as a student in the Qualifying
obligation to pay a minimum amount or rate.The Trustee will pay interest to the Educational Program or the Specified Educational Program if the
Promoter for inclusion in the Plan and the Promoter shall credit the Assets of Educational Assistance Payment would have complied with the above
the Plan with appropriate interest. The Trustee shall have no responsibility to requirements had it been made immediately before that time.
ensure the interest is included in the Assets of the Plan by the Promoter and will
not be liable if such inclusion is not made. The Trustee will cause all or a portion of each Educational Assistance
Payment to be paid from any Government Grants held in the Plan as
Any segregated fund investments will be held in nominee name. The Promoter permitted by and pursuant to the terms of the Applicable Grant Legislation.
and Subscriber shall designate the Trustee as the beneficiary under any
segregated fund held under the Plan. Upon the death of the Subscriber, the The Promoter will determine whether the conditions for paying an
proceeds of the segregated fund shall be paid to the Plan and form part of the Educational Assistance Payment have been satisfied and such determination
Assets of the Plan to be dealt with according to the terms of this Plan Text. shall be final and binding on the Subscriber and Beneficiary;
(b) to, or to a trust in favour of, a Designated Educational Institution in Canada; 14. APPOINTMENT AND RESPONSIBILITIES OF TRUSTEE
(c) to another RESP so long as no Accumulated Income Payment has been paid The Trustee agrees to act as trustee of the Assets of the Plan and shall, subject
under section 10(d); or to the payment of fees and charges pursuant to section 13, irrevocably hold,
(d) as an Accumulated Income Payment provided that: invest and reinvest the Assets of the Plan for the following purposes:
(i) the payment is made to, or on behalf of, a Subscriber who is resident (a) the payment of Educational Assistance Payments,
in Canada for tax purposes when the payment is made, (b) the payment of Accumulated Income Payments,
(ii) the payment is not made jointly to, or on behalf of, more than one (c) the Refund of Payments,
Subscriber, and (d) the repayment of amounts (and the payment of amounts related to that
(iii) any of repayment) under the Canada Education Savings Act (Canada) or under a
A. the payment is made after the 9th year that follows the Plan Designated Provincial Program
Commencement Year and each individual (other than a deceased (e) the payment to, or to a trust in favour of, Designated Educational
individual) who is or was a Beneficiary has attained 21 years of age Institutions in Canada, or
before the payment is made and is not, when the payment is made,
eligible under the Plan to receive an Educational Assistance (f) the payment to a trust that irrevocably holds property pursuant to a
Payment, registered education savings plan for any of the purposes set out in (a) to
(e) above.
B. the payment is made in the 35th year following the Plan
Commencement Year where the Plan is not a Specified Plan, The Trustee shall file all information returns and other documents in respect of
C. the payment is made in the 40th year following the Plan the Plan as required under the Applicable Tax Legislation and the Applicable
Commencement Year where the Plan is a Specified Plan, or Grant Legislation.
D. each individual who was a Beneficiary is deceased when the
payment is made.
15. SELF-DEALING
The Trustee’s services are not exclusive and, subject to the limitations otherwise
At the Subscriber’s request and on receipt of the requisite supporting provided in these terms and conditions on the powers of the Trustee, the
documentation, where the Beneficiary suffers from a severe and prolonged Trustee may, for any purpose, and is hereby expressly authorized from time to
mental impairment that prevents, or can reasonably be expected to prevent, the time in its sole discretion to, appoint, employ, invest in, contract or deal with any
Beneficiary from enrolling in a Qualifying Educational Program at a Post- individual, firm, partnership, association, trust or body corporate, with which it
Secondary Educational Institution, the Promoter will apply to the Minister of may be directly or indirectly interested or affiliated with, whether on its own
National Revenue for permission to waive the condition in section 10(d)(iii)(A) account or on the account of another (in a fiduciary capacity or otherwise), and
for making Accumulated Income Payments. to profit therefrom, without being liable to account therefor and without being
in breach of these terms and conditions.
Where there is more than one Subscriber at the time an Accumulated Income
Payment is requested, the payment shall be made to the Subscriber who requested
it. Any such payment made to either one of the Subscribers, as requested, shall
16. REPLACING THE TRUSTEE
The Trustee may resign as trustee of the Plan by providing written notice of such
constitute a valid discharge to the Promoter and Trustee for the payment made. resignation within the notice period agreed upon by the Promoter and the
Trustee in writing.The Trustee will resign upon receiving 90 days’ written notice
from the Promoter so long as it is satisfied that the proposed replacement
11. TERMINATION
The Plan will be terminated on the earliest of the following dates:
Trustee will properly assume and fulfill the Trustee’s duties and liabilities
(a) the date indicated by the Subscriber in the Application or such other date hereunder.
designated by the Subscriber by written instrument satisfactory to the
Promoter. (If more than one such instrument has been delivered to the Upon receiving notice of resignation from the Trustee, or upon providing notice
Promoter, the one bearing the latest date will govern.), to the Trustee to resign, the Promoter shall forthwith select a replacement
(b) the last day of February in the year following the year in which the first Trustee. If the Promoter fails to nominate a replacement Trustee within 30 days
Accumulated Income Payment is made from the Plan, after receipt of the notice of resignation or providing the notice to the Trustee
(c) the date the registration of the Plan as a RESP is revoked by the Minister of to resign, the Trustee shall be entitled to appoint a replacement Trustee. The
National Revenue, and resignation of the Trustee will not be effective until the replacement Trustee has
been appointed and until notice of the replacement has been provided by the
(d) the Final Termination Date. Promoter to the Minister of Human Resources and Social Development.
Where any Assets of the Plan remain on or immediately before the termination of
Upon the appointment of a replacement Trustee, the replacement Trustee shall,
the Plan, the Promoter shall cause the Trustee to pay from the Assets of the Plan:
without further act or formality, be and become the Trustee hereunder and,
(e) any fees or charges that remain unpaid, without any conveyance or transfer, be vested with the same power, rights,
(f) a Refund of Payments to the Subscriber in the amount that would be duties and responsibilities as the Trustee and with the Assets of the Plan as if the
permitted under section 9, replacement Trustee had been the original Trustee.The Trustee shall execute and
(g) a repayment of any Government Grants as required under the Applicable deliver to the replacement Trustee all such conveyances, transfers and further
Grant Legislation, and assurances as may be necessary or advisable to give effect to the appointment
(h) any amount remaining in the Plan after the payments described in (e), (f) and of the replacement Trustee.
(g) above, to the Designated Educational Institution in Canada designated by Any replacement Trustee must be a corporation resident in Canada that is
the Subscriber or, where such designation has not been made, chosen by licensed or otherwise authorized under the laws of Canada or a province
the Promoter. to carry on in Canada the business of offering to the public its services as a
12. DESIGNATED EDUCATIONAL INSTITUTION IN CANADA trustee.
The Subscriber shall designate a Designated Education Institution in Canada in Any trust company resulting from the merger or amalgamation of the Trustee
the Application. At any time, the Subscriber may change the Designated with one or more trust companies and any trust company that succeeds to
Educational Institution in Canada by delivering to the Promoter written notice substantially all of the trust business of the Trustee will become the replacement
of such change in a form satisfactory to, and containing the information required Trustee without further act or formality, subject to prior notice being provided
by, the Promoter. If more than one such notice has been delivered to the to the Minister of Human Resources and Social Development.
Promoter, the one bearing the latest date will govern.
The Promoter shall give notice of the replacement of the Trustee to the
13. FEES AND CHARGES Subscriber and the Minister of National Revenue.
Subject to any limitations in the Applicable Grant Legislation, the Promoter and
the Trustee shall be entitled to such reasonable fees and charges as may be
17. RESPONSIBILITIES OF THE PROMOTER
established from time to time for their services under the Plan and to The Promoter has ultimate responsibility for the Plan, including the
reimbursement for all costs and disbursements (including all taxes) reasonably administration of the Plan in accordance with these terms and conditions. The
incurred in the performance of their duties hereunder including brokerage fees, Promoter will apply for the registration of the Plan as a RESP in accordance with
commissions and other expenses incurred in the making of any investment.The the Applicable Tax Legislation.
Promoter and the Trustee are entitled to change the amount of such fees or The Promoter shall file all information returns and other documents in respect
charges in the future, upon reasonable notice to the Subscriber. Unless paid of the Plan as required under the Applicable Tax Legislation and the Applicable
directly to the Promoter and Trustee, all amounts payable pursuant to this Grant Legislation.
section (together with any applicable taxes) shall be charged against, and
deducted from, the Assets of the Plan (excluding any Government Grants) in
such manner as the Promoter and the Trustee determine and the Promoter may,
18. STATEMENTS AND RECORDS
The Promoter will maintain an account for the Plan in which will be recorded:
in its sole discretion, cause the realization of investments held in the Plan, at the
Promoter’s choosing, for the purpose of paying such fees and other amounts. (a) contributions to the Plan by or on behalf of the Subscriber,
(b) investments, investment transactions and investment income, gains and losses,
The Subscriber authorizes both the Promoter and theTrustee,together or separately,
to appoint and employ agents to who both may delegate, respectively any of the (c) Educational Assistance Payments,
Promoter’s and the Trustee’s powers, duties and responsibilities under the Plan. (d) amounts transferred to another RESP,
(e) Government Grants repayments, Subscriber or required by law or regulatory policy, and as otherwise required
(f) amounts paid to Designated Educational Institutions in Canada, under the Applicable Tax Legislation, the Applicable Grant Legislation or other
law.The Subscriber also consents to the Parties:
(g) the Refund of Payments available to be made to the Subscriber and Refunds
of Payments already made, (a) disclosing Information to anyone who works with or for them as needed to
(h) the amount of fees and other charges payable by the Plan, administer the Plan or as required by law or regulatory policies, and
(i) Accumulated Income Payments, and (b) using and disclosing the Subscriber’s and the Beneficiary’s social insurance
(j) the balance of any Government Grants held in the Plan and any other number as required by law, including for any purposes under the Applicable
information required under an agreement between the Promoter and the Tax Legislation.
Department of Human Resources and Social Development Canada If the Subscriber provides personal information about a third party (such as his
respecting Government Grants. or her spouse or the Beneficiary), the Subscriber shall have first obtained
appropriate consent from such third party to the collection, use and disclosure
An annual (or more frequent at the sole discretion of the Promoter) statement
of his or her personal information by the Parties in the course of the
will be sent to the Subscriber showing the transactions affecting the Plan for the
administration of the Plan and for the purpose for which it was provided by any
preceding year.
Party.
19. REPLACING THE PROMOTER The Parties may keep Information in their records for as long as needed for the
Provided the written consent of the Trustee has been obtained, such consent not purposes described above and as required by law. The Subscriber agrees that a
to be unreasonably withheld, at any time, the Promoter may assign its rights and file of Information will be established and maintained for each Plan participant
obligations under the Plan to any other corporation resident in Canada that is and that only employees of the Parties who need to have access to the file in
authorized to assume and discharge the obligations of the Promoter under the performing their duties shall have access. The Subscriber may access his or her
Plan so long as prior notice has been provided by the Promoter to the Minister file and request rectification of any personal information therein that may be
of Human Resources and Social Development. Any such assignee shall execute obsolete or incorrect by sending such request, in writing, to the Promoter.
any agreements and other documents that are necessary for the purpose of
assuming such rights and obligations. 25. DATE OF BIRTH AND RESIDENCY
The Subscriber’s statement of the Beneficiary’s date of birth on the Application
The successor Promoter shall give notice of the replacement of the Promoter or a written designation shall be deemed to be a certification of the Beneficiary’s
to the Subscriber and the Minister of National Revenue. age and an undertaking by the Subscriber to provide any further evidence of
20. LIMITATION OF LIABILITY OF TRUSTEE AND PROMOTER proof of age as may be required by the Promoter.
The Promoter and the Trustee shall not be liable for any loss or damage suffered The Trustee and Promoter shall be entitled to rely upon the Promoter’s records
or incurred by the Plan, a Subscriber or the Beneficiary as a result of the as to the current address of the Beneficiary and the Subscriber as establishing
purchase, sale or retention of any investment including any loss resulting from his or her respective residency and domicile for the operation of the Plan and
the Promoter or the Trustee acting on the direction of an agent appointed by a any payments from it, subject to the receipt of any written notice to the
Subscriber to provide investment direction. contrary respecting a change in residency or domicile prior to such payment
The Promoter and the Trustee shall not be liable in their personal capacity for being made.
any tax, interest or penalty which may be imposed on the Trustee in respect of
the Plan under Applicable Tax Laws, as a result of payments out of the Plan or
26. SUBSCRIBER DEATH
The Promoter and the Trustee are each authorized as each determines advisable
the purchase, sale or retention of any investment (including any investment that in its sole discretion to release any information about the Plan after the
is not a “qualified investment” within the meaning of the Applicable Tax Subscriber’s death to either the Subscriber’s Estate Representative or the
Legislation). Beneficiary, or both. If the Beneficiary is a minor at the time of his or her death,
The Subscriber will at all times indemnify the Promoter and the Trustee and save such information may be released to his or her custodial parent, legal guardian
the Promoter and the Trustee harmless in respect of any Government Grant or Public Primary Caregiver.
repayments required to be made or taxes which may be imposed on the Where a Subscriber dies at a time when there are two Subscribers:
Promoter or the Trustee as a result of the acquisition, retention or transfer of
(a) if the Plan was opened outside of the Province of Quebec, the survivor shall
any investments or as a result of payments or distributions out of the Plan made assume all rights, privileges and obligations of the deceased Subscriber and
in accordance with these terms and conditions or as a result of the Promoter the heirs, successors, assigns and legal representatives of the deceased
or the Trustee acting or declining to act upon any instructions given to the Subscriber shall have no rights under the Plan; or
Promoter or the Trustee, whether by the Subscriber or any agent appointed by
the Subscriber to provide investment direction. (b) if the Plan was opened in the Province of Quebec, the Civil Code of Quebec
and other applicable laws will apply.
21. AMENDMENTS TO THE PLAN
The Trustee or Promoter may change the terms of this Plan Text periodically.The
27. PAYMENT INTO COURT
Subscriber will be provided with notice of any such changes. No change to these If there is a dispute about who is legally authorized to direct and receive
terms and conditions shall have the effect of disqualifying the Plan as a RESP or payments from the Plan after the death of the Subscriber, the Promoter and the
disqualifying the Beneficiary as a recipient of Government Grants under the Trustee are entitled to either apply to the court for directions or to pay all or
Applicable Grant Legislation and any change may be retroactive. a portion of the Assets of the Plan into court and, in either case, fully recover
any legal costs incurred in this regard as a cost or disbursement in respect of
22. NOTICE the Plan.The Promoter and the Trustee will not be liable for any penalty, or any
Any notice given by the Subscriber to the Promoter or Trustee shall be loss or damage resulting from the repayment of Government Grants as required
sufficiently given if delivered to the office of the Promoter where the Plan is under the Applicable Grant Legislation, that may occur as a result of any such
administered or, if mailed, postage prepaid, addressed to the Promoter at such payment of Assets of the Plan into court.
office and shall be deemed to have been given on the date such notice is
delivered or received by the Promoter.
28. HEIRS, REPRESENTATIVES AND ASSIGNS
These terms and conditions shall be binding upon the heirs, Estate
Any notice, statement or receipt to be given by the Promoter to the Subscriber Representatives, attorneys, committees, guardians of property, other legal and
shall be sufficiently given if delivered personally to the Subscriber or, if mailed, personal representatives and assigns of the Subscriber and upon the respective
postage prepaid, addressed to the Subscriber at the address set out in the successors and assigns of the Trustee and the Promoter and their directors,
Application unless the Subscriber or, where applicable, the Subscriber’s Estate officers, employees and agents, as well as their respective estates, Estate
Representative or personal representative has notified the Promoter of a new Representatives, heirs, attorneys, committees, guardians of property, other legal
address. Any such notice, statement or receipt shall be deemed to have been and personal representatives and assigns.
given at the time of personal delivery to the Subscriber or, if mailed, on the third
day after mailing. 29. LANGUAGE
The parties hereto have requested that all documents relating to the Plan be in
23. SUBSCRIBER INSTRUCTIONS English. Les parties ont demandé que tout document se rapportant au régime
All directions, instructions, designations and other information to be provided soit en anglais.
under the Plan by the Subscriber must be in a form acceptable to the Promoter
and the Trustee. 30. GOVERNING LAW
The Plan shall be governed by and construed in accordance with the laws of the
24. PRIVACY Province of Ontario and the laws of Canada applicable therein.
The Subscriber hereby consents and agrees to allow the Promoter and the
Trustee, and their agents and service providers, (the “Parties”) to collect The Subscriber expressly agrees that any action arising out of or relating to the
personal information about the Subscriber and the Beneficiary (including Plan shall be filed only in a court located in Canada and the Subscriber
personal information provided in any forms required for the purposes of the irrevocably consents and submits to the jurisdiction of such court for the
Plan and/or Government Grants) (“Information”) and to use such Information purposes of litigating any such action.
to administer the Plan, to provide services to the Subscriber as requested by the (08/2008)
EDUCATORS FINANCIAL GROUP INC., EDUCATION SAVINGS PLAN
PLAN TEXT, FAMILY PLAN
(s) Public Primary Caregiver of a beneficiary under an education savings
plan in respect of whom a special allowance is payable under the Children’s
1. DEFINED TERMS
(a) Accumulated Income Payment means any amount paid out of the Plan,
other than a payment described in any of sections 14(a) and 14(c) to 14(f), Special Allowances Act, means the department, agency or institution that
to the extent that the amount so paid exceeds the fair market value of any maintains the beneficiary or the public trustee or public curator of the
consideration given to the Plan for the payment of the amount. province in which the beneficiary resides.
(b) Applicable Grant Legislation means: (t) Qualifying Educational Program means a program at a Post-Secondary
the Canada Education Savings Act (Canada) and any regulations thereunder, School Level of not less than 3 consecutive weeks duration that requires
as may be amended from time to time. that each student taking the program spend not less than 10 hours per
week on courses or work in the program.
(c) Applicable Tax Legislation means the Income Tax Act (Canada), the
regulations thereunder and any applicable provincial income tax legislation (u) Refund of Payments means
relating to education savings plans, all as may be amended from time to time. (i) a refund of a contribution if the contribution was made otherwise than
by way of a transfer from another RESP or
(d) Application means the Subscriber’s application for a EDUCATORS
FINANCIAL GROUP INC. Education Savings Plan. (ii) a refund of an amount that was paid into the Plan by way of a transfer
from another RESP where the amount would have been a refund of
(e) Assets of the Plan means all amounts contributed to the Plan (including payments under the other RESP if it had been paid directly to a
transfers to the Plan from another RESP), all Government Grants received subscriber under the other RESP
by the Plan and all earnings and gains derived from investments, net of any
losses and fees, charges and disbursements payable pursuant to section 13 (v) RESP means a “registered education savings plan” as defined in the
and any other payments from the Plan, and includes all investments and Applicable Tax Legislation.
uninvested cash held from time to time by the Trustee in accordance with (w) RESP Lifetime Limit means the “RESP lifetime limit” as defined in the
the Plan. Applicable Tax Legislation.
(f) Beneficiary means an individual, and Beneficiaries means the individuals, (x) RRSP means a registered retirement savings plan as defined in the
designated by the Subscriber in accordance with section 3, to whom or on Applicable Tax Legislation.
whose behalf an Educational Assistance Payment will be paid if the individual
(y) Specified Educational Program means a program at a Post-Secondary
qualifies under the Plan.
School Level of not less than three consecutive weeks duration that requires each
(g) Designated Educational Institution in Canada means an educational
institution in Canada that is a university, college or other educational
student taking the program to spend not less than 12 hours per month on courses
institution designated by the Lieutenant Governor in Council of a province
in the program.
(z) Subscriber, at any time, means:
as a specified educational institution under the Canada Student Loans Act,
designated by an appropriate authority under the Canada Student Financial (i) each individual (other than a trust) identified as a Subscriber in the
Assistance Act, or designated by the Minister of Education of the Province of Application,
Quebec for the purpose of An Act respecting financial assistance for education (ii) an individual who has before that time acquired a Subscriber’s rights
expenses, R.S.Q., c. A-13.3. under the Plan pursuant to a decree, order or judgment of a
competent tribunal, or under a written agreement, relating to a division
(h) Designated Provincial Program means a program administered pursuant
of property between the individual and a Subscriber under the Plan in
settlement of rights arising out of, or on the breakdown of, their
Act (Canada) or a program designated under the Applicable Tax Legislation.
to an agreement entered into under section 12 of the Canada Education Savings
marriage or common-law partnership, or
(i) Educational Assistance Payment means any amount, other than a (iii) after the death of an individual described in any of (i) and (ii) above, any
Refund of Payments, paid out of the Plan in accordance with section 10(a) other person (including the estate of the deceased individual) who
to or for the Beneficiary to assist the Beneficiary to further his or her acquires the individual’s right as a subscriber under the Plan or who
education at a Post-Secondary School Level. makes contributions into the Plan in respect of a Beneficiary,
(j) Estate Representative means an executor, an administrator, an but does not include an individual whose rights as a Subscriber under the
administrator with the will annexed, a liquidator or an estate trustee with Plan had, before that time, been acquired by an individual in the
a will or without a will, whether one or more than one is appointed. circumstances described in (ii) above.
(k) Final Contribution Date means the last day of the 31st year following the Where 2 individuals are identified as Subscribers in the Application, each
Plan Commencement Year. individual must be a spouse or common-law partner of the other. When
(l) Final Termination Date means the last day of the 35th year following the the context requires or permits, the singular “Subscriber” shall be read as
Plan Commencement Year. if the plural “Subscribers” was used.
(m) Government Grants mean : (aa) Trustee means The Royal Trust Company or any replacement Trustee
all grants paid or payable under the Canada Education Savings Act (Canada) appointed pursuant to section 16.
and pursuant to section 12 of that Act or under Part III.1 of the Department
of Human Resources Development Act (Canada) as it read immediately before
2. AGREEMENT
The application of the Subscriber for a EDUCATORS FINANCIAL
the coming into force of the Canada Education Savings Act (Canada). GROUP INC. Education Savings Plan and this Plan Text constitute an
(n) Plan means the education savings plan established by the Application and agreement between the Promoter, the Trustee and the Subscriber for an
this Plan Text. education savings plan.
(o) Plan Commencement Year means: 3. BENEFICIARY
(i) the year in which the Plan was originally entered into, or The Subscriber can designate one or more individuals as Beneficiaries of the
(ii) where an amount has been transferred to the Plan from another RESP, Plan provided that each such individual is connected to each living Subscriber, or
the earlier of the year in which the Plan was originally entered into and was connected to a deceased original Subscriber, by blood relationship or
the year in which the other RESP was established. adoption (as defined in the Applicable Tax Legislation) and provided that a
designation in respect of a particular individual can only be made if:
(p) Post-Secondary Educational Institution means (i) a Designated (a) the individual is under 21 years of age at the time of designation, or
Educational Institution in Canada, (ii) an educational institution in Canada
that is certified by the Minister of Human Resources and Social (b) the individual was, immediately before the time of designation, a beneficiary
Development to be an educational institution providing courses, other than under another RESP that allows more than one beneficiary at any one time.
courses designed for university credit, that furnish a person with skills for, or In addition, a designation made after 2003 of a particular individual can only be
improve a person’s skills in, an occupation, or (iii) an educational institution made if:
outside Canada that is a university, college or other educational institutional (c) the individual’s social insurance number is provided to the Promoter before
that provides courses at a Post-Secondary School Level at which a the designation and the individual is resident in Canada at the time of the
Beneficiary was enrolled in a course of not less than 13 consecutive weeks. designation, or
(q) Post-Secondary School Level includes a program of courses at an (d) the designation is made in conjunction with a transfer of property into the
educational institution in Canada that is certified by the Minister of Human Plan from another RESP under which the individual was a beneficiary
Resources and Social Development to be an educational institution immediately before the transfer and, except where the individual is not a
providing courses other than courses designed for university credit of a resident of Canada and was not assigned a social insurance number before
technical or vocational nature designed to furnish the person with skills for the designation is made, the individual’s social insurance number is provided
or improve a person’s skill in an occupation. to the Promoter before the designation.
(r) Promoter means EDUCATORS FINANCIAL GROUP INC. or any At any time, subject to the conditions above, the Subscriber may designate another
successor Promoter under section 19. individual to replace a Beneficiary by delivering to the Promoter written notice of
such designation in a form satisfactory to, and containing the information required The investment of the assets of the Plan shall not be limited in any way to
by, the Promoter. If more than one such replacement designation has been investments authorized for trustees under, or to the criteria in planning or the
delivered to the Promoter, the one bearing the latest date will govern. requirements for diversifying the investment of the assets of the Plan as may be
prescribed for trustees by, any applicable federal, provincial or territorial
legislation.
4. NOTICE OF BENEFICIARY DESIGNATION
Within 90 days after a Beneficiary has been designated by the Subscriber, the
Promoter shall notify the Beneficiary (or, where the Beneficiary is under 19 It is the sole responsibility of the Subscriber to ensure that investments of the
years of age at the time of designation and either ordinarily resides with a parent Plan are and remain “qualified investments” for RESPs within the meaning of the
or legal guardian of the Beneficiary or is maintained by a public primary caregiver Applicable Tax Legislation.
(as defined in the Applicable Tax Legislation) of the Beneficiary, that parent, legal
guardian or public primary caregiver) in writing of the existence of the Plan and
8. CORPORATE ACTIONS
The Promoter and the Trustee will not have any duty or responsibility to vote,
the name and address of the Subscriber.
subscribe, convert or tender the Assets of the Plan in respect of any merger,
5. CONTRIBUTIONS consolidation, reorganization, receivership, bankruptcy, insolvency proceedings,
Contributions into the Plan do not include amounts paid into the Plan under the take-over bids, issuer bids, rights offerings or similar events with respect to the
Applicable Grant Legislation. investments of the Plan, except in accordance with a direction from the
Subscriber.
No contribution may be made to the Plan other than a contribution made by or
on behalf of the Subscriber in respect of a Beneficiary or a contribution made 9. REFUND OF PAYMENTS
by way of transfer from another RESP, provided that either: At any time, the Subscriber may, in a written form satisfactory to the Promoter,
(a) the Beneficiary is resident in Canada when the contribution is made and, request a Refund of Payments, such amount not to exceed the value of the Assets
unless the Plan was entered into before 1999, the Beneficiary’s social of the Plan less the total amount of all Government Grants held in the Plan.
insurance number is provided to the Promoter before the contribution is Within 30 days of receipt of the written request by the Promoter (or such
made, or shorter period as the Promoter may determine in its sole discretion), the
(b) the contribution is made by way of transfer from another RESP under Refund of Payments will be paid to the Subscriber or to the Beneficiary if so
which the Beneficiary was a beneficiary immediately before the transfer. directed by the Subscriber in writing.
Notwithstanding the foregoing: Where there is more than one Subscriber at the time a Refund of Payments is
(c) a contribution in respect of a Beneficiary can only be made if: requested, the Refund of Payments is deemed to be owed to both Subscribers
(i) the Beneficiary is under 31 years of age at the time of the contribution, jointly and may be paid either to both Subscribers or to either one of them, as
or directed by the Subscribers. Absent such direction, the Refund of Payments will
be paid to both Subscribers jointly. Any such Refund of Payments made to one
(ii) the contribution is made by way of transfer from another RESP that
or both Subscribers, as the case may be, shall constitute a valid discharge to the
allows more than one beneficiary at any one time,
Promoter and Trustee for the Refund of Payments paid.
(d) no contribution shall be less than the minimum contribution amount, if any,
established by the Promoter from time to time, 10. EDUCATIONAL ASSISTANCE AND OTHER PAYMENTS
(e) no contribution may be made to the Plan by or on behalf of the Subscriber Upon receipt of instructions from the Subscriber in a form satisfactory to the
after the Final Contribution Date, and Promoter, the Promoter shall cause the Trustee to pay out of the Assets of the
Plan, including any Government Grants held in the Plan subject to the provisions
(f) a contribution by way of transfer from another RESP will not be permitted
of the Applicable Grant Legislation, such amount or amounts as the Subscriber
if the other RESP has made an accumulated income payment.
directs:
The Subscriber is solely responsible for ensuring that the total amount of (a) to or for a Beneficiary as an Educational Assistance Payment
contributions made in respect of each Beneficiary under the Plan and any other
(i) provided either that the Beneficiary
RESPs does not exceed the RESP Lifetime Limit.
A. is enrolled at a Post-Secondary Educational Institution as a student
6. GOVERNMENT GRANTS in a Qualifying Educational Program, or
Where a Beneficiary is eligible for Government Grants under the Applicable B. has attained the age of 16 years and is enrolled as a student in a
Grant Legislation, at the request of the Subscriber and upon completion and Specified Education Program; and
delivery of all forms required under the Applicable Grant Legislation and by the
Promoter, the Promoter will apply for Government Grants in respect of the (ii) further provided either that the Beneficiary
Beneficiary. The Promoter and the Trustee are not responsible for determining A. has satisfied the condition set out in section 10(a)(i)A., and
whether the Beneficiary is eligible for Government Grants. a) has done so throughout at least 13 consecutive weeks in the
The Promoter will cause the Trustee to pay out of the Assets of the Plan any 12-month period that ends at that time, or
refund of Government Grants required under the Applicable Grant Legislation b) the total of the Educational Assistance Payment and all other
and Applicable Tax Legislation. education assistance payments made under this Plan and any
other RESP of the Promoter to or for the Beneficiary in the
7. INVESTING 12-month period that ends at that time does not exceed
The Assets of the Plan will be invested in accordance with the Subscriber’s $5,000 or any greater amount that the Minister designated
instructions, in a form satisfactory to the Promoter, provided that any proposed for the purposes of the Canada Education Savings Act
investment complies with the Promoter’s investment requirements, if any, (Canada) approves in writing with respect to the Beneficiary,
communicated to the Subscriber from time to time. The Promoter may, in its or
sole discretion, retain a portion of the Assets of the Plan in cash for the B. satisfies the condition set out in section 10(a)(i)B. and the total
administration of the Plan. If the Plan has a cash deficit, as determined by the of the payment and all other educational assistance payments
Promoter in its sole discretion, the Promoter may cause the realization of made under a RESP of the Promoter to or for the Beneficiary in
investments in the Plan, at the Promoter’s choosing, to cover such cash deficit the 13-week period that ends at that time does not exceed $2,500
including for the purposes of paying expenses, taxes, fees and other amounts or any greater amount that the Minister designated for the
including for greater certainty, fees and other amounts payable under section 13. purpose of the Canada Education Savings Act (Canada) approves
Any uninvested cash will be placed on deposit with the Trustee or an affiliate of in writing with respect to the Beneficiary.
the Trustee.The interest payable to the Plan in respect of such cash balances will Notwithstanding the above, an Educational Assistance Payment may be paid
be determined by the Promoter from time to time in its sole discretion with no at any time in the six-month period immediately following the time at which
obligation to pay a minimum amount or rate.The Trustee will pay interest to the
the Beneficiary ceases to be enrolled as a student in the Qualifying
Promoter for inclusion in the Plan and the Promoter shall credit the Assets of
Educational Program or the Specified Educational Program if the
the Plan with appropriate interest. The Trustee shall have no responsibility to
Educational Assistance Payment would have complied with the above
ensure the interest is included in the Assets of the Plan by the Promoter and will
requirements had it been made immediately before that time.
not be liable if such inclusion is not made.
The Trustee will cause all or a portion of each Educational
Any segregated fund investments will be held in nominee name. The Promoter
Assistance Payment to be paid from any Government Grants held in the
and Subscriber shall designate the Trustee as the beneficiary under any
Plan as permitted by and pursuant to the terms of the Applicable
segregated fund held under the Plan. Upon the death of the Subscriber, the
Grant Legislation.
proceeds of the segregated fund shall be paid to the Plan and form part of the
Assets of the Plan to be dealt with according to the terms of this Plan Text. The Promoter will determine whether the conditions for paying an
Educational Assistance Payment have been satisfied and such determination
It is the sole responsibility of the Subscriber to select investments of the Plan
shall be final and binding on the Subscriber and Beneficiary;
and to determine whether any investment should be purchased, sold or retained
by the Plan. In the absence of any instructions from the Subscriber, the Promoter (b) to, or to a trust in favour of, a Designated Educational Institution in Canada;
may, in its sole discretion, cause the realization of sufficient investments to (c) to another RESP so long as no Accumulated Income Payment has been paid
permit the payment of any amounts required to be paid under the Plan. under section 10(d); or
(d) as an Accumulated Income Payment provided that: 14. APPOINTMENT AND RESPONSIBILITIES OF TRUSTEE
(i) the payment is made to, or on behalf of, a Subscriber who is resident The Trustee agrees to act as trustee of the Assets of the Plan and shall, subject
in Canada for tax purposes when the payment is made, to the payment of fees and charges pursuant to section 13, irrevocably hold,
(ii) the payment is not made jointly to, or on behalf of, more than one invest and reinvest the Assets of the Plan for the following purposes:
Subscriber, and (a) the payment of Educational Assistance Payments,
(iii) any of (b) the payment of Accumulated Income Payments,
A. the payment is made after the 9th year that follows the year of the (c) the Refund of Payments,
Plan Commencement Year and each individual (other than a (d) the repayment of amounts (and the payment of amounts related to that
deceased individual) who is or was a Beneficiary has attained repayment) under the Canada Education Savings Act (Canada) or under a
21 years of age before the payment is made and is not, when the Designated Provincial Program
payment is made, eligible under the Plan to receive an Educational (e) the payment to, or to a trust in favour of, Designated Educational
Assistance Payment, Institutions in Canada, or
B. the payment is made in the 35th year following the Plan (f) the payment to a trust that irrevocably holds property pursuant to a
Commencement Year, or registered education savings plan for any of the purposes set out in (a) to
C. each individual who was a Beneficiary is deceased when the (e) above.
payment is made. The Trustee shall file all information returns and other documents in respect of
At the Subscriber’s request and on receipt of the requisite supporting the Plan as required under the Applicable Tax Legislation and the Applicable
documentation, where a Beneficiary suffers from a severe and prolonged Grant Legislation.
mental impairment that prevents, or can reasonably be expected to prevent,
the Beneficiary from enrolling in a Qualifying Educational Program at a Post-
15. SELF-DEALING
The Trustee’s services are not exclusive and, subject to the limitations otherwise
Secondary Educational Institution, the Promoter will apply to the Minister
provided in these terms and conditions on the powers of the Trustee, the
of National Revenue for permission to waive the condition in section
Trustee may, for any purpose, and is hereby expressly authorized from time to
10(d)(iii)(A) for making Accumulated Income Payments. time in its sole discretion to, appoint, employ, invest in, contract or deal with any
Where there is more than one Subscriber at the time an Accumulated Income individual, firm, partnership, association, trust or body corporate, with which it
Payment is requested, the payment shall be made to the Subscriber who may be directly or indirectly interested or affiliated with, whether on its own
requested it. Any such payment made to either one of the Subscribers, as account or on the account of another (in a fiduciary capacity or otherwise), and
requested, shall constitute a valid discharge to the Promoter and Trustee for the to profit therefrom, without being liable to account therefor and without being
payment made. in breach of these terms and conditions.
11. TERMINATION 16. REPLACING THE TRUSTEE
The Plan will be terminated on the earliest of the following dates: The Trustee may resign as trustee of the Plan by providing written notice of such
(a) the date indicated by the Subscriber in the Application or such other date resignation within the notice period agreed upon by the Promoter and the
designated by the Subscriber by written instrument satisfactory to the Trustee in writing.The Trustee will resign upon receiving 90 days’ written notice
Promoter. (If more than one such instrument has been delivered to the from the Promoter so long as it is satisfied that the proposed replacement
Trustee will properly assume and fulfill the Trustee’s duties and liabilities
Promoter, the one bearing the latest date will govern.),
hereunder.
(b) the last day of February in the year following the year in which the first
Accumulated Income Payment is made from the Plan, Upon receiving notice of resignation from the Trustee, or upon providing notice
to the Trustee to resign, the Promoter shall forthwith select a replacement
(c) the date the registration of the Plan as a RESP is revoked by the Minister of Trustee. If the Promoter fails to nominate a replacement Trustee within 30 days
National Revenue, and after receipt of the notice of resignation or providing the notice to the Trustee
(d) the Final Termination Date. to resign, the Trustee shall be entitled to appoint a replacement Trustee. The
Where any Assets of the Plan remain on or immediately before the termination resignation of the Trustee will not be effective until the replacement Trustee has
of the Plan, the Promoter shall cause the Trustee to pay from the Assets of the been appointed and until notice of the replacement has been provided by the
Plan: Promoter to the Minister of Human Resources and Social Development.
(e) any fees or charges that remain unpaid, Upon the appointment of a replacement Trustee, the replacement Trustee shall,
(f) a Refund of Payments to the Subscriber in the amount that would be without further act or formality, be and become the Trustee hereunder and,
permitted under section 9, without any conveyance or transfer, be vested with the same power, rights,
duties and responsibilities as the Trustee and with the Assets of the Plan as if the
(g) a repayment of any Government Grants as required under the Applicable replacement Trustee had been the original Trustee.The Trustee shall execute and
Grant Legislation, and deliver to the replacement Trustee all such conveyances, transfers and further
(h) any amount remaining in the Plan after the payments described in (e), (f) and assurances as may be necessary or advisable to give effect to the appointment
(g) above, to the Designated Educational Institution in Canada designated by of the replacement Trustee.
the Subscriber or, where such designation has not been made, chosen by
Any replacement Trustee must be a corporation resident in Canada that is
the Promoter. licensed or otherwise authorized under the laws of Canada or a province to
12. DESIGNATED EDUCATIONAL INSTITUTION IN CANADA carry on in Canada the business of offering to the public its services as a trustee.
The Subscriber shall designate a Designated Education Institution in Canada in Any trust company resulting from the merger or amalgamation of the Trustee
the Application. At any time, the Subscriber may change the Designated with one or more trust companies and any trust company that succeeds to
Educational Institution in Canada by delivering to the Promoter written notice substantially all of the trust business of the Trustee will become the replacement
of such change in a form satisfactory to, and containing the information required Trustee without further act or formality, subject to prior notice being provided
by, the Promoter. If more than one such notice has been delivered to the to the Minister of Human Resources and Social Development.
Promoter, the one bearing the latest date will govern.
The Promoter shall give notice of the replacement of the Trustee to the
13. FEES AND CHARGES Subscriber and the Minister of National Revenue.
Subject to any limitations in the Applicable Grant Legislation, the Promoter and
the Trustee shall be entitled to such reasonable fees and charges as may be
17. RESPONSIBILITIES OF THE PROMOTER
The Promoter has ultimate responsibility for the Plan, including the
established from time to time for their services under the Plan and to administration of the Plan in accordance with these terms and conditions. The
reimbursement for all costs and disbursements (including all taxes) reasonably Promoter will apply for the registration of the Plan as a RESP in accordance with
incurred in the performance of their duties hereunder including brokerage fees, the Applicable Tax Legislation.
commissions and other expenses incurred in the making of any investment.The
Promoter and the Trustee are entitled to change the amount of such fees or The Promoter shall file all information returns and other documents in respect
charges in the future, upon reasonable notice to the Subscriber. Unless paid of the Plan as required under the Applicable Tax Legislation and the Applicable
directly to the Promoter and Trustee, all amounts payable pursuant to this Grant Legislation.
section (together with any applicable taxes) shall be charged against, and
deducted from, the Assets of the Plan (excluding any Government Grants) in
18. STATEMENTS AND RECORDS
The Promoter will maintain an account for the Plan in which will be recorded:
such manner as the Promoter and the Trustee determine and the Promoter may,
in its sole discretion, cause the realization of investments held in the Plan, at the (a) contributions to the Plan by or on behalf of the Subscriber,
Promoter’s choosing, for the purpose of paying such fees and other amounts. (b) investments, investment transactions and investment income, gains and
losses,
The Subscriber authorizes both the Promoter and the Trustee, together or
separately, to appoint and employ agents to who both may delegate, respectively (c) amounts and recipients of Educational Assistance Payments,
any of the Promoter’s and the Trustee’s powers, duties and responsibilities under (d) amounts transferred to another RESP,
the Plan. (e) Government Grants repayments,
(f) amounts paid to Designated Educational Institutions in Canada, (a) disclosing Information to anyone who works with or for them as needed to
(g) the Refund of Payments available to be made to the Subscriber and the administer the Plan or as required by law or regulatory policies, and
Refunds of Payments already made, (b) using and disclosing the Subscriber’s and each Beneficiary’s social insurance
(h) the amount of fees and other charges payable by the Plan, number as required by law, including for any purposes under the Applicable
(i) Accumulated Income Payments, and Tax Legislation.
(j) the balance of any Government Grants held in the Plan and any other If the Subscriber provides personal information about a third party (such as his
information required under an agreement between the Promoter and the or her spouse or a Beneficiary), the Subscriber shall have first obtained
Department of Human Resources and Social Development Canada appropriate consent from such third party to the collection, use and disclosure
respecting Government Grants. of his or her personal information by the Parties in the course of the
An annual (or more frequent at the sole discretion of the Promoter) statement administration of the Plan and for the purpose for which it was provided by any
will be sent to the Subscriber showing the transactions affecting the Plan for the Party.
preceding year.
The Parties may keep Information in their records for as long as needed for the
19. REPLACING THE PROMOTER purposes described above and as required by law. The Subscriber agrees that a
Provided the written consent of the Trustee has been obtained, such consent not file of Information will be established and maintained for each Plan participant
to be unreasonably withheld, at any time, the Promoter may assign its rights and and that only employees of the Parties who need to have access to the file in
obligations under the Plan to any other corporation resident in Canada that is performing their duties shall have access. The Subscriber may access his or her
authorized to assume and discharge the obligations of the Promoter under the file and request rectification of any personal information therein that may be
Plan so long as prior notice has been provided by the Promoter to the Minister obsolete or incorrect by sending such request, in writing, to the Promoter.
of Human Resources and Social Development. Any such assignee shall execute
any agreements and other documents that are necessary for the purpose of 25. DATE OF BIRTH AND RESIDENCY
assuming such rights and obligations. The Subscriber’s statement of a Beneficiary’s date of birth on the Application or
The successor Promoter shall give notice of the replacement of the Promoter a written designation shall be deemed to be a certification of the Beneficiary’s
to the Subscriber and the Minister of National Revenue. age and an undertaking by the Subscriber to provide any further evidence of
proof of age as may be required by the Promoter.
The Trustee and Promoter shall be entitled to rely upon the Promoter’s records
20. LIMITATION OF LIABILITY OF TRUSTEE AND PROMOTER
The Promoter and the Trustee shall not be liable for any loss or damage suffered
or incurred by the Plan, a Subscriber or a Beneficiary as a result of the purchase, as to the current address of the Beneficiary and the Subscriber as establishing
sale or retention of any investment including any loss resulting from the his or her respective residency and domicile for the operation of the Plan and
Promoter or the Trustee acting on the direction of an agent appointed by a any payments from it, subject to the receipt of any written notice to the
Subscriber to provide investment direction. contrary respecting a change in residency or domicile prior to such payment
being made.
The Promoter and the Trustee shall not be liable in their personal capacity for
any tax, interest or penalty which may be imposed on the Trustee in respect of
the Plan under Applicable Tax Laws, as a result of payments out of the Plan or
26. SUBSCRIBER DEATH
The Promoter and the Trustee are each authorized as each determines advisable
the purchase, sale or retention of any investment (including any investment that in its sole discretion to release any information about the Plan after the
is not a “qualified investment” within the meaning of the Applicable Tax
Subscriber’s death to either the Subscriber’s Estate Representative or a
Legislation).
Beneficiary, or both. If the Beneficiary is a minor at the time of his or her death,
The Subscriber will at all times indemnify the Promoter and the Trustee and save such information may be released to his or her custodial parent, legal guardian
the Promoter and the Trustee harmless in respect of any Government Grant or Public Primary Caregiver.
repayments required to be made or taxes which may be imposed on the
Promoter or the Trustee as a result of the acquisition, retention or transfer of Where a Subscriber dies at a time when there are two Subscribers:
any investments or as a result of payments or distributions out of the Plan made (a) if the Plan was opened outside of the Province of Quebec, the survivor shall
in accordance with these terms and conditions or as a result of the Promoter assume all rights, privileges and obligations of the deceased Subscriber and
or the Trustee acting or declining to act upon any instructions given to the the heirs, successors, assigns and legal representatives of the deceased
Promoter or the Trustee, whether by the Subscriber or any agent appointed by Subscriber shall have no rights under the Plan; or
the Subscriber to provide investment direction. (b) if the Plan was opened in the Province of Quebec, the Civil Code of Quebec
21. AMENDMENTS TO THE PLAN and other applicable laws will apply.
The Trustee or Promoter may change the terms of this Plan Text periodically.The
Subscriber will be provided with notice of any such changes. No change to these
27. PAYMENT INTO COURT
terms and conditions shall have the effect of disqualifying the Plan as a RESP or If there is a dispute about who is legally authorized to direct and receive
disqualifying a Beneficiary as a recipient of Government Grants under the payments from the Plan after the death of the Subscriber, the Promoter and the
Applicable Grant Legislation and any change may be retroactive. Trustee are entitled to either apply to the court for directions or to pay all or
a portion of the Assets of the Plan into court and, in either case, fully recover
any legal costs incurred in this regard as a cost or disbursement in respect of
22. NOTICE
Any notice given by the Subscriber to the Promoter or Trustee shall be the Plan.The Promoter and the Trustee will not be liable for any penalty, or any
sufficiently given if delivered to the office of the Promoter where the Plan is loss or damage resulting from the repayment of Government Grants as required
administered or, if mailed, postage prepaid, addressed to the Promoter at such under the Applicable Grant Legislation, that may occur as a result of any such
office and shall be deemed to have been given on the date such notice is payment of Assets of the Plan into court.
delivered or received by the Promoter.
Any notice, statement or receipt to be given by the Promoter to the Subscriber 28. HEIRS, REPRESENTATIVES AND ASSIGNS
shall be sufficiently given if delivered personally to the Subscriber or, if mailed, These terms and conditions shall be binding upon the heirs, Estate
postage prepaid, addressed to the Subscriber at the address set out in the Representatives, attorneys, committees, guardians of property, other legal and
Application unless the Subscriber or, where applicable, the Subscriber’s Estate personal representatives and assigns of the Subscriber and upon the respective
Representative or personal representative has notified the Promoter of a new successors and assigns of the Trustee and the Promoter and their directors,
address. Any such notice, statement or receipt shall be deemed to have been officers, employees and agents, as well as their respective estates, Estate
given at the time of personal delivery to the Subscriber or, if mailed, on the third Representatives, heirs, attorneys, committees, guardians of property, other legal
day after mailing. and personal representatives and assigns.
23. SUBSCRIBER INSTRUCTIONS
All directions, instructions, designations and other information to be provided
29. LANGUAGE
The parties hereto have requested that all documents relating to the Plan be in
under the Plan by the Subscriber must be in a form acceptable to the Promoter
English. Les parties ont demandé que tout document se rapportant au régime
and the Trustee.
soit en anglais.
24. PRIVACY
The Subscriber hereby consents and agrees to allow the Promoter and the
30. GOVERNING LAW
Trustee, and their agents and service providers, (the “Parties”) to collect The Plan shall be governed by and construed in accordance with the laws of the
personal information about the Subscriber and each Beneficiary (including Province of Ontario and the laws of Canada applicable therein.
personal information provided in any forms required for the purposes of the The Subscriber expressly agrees that any action arising out of or relating to the
Plan and/or Government Grants) (“Information”) and to use such Information Plan shall be filed only in a court located in Canada and the Subscriber
to administer the Plan, to provide services to the Subscriber as requested by the
irrevocably consents and submits to the jurisdiction of such court for the
Subscriber or required by law or regulatory policy, and as otherwise required
under the Applicable Tax Legislation, the Applicable Grant Legislation or other purposes of litigating any such action.
law.The Subscriber also consents to the Parties: (08/2008)
Risk Disclosure
Borrowing Money to Buy Securities (Leveraging)
Risks of Borrowing for Purchasing Financial Resources Required for Investments
Investments Purchased with Borrowed Funds
Mutual fund units may be purchased using available cash or a It is also important that the investor be aware of the terms
combination of cash and borrowed money. If cash is used to of a loan secured by mutual fund units.The lender may
pay for the purchase in full, the percentage gain or loss will require that the amount outstanding on the loan not rise
equal the percentage increase or decrease in the value of the above an agreed percentage of the market value of the
securities.The purchase of mutual fund units using borrowed mutual fund units. Should this occur, the borrower must pay
money magnifies the gain or loss on the cash invested.This down the loan or sell the mutual fund units so as to return
effect is called leveraging. the loan to the agreed percentage relationship. In our
example above, the lender may require that the loan not
For example, if $100,000 of mutual fund units are purchased exceed 75% of the market value of the mutual fund units.
and paid for with $25,000 from available cash and $75,000 On a decline of value of the units to $90,000 the borrower
from borrowings, and the value of the fund units declines by must reduce the loan to $67,500 (75% of $90,000). If the
10% to $90,000, your equity interest (the difference between borrower does not have cash available, the borrower must
the value of the securities and the amount borrowed) has sell units at a loss to provide money to reduce the loan.
declined by 40%, i.e. from $25,000 to $15,000.
Money is, of course, also required to pay interest on the
It is important that an investor proposing to borrow for the loan. Under these circumstances, investors who use
purchase of mutual fund units be aware that a purchase with borrowed funds to purchase their investment are advised
borrowed monies involves greater risk than a purchase using to have adequate financial resources available both to pay
cash resources only. interest and also to reduce the loan if the borrowing
To what extent a purchase using borrowed monies arrangements require such a payment.
involves undue risk is a determination to be made by
each purchaser and will vary depending on the circumstances
of the purchaser and the mutual fund units purchased.
Educators Financial Group Inc. Tel 416.752.6843
2225 Sheppard Avenue E. 1.800.263.9541
Suite 1105 Fax 416.752.6649
Toronto, ON M2J 5C2 1.888.662.2209
www.educatorsfinancialgroup.ca
(10/09)
Pre-Authorized Chequing Agreement
(not applicable for Locked‐in RSP, LIRA, RIF, LlF, RLSP or RLIF account types)
By signing the Pre-Authorized Contribution Plan (PAC) section of the application form you agree
to the following terms and conditions:
• You authorize Educators Financial Group to debit the bank account provided for the
amount(s) and in the frequencies instructed.
• You acknowledge that your debt will be considered a Funds Transfer Pre-Authorized Debit
(PAD) by Canadian Payments Association definition.
• You have certain recourse rights if a debit does not comply with this agreement. For example,
you have the right to receive reimbursement for any debit that is not authorized or is not
consistent with this pre-authorized debit agreement. To obtain more information on your
recourse rights, you may visit our website at www.educatorsfinancialgroup.ca or contact us
directly 416-752-6843 or 1-800-263-9541. Alternatively, you may visit the Canadian
payments association website at www.cdnpay.ca.
• You confirm that all persons whose signatures are required to authorize transactions in the
bank account provided have signed the Pre-Authorized Contribution Plan (PAC) section of
the application form.
• You may change these instructions or cancel this plan at any time, provided that Educators
Financial Group receives written notice at least 10 business days before your next scheduled
PAD. To obtain a copy of a cancellation form or for more information regarding your right to
cancel a preauthorized debit agreement, you may visit our website at
www.educatorsfinancialgroup.ca or contact us directly 416-752-6843 or 1-800-263-9541.
Alternatively, you may visit the Canadian payments association website at www.cdnpay.ca.
• You agree to release the financial institution of all liability if the revocation is not respected,
except in the case of gross negligence by the financial institution.
• You agree that the information in this form will be shared with the financial institution,
insofar as the disclosure of this information is directly related to and necessary for the proper
application of the rules applicable for pre-authorized debits.
• You acknowledge and agree that you are fully liable for any charges incurred if the
debits cannot be made due to insufficient funds or any other reason for which you
may be held accountable.
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