Tax-Free Savings Accounts (TFSA)

Wealth One Bank of Canada, a bank incorporated under the laws of Canada, agrees to accept Your instructions to file with the Minister of National Revenue an election to register the qualifying arrangement described below as a tax–free savings account ("TFSA") upon the terms and conditions (the "Terms and Conditions") set out below.

  1. Definitions. For the purposes hereof, the words and expressions set out below shall have the following meanings:

    1. Act: The Income Tax Act (Canada), as amended from time to time.
    2. Application: Your Tax-Free Savings Account Application.
    3. Bank: Wealth One Bank of Canada, a Canadian chartered bank incorporated under the Bank Act (Canada) having its head office in North York in the Province of Ontario.
    4. Contributions: Contributions of cash or investments to the Plan.
    5. Holder: You until the time of Your death and, at and after Your death, Your Spouse who acquires Your rights as holder of the Plan under Section 146.2 of the Act.
    6. Instruction: Your signed instructions with respect to Your Plan that are communicated to Us.
    7. Plan: Your Application, together with these Terms and Conditions.
    8. Plan Assets: Has the meaning described in Section 5 of these Terms and Conditions.
    9. Spouse: A spouse or a common-law partner for the purposes of any provision of the Act respecting a TFSA.
    10. Successor Holder: an individual who is the Holder’s survivor as defined in Subsection 146.2(1) of the Act whom the Holder designates to become and who then becomes the Holder (as defined in Subsection 146.2(1) of the Act) of the Plan.
    11. Tax Legislation: The Act and tax legislation applicable in Your province of residence, as such was recorded in Your Application.
    12. We, Us and Our: Wealth One Bank of Canada.
    13. You, Your and Yours: the Holder of the Plan.
  2. Conditions and Restrictions. The Plan is subject to the following conditions and restrictions imposed by the Act:

    1. the Plan must be maintained for the exclusive benefit of the Holder (determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the Holder);
    2. while there is a Holder of the Plan, no one other than the Holder or the Bank shall have any rights relating to the amount and timing of distributions and the investing of funds; and
    3. no one other than the Holder may make contributions to the Plan.
  3. Registration. We will file an election to register the Plan under Your Social Insurance Number as a TFSA pursuant to Tax Legislation.

  4. Contributions. We will accept Contributions made by You in compliance with Tax Legislation. No one other than You is permitted to make contributions to Your TFSA. We will keep all Contributions to the Plan on deposit for You. You are solely responsible for ensuring that the total Contributions deposited to or transferred into the TFSA do not exceed the maximum amount in any taxation year allowed by the Act.

    Notwithstanding the above, We may refuse a Contribution at any time and for any reason whatsoever.

  5. Investments. You may invest Your funds in one or more of the investment options that We make available to You. You are responsible for ensuring that investments held in the Plan are at all times qualified investments and are not prohibited investments for the Plan under Tax Legislation. In accordance with these Terms and Conditions and Tax Legislation, We will invest and reinvest such Contributions and gains accumulated from such Contributions in accordance with Your investment Instructions which We believe, in good faith, to be genuinely and properly signed or presented by You. These amounts, together with any other amounts transferred to the Plan in accordance with these Terms and Conditions and Tax Legislation will be called “Plan Assets” in these Terms and Conditions.

    We will not be liable with regard to the investment of the Plan Assets, whether or not made pursuant to Your Instructions.

  6. Statements. We will maintain an account for You which shall contain a record of all of Your Contributions to the Plan and the investment and reinvestment of such Contributions. We will provide You with a statement of account for Your Plan on an annual basis or on such more frequent basis as We shall determine.

  7. Distributions. You may receive a payment out of or under Your TFSA to reduce the amount of tax otherwise payable by You under Section 207.02 or 207.03 of the Act.

    You may also receive a payment out of or under Your TFSA for any other reason, subject to the terms of the investments in Your TFSA and to such reasonable requirements as We may impose.

    Before You may receive a payment out of or under Your TFSA, You must provide Us with written Instructions to withdraw all or part of the Plan Assets. We will then dispose of all or certain of the Plan Assets, and pay to You an amount equal to the proceeds of disposition, less any related fees or costs. We assume no liability to You in respect of any sold Plan Assets or for any losses that may result from such sales.

  8. Transfers. You may request a transfer of all or part of the Plan Assets (or an amount equal to its value), provided that such transfer is permitted under Tax Legislation, to either of the following:

    1. another TFSA that You hold; or
    2. a TFSA held by Your Spouse or former Spouse, provided that such transfer is made under the terms of a lawful division of property due to the breakdown of Your marriage or common-law partnership.

    All such transfers may be subject to tax under Tax Legislation and to related fees or costs. We assume no liability to You in respect of any such transferred Plan Assets or for any losses that may result from such transfers.

  9. Designation of Beneficiary (not available for TSFAs in the Province of Quebec). Where permitted under applicable law, You may designate a Successor Holder or beneficiary (the “Beneficiary”) to receive the Plan Assets after Your death.

    You may only make, change or revoke a designation by providing Us with written notice signed by You in a form acceptable to Us or prescribed by Us or by valid will under applicable law. In order to be effective, any designation or change or revocation notice must be delivered to Us before any payment as a result of Your death has been made hereunder. Any designation, amended designation or revoked designation will be valid on the day following its receipt by Us or, in the case of a valid will, as of the day of execution of the will. We will not accept designations that are irrevocable.

  10. Death of Holder. Upon Your death, and upon Our receipt of satisfactory evidence of Your death and other legal documents pertaining to Your death which We may reasonably request, We will continue to hold the Plan Assets on deposit for Your designated Successor Holder. Your Successor Holder will acquire all of Your rights as Holder, including the unconditional right to revoke any beneficiary designation made, or similar direction imposed, by the Holder under the Plan or relating to the Plan Assets. Upon the death of the Successor Holder, settlement will be made in the same manner and under the same conditions that applied in the case of the death of the original Holder. If You have not designated a Successor Holder then, subject to the deduction of all proper charges including all applicable fees and any applicable tax, We will pay the proceeds of the Plan Assets to Your designated Beneficiary if that person was living on the date of Your death. If You have not designated a Successor Holder and (i) You have not designated a Beneficiary, (ii) Your designated Beneficiary predeceases You, or (iii) Your beneficiary designation is not permitted by Your province of residence, then the proceeds of the Plan Assets will be paid to Your estate.

  11. Security. Unless we have consented in writing, which consent may be withheld in Our sole discretion, You may not use Your interest in the TFSA as security for a loan. If We agree, then:

    1. the terms and conditions of the indebtedness must be terms and conditions that persons dealing at arm’s length with each other would have entered into; and
    2. it must be reasonable to conclude that none of the main purposes for granting such security is to enable a person (other than the Holder) or a partnership to benefit from the exemption from tax provided by the TFSA.
  12. Delegation of Duties. Without limiting Our responsibility as issuer of the Plan, We may appoint an agent (the “Agent”) to perform certain administrative and other duties relating to the operation of the Plan as We may determine from time to time. The ultimate responsibility for the administration of the Plan lies with Us.

  13. Confirmation of Information. Your statement of birth date and social insurance number in Your Application will be deemed to be a certification of Your age and social insurance number and Your undertaking to provide any further evidence or proof of age or social insurance number that may be required for the purpose of determining Your eligibility to establish the Plan. The Plan will not be considered a TFSA unless You are at least 18 years of age when You entered into this Plan.

  14. Canadian Resident. You must be a resident of Canada and undertake to notify Us immediately if You become a non-resident of Canada.

  15. Fees and Expenses. We shall be entitled to receive the fees and other charges We may prescribe from time to time for Our administration of the Plan Assets and such additional fees for other services as specified to You in accordance with the provisions hereof. We may, however, from time to time, change Our fees or the rate thereof by giving written notice to You of Our intention to make such change and particulars thereof and each such change shall be effective after sixty (60) days from the day on which such written notice is given and shall be binding on You.

  16. Indemnification. You, Your heirs, executors, administrators or legal representatives and any Beneficiary or Successor Holder of the Plan will at all times indemnify and save harmless the Bank, its directors, officers and agents in respect of any claims, demands, taxes, penalties or interest that may be imposed under Tax Legislation on the Bank, whether by way of assessment, reassessment or otherwise, or any other loss, charges, costs, expenses or damages levied or imposed on the Bank by any government authority, upon or in respect of the Plan or in respect of payments made out of the Plan. Any such payments must be made within thirty (30) days of the date that You, Your Beneficiary or Successor Holder are notified by Us.

  17. Notices to You. Any notice, statement, receipt, request or other communication or information relating to the Plan (“Notice”) required or permitted to be given to You by Us must be in writing and will be sufficiently given if it is sent by prepaid mail, courier, electronic mail or other form of electronic transmission addressed to You at the address provided by You on the Application or at the last address known to Us in connection with this Plan and any such Notice shall be deemed to have been given and received by You on the day the Notice is delivered or, if mailed, on the day of mailing.

  18. Notices to Us. Any Notice given to Us by You must be in writing and in a form satisfactory to Us and shall be sufficiently given if it is sent by prepaid mail to the head office of the Bank or by such form of electronic transmission as We may permit. We may for any reason refuse to act on any Notice or Instruction given to Us by You and We will not be responsible for any resulting harm. Any Notice or Instruction given to Us will be deemed to have been given and received on the day the Notice is delivered or received by Us.

  19. Successor Issuer. We may resign as issuer of the Plan and be discharged from all duties and liabilities under the Plan by giving You ninety (90) days’ notice. If You do not appoint a successor issuer within ten (10) days of Our written notice, We may appoint a successor issuer for the Plan for You. We will provide the successor issuer with all information, cash amounts or securities as necessary for the administration of the Plan. After the said date, the successor shall assume all Our duties and responsibilities, and We shall then be freed from all of Our obligations and responsibilities under the Terms and Conditions provided herein.

  20. Amendments. We may from time to time, in Our sole discretion, amend the terms and conditions applicable to the Plan with the approval, if required, of applicable taxation authorities as long as the amendment will not disqualify the Plan as a TFSA under Tax Legislation. We will give You thirty (30) days written notice of any amendment unless it is made for the purpose of satisfying a requirement imposed by Tax Legislation.

  21. Binding. The Terms and Conditions of the Plan will be binding on Your heirs, executors, administrators or legal representatives and on Our successors and assigns.

  22. Governing Law. The Plan shall be governed and construed in accordance with the laws of the province in which You reside, as shown in the Application, and with Tax Legislation.

  23. Language. It is Your express wish that these Terms and Conditions and any related documents be drawn up and if execution is required, to be executed in English. Les parties convenient que la présente convention et tous les documents s'y rattachant soient rédigés et signés en anglais.

  24. Severability. In the event that all or part of a provision herein is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, then such provision or such part of a provision shall be deemed to be severable and the remainder of these Terms and Conditions shall remain in full force and effect notwithstanding such severance.

  25. Currency. All the sums of money payable hereunder shall be payable in money which is legal tender in Canada.

  26. Interpretation. Wherever the context so requires, a word used in the masculine gender shall include the feminine or neuter and vice versa, and the singular number shall include the plural and vice versa.

  27. Set-Off. We retain the right of set-off against Your Plan Assets to pay a debt obligation You may have to Us.

(08/16)