The Canadian Banks GIC (the “MLGIC”) aims to provide you with a
return linked to the price return performance of the common shares of
the 6 Canadian banks (the “Reference Shares”) specified in the
relevant Information Statement. Investors of the MLGIC will be
entitled to receive on the Maturity Date repayment of the principal
invested on the Issue Date and a Variable Interest, depending on the
performance of the Reference Portfolio over the term of the MLGIC. No
interest or any other amount will be paid during the term of the
MLGIC. The Variable Interest is calculated as follows:
- For MLGIC payout that includes a Maximum Interest and no
Guaranteed Interest, the Variable Interest corresponds to the
principal invested on the Issue Date multiplied by the Reference
Portfolio Return, subject to such Maximum Interest.
- For
MLGIC payout that includes both a Guaranteed Interest and a Maximum
Interest, the Variable Interest corresponds to the principal
invested on the Issue Date multiplied by the Reference Portfolio
Return, subject to such Guaranteed Interest and Maximum
Interest.
- For MLGIC payout that includes only a
Participation Factor (i.e., no Guaranteed Interest or Maximum
Interest), the Variable Interest corresponds to the principal
invested on the Issue Date multiplied by the Reference Portfolio
Return, multiplied by the Participation Factor.
The Reference Portfolio Return used in the Variable Return
calculation corresponds to the arithmetic average of the Reference
Share Return of each of the Reference Shares comprising the Reference
Portfolio. Such Reference Share Return is based on the average of
three Reference Share Prices of each Reference Share determined over
the last three months of the term of the MLGIC. The Reference Share
Return will not take into account dividends and/or distributions paid
by the issuers on account of each of the Reference Shares.
Complete information for a specific series of MLGIC is available in
the relevant Information Statement and it should be consulted before
investing. Please refer to the rates bulletin to consult the series issued by
National Bank of Canada. You may also find information herein, by
contacting your branch advisor or by calling 1-888-483-5628.
The MLGIC is a deposit eligible for deposit insurance by the Canada
Deposit Insurance Corporation (“CDIC”), subject to the maximum dollar
limit of CDIC coverage and applicable conditions (www.cdic.ca). The
MLGIC is not a conventional fixed income investment, is not suitable
for all types of investors and is subject to several risk factors.
Capitalized terms used and not otherwise defined herein have the
meaning ascribed thereto in the Information Statement.
