The Diversified GICs (each a “MLGIC”) aim to provide you with a
return linked to the performance of the NBC Conventional fixed-rate
GIC, the Canadian Precision 10 GIC and the Global Precision 10 GIC
(the “Reference Assets”). The MLGICs decline in three distinct
investment solutions, each having different Reference Asset Weights as
mentioned herein.
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
corresponds to the principal invested on the Issue Date multiplied by
the Reference Portfolio Return. Such Reference Portfolio Return, which
is subject to the Guaranteed Interest and Maximum Interest, is equal
to the weighted average return of the Reference Assets. The Reference
Asset Return for each Reference Asset is calculated as follows:
- For the NBC Conventional fixed-rate GIC, it corresponds to the
interest rate compounded annually over the term of the MLGIC, as
indicated in the Information Statement;
- For the Canadian
Precision 10 GIC and the Global Precision 10 GIC, it corresponds to
the arithmetic average of the price return performance of the 10
middle performing Reference Shares out of 20 Reference Shares
comprising each Reference Basket, as specified in the relevant
Information Statement. Such Reference Asset Returns are calculated
over the period starting on the Issue Date and ending on the
Valuation Date and are subject to a minimum of 0.00% and the maximum
indicated in the Information Statement. Moreover, these Reference
Asset Returns will not take into account dividends and/or
distributions paid on account of all the Reference Shares in the
Reference Basket.
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.
