The Bonds will be issued in three types: Variable-Rate Bonds,
Step-Up Bonds, 3-Year Fixed-Rate Bonds and 10-Year Fixed-Rate Bonds (collectively, the “Fixed Rate Bonds”) (the Variable
Rate Bonds, the Step-Up Bonds and the Fixed-Rate Bonds, collectively the "Bonds").
Form and Denomination
The Bonds will be issued in fully registered form in denominations of $100 and integral multiples of $100.
The Bonds will be direct obligations of the Province of Ontario (the "Province") and the principal amount
of and interest on the Bonds will be a charge on and payable out of the Consolidated Revenue Fund of
Computershare Trust Company of Canada in the City of Toronto (together with any
successor or replacement registrar called the "Registrar") has been appointed by the
Province as registrar for the Bonds to maintain a register (the "Register") in the
City of Toronto for the names and addresses of the registered holders of the Bonds
and particulars of the Bonds held by them respectively and in which transfers or
exchanges of Bonds may be registered.
The Bonds may only be acquired for or by a beneficial owner who is at the time of acquisition:
- an individual normally residing in Ontario and having an Ontario address;
- a corporation, society, non-profit association or other organization having a permanent
establishment in Ontario; or
- a beneficiary of:
where that beneficiary meets the requirements of (a) or (b) above.
- a Registered Retirement Savings Plan, Registered Retirement Income Fund,
Deferred Profit Sharing Plan, Employee Benefit Plan, Registered Education
Savings Plan, or Registered Pension Plan, or
- an estate or other trust
The Province shall have the right to cancel any Bonds acquired by or for a beneficial
owner who does not at the time of acquisition meet the ownership eligibility
Maximum Ownership Limit
The maximum principal amount of Bonds that may be purchased for or by a beneficial
owner during the Selling Period is $1,000,000 or such other amount established by the
Province during the Selling Period (the "Dollar Limit"). The Dollar Limit shall not
apply to purchases of Bonds in the secondary market. When Bonds are beneficially
owned jointly, the maximum permitted principal amount will be the Dollar Limit
multiplied by the number of joint beneficial owners. The Province shall have the
right to require redemption of any Bonds acquired in excess of the Dollar Limit.
The Minister of Finance (the "Minister") or other authorized officer of the
Province will set the interest rate per annum payable on the Variable-Rate Bonds
for the one-year period commencing June 21, 2012 on or before June 1, 2012 and
will reset the interest rate for the Variable-Rate annually, by written notice
to the Registrar. The Province will set the interest rate payable on the
Variable-Rate Bonds for the period beginning on June 21 of each year prior to
the commencement of the period. Interest will cease to accrue on the
Variable-Rate Bonds on June 21, 2015 (the "Maturity Date" for the
The Minister or other authorized officer of the Province will set the
interest rates (the "Set Interest Rates ") payable on the Step-Up Bonds
for the term of the Step-Up Bonds on or before June 1, 2012 and may reset
the interest rates for the Step-Up Bonds from time to time, by written
notice to the Registrar. The interest rates payable on the Step-Up Bonds
shall not be less than the Set Interest Rates. Interest will cease to
accrue on the Step-Up Bonds on June 21, 2017 (the "Maturity Date" for the
The Minister or other authorized officer of the Province will set the
interest rates payable on the Fixed-Rate Bonds for the terms of the Fixed-Rate
Bonds on or before June 1, 2012 and may reset the interest rate for the
Fixed-Rate Bonds at any time before June 21, 2012, by written notice to the
Registrar. Interest will cease to accrue on the 3-Year Fixed-Rate Bonds on
June 21, 2015 and on the 10-Year Fixed-Rate Bonds on June 21, 2022 (the
"Maturity Dates" for the Fixed-Rate Bonds).
Unless a registered holder elects by written notice to the Registrar to
have interest paid by direct deposit to a specified account within Canada,
interest will be paid by cheque mailed to the address of the registered
holder in the Register. The registered holder may change interest payment
arrangements by written notice delivered to the Registrar except on June 21
or December 21, each a redemption date (“Redemption Date”), or during the
immediately preceding 15 days.
Each of the Variable-Rate Bonds, the Step-Up Bonds and the Fixed-Rate
Bonds will be issued in two forms: Annual Interest Bonds and Compound
Annual Interest Bonds
Simple interest is payable on Annual Interest Bonds, on June 21, 2013
and every June 21 thereafter up to and including the Maturity Date for the
Bonds or such earlier date on which the Bonds are redeemed, at the rate set
for the Bonds for the relevant period.
Compound Interest Bonds
Interest on Compound Interest Bonds is compounded annually, on June 21, 2013
and every June 21 thereafter up to and including the Maturity Date, at the rate
set for the Bonds for each relevant period.
Interest on Compound Interest Bonds accumulates, and is payable, on:
- the Maturity Date for the Bonds, or
- in accordance with paragraph 23, when exchanged for Annual Interest Bonds, or
- if the Bonds are redeemed on a Redemption Date.
Where a Bond is registered in more than one name, the principal of and interest
payable on the Bond shall be paid to or to the order of all joint registered holders,
failing written instructions from them to the contrary. Such payment shall constitute
a valid discharge to the Province and the Registrar. If paid by cheque, the cheque
shall be sent to the address of the joint holder whose name stands first in the Register.
In the case of the death of one or more joint registered holders, the principal of and
interest on any Bonds registered in their names may be paid to the survivor or survivors
of such holders and such payment shall constitute a valid discharge to the Province and
The purchaser may cancel a Purchase Application at any time prior to the close of
business on the expiry or termination of the Selling Period by providing written
notification along with a copy of the Purchase Application to the branch of the Sales
Agent where the purchaser originally submitted the application.
Redemption Prior to Maturity
The Sales Agents are the redemption agents (the “Redemption Agent”) for
the Bonds. The Variable-Rate Bonds are redeemable annually on June 21 only
and the Step-Up Bonds are redeemable prior to maturity at the option of the
registered holder on June 21 or December 21 for their full principal amount
by endorsing the reverse side of the tear-off redemption portion of the Bonds
(the “Payment Instrument”) and presenting and surrendering the Bonds to be
redeemed to a Redemption Agent on or before the fourteenth day following the
Redemption Date. The Payment Instrument must be attached to the Bonds at the
time of surrender otherwise the Bonds will be void. Redemption of book-based
Bonds will be processed according to the investment dealer’s operating procedures.
Interest will accrue on the Bonds and be paid up to and including the Redemption
Date regardless of whether the Bonds are surrendered for redemption before or
after such date. The Fixed-Rate Bonds are not redeemable prior to maturity
except in accordance with paragraph 18 of these Terms and Conditions.
For December 21 redemptions of Annual Interest Bonds and for June 21 and
December 21 redemptions of Compound Interest Bonds, accrued interest will be
paid by the Redemption Agent. For June 21 redemptions of Annual Interest Bonds,
including at maturity, accrued interest will be paid by the Registrar in
accordance with paragraph 10 of these Terms and Conditions. December 21
redemptions of Annual or Compound Interest Bonds will be calculated on a
semi-annual basis, regardless of the actual number of days in the period.
Bonds can be redeemed upon death of a beneficial owner, upon presentation and
surrender of the Bonds to the Registrar with such other documentation as may be
reasonably required by the Registrar. However, any requests for redemption
received during the 15 days immediately preceding a Redemption Date may not be
able to be processed until the Redemption Date. Interest will accrue on the
Bonds and be paid up to and including the date of redemption.
Interest computed for a period of less than one year, other than the
computation of regular half-yearly interest, shall be calculated on the basis
of the actual number of days in the period and a year of 365 days.
In order to redeem a portion of the principal amount of a Bond, the registered
holder must first exchange the Bond for the equivalent principal amount of smaller
authorized denominations which will include the amount to be redeemed in accordance
with paragraph 22 of these Terms and Conditions.
Payments in respect of principal of and interest on the Bonds shall only be
made on a day other than a Saturday, Sunday or statutory holiday in Ontario
(a "Business Day") and if any date for payment is not a Business Day, payment shall
be made on the next following Business Day and no further interest shall be paid in
respect of the delay in such payment. In the event that the fourteenth day following
a Redemption Date is not a Business Day, then for the purposes of paragraph 16 of
these Terms and Conditions, the Bond may be presented and surrendered on the Business
Day next following the fourteenth day.
Bonds may be exchanged at any time for an equivalent principal amount of Bonds
of the same type and in the same form in authorized denominations by presenting
and surrendering the Bonds to be exchanged to the Registrar. For any exchange,
the Registrar shall not be required to deliver more than five certificates for
each of up to three authorized denominations of Bonds. No exchanges will be
permitted on a Redemption Date or during the immediately preceding 15 days.
Compound Interest Bonds may be exchanged at any time prior to maturity for
an equivalent principal amount of Annual Interest Bonds of the same type by
presenting and surrendering the Compound Interest Bonds to be exchanged to the
Registrar. No exchanges of Compound Interest Bonds for Annual Interest Bonds
will be permitted on a Redemption Date or during the immediately preceding 15 days.
The Registrar will pay on the exchanged Bonds:
- compound interest for the period from June 21, 2012 to the June 21 prior
to the date of the exchange, plus
- simple interest, if applicable, to the date of the exchange.
Simple Interest on the principal amount of the Annual Interest Bonds received
for exchanged Compound Interest Bonds will accrue from the June 21 prior to the
date of the exchange.
Subject to the requirements of paragraphs 5 and 6 of these Terms and
Conditions being satisfied by presentation of documentation satisfactory to the
Registrar, a Bond may be transferred by the registered holder by completing a
transfer form and then presenting and surrendering the Bond to the Registrar for
registration in the name of the transferee. No transfers will be permitted on
a Redemption Date or during the immediately preceding 15 days.
Mutilated, Defaced, Destroyed, Stolen or Lost Bonds
If a Bond becomes mutilated, defaced, destroyed, stolen or lost, the Registrar
will, at the request of the registered holder, issue a new Bond in replacement of
the mutilated, defaced, destroyed, stolen or lost Bond upon receipt by the
- in the case of a mutilated or defaced Bond, the mutilated or defaced Bond; and
- in the case of a destroyed, stolen or lost Bond
- evidence satisfactory to the Province and Registrar that the Bond was
destroyed, stolen or lost, and
- an indemnity bond issued by a surety company satisfactory to the Province
and the Registrar, in such form as the Province may require where the cost of
the indemnity arising from the above transaction is borne by the registered
Not Bound by Trust
Neither the Province nor the Registrar shall be bound to see to the execution
of any trust affecting the ownership of any Bond or be affected by notice of any
equity that may be subsisting in respect of a Bond. Payments to or to the order
of the registered holder of the Bonds shall discharge the liability of the
Province and the Registrar to the extent of the sum paid.
The Province, may at any time, purchase Bonds in the open market or by tender
or by private contract at any price.
The Bonds are governed by and shall be construed in accordance with the laws
of the Province of Ontario and the federal laws of Canada applicable therein.
The personal information collected by or on behalf of the Ontario Financing
Authority (“OFA”) in connection with the Ontario Savings Bonds program is
collected under the authority of the Capital Investment Plan Act, 1993, S.O. 1993,
c.23 [s.30(1)], and the Financial Administration Act, R.S.O. 1990, c. F.12
[ss. 20, 21]. This information will be used by the OFA and its registrar, fiscal
agent, transfer agent, paying agent and order administrator in the administration
of the Ontario Savings Bond program.
Questions about the collection of personal information in relation to Ontario
Savings Bonds may be directed to: Manager, Customer Service Centre, Ministry of
Finance, 33 King Street W., Oshawa, Ontario L1H 8H5. Telephone: 1-800-263-7965
(general enquiries), 1-800-668-5821 (service in French), 1-800-263-7776 (TTY).
Income Tax Forms
The Registrar will deliver a T5 tax form to registered holders on or prior to
February 28 each year, for the interest attributable to the previous calendar year.
Dealing with Registrar
Bondholders may contact the Registrar for transfers, exchanges and other purposes at:
Computershare Trust Company of Canada
100 University Avenue
Attention: Bondholder Services