The Bonds will be issued in three types: 3-Year Fixed-Rate Bonds and 10-Year Fixed-Rate Bonds (together, the
“Fixed Rate Bonds”), Variable-Rate Bonds and Step-Up 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 the
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 requirements.
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, 2013 on or before
June 3, 2013 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, 2016 (the "Maturity Date" for the Variable-Rate Bonds).
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 3, 2013 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, 2018 (the "Maturity Date" for the Step-Up Bonds).
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 3, 2013 and may reset the interest rate for the
Fixed-Rate Bonds at any time before June 21, 2013, by written notice to the Registrar. Interest will cease to
accrue on the 3-Year Fixed-Rate Bonds on June 21, 2016 and on the 10-Year Fixed-Rate Bonds on June 21, 2023
(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 Interest Bonds.
Annual Interest Bonds
Simple interest is payable on Annual Interest Bonds, on June 21, 2014 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, 2014 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 Registrar.
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, 2013 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 Registrar of:
- 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
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
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, and the Financial Administration Act, R.S.O. 1990, c. F.12. 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