Bank of China (Canada) (the "Bank") hereby agrees with the Account Holder named in the attached TFSA Application Form to hold on deposit, as depositary, in a Tax-Free Savings Account the amount (individually the "Contribution" and collectively the "Contributions") received from the Account Holder and such additional contributions received from time to time from the Account Holder in accordance with the following arrangements:
1. NOTICES: The Bank will consider any notice to be sufficiently given if mailed, postage-prepaid, addressed to the principal office of the Bank in the Province of Ontario, or such other address or addresses as the Bank may from time to time designate in writing and such notice shall be deemed to have been given on the day such notice is actually received by the Bank. Any notice, statement or receipt given by the Bank to the Account Holder shall be sufficiently given if mailed, postage prepaid, addressed to such Account Holder at the address of the Account Holder as stipulated on the TFSA Application Form (unless the Account Holder has notified the Bank of another address, in which case notice shall be addressed to the Account Holder's address) and such notice shall be deemed to have been given on the day of mailing.
2. FEES AND CHARGES: The Bank will be entitled to such fees and other charges as the Bank may from time to time establish and shall be entitled to reimbursement for all taxes imposed upon the Bank as Depositary of the Account Holder and all disbursements reasonably incurred by the Bank in performance of its duties. All such fees and other amounts shall be Account Holder's responsibility and payable upon transfer or closure of TFSA.
3. AMENDMENTS: The Bank may from time to time in its discretion amend these terms and conditions with, if required, the concurrence of the Minister of National Revenue and of any provincial tax authorities if applicable, by giving 30 days notice to the Account Holder, however provided that any such amendments shall not have the effect of disqualifying the TFSA within the meaning of the Income Tax Act (Canada) and any applicable provincial income Tax Legislation.
4. DATE OF BIRTH: The Account Holder's date of birth as stipulated on the TFSA Application Form shall be deemed to be a certification by the Account Holder of the individual's date of birth and the Account Holder hereby undertakes to provide any further evidence of proof of age that may be required.
5. DEATH PRIOR TO MATURITY: In the event of death of the Account Holder prior to maturity of the TFSA, it would be possible to maintain the tax-free status of the earnings if the Account Holder designates his or her spouse or common-law partner as the successor Account Holder. Alternatively, the assets of the deceased's TFSA account could be transferred to the TFSA account of the surviving spouse or common-law partner without any impact on the survivor's existing contribution room.
6. COMPLIANCE WITH INCOME TAX RULES: The Bank will comply with the Income Tax Act (Canada) as follows:
- (a) The Bank has no rights of offset with respect to the assets held under the TFSA in connection with any debt or obligation owing to the Bank except fees and charges stated in clause 2 in this section.
- (b) The TFSA is maintained for the exclusive benefit of the Account Holder.
- (c) The arrangement permits distributions to be made to reduce the amount of tax otherwise payable by the Account Holder under the provision of the Income Tax Act.
- (d) The Bank shall, at the direction of the Account Holder, transfer all or any part of the property held in connection with the arrangement or an amount equal to its value to another TFSA of the Account Holder
- (e) The Bank will apply for registration of the deposit as a TFSA pursuant to the provisions of Income Tax Act, Canada. For the purpose hereof, the Account Holder is considered residing at the address as stipulated on the TFSA Application Form. It is the Account Holder's sole responsibility to advise the Bank of any address change.
- (f) The Bank will maintain account records in name of the Account Holder which shall contain a record of all contribution received from and the interest income earned thereon the TFSA.
7. GOVERNING LAW: The TFSA shall be governed and construed in accordance with the provincial laws and with the laws of Canada as applicable.