Terms and Conditions
Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs) are issued subject to terms and conditions approved by the Minister of Finance which are summarized below.
In these terms and conditions:
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bonds mean the series of compound interest CSBs and CPBs on sale on the date you sign and return this form and purchased pursuant to this form; |
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you means the owner of
The Canada RIF; |
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• |
registered plan means a Registered Retirement Savings Plan,
a Registered Retirement Income Fund, a Registered Education Savings
Plan, a Registered Pension Plan or a Deferred Profit Sharing Plan
within the meaning assigned to these expressions by the Income
Tax Act (Canada) or provincial legislation; and
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Trustee means the trustee of The Canada RSP and The
Canada RIF. |
Buying bonds
Bonds may only be purchased with Canadian currency in any
amount subject to a minimum purchase amount of $500 for each series of
bonds. The Minister of Finance may end the sale of CSBs and CPBs at any time.
To receive a particular series of bonds, purchase arrangements
must be completed on or before the issue date of that particular
series. A particular series of bonds may be purchased with the
proceeds of a transfer-in from a Registered Retirement Savings Plan or
Registered Retirement Income Fund up to and
including 30 days after the issue date of that particular series.
Who can own bonds
Only a Canadian resident who is eligible to have a
Registered Retirement Income
Fund may own bonds in The Canada RIF.
These bonds do not have certificates. Your bonds will be
held on your behalf in the name of the Trustee. If you
transfer your bonds to another registered plan, they will
be held in the name of the trustee of that plan.
The maximum amount of principal that a person may own per series and per type of registration of CSBs and CPBs is $500,000 respectively. A person may own CSBs and CPBs above this limit if they are purchased with the proceeds of a maturing series, or because the person received them upon the death of the owner or a co-owner. Otherwise, the Minister of Finance may order a person to redeem the CSBs and CPBs in excess of the maximum limit. No further interest will be earned on the amount of CSBs and CPBs owned above this limit after the Minister's order to redeem. The Minister of Finance may change the $500,000 maximum ownership limit at any time.
If there is any doubt whether a person is eligible to own CSBs
or CPBs and how they are registered, the Minister of Finance has the right to make the final decision.
Compound interest bonds
Compound interest bonds earn, in addition to simple interest, compound interest at the rates determined by the Minister of Finance until the earlier of maturity and redemption based on the interest earned on each annual anniversary of the issue date prior to maturity,
except in certain circumstances noted below in Redeeming bonds.
Interest will be paid at the time of redemption (please refer to Redeeming bonds below).
Transferring and assigning bonds
Bonds may only be transferred and assigned subject to applicable law and in a manner acceptable to the Bank of Canada, in the following cases:
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to a trust governed by a registered plan; |
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from a registered plan to the beneficial owner or, upon
the death of the beneficial owner, to the beneficiary thereof; |
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to a beneficiary, estate, or trustee appointed under a will if the owner dies or from the estate or the trustee to the beneficiary thereof;
and |
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to the owner's spouse in the event of divorce or if stipulated in a written separation agreement in form and substance acceptable to the Bank of Canada. |
The minimum amount that may be transferred and assigned for each
series of bonds is the lesser of $100 and the balance in bonds.
If the bonds are transferred out of The Canada RIF or
to The Canada RSP, the bonds will become governed by the
respective terms and conditions governing CSBs and CPBs purchased using Form
1 and Form 2. The minimum amount in bonds that can be transferred and
assigned per series for each type of registration to The Canada RSP is
$500.
Redeeming bonds
You can redeem your bonds that are
CSBs at any time by writing to the Trustee, which will contact the Bank
of Canada.
You can only redeem your bonds that are CPBs on any annual anniversary of the issue date or during the 30 days thereafter,
unless the redemption is for regular income payments from your RIF, by
writing to the Trustee, which will contact the Bank of Canada. If
you redeem your CPBs during the 30 days following the annual anniversary of the issue date, no interest will be earned for the period following the anniversary date. In the event that evidence acceptable to the Bank of Canada is provided to show:
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the owner has died; |
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the redemption is ordered by a court; or |
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the proceeds of redemption are required by the owner to avoid
bankruptcy,
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the
CPBs may be redeemed at other times by writing to the Trustee, which will contact the Bank of Canada.
No interest is earned on any bonds redeemed prior to three months
following the issue date, unless the redemption is required to make a
regular income payment from your RIF.
No interest is earned in respect of the calendar month in which bonds are redeemed.
The minimum amount that may be redeemed for each series of bonds
is the lesser of $100 and the balance in bonds. The amount
redeemed will be comprised of both principal and interest.
Contacting the Trustee
Canada Savings Bonds
Registered Products
P.O. Box 2390, Station D
Ottawa, ON K1P 1K8
1 800 575-5151
1 800 354-2222 (TTY/Teletypewriter)
Contacting the Bank of Canada
Canada Savings Bonds
P.O. Box 2770, Station D
Ottawa, ON K1P 1J7
1 800 575-5151
1 800 354-2222 (TTY/Teletypewriter)
www.csb.gc.ca
Correspondence
Regular statements will be issued as at
the end of each calendar quarter and
sent to the address on record. A maturity notice will also be sent to
this address at least 30 days prior to maturity.
A reminder about purchase and issue dates
To receive a particular series of bonds, purchase arrangements must
be completed on or before the issue date of that particular series.
Although the transfer-in of proceeds from another registered plan to
purchase a particular series of bonds will be accepted up to and
including 30 days after the issue date, any proceeds received by the
Trustee after this period will be used to purchase the series on sale at
that time. If there is no series available at that time, the Trustee
will return the funds to the sales agent.
