Investments

Your bank holding account does not offer the option of receiving electronic alerts as it is used exclusively for the purpose of holding bank type investment products and to make transactions associated with these investment products.

You acknowledge that:

• your bank holding account is used exclusively for the purpose of holding bank type investment products and to make transactions associated with these investment products;
• you will not be able to complete everyday banking transactions from this account;
• you will not be charged any fees or penalties by the Bank if there is a negative or zero cash balance in this account.

Powers of each joint holder (Section 6.1.1)

Joint holders have the same rights and obligations regarding the management of the account. Without the consent of the other joint holders, each holder can:

• carry out all authorized transactions in the account, such as deposits and withdrawals;
• purchase, renew and redeem any eligible investment;
• manage the account (for example, close the account);
• make administrative decisions regarding the account (for example, changing the mailing address or agreeing to receive electronic communications).

If you require the consent of all the joint holders for some account transactions, you must inform your branch when you open the account. You will not be able to do this later without closing the account.

Your liability (Section 6.1.2)

Each joint holder is jointly and severally (in Quebec, solidarily) liable for:

• transactions in the account;
• changes to the account; and
• reimbursement of all amounts due to the use of the account, regardless of who carried out the transaction.

You are responsible for informing the other joint holders if you make changes to the account.

You must notify us of any irregular transactions made in your account.

Withdrawal of a joint holder (Section 6.1.3)

The withdrawal of a joint holder will result in a joint account being closed.

Closure of the account (Section 6.1.4)

The joint account may be closed by only one of the joint holders, provided that all your investment products held in this account have matured.

An investment product has matured when:

• it has matured without being automatically renewed;
• all the funds invested in the investment product have been redeemed when applicable; or
• it is cancelled.

The joint holder will then be able to take possession of the funds in the account, unless more than one signature is required when the account is closed. We can also issue a bank draft payable to the order of all the joint holders.

Some fees apply for the issuance of a bank draft. Please refer to the Fee Guide.

The joint holder who has closed the account is responsible for informing the other joint holders.

Death of a joint holder (Section 6.1.5)

In Canada, including Quebec, in the event of death of one of the joint holders, the account is frozen until such time as a legal representative is appointed to settle the estate. In the meantime, we may allow withdrawals for emergency expenses and funeral costs if you hold only a bank holding account with the Bank.

In a province or territory other than Quebec, if the joint holders chose the right of survivorship option when opening the account, a joint account includes a right of ownership with survivorship. In the event of death, the surviving account holders maintain ownership of the funds in the account and continue to manage it.

We have no obligation to the estate of a deceased account holder.

We are not responsible for losses, damages or fees, including legal fees resulting from litigation between the estate and others involved.

Documents and communications (Section 6.1.6)

All joint holders must notify us of their change of address. If a document is returned to us, subsequent documents will not be sent until the address is updated.

When you open the account, you must designate a holder to receive the account statement. Joint holders receive all other account-related documentation.

For more information, please refer to our brochure Power of attorney and joint account – Useful information, available at your branch and online at nbc.ca.

The password you choose is intended to authenticate you. Your password is your electronic signature and confirms your instructions and transactions. You must notify us immediately if you believe that an unauthorized person is acting on your behalf.

We may rely on any electronic communication from you or that appears to come from you and which we deem to be authentic. We are not required to ask for additional personal information to authenticate you.

If you send instructions electronically, you accept the associated risks, such as failed delivery of the instructions. We are not liable for any loss that results from the execution of these instructions, except in the case of intentional or gross fault on our part.

You must verify the accuracy of the transactions recorded on your statement that you receive periodically. You must inform us immediately if you do not receive your statements.

If you see an irregular entry, you must report it to us within 30 days following the statement date. After that period, the Bank will not be liable for such entries, and all entries will be deemed to be accurate and final.

An irregular entry may result from:

• an error;
• an instruction that you have not authorized; or
• fraud of which you are the victim.

Each time you access your account using our online banking services, we consider that you have reviewed the entries regarding your account. You must notify us immediately if you notice any irregular entry in order to limit your loss.

In the event of death, the account is frozen until such time as a legal representative is appointed to settle the estate. In the meantime, we may allow withdrawals for emergency expenses and funeral costs if you hold only an investment account with the Bank.

If your account is a joint account, please refer to Section 6.1.5 of the Personal Bank Holding Account Agreement.

We may limit the use of your account, or immediately close it without notice or delay, if you use it in a manner that is inappropriate, unauthorized, illegal or abusive.

Please note that your account must be used for personal purposes. It may not be used in the operation of a business without our authorization.

Rights and obligations of the Bank (Section 8.1)

Withdrawal of funds from your account (right of set‑off) (8.1.1)

We have the right to withdraw funds from your account to pay any amount that you owe us in connection with your investment products or specific transactions you request in connection with your account. For example:

• fees to issue a bank draft;
• fees for transferring funds from a registered plan account.

When we exercise our right of set-off, we may, without notice:

• withdraw funds from any account held with us.

Controlling your access (Section 8.1.2)

We may limit or block access to your account or to any of our services if:

• you fail to comply with the conditions of this contract;
• your account is the subject of legal proceedings or claims; or
• we suspect illegal or fraudulent activity, such as cybercrime or financial exploitation.

Limitation of liability (Section 8.1.3)

We are not liable for loss or damage arising from this agreement unless it results from an intentional or gross fault on our part.

We are not liable for any loss or damage resulting from:

• fraud or unauthorized activity committed by you or any other holder on the account;
• your failure to comply with our instructions;
• incomplete, inaccurate or misleading information or instructions;
• a delay in our processing of any of your requests where such delay is out of our control;
• our services (including their availability);
• Internet network;
• networks you connect with your device;
• the protection of information exchanged via electronic communication channels;
• software or applications;
• the devices you use.

We are also not liable to you for indirect, consequential, special, and punitive damages where applicable.

We are also not liable for any loss resulting from force majeure, cybercrime or cyberthreat, technical failure, unavailability of our systems or any other event beyond our control, unless it results from an intentional or gross fault on our part.

Your obligations (Section 8.2)

Outstanding cheques (Section 8.2.1)

You may not issue cheques from your bank holding account.

If we have paid a cheque to you and do not receive payment, we may debit the amount from your account. You are responsible for disputing the cheque directly with the payer or the financial institution from which it was drawn.

You waive the right to dispute a cheque that you have signed, endorsed, or deposited.

Investigation (Section 8.2.2)

We may conduct an investigation because of activity related to your bank holding account. You must cooperate with us in good faith and provide us with any information or evidence upon request.

Security (Section 8.2.3)

You may only grant security (collateral) over your investment products with our authorization.

To secure repayment of any amounts that you owe us, the funds and investment products in your account are encumbered by a security interest in our favour.

You benefit from our Peace of Mind Guarantee regarding our online banking services. This guarantee provides for reimbursement of a loss to your account if you follow the security tips. These tips are available at nbc.ca, under the ABCs of security.

This guarantee only covers the loss to your account and applies if, after our verification:

• you have followed our security measures;
• you are found to be the victim of fraud;
• you did not authorize a transaction;
• you notified us without delay; and
• you have cooperated with any investigation.

We offer no other guarantee regarding:

• our services (including their availability);
• Internet networks;
• networks you connect to with your device;
• the protection of information exchanged via electronic communication channels;
• the actions of third parties or merchants;
• software or applications;
• merchants’ terminals; and
• the devices you use.

If the account is the subject of a dispute, objection, seizure, a request by a regulatory authority, or a lawsuit, you must intervene and assume our legal costs.

If after a certain period, you do not make any transactions, your account becomes dormant. We will periodically send you inactive account notices to the last addresses appearing in our records, as required by the law.

We will close the account if:

• all investment products are expired and the account is inactive for a period of 10 years. Any balance in this inactive account is transferred to the Bank of Canada.

For additional information on how to claim an unclaimed balance, please contact the Bank of Canada directly:

Bank of Canada – Unclaimed Balances Department

234 Wellington Street, Ottawa, Ontario K1A 0G9

Telephone: 1-800-303-1282

Website: bankofcanada.ca/unclaimed-balances

Email: info@bankofcanada.ca