Scotiabank Market Linked GICs

^    "Interim Interest Rate” means the regular non-redeemable GIC posted rate per annum with the same term as your Scotiabank Market Linked GIC as set out in your Investment Directions.

*    "Annual Guaranteed Minimum Interest Rate” is an annualized return of the Minimum Guaranteed Return (defined below), expressed as a percentage rate. The Annual Guaranteed Minimum Interest Rate is specified in your Investment Directions.    

**   “Minimum Guaranteed Return” means the minimum return, expressed as a percentage rate, you will be guaranteed to earn on your Scotiabank Market Linked GIC. It is not an annual rate but a minimum return over the term of your Scotiabank Market Linked GIC. The Minimum Guaranteed Return is calculated and compounded annually at the Annual Guaranteed Minimum Interest Rate.

†       “Maximum Full Term Return” means the maximum return, expressed as a percentage rate, you may earn on your Scotiabank Market Linked GIC. It is not an annual rate but a maximum return over the term of your Scotiabank Market Linked GIC. The Maximum Full Term Return is indicated in your Investment Directions.

The Scotiabank Market Linked GIC.

The Scotiabank Market Linked GIC is a non-redeemable, non-transferable guaranteed investment certificate whose Index  Return, if any, is based on the performance of the Underlying Index (S&P/TSX 60, S&P 500, S&P/TSX Composite Low Volatility Index or S&P/TSX Capped Utilities Index) up to a specified Maximum Full Term Return. The Scotiabank Market Linked GIC is available as both a non-registered and registered deposit, subject to the terms of the particular plan. 

Calculation of your return.

Your return, expressed as a percentage rate, will be equal to the Index Return (defined in the disclosure document available at https://www.scotiabank.com/content/dam/scotiabank/canada/en/documents/investing/MLGIC_Disclosure.pdf), unless: (a) the Index Return is greater than the Maximum Full Term Return, in which case your return will be equal to the Maximum Full Term Return; or (b) the Index Return is less than the Minimum Guaranteed Return, in which case your return will be equal to the Minimum Guaranteed Return. In each case, the return will be paid at maturity. The return, the Maximum Full Term Return and the Minimum Guaranteed Return, in each case, is a rate for the term and not an annual rate.

Interim interest is accrued daily at the Interim Interest Rate from the purchase date up to, but not including, the Issue Date. The Principal will include any interim interest earned.

The Minimum Guaranteed Return, which is applicable only if the Index Return is less than the Minimum Guaranteed Return, is accrued yearly  at the Annual Guaranteed Minimum Interest Rate from the Issue Date up to, but not including, the Maturity Date.

The Interim Interest Rate, purchase date, Maximum Full Term Return and Annual Guaranteed Minimum Interest Rate for your Scotiabank Market Linked GIC will be based on the date that the funds are received by the Issuer, which is not necessarily the date on which you requested the transfer of such funds or deposited your cheque. 

Your risks.

You must be aware of, and carefully consider, the following:

Suitability: Before purchasing a Scotiabank Market Linked GIC you should consider its suitability in relation to your investment objectives. The Scotiabank Market Linked GIC is designed for those who: (i) are prepared to hold their investment until maturity, (ii) wish to potentially earn a higher return than traditional fixed rate investments, (iii) are willing to accept the risk of earning only the Minimum Guaranteed Return, and (iv) want the Principal guaranteed. The Issuer and Scotiabank makes no representations as to whether a Scotiabank Market Linked GIC is suitable for your investment objectives.

Return: The Index Return payable, if any, is based on the performance of the Underlying Index. Stock market indices have, in the past, experienced significant movements and it is impossible to know their future direction. Your Scotiabank Market Linked GIC will not yield any Index Return if the Ending Index Value is less than or equal to the Starting Index Value. In this event, since your Principal is unconditionally guaranteed, you would receive the Principal and you would also receive a total return equal to the Minimum Guaranteed Return.

Limitation on interest: By law, the total return you receive cannot exceed an average of 60% per year, regardless of the performance of the Underlying Index. In addition, if the Index Return is greater than the Maximum Full Term Return, your return will be equal to the Maximum Full Term Return.

Risks related to market indices: All stock market indices have, in the past, experienced significant movements and it is impossible to know their future direction. Should any Underlying Index cease calculation or publication for any reason, the Issuer may determine the return, if any, on your Scotiabank Market Linked GIC as it deems appropriate.

Extraordinary events: There is always the possibility of a market disruption or other event beyond the reasonable control of the Issuer which may have a materially adverse effect on the Issuer’s ability to calculate a return on your Scotiabank Market Linked GIC, to manage the related risk, or otherwise perform its obligations. Should such an event occur, the Issuer may, acting reasonably, take such actions as it deems appropriate including, without limitation, adjusting or delaying calculation or payment of any return on your Scotiabank Market Linked GIC.

Credit risk: Because the obligation to make payments to investors is an obligation of the Issuer, the likelihood that such investors will receive the payments owing to them in connection with the Scotiabank Market Linked GICs will be dependent upon the financial health and creditworthiness of the Issuer.

Changes in legislation: There can be no assurance that income tax, securities and other laws will not be amended or changed in a manner which adversely affects investors.

Economic and regulatory issues: Changes in economic conditions, including, for example, interest rates, inflation rates, commodity prices, industry conditions, competition, technological developments, political and diplomatic events and trends, war, tax laws and innumerable other factors, can affect substantially and adversely the Ending Index Value of the Underlying Index. None of these conditions are within the control of the Issuer or Scotiabank. The Scotiabank Market Linked GICs are not subject to Canadian securities laws. Accordingly, investors do not have the same rights of action that a prospectus would provide. No securities commission or similar authority has in any way passed upon the merits of investing in the Scotiabank Market Linked GICs or any of the information that is being delivered to you.

Not a direct investment in an Underlying Index: Scotiabank Market Linked GICs are linked to the price return of the Underlying Index which reflects only the applicable price changes of its constituent securities and does not reflect any dividends, distributions or other income or amounts accruing or paid thereon. An investment in a Scotiabank Market Linked GIC is not the same as a direct investment in the constituent securities of the Underlying Index. It does not entitle you to any interest in the constituent securities and is subject to different returns and risks.

Not a fixed rate investment: A Scotiabank Market Linked GIC is different from a fixed rate investment. Though your Principal is always guaranteed, there is a greater level of risk associated with a Scotiabank Market Linked GIC than with a fixed rate investment because it does not provide a fully guaranteed fixed return (with the exception of interim interest earned until the Issue Date and the Annual Guaranteed Minimum Interest Rate).  Therefore, an investment in a Scotiabank Market Linked GIC is only suitable for investors prepared to assume risks related to the return.

No Secondary Market: A Scotiabank Market Linked GIC is not transferable. There is no secondary market. 

Availability of Information.

After your Scotiabank Market Linked GIC is issued, the following information is available on request (a) the net asset value of your GIC on the date you specify and how that value is related to the return payable under your GIC; or (b)  the last available measure before the date you specify of the S&P/TSX 60 Index, S&P 500 Index, S&P/TSX Composite Low Volatility Index, and S&P/TSX Capped Utilities Index and how that measure is related to the return payable under your GIC. Complete information (including historical information about previously matured Scotiabank Market Linked GIC and the information contained in this Terms & Conditions) is available at www.scotiabank.com, at any Scotiabank branch or by mail by contacting your branch.

Index Disclaimers.

The Underlying Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and TSX Inc. and has been licensed for use by Scotiabank.  Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).  TSX is a registered trademark of TSX Inc. The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by Scotiabank.  Scotiabank Market Linked GICs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or TSX Inc.  Neither S&P Dow Jones Indices nor TSX Inc. make any representation or warranty, express or implied, to the owners of the Scotiabank Market Linked GICs or any member of the public regarding the advisability of investing in securities generally or in Scotiabank Market Linked GICs particularly or the ability of the Underlying Index to track general market performance.  S&P Dow Jones Indices and TSX Inc.’s only relationship to Scotiabank with respect to the Underlying Index is the licensing of the indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors.  The Underlying Index is determined, composed and calculated by S&P Dow Jones Indices or TSX Inc., without regard to Scotiabank or the Scotiabank Market Linked GICs.  S&P Dow Jones Indices and TSX Inc. have no obligation to take the needs of Scotiabank or the owners of Scotiabank Market Linked GIC into consideration in determining, composing or calculating the Underlying Index.  Neither S&P Dow Jones Indices nor TSX Inc. are responsible for and have not participated in the determination of the prices, and amount of Scotiabank Market Linked GIC or the timing of the issuance or sale of Scotiabank Market Linked GIC or in the determination or calculation of the equation by which Scotiabank Market Linked GIC is to be converted into cash, surrendered or redeemed, as the case may be.  S&P Dow Jones Indices and TSX Inc. have no obligation or liability in connection with the administration, marketing or trading of Scotiabank Market Linked GIC. There is no assurance that investment products based on the Underlying Index will accurately track index performance or provide positive investment returns.  S&P Dow Jones Indices LLC is not an investment advisor.  Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.   Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to a Scotiabank Market Linked GIC currently being issued by Scotiabank, but which may be similar to and competitive with a Scotiabank Market Linked GIC.  In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the S&P 500 Index. 

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO.  S&P DOW JONES INDICES AND TSX INC. SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  S&P DOW JONES INDICES AND TSX INC. MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY SCOTIABANK, OWNERS OF THE SCOTIABANK MARKET LINKED GIC, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR TSX INC. BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.  THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND SCOTIABANK, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.