Insured Retirement Program Personal Line of Credit Application This Application is exclusively for clients with whole life or universal life insurance policies with Manulife. To apply for an Insured Retirement Program (IRP) Personal Line of Credit, you must have reached 50 years of age by the date of the Application. If a corporate owned life insurance policy is being used as security, the Corporation must guarantee the line of credit. First, please have your client review the IRP Consumer Guide (entitled “Bridge to Financial Security”) MK1296 and the IRP Illustration and acknowledge their review in section 12 of this Application. For Personal IRPs only Personally Owned Life Insurance Corporate Owned Life Insurance Line at 75% of CSV A B Line at 90% of CSV C D The following is a listing of documents required for an IRP Personal Line of Credit for 4 different scenarios: A, B, C, D. Additional documents may be required, depending on how certain questions in this Application are answered. A) For an IRP Personal Line of Credit at 75% of net Cash Surrender Value (CSV), secured by a personally owned life insurance policy Insured Retirement Program Personal Line of Credit Application (document in hand) Security documentation (to secure a Manulife Life Insurance Policy with CSV) Non-Quebec residents: Assignment of Life Insurance Policy (AB0185E) Quebec residents: Hypothec on Life Insurance Policy (AB0736E) B) For an IRP Personal Line of Credit at 75% of CSV, secured by a corporate owned life insurance policy Documents listed in A) above, PLUS Personal Borrowing using a Corporate Insurance Policy Acknowledgement & Disclosure form (AB0816E) Articles of Incorporation, Partnership Agreement or Sole Proprietorship Documentation Application fee (0.25% of the line of credit amount or minimum $250, whichever is greater) NOTE: Solicitor’s Letter of Opinion is required if loan is over $500,000. However, we recommend that you do not obtain the Solicitor’s Letter of Opinion until such time this Application is approved and security documents prepared for the client's solicitor. The Manufacturers Life Insurance Company Page 1 of 14 AB0807E (03/2018)
Transcript
Insured Retirement Program Personal Line of Credit Application
This Application is exclusively for clients with whole life or universal life insurance policies with Manulife. To apply for an Insured Retirement Program (IRP) Personal Line of Credit, you must have reached 50 years of age by the date of the Application. If a corporate owned life insurance policy is being used as security, the Corporation must guarantee the line of credit.
First, please have your client review the IRP Consumer Guide (entitled “Bridge to Financial Security”) MK1296 and the IRP Illustration and acknowledge their review in section 12 of this Application.
For Personal IRPs only
Personally Owned Life Insurance
Corporate Owned Life Insurance
Line at 75% of CSV A B
Line at 90% of CSV C D
The following is a listing of documents required for an IRP Personal Line of Credit for 4 different scenarios: A, B, C, D. Additional documents may be required, depending on how certain questions in this Application are answered.
A) For an IRP Personal Line of Credit at 75% of net Cash Surrender Value (CSV), secured by a personally ownedlife insurance policy Insured Retirement ProgramPersonal Line of Credit Application (document in hand)
Security documentation (to secure a Manulife Life Insurance Policy with CSV)
Non-Quebec residents: Assignment of Life Insurance Policy (AB0185E)
Quebec residents: Hypothec on Life Insurance Policy (AB0736E)
B) For an IRP Personal Line of Credit at 75% of CSV, secured by a corporate owned life insurance policy Documents listed in A) above, PLUS
Personal Borrowing using a Corporate Insurance Policy Acknowledgement & Disclosure form (AB0816E)
Articles of Incorporation, Partnership Agreement or Sole Proprietorship Documentation
Application fee (0.25% of the line of credit amount or minimum $250, whichever is greater)
NOTE: Solicitor’s Letter of Opinion is required if loan is over $500,000. However, we recommend that you do not obtain the Solicitor’s Letter of Opinion until such time this Application is approved and security documents prepared for the client's solicitor.
The Manufacturers Life Insurance Company Page 1 of 14 AB0807E (03/2018)
C) For an IRP Personal Line of Credit at 90% of CSV, secured by a personally owned life insurance policy(available only for Performax ®, Performax Gold ® and for 10 or 20 pay Manulife UL universal life) Insured Retirement Program Personal Line of Credit Application (document in hand)
Security documentation to secure the Manulife Life Insurance Policy
Non-Quebec residents: Assignment of Life Insurance Policy (AB0185E)
Quebec residents: Hypothec on Life Insurance Policy (AB0736E)
Most recent 2 years T-1 General Tax Returns & CRA Notice of Assessments
Copy of current investment statements
D) For an IRP Personal Line of Credit at 90% of CSV, secured by a corporate owned life insurance policy Documents listed in C) above, PLUS
Personal Borrowing using a Corporate Insurance Policy Acknowledgement & Disclosure form (AB0816E)
Two years of accountant prepared business financial statements
Articles of Incorporation, Partnership Agreement or Sole Proprietorship Documentation
Application fee (0.25% of the line of credit amount or minimum $250, whichever is greater)
NOTE: A Solicitor’s Letter of Opinion is required if loan is over $500,000. However, we recommend that you do not obtain the Solicitor’s Letter of Opinion until such time this Application is approved and security documents prepared for the client's solicitor.
Signatures in sections 14 and 16 are required. Depending on how certain questions are answered, signatures may also be required in section 2.
Please provide a copy of the Application to the Applicant, then send the completed and signed Application and all supporting documents either by fax or by mail to:
Fax: 1-866-236-7317 Questions? Mail: Manulife Bank of Canada If you have any questions about this application,
please call the Manulife Bank Advisor Support Centre: Business and Specialized Lending
500 KING STREET NORTH, 500 M-A
PO BOX 1602 STN WATERLOO 1-800-567-9170 WATERLOO ON N2J 4C6
Adjustment Factors for 75% Loan to Value (LTV)
CSV in policy Loan Size Adjustment Factor
$33,333 - $133,333 $25,000 - $99,999 1.50%
$133,333 - $333,333 $100,000 - $249,999 1.25%
> $333,333 $250,000 and greater 1.00%
Adjustment Factors for 90% Loan to Value (LTV)
CSV in policy Loan Size Adjustment Factor
$27,777 - $111,111 $25,000 - $99,999 1.50%
$111,111 - $277,777 $100,000 - $249,999 1.25%
> $277,777 $250,000 and greater 1.00%
The Manufacturers Life Insurance Company Page 2 of 14 AB0807E (03/2018)
Insured Retirement Program Personal Line of Credit Application
• Please attach a personal or business void cheque (if required) • For instructions, refer to page 1 and 2 • The Terms and Conditions are within this Application
For Bank use only
Manulife Bank Line of Credit no.
Effective date (mmm/dd/yyyy)
1 Cost of borrowing summary
Initial Credit Limit To be disclosed after evaluation of Application.
Annual Interest Rate (A) Currently, Manulife Bank’s prime lending rate (the “Prime Lending Rate”) is __________ %.
For the current Prime Lending Rate, please visit manulifebank.ca or call 1-800-567-9170.
(B) The Adjustment Factor for your credit line is __________ % per annum.
For the Adjustment Factor, see chart on page 2. Adjustment Factor depends on size of the approved loan.
(C = A + B) Your current Annual Interest Rate is __________ %.
(The Prime Lending Rate today plus the Adjustment Factor). Your interest rate will vary automatically with any variation in the Prime Lending Rate. The Prime Lending Rate means the variable annual interest rate that Manulife Bank publishes from time to time as a reference rate.
Date from which Interest is Charged
Interest is charged from the day you borrow money, until you pay the money back in full. Interest is calculated on the daily balance and charged and compounded monthly, not in advance. There is no interest-free grace period.
Minimum Payment No minimum payment is required as long as the total outstanding debt and accrued interest does not exceed the approved credit limit. If the debt does exceed the approved credit limit, a payment will be required in an amount sufficient to reduce the debt to below the credit limit.
Foreign Currency Conversion
Not applicable
Annual Fees Not applicable
Other Fees To be charged on the date the transaction occurs: ABM withdrawal (in Canada): $1.50 Over the credit limit (once per month): $10 Returned or refused payment due to insufficient funds: $45 Duplicate statement (mailed): $5 for less than 1 year old; $10 for 1 year old or more Direct payment (debit): $1.00 Advance for bill payment: $1.00 Non-Sufficient Funds (NSF) item processing (cheque honoured over credit limit): $5 Interac® e-Transfers: $1.00. Application fee: 0.25% of the requested line of credit amount or minimum $250, whichever is greater for a personal Application with a corporate security as collateral. We may, on prior notice to you, increase the amount of any such charges or impose additional charges. Please refer to the Disclosure Statement for further details.
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Disclosure Statement Interest – Interest is charged at a variable per annum rate (the Interest Rate) equal to the Prime Lending Rate plus the Adjustment Factor specified in the Cost of Borrowing Summary in section 1 of this Application. The Interest Rate will change automatically with any change in the Prime Lending Rate. Interest is charged from the day that you borrow funds on the Account or that interest, Other Charges and Default Charges, as the case may be, are charged to the Account, and is calculated daily on the Outstanding Balance. Interest is charged monthly and therefore compounded monthly.
Application Fee – For a personal Application with a corporate security as collateral, you agree to pay an application fee to Manulife Bank in the amount of 0.25% of the requested line of credit amount or minimum $250, whichever is greater as described above. Please include a cheque payable to Manulife Bank of Canada with the submission of the Application. If the Application is not approved, the application fee will be returned to you.
Registration Fees – With respect to the security granted by you or others to secure your indebtedness under the Account, and any other costs or administrative fees charged from time to time, including any fees for withdrawals from the Account (described within section 1) with our consent, will be paid by you.
Other service – Other charges may apply which will be charged to the Account on the date that they are incurred. We may, on prior notice to you, increase the amount of any such charges or impose additional charges. Please see Section 1 of the Account Operating Agreement and the Manulife Bank Services and Fees Guide - Lines of Credit (AB0856E) service charges brochure that are provided to you.
Monthly Statements – We will provide you with a statement of the Account monthly.
Default Charges – You must pay us a fee of $45 (subject to change) if any cheque or other payment item is dishonoured due to insufficient funds (NSF fee). We may charge you for legal costs on a substantial indemnity basis and other expenses which we incur to enforce our Security (described below) and collect any amount that you owe us.
Additional Information – If you require information about the Account, you may call us toll free at 1-877-765-2265 during regular business hours.
Security – You agree that the security for the Account shall be the following (the Security):
• an assignment or hypothec on movable property in Quebec in favor of Manulife Bank of the Policy.
Where we require it, you must deliver to Manulife Bank of Canada an assignment and/or hypothecation of the Policy in such form and amount as may be directed by us. You must repay the Outstanding Balance without regard to the fluctuation in value of the Policy. You authorize us to release a copy of this Application to Manulife or other issuer of the Policy for the purpose of enabling us to register both the nature and extent of our ongoing interest in the Policy but we will otherwise maintain confidentiality with respect to all information relating to this Application. Upon fulfillment of your obligations to us under this Application, we will notify Manulife or other issuer of the Policy that we are releasing our interest in the Policy and, if applicable, we will return to the Policy to you.
The Security given to us under this Application is in addition to and not in substitution for any other security now or hereafter held by Manulife Bank.
You irrevocably appoint each of Manulife Bank, its officers, employees and nominees or any authorized agent of any of them to be your attorney with full power of substitution, to fill in any blanks in this Application or any related document, to do, make and execute all such statements, assignments, documents, acts, matters or things, with the right to use your name whenever we may deem necessary or expedient and to perform all acts of ownership in respect of the Policy.
Exercising Options – If you are not in default under this Application, or any security agreement relating hereto or any other agreement with us, and if you are not otherwise prohibited by and meet the terms of this or any other agreement with us, then you may exercise any option(s) provided under the Policy, provided that no option may be exercised without our prior written consent and unless the Policy remains in force at all times.
2 Interest Payment Option Interest payments are optional for the Insured Retirement Program.
Do you wish to make monthly interest payments?
No (Proceed to section 3)
Yes (If yes, then...)
• If the Applicant(s) will be the Payor (the person(s) paying the interest), include a void cheque with this Application and proceed to section 3.
• If a person other than the Applicant(s) will be the Payor, please complete the Identification Verification and Signature Card (AB0487E), provide a void cheque, and complete this section.
If the Payor is not the Applicant, please complete and enclose the Identification Verification Form and Signature Card (AB0487E), and provide a void cheque.
Name of Payor Relationship to Applicant(s)
Signature of Payor Date (mmm/dd/yyyy)
By signing here, the Payor acknowledges his or her name and relationship to the Applicant(s) and agrees to section 13 of this Application and to the attached Personal Pre-Authorized Payment Authorization for Line of Credit Payments.
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3 Information on Applicant
All correspondence from Manulife Bank will be sent to this address.
If employed, please select the appropriate Industry and corresponding Occupation as outlined in the back of the Application.
Mr.
Last name
Mrs. Miss Ms. Other ______________
First name Middle initial
Date of birth (mmm/dd/yyyy)
Address
Social Insurance Number Annual income
$
City
Province Postal code Home phone number Business phone number Ext.
Email address
Please provide details of the Canadian photo ID verified in person (Refer to the Schedule "A" Acceptable Forms of
Identification Documentation at the back of the Application for a list of acceptable documents.)
Canadian Driver's Licence Canadian Passport Canadian Provincial or Territorial Identification
Canadian Citizenship Card (issued prior to 2012) Other Canadian photo ID (specify)
Document number Issuing Jurisdiction (Province/State/Country) Issuing Country
Canada
Expiry date (mmm/dd/yyyy) Date verification was made (mmm/dd/yyyy)
If Canadian Photo ID is not provided, please complete the Identification Verification Form and Signature Card (AB0487E).
Retired Still employed Other (provide details) ________________________________________
Name of employer Number of years with employer
Employer address City Province Postal code
Employer telephone number Ext. Industry Occupation
4 Information on Joint Applicant (if applicable)
If employed, please select the appropriate Industry and corresponding Occupation as outlined in the back of the Application.
Mr.
Last name
Mrs. Miss Ms. Other ______________
First name Middle initial
Date of birth (mmm/dd/yyyy)
Address
SAME AS PRIMARY APPLICANT
Province Postal code
Social Insurance Number
Home phone number
Annual income
$
City
Business phone number Ext.
Email address
Please provide details of the Canadian photo ID verified in person (Refer to the Schedule "A" Acceptable Forms of
Identification Documentation at the back of the Application for a list of acceptable documents.)
Canadian Driver's Licence Canadian Passport Canadian Provincial or Territorial Identification
Canadian Citizenship Card (issued prior to 2012) Other Canadian photo ID (specify)
Document number Issuing Jurisdiction (Province/State/Country) Issuing Country
Canada
Expiry date (mmm/dd/yyyy) Date verification was made (mmm/dd/yyyy)
If Canadian Photo ID is not provided, please complete the Identification Verification Form and Signature Card (AB0487E).
Retired Still employed Other (provide details) ________________________________________
Name of employer Number of years with employer
Employer address City Province Postal code
Employer telephone number Ext. Industry Occupation
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Joint Applicant(if applicable)
5 Other information Applicant
Are you liable as a co-signer or guarantor? Yes No Yes No
Are there any judgements against you? Yes No Yes No
Are you now or have you ever been bankrupt or filed a consumer proposal in the
past 6 years?
Yes No Yes No
If you answered yes to any of the above, please provide full details on a separate sheet.
Have you previously borrowed from other banks? Yes No Yes No
Have you (or any close relative) ever held a senior position in government, political
party, military, tribunal or other government owned corporation of a foreign country?
Yes No Yes No
If yes, please complete the Politically Exposed Person Disclosure (AB0707E).
Will this line of credit benefit a third party?
(e.g. The line of credit may be held for the benefit of some other person.)
Yes No
If yes, please complete the Third Party Identification (AB0321E).
What is the intended use of this account?
Retirement Emergency fund Investment Household expenses
Business purposes Vacation/leisure Vehicle purchase Education
6 Credit limit requested Credit limit at time of application
Maximum value possible $ __________________
Another amount, less than the maximum value (please specify) $ __________________
Your IRP Personal Line of Credit account with Manulife Bank is secured by your permanent life insurance policy. The CSV of that policy is expected to increase over time. When that happens, you may be eligible for a higher credit limit than what was established when you opened your account.
To maximize the efficiency of your banking experience, Manulife Bank may increase your credit limit from time to time at our discretion. (This feature is not available in Quebec). Should Manulife Bank increase your limit, you will be notified by mail.
Please note that a credit check will be completed when Manulife Bank reviews your account for any potential increase.
If you prefer not to permit Manulife Bank to periodically increase your credit limit, please check the box below. Otherwise, you are free to instruct Manulife Bank at any time to refrain from any further increases or to reduce your credit limit at any time by mailing your instructions to Manulife Bank, Portfolio Management, 500 King Street North, Waterloo, ON N2J 4C6.
I do NOT give Manulife Bank the authorization to periodically increase my credit limit.
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7 Assets and liabilities
(This section must be completed for all scenarios.)
Assets Amount Liabilities Amount Monthly Payments
Manulife Bank of Canada loans
Rent ormortgage
Cash $ $ $
Manulife Bank of Canada mortgages
Supportpayments
Residence $ $ $
Mortgages with other financial institutions
Propertytax
Other real estate $ $ $
Loans with other financial institutions Registered investments $ $
Non-registered investments $ Unpaid income tax $
Life insurance (net cash surrender value)
Line of credit $$
Vehicles $ Property tax owing $
Other assets (please specify below)
Credit card balance $$
Other liabilities(please specify below)
Total assets $ $
Total liabilities $
Net worth
(assets – liabilities) $
Additional details Assets (real estate, registered/non-registered investments, vehicles, other assets)
Description(provide address for real estate, type of investment etc.)
Asset Current Value ($)
$
$
$
$
$
$
$
$
Liabilities (mortgages, loans, lines of credit, credit cards, other liabilities)
For life insurance policies issued in the province of Quebec: Is your spouse designated as beneficiary? Yes No
9 Cheque signing authority(joint accounts only)
Either Applicant to sign All Applicants must sign (in this case, Access Card not available)
10 Joint Applicant (if applicable) cost of borrowing separate disclosure
As a Joint Applicant, you have the right to receive a separate copy of disclosure documents. Please be advised that you will automatically receive a separate copy of disclosure documents unless you indicate otherwise below. Disclosure documents will be sent to all borrowers at the address(es) provided in the Application. This may include statements, renewal agreements, documents outlining the terms and conditions of the product and any other documentation that shows the cost of borrowing. This consent will carry through renewals or amendments, if applicable. If at any time you want to change your selections noted below, you may do so by contacting us toll free at 1-877-765-2265.
No – I do not wish to receive separate disclosure related to this account.
Please indicate how you would like to receive your statements (select one):11 Receipt of statements by Applicant and Joint Applicant (if applicable)
I (Applicant) consent to receiving e-Statements from Manulife Bank. I have read and agree to the terms and conditions available online at www.manulifebank.ca/estatements. I understand that if an email address isprovided on this Application, an email notification will be sent when the e-Statement is ready.
I (Applicant) would like to receive paper statements.
Please indicate how the Joint Applicant would like to receive their statements (select one unless Joint Applicant requested not to receive separate disclosure in the previous section):
I (Joint Applicant) consent to receiving e-Statements from Manulife Bank. I have read and agree to the terms and conditions available online at www.manulifebank.ca/estatements. I understand that if an email address is provided on this Application, an email notification will be sent when the e-Statement is ready.
I (Joint Applicant) would like to receive paper statements.
12 IRP Consumer Guide and IRP Illustration Acknowledgment
To proceed with this IRP Personal Line of Credit Application please confirm that you have read and understood the IRP Consumer Guide (entitled “Bridge to Financial Security”) MK1296 and the IRP Illustration and signed the acknowledgements included therein.
I have read and signed the IRP Consumer Guide. Yes
I have read and signed the IRP Illustration. Yes
If you have not signed the IRP Consumer Guide (entitled “Bridge to Financial Security”) MK1296 and/or the IRP Illustration, please do so before proceeding with this Application.
13 Personal and credit information authorization and consent
I/We, the individual(s) named as Applicant and, if applicable, Joint Applicant for a personal line of credit and any Payor named in section 2 of this Application, each (i) acknowledge having read the attached Personal Information Statement and consent to the collection, use and disclosure of my personal information in accordance with the terms thereof, and (ii) consent to Manulife Bank obtaining personal and credit information from, and providing such information to, any credit reporting agency in connection with this Application and the ongoing administration of the personal line of credit granted pursuant to this Application.
I/We expressly request that this Application and all related documents, including notices, be drawn up in the English language. Je/Nous demande(ons) expressement que la present demande et tout document y afferent, y compris tout avis, soient rediges en langues anglaise.
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14 Signature(s) By signing below, the Applicant(s) named above is (are) applying for an Insured Retirement Program Personal Line of Credit from Manulife Bank in accordance with the attached Insured Retirement Program Personal Line of Credit Agreement and (i) acknowledge that the Adjustment Factor shown in the Cost of Borrowing Summary may change based on the evaluation of this Application, (ii) acknowledge that the information provided in this Application is true and complete, and agree to inform Manulife Bank of Canada of any changes to the information provided within 30 days, and (iii) agree that if this Application is accepted, to be bound by the Account Operating Agreement that is sent to me/us with notice of such acceptance, and the attached Personal Pre-Authorized Payment Authorization for Line of Credit Payments.
Signed at this day of ,
Applicant signature Witness signature
Joint Applicant signature (if applicable) Witness name
Witness address
15 Representative information
Last name First name
Representative code Dealer code Branch number Company or Brokerage
Telephone number Ext. Fax number
Mailing address
City Province Postal code
Email address
16 Representative assertions
Did the individual(s) initiate a new relationship with you for the purpose of opening this account? Yes No
If yes:
Individual(s) referred by someone I know
Individual(s) came to me directly
I confirm that I have seen the original, valid and unexpired identification verification documentation presented by the Applicant and Joint Applicant (if applicable). I undertake to deliver the completed Third Party Identification form referred to in section 5, if required. I also undertake to inform Manulife Bank if I become aware that the line of credit proceeds are being used for the benefit of a third party.
Representative signature Date (mmm/dd/yyyy)
17 Manulife Bank authorization
To be completed by a Manulife Bank Personal Lending Officer.
Lending officer's signature Lending officer's name
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INSURED RETIREMENT PROGRAM PERSONAL LINE OF CREDIT AGREEMENT
The information set forth below and in the Disclosure Statement must be read together with the Terms and Conditions which follow. Together they form the agreement (this Agreement) between the Applicant (and any Joint Applicant) named above and Manulife Bank of Canada for an Insured Retirement Program (IRP) Personal Line of Credit account (the Account). This Agreement is to be read together with the Account Operating Agreement that is provided to you, but in the case of any conflict between this Agreement and the Account Operating Agreement, this Agreement will govern.
Some Definitions - In this Agreement, you and your refers to the Applicant and any Joint Applicant (if applicable) named above; if there are two or more Applicants, we can take instructions or deal with any one of you concerning all matters in connection with this Account; we, our, us, the Bank and Manulife Bank refers to Manulife Bank of Canada; Prime Lending Rate means the variable annual interest rate that Manulife Bank of Canada publishes from time to time as a reference rate, which can be accessed through our website at manulifebank.ca or by calling Manulife Bank at 1-877-765-2265; and Outstanding Balance means at any time the total amount that you have borrowed from us on the Account, plus all accrued interest, Other Charges (described in section 1) and Default Charges (described in section 1) that have been charged to the Account, less all amounts that you have paid on the Account. All capitalized terms that are not defined in this Agreement have the meaning ascribed to them in the Cost of Borrowing Summary in section 1 of this Application.
TERMS AND CONDITIONS
1. Credit Limit The Credit Limit that we establish for the Account is the maximum amount that may be outstanding under the Account for borrowed funds, accrued and unpaid interest and unpaid charges. The maximum amount of credit available under the Account, including any accrued but unpaid interest as described below, is a percentage of the net Insured Retirement Program (IRP), as determined by us, of an identified eligible life insurance policy (the Policy) from The Manufacturers Life Insurance Company (Manulife), less outstanding indebtedness under the Account (the Limit). If the IRP of your Policy rises, you may request an increase to your Limit. Any such request must be made via your representative. We retain the right to approve or reject your request to increase the Limit, in our sole discretion. Should we approve your request, you will be sent written notice of your new Limit. It is your responsibility to ensure that you do not exceed the Limit from time to time. To maximize the efficiency of your banking experience, Manulife Bank may increase your credit limit from time to time at our discretion if you did not check the checkbox in section 6 of the Insured Retirement Program Personal Line of Credit Application which would indicate you do not wish Manulife Bank to periodically increase the credit limit. Should Manulife Bank increase your limit, you will be notified by mail. Please note that a credit check will be completed when Manulife Bank reviews your account for any potential limit increase.
2. Security You agree that the security for the Account shall be the following (the Security):
• an assignment or hypothec on movable property in Quebec in favor of Manulife Bank of the Policy. Where we require it, you must deliver to Manulife Bank of Canada an assignment and/or hypothecation of the Policy in such form and amount as may be directed by us. You must repay the Outstanding Balance without regard to the fluctuation in value of the Policy. You authorize us to release a copy of this Agreement to Manulife or other issuer of the Policy for the purpose of enabling us to register both the nature and extent of our ongoing interest in the Policy but we will otherwise maintain confidentiality with respect to all information relating to this Agreement. Upon fulfillment of your obligations to us under this Agreement, we will notify Manulife or other issuer of the Policy that we are releasing our interest in the Policy and, if applicable, we will return to the Policy to you. The Security given to us under this Agreement is in addition to and not in substitution for any other security now or hereafter held by Manulife Bank.
You irrevocably appoint each of Manulife Bank, its officers, employees and nominees or any authorized agent of any of them to be your attorney with full power of substitution, to fill in any blanks in this Agreement or any related document, to do, make and execute all such statements, assignments, documents, acts, matters or things, with the right to use your name whenever we may deem necessary or expedient and to perform all acts of ownership in respect of the Policy.
Exercising Options - If you are not in default under this Agreement, or any security agreement relating hereto or any other agreement with us, and if you are not otherwise prohibited by and meet the terms of this or any other agreement with us, then you may exercise any option(s) provided under the Policy, provided that no option may be exercised without our prior written consent and unless the Policy remains in force at all times.
3. Access to Credit Upon approval, we will send you the Account Operating Agreement. Please refer to section 15 for conditions respecting your use of a banking access card. Subject to our right to refuse credit as provided in section 8 below, you may borrow funds on the Account by personalized cheque, debit or any other method we establish from time to time. You may only borrow funds in Canadian dollars. We will provide you with a banking access card (except where two or more signatures are required to make withdrawals) and personalized cheques.
Borrowing under the Insured Retirement Program - You acknowledge that it is important to be aware of the terms of this line of credit secured by the Policy. We require that the Outstanding Balance not rise above the IRP of the Policy or other benchmark designated by us (the Margin Ratio). Should this occur you must either reduce the Outstanding Balance, or increase the value of the IRP of the Policy to return the line of credit to the agreed percentage. If this does not occur, we may exercise our rights under this Agreement and under the assignment of the Policy to surrender the Policy. You acknowledge that this could result in insufficient funds being available to retire all outstanding balances on the line of credit. You acknowledge that we may sue you to cover any shortfall. A surrender of the Policy may also trigger a requirement to pay taxes owing on any policy gain realized and create a taxable benefit to the recipient. You understand that this is a demand credit facility, and therefore even if you maintain the Margin Ratio, we still have the right to demand payment in full of the Outstanding Balance at any time without giving you prior notice. If you do not pay the Outstanding Balance in full upon demand, then, in addition to any other remedy available to us, we may enforce our Security by any method permitted by law.
You acknowledge that the Outstanding Balance may exceed the Margin Ratio due to adverse interest rate spreads. The interest rate spread is the difference between the interest rate charged on the line of credit and the rate of growth of the Policy. The interest sensitivity analysis illustration that you received contemplates a constant interest rate spread. However, interest rates on the line of credit fluctuate with the Prime Lending Rate and depending on the investment choices made; investment returns generated within the Policy may not be guaranteed. Therefore, you acknowledge that it is important to conduct a “reality check” on a regular basis by reviewing actual investment returns within the Policy and balances on the line of credit to those forecast in the interest sensitivity analysis illustrations and make appropriate adjustments where necessary.
The Manufacturers Life Insurance Company Page 10 of 14 AB0807E (03/2018)
You understand that the terms of the Policy may allow you to determine the investment mix within the Policy and even to participate in potentially more volatile investments including equities and indices, as a means of potentially enhancing returns. However, you acknowledge that the performance of these investments is not guaranteed and indeed values may go down. Hence, it is possible that the IRP of the Policy may actually decline. You acknowledge that this may have a detrimental impact on the Margin Ratio such that the likelihood of you being called upon to remedy a breach of the Margin Ratio may be greater. You understand that if you are considering margining the IRP contained in the Policy, you should ensure that you have adequate financial resources available to remedy a breach of margin condition – particularly if an aggressive investment posture is taken at the same time as balances owing on the line of credit.
For illustration purposes only: Borrower A has a balance outstanding on a line of credit of $63,500 and the IRP contained within a policy assigned by the Bank is initially $100,000. The borrower must remain within a 75% Margin Ratio. Borrower A’s account value of the policy is concentrated 100% in indices. Borrower B has a similar financial arrangement. However, the account value of the policy is invested 50% in indices and 50% in Guaranteed Income Accounts. Now over a period of time North American stock markets decline by 30%. Borrower A’s IRP declines by approximately $30,000 such that the Margin Ratio is increased to 91%. Borrower B’s IRP has declined by $15,000. However, no remedial action is required as the borrower remains within the prescribed 75% Margin Ratio. Hence the borrower’s more conservative investment mix has significantly reduced the risk of a breach of the Margin Ratio.
4. Payments No minimum payment is required as long as the total debt and accrued interest does not exceed the approved Limit. However, if at any time the Outstanding Balance exceeds the Limit, you must repay the excess amount on the date that we require you to pay such amount. This is a demand credit facility, and therefore even if you repay the excess amount we still have the right to demand payment in full of the Outstanding Balance at any time without giving you prior notice. If you do not pay the Outstanding Balance in full upon demand, then, in addition to other remedy available to us, we may enforce our Security by any method permitted by law.
5. Interest See the Disclosure Statement as to how interest is calculated and charged. We may at any time change the Adjustment Factor that is used to determine the Interest Rate, but we will give you prior notice of any change. Interest will continue to be payable by you after we demand payment in full or we obtain a judgment against you for failure to pay. In all cases, interest will be charged on the amount of interest that has not been paid. This means that interest is compounded monthly.
6. Additional Costs and Expenses You agree to pay the costs and expenses described in Other Charges and Default Charges in section 1. If you are a resident of Quebec, any extra judicial fees we incur shall not exceed 15% of the Outstanding Balance and costs you owe us.
7. Paying Outstanding Balance and Costs by Direct Debit You authorize us to debit your account which you have specified for such purpose for any required payments and all costs, charges and other amounts that you owe us from time to time on the Account. If there are insufficient funds in such account and you do not make alternative payment arrangements with us, we may charge any amount that you owe to us to the Account or debit any other account that you maintain with us.
8. Our Right to Refuse Credit We may, without prior notice to you, refuse to permit any borrowing on the Account that would increase your Outstanding Balance if we have any concern as to your use of the Account or your ability to repay what you owe to us. If we allow you to exceed your Credit Limit at any time, we do not give up any of our rights, including our right to refuse you further credit without notice in the future.
9. Electronic Communication An electronic communication includes any communication by telephone, facsimile, wire, or email. The Bank will deem any electronic communication received from you or in your name to be duly authorized by you and you authorize the Bank to rely and act upon any such electronic communication. If a facsimile is received, the Bank will act on a signature purporting to be your signature. If you request, the Bank will forward copies of any statements, instruments or other documents by facsimile or other electronic transmission to the number or address provided by you from time to time, even though such electronic communication may not be considered secure. You will be deemed to have received the electronic communication on the day and time recorded by a fax machine of the Bank or for email, on the day recorded by the server of the Bank. You agree that any records regarding any electronic communication will be admissible in any legal, administrative or other proceeding as if such records were the original written documents. The Bank’s records will be conclusive as to the information contained in such electronic communications.
10. Default You will be in default if: (a) you fail to make a required payment when due or to fulfill any of your other obligations under this Agreement; (b) the Outstanding Balance is greater than the Credit Limit or we determine that the Outstanding Balance is greater than the Margin Ratio; (c) you are insolvent or have become bankrupt or commit any act of bankruptcy; (d) we believe on reasonable grounds that the Secured Assets will decline in value; (e) any statement you make to us is false in any material respect when it is made or it becomes false; (f) you are declared incompetent by a court or die; or (g) any event occurs which causes us to believe in good faith that we are unsecured or that the Policy is or is about to be placed in jeopardy or you surrender the Policy.
If you are in default, then, in addition to any other remedy available to us, we may enforce our Security by any method permitted by law. This is a demand credit facility, and therefore even if you are not in default, we still have the right to demand payment of the Outstanding Balance and enforce our Security at any time without giving you prior notice.
11. Continuing Effectiveness of this Agreement We may assign the amounts that you owe to us from time to time under this Agreement, with or without the benefit of this Agreement, to any other financial institution or other person or entity without your consent, but you may not assign this Agreement without our consent. In connection with such assignment by us, we may provide personal information about you to any assignee or their agents. This Agreement is also binding upon and benefits our successors and your heirs and personal representatives.
The Manufacturers Life Insurance Company Page 11 of 14 AB0807E (03/2018)
12. Complaint Handling Procedures If I have any questions or concerns about the products, services or the Bank’s representatives, I may contact the Bank at: 1-877-765-2265. If after speaking to Manulife Bank staff the complaint is not resolved to my satisfaction, I may ask to speak with the manager of the department. If I am still dissatisfied with the manager’s response, I may ask to have my concerns referred to senior management for an additional review. If after speaking to the staff and management the problem is not resolved to my satisfaction, I may write to:
Office of the Ombudsman Manulife Bank of Canada 500 King Street North PO BOX 1602 STN WATERLOO WATERLOO ON N2J 4C6
If I am not fully satisfied with the Bank Ombudsman’s response, I have the following recourse available to me:
The Ombudsman for Banking Services and Investments The Ombudsman for Banking Services and Investments (OBSI) is part of the Financial Services Ombuds Network (FSON), which is a national industry based dispute resolution system for consumers of financial services. The OBSI deals with concerns about banking and securities investment products and services that have not been resolved through the company’s dispute resolution system. Toll free telephone number: 1-888-451-4519 or from Toronto (416) 287-2877.
The Financial Consumer Agency of Canada The Financial Consumer Agency of Canada (FCAC) supervises federally regulated financial institutions to ensure they comply with federal consumer protection laws. If my complaint is about a consumer provision, I may contact the FCAC, in writing at: Financial Consumer Agency of Canada 427 LAURIER AVENUE WEST, 6th Floor OTTAWA ON K1R 1B9 By telephone: 1-866-461-3222 FCAC website: www.canada.ca
13. Amendments and Waivers We may amend this Agreement at any time without your consent, but we will give you 30 days prior advance notice of each amendment. We may in a particular circumstance waive or postpone the exercise of any right that we have or waive or postpone the performance of any obligation that you owe to us, but any such waiver or postponement only applies to the particular circumstance and is only effective if we confirm it to you in writing.
14. Giving Notice Any notice, including without limitation, a notice of amendment or any demand or other communication referred to in this Agreement may be forwarded to me by personal delivery, courier, by prepaid ordinary, registered, or certified mail or included in a monthly statement or by email or any other electronic communication mode that the Bank and I agree to use, at my last known address as shown in Manulife Bank's records. I agree that it shall be deemed that I have received the same on the date of delivery, if personally delivered or if delivered by courier or on the fourth (4) day after mailing by prepaid ordinary, registered, or certified mail, even if I do not actually receive it.
15. Governing Law This Agreement is governed by the laws of the province shown in the address for the primary Applicant above, and the laws of Canada applicable therein.
16. Language You expressly request that this Agreement and all related documents, including notices, be drawn up in the English language. Vous demandez expressément que la présente entente et tout document y afférent, y compris tout avis, soient rédigés en langue anglaise.
The Manufacturers Life Insurance Company Page 12 of 14 AB0807E (03/2018)
In this Statement, “you” and “your” refer to the applicant(s) or co-applicant(s) who is(are) the account holder(s). “We”, “us”, “our” and “the Bank” refer to The Manulife Bank of Canada and its related affiliates.
Updates to this Statement and further information about our privacy practices are posted to www.manulifebank.ca.
We collect, use, verify and disclose your personal information for identified purposes, and only with your consent, or as permitted or required by law. By signing the Application, you give your consent for us to collect, use, and disclose your personal information, as set out in this Personal Information Statement. Any alterations to the consent must be agreed to in writing by the Bank.
What personal information do we collect?
Depending on the product you have applied for, we collect specific personal information about you such as:
• Identifying information such as your name, address, telephone number(s), email address, your date of birth, occupation, driver’s licence, passport number or your Social Insurance Number (SIN)
• Information about how you use our products and services, and information about your preferences, demographics, and interests • Other personal information we may require to administer our business relationship with you
We use fair and lawful means to collect your personal information.
Where do we collect your personal information from?
• Your completed applications and forms • Other interactions between you and the Bank • Other sources, such as:
• Your advisor or authorized representative(s) • Third parties with whom we deal in issuing and administering your account now, and in the future • Your employer or credit reporting agencies • Public sources, such as government agencies, and internet sites
What do we use your personal information for?
We will use your personal information to:
• Help us properly administer the products and services that we provide and to manage our relationship with you • Confirm your identity and the accuracy of the information you provide • Evaluate your application, and determine the suitability of our product(s) for you • Comply with legal and regulatory requirements • Support and maintain the accuracy and integrity of the credit reporting system • Understand more about you and how you like to do business with us • Analyze data to help us understand our customers better so we can improve the products and services we provide • Determine your eligibility for, and provide you with details of, other products or services that may be of interest to you offered by us or our affiliates
or select third parties. These could include securities, insurance products, loan and investment products, credit products and reward programs.
Who do we disclose your personal information to?
• Persons, financial institutions and other parties with whom we deal in issuing and administering your account now, and in the future • Authorized employees, agents and representatives • Your advisor and any agency which has entered into an agreement with us and has supervisory authority, directly or indirectly, over your advisor,
and their employees • Any person or organization to whom you gave consent • Other institutions that may have granted you credit, credit bureaus and personal information agents with respect to your credit or financial history • People who are legally authorized to view your personal information • Service providers who require this information to perform their services for us (for example, data processing, programming, data storage, market
research, printing and distribution services and investigative agencies)
The abovementioned people, organizations and service providers are both within Canada and jurisdictions outside Canada, and would therefore be subject to the laws of those jurisdictions.
Where personal information is provided to our service providers, we require them to protect the information in a manner that is consistent with our privacy policies and practices.
How long do we keep your information?
The longer of:
• the time period required by law and by guidelines set for by the financial services industry, and • the time period required to administer the products and services we provide.
Withdrawing your consent
You may withdraw your consent for us to use your SIN or Business Number, if applicable, for non-tax administration purposes. You may also withdraw your consent for us to use your personal information to provide you with other service or product offerings, excluding those mailed with your statements.
You may not withdraw your consent for us to collect, use, retain or disclose personal information we need to issue or administer the account unless federal or provincial laws give you this right. If you do so, an account may not be issued and we may treat your withdrawal of consent as a request to terminate the account.
If you wish to withdraw your consent, phone the Bank’s customer care centre at 1-877-765-2265, or write to the Privacy Officer at the address below.
Accuracy and Access
You will notify us of any change to your contact information. You have the right to access and verify your personal information maintained in our files, and to request any factually inaccurate personal information be corrected, if appropriate. Much of your information is available to you online by accessing your account via the Internet at https://client.manulifebank.com/MBCClientUI. If you have a question, a concern, wish to receive more information about parties who have access to your information or about our privacy policies and procedures, and/or wish to review your personal information in our files or correct any inaccuracies, you may send a written request to:
Manulife Bank of Canada Privacy Officer 500 King Street N Waterloo, ON N2J 4C6
Please note the security of email communication cannot be guaranteed. Do not send us information of a private or confidential nature by email. By contacting us via email you are authorizing us to communicate with you by email.
The Manufacturers Life Insurance Company Page 13 of 14 AB0807E (03/2018)
PERSONAL PRE-AUTHORIZED PAYMENT AUTHORIZATION FOR LINE OF CREDIT PAYMENTS
By signing the attached Insured Retirement Program Personal Line of Credit Application (the “Application”) and attaching a void cheque (the “Cheque”), the Payor (which for the purpose of this authorization (the “Authorization”) includes the Applicant and any other person, partnership, corporation or other business entity who, by signing the Application as the individual Payor or the corporation Payor, as applicable, has agreed to this Authorization) authorizes Manulife Bank of Canada (“Manulife Bank”) to debit the account identified on the Cheque, or any replacement account (each, the “Account”), at the financial institution identified on the Cheque or any replacement thereof (the “Processing Institution”) for payments (which will vary in amount) when due under the line of credit granted to the Applicant by Manulife Bank, by submitting pre-authorized debit requests (each, a “PAD”) to the Processing Institution. The Payor warrants that all persons whose signatures are required to sign on the Account have signed the Application. The Payor may, by notice in writing sent to Manulife Bank at the address below, cancel this Authorization, which will be effective five (5) business days after it is received by Manulife Bank. A sample cancellation form and further information on the Payor’s right to cancel this Authorization is available from Manulife Bank or by visiting www.payments.ca
The Payor waives any requirement under the rules of Payments Canada that Manulife Bank give prior notice to the Payor of the amount and date of any debit to be made under a PAD authorized under this Authorization.
In the event that a PAD is not honoured because there were not sufficient funds (“NSF”) in the Account, the Payor authorizes Manulife Bank to process, at any time within thirty (30) days from the date that Manulife Bank submitted the PAD that was dishonoured, an additional PAD in the amount of $45.00 (subject to change in accordance with the agreement for the line of credit) to pay the NSF fee due to Manulife Bank.
The Payor agrees to inform Manulife Bank in writing of any change in the Account information at least five (5) business days before the date of the next debit. The Payor acknowledges (i) that delivery of this Authorization to Manulife Bank constitutes delivery to the Processing Institution, (ii) that the Processing Institution is not required to verify that a PAD has been issued in accordance with this Authorization or that the purpose of the payment for which the PAD was issued has been fulfilled by Manulife Bank as a condition to honouring a PAD, and (iii) that this Authorization applies only to the method of payment under the line of credit agreement and neither this Authorization nor cancellation thereof affects the obligation of the Applicant under that agreement.
The Payor has certain recourse rights if any PAD does not comply with this Authorization. For example, the Payor has the right to receive reimbursement for any PAD that is not authorized or is not consistent with this Authorization. To obtain more information on the Payor’s recourse rights, the Payor may contact Manulife Bank or visit www.payments.ca
Contact Information: Manulife Bank of Canada 500 KING STREET NORTH WATERLOO ON N2J 4C6 Tel: 1-877-765-2265
The Manufacturers Life Insurance Company Page 14 of 14 AB0807E (03/2018)
There are two ways in which a client can be identified. The Single Method allows you to view one piece of original Canadian government issued photo ID or Manulife may elect to review the client’s credit report. The Dual Method requires two separate documents that satisfy two of the three categories listed below. The following provides guidelines and examples of which documents can be used to verify the identity of the client.
SINGLE METHOD:
• Obtain valid, unexpired, original Canadian government (federal and/or provincial ONLY) issued photo identification;
OR
• Request Manulife Bank obtain credit file with at least 3 years’ history and validation that the name, address and date of birth matches that which has been provided by client.
DUAL METHOD:
You must validate any two of the three following categories:
1. Verify the client’s name and address (Category A below)
2. Verify the client’s name and date of birth (Category B below)
3. Verify the client’s name and confirm a Canadian financial account (Category C below)
NOTE: You cannot use the same source for the two categories of information you use to ascertain the client’s identity. You must use 2 separate sources.
Instructions:
1. You must verify the client’s identity using either the Single Method or Dual Method.
2. You must examine the original identification document provided to you by the client. It is not acceptable to view a photocopy or facsimile of the identification document, or online through a video conference or through any virtual type of application. Original documents could be paper or electronic but do not include those that have been photocopied, faxed or digitally scanned. For example, if the client receives their utility bill statement or mortgage statement downloaded or by email directly from the issuer then the client can email that to you or show you on their electronic device. The source of the document should be well known and reliable (e.g. federal/provincial/municipal levels of government, crown corporations, financial entities, utility providers).
3. For the Single Method, you cannot use a provincial health card for identification purposes where it is prohibited by provincial legislation. (e.g. Ontario, Manitoba or Prince Edward Island)
4. The document when presented must be valid (i.e. not expired or a temporary document), current (i.e. most recent version), in good condition, and without apparent alteration. If the identifying document has now expired, your business arrangement with Manulife must have been in place before the document expired.
5. Foreign documents are only acceptable under the Dual Method and are limited to a passport providing that the client is a Canadian resident and provides a record to confirm this (landed immigrant, work visa, CRA notice of assessment, etc.)
6. Manulife Bank & Trust cannot be a source for a Manulife Bank & Trust product.
The following are examples of documents that you may use and are not intended to be a complete or comprehensive list.
Documents or information to verify Name and address
Category A
Documents or information to verify Name and date of birth
Category B
Documents or information to verify Name and confirm a financial account
Category C
Issued by a Canadian government body
➢ Any card or statement issued by a Canadian government body (federal, provincial, territorial or municipal) • Canada Pension Plan (CPP) statement • Property tax assessment issued by a
➢ Benefits statement • Federal, provincial, territorial, and municipal
levels
➢ CRA documents: • Notice of assessment • Requirement to pay notice • Installment reminder/receipt • GST refund letter • Benefits statement
Issued by a Canadian government body
➢ Any card or statement issued by a Canadian government body (federal, provincial, territorial or municipal) • Canada Pension Plan (CPP) statement of
contributions • Original birth certificate • Marriage certificate or government-issued proof
of marriage document (long-form which includes date of birth)
• Divorce documentation • Citizenship certificate
Confirm that your client has a deposit account, credit card or loan account by means of:
➢➢ ➢
Bank statement Loan account statement (for example, mortgage) Letter from the financial entity holding the deposit account, credit card or loan account.
Issued by other Canadian sources
➢ Utility bill (for example, electricity, water, telecommunications)
➢ T4 statement ➢ Record of Employment ➢ Registered account statements (for example,
The Manufacturers Life Insurance Company AB0487E (06/2017)
Industry and Occupation Personal Application
It is a mandatory requirement to provide both the Industry and Occupation for each client when they are applying for a bank product. Please use this schedule of acceptable industries with corresponding occupations below when completing these felds on Manulife Bank applications. As you must use one of the options from this list, select the one that most accurately refects the client’s current employment.
Retail ■■ Art and Antique Dealer ■■ Auctioneer ■■ Clothing Store employee ■■ Convenience Store Employee ■■ Cashier / Service Representative ■■ Convenience Store Owner
Manulife, Manulife Bank, the Block Design, the Four Cube Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affliates under license.
