EQ Bank Tax-Free Savings Account Agreement
By completing the online application to open an EQ Bank Tax-Free Savings Account (TFSA) with EQ Bank, you understand and agree to be bound by the terms and conditions below and agree to receive all communications and documents related to your TFSA in electronic format.
Part I – DEFINITIONS
Terms not otherwise defined in this document shall have the following meanings:
Act means the Income Tax Act (Canada), and the regulations thereto, both as amended from time to time.
Agreement or TFSA Plan Agreement means this EQ Bank Tax-Free Savings Account Agreement.
Application means the online application completed by you for a TFSA issued by Equitable Bank.
Equitable Bank, EQ Bank, we, us and Issuer mean Equitable Bank. EQ Bank is a tradename of Equitable Bank.
Holder, you and your mean the individual who completed the Application or, after such individual’s death, the Successor Holder. Holder must be at least 18 years of age at the time the Application is completed.
Plan means the EQ Bank TFSA established in accordance with your Application.
Qualifying Arrangement means an arrangement as defined in subsection 146.2(1) of the Act.
Successor Holder means the individual designated to become and who becomes the holder, as defined by subsection 146.2(1) of the Act and as further set out in this Agreement.
TFSA means a Tax-Free Savings Account, as defined in section 146.2 of the Act.
Part II – REGISTRATION
By completing the Application, you are requesting us to file an election with the Minister of National Revenue to register the Qualifying Arrangement as a TFSA pursuant to Section 146.2 of the Act. For this purpose, you confirm that the Social Insurance Number and address you provided in your Application are correct. Equitable Bank hereby agrees to act as your depositary for the registered Plan. The Plan complies with prescribed conditions.
Part III – CONTRIBUTIONS
Cash contributions (“Contributions”) may be made to your Plan solely by you. Contributions are subject to any minimum amounts we may establish from time to time and to the terms and conditions of any applicable Investment Option. We reserve the right, at any time, to discontinue a particular Investment Option, to limit the amount which may be invested or reinvested into your Plan or any Investment Option, or to limit or refuse to accept a Contribution or any part thereof for credit to your Plan. All Contributions will be kept on deposit. They may not be self-directed.
You are solely responsible for ensuring that Contributions do not exceed the maximum amount permitted by the Act or any applicable provincial legislation. Contributions in excess of applicable limits will be subject to income tax. It is your responsibility to file an income tax return and to pay all taxes required under Part XI.01 of the Act.
Part IV – INVESTMENT OPTIONS
Contributions to your Plan may be invested by you in the following investment options (each, an “Investment Option”). We reserve the right to offer additional Investment Options or to limit the Investment Options available to you.
- TFSA Savings Account
Contributions made to your TFSA Savings Account will earn interest at such rates and on such terms as may be established by us from time to time. We guarantee the repayment of Contributions made in accordance with this Investment Option and the interest earned thereon, subject to this Agreement. Please note that a TFSA Savings Account will be opened at the time you complete your Application, regardless of whether you choose to make Contributions to that particular Investment Option.
- TFSA Guaranteed Investment Certificate (“TFSA GIC”)
Contributions made to a TFSA GIC will be non-redeemable and may be invested based on fixed term options that are made available from time to time. Subject to this Agreement, we guarantee the repayment of Contributions invested in a TFSA GIC. Interest earned on such Contributions will be credited at such times and on such terms as we may establish from time to time.
- maintain an account for you which will record particulars of all contributions to the Plan and your Investment Options; and
- prepare and forward to you such receipts, other forms, documents and information as may be required to be provided by the Act.
Part V – DISTRIBUTIONS/WITHDRAWALS
In accordance with paragraph 146.2(2)(d) of the Act, your Plan permits for distributions to be made to reduce the amount of tax otherwise payable by you under Section 207.02 or Section 207.03 of the Act.
You may request to withdraw funds from your Plan. This request will be subject to such notice period as we may from time to time require as well as the terms and conditions of any applicable Investment Option.
Part VI – FEES
Fees applicable to your Plan shall be disclosed to you in writing (i) at the time you completed your Application, or (ii) in the case of a new or revised fee, 60 calendar days before the new or revised fee takes effect. Fees are subject to change from time to time.
Part VII – TRANSFERS
Upon your written direction, we shall transfer all or any part of the property held under your Plan (or an amount equal to its value) to another TFSA you may hold in accordance with paragraph 146.2(2)(e) of the Act with another financial institution.
Part VIII – USE OF TFSA AS SECURITY FOR A LOAN
You may not use your Plan, or your interest therein, as security for a loan or other debt unless agreed to by us in writing. If agreed to by us, then:
- the terms and conditions of the indebtedness must be those which persons dealing at arm's length with each other would have entered into; and
- it must be reasonable to conclude that none of the main purposes for such use is to enable a person (other than you) or a partnership to benefit from the exemption from tax provided by the Plan.
Part IX – SUCCESSOR HOLDER ELECTION AND BENEFICIARY DESIGNATION
If the laws of your province of residence allow, you may, subject to such laws and to this Agreement: (i) elect to have your spouse or common-law partner become successor holder of the Plan after your death; and/or (ii) designate any one or more persons to receive the remaining proceeds of your TFSA as a lump sum payment in the event of your death (a “Designated Beneficiary”). Such election and/or designation may be made, changed or revoked by you before your death by will or by written instrument in a form acceptable to us (an “Instrument”).
Part X – DEATH OF HOLDER
Upon death of the Holder, we will, in accordance with the most recently dated Instrument we have in our records and once we have received all documents we require, pay the proceeds remaining in your Plan, less required income tax deductions, to your Designated Beneficiary(ies), or otherwise process the assumption of your TFSA by any successor holder, as applicable. We will notify your estate representative of any resulting tax liability. In instances where there is no Designated Beneficiary, or where the Designated Beneficiary’s death has preceded your own, Plan proceeds will be paid by single payment, less required income tax deductions, to your estate. Once the above payment has been made, Equitable Bank will be considered fully discharged from any further liability with respect to your Plan.
Part XI – EXCLUSIVE BENEFIT
In accordance with paragraph 146.2(2)(a) of the Act, we shall maintain your Plan for the exclusive benefit of you, the Holder. At all times while there is a Holder of the Plan, no person or entity that is neither the Holder nor the Issuer of the Plan shall have rights under the Plan relating to the amount and timing of distributions and the investing of funds.
Part XII – TERMINATING YOUR PLAN
You may request to terminate you Plan by contacting us. Termination will be subject to the completion of any outstanding transactions. We will pay to you the balance of your Plan, subject to the terms of any applicable Investment Option, within 30 calendar days of receiving notice from you that you wish to terminate your Plan.
Part XIII – RESIDENCY
You agree to inform us without delay if you cease to be a resident of Canada for Canadian tax purposes. Notwithstanding the above, you acknowledge that you will be solely responsible for any tax consequences arising from Contributions made at a time in which you are a non-resident for Canadian tax purposes.
Part XIV – INDEMNITIES
Equitable Bank shall in no way be liable for, or in respect of, any taxes, interest or penalties which may be imposed on it in respect of your Plan, whether by way of assessment, reassessment or otherwise, or for any other charges imposed by a governmental authority, as a result of payments made from your Plan, the purchase, sale or retention of any investment, or otherwise. You and your heirs, executors and administrators shall at all times indemnify and hold Equitable Bank harmless in respect of any such taxes, interest, penalties or charges. Equitable Bank may reimburse itself for or may pay any of the taxes, interest, penalties, or charges for which it is indemnified hereunder using assets held in your Plan (other than those taxes, penalties, interest and charges that Equitable Bank is liable for under the Act and that cannot be charged out of the assets of your Plan).
Part XV – LIMITATION OF LIABILITY
Equitable Bank shall in no way be liable for, or in respect of, any losses suffered or incurred by your Plan, or by you or any beneficiary relating to your Plan, caused by or resulting from any purchase, sale or retention of any investment, unless such loss is caused by or results directly from our dishonesty, bad faith, wilful misconduct, gross negligence or reckless disregard.
Part XVI – AMENDMENTS
We may, from time to time and at our discretion, amend, modify or revise the terms and conditions applicable to your Plan by giving you at least 30 calendar days’ written notice, provided that any such amendments, modifications or revisions do not have the effect of disqualifying the Plan under the Act or any provincial legislation to which you are subject.
Part XVII – NOTICE AND COMMUNICATIONS
Unless otherwise agreed to by us, any communication given by you to us under this Agreement must be delivered or mailed, postage prepaid, to our Toronto, Ontario office. Such communication shall be deemed delivered on the day it is received by us. You understand and consent to the electronic delivery of notices and documents for your Plan in accordance with our Consent for Delivery of Electronic Documents. We reserve the right to provide you with notices and document by paper delivery if we are unable to provide electronic delivery, have reason to believe you may not have received the notices and documents, or if we, in our sole discretion, otherwise consider it appropriate. Any paper delivery will be provided to you at the most current mailing address that we have on file for you.
Part XIII – BINDING NATURE
This Agreement is binding on the Holder and their heirs, successors and legal representatives.
Part XIX – COMPLAINTS OR CONCERNS
We are committed to delivering a high standard of service to our customers. If you have a concern or a complaint about your Plan or any service we provide, we want to hear from you so that we can try to make things right as quickly and efficiently as possible. Our Customer Complaint Handling Procedures set out full details of our process and are available on our website (eqbank.ca) and in our offices.
Part XX – PRIVACY AGREEMENT
By completing the Application, you consent to the collection, use and disclosure of your personal information in accordance with EQ Bank's Privacy Agreement. The Privacy Agreement may be amended or replaced from time to time and we will post the revised Privacy Agreement on our website (eqbank.ca). The Privacy Agreement forms part of this Agreement, and your acceptance of the terms of this Agreement indicates that you also agree to the terms of the EQ Bank Privacy Agreement. It is important that you review our Privacy Agreement carefully prior to opening a Plan. We reserve the right to comply with any third party demands which have been issued under federal or provincial legislation, or any court order we receive in respect of your Plan. You agree that we will not be liable to you in any way for complying with any such third party demands or court orders issued on or against your Plan.
Part XXI – NOT AVAILABLE IN QUEBEC
The Plan is not available to residents of the province of Quebec. If you become a resident of Quebec after you open your Plan, we reserve the right to require that you immediately transfer Plan proceeds to another issuing institution, after which time we may deregister your Plan.
Part XXII – APPLICABLE LAW
This Agreement shall be governed and construed in accordance with the laws of the province in which you reside and the laws of Canada applicable therein. If you do not live in Canada, the laws of the Province of Ontario and the laws of Canada applicable therein shall apply.
Part XXIII – RESIGNATION
We may resign as your depositary for the Plan at any time by delivering 60 calendar days' notice of our resignation to you. In the event of our resignation, you shall appoint a successor issuer who shall be acceptable to us. We shall deliver the property comprised of the investments within the TFSA and all related records and documents, and shall execute all such deeds and assurance and do all such things as may be required in order to ensure the continued and uninterrupted operation of the TFSA. Should you neglect or refuse to appoint a successor issuer who shall be acceptable to us, we reserve the right to transfer to you the property held under your Plan (or an amount equal to its value) as a withdrawal from your TFSA.
EQ Bank Contact Information
Should you have any further questions about a TFSA, please contact us by telephone or email as set out below.
Toll Free Phone: 844-437-2265 (844-4EQ-BANK)
You can find more information about us and about our products on our website at: www.eqbank.ca