EQ Bank First Home Savings Account Agreement
By completing the online application to open an EQ Bank First Home Savings Account 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 EQ Bank First
Home Savings Account 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 FHSA Plan Agreement means this EQ Bank First Home Savings Account Agreement.
Application means the online application completed by you for an FHSA issued by Equitable Bank.
Equitable Bank, EQ Bank, we, us and Issuer mean Equitable Bank. EQ Bank is a trade name of Equitable Bank.
FHSA means a first home savings account as defined in subsection 146.6(1) of the Act.
Holder, you and your mean a Qualifying 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
Maximum Participation Period means the period as defined in subsection 146.6(1) of the Act.
Plan means the EQ Bank First Home Savings Account established in accordance with your Application.
Qualifying Arrangement means a qualifying arrangement as defined in subsection 146.6(1) of the Act.
Qualifying Individual means a qualifying individual as defined in subsection 146.6(1) of the Act.
RRSP means a registered retirement savings plan as defined in subsection 146(1) of the Act.
RRIF means a registered retirement income fund as defined in subsection 146.3(1) of the Act.
Successor Holder means the individual designated to become and who becomes the holder, as defined by subsection 146.6(1) of the Act and as further set out in this Agreement.
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 an FHSA pursuant to Section 146.6 of the Act. For this purpose, you confirm that the Social Insurance
Number, date of birth 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 any prescribed conditions.
Part III – CONTRIBUTIONS
Cash contributions (“Contributions”) may be made to your Plan solely by you during your Maximum Participation Period. 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. Contributions are made under the Plan to the Issuer in consideration of, or to be used, invested or otherwise applied for the purpose of, the Issuer making distributions under
the arrangement to the Holder. All Contributions will be kept on deposit. Contributions may not be self-directed.
Contributions will only qualify for tax exemption if made in accordance with Section 146.6 of the Act. You are solely responsible for ensuring that Contributions do not exceed the maximum amount permitted by the Act. Contributions in excess of applicable
limits will be subject to applicable taxes. It is your responsibility to file an income tax return and to pay all taxes required under Part XI.01 of the Act.
In cases where your Plan has an excess FHSA amount, you may request, in writing, that we refund you the amount determined in accordance with paragraph 146.6(2)(d) of the Act. It is your responsibility to determine the amount of this refund. In the absence
of any direction by you, we may, in our sole discretion, liquidate any investments held under your Plan in order to provide the refund. Refunds made pursuant to this section will be subject to the terms and conditions of any applicable Investment
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.
- EQ Bank FHSA Savings Account
Contributions made to your EQ Bank FHSA 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 an EQ Bank FHSA Savings Account will be opened at the time you complete your Application, regardless of whether you choose to make Contributions to that particular Investment
- EQ Bank First Home Savings Account Guaranteed Investment Certificate (“FHSA GIC”)
Contributions made to an FHSA 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 an FHSA 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 146.6(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 207.021 of the Act.
You may request to withdraw funds from your Plan prior to the end of your Maximum Participation Period. 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
Part VI – MAXIMUM PARTICIPATION PERIOD
You must contact us prior to the end of your Maximum Participation Period to discuss the transfer of Plan proceeds out of the Plan. At the end of your Maximum Participation Period, or such earlier date as instructed by you, Plan proceeds must be withdrawn
from the Plan on a taxable basis or transferred in accordance with Part VIII – Transfers in this Agreement.
Failure by you to provide us with sufficient instructions at least 30 calendar days before the end of your Maximum Participation Period may result in us deregistering your Plan and paying to you a lump-sum cash payment of Plan proceeds, less all taxes we are required to withhold.
Part VII – 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 VIII – DIRECT TRANSFERS
Upon your written direction, we shall directly transfer all or any part of the property held under your Plan (or an amount equal to its value) to another FHSA you may hold, or to a RRSP or a RRIF under which you are the annuitant, in accordance with
paragraph 146.6(2)(e) of the Act.
Part IX – DATE OF BIRTH OF HOLDER
You certify that the date of birth you provided in your Application is true and agree to provide us with any evidence we may request at any time to further confirm this date.
Part X – NO PLEDGE, ASSIGNMENT OR USE OF FHSA AS SECURITY FOR A LOAN
Property held under your Plan may not be pledged, assigned or in any way alienated as security for a loan. Neither your Plan nor the property held under your Plan may be used as security for a loan.
Part XI – SUCCESSOR HOLDER ELECTION AND BENEFICIARY DESIGNATION
If you reside or are domiciled in a jurisdiction in which, according to applicable law, a participant in an FHSA may validly designate a beneficiary or successor holder, 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 EQ Bank First Home Savings Account 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 XII – DEATH OF HOLDER
Upon death of the Holder during the Maximum Participation Period, 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 EQ Bank First Home Savings Account by any successor holder, as and if 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 XIII – EXCLUSIVE BENEFIT
In accordance with paragraph 146.6(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 XIV – TERMINATION OF YOUR PLAN
You may request to terminate your Plan at any time by contacting us. Unless terminated earlier by you, your Plan will cease to be an FHSA after the end of your Maximum Participation Period.
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 XV – 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 XVI – 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 XVII – 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 XVIII – NO RIGHT OF SET-OFF
We will not use the property held under the Plan to offset any debt or obligation owed by you to us. We may, however, subject to the applicable agreement(s), use the property held under any other account you have with us to offset any debt or obligation
you owe us relating to your Plan.
Part XIX – 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/territorial legislation to which you are subject.
Part XX – 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 documents 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 XXI – BINDING NATURE
This Agreement is binding on the Holder and their heirs, successors and legal representatives.
Part XXII – 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 product or 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 XXIII – 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/territorial 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
Part XXIV – 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 transfer Plan proceeds to another issuing institution, after which time we
may deregister your Plan.
Part XXV – APPLICABLE LAW
This Agreement shall be governed and construed in accordance with the laws of the province or territory 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 XXVI – 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 EQ Bank First Home Savings Account 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 FHSA. 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 FHSA.
EQ Bank Contact Information
Should you have any further questions about an EQ Bank First Home Savings Account, 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 and services on our website at: www.eqbank.ca