The shares of CheckMark are held by a Canadian publicly listed company. Because of this, Bonds issued by CheckMark are considered to be “qualified investments” to be held in RRSP accounts.

The rate of interest paid on the Bonds will depend on the Class of Bonds that is purchased. The annual rate of interest ranges between 4% and 6% annually.

CheckMark has gone through an extensive due diligence process with its designated Trust Companies for approval to be held in RRSP accounts. Your current RRSP provider has not had to opportunity to conduct the necessary legal review to hold the CheckMark Bonds.

The Income Tax Act allows tax-free transfers between multiple RRSP accounts. Provided that the transfer is made directly from one Trust Company to another, there are no tax consequences.

All Trust Companies charge fees for holding a RRSP account. Our designated Trust Company will charge a set-up fee of $165 and an annual fee of $50 for holding the account with the CheckMark Bonds. Other RRSP transactions will be billed directly in accordance with the Trust Company’s current fee schedule.

Interest on the Bonds is calculated on a quarterly basis and is reinvested in additional Bonds. Bonds representing the accrued interest are invested in additional Bonds and credited to the RRSP account on an annual basis. In this manner, interest earned on the CheckMark Bonds is compounded on a tax-free basis until the Bonds are redeemed.

Interest on the Bonds will be reinvested for a five year period. At the end of five years, CheckMark will redeem 50% of the original Bonds together with the Bonds representing the accrued interest over the five year period. At the end of ten years, the remaining Bonds together with additional accrued interest will be fully redeemed for cash.

Yes. Once the redemption has taken place, you may transfer the cash to any RRSP account of your choosing. If any cash is withdrawn out of the RRSP, then it will be taxable by the CRA when added to your income.

Both of our designated Trust Companies permit RRSP holders to view the current value in their RRSP’s by logging on to their online account. The online account will reflect the value of both the original Bonds together with the additional Bonds representing accrued interest.

As a consumer loan, you may prepay your consumer loan with Alderwood at any time without any penalty. The amount of your prepayment will be applied to redeem an equivalent number of Bonds held in your RRSP. If the whole consumer loan is prepaid, then all of the Bonds held in your RRSP will be redeemed for cash.

If your RRSP is underfunded to purchase a sufficient number of Bonds, then you may make a new cash contribution to the RRSP from your own financial resources. New contributions may be made provided that you have sufficient “contribution room” available to you. For all new contributions you will receive a tax receipt which will entitle you to a tax deduction equal to your contribution.

Yes. It is not a requirement to obtain a consumer loan from Alderwood in order to qualify for the purchase of CheckMark Bonds.

No. Neither the purchase of the Bonds or the consumer loan from Alderwood will be reported to any credit agency and will have no effect on your credit score or future ability to obtain loans.

The CheckMark Offering Memorandum contains full disclosure of all material facts concerning an investment in the Bonds. The Offering Memorandum will be provided to you by our Exempt Market Dealer whose Dealing Representative can answer all of your questions.

The Securities Regulations in Canada provide income and net worth guidelines that will permit the EMD to determine whether you are an “eligible investor” who is qualified to purchase Bonds. As well the EMD will review your total investments and assets to determine whether the investment in Bonds is appropriate for your situation.

The EMD’s Dealing Representative is required to have you complete a “Know Your Client” or “KYC” form. This is a confidential document that will set forth personal information about yourself, your income and your investment experience. As well you will be required to complete a Subscription Agreement with the Dealing Representative that will confirm that you understand the potential risks in making the investment together with confirmation of parts of your personal information. All of this process will be conducted online with your computer or phone and can be signed electronically.

No. There is no fixed upper limit. The amount that you can invest will depend upon the funds that are held in your RRSP and your personal circumstances as determined by the EMD. If you wish to invest $100,000 or more, there are additional financial qualifications in order to qualify as an “accredited investor”. The EMD will be able to explain the legal requirements for every investment level.

Yes, provided that both you and your spouse are qualified as eligible investors. You will be required to open two new RRSP accounts with the Trust Company for each of yourself and your spouse separately.

You will be required to turn your RRSP into a RRIF when you reach the age of 71. Our Trust Company can assist you in setting up the RRIF. You may continue to hold the Bonds in the RRIF subject to the requirement to make taxable cash withdrawals every year based upon the total value in all of your RRIF’s.

No. The EMD only requires your verbal confirmation of the information required to complete the KYC and the Subscription Agreement. The Dealing Represent will determine whether you are qualified based upon this verbal information.

Yes. In accordance with the usual practise in the investment industry, the EMD charges a fee calculated as a percentage of the value of the Bonds purchased. This fee is built into the Lender Fee for the consumer loan and will be paid from your RRSP funds.

Canadian law requires that questions regarding investment products, including the Bonds, be answered by a someone who is licensed to give investment advice as an Exempt Market Dealer. This is for your own protection.