Wholesale Banking - Positioned for Growth
TD Global Legislative Covered Bond Program
Key Highlights
Covered Bond Collateral
Housing Market Risks
Tests and
Credit Enhancements
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Canadian residential real estate property with no more than 4 residential units
Uninsured conventional first lien assets with original loan to value ratio that is 80% or less
Latest property valuation shall be adjusted at least quarterly to account for subsequent price adjustments using
the Indexation Methodology
Asset Coverage Test
Amortization Test
Valuation Calculation
Level of Overcollateralization
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Asset Percentage
Reserve Fund
Prematurity Liquidity
OSFI limit¹
Required Ratings and
Ratings Triggers
◉
No less than one Rating Agency must at all times have current ratings assigned to bonds outstanding
All Ratings Triggers must be set for:
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Replacement of other Counterparties
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Establishment of the Reserve Fund
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Pre-maturity ratings
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Permitted cash commingling period
Interest Rate and
Currency Risk
Ongoing Disclosure
Requirements
Management of interest rate and currency risk:
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Interest rate swap
Covered bond swaps
Monthly investor reports shall be posted on the program website
Plain disclosure of material facts in the Public Offering Document
Audit and Compliance
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Annual specified auditing procedures performed by a qualified cover pool monitor
Deliver an Annual Compliance Certificate to the Canada Mortgage and Housing Corporation ("CMHC")
TD
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