Investment Solutions for Municipalities

CIBC Appendix 1: How Bail-In Is Expected To Work When OSFI deems a bank has ceased to or may be about to cease to continue to be viable, it may trigger temporary takeover of the bank and carry out the bail-in conversion of NVCC capital and bail-in debt to common equity • At bail-in, all NVCC instruments would be fully converted to common equity based on pre-determined conversion ratios Portion of the bail-in debt that would be converted to common equity as well as the conversion ratio would be determined by the authorities on a case-by-case basis 1. Pre-Loss Balance Sheet Other Senior Loss 2. Loss Event 3. Post Bail-in Liabilities Other Senior Liabilities Bail-in Debt Bail-in Debt NVCC Sub Debt Assets Assets Assets NVCC Sub Debt NVCC Preferred Equity NVCC Preferred Equity Common Equity Common Equity CONFIDENTIAL Other Senior Liabilities Bail-in Debt Common Equity 32 32

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