Canadian Bail-in Regime Update

Covered Bond Structural Summary - Triggers Title Trigger Event Guarantor • • • • • • . . Event of Default • • • Trigger Servicer Event of Default, not remedied within 30 days Issuer Event of Default (other than insolvency), not remedied within 30 days Insolvency Event with respect to the Seller Acceptance of any offer to sell Loans to any purchaser other than the Seller or the relevant Originator Request from Guarantor, due to sale of selected loans to third party An order from a court, regulatory authority, or eligible organization Seller downgraded below Baa1/BBB+ by Moody's/Fitch Default by Guarantor on Covered Bonds principal and interest for period of 7 days or more Failure of Guarantor to perform or observe any other obligation under the Covered Bond programme for more than 30 days Insolvency Event with respect to Guarantor Failure to satisfy Amortization Test on any Calculation Date following Notice to Pay Guarantee is, or claimed to be, not in full force and effect Failure to take prescribed remedial action within specified timeframe after ratings trigger breach (unless the Guarantor is independent)1 · Consequences Notice of loans' sale given by Issuer to Borrowers Borrowers notified to make payments to the Standby Account Bank for the account of the Guarantor • Perfection of legal assignment of mortgage loans and related security to Guarantor Service of Guarantor Acceleration Notice to Guarantor Covered Bonds become due and payable against the Guarantor Cover assets must be sold to meet Covered Bond payments CIBC 1. Note the exception does not apply if the triggers are the Account Bank Threshold Ratings, Standby Account Bank Threshold Ratings, Cash Management Deposit Ratings and the Servicer Deposit Threshold Ratings 12 62

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