Prospectus Supplement for Index Linked Notes slide image

Prospectus Supplement for Index Linked Notes

Canadian Taxation Considerations The principal Canadian federal income tax consequences generally applicable to an initial purchaser of the Notes will be described in the pricing supplement for such Notes. Risk Factors An investment in the Notes is subject to the risks described below, as well as the risks described under "Risk Factors" in the Prospectus and the applicable pricing supplement. The Notes are not secured debt and involve greater risks than ordinary unsecured debt securities. Investing in the Notes is not equivalent to investing directly in the underlying interests comprising the Index or Indices to which the Notes are linked or the underlying interests comprising a Target Index. These risk factors shall be read with the necessary modifications to also apply to a Target Index and the underlying interests comprising a Target Index. The Notes are not appropriate investments for persons who do not understand the risks associated with structured products or derivatives. Prospective purchasers should carefully consider whether the Notes are suited to their respective particular circumstances. This section describes certain risks relating to an investment in the Notes. Prospective purchasers should read the following information about these risks, together with the other information in the Prospectus, this product supplement and/or the applicable pricing supplement, before investing in the Notes. Risk Factors Relating to the Offering of the Notes Generally An investment in the Notes may result in a loss The Notes do not guarantee the return of the entire amount of the principal of the Notes and, unless otherwise specified in the applicable pricing supplement for the Notes, the Bank will not repay a fixed amount of principal on the Notes on their maturity date. The return on the Notes may be zero, positive or negative and will depend on the direction of and percentage change in the levels of the Index or Indices over the applicable measurement period and the specified correlation between the direction of such change and the return on the Notes. For Notes linked to the positive performance of the Index, as specified in the applicable pricing supplement, the amount payable on the Notes may be less than the principal amount per Note even if the Index level rises at certain periods during the term of the Notes. In addition, for Notes linked to a basket of Indices, the level of one or more Indices could increase over the term of the Notes, but be offset or negated by decreases in the levels of the other Indices on which the return on the Notes is based. For Notes that are linked to the negative performance of the Index, the reverse scenario would apply and the return on the Notes may be positive if the change in the level of the Index is negative and may be negative if the change in the level of the Index is positive. Accordingly depending on the direction of and percentage change in the level of the Index measured at one or more points in time to one or more subsequent points in time, as specified in the applicable pricing supplement, the return on the Notes may be negative and a purchaser of the Notes may lose substantially all of the principal of the Notes. As a result, a purchaser of the Notes may receive at maturity less, and possibly significantly less, than the principal amount of such Notes. Subject to any minimum principal repayment as specified in the applicable pricing supplement, purchasers of Notes could lose their entire investment. The Notes are not suitable for all investors An investor should reach a decision to invest in Notes only after carefully considering, in conjunction with his or her own advisors (financial and tax), the suitability of the Notes in light of his or her investment objectives and the other information set out in the Prospectus, this product supplement and/or the applicable pricing supplement. None of the Bank, any Investment Dealer selling the Notes or any of their respective affiliates or associates makes any recommendation as to whether or not the Notes are a suitable investment for any person. PROD-SUP-ILN-11
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