Questions and Answers
The following questions and answers have been prepared to assist Sales Agents and prospective Bond purchasers.
Bond purchasers are also encouraged to consult the Terms and Conditions of the Bonds.
Purchasing Questions
- When can I expect to receive my Confirmation Statement and/or Commemorative Certificate related to my purchase of Alberta Capital Bonds?
- Who can I call if I have questions?
- What is the interest rate on the bonds?
- When are the bonds going on sale?
- Where can the bonds be purchased?
- Where can I find the Terms and Conditions of the Bonds?
- Are Alberta Capital Bonds insured by the Canadian Deposit Insurance Corporation (CDIC)?
- What are the minimum and maximum purchase amounts?
- Can Bonds be purchased after the Selling Period?
- Will I receive a Bond certificate when I purchase Alberta Capital Bonds?
- What is "Right of Survivorship"?
- When should I select "Right of Survivorship" on the Purchase Application (Form A1)?
- What does "Survivor" or the abbreviation "JTWROS" or "JT TEN" after the registered owners' names on the Confirmation mean?
General Questions
- What should I do if I change my mailing address or banking information?
- When are T5 slips delivered?
- How is the interest calculated on my compound interest Bonds?
- Are Alberta Capital Bonds insured by the Canada Deposit Insurance Corporation (CDIC)?
- Are Alberta Capital Bonds redeemable?
- Are Alberta Capital Bonds transferable?
Personal Information Questions
- What personal information is collected?
- How will this information be used?
- What legislation applies to the collection of personal information by the Province?
Purchasing Questions and Answers
Q: When can I expect to receive my Confirmation Statement and/or Commemorative Certificate related to my purchase of Alberta Capital Bonds?
A: The Confirmation Statements and Commemorative Certificates will be mailed out beginning Wednesday, May 5, 2010 and bondholders should expect to receive them sometime soon thereafter.
Q: Who can I call if I have questions?
A: You may contact the Registrar, Computershare Trust Company of Canada, at
1-877-982-8761.
Q: What is the interest rate on the bonds?
A: The interest rate on the bonds is 3.3 per cent. Interest payments on the bonds will be made annually on March 15, with interest on the bonds paid in equal annual installments or compounded annually and paid at maturity.
This means, for example, that someone who invests $1,000 would earn a return of either:
$165 in total, paid out in five equal annual payments of $33, or
$176.26 in total, paid out in one payment when the bond matures after five years. This payment is higher as the investor earns interest on interest.
Q: When are the bonds going on sale?
A: The bonds will be sold beginning on February 16, with the sales period ending on
March 1, OR when the sales target of $100 million is achieved, whichever comes first.
Q: Where can the bonds be purchased?
The bonds can be purchased through participating banks and financial institutions. Click here for a list.
Q: Where can I find the Terms and Conditions of the Bonds?
A: The Terms and Conditions can be found on the reverse side of the Purchase Application (Form A1). The Terms and Conditions are also available on this website, and can be obtained directly from the Registrar.
Q. Are Alberta Capital Bonds insured by the Canadian Deposit Insurance Corporation (CDIC)?
A. No, Alberta Capital Bonds are not insured by CDIC. They are backed 100 per cent by the Government of Alberta.
Q: What are the minimum and maximum purchase amounts?
A: The minimum purchase amount of 2010 Alberta Capital Bonds is $1,000, and the maximum purchase amount is $25,000 per beneficial owner. Purchases may be in multiples of $1 after the first $1,000. When Bonds are owned jointly, the minimum purchase size remains unchanged; however, the maximum purchase limit is $25,000 multiplied by the number of joint owners.
Q: Can Bonds be purchased after the Selling Period?
A: No. Bonds may only be purchased during the Selling Period, February 16, 2010 to March 1, 2010 or as otherwise indicated by the Minister of Finance and Enterprise.
Q: Will I receive a Bond certificate when I purchase Alberta Capital Bonds?
A: Negotiable Bond certificates will not be issued.
Purchasers should keep their copy of the Purchase Application (Form A1), which includes the Terms and Conditions of the Bonds on the reverse. Following the selling campaign, Bondholders who purchased their Bonds through a bank or other financial institution will receive a Confirmation statement in the mail directly from the Registrar. The Registrar will also send a commemorative certificate on behalf of the Province to all such Bondholders. Bond ownership records will be maintained by the Registrar.
In the case of purchases made through an investment dealer and held in the dealer’s book-based system, the investment dealer will maintain the Bond ownership registry for those Bonds. Bondholders who purchase their Bonds from an investment dealer may request a commemorative certificate through their investment dealer.
Q: What is "Right of Survivorship"?
A: In the event of the death of a Bondholder for jointly owned Bonds, "Right of Survivorship" allows for the Bonds to become the property of the surviving Bondholder(s) outside of the deceased Bondholder’s estate.
Q: When should I select "Right of Survivorship" on the Purchase Application (Form A1)?
A: If the Bonds are being purchased with joint ownership, selecting "Right of Survivorship" on the Application Form (Form A1) indicates in the event of death of a Bondholder, you wish the Bonds to become the property of the surviving Bondholder(s).
Q: What does "Survivor" or the abbreviation "JTWROS" or "JT TEN" after the registered owners’ names on the Confirmation mean?
A: "Survivor", "JTWROS" or "JT TEN" means the Bond is registered as "joint tenant with right of survivorship". If Box #2 ("With Right of Survivorship") is checked off on the Purchase Application (Form A1), "survivor", "JTWROS" or "JT TEN" is printed on the Confirmation following the names of the joint Bondholders.
For example, John Doe and Mary Doe and survivor may be printed on the Confirmation as:
John Doe and Mary Doe and survivor, or
John Doe and Mary Doe JTWROS, or
John Doe and Mary Doe JT TEN.
General Questions and Answers
Q: What should I do if I change my mailing address or banking information?
A: Registered owners should advise the Registrar of any change in mailing address as soon as possible and must advise the Registrar in writing of any changes in banking arrangements, including a copy of a void cheque, at least five (5) business days prior to any Interest Payment Date or Maturity Date. You will need to provide the exact name of the registered owner(s), the complete account number, and the old and new addresses.
The account number will be provided to you on the Confirmation statement.
You may contact the Registrar at:
Computershare Trust Company of Canada
Attention Alberta Capital Bond Co-ordinator
9th Floor, 100 University Avenue
Toronto, Ontario
M5J 2Y1
1-877-982-8761
Q: When are T5 slips delivered?
A: T5 slips are issued annually by the Registrar, and are mailed directly to the Bondholder at the last known registered address.
In the case of Bondholders who beneficially hold their Bonds through an investment dealer, the T5 slip will be mailed from the investment dealer directly.
Q: How is the interest calculated on my compound interest Bonds?
A: Interest on compound interest Bonds is compounded annually on March 15 up to the Maturity Date at the fixed rate set for the Bonds. Interest on compound interest Bonds accumulates, and is payable to the Bondholder on the Maturity Date of the Bonds.
Q: Are Alberta Capital Bonds insured by the Canada Deposit Insurance Corporation (CDIC)?
A: No. Alberta Capital Bonds are not insured by CDIC. The Bonds are backed 100% by the Province of Alberta.
Q: Are Alberta Capital Bonds redeemable?
A: No. Alberta Capital Bonds are not redeemable. Certain exceptions exist, such as death of the Bondholder or demonstrated financial hardship. See the Terms and Conditions, or contact the Registrar for further information.
Q: Are Alberta Capital Bonds transferable?
A: The Bonds are not transferable except:
- When being transferred by an executor or administrator of a deceased individual’s estate to that individual’s beneficiary.
- When transferred from an individual to an RRSP or vice versa provided beneficial ownership does not change.
You may contact the Registrar for the specific transfer requirements.
Personal Information Questions and Answers
Q: What personal information is collected?
A: Any information about the purchaser or beneficial owner on the Purchase Application (Form A1) collected by the Province of Alberta for Alberta Capital Bonds is personal information. This includes name, address, telephone number, purchase amount, Social Insurance Number, and bank account information.
Q: How will this information be used?
A: The Registrar and the financial institution through which your purchase was made will only use the information for purposes of administering the Alberta Capital Bonds program. It will not be used or disclosed for the purpose of marketing other products or services.
Q: What legislation applies to the collection of personal information by the Province?
A: The Freedom of Information and Protection of Privacy Act (FOIP) governs the collection, use, disclosure, management and security of the personal information that is collected for the Alberta Capital Bonds program. The personal information that is collected for the Alberta Capital Bonds program is collected under the authority of section 33(a) and (c) of the FOIP Act and is protected by the privacy provisions of the Act.
