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Registration


Q. What type of registration is acceptable for Ontario Savings Bonds?
A.

The following registrations are acceptable:

  1. In the name of one person,
  2. In the names of two or more persons, as joint registration without the right of survivorship,
  3. In the names of two or more persons jointly, and their survivor(s),
  4. In the name of one or more persons in care of someone else,
  5. Where the Bonds are being held by investment dealers, on account, for clients,
  6. In the names of corporations, nominees, societies, lodges, etc.,
  7. Where the Bonds are being purchased by an estate or trust, the Bonds may be registered in the names of the legal representatives of the estate or in the name of the estate,
  8. For trusts governed by eligible registered plans.
 
Q. What is "Right of Survivorship"?
A.

In the event of the death of a bondholder, "Right of Survivorship" allows for the OSBs to become the property of the surviving bondholder(s).

 
Q. What happens if "Right of Survivorship" is not specified on the Purchase Application Form?
A.

If "Right of Survivorship" is not specified on the Purchase Application Form, in the event of the death of a bondholder, the surviving bondholder(s) will not be able to transfer or cash the bonds without legal documentation as the share of the OSB becomes the property of the deceased bondholder's estate. It is important to select "Right of Survivorship" at the time of purchase if the joint bondholder(s) would like the bonds to become the property of the surviving bondholder(s).

 
Q. How will I be able to identify that I have "Right of Survivorship" on my Ontario Savings Bond certificate?
A.

If the "Right of Survivorship" box on the Purchase Application Form has been checked, the registration on your OSB certificate should read as follows:

John Smith and Mary Smith JT TEN
The term JT TEN, or Joint Tenant, means that the bonds have been purchased jointly with "Right of Survivorship".

 
Q. How should Ontario Savings Bonds be registered when they are being purchased for a minor or on behalf of someone else (power of attorney)?
A.

Generally, if Bonds are being purchased for a minor, the registration is done in one of two ways:

  1. In the case where a trust has been formally established with the minor as a beneficiary, the registration should be made in the name of the trustee.
  2. In the case where there is no documented trust, the Bonds may be registered in the name of one or both of the parents of the minor in trust for the minor, in the name of the legal guardian of the minor or in the name of the minor him or herself or jointly in the name of the minor and the parent(s) or legal guardian.

In all cases when there is no documented trust, you should be aware that there are likely to be additional steps that must be taken in order to redeem or transfer the Bonds. In addition, it would be helpful for the minor to have his or her own bank account for interest and redemption payments. Should you wish to transfer the Bonds, the Bonds will need to be signed by the registered owner and the signature guaranteed. Similar requirements apply in the case of redemption. You should speak to your financial institution and legal advisor for further information prior to registering Bonds in the name of a minor or in the name of a parent or guardian in trust for the minor when no documented trust exists.

Similar considerations apply where Bonds are purchased for someone else under a power of attorney.

 
Q. What is the difference between a fully registered bond and a book-based bond?
A.

Fully Registered bond:
A physical certificate is issued in the name of the registered owner(s). For Annual Interest Bonds only, the June 21 interest payments are sent by cheque or direct deposit according to the registered owner’s instructions. All payments are in the name(s) of the registered owner(s).

Book-Based bond:
No physical certificate is issued to the beneficial owner(s). The beneficial owner's interest is recorded on the records of the investment dealer holding the beneficial owner's bonds. For Annual Interest Bonds only, the beneficial owner's investment dealer is responsible for crediting the June 21 interest payments to the purchaser’s account.


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