Throughout this Agreement the terms "you" and "your" means the MRS High Yield Plus Account Holder(s) and "we", "us" and "our" means M.R.S. Trust Company (MRS).

M.R.S. Trust Company, a member institution of the Canada Deposit Insurance Corporation (CDIC), accepts deposits to the High Yield Plus Account under the following agreed upon terms and conditions.

MRS shall receive principal and sums from you deposited into the Account in trust to be invested for you according to the following terms:

a) The principal amount of the deposit shall be held or invested by MRS as authorized by the Loan and Trust Corporations Act (Ontario).

b) Investment of the principal shall me made in the name of MRS but shall be held by MRS as trustee for you according to the terms set out in this Agreement.

c) MRS agrees to pay interest monthly to you on a monthly basis. Interest will be deposited to your account following the close of business on the last day of the month in which it was earned. Interest shall be calculated daily and based upon the daily closing balance of the Account at a rate of interest as set by MRS from time to time. To obtain current rates please visit our web site at www.mrs.com or call MRS at 1-800-387-2087. All interest payable will be deposited into the same Account in respect of which the interest was earned and shall thereafter be considered as principal.

d) MRS guarantees to you the repayment upon demand of any principal sums deposited together with any interest which is due and payable.

e) In consideration of the guarantee of MRS and by way of remuneration for administering the principal of your Account, MRS shall be entitled to retain for its own use the interest and profits resulting from any investment of the principal in excess of the amount of interest payable hereunder to you.

f) MRS reserves the right both to reject any deposit made by you and withdraw any and all amounts from your Account for the purposes of returning such amounts to you.

g) Any transaction related to the Account, may not be accepted until MRS has verified it. MRS may hold any cheque, electronic transfer instruction or other item deposited to your Account, and to defer your right to the withdrawal of funds represented by such deposit, until MRS has received payment for the cheque, electronic transfer instruction or other item.

h) You may close your Account with MRS at any time. MRS also reserves the right to close your Account at its discretion and pay the balance to you, if any, subject to any rights of setoff referred to below. Upon being provided with the proper legal documentation confirming your death, MRS will also close your Account and forward the balance to your estate.

i) Monies held within the Account are not transferable or assignable by you to any person in any respect.

j) If, for any reason, including actions by MRS, there is an overdraft in your Account, that overdraft will be deemed to be a loan made to you. MRS may or may not make overdraft available to you at its sole discretion. If we allow you to overdraw any Account we may charge interest from the date incurred until repaid at a rate of interest as set by MRS from time to time. You must repay any overdraft and interest on demand.

k) You agree to inform us immediately if any cheques are lost or stolen. If you do not and you do not prove to our satisfaction that you took all reasonable steps to prevent the situation, you will be responsible for any improper use of the cheques.

l) You can place a stop payment on any cheque or other pre-authorized payment order, if it has not already been paid, by giving us complete details and paying a minimal charge as set by MRS from time to time. MRS will do its best to stop payment; however, the cheque must match exactly the details you have provided. If it does not, we are not responsible if the cheque is paid. If payment occurs for any other reason, we will reimburse you the stop payment service charge unless the cheque is paid for a legitimate debt.

m) When there is not enough money in your Account then the cheque or other item will be returned unpaid and an NSF fee, as set by MRS from time to time, will be applied to your Account. To obtain current fee information please visit our web site at www.mrs.com or call MRS at 1-800-387-2087.

n) You are responsible for any deposits to your Account if they are unpaid. MRS may charge these items back to your Account and if necessary may debit any of your other MRS accounts without taking any further action or providing notification to you.

o) You must select a Personal Identification Number (PIN) when opening an Account which will be used for accepting telephone instructions. You authorize MRS to accept all instructions given together with the PIN. You agree to be responsible for all instructions given together with your Account Number and PIN.

p) You agree to be solely responsible for security and privacy of the PIN. If your PIN should become known to any other person, you agree to notify MRS immediately. You will remain liable for all transactions occurring before MRS is so notified.

q) You will notify MRS in writing of any changes to your Account. All written changes must be signature guaranteed by your dealer.

r) You authorize us to debit your Account with charges outlined in the applicable MRS fee schedule. These charges may change from time to time and will be disclosed to you in accordance with applicable laws. You authorize us to debit your Account for any other amounts that are owing to us in relation to any other matter between you and MRS.

s) You agree to review each Account statement and contact MRS within 30 days after the statement date if the statement or transaction history is believed to be wrong. If You do not contact us, then with the exception of incorrect credits or debits to your Account:

  • all entries and balances will be taken as correct;
  • all cheques and other items will be assumed authorized and properly signed;
  • you will not be entitled to any amount not shown on the statement or transaction history;
  • MRS is released from all claims regarding your Account(s), including for negligence but not gross negligence or willful misconduct.

In the case of gross negligence or willful misconduct, our liability will be no greater than the amount of the item or the direct damages you have suffered. MRS is not liable for any indirect, special or consequential damages.

You agree to accept these terms and conditions even if a statement is delayed or never received for any reason, such as if it is lost in transmission or if there is a postal strike. Upon request, MRS will forward to you a duplicate statement.

t) MRS may, from time to time, amend the terms of this Account Agreement.

The following additional terms apply only to accounts held jointly or by tenants in common:

u) The Account is owned jointly by those persons signing the Account Application Form and that ownership is in equal portions, unless otherwise specified if held by tenants in common.

v) All of you are jointly and severally liable to MRS for any debts, liabilities and obligations arising in connection with the Account.

w) MRS may, without consulting any of the Account Holders, as defined in the Account application, act on orders for the Account submitted by any one of you, including authorization to receive statements, or other information and to deposit, withdraw, transfer, deliver and/or receive any and all monies from the Account.

x) The transfer, delivery or payment of monies may be made to any one of you without any liability to MRS.

y) All statements or other notices from MRS will only be sent to the Account Holder name in Section 2 of the Account Application. All such correspondence will then be considered to have been mailed to all of the Account Holders.

z) On the death of any one of you,the deceased's portion of the Account proceeds will be disposed of to the remaining Account Holder(s) if the Account is held with right of survivorship or in the case of tenants in common, to the executor or administrator of the deceased's estate.

aa) On the death of any one of the you, the remaining Account Holder(s) agrees to immediately advise MRS, and to provide such documentation as may reasonably be requested. MRS reserves the right to restrict access to monies held in the Account, as deemed necessary to be in accordance with any present or future law.

ab) The deceased's estate and the surviving Account Holder(s) continue to be jointly and severally liable for debts, liabilities and obligations resulting from transactions initiated prior to MRS receiving written notice of death, or incurred in liquidating the Account or adjusting the interests of the surviving Account Holder(s).

The following additional terms only apply to in trust for (ITF) Accounts:

ac) If the Account is held in trust for more than one individual (ie. beneficiary), each beneficiary's interest in the Account is deemed to be in equal proportions.

ad) All statements or other notices from MRS will be mailed to the Account Holder as named in Section 2 of the Account Application. All such correspondence will then be considered to have been mailed to all of the Account Holder(s).

ae) MRS has no obligation to observe the terms of any trust and each Account Holder is solely responsible for ensuring compliance with any terms of any applicable trust agreement or applicable law.

af) On the death of any one of you, the remaining Account Holder(s) agree to immediately advise MRS, and to provide such documentation as may reasonably be requested. MRS reserves the right to restrict access to monies held in the Account, as deemed necessary to be in accordance with any present or future law. 5592 1/ 01