Frequently Asked Questions

GROW BONDS PROGRAM

Why were Northern Ontario Grow Bonds issued?

Grow Bonds were designed to help new and expanding businesses in northern communities and improve opportunities for entrepreneurs in the North.

They are a safe and competitive investment option and provide funding for loans $125,000 to $1 million to help local businesses and stimulate job growth, community development and attract new economic opportunities in the North.

Why were Grow Bonds sales limited to residents of Northern Ontario?

The Northern Ontario Grow Bonds program is a pilot project.  The residents of Northern Ontario were targeted to buy Grow Bonds because it was an opportunity for northerners to contribute directly to the economic well being of their communities.

What are the proceeds of the Grow Bonds being used for?

The proceeds from the provincially guaranteed Grow Bonds are being used to provide loans to new and growing businesses in Northern Ontario.

What are the advantages of buying Grow Bonds?

Grow Bonds offer rates competitive to those offered on investment products like Guaranteed Investment Certificates (GICs) and term deposits. They are fully secure and will be guaranteed 100 per cent by the provincial government.

Back to Top

PURCHASES

Who issued the Grow Bonds and who is administering them?

Grow Bonds are issued by the Northern Ontario Grow Bonds Corporation, an agency of the Ministry of Northern Development and Mines. The administration of the bonds will be carried out by CIBC Mellon Trust Company.

How long was the selling period?

The selling period for the first issue of Grow Bonds was March 21, 2005 to April 18, 2005.

What is the interest rate on the first issue of Grow Bonds?

The interest rate for the first issue of Grow Bonds is 4.00 %.

What is the maturity date of the first issue of Grow Bonds?

The term of the first issue of Grow Bonds is 5 years, with a maturity date of April 11, 2010.

Were there restrictions on who could purchase Grow Bonds?

Yes. Only residents of Northern Ontario, over the age of 16, were eligible to buy Grow Bonds.

Who is considered a resident of Northern Ontario?

A resident of Northern Ontario is defined as anyone who lives in the Territorial District of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay or Timiskaming.

What were the minimum/maximum purchase amounts?

The minimum purchase amount was $100 per registered holder.  Purchases were available in increments of $100 and the maximum initial purchase limit was $500,000 per registered holder.  There is no limit on bonds purchased through the secondary market (e.g. through an investment dealer or broker).

Does the maximum purchase amount apply to bondholders who purchased Grow Bonds and then inherited more, taking them over the $500,000 limit?

No.  The maximum purchase amount does not apply to bondholders who purchase Grow Bonds and then inherited more, taking them over the $500,000 limit.

Can additional Grow Bonds be purchased after the selling period?

Yes.  Additional Grow Bonds may be purchased at their market value by contacting an investment dealer.  The $500,000 dollar limit does not apply to purchases of bonds in the secondary market.

What is “Right of Survivorship”?

Where there is joint ownership, in the event of the death of one of the bondholders dies, the bonds become the property of the surviving bondholder(s).

What happens if “Right of Survivorship” for joint registration is not specified on the Application Form?

If “Right of Survivorship” is not specified on the Application Form, in the event of the death of one of the bondholders, the surviving bondholder(s) will not be able to transfer or cash their bonds without legal documentation.  It is important to specify “Right of Survivorship” if joint bondholder would like the bonds to become the property of the surviving bondholder(s).

Can Grow Bonds be placed in RRSPs and RESPs?

Yes.  Grow Bonds are eligible to be placed in self-directed RRSPs or RESPs.

Did bondholders receive a Grow Bond Certificate?

Yes.  Bondholders did receive a Grow Bond certificate after the campaign ended, approximately six to eight weeks after the campaign end date.

Are Grow Bonds guaranteed by the Province of Ontario?

Yes. Grow Bonds are 100 percent guaranteed, as to principal and interest by the Province of Ontario.

Where can I get the terms and conditions of the first issue of Grow Bonds?

The Information Statement, which includes the purchase conditions and the terms and conditions of the Northern Ontario Grow Bonds is available on this website and upon request, by calling 1-866-668-5437.

When are the T5 slips mailed out to bondholders?

All T5 slips are issued annually by the Registrar and are mailed directly to the registered owner(s) at the registered address on or prior to February 28 of each year.

Back to Top

INTEREST PAYMENTS

How are the interest payments made?

Interest payments are only made by direct deposit.  If the purchase was made by telephone, a “void” cheque and/or a direct deposit form should have also been sent to Northern Ontario Grow Bonds with your purchase payment in order to make direct deposit payments possible.

How often are interest payments made?

Interest payments are made each year on April 11, with the first interest payment on April 11, 2006.  All interest payments are made by direct deposit only.

What happens if I have not received my interest payment?

If you have not received your interest payment, you should contact the Registrar, CIBC Mellon Trust Company, directly at 1-800-387-0825.

Back to Top

PERSONAL INFORMATION

What personal information was collected?

Any information about the registered owner on the purchase application, collected by the Northern Ontario Grow Bonds Corporation for Grow Bonds purposes, is considered personal information. This includes name, address, purchase amount, SIN number, etc.

Where is this information kept?

The information is retained by the Grow Bonds registrar, CIBC Mellon Trust Company, on behalf of the Northern Ontario Grow Bonds Corporation.

How will this information be used?

The information will only be used for the purpose of administering the Northern Ontario Grow Bonds program.

What legislation applies to the collection of personal information?

The Freedom of Information and Protection of Privacy Act applies to the collection and maintenance of personal information by the Northern Ontario Grow Bonds Corporation or its agent, CIBC Mellon Trust Company, the Ministry of Northern Development and Mines, the Ontario Financing Authority, and the Ministry of Finance.

Back to Top

SALES/TRANSFERS/REDEMPTIONS

Can Grow Bonds be sold?

Yes.  Grow Bonds can be sold through an investment dealer at their current market price.  An account with that investment dealer will have to be established and a commission may apply.

How are Grow Bonds sold?

In order to sell Grow Bonds, interested bondholders should contact an investment dealer.  The investment dealer will provide instructions about endorsing the Grow Bonds.

Can Grow Bonds be transferred?

Yes.  Grow Bonds are fully transferable.  No transfers are permitted on the maturity date or during the immediately preceding 15 days.  To transfer Grow Bonds, a Transfer Form is available on this site or by calling 1-866-668-5437.  For more information, contact the Registrar, CIBC Mellon Trust Company, directly at 1-800-387-0825.

What is the process for transferring Grow Bonds from one name to another

A Transfer Form must first be completed, along with such other documentation as may be required by the Registrar, CIBC Mellon Trust Company, and the Northern Ontario Grow Bonds Corporation. A Transfer Form is available on this site or by calling 1-866-668-5437. 

Are partial Grow Bonds transfers permitted?

Yes. Partial transfers are permitted. Once the transfer has been processed by the Registrar, CIBC Mellon Trust Company, a certificate, representing the amount of bonds not transferred is provided to the bondholder(s). A Transfer Form is available on this site or by calling 1-866-668-5437.

Is there a transfer fee? How long do transfers take?

No, CIBC Mellon will not charge you for transferring your bonds within the 72-hour transfer process. If you want your Bonds in less time, a rush fee will apply.

If a Grow Bond is transferred before an interest payment date, who receives the payment and who receives the T5?

For fully registered certificates, the Registrar pays the interest and provides the T5 slip to the registered holder, that is, the person in whose name the Bonds are registered two weeks prior to an interest payment date, as no transfers can take place during this period.   

Can Grow Bonds be redeemed before the maturity date?

No. Northern Ontario Grow Bonds are non-redeemable.

Back to Top

GROW BONDS BUSINESS LOAN PROGRAM

How does the Grow Bonds Business Loan program benefit the North?

The Grow Bonds Business Loan program provides loans for new and expanding businesses in the North. This helps attract investment and create jobs in Northern Ontario.

Who was eligible to apply for a Grow Bonds loan and what kind of criteria was used to determine eligibility?

Eligible loan applicants were assessed on the quality of the business plans provided with the loan applications.

The eligibility criteria included, but was not limited to, businesses that were located in Northern Ontario and controlled by residents of Northern Ontario.  Eligible projects had to result in an increase in permanent, full-time employment within the core activities of the business supported by Grow Bonds loan funds.  Businesses would also be expected to repay their loans within five years. 

Who was not eligible to apply?

Eligibility for Grow Bonds loans did not include proposals for creating or expanding a business in the retail, construction or hospitality industries.  However, each of these industries would benefit indirectly from increased business activity generated by new and expanding businesses in other sectors.

What information was required in the business plan that accompanied the application form?

A Guide to Completing a Business plan is available on this site at or by calling 1-866-668-5437. The business plan is an important part of the loan approval process and had to be submitted with the application form.

What was the submission deadline for the application and business plan?

All submissions were to be postmarked by April 15, 2005, and were to be reviewed by the Northern Ontario Grow Bonds Corporation on a first-come, first-serve basis.

Is there a limit to the size of loans that will be approved?

The government proposes that loans to eligible businesses will generally be in the range of $125,000 to $1 million.

Is further assistance available for applicants who have questions about the Grow Bonds Business Loan Program?

For further assistance on the Grow Bonds Business Loan Program, applicants may call 1-866-668-5437. In addition, applicants may contact their local Northern Development Office, or by calling 1-866-668-5437. A listing of local offices is available at this site.

Back to Top