TD Bank 2001 Annual Report Download - page 68

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66
FINANCIAL RESULTS
(b) The premises and equipment net rental expense charged to
net income for the year ended October 31, 2001 was $489 mil-
lion (2000 – $391 million).
The Bank has obligations under long-term non-
cancellable
leases for premises and equipment. Future
minimum operating
lease commitments for premises and for equipment where the
annual rental is in excess of $100 thousand are as follows:
(millions of dollars)
2002 $ 332
2003 277
2004 196
2005 153
2006 121
2007 and thereafter 427
$ 1,506
(c) The Bank and its subsidiaries are involved in various legal
actions in the ordinary course of business, many of which are
loan-related.
In management’s opinion, the ultimate disposition
of
these actions, individually or in the aggregate, will not have a
material adverse effect on the financial condition of the Bank.
(d)
In the ordinary course of business, securities and other
assets are pledged against liabilities. As at October 31,
2001
securities and other assets with a carrying value
of $33 billion
(2000 – $24 billion) were pledged in respect of securities
sold short or under repurchase
agreements. In addition, as at
October 31, 2001, assets with a carrying value of $2.3 billion
(2000 – $3 billion)
were deposited for the purposes of partici-
pation in clearing and payment systems and depositories or
to
have access to the facilities of central banks in foreign juris-
dictions, or as security for contract settlements with derivative
exchanges or other derivative counterparties.
(e) In the ordinary course of business, the Bank agrees to lend
unpaid customer securities, or its own securities, to borrowers on
a fully collateralized basis. Securities lent at October 31, 2001
amounted to $2 billion (2000 – $.8 billion).
Credit instruments
(millions of dollars) 2001 2000
Guarantees and standby letters of credit $ 8,373 $ 7,106
Documentary and commercial letters of credit 1,519 1,173
Commitments to extend credit1
Original term to maturity of one year or less 47,736 54,756
Original term to maturity of more than one year 29,621 28,412
$ 87,249 $ 91,447
1Consists of unused portions of commitments to extend credit in the form of
loans, customers’ liability under acceptances, guarantees and letters of credit.
(a) In the normal course of business, the Bank enters into
various off-balance sheet commitments and contingent liability
contracts
.
The credit instruments reported below represent the maximum
amount of additional credit that the Bank could be obligated to
extend should the contracts be fully utilized.
NOTE 15 Contingent liabilities and commitments