TD Bank 2007 Annual Report Download - page 125

TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Financial Results 121
NOTE 30 SUBSEQUENT EVENTS
NOTE 29 RELATED-PARTY TRANSACTIONS
(millions of Canadian dollars) 2007 2006
Personal Loans, including mortgages $ 7 $ 11
Business Loans 103 40
Total $ 110 $ 51
The Bank makes loans to its officers and directors and their
affiliates. Loans to directors and certain officers are on market
terms. The amounts outstanding are as follows:
In addition, the Bank offers deferred share and other plans to
non-employee directors, executives and certain other key employ-
ees. See Note 15, Stock-based Compensation, for more details.
In the ordinary course of business, the Bank also provides
various banking services to associated and other related corpora-
tions on terms similar to those offered to non-related parties.
TRANSACTIONS WITH TD AMERITRADE
Pursuant to a Stockholders Agreement in relation to the Bank’s
equity investment in TD Ameritrade, the Bank designated five
of twelve members to TD Ameritrade’s Board of Directors.
A description of significant transactions of the Bank and its
affiliates with TD Ameritrade is set forth below.
Money Market Deposit Account Agreement
The Bank is party to a money market deposit account (MMDA)
agreement with TD Ameritrade, pursuant to which the Bank
makes available to clients of TD Ameritrade money market
deposit accounts as designated sweep vehicles. TD Ameritrade
provides marketing and support services with respect to the
MMDAs. For providing these services, the Bank paid fees of
$592.3 million in 2007 (2006 – $260.6 million).
As at October 31, 2007, amounts receivable from
TD Ameritrade were $12.4 million (2006: $2.2 million).
As at October 31, 2007, amounts payable to TD Ameritrade
were $100.8 million (2006: $18.9 million).
TRANSACTIONS WITH SYMCOR
The Bank has a one-third ownership in Symcor Inc. (Symcor),
a North American provider of business process outsourcing
services for the financial services industry, including cheque
and payment processing, statement production and document
management. The Bank accounts for Symcor’s results on an equity
accounting basis. During the year, the Bank paid $128.7 million
(2006 – $127.4 million) for these services. As at October 31,
2007, the amount payable to Symcor was $11.2 million (2006 –
$11.7 million).
MEDIUM TERM NOTES
On November 1, 2007, the Bank issued $2.5 billion of medium
term notes constituting subordinated indebtedness pursuant to
its medium term note program. The notes pay a coupon of
5.382% until November 1, 2012 and the bankers‘ acceptance
rate plus 1.00% thereafter until maturity on November 1, 2017.
The notes are redeemable at the Bank‘s option at par on
November 1, 2012. The notes qualify as Tier 2B regulatory
capital.
CLASS A FIRST PREFERRED SHARES, SERIES P
On November 1, 2007, the Bank issued 10 million Class A First
Preferred Shares, Series P shares for gross cash consideration of
$250 million. For further details, see Note 13.