Fund Setup Sheet

Equityline Mortgage Investment Corporation

This Fund Setup Sheet provides important information regarding the fund(s) and their attributes required by dealer head offices to complete various internal system setups and commence transaction placement via the Fundserv Network.

Fund Codes & Details

Product Inception Date: June 2020

BEL
Fund Code
Fund NameLoad
Type*
Currency
201Equityline Mortgage Investment Corporation Series A Preferred SharesFEUSD
203Equityline Mortgage Investment Corporation Series B Preferred SharesFECAD
205Equityline Mortgage Investment Corporation Series F Preferred SharesFECAD

* FE = Front End

General

Fundserv Member:YesBare Trustee
Custodial Agreement:
IIROC Signed
Fundserv myserv
Dealer Account Inquiry:
YesTrailer Fee:n/a
Product Type:Mutual FundDSC & LSC Commission:n/a
Tax Structure:CorporateManagement Fee:1.00 %
Classification:Alternative StrategiesPerformance Fee:n/a
Offering Document Type:Offering MemorandumPrices via Fundata:No (US$ 2/share for Series A,
$10/share for Series B and F)

* For complete fund details please download an FD (Fund Setup) File from Fundserv, or go to

Fundserv Services Web / Utilities / Fund List or http://www.fundserv.com/customer-centre/fund-profiles.

Transaction Details

Purchases

Pricing Frequency:Semi-Monthly - 1st & 15thClient Name RSP Offered:No
Cut-off Time: 4:00pm ETMinimum Initial Purchase:$2,000 USD for Series A
*Custom Cut-off Date:n/aMinimum Subsequent Purchase:n/a
*Custom Price Date:n/aPre-Authorized Chequing (PAC)
Plans:
No
Settlement Date:T+2PAC Minimums:n/a
Maximum Front End
Commission:
0% (See below)Management Fee Rebates
(MFR):
No
Provincial Eligibility:All Provinces & TerritoriesDistribution Option:In-Cash only
Offshore Investors Eligible:NoDistribution Frequency:Monthly
US Investors Eligible:NoTax Slip Type Issued:T5
Registered Plan & TFSA
Eligibility:
YesSubscription Agreement
Required:
Yes (see below)

Purchase Conditions:

  • Commissions: Order Entry Instructions – Purchases must be placed with 0.0% as the Front End load rate, otherwise they will be rejected. This is to ensure settlement is for the full gross amount. The commission rate of up to 7% will be paid to the rep on the gross amount of all purchases, upon closing for Series A and B Preferred Shares.

  • Dealers/Advisors are required for all initial purchases to deliver a copy of the completed Subscription Agreement on the date the order is placed to Equityline Mortgage Investment Corporation via: Email to info@EquityLineMIC.com

  • Original documents are not required by the Manager, and should be retained by the dealer.

Redemptions

Pricing Frequency:Monthly - last business daySettlement Date:T+2
Cut-off Time:4:00pm ETSystematic Withdrawal Plans
(SWP):
No
*Custom Cut-off Date:n/aEarly Redemption Fees (ERF):7 % within 180 days on Series B only
*Custom Price Date:n/aDSC Rate & Duration:n/a

Redemption Conditions:

  • Series A Preferred Shares may be redeemed at any time following the date that is 36 months following the date of initial issuance of the Series A Preferred Shares (the Series A Shareholder Redemption Start Date) at the Series A Preferred Share Redemption Price (less any tax required to be deducted or withheld by the Corporation and less any costs associated with such redemption).

  • A Series A Redemption Period is each of the periods from January 1 to June 30 and from July 1 to December 31 of any calendar year after the Series A Shareholder Redemption Start Date (provided that if the first Series A Redemption Period is less than 3 months long, the first Series A Redemption Period shall begin on the Series A Shareholder Redemption Start Date and end on the last day of what would be the next Series A Redemption Period). This restriction means that if, between January 1 and June 30 of a calendar year, redemption notices are received for 10% of outstanding Series A Preferred Shares calculated as of January 1, subject to pro ration, no further redemption notices are required to be accepted in that period. Likewise, if between July 1 and December 31 of a calendar year, redemption notices are received for 10% of outstanding Series A Preferred Shares calculated as of July 1, subject to pro ration, no further redemption notices are required to be accepted in that period.

  • Series B Preferred Share redemptions are limited to the greater of $500,000 and 3% of the total capital of the issued and outstanding Series B Preferred Shares (Redemption Limit) determined at the beginning of such calendar month

  • Subject to the Series B Preferred Share Redemption Limit, the Series B Preferred Shares may be redeemed by a holder thereof at any time following the date of issuance at a redemption price per Series B Preferred Share equal to 93% of the Series B Preferred Share Purchase Price if redeemed within 6 months from the date of issuance, and at a redemption price per Series B Preferred Share equal to:

    • (i) 93% of the Series B Preferred Share Redemption Price if redeemed within 12 months from the date of issuance;

    • (ii) 96% of the Series B Preferred Share Redemption Price if redeemed on or after 12 months from the date of issuance but within 24 months from the date of issuance;

    • (iii) 98% of the Series B Preferred Share Redemption Price if redeemed on or after 24 months from the date of issuance but within 36 months from the date of issuance; and

    • (iv) 100% of the Series B Preferred Share Redemption Price if redeemed on or after 36 months from the date of issuance.

  • Series F Preferred Share redemptions are limited to the greater of $500,000 and 3% of the total capital of the issued and outstanding Series F Preferred Shares (Redemption Limit) determined at the beginning of such calendar month.

  • Subject to the Series F Preferred Share Redemption Limit, the Series F Preferred Shares may be redeemed by a holder thereof at any time following the date of issuance at a redemption price per Series F Preferred Share equal to the Series F Preferred Share Purchase Price. Payment for Series F Preferred Shares tendered for redemption prior to the Series F Monthly Redemption Notice Deadline for a month shall be made on the Series F Monthly Redemption Payment Date following the applicable Series F Monthly Redemption Date.

Transactions Allowed

Buy:YesExternal Transfer:Yes
Commission Rebate:n/aIn Cash Transfer (ICT):n/a
Switch:n/aError Correction (AOT/REV):n/a
Sell:YesLSIF Rollover:n/a
Fee:NoSegregated Fund Reset:n/a
Internal Transfer:YesSegregated Fund Maturity:n/a

Additional Information

Investment Objective

  • The investment objective of the Corporation is, with a focus on capital preservation, to acquire and maintain a Portfolio consisting primarily of (i) Non-Conventional Mortgages and (ii) Alt-A Mortgages that generate attractive returns relative to their risk in order to permit the Corporation to pay distributions to its Shareholders. However, there is no assurance that the Corporation will be able to declare any dividends in any period or at all.

Distributions

  • Holders of the Series Preferred Shares shall be entitled to receive, and the Corporation shall pay thereon, if, as and when declared by the Board, out of moneys of the Corporation properly applicable to the payment of dividends, fixed, cumulative, preferential monthly cash dividends in an amount equal to an annual rate of 8% (8.5% for Series F Preferred Shares) based on the purchase price of the Series Preferred Shares, payable, with respect to each Series Preferred Share Dividend Period, on the 15th day of each of the months of each year (the Dividend Payment Date) in respect of such Series Preferred Share Dividend Period. Dividends shall accrue daily from and including the date of issue of such shares.

Management Fee

  • For acting as manager of the Corporation, the Manager receives from the Corporation a management fee equal to 1% per annum of the Aggregate Funded and Committed Assets of the Corporation, calculated daily, aggregated and paid monthly in arrears, plus applicable taxes.

Contact Information

Fund Company

Company Name:Belco Private Capital Inc.
Head Office Address:40 Eglinton Avenue East, Suite 301, Toronto, ON, M4P 3A2
Phone:519-504-3282
Fax:416-747-9855
Website:www.belcopc.com
Email:inquiries@belcopc.com

Issuer

Company Name:Equityline Mortgage Investment CorporationSales & Marketing Contact:Equityline Financial Corp.
Head Office Address:550 Highway 7 Ave E., Suite 338, Richmond Hill,
ON, L4B 3Z4
Email:Sergiy@EquityLineMIC.com
Phone:1-888-269-1988 or 416-999-3993
Fax:416-999-3336
Website:www.EquityLineMIC.com
Email:info@EquityLineMIC.com

Back Office Administrator

Company Name:SGGG Fund Services Inc.Phone (Account Inquiry):

416-967-0038 ext. 1

or 1-888-967-0038

Head Office Address:121 King Street West, Suite 300, Toronto, ON, M5H 3T9General Processing Fax:416-967-1969
Website:www.sgggFSI.comDealer Services:AdminServices@sgggFSI.com