Company: TDBCP
Filing Date: 2025-06-17
Form Type: 424B3
Source: 0001140361-25-022771
Chunk: 57

Company: TORONTO DOMINION BANK
Filing Date: 2025-06-17
Form: 424B3
Chunk 57
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 that an investment in such SUNs would be treated as a “constructive ownership transaction,” and that all or a portion of any long-term capital gain recognized with respect to the SUNs could be recharacterized as ordinary income and subject to an interest charge (or, in the case of an pass-thru entity containing gold and/or silver, subject to a special 28% maximum rate that is applicable to “collectibles”). If such treatment applies, it is not clear to what extent any long-term capital gain recognized by a U.S. holder in respect of the SUNs would be recharacterized as ordinary income and subject to the interest charge described above, in part, because it is not clear how the net underlying long-term capital gain would be computed in respect of the SUNs. It is possible, for example, that the net underlying long-term capital gain could equal the amount of long-term capital gain a U.S. holder would have recognized if on the issue date of the SUNs the holder had invested an allocable portion of the face amount of the SUNs in shares of the Market Measure and sold those shares for their fair market value on the date the SUNs are sold, exchanged or retired. However, it is also possible that because the U.S. holder does not share in distributions made on the Market Measure or the Underlying Constituents, these distributions could be excluded from the calculation of the amount and character of gain, if any, that would have been realized had the U.S. holder held the Market Measure or the Underlying Constituents directly, so that the application of constructive ownership rules may not recharacterize adversely a significant portion of the long-term capital gain the U.S. holder may recognize with respect to the SUNs. All or a portion of a U.S. holder’s gain recognized with respect to the SUNs could be Excess Gain if the U.S. holder purchases the SUNs for an amount that is less than the principal amount of the SUNs or if the return on the SUNs is adjusted to take into account any extraordinary dividends that are paid on the shares of the Market Measure. Furthermore, unless otherwise established by clear and convincing evidence, the net underlying long-term capital gain is treated as zero. Because the application of the constructive ownership rules to the SUNs is unclear, holders are urged to consult their tax advisors regarding the potential application of those rules to an investment in the SUNs. Section 1297 We will not attempt to ascertain whether the issuer of any Market Measure or any Under