Company: EMICF
Filing Date: 2025-09-29
Form Type: 424B2
Source: 0000950103-25-012357
Chunk: 70

Company: EMERA INC
Filing Date: 2025-09-29
Form: 424B2
Chunk 70
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 required to treat as ordinary income rather than as capital gain any income realized on a taxable disposition of the Notes,
as described below.

The remainder of this discussion
assumes the Notes will not be treated as issued with OID or as contingent payment debt instruments.

Exercise of Deferral Option

Under the Treasury Regulations,
if the Issuer exercises the option to defer the payment of interest on the Notes, the Notes will be treated as if they had been redeemed
and reissued solely for OID purposes. In that event, all remaining interest payments on the Notes (including interest on deferred interest)
would be treated as OID, which U.S. Holders would be required to accrue and include in taxable income, without regard to such U.S. Holders’
regular method of accounting for U.S. federal income tax purposes. The amount of OID includible in such U.S. Holders’ taxable income
would be determined on the basis of a constant yield method over the remaining term of the Notes, and the actual receipt of future payments
of stated interest on the Notes would no longer be separately reported as taxable income. The total amount of OID that would accrue during
the deferral period would be approximately equal to the amount of the cash payment due immediately following the end of that period.
Any OID included in income would increase U.S. Holders’ adjusted tax basis in their Notes, and their actual receipt of cash interest
payments would reduce that adjusted tax basis.

Sale, Exchange or Retirement of the Notes

Upon the sale, exchange
or retirement of a Note that is a taxable disposition, a U.S. Holder will recognize taxable gain or loss equal to the difference between
the amount realized on such sale, exchange or retirement and the U.S. Holder’s adjusted tax basis in the Note, which will generally
equal the cost of the Note. For these purposes, the amount realized does not include any amount attributable to accrued interest. Amounts
attributable to accrued interest are treated as interest as described under “Payments of Interest” above. If the Notes are
treated as having been issued or reissued with OID, such adjusted tax basis will also be increased by the amount of any OID previously
included in a U.S. Holder’s gross income with respect to the Notes and decreased by any payments received on the Notes since and
including the date that the Notes were deemed to be issued with OID.

<div align='center'>S-39</div>

Gain or loss realized on
the sale, exchange or retirement of a