Company: TDBCP
Filing Date: 2025-03-03
Form Type: 424B3
Source: 0001140361-25-006726
Chunk: 59

Company: TORONTO DOMINION BANK
Filing Date: 2025-03-03
Form: 424B3
Chunk 59
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 is applicable to “collectibles”. There exists a risk that an investment in LIRNs that are linked to shares of an Underlying Fund, PFIC, REIT, RIC or other “pass-thru” entity or to a Basket or Market Measure that contains shares of an Underlying Fund, PFIC, REIT, RIC or other “pass-thru entity” could be treated as a “constructive ownership transaction”. Furthermore, depending on the precise terms of a particular offering of LIRNs that reference an Underlying Fund, PFIC, REIT or other “pass-thru entity”, there may be substantial risk that an investment in such LIRNs would be treated as a “constructive ownership transaction” and that all or a portion of any long-term capital gain recognized with respect to such LIRNs 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”). PS-45 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 LIRNs 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 LIRNs. 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 LIRNs the holder had invested an allocable portion of the face amount of LIRNs in shares of the Market Measure and sold those shares for their fair market value on the date LIRNs 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 LIRNs. All or a portion of a U.S. holder’s gain recognized with respect to LIRNs could be Excess Gain