Document:

Unassociated Document

Exhibit 4.17

 

SECURITY SHARING AGREEMENT

 

THIS SECURITY SHARING AGREEMENT (this Agreement) is made as of the 24th day of  June, 2013.

 

A M O N G:

 

RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP, limited partnership existing under the law of the Province of Ontario, whose registered office is at Royal Bank Plaza, South Tower, 9th Tower, 200 Bay Street, Toronto, Ontario acting by its managing general partner RBC Covered Bond GP Inc.

 

(the Guarantor LP)

 

- and -

 

ROYAL BANK OF CANADA, a Bank named in Schedule I to the Bank Act (Canada), whose executive office is at Royal Bank Plaza, South Tower, 8th Floor, 200 Bay Street, Toronto, Ontario, Canada M5J 2J5

 

(the Bank, and together with Guarantor LP, the Secured Parties)

 

- and -

 

COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company formed under the laws of Canada, whose registered office is at 100 University Avenue, 9th Floor, North Tower, Toronto, Ontario, Canada M5J 2Y1, in its capacity as Bond Trustee (the Bond Trustee, which expression shall include all persons for the time being the bond trustee or the bond trustees under the Trust Deed), and as Custodian (the Custodian)

 

RECITALS

 

A.           The Bank has and may from time to time sell or contribute Loans (Guarantor LP Purchased Loans) and their Related Security to the Guarantor LP pursuant to the terms of the Mortgage Sale Agreement and Guarantor LP Agreement, respectively.

 

B.           Terms of the loan agreements or Loan and Related Security Files in respect of each Guarantor LP Purchased Loan (as the same may be amended, restated or supplemented from time to time, the Relevant Loan Documents) provide that the Mortgage or hypothecary instrument including any collateral mortgage (collectively, the Shared Security) forming part of the Related Security in respect of such Guarantor LP Purchased Loans may from time to time secure loans, indebtedness or liabilities which have not been sold or contributed to the Guarantor LP (each a Bank Retained Loan and together with each Guarantor LP Purchased Loan secured by the same Shared Security, the Related Loans).

 

C.           As of the date of this Agreement, the Bank is servicing the Guarantor LP Purchased Loans as Servicer for the Guarantor LP pursuant to the terms of the Servicing Agreement and services the Bank Retained Loans for itself.

 

  

 

  

 

D.           The parties desire to enter into this Agreement as a Security Sharing Arrangement under the terms of the Guide and to acknowledge and agree (i) the Bank retains a beneficial interest in the Shared Security; (ii) as to the priorities of payment in respect of any Post-Default Collections (as defined below); (iii) as to certain obligations with respect to the servicing of Related Loans and their Shared Security; and (iv) as to Related Loans and their Shared Security being serviced by the same servicer.

 

E.           The Bank has delivered to the Custodian, in trust for the Guarantor LP, a Release of Security in respect of its interest in the Shared Security existing as of the date hereof.

 

NOW THEREFORE in consideration of the sum of $1.00 and other good and valuable consideration hereunder, the parties agree as follows:

 

ARTICLE I – INTERPRETATION

 

	
1.1

	
Shared Security Arrangement

 

This Agreement constitutes a Security Sharing Agreement as such term is used in the Guide.

 

	
1.2

	
Interpretation

 

The amended and restated master definitions and construction agreement dated June 24, 2013 made between, inter alia, the parties to this Agreement (as the same may be amended, varied or supplemented from time to time with the consent of the parties thereto) (the Master Definitions and Construction Agreement) is expressly and specifically incorporated into this Agreement and accordingly this Agreement shall be construed in accordance with the interpretation provisions set out in Section 2 of the Master Definitions and Construction Agreement.

 

	
1.3

	
Definitions

 

Capitalized terms used and not otherwise defined herein have the meanings given to such terms in the Recitals hereto and such Recitals form an integral part of this Agreement. Expressions defined in the Master Definitions and Construction Agreement shall, except where the context otherwise requires and save where otherwise defined herein or in the Recitals hereto, have the same meanings in this Agreement, including in the Recitals hereto.

 

	
1.4

	
Presumption

 

Where Loans and their Related Security sold or contributed to the Guarantor LP by the Bank provide that the Mortgage or hypothecary instrument (including any collateral mortgage) forming part of the Related Security in respect of such Loan may from time to time secure other loans, indebtedness or liabilities, such Loans shall be deemed to be Guarantor LP Purchased Loans and subject to the terms of this Agreement.

 

  

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ARTICLE II –  SECURITY AND RANKING

 

	
2.1

	
Retention of Interest

 

	 	
(a)

	
Each of the Secured Parties acknowledges that the Bank and the Guarantor LP each have an interest in the Shared Security.

 

	 	
(b)

	
Nothing in this Section 2.1 shall conflict with the obligations of the Bank to Perfect the sale of any Guarantor LP Purchased Loan in accordance with Article 7 of the Mortgage Sale Agreement.

 

	
2.2

	
Priority

 

	 	
(a)

	
The Secured Parties agree with one another that the interests of the Guarantor LP in any Shared Security shall rank in priority to the interests of the Bank in such Shared Security notwithstanding any priorities of payment set forth in the terms of the Relevant Loan Documents.

 

	 	
(b)

	
Notwithstanding the terms of the Relevant Loan Documents, all Collections in respect of any Related Loans received following a default under or breach of such Related Loans that is not remedied or waived in accordance with the terms of the agreements with the Borrower in respect of such Related Loans (Post-Default Collections), including amounts received upon the enforcement of any Shared Security (Enforcement Proceeds), by any Person including the Servicer, the Secured Parties or any liquidator, receiver, trustee or other similar Person appointed in respect of the Shared Security shall be applied in accordance with the provisions of this Section 2.2(b) as follows:

 

	 	
(i)

	
FIRST, in or towards payment of all taxes, reasonable costs and expenses incurred or to be incurred in relation to the enforcement of the Shared Security, including the remuneration of any liquidator, receiver, trustee or other person appointed for such purposes;

 

	 	
(ii)

	
SECOND, in or towards payment of all amounts owing by the Borrower in respect of any Guarantor LP Purchased Loans secured by such Shared Security until such amounts have been paid in full;

 

	 	
(iii)

	
THIRD, in or towards payment of all amounts owing by the Borrower in respect of the Bank Retained Loans secured by such Shared Security until such amounts have been paid in full; and

 

	 	
(iv)

	
LASTLY, in paying the surplus (if any) to the Persons entitled thereto.

 

	 	
(c)

	
To the extent of any conflict between the terms of the Relevant Loan Documents in respect of any Shared Security and its Related Loans and the terms of this Section 2.2, the Secured Parties shall cooperate in a reasonable manner to provide for such assignment, subrogation or novation of their interests in the Related Loans and take such other actions and execute such further documents as may be necessary or desirable, on the advice of counsel to such Secured Parties, to give effect to this Section 2.2.

 

  

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2.3

	
Allocations

 

	 	
(a)

	
Subject to the terms of the Transaction Documents, a Servicer or Replacement Servicer, as applicable, shall in respect of those Related Loans held by a Secured Party (but not against Related Loans that are not held by such Secured Party), only exercise discretion in allocating Collections, including any Post-Default Collections to which such Secured Party is entitled in accordance with Section 2.2, amongst such Secured Party’s Related Loans, to the extent any such discretion in allocation is permitted pursuant to the terms of the Related Loan Documents upon and in accordance with the written advice (which may include standing instructions) of such Secured Party and only to the extent such advice (i) complies with the provisions of this Agreement; and (ii) is not inconsistent with the provisions of the Related Loan Documents.

 

	 	
(b)

	
Absent written advice of a Secured Party delivered pursuant to Section 2.3(a), the Servicer or Replacement Servicer, as applicable, shall apply Collections, including any Post-Default Collections to which such Secured Party is entitled in accordance with Section 2.2, in the manner specified in the Related Loan Documents and if not specified therein in the discretion of the Servicer or Replacement Servicer, as applicable, acting reasonably.

 

	
2.4

	
Trust

 

	 	
(a)

	
Notwithstanding Section 2.3, unless and until all amounts payable in priority to amounts payable to a Secured Party in respect of any Related Loans have been paid and satisfied in full, any Secured Party which receives directly or indirectly Post-Default Collections in respect of any Related Loans or their Shared Security shall hold such Post-Default Collections, including any Enforcement Proceeds,in trust and keep such monies in a separate account for the benefit of the Secured Party entitled thereto and forthwith and in any event within two Business Days of receipt thereof transfer such amounts to the Secured Party entitled thereto or such Person as such Secured Party may direct in writing.

 

	 	
(b)

	
For greater certainty, any payments of amounts held in trust by the Guarantor LP pursuant to this Section 2.4 shall not be subject to the Priorities of Payment or any right of set-off or counterclaim.

 

	 	
(c)

	
Nothing in this Section 2.4 shall apply so as to limit any obligation of the Servicer under the Servicing Agreement or Cash Manager under the Cash Management Agreement, while the Bank is the Servicer or Cash Manager, respectively, with respect to the holding and transfer of any amounts received by the Bank in its capacity as Servicer or Cash Manager.

 

  

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2.5

	
Exercise of Rights

 

Nothing contained herein shall require any Secured Party to exercise any right, or affect the right of any Secured Party to exercise and retain the benefits of exercising any right, with respect to any Borrower.

 

ARTICLE III – SERVICING

 

	
3.1

	
Single Servicer for Related Loans and their Shared Security

 

Related Loans and their Shared Security will be serviced by a single servicer (including any sub-servicers retained by such servicer), which will be the beneficial owner (or owner) of the Guarantor LP Purchased Loans forming part of such Related loans or a servicer appointed by such beneficial owner (or owner) .

 

	
3.2

	
Servicer

 

For so long as the Servicer is the Bank, the Guarantor LP Purchased Loans will be serviced in accordance with the terms of the Servicing Agreement and the Bank shall service or cause the Bank Retained Loans to be serviced in accordance with the originating, underwriting, administration (interest rate setting), arrears and enforcement policies applied from time to time by the Bank in the ordinary course of its business to loans and their related security which are beneficially owned solely by the Bank.

 

	
3.3

	
Replacement Servicer

 

In the event that the Servicer ceases to be the Bank, the Guarantor LP shall forthwith arrange for the servicing of any Related Loans and their Shared Security with a new Servicer (each a Replacement Servicer) in a manner which ensures continuity of servicing and is authorized to do so without any further consent on the part of the beneficial owner (or owner) of Bank Retained Loans provided that the Replacement Servicer meets the following requirements and enters into a servicing agreement in favour of the Guarantor LP and the Bank that meets the following requirements and provides that:

 

	 	
(a)

	
such Replacement Servicer:

 

	 	
(i)

	
possesses the necessary experience, qualifications, facilities and other resources to perform its responsibilities under the applicable servicing agreement;

 

	 	
(ii)

	
meets or exceeds the minimum standards, if any, prescribed by the Rating Agencies, and meets or exceeds the Servicer Replacement Ratings;

 

	 	
(iii)

	
if regulated, it is in regulatory good standing;

 

	 	
(iv)

	
is in material compliance with its internal policies and procedures (including risk management policies), if any, relevant to the execution, delivery and performance of the applicable servicing agreement;

 

  

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(v)

	
is in material compliance with all laws, regulations and rules applicable to the Replacement Servicer relevant to the execution, delivery and performance of the applicable servicing agreement; and

 

	 	
(vi)

	
covenants to comply with, and perform its obligations under, the provisions of the Guide, and of the Transaction Documents to which it is a party, in each case applicable to it;

 

	 	
(b)

	
Related Loans are serviced by the Replacement Servicer under a single servicing agreement;

 

	 	
(c)

	
the terms of the applicable servicing agreement are commercially reasonable having regard to the interest of each of the Secured Parties in the Related Loans and Shared Security being serviced thereunder;

 

	 	
(d)

	
the Bank Retained Loans are serviced in accordance with the Seller’s Policy and otherwise in accordance with the standards of a Reasonable and Prudent Mortgage Lender and such servicing complies with any laws applicable the Bank and the servicing of the Bank’s assets;

 

	 	
(e)

	
the costs of any such Replacement Servicer are allocated on an equitable basis between the Guarantor LP and the Bank having regard to the relative proportions of the Bank Retained Loans and Guarantor LP Purchased Loans serviced under such Servicing Agreement;

 

	 	
(f)

	
the Replacement Servicer shall not be permitted to authorize, approve, accept or make any Product Switch, Additional Loan Advance or Further Advance or the like or waive any requirement to pay under the Relevant Loan Documents in respect of any the Bank Retained Loans without the prior written consent of the Bank;

 

	 	
(g)

	
the Bank shall be included as an additional insured under the policies of insurance, if any, carried by such Replacement Servicer in respect of third party liability, fire and all perils, and extended coverage claims applicable to or relating to the Bank Retained Loans and their Shared Security serviced by such Replacement Servicer;

 

	 	
(h)

	
subject to Section 2.2, the Replacement Servicer will hold any Collections or other amounts including insurance proceeds in respect of the Bank Retained Loans, including any Enforcement Proceeds to which the Bank is entitled in accordance with Section 2.2, in trust for the Bank and shall keep such money for the Bank distinguishable and in a separate account from all other monies held by the Replacement Servicer and shall, as soon as reasonably practicable and in any event shall at the end of each Business Day, transfer such monies to the Bank or such Person as the Bank may direct;

 

	 	
(i)

	
the servicing agreement shall provide for record keeping, information and reporting, and data protection covenants and indemnities, in accordance with Seller’s Policy, as applicable, and that are sufficient to allow the Bank to meet its financial and regulatory reporting obligations and which are in any event no less favourable than those provided to the Guarantor LP in respect of Guarantor LP Purchased Loans;

 

  

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(j)

	
the servicing agreement shall expressly provide that the Replacement Servicer does not have any interest in the Bank Retained Loans and shall not sell any the Bank Retained Loans without the prior written consent of the Bank;

 

	 	
(k)

	
the Replacement Servicer shall make it clear in any correspondence with Borrowers, upon request by the Bank or when obligated by law to disclose such information, that the Replacement Servicer is acting in its capacity as servicer of the Bank in respect of the Bank Retained Loans and related matters as agent for and on behalf of the Bank and not on its own behalf and the Replacement Servicer shall upon the written request of the Bank carry out the servicing of the Bank Retained Loans in the name of the Bank;

 

	 	
(l)

	
the beneficial owner (or owner) of the Bank Retained Loans forming part of such Related Loans will be a third party beneficiary of the rights under the servicing agreement; and

 

	 	
(m)

	
any amendment or waiver of such servicing agreement must comply with the Guide and require the written agreement of each of the parties to such servicing agreement and the Bank.

 

Nothing in this Agreement is intended to limit the Guarantor LP from entering into a servicing agreement with the Replacement Servicer to provide for the servicing of the Guarantor LP Purchased Loans and their Related Security on substantially the same terms as the Servicing Agreement. For greater certainty, nothing in this Section 3.3 is intended to limit the rights and interests of the parties hereto as set forth in this Agreement.

 

	
3.4

	
Termination of the Servicer in respect of a sale of Guarantor LP Purchased Loans

 

	 	
(a)

	
Notwithstanding the terms of the Servicing Agreement (including Section 17.3 of the Servicing Agreement) or any other servicing agreement entered into with any Replacement Servicer, the servicing of any Related Loans shall not be terminated by the Guarantor LP or any purchaser in connection with any sale of Guarantor LP Purchased Loans forming part of such Related Loans unless the purchaser of such Guarantor LP Purchased Loans meets the requirements of a Replacement Servicer under Section 3.3 and enters into an agreement to service the Bank Retained Loans forming part of such Related Loans in accordance with the requirements of Section 3.3 or, where such purchaser will not be the servicer of such Loans,  such purchaser enters into a servicing agreement to provide for the servicing of the Related Loans, including the Bank Retained Loans forming part of such Related Loans, in accordance with the requirements of Section 3.3 with a servicer that meets the requirements of a Replacement Servicer under Section 3.3.

 

	 	
(b)

	
The person servicing Related Loans pursuant to any agreement entered into pursuant to Section 3.4(a) will be deemed to be a Replacement Servicer for purposes of this Agreement.

 

  

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3.5

	
Enforcement Procedures

 

Notwithstanding anything in Section 3.3, each of the Secured Parties holding Related Loans, shall refrain from taking any Enforcement Procedures in respect of Related Loans unless directed by the Servicer or Replacement Servicer, as applicable, and the Servicer or Replacement Servicer shall be solely entitled to take Enforcement Procedures in respect of such Related Loans and their Shared Security and shall take such Enforcement Procedures in accordance with the Servicing Agreement (or the servicing agreement entered into with the Replacement Servicer), this Agreement and the terms of such Related Loans and their Shared Security as it would be reasonable to expect a Reasonable and Prudent Mortgage Lender to take in administering its Loans and their Related Security, in accordance with applicable laws, provided that the Servicer or Replacement Servicer, as applicable, shall (i) where practicable prior to taking any Enforcement Procedure, and (ii) in any event simultaneously with taking any Enforcement Procedure, provide the Bank, by the fastest means possible, a copy of any notices sent to the Borrower along with the details of any Enforcement Procedure (to the extent not included in copies of the relevant notice(s) so delivered) and the Bank shall not take any action that conflicts with such Enforcement Procedure.

 

	
3.6

	
Power of Attorney

 

For good and valuable consideration the Bank (solely in respect of any Bank Retained Loans and its interest in their Shared Security) hereby appoints Guarantor LP as its attorney on its behalf, and in its own or the attorney's name, for the following purposes:

 

	 	
(a)

	
executing all documents and doing all such acts and things which in the reasonable opinion of Guarantor LP are necessary or desirable for engaging a Replacement Servicer to service any Bank Retained Loans and their Shared Security in accordance with Section 3.3; and

 

	 	
(b)

	
authorizing the Replacement Servicer retained in accordance with Section 3.3 to execute and deliver for and on behalf of the Bank any and all instruments of satisfaction, cancellation or of partial or full postponement, release or discharge, and all other comparable instruments, with respect to the Bank Retained Loans and their Shared Security, to the extent permitted under and in compliance with applicable laws, to commence Enforcement Procedures with respect to such Bank Retained Loans and their Shared Security, to demand and receive payment of all monies owing in respect of such Bank Retained Loans and their Shared Security, to give releases and discharges therefor, to arrange settlements and compromises in accordance with sound collection practices and to enforce any and all rights incidental to such Bank Retained Loans and their Shared Security, in each case, in accordance with any servicing agreement entered into in accordance with Section 3.3,

 

provided that such power of attorney shall not extend to agreeing to any amendment or waiver in respect of any agreement entered into with a Replacement Servicer and the Bank shall not be liable or responsible for the acts of the Guarantor LP or the Replacement Servicer or any failure by the Guarantor LP or the Replacement Servicer to act under or in respect of this power of attorney.  The appointment contained in Section 3.6 shall be irrevocable except with the prior written consent of the Guarantor LP and the Bond Trustee.

 

  

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ARTICLE IV – PURCHASE AND SALE OF GUARANTOR LP PURCHASED LOANS

 

	
4.1

	
Pre-Emptive Right under Mortgage Sale Agreement

 

	 	
(a)

	
Any sale by Guarantor LP of any Guarantor LP Purchased Loan shall be subject to Article 8 of the Mortgage Sale Agreement.

 

	 	
(b)

	
Without limiting Article 8 of the Mortgage Sale Agreement, in the event that the Guarantor LP notifies the Bank that it intends to sell Loans and their Related Security which include Guarantor LP Purchased Loans and their Shared Security, the Bank may, upon not less than five Business Days prior written notice to the Guarantor LP and the Custodian provided prior to the date on which such Loans and their Related Security may be sold pursuant to the terms of the Mortgage Sale Agreement, purchase from the Guarantor LP, in accordance with the terms of such notice, such Guarantor LP Purchased Loans and Shared Security. For greater certainty the Guarantor LP shall not sell any Guarantor LP Purchased Loans and their Shared Security until five Business Days following notice to the Bank that it intends to sell such Loans and their Shared Security.

 

	 	
(c)

	
Any notice delivered by the Bank pursuant to Section 4.1(b) shall identify the relevant Guarantor LP Purchased Loans to be purchased by the Bank, the purchase price for such Guarantor LP Purchased Loans, which shall be an amount at which such Guarantor LP Purchased Loans may be sold determined in accordance with Article 7 of the Guarantor LP Agreement and comply with the requirements of the Guide and the consideration to be provided for such sale, transfer and assignment in satisfaction of such purchase price, which shall be in a form permitted under the Guide.

 

	 	
(d)

	
Upon receiving any notice pursuant to Section 4.1(b), the Guarantor LP shall take such steps as may be reasonably required by the Bank to sell, assign and transfer all right, title and interest free and clear of any Adverse Claim created by the Guarantor LP in the Guarantor LP Purchased Loans specified in such notice and their Shared Security to the Bank in accordance with the terms of such notice and shall not sell such Guarantor LP Purchased Loans or their Shared Security to any other Person.

 

	
4.2

	
Purchase

 

	 	
(a)

	
In the event that the Bank desires to acquire Guarantor LP Purchased Loans for any reason, including instituting Enforcement Procedures in respect of the Shared Security for any Bank Retained Loan or following receipt of a notice pursuant to Section 3.5 or otherwise becoming aware that Enforcement Procedures have been or are intended to be instituted in respect of any Shared Security, the Bank may, upon not less than five Business Days prior written notice to the Guarantor LP and the Custodian, purchase the Guarantor LP Purchased Loans in respect of such Shared Security in accordance with the terms of such notice from the Bank.

 

  

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(b)

	
Any notice delivered by the Bank pursuant to Section 4.2(a) shall identify the relevant Guarantor LP Purchased Loans to be purchased by the Bank, the purchase price for such Guarantor LP Purchased Loans, which shall be an amount at which such Guarantor LP Purchased Loans may be sold determined in accordance with Article 7 of the Guarantor LP Agreement and comply with the requirements of the Guide and the consideration to be provided for such sale, transfer and assignment in satisfaction of such purchase price, which shall be in a form permitted under the Guide.

 

	 	
(c)

	
Upon receiving any such notice pursuant to Section 4.2(a), provided that following such sale (i) the Guarantor LP will meet the Asset Coverage Test, or at such time as the Amortization Test is being conducted, the Amortization Test, as applicable, will be met; and (ii) such sale would not (or would not reasonably be expected to) adversely affect the interests of Covered Bondholders, the Guarantor LP shall take such steps as may be reasonably required by the Bank to sell, assign and transfer all right, title and interest free and clear of any Adverse Claim created by the Guarantor LP in the Guarantor LP Purchased Loans, specified in such notice, and the Shared Security in respect of such Guarantor LP Purchased Loans to the Bank in accordance with the terms of such notice.

 

ARTICLE V – RELEASE OF SECURITY

 

	
5.1

	
Release of Security

 

	 	
(a)

	
The Custodian hereby confirms having received from the Bank a release of security (a Release of Security) as of the date hereof substantially in the form attached as Exhibit A to this Agreement with respect to the Shared Security for all Related Loans existing as of the date hereof.

 

	 	
(b)

	
The Bank covenants to deliver a Release of Security in respect of the Shared Security for all Related Loans upon the sale or contribution of any such Related Loans to the Guarantor LP.

 

	
5.2

	
Delivery of the Release

 

	 	
(a)

	
The Custodian shall hold all Releases of Security delivered to it as Custodial Documents in accordance with the terms of the Custodial Agreement and this Agreement, provided that to the extent of any inconsistency between the terms of this Agreement and the terms of the Custodial Agreement, the terms of this Agreement will govern. Subject to making available the Releases of Security to the Asset Monitor or CMHC in accordance with the terms of the Custodial Agreement (provided that the Custodian shall not permit copies to be made of the Releases of Security without the prior written consent of the Bank) and delivering such Releases of Security to any replacement Custodian in accordance with the terms of the Custodial Agreement, the Custodian shall deliver any such Release of Security solely in accordance with this Section 5.2.

 

  

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(b)

	
Following the receipt of (i) a notice from the Servicer pursuant to Section 12.5(a) of the Servicing Agreement or a notice from a Replacement Servicer delivered pursuant to corresponding provisions of the servicing agreement with such Replacement Servicer, or (ii) such other evidence satisfactory to the Custodian (acting reasonably) of circumstances properly the subject of such a notice which evidence may be provided concurrently with a request by a beneficial owner (or owner) pursuant to this Section 5.2(b), any beneficial owner (or owner) of Guarantor LP Purchased Loans forming part of the affected Related Loans identified in the notice that is a party to this Agreement may deliver a request in writing to the Custodian and each other beneficial owner (or owner) of such affected Related Loans party to this Agreement requesting delivery by the Custodian of the Release of Security in respect of the Shared Security for such Related Loans and identifying the Independent Legal Counsel (as such term is used in the Guide) that is to deliver the Release Opinion (as defined below).

 

	 	
(c)

	
Provided that the Independent Legal Counsel identified in any notice delivered pursuant to Section 5.2(b) is acceptable to the Custodian, the party delivering a request pursuant to Section 5.2(b) in respect of the affected Related Loans identified in such notice shall engage such Independent Legal Counsel to provide a legal opinion (Release Opinion) addressed to the Custodian and each of the holders of the affected Related Loans, in form and substance satisfactory to the Custodian, confirming that in respect of the affected Related Loans:

 

	 	
(i)

	
(A) a notice was properly given by the Servicer to the Custodian pursuant to Section 12.5(a) of the Servicing Agreement or by a Replacement Servicer under any corresponding provision of the servicing agreement with such Replacement Servicer in respect of the affected Related Loans; or (B) the Custodian has been given other evidence satisfactory to the Custodian (acting reasonably) of circumstances properly the subject of such a notice; and

 

	 	
(ii)

	
a request to deliver the Release if Security in respect of the affected Related Loans that complies with Section 5.2(b) has been properly given to the Custodian;

 

	 	
(iii)

	
the Bank or any beneficial owner (or owner) of Bank Retained Loans forming part of the affected Related Loans that has executed and delivered a counterpart to this Agreement in respect of such Bank Retained Loans has provided advice to the Servicer in respect of the affected Related Loans that breaches or causes a breach of Sections 2.2, 2.4, 3.1 or 3.5, or otherwise breached Sections 2.2, 2.4, 3.1 or 3.5, which breach has not been remedied or advice withdrawn, as applicable, by the person responsible for such breach or that provided such advice, within 60 days (or, after an Issuer Event of Default, 10 Business Days) of such person receiving notice of such breach or such advice having been received from the Servicer or any Replacement Servicer under any corresponding provision of the servicing agreement with such Replacement Servicer in respect of the affected Related Loans; or

 

  

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(iv)

	
any Bank Retained Loan forming part of the affected Related Loans has been sold, transferred or assigned to a Person that has not executed and delivered (A) a counterpart to this Agreement to the parties to this Agreement substantially in the form of Exhibit B agreeing to be bound by the obligations of the Bank under this Agreement with respect to such affected Bank Retained Loan and its Shared Security; and (B) a Release of Security to the Custodian in respect of the Shared Security for such affected Bank Retained Loan to be held as a Release of Security under this Agreement (unless such sale, transfer or assignment results in a single Person beneficially owning (or owning) all of the Related Loans); or

 

	 	
(v)

	
the Bank or any beneficial owner (or owner) of Bank Retained Loans forming part of the affected Related Loans that has executed and delivered a counterpart to this Agreement in respect of such Bank Retained Loans has commenced a challenge to the validity, legality or enforceability of Sections 2.2, 2.4, 3.1 or 3.5 in relation to any affected Related Loans in legal proceedings before a court of competent jurisdiction.

 

Any such opinion of the Independent Legal Counsel shall be binding on the parties to this Agreement absent manifest error. A Release Opinion may assume or rely upon the accuracy of factual matter’s set out in the notice delivered by the Servicer pursuant to Section 12.5(a) of the Servicing Agreement or by a Replacement Servicer under any corresponding provision of the servicing agreement with such Replacement Servicer, absent manifest error, and on matters of fact from appropriate officers or directors of a person reasonably expected to have knowledge of such matters.  In the event that the Independent Legal Counsel identified in any notice delivered pursuant to Section 5.2(b) is not acceptable to the Custodian, the Custodian and the party that delivered such notice shall cooperate to promptly select an Independent Legal Counsel satisfactory to each of them and provide notice to each other beneficial owner (or owner) of the affected Related Loans of the Independent Legal Counsel selected to provide the Release Opinion.

 

	 	
(d)

	
Upon receipt of a Release Opinion, the Custodian shall provide the Release of Security in respect of the Shared Security for the affected Related Loans specified in the Release Opinion to the beneficial owner (or owner) of the Guarantor LP Purchased Loans forming part of such Related Loans.

 

	 	
(e)

	
Prior to delivering any Release of Security pursuant to Section 5.2(d), the Custodian shall redact from the schedule of Loans to such Release of Security information in respect of those Loans and their Shared Security which are not affected Related Loans specified in the relevant Release Opinion.

 

	 	
(f)

	
No party to this Agreement shall use or allow any person on its behalf to use, deliver, register, deposit with, or cause any person to rely on any Release of Security in respect of any Shared Security for which no Release Opinion has been delivered.

 

	 	
(g)

	
The Bank may provide notice to the Guarantor LP, Bond Trustee and Custodian from time to time that it desires to replace one or more Releases of Security held by the Custodian from time to time to remove any Guarantor LP Purchased Loans that have been repaid in full or purchased by the Bank and the parties hereto shall cooperate with the Bank in facilitating such replacement. The Custodian shall hold any replacement Release of Security delivered in accordance with this Section 5.2(g) in accordance with this Section 5.2.

 

  

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(h)

	
Any party to this Agreement that has received a Release of Security from the Custodian pursuant to Section 5.2 shall deliver such Release of Security to the party that purchases the Guarantor LP Purchased Loans related to the Shared Security to which such Release of Security relates.

 

	
5.3

	
Return of Shared Security

 

	 	
(a)

	
The Guarantor LP hereby transfers and conveys to the Bank any and all interest it may have in any Shared Security for which all amounts owing under any Guarantor LP Purchased Loans secured by such Shared Security have been paid in full.

 

	 	
(b)

	
The transfer and conveyance in this Section 5.3 shall occur automatically upon payment in full of such Guarantor LP Purchased Loans without any further action on the part of any Person and the Guarantor LP hereby confirms that the Release of Security delivered hereunder in respect of such Shared Security shall have no force or effect in respect if any such Shared Security following such date.

 

	 	
(c)

	
In the event that the transfer of such Shared Security under the Mortgage Sale Agreement has been Perfected, the Guarantor LP shall take such actions, execute, deliver and file such documents and notices, at the expense of the Bank, as the Bank may reasonably request to effect any transfer of such Shared Security pursuant to this Section 5.3.

 

ARTICLE VI – TERMINATION

 

	
6.1

	
Termination

 

This Agreement and the Release of Security shall terminate:

 

	 	
(a)

	
in respect of any Related Loans and their Shared Security upon the Related Loans being owned by a single holder; and

 

	 	
(b)

	
upon the mutual written agreement of the parties hereto.

 

ARTICLE VII – GENERAL

 

	
7.1

	
Notice

 

Any notice, direction or other communication given under this Agreement shall be in writing and given by delivering it or sending it by prepaid first class mail to the registered office of such person set forth above unless an alternative address is provided below, in which case delivery shall be to the address provided below, or by facsimile transmission to facsimile number set forth below, as applicable:

 

  

- 13 -

  

 

	 	
(a)

	
to Guarantor LP:

 

RBC Covered Bond Guarantor Limited Partnership

c/o RBC Covered Bond GP Inc.

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada M5V 3K7

Attention: Senior Manager, Securitization

Facsimile number: (416) 976-1368

	 	
(b)

	
to the Bank:

 

Royal Bank of Canada

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada M5V 3K7

Attention: Senior Manager, Securitization

Facsimile number: (416) 974-1368

 

	 	
(c)

	
to the Bond Trustee or Custodian:

 

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario

Canada  M5J 2Y1

Attention: Manager, Corporate Trust

Facsimile number: (416) 981-9777

with a copy (that shall not constitute notice to):

 

 

RBC Law Group

 

c/o Royal Bank of Canada

Royal Bank Plaza, South Tower, 8th Floor

200 Bay Street

Toronto, Ontario M5J 2J5

 

Attention: General Counsel

Facsimile number: (416) 974-3861

-and-

Norton Rose Fulbright Canada LLP

Royal Bank Plaza, South Tower, Suite 3800

200 Bay Street, P.O. Box 84

Toronto, Ontario M5J 2Z4

Attention: Andrew Fleming

Facsimile number: (416) 216-3930

 

  

- 14 -

  

 

Any such communication will be deemed to have been validly and effectively given (i) if personally delivered, on the date of such delivery if such date is a Business Day and such delivery was made prior to 4:00 p.m. (Toronto time) and otherwise on the next Business Day, (ii) in the case of first class post, when it would be received in the ordinary course of the post, or (ii) if transmitted by facsimile transmission on the Business Day following the date of transmission provided the transmitter receives a confirmation of successful transmission. Any party may change its address for notice, or facsimile contact information for service from time to time by notice given in accordance with the foregoing and any subsequent notice shall be sent to such party at its changed address, or facsimile contact information, as applicable.

 

	
7.2

	
Assignment

 

	 	
(a)

	
This Agreement and any Release of Security shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

	 	
(b)

	
The parties hereto intend that the rights and obligations hereunder and under the Release of Security with respect to any Related Loans and their Shared Security attach to such Related Loans and their Shared Security and shall enure to the benefit of and be binding upon the successors and assigns to such Related Loans and their Shared Security.

 

	 	
(c)

	
Each of the Secured Parties shall cause any person purchasing Related Loans and their Shared Security from such Secured Party to execute a counterpart to this Agreement agreeing to be bound by the obligations of such Secured Party hereunder with respect to the Related Loans and Shared Security being purchased, in the form of Exhibit B in the case of a purchaser of Bank Retained Loans and in the form of Exhibit C in the case of a purchaser of Guarantor LP Retained Loans.

 

	 	
(d)

	
Notwithstanding anything in this Agreement, Article IV shall not apply to any the beneficial owner (or owner) of Guarantor LP Loans and their Shared Security following a sale of such Guarantor LP Loans and their Shared Security to a purchaser other than the Bank or its Affiliates made in accordance with Article IV and the other Transaction Documents.

 

	
7.3

	
No Rights to Borrowers.

 

Nothing in this Agreement shall be construed so as to:

 

	 	
(a)

	
entitle the Borrower or any other Person that is not a signatory to this Agreement to receive any proceeds of realization of any of the assets of any Borrower;

 

	 	
(b)

	
confer any rights upon any Borrower or any other Person not a party to this Agreement to enforce any covenant of any party hereunder; and

 

  

- 15 -

  

 

	 	
(c)

	
require or obligate any party hereto to: (i) advance any monies or otherwise extend credit to any Borrower at any time, or (ii) enforce or realize upon the property, assets or undertaking of any Borrower.

 

	
7.4

	
Further Assurances.

 

The parties hereto agree that they shall at all times do, execute, acknowledge and deliver all such acts, deeds and agreements as may be reasonably necessary or desirable to give effect to the terms and provisions of this Agreement including any and all acts, deeds or agreements as may be necessary for the purpose of registering or filing notice of the terms and provisions of this Agreement.

 

	
7.5

	
Entire Agreement

 

This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations, understandings and agreements with respect to the matters contemplated herein.  This Agreement may not be amended or modified in any respect except by written instrument executed by the parties.

 

	
7.6

	
Severability

 

If any provision of this Agreement or any document delivered in connection with this Agreement is partially or completely invalid or unenforceable, the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, all of which shall be construed and enforced as if that invalid or unenforceable provision were omitted.  The invalidity or unenforceability of any provision in one jurisdiction shall not affect such provisions validity or enforceability in any other jurisdiction.

 

	
7.7

	
Amendments and Waivers

 

Any amendments or waiver to this Agreement will be made only with the prior written consent of in the case of any amendment, each party to this Agreement and in the case of any waiver to this Agreement, the Guarantor LP, the Bank and each party whose rights are being waived.  Each proposed amendment or waiver of this Agreement that is considered by the Guarantor LP to be a material amendment or waiver shall be subject to Rating Agency Confirmation and the Guarantor LP (or the Cash Manager on its behalf) shall deliver notice to the Rating Agencies of any amendment or waiver which does not require Rating Agency Confirmation provided that failure to deliver such notice shall not constitute a breach of the obligations of the Guarantor LP under this Agreement. For greater certainty the execution of a counterparty by any person in substantially the form attached hereto will not constitute an amendment to this Agreement for purposes of this Section 7.7.

 

	
7.8

	
Bond Trustee

 

	 	
(a)

	
If there is any change in the identity of the Bond Trustee, the parties to this Agreement shall execute such documents and take such action as the successor Bond Trustee and the outgoing Bond Trustee may reasonably require for the purpose of vesting in the successor Bond Trustee the rights and obligations of the outgoing Bond Trustee under this Agreement.

 

  

- 16 -

  

 

	 	
(b)

	
The Bond Trustee has agreed to become a party to this Agreement for the better preservation and enforcement of its rights under this Agreement but shall have no responsibility for any of the obligations of, nor assume any liabilities to, the Bank or the Guarantor LP hereunder.  For the avoidance of doubt, the parties to this Agreement acknowledge that the rights and obligations of the Bond Trustee are governed by the Trust Deed and the Security Agreement.  Any liberty or right which may be exercised or any determination which may be made under this Agreement by the Bond Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefor and the Bond Trustee shall not be responsible for any liability occasioned by so acting, if acting in accordance with the terms of the Trust Deed and the Security Agreement, but without prejudice to the obligation of the Bond Trustee to act reasonably.

 

	
7.9

	
Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein and each of the parties irrevocably attorns to the non-exclusive jurisdiction of the courts of the Province of Ontario.

 

	
7.10

	
Counterparts

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement.  Transmission by facsimile of an executed counterpart of this Agreement shall be deemed to constitute due and sufficient delivery of such counterpart.

 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

  

- 17 -

  

 

IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date written above.

 

	  	
RBC COVERED BOND GUARANTOR 

LIMITED PARTNERSHIP, acting by its 

managing general partner RBC COVERED 

BOND GP INC.

 

	  	  	
Per:

	
/s/ David Power

	  	  	  	
Name: David Power

	  	  	  	
Title:  President

 

	  	  	
ROYAL BANK OF CANADA

 

	
Per:

	
/s/ James Salem

	  	
Name:  James Salem

	  	
Title:  Executive Vice-President and Treasurer

	  	  
	
Per:

	
/s/ David Power

	  	
Name: David Power

	  	
Title: Vice-President, Corporate Treasury

 

	  	  	
COMPUTERSHARE TRUST COMPANY 

OF CANADA, as Bond Trustee and Custodian

 

	
Per:

	
/s/ Mircho Mirchev

	  	
Name: Mircho Mirchev

	  	
Title:  Corporate Trust Officer

	
Per:

	
/s/ Stanley Kwan

	  	
Name: Stanley Kwan

	  	
Title:  Associate Trust Officer

 

  

  

  

 

EXHIBIT A

 

RELEASE OF SECURITY

 

This Release of Security is delivered pursuant to and in accordance with the terms of a Security Sharing Agreement dated June 24, 2013 (as the same may be amended, restated or replaced from time to time, the “Security Sharing Agreement”) between Royal Bank of Canada, RBC Covered Bond Guarantor Limited Partnership and Computershare Trust Company of Canada, as Bond Trustee and Custodian, and the Guide. Capitalized terms used and not otherwise defined in this Release of Security have the meaning given to such terms in the Security Sharing Agreement.

 

Royal Bank of Canada hereby relinquishes in respect of any Mortgage or hypothecary instruments (which shall include any collateral mortgages) securing loans identified in the Schedule of Mortgages attached, any and all interest or right it has in or to such Mortgage or hypothecary instruments (which shall include any collateral mortgages) in favour of RBC Covered Bond Guarantor Limited Partnership.

 

The Mortgages have been sold to RBC Covered Bond Guarantor Limited Partnership under the terms of Mortgage Sale Agreement initially dated October 27, 2007 as the same has been most recently amended and restated as of June 24, 2013 between Royal Bank of Canada, as Seller, RBC Covered Bond Guarantor Limited Partnership and Computershare Trust Company of Canada, as Bond Trustee, in connection with Royal Bank of Canada’s Global Covered Bond Programme.

 

Royal Bank of Canada further undertakes to sign any other document upon presentation so as to give full effect to the relinquishment set forth in this Release of Security.

 

Royal Bank of Canada

Royal Bank Plaza, South Tower,

8th Floor, 200 Bay Street,

Toronto, Ontario,

Canada M5J 2J5

 

	
ROYAL BANK OF CANADA

 

	
Per:

	  
	  	
  Name:

	  	
  Title:

	
Per:

	  
	  	
  Name:

	  	
  Title:

 

Dated:___________________, 20__

 

  

  

  

 

EXHIBIT B

 

FORM OF COUNTERPART FOR PURCHASER

OF THE BANK RETAINED LOANS

 

	
TO:

	
ROYAL BANK OF CANADA (the “Bank”)

 

	
AND TO:

	
RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP (the “Guarantor LP”)

 

	
AND TO:

	COMPUTERSHARE TRUST COMPANY OF CANADA (the “Custodian”)

 

 

WHEREAS the Bank, the Guarantor LP, and the Custodian have entered into the Security Sharing Agreement (the “Agreement”) dated as of June 24, 2013;

 

AND WHEREAS the Agreement requires that any person purchasing Bank Retained Loans from the Bank must execute and deliver a counterpart to the Agreement agreeing to be bound by the obligations of the Bank with respect to the Bank Retained Loans being purchased;

 

AND WHEREAS the undersigned agrees to execute this counterpart in connection with purchasing Bank Retained Loans from the Bank;

 

AND WHEREAS all of the capitalized terms used herein have the meanings ascribed to them in the Agreement or in the Master Definitions and Construction Agreement;

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged:

 

	
  

	
1.

	
The undersigned hereby acknowledges having received a copy of the Agreement and having read the Agreement in its entirety;

 

	
  

	
2.

	
In executing this counterpart to the Agreement, the undersigned hereby covenants and agrees to be bound by the obligations of the Bank with respect to the Bank Retained Loans as outlined in the Agreement;

 

	
  

	
3.

	
Any notices, directions or other communication delivered to the undersigned pursuant to Section 7.1 of the Agreement should be delivered to the address provided below:

 

[insert purchaser address]

 

	
  

	
4.

	
This counterpart to Agreement is governed by and is to be interpreted, construed and enforced in accordance with the Laws of the Province of Ontario and the federal Laws of Canada applicable therein (without application of any conflicts of Laws rules thereunder).

 

 

[The remainder of this page has been intentionally left blank. Signature page follows.]

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned has caused this counterpart agreement to be executed as of this ___ day of __________, 2013.

 

If an individual:

 

 

	 	 	 
	

Witness

	 	 Name:

 

 

If a corporate or other entity:

 

 

	  	
 

	 	 	Name:	 
	 	 	 	 
	  	  	
Per:

	  
	  	  	  	
  Name:

	  	  	  	
  Title:

 

 

 

 

 

  

- 2 -

  

 

EXHIBIT C

 

FORM OF COUNTERPART FOR PURCHASER

OF THE GURANTOR LP PURCHASED LOANS

 

	
TO:

	
RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP (the “Guarantor LP”)

	
AND TO:

	
ROYAL BANK OF CANADA (the “Bank”)

 

	
AND TO:

	

COMPUTERSHARE TRUST COMPANY OF CANADA (the "Custodian”) 

 

 

WHEREAS the Guarantor LP, the Bank and the Custodian have entered into the Security Sharing Agreement (the “Agreement”) dated as of June 24, 2013;

 

AND WHEREAS the Agreement requires that any person purchasing Guarantor LP Purchased Loans from the Guarantor LP must execute and deliver a counterpart to the Agreement agreeing to be bound by the obligations of the Guarantor LP with respect to the Guarantor LP Purchased Loans being purchased;

 

AND WHEREAS the undersigned agrees to execute this counterpart in connection with purchasing Guarantor LP Purchased Loans from the Guarantor LP;

 

AND WHEREAS all of the capitalized terms used herein have the meanings ascribed to them in the Agreement;

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged:

 

	
  

	
1.

	
The undersigned hereby acknowledges having received a copy of the Agreement and having read the Agreement in its entirety;

 

	
  

	
2.

	
In executing this counterpart to the Agreement, the undersigned hereby covenants and agrees to be bound by the obligations of the Guarantor LP with respect to the Guarantor LP Purchased Loans as outlined in the Agreement;

 

	
  

	
3.

	
Any notices, directions or other communication delivered to the undersigned pursuant to Section 7.1 of the Agreement should be delivered to the address provided below:

 

[insert purchaser address]

 

	
  

	
4.

	
This counterpart to Agreement is governed by and is to be interpreted, construed and enforced in accordance with the Laws of the Province of Ontario and the federal Laws of Canada applicable therein (without application of any conflicts of Laws rules thereunder).

 

 

[The remainder of this page has been intentionally left blank. Signature page follows.]

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned has caused this counterpart agreement to be executed as of this ___ day of __________, 2013.

 

If an individual:

 

 

	 	 	 
	

Witness

	 	 Name:

 

 

If a corporate or other entity:

 

 

	  	
 

	 	 	Name:	 
	 	 	 	 
	  	  	
Per:

	  
	  	  	  	
  Name:

	  	  	  	
  Title:

 

 - 2 -Unassociated Document

EXHIBIT 4.18

 

 

CUSTODIAL AGREEMENT

 

by and among

 

RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP

as Guarantor LP

 

and

 

ROYAL BANK OF CANADA

as Issuer

 

and

 

COMPUTERSHARE TRUST COMPANY OF CANADA

as Custodian and Bond Trustee

 

June 24, 2013

 

 

  

  

  

Table of Contents

 

	
Section

	  	
Page

	  	  	  
	  	  	  
	
SECTION 1

	  	  
	
DEFINITIONS AND INTERPRETATION

	
1

	
1.1  

	
Master Definitions and Construction Agreement

	
1

	  	  	  
	
SECTION 2

	  	  
	
APPOINTMENT OF CUSTODIAN

	
2

	
2.1  

	
Appointment of Custodian.

	
2

	
2.2  

	
Representations, Warranties and Covenants of the Custodian

	
2

	  	  	  
	
SECTION 3

	  	  
	
CONCERNING THE CUSTODIAN

	
3

	
3.1  

	
General Powers and Duties.

	
3

	
3.2  

	
Acknowledgment of Receipt of Custodial Documents.

	
3

	
3.3  

	
Confidentiality.

	
4

	  	  	  
	
SECTION 4

	  	  
	
CONCERNING THE CUSTODIAL DOCUMENTS

	
4

	
4.1  

	
Access to and release of Custodial Documents

	
4

	
4.2  

	
Access to Asset Monitor and CMHC in respect of Custodial Documents

	
5

	  	  	  
	
SECTION 5

	  	  
	
COMPENSATION AND EXPENSES

	
5

	
5.1  

	
Fees and Expenses.

	
5

	
5.2  

	
Financial Liability of Custodian

	
5

	  	  	  
	
SECTION 6

	  	  
	
TERMINATION AND REPLACEMENT

	
5

	
6.1  

	
Termination.

	
5

	
6.2  

	
Delivery of Assets.

	
6

	  	  	  
	
SECTION 7

	  	  
	
NOTICE

	  	
6

	
7.1  

	
Notices.

	
6

	  	  	  
	
SECTION 8

	  	  
	
MISCELLANEOUS

	
7

	
8.1  

	
Representation.

	
7

	
8.2  

	
Subordination of Rights

	
7

	
8.3  

	
The Bond Trustee

	
8

	
8.4  

	
Indemnity

	
8

	
8.5  

	
Entire Agreement.

	
8

	
8.6  

	
Further Provisions

	
9

	
8.7  

	
Non-Petition

	
9

	
8.8  

	
Modification

	
9

	
8.9  

	
Counterparts

	
9

	
8.10

	
No Assignment

	
10

	
8.11

	
Governing Law

	
10

	
8.12

	
Submission to Jurisdiction

	
10

  

  

  

 

CUSTODIAL AGREEMENT

 

THIS CUSTODIAL AGREEMENT is made as of the 24th day of June, 2013.

 

BY AND AMONG:

	
(1)

	
RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP, a limited partnership formed under the laws of the Province of Ontario, whose principal office of the Partnership is located at 155 Wellington Street West, 14th Floor, Toronto, Ontario, Canada M5V 3K7, by its managing general partner RBC COVERED BOND GP INC. (hereinafter the “Guarantor LP”);

 

	
(2)

	
ROYAL BANK OF CANADA, a bank named in Schedule I to the Bank Act (Canada), whose executive office is at Royal Bank Plaza, South Tower, 8th Floor, 200 Bay Street, Toronto, Ontario, Canada M5J 2J5, acting in its capacity as Issuer (hereinafter the “Issuer”); and

 

	
(3)

	
COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company formed under the laws of Canada, whose registered office is at 100 University Avenue, 9th Floor, North Tower, Toronto, Ontario, Canada, M5J 2Y1, acting in its capacity as Custodian (hereinafter the “Custodian”) and as Bond Trustee (hereinafter, in such capacity, the “Bond Trustee”).

 

WHEREAS:

 

	
(A)

	
Under the terms of the Programme, the Issuer will issue Covered Bonds on each Issue Date.

 

	
(B)

	
In connection with the Programme, the Issuer is required to engage a qualified custodian in accordance with the Guide.

 

	
(C)

	
The Custodian is qualified to act as custodian in accordance with the Guide; and

 

	
(D)

	
The Custodian, the Guarantor LP, and the Issuer have agreed to enter into this Agreement to, among other things, provide for the appointment and duties of the Custodian.

 

NOW THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants and agreements herein set forth, the parties agree as follows:

 

SECTION 1

DEFINITIONS AND INTERPRETATION

 

	
1.1

	
Master Definitions and Construction Agreement

 

The amended and restated master definitions and construction agreement dated June 24, 2013 made between, inter alia, the parties to this Agreement (as the same may be amended, varied or supplemented from time to time with the consent of the parties thereto) (the “Master Definitions and Construction Agreement”) is expressly and specifically incorporated into this Agreement and, accordingly, the expressions defined in the Master Definitions and Construction Agreement shall, except where the context otherwise requires and save where otherwise defined herein, have the same meanings in this Agreement, including the recitals hereto and this Agreement shall be construed in accordance with the interpretation provisions set out in Section 2 of the Master Definitions and Construction Agreement.

 

  

1

  

 

SECTION 2

APPOINTMENT OF CUSTODIAN

 

	
2.1

	
Appointment of Custodian.

 

The Guarantor LP hereby appoints the Custodian as custodian of the Custodial Documents and the Custodian accepts such appointment. The Custodian shall exercise the same degree of care in the safekeeping of the Custodial Documents as it uses in respect of its own property of a similar nature in its custody. The Custodian shall have no liability or responsibility for any property of the Guarantor LP until it in fact is received by the Custodian.

 

	
2.2

	
Representations, Warranties and Covenants of the Custodian

 

The Custodian represents and warrants (and continues to represent and warrant for as long as it continues to be Custodian) and Covenants as follows, and acknowledges that the Issuer, the Guarantor LP and the Bond Trustee are relying on such representations, warranties and covenants in entering into, and performing their obligations under, this Agreement:

 

	
  

	
(a)

	
it possesses the necessary experience, qualifications, facilities and other resources to perform its responsibilities under this Agreement;

 

	
  

	
(b)

	
it is a federally chartered institution authorized to act in a fiduciary capacity with respect to valuable documents;

 

	
  

	
(c)

	
it is equipped with secure, fireproof storage facilities, with adequate controls on access to assure the safety, confidentiality and security of the Custodial Documents, in accordance with customary standards for such storage facilities;

 

	
  

	
(d)

	
it uses employees who are knowledgeable in the handling of mortgage and security documents and in the duties of a mortgage and security document custodian;

 

	
  

	
(e)

	
it has computer systems that can accept electronic versions of asset details, and be able to transmit that data to CMHC, the Asset Monitor, the Guarantor LP, the Issuer, the Servicer, or their respective authorized representatives, in a form that is generally readable by computer systems which would reasonably be expected to be maintained by such person;

 

	
  

	
(f)

	
it is at arm’s length from (and otherwise independent and not an Affiliate of) the Issuer;

 

	
  

	
(g)

	
if regulated, it is in regulatory good standing;

 

	
  

	
(h)

	
it is in material compliance with its internal policies and procedures (including risk management policies), if any, relevant to the execution, delivery and performance of this Agreement;

 

	
  

	
(i)

	
it is in material compliance with all applicable laws, regulations and rules relevant to the execution, delivery and performance of this Agreement;

 

	
  

	
(j)

	
it will satisfy such other reasonable requirements as CMHC may expressly claim necessary on the part of the Custodian for purposes of verifying the Issuer, the Guarantor LP’s and/or the Programme’s Compliance with any requirement of the Guide or Part I.1 of the National Housing Act (Canada); and

 

  

2

  

 

	
  

	
(k)

	
it shall comply with, and perform its obligations under, the provisions of the Guide, and of the Transaction Documents (including following the executing of this Agreement, this Agreement) to which it is a party, in each case applicable to it.

 

SECTION 3

CONCERNING THE CUSTODIAN

 

	
3.1

	
General Powers and Duties.

 

The Custodian is authorized to and agrees to receive and hold the Custodial Documents. It is the Issuer’s or the Guarantor LP’s responsibility to deliver or cause to be delivered to the Custodian, promptly, and in any event no later than 15 Business Days, in a timely manner all documents, data and any replacement thereof or updates thereto to be delivered to the Custodian, in accordance with terms of the Transaction Documents and the requirements set out in the Guide. The Custodian shall segregate and maintain continuous custody and control of all documents and data deposited with it and shall hold any such physical documents in secure and fireproof facilities, in accordance with customary standards for such storage.

 

The Custodian shall remain responsible for the Custodial Documents until the earlier of:

 

	
  

	
(a)

	
the termination of this Agreement in accordance with Section 6 and the delivery of the Custodial Documents to a replacement Custodian in accordance with the terms of this Agreement (it being acknowledged that the replacement Custodian shall be responsible for the safe transfer of the Custodial Documents to its premises and systems);

 

	
  

	
(b)

	
notice from the Guarantor LP, the Issuer and the Bond Trustee that the Programme has been terminated, whereupon the Custodian shall (i) release the Custodial Documents to the Issuer (or, in the case of Custodial Documents related to Eligible Loans or Substitute Assets, to their owner) or as it may direct in writing, or (ii) destroy the Custodial Documents in accordance with procedures satisfactory to the Issuer (or, in the case of data and documents related to Eligible Loans or Substitute Assets, to their owner) all in accordance with its written directions; or

 

	
  

	
(c)

	
in relation to a particular Eligible Loan or Substitute Asset, its disposition by the Guarantor LP or its maturity (whereupon the Custodian shall either (i) release the particular Custodial Documents related to such Eligible Loan or Substitute Asset to its owner (or as it may direct in writing) or (ii) destroy such Custodial Documents in accordance with procedures satisfactory to its owner, all in accordance with its written directions).

 

	
3.2

	
Acknowledgment of Receipt of Custodial Documents.

 

The Custodian shall acknowledge receipt of any Custodial Documents promptly following receipt thereof by delivering a notice to the Issuer, the Guarantor LP and the Bond Trustee in the form attached as Schedule A setting out the Custodial Documents received.

 

  

3

  

 

	
3.3

	
Confidentiality.

 

The Custodian agrees to keep confidential all information of any kind whatsoever provided to it in its capacity as Custodian hereunder save for:

 

	
  

	
(a)

	
information which it is expressly authorized to provide to the Guarantor LP, the Rating Agencies, the Issuer, the Bond Trustee, the Servicer, CMHC or any other party under the terms of this Agreement, the other Transaction Documents or pursuant to the Guide;

 

	
  

	
(b)

	
information which is public knowledge otherwise than as a result of the wrongful conduct of the Custodian;

 

	
  

	
(c)

	
information that the Custodian is required to disclose pursuant to the laws of the Province of Ontario or the federal laws of Canada applicable therein or the order of any court of the Province of Ontario or any court competent to the appeals therefrom or pursuant to any direction, request or requirement (whether or not having the force of law) of any governmental or other regulatory or taxation authority in Canada or the United Kingdom (including, without limitation, any official bank examiners or regulators), or any stock exchange on which securities issued by the Issuer are listed;

 

	
  

	
(d)

	
information which the Custodian wishes to disclose to its professional indemnity insurers or advisers where such insurers or advisers receive the same under a duty of confidentiality;

 

	
  

	
(e)

	
information which the Custodian is required to disclose to the relevant authorities on a public interest disclosure basis or in order to comply with its statutory obligations relating to money laundering and the proceeds of crime;

 

	
  

	
(f)

	
information disclosed to professional advisers of the Custodian who receive the same under a duty of confidentiality in substantially the same terms as this Section 3.3; and

 

	
  

	
(g)

	
information disclosed with the prior written consent of the Guarantor LP and the Issuer.

 

The parties agree that the Custodian shall not be required to disclose to any other party any information which is confidential to any other client of the Custodian and any information received by the Custodian other than by reason of, or in their capacity as, Custodian pursuant to the terms of this Agreement. In all cases and without limiting the foregoing, each party shall comply at all times with Applicable Privacy Laws in the performance of its obligations under this Agreement.

 

SECTION 4

CONCERNING THE CUSTODIAL DOCUMENTS

 

	
4.1

	
Access to and release of Custodial Documents

 

Without limiting Section 4.2, the Custodian shall provide access to, copies of or release the Custodial Documents to the Guarantor LP, or to such other person as the Guarantor LP may direct in writing from time to time, which entity shall specify the reason therefor, and the Custodian shall be entitled to rely on such directions as good and valid authority therefor.

 

  

4

  

 

	
4.2

	
Access to Asset Monitor and CMHC in respect of Custodial Documents

 

Upon the prior written request of the Asset Monitor to the Custodian the Custodian shall make available to the Asset Monitor during business hours all Custodial Documents for the purposes of enabling the Asset Monitor to perform its responsibilities in relation to the Programme.

 

Upon the reasonable request of CMHC to the Custodian, the Custodian shall make available to CMHC during business hours all Custodial Documents, if required by CMHC to verify that the Issuer, Guarantor LP and/or the Programme are in compliance with any requirement of the Guide and Part I.1 of the National Housing Act (Canada).

 

Upon receipt of any such request, the Custodian shall promptly notify the Issuer and the Guarantor LP in writing of the receipt thereof and unless otherwise prohibited shall provide details as to the nature of any such request.

 

SECTION 5

COMPENSATION AND EXPENSES

 

	
5.1

	
Fees and Expenses.

 

The Issuer, and following a Covered Bond Activation Event, the Guarantor LP, shall pay to the Custodian for services under this Agreement the fees as agreed from time to time in writing by the Custodian and the Issuer, and following a Covered Bond Activation Event, the Guarantor LP.

 

	
5.2

	
Financial Liability of Custodian

 

None of the provisions contained in this Agreement or any supplement shall require the Custodian to expend or risk its own funds or otherwise incur financial liability in the performance of its obligations under this Agreement.

 

SECTION 6

TERMINATION AND REPLACEMENT

 

	
6.1

	
Termination.

 

This contract may be terminated:

 

	
  

	
(a)

	
by the Custodian, at any time, by resigning from its appointment under this Agreement and providing the Guarantor LP, the Issuer and the Bond Trustee with 60 days’ prior written notice, provided that the Custodian shall use its reasonable efforts to assist with the appointment of a replacement custodian that is qualified to act as Custodian in accordance with the terms of the Guide and agrees to perform the duties (or substantially similar duties) of the Custodian set out in this Agreement.

 

	
  

	
(b)

	
by the Guarantor LP, (i) at any time but subject to the prior written consent of the Bond Trustee or (ii) unilaterally upon a default by the Custodian in the performance or observance of any of its covenants and obligations under this Agreement (including the representations, warranties and covenants contained in Section 2.2) if such breach continues unremedied for a period of thirty (30) days after receipt by the Custodian of written notice from the Guarantor LP requiring the same to be remedied. Upon such termination, the Guarantor LP, and prior to the occurrence of a Covered Bond Guarantor Acceleration Event, the Issuer, shall use reasonable efforts to locate a replacement Custodian that is qualified to act as Custodian in accordance with the terms of the Guide and is approved by the Bond Trustee (such replacement to be approved by the Bond Trustee if the replacement is qualified to act as Custodian in accordance with the terms of the Guide and agrees in writing to perform the duties (or substantially similar duties) of the Custodian set out in this Agreement).

 

  

5

  

 

	
6.2

	
Delivery of Assets.

 

The Custodian agrees to deliver the Custodial Documents as soon as practicable after termination of the Agreement to or as instructed by or on behalf of the Guarantor LP.

 

SECTION 7

NOTICE

 

	
7.1

	
Notices.

 

Any notice, direction or other communication given under this Agreement shall be in writing and given by delivering it or sending it by prepaid first class mail to the registered office of such person set forth above unless an alternative address is provided below, in which case delivery shall be to the address provided below, or by facsimile transmission to facsimile number set forth below, as applicable:

 

	
  

	
(a)

	
in the case of the Guarantor LP, to:

RBC Covered Bond Guarantor Limited Partnership

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada  M5V 3K7

Attention: Senior Manager, Securitization

Facsimile number: 416-974-1368

	
  

	
(b)

	
in the case of the Issuer, to:

Royal Bank of Canada

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada  M5V 3K7

Attention: Senior Manager, Securitization

Facsimile number: 416-974-1368

 

	
  

	
(c)

	
in the case of the Custodian or the Bond Trustee, to:

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario,

Canada M5J 2Y1

 

  

6

  

 

Attention: Manager, Corporate Trust

Facsimile number: (416) 981-9777

Any such communication will be deemed to have been validly and effectively given (i) if personally delivered, on the date of such delivery if such date is a Business Day and such delivery was made prior to 4:00 p.m. (Toronto time) and otherwise on the next Business Day, (ii) in the case of first class post, when it would be received in the ordinary course of the post, or (ii) if transmitted by facsimile transmission on the Business Day following the date of transmission provided the transmitter receives a confirmation of successful transmission.

 

Any party may change its address for notice, or facsimile contact information for service from time to time by notice given in accordance with the foregoing and any subsequent notice shall be sent to such party at its changed address, or facsimile contact information, as applicable.

 

Notwithstanding anything else in this Section 7.1 and provided that each give their prior consent to such delivery, the Custodian may send notice to or otherwise communicate with any of the Guarantor LP, the Issuer, or the Bond Trustee by electronic mail.  Each of the Guarantor LP, the Issuer, and the Bond Trustee shall be deemed: (i) to have received any electronic mail sent by the Custodian pursuant to the terms of this Section 7.1 subject to the risks (including the security risks of interception, unauthorized access, corruption or viruses) of communications via electronic mail and (ii) to have performed reasonable virus checks required in connection with the receipt of electronic mail.

 

SECTION 8

MISCELLANEOUS

 

	
8.1

	
Representation.

 

Each party represents that it has the power and authority to enter into and perform its obligations under this Agreement, that the person or persons signing this Agreement on behalf of the named party are properly authorized and empowered to sign it and that the Agreement is valid and binding on the party and enforceable against the party in accordance with its terms.

 

	
8.2

	
Subordination of Rights

 

The Custodian hereby agrees that it shall not take any steps for the purpose of recovering any amounts payable to it under or pursuant to this Agreement (including, without limitation, by exercising any rights of set-off) or procuring the winding up, administration or liquidation of the Guarantor LP in respect of any of its liabilities whatsoever unless a Guarantor LP Acceleration Notice shall have been served.

 

The Custodian agrees to be bound by the terms of the Priorities of Payment set out in Article 6 (Priorities of Payments) of the Guarantor LP Agreement and in the Security Agreement. Without prejudice to the above, the Custodian further agrees that, notwithstanding any other provision contained herein, it will not demand or receive payment of, or any distribution in respect of or on account of, any amounts payable by the Guarantor LP or the Issuer as applicable, to the Custodian under the Custodial Agreement, in cash or in kind, and will not apply any money or assets in discharge of any such amounts payable to it (whether by set off or by any other method), unless all amounts then due and payable by the Guarantor LP to all other creditors ranking higher in the relevant Priorities of Payments have been paid in full.

 

  

7

  

 

Without prejudice to the above, whether in the liquidation of the Guarantor LP or any other party to the Transaction Documents or otherwise, if any payment or distribution (or the proceeds of any enforcement of any security) is received by the Custodian in respect of any amount payable by the Guarantor LP or the Issuer, as applicable, to the Custodian under this Agreement at a time when, by virtue of the provisions of this Agreement, the Guarantor LP Agreement and the Security Agreement, no payment or distribution should have been made, the amount so received shall be held by the Custodian upon trust for the entity from which such payment was received and shall be paid over to such entity forthwith upon receipt (whereupon the relevant payment or distribution shall be deemed not to have been made or received).

 

Without prejudice to the above, the Custodian shall not claim, rank, prove or vote as a creditor of the Guarantor LP or its estate in competition with any prior ranking creditors in the relevant Priorities of Payments, or claim a right of set-off until all amounts then due and payable to creditors who rank higher in the relevant Priorities of Payments have been paid in full.

 

Neither the Guarantor LP nor the Issuer, as applicable, shall pay or repay, or make any distribution in respect of, any amount owing to the Custodian under this Agreement (in cash or in kind) unless and until all amounts then due and payable by the Guarantor LP or the Issuer, as applicable, to all other creditors ranking higher in the relevant Priorities of Payments have been paid in full.

 

The perpetuity period for the trusts in this Section 8.2 shall be 80 years.

 

	
8.3

	
The Bond Trustee

 

If there is any change in the identity of the Bond Trustee, the parties to this Agreement shall execute such documents and take such action as the successor Bond Trustee and the outgoing Bond Trustee may reasonably require for the purpose of vesting in the successor Bond Trustee the rights and obligations of the outgoing Bond Trustee under this Agreement.  The Guarantor LP shall indemnify the Custodian for all reasonable costs incurred by the Custodian in relation to such change.

 

The Bond Trustee has agreed to become a party to this Agreement for the better preservation and enforcement of its rights under this Agreement but shall have no responsibility for any of the obligations of, nor assume any liabilities to, the Custodian, the Issuer or the Guarantor LP hereunder.  For the avoidance of doubt, the parties to this Agreement acknowledge that the rights and obligations of the Bond Trustee are governed by the Trust Deed and the Security Agreement.  Any liberty or right which may be exercised or any determination which may be made under this Agreement by the Bond Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefor and the Bond Trustee shall not be responsible for any liability occasioned by so acting, if acting in accordance with the terms of the Trust Deed and the Security Agreement, but without prejudice to the obligation of the Bond Trustee to act reasonably.

 

	
8.4

	
Indemnity

 

The Guarantor LP and the Issuer shall jointly and severally indemnify and save harmless the Custodian, its directors, officers, employees and agents from and against all liabilities, claims and demands whatsoever arising from the Custodian acting pursuant to this Agreement, unless arising from a bad faith, gross negligence or wilful misconduct of the Custodian. Notwithstanding any resignation or removal of the Custodian, such indemnity shall continue in respect of all actions taken by the Custodian pursuant to this Agreement prior to any such resignation or removal.

 

	
8.5

	
Entire Agreement.

 

This Agreement contains the entire agreement between the parties hereto in relation to the services to be performed hereunder and supersedes any prior agreements, understandings, arrangements, statements or representations relating to such services.  Nothing in this Section or Agreement shall operate to limit or exclude any liability for fraud.

 

  

8

  

 

	
8.6

	
Further Provisions

 

The respective rights of the parties under this Agreement are cumulative, and may be exercised as often as they consider appropriate and are in addition to their respective rights under the general law.  The respective rights of each of the parties hereto in relation to this Agreement (whether arising under this Agreement or under the general law) shall not be capable of being waived or varied otherwise than by an express waiver or variation in writing.  In particular, any failure to exercise or any delay in exercising of any such rights shall not operate as a waiver or variation of that or any other such right; any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any other such right.  No act or course of conduct or negotiation on their part or on their behalf shall in any way preclude them from exercising any such right or constitute a suspension or any variation of any such right.

 

If any of the provisions of this Agreement become invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, each party hereto hereby waives any provision of law (where permitted by law) which renders any provision of this Agreement prohibited or unenforceable in any respect.

 

	
8.7

	
Non-Petition

 

The Custodian agrees that it shall not institute or join any other Person or entity in instituting against, or with respect to, the Guarantor LP, or any of the general partners of the Guarantor LP, any bankruptcy or insolvency event so long as any Covered Bonds issued by the Issuer under the Programme shall be outstanding or there shall not have elapsed one year plus one day since the last day on which any such Covered Bonds shall have been outstanding.  The foregoing provision shall survive the termination of this Agreement by any of the parties hereto.

 

	
8.8

	
Modification

 

No amendment, modification or variation of this Agreement shall be effective unless it is in writing and signed by (or by some person duly authorized by) each of the parties hereto.

 

	
8.9

	
Counterparts

 

This Agreement may be executed in any number of counterparts (manually or by facsimile), and by the parties on separate counterparts, but shall not be effective until each party has executed at least one counterpart.  Each counterpart shall constitute an original of this Agreement, but all the counterparts shall together constitute but one and the same instrument.

 

  

9

  

 

	
8.10

	
No Assignment

 

No party to this Agreement may assign, novate, transfer or sub-contract any of its rights or obligations under this Agreement other than with the prior consent of the other parties to this Agreement, which consent may not be unreasonably withheld or delayed.

 

	
8.11

	
Governing Law

 

This Agreement shall be governed by, and construed in accordance with, the laws of Ontario and the laws of Canada applicable therein.

 

	
8.12

	
Submission to Jurisdiction

 

Each party to this Agreement hereby irrevocably submits to the exclusive jurisdiction of the Ontario courts in any action or proceeding arising out of or relating to this Agreement, and hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined by such courts.  Each party to this Agreement hereby irrevocably waives, to the fullest extent it may possibly do so, any defence or claim that the Ontario courts are an inconvenient forum for the maintenance or hearing of such action or proceeding.

 

[the remainder of this page is intentionally left blank]

 

 

 

 

  

10

  

 

IN WITNESS WHEREOF the parties hereto have executed this Agreement on the day and year first before written.

 

	  	  	
RBC COVERED BOND GUARANTOR LIMITED PARTNERSHIP, by its general partner RBC COVERED BOND GP INC.

	  
	
Per:  

	
/s/ David Power

	  	
Name: David Power

	  	
Title:  President

	  	  	  	  
	  	  	  	  
	  	  	
ROYAL BANK OF CANADA

	  	  
	  	  	
Per:

	
/s/ James Salem

	  	  	  	
Name:  James Salem

	  	  	  	
Title:  Executive Vice-President and Treasurer

	  	  	  	  	  
	  	  	  	
Per:

	
/s/ David Power

	  	  	  	  	
Name: David Power

	  	  	  	  	
Title: Vice-President, Corporate Treasury

	  	  	  	  	  
	  	  	  	  	  
	  	  	
COMPUTERSHARE TRUST COMPANY OF CANADA

	  
	
Per:

	
/s/ Mircho Mirchev

	  	
Name: Mircho Mirchev

	  	
Title:  Corporate Trust Officer

	
Per:

	
/s/ Stanley Kwan

	  	
Name: Stanley Kwan

	  	
Title:  Associate Trust Officer

  

11

  

 

SCHEDULE A

 

FORM OF NOTICE

 

To:          RBC Covered Bond Guarantor Limited Partnership

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada  M5V 3K7

Royal Bank of Canada

155 Wellington Street West, 14th Floor

Toronto, Ontario

Canada  M5V 3K7

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario,

Canada M5J 2Y1

	
RE: Receipt of Custodial Documents in connection with Royal Bank of Canada’s Global Covered Bond Programme

 

 

	
  

	
1

	
Pursuant to the Section 3.2 of the Custodial Agreement, the Custodian hereby provides you with notice that it is in receipt of the following Custodial Documents:

 

	
  

	
(a)

	
[insert name/description of Custodial Document]

 

 

	
  

	
2

	
The expressions defined in the amended and restated master definitions and construction agreement dated June 24, 2013 made between, inter alia, the parties to the Custodial Agreement (as the same may be amended, varied or supplemented from time to time with the consent of the parties thereto) (the “Master Definitions and Construction Agreement”) shall, except where the context otherwise requires and save where otherwise defined herein, have the same meanings in this notice and this notice shall be construed in accordance with the interpretation provisions set out in Section 2 of the Master Definitions and Construction Agreement.

 

	  	  	
COMPUTERSHARE TRUST COMPANY OF CANADA

	  
	
Per:  

	  
	  	
Name:

	  	
Title:

	
Per:

	  
	  	
Name:

	  	
Title:

 

 

 

 

 

12

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