The Templates
$250.00
The templates will give your organization an idea of the legal framework required to issue Community Bonds. While you will still need to hire professionals to draft the documents based on your organization’s circumstances and bond offering, having the templates to use as a basis could save your team tons of time and money!
Description
Investor Information Package: A well-written and thorough information package will be your primary tool for communicating with potential Community Bond investors. This document must contain everything a potential investor needs to know, which could include:
- information about your organization’s mission, values, history, operations and financials
- the nature of the investment opportunity and an assessment of the likelihood and scope of associated risks
- specifics about the Bond terms and conditions
- a full financial analysis that supports the viability of the project: the most recent financial statements, the revenue projections for the project associated with the bond and the operating budget for the organization itself
Term Sheet: This document contains all of the Terms and Conditions you have outlined in your planning process. Its purpose is to state all the key details of the investment in an easy to read two-pager – without the narrative behind the organization and the proposed investment.
Subscription Agreement: This form details an investor’s intent to purchase a bond in accordance with the conditions outlined in the associated term sheet. It is signed by the bond purchaser (lender) and sent to the bond issuer (borrower) along with the investment funds. Upon receipt of both, the bond issuer then prepares and sends the bond agreement itself, either directly to the investor, as in the case of a non-RRSP investment, or the financial institution that signed the subscription form on an investor’s behalf, as in the case of a self-directed RSP.
The Bond Document: The bond document is a binding agreement and contains all the critical details of the bond. It will be drawn up by a lawyer familiar with securities law and how it pertains to nonprofit organizations, and will contain a number of standard elements.
Trust Agreement: In order to secure a Community Bond, you must have a trustee hold security on behalf of the individual bond holders, and act on the instruction of the Bondholders if default occurs and security needs to be realized. This requires that you have a Trust Agreement drawn up, which defines the role of the trustee who, in turn, confirms each of the Bonds is secured by the security the trustee holds in the Bond and related security.
