If your company has a floating rate loan, you can buy an Interest Rate Cap that protects you against rising interest rates and lets you benefit from falling interest rates. With this agreement, TD Bank will pay you a rebate if a reference interest rate (usually a Bankers' Acceptance rate or USD LIBOR rate) rises above a prearranged "strike rate".You pay TD Bank an upfront fee for this protection.

Benefits to your company:

1. Provide insurance against a rise in rates, while benefiting from lower rates.
2. Flexible risk management and customization.
3. The Interest Rate Cap can be sold at prevailing market prices if the underlying loan is repaid and protection no longer needed.

For more information contact a Relationship Manager
at the Commercial Banking Centre nearest you!