Prospectus excerpt: The holders of Non-cumulative 5-Year Rate Reset First Preferred Shares Series 26 (the “First Preferred Shares Series 26”) of National Bank of Canada (the “Bank”) will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the board of directors of the Bank (the “Board of Directors”), for the initial period commencing on the closing date and ending on and including February 15, 2014 (the “Initial Fixed Rate Period”), payable quarterly on the fifteenth day of February, May, August and November in each year, at an annual rate equal to $1.65 per share. The initial dividend, if declared, will be payable on May 15, 2009 and will be $0.47918 per share, based on the anticipated closing date of January 30, 2009. Reference is made to “Details of the Offering”.
For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”), the holders of First Preferred Shares Series 26 will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the fifteenth day of February, May, August and November in each year, in the amount per share per annum determined by multiplying the Annual Fixed Dividend Rate (as defined herein) applicable to such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for any Subsequent Fixed Rate Period will be determined by the Bank on the 30th day prior to the first day of such Subsequent Fixed Rate Period and will be equal to the sum of the Government of Canada Yield (as defined herein) on the date on which the Annual Fixed Dividend Rate is determined plus 4.79%. Reference is made to “Details of the Offering”.