Generally speaking, SMART notes are privately issued, secured corporate debt obligations that are secured  by assets such as automobiles, powersports, real estate fixtures, enhanced with personal guarantees of the principals  and further supported by General Security Agreements (GSA’s) over the assets of the corporate obligor.

SMART Notes are  offered to Accredited Investors and, depending on the nature of the SMART Note collateral, to Eligible Investors as those terms are defined in Section 73.3 of the Securities Act (Ontario) and in National Instrument 45-106 – Prospectus and Registration Exemptions (“NI 45-106”). 

SMART Notes are issued by a Canadian public company (as that term is defined in the Income Tax Act) who’s securities are eligible for RRSP, TFSA etc. Details of specific issuers are found in the Term Sheets issued for each SMART Note Series.

Those interested in subscribing for SMART Notes complete a subscription agreement and investor declaration setting out certain personal details and investment objectives. These forms are reviewed by a registered representative of XXX to determine investor suitability. Neither SMART Note Inc. nor the Issuer can provide this information to prospective investors. The role of the Issuer and SNI is to discuss the business and it’s operations.

Most SMART Notes are TFSA, RRSP, RDSP, RESP, or RRIF eligible by virtue of the Issuer’s qualification and election public status under the Income Tax Act (Canada). 

SMART Notes are sold pursuant to private placement exemtpions from prospectus and, as such, may not be sold except under these exemptions. The is no after market for SMART Notes and none is expected to develop.