Privacy Policy

CAPITALServ Corporation Privacy Philosophy

CAPITALServ Corporation and our affiliates, partners and nominees, and independent

third parties (including independent third-party lenders and independent third-party

service providers who may provide financial, credit, data, information or other services),

are committed to fairly and lawfully collecting and maintaining accurate personal

information and protecting the confidentiality of all personal information that we collect,

retain, use or disclose to others in the course of our business activities.

OUR CONTINUING COMMITMENT TO YOU

Protecting the privacy and confidentiality of personal information has always been

fundamental to the way we do business at CAPITALServ Corporation. We strive to meet

or exceed all the privacy standards established by federal, provincial and industry

authorities in all our dealings with past, current, and prospective customers.

WE LIVE BY IT EVERYDAY

As a condition of their continuing employment, every CAPITALServ Corporation

employee annually signs a declaration acknowledging their agreement to be bound by

the CAPITALServ Corporation Policy of Business Conduct, which includes both

references to CAPITALServ Corporation policies, such as this Privacy Policy, and a

confidentiality section obligating them to maintain the confidentiality of information both

during and after their employment with CAPITALServ Corporation.

CAPITALServ Corporation has appointed a Privacy Officer and has established a

Complaints Procedure to ensure compliance with this Privacy Policy.

WHAT IS PERSONAL INFORMATION?

Personal information is information that identifies you as an individual. It includes your

name and address, age, and gender, also your personal financial records, identification

numbers including your social insurance number, personal references, and employment

records.

WHAT IS IN THIS POLICY

This Privacy Policy has been developed to meet the standards set out in Canada’s

Personal Information Protection and Electronic Documents Act (PIPEDA) and similar

provincial legislation. The Privacy Policy describes the principles CAPITALServ

Corporation will use to protect the privacy of personal information we possess about our

clients, including sole proprietors and individuals carrying on business in a partnership,

and establishes ethical and fair information management practices with respect to

personal information collected, used or disclosed by CAPITALServ Corporation. The

Policy informs customers, be they borrowers, or our investors, and our business

associates, how personal information is handled within CAPITALServ Corporation.

APPLICATION OF THIS POLICY

This Privacy Policy applies to all CAPITALServ Corporation directors, officers, and

employees with respect to any personal information in the possession or control of

CAPITALServ Corporation.

This Privacy Policy does not apply to information about business customers carrying on

business as corporations, partnerships or in other forms of association. The

confidentiality of information with respect to those entities is protected at CAPITALServ

Corporation by our adherence to the applicable laws, our contracts with our business

customers, and CAPITALServ Corporation’s other internal policies.

This Policy does, however, apply to information about officers, staff, or principals of

corporate clients, such as those providing personal guarantees of corporate loans.

CAPITALSERV CORPORATION’S RELATIONSHIPS WITH OTHER INVESTORS /

LENDERS

CAPITALServ Corporation and our affiliates, partners and nominees are in the business

of providing various financial services to its customers. This includes originating,

underwriting and funding loans to borrowers, with monies that may have been provided

to CAPITALServ Corporation from institutional lenders / investors, who contract for

CAPITALServ Corporation to provide those services and to administer, manage, and

collect payments on those loans on their behalf and to report to them on the status of

those financial assets.

Given our requirement to report to these beneficial owners of the loans, CAPITALServ

Corporation must be able to receive and disclose to them various personal information

relating to these financial services.

We may also obtain or share information about you with our third parties service

providers, who help us provide and support our financial services (such as credit

bureaus and identity verification services). Just like with the other third parties we work

with, these third party service providers enter into a contract that requires them to use

your Personal Information only for the provision of services to us and in a manner that is

consistent with this policy.

Further, when you choose to provide us with access to certain personal information

stored by third parties (such as banking aggregation agencies), the information we may

receive varies by site/third party and is controlled by that third party. By consenting to

disclosure of information managed by a third party with us and authorizing us to have

access to this information, you agree that we may use this information for facilitation of

CAPITALServ Corporation services to yourself. All information received from a third-

party shall be collected, stored and used in accordance with this Policy.

You may choose not to have us conduct required checks or receive required information

from third parties, however, this may limit our ability to determine your eligibility for a

financial service and may hinder our ability to provide services to you (or necessitate

additional steps).

This is why our documentation, such as our applications and commitment letters,

contain your acknowledgement and consent to so disclose. We do so based on that

consent and in accordance with this Policy.

THE REASONABLE PERSON APPROACH

PIPEDA is really about sound information management practices. It requires an ethical,

common sense, reasonable person approach to requesting, validating, and maintaining

personal information as a part of our business activities. Confidentiality is a sensitive

topic. Many Canadians have raised concerns about the privacy of their personal

information. Within CAPITALServ Corporation we strive to understand what customers,

clients and investors deem to be reasonable and then apply the principles in this Policy.

CAPITALSERV CORPORATION’S PRIVACY PRINCIPLES

CAPITALServ Corporation endorses and has adopted the ten privacy principals set out

in full in Schedule 1 of PIPEDA. These ten privacy principles summarized below,

embody sound and prudent information management practices. These practices will

provide the necessary assurances that personal information obtained and utilized by

CAPITALServ Corporation in the course of its business activities will be accurate, held

in confidence and be retained in a secure environment.

Principle 1: Accountability

CAPITALServ Corporation takes responsibility for protecting and maintaining personal

information under its control and has appointed a Privacy Officer to ensure compliance

with these principles and PIPEDA.

Principle 2: Identifying the Purposes for Collecting Personal Information

CAPITALServ Corporation will identify and disclose the reasons for which personal

information is collected and used by CAPITALServ Corporation at or before the time the

information is collected.

Principle 3: Consent

CAPITALServ Corporation will obtain an individual’s informed consent for the collection,

use or disclosure of personal information by CAPITALServ Corporation, except as

otherwise required or permitted by law.

Principle 4: Limits to the Collection of Personal Information

CAPITALServ Corporation will limit the amount and type of personal information

collected to that, which is necessary for its intended purposes. Personal information will

be collected by fair and lawful means.

Principle 5: Limits to the Use, Disclosure and Retention of Personal Information

CAPITALServ Corporation will not use or disclose personal information for purposes

other than those for which it was collected, except with the consent of the individual, or

as required or permitted by law. Personal information will be retained only as long as it

is necessary to fulfill those purposes.

Principle 6: Accuracy

To minimize the possibility of inappropriate information being considered in its decision-

making processes, CAPITALServ Corporation will keep personal information as

accurate, complete, and up-to-date as necessary for its intended purposes.

Principle 7: Safety & Security

CAPITALServ Corporation will maintain appropriate safeguards to protect personal

information from loss or theft, unauthorized access, disclosure, copying, use or

modification regardless of the format in which it is retained.

Principle 8: Openness

CAPITALServ Corporation will inform its customers, clients and employees about its

policies and procedures regarding the management of personal information.

CAPITALServ Corporation will ensure that these policies and procedures are easily

understood and readily available.

Principle 9: Individual Access

Upon request, CAPITALServ Corporation will inform an individual of the existence, use

and disclosure of his or her personal information and will provide the individual access

to that information to verify and or update its accuracy and completeness.

Principle 10: Handling Inquiries

An individual will be able to direct an issue or concern regarding compliance with the

above principles, or CAPITALServ Corporation’s practices to CAPITALServ

Corporation’s Privacy Officer or to other accountable employees.

WHAT INFORMATION DOES CAPITALSERV CORPORATION COLLECT?

CAPITALServ Corporation and our affiliates, partners and nominees collects only the

information that is needed for or related to the business purpose or product being

requested. This personal information is obtained primarily from you. CAPITALServ

Corporation may also obtain additional information from other sources with your

consent.

CAPITALServ Corporation and our affiliates, partners and nominees may also obtain

additional information from other sources with your consent.

WHY AND WHAT TYPE OF INFORMATION IS COLLECTED

CAPITALServ Corporation wants to work with you to help you achieve your goals, to

provide you with value-added service on an ongoing basis, and to establish a lasting

relationship with you as your needs grow and change. The better CAPITALServ

Corporation knows you, the better we are able to serve you. CAPITALServ Corporation

therefore asks you for your personal information for the following purposes:

 To identify you, thereby protecting us both from error and fraud;

 To understand your needs;

 To determine the suitability of financial  products and services;

 To determine your eligibility for financial services;

 To provide you with information and offers on financial products and services;

 To provide you with information and offers on financial products or services that

may be of interest to you (not applicable to residents of Manitoba), and

 To comply with applicable laws.

There are some purposes, which are self-evident. For example, if you are applying for a

loan, CAPITALServ Corporation asks for information concerning your credit history and

for personal references, which CAPITALServ Corporation may use to verify the

information you provided and to underwrite your loan application. CAPITALServ

Corporation may also obtain information about you from other sources in order to better

understand and meet your needs and goals.

In general, you can choose not to provide us with some or all of your personal

information. However, you must understand that if you make this choice, CAPITALServ

Corporation may not be able to provide you with the product, service, or information that

you requested or that was or could be offered to you.

CAPITALServ Corporation will make sure you are aware of the purposes for collecting

information when you apply for any of our products or services. Self-evident purposes

should be clear, but if you have any questions, just ask us. If a new purpose for using

your personal information develops, CAPITALServ Corporation will ask for your consent

again.

DISCLOSURE OF PERSONAL INFORMATION OUTSIDE OF CAPITALSERV

CORPORATION

CAPITALServ Corporation has a strict policy of not releasing personal information about

our customers, subject to important exceptions discussed below.

The most common reason for release of your personal information is that you have

given your consent. For example, when you apply for a loan, you give your consent to

the exchange of information about you with a credit bureau and/or other credit grantors.

Other reasons may include if we have a legal obligation, such as a court order, or if we

need to protect assets  or the public’s interest. For example, we may release personal

information about a customer to legal authorities in cases of criminal activity, or for the

detection and prevention of fraud. If we release information for any of these reasons, we

keep a record of what, when, why and to whom such information was released.

We do not keep a record of why your personal information is disclosed to third parties

for routine purposes such as reporting regular update reports to a credit bureau, and

investors / lenders, and reporting to third parties when cheques are returned NSF (i.e.,

for insufficient funds).

On occasion, CAPITALServ Corporation and our affiliates, partners and nominees may

offer and/or provide disclosure of personal information to manage and promote the

business activities of CAPITALServ Corporation (not applicable to residents of

Manitoba). Further, if the company or our affiliates, partners, nominees and third parties

refer you to an independent business for a proposed transaction (not applicable to

residents of Manitoba), then we may collect personal and other information from that

independent business regarding the transaction to update your profile for use by the

company and our affiliates, partners, nominees and third parties in the manner set out in

our Privacy Policy.

CAPITALServ Corporation and our affiliates, partners, nominees and third parties may

use this information for general and customized market analysis and research for you;

and for the marketing to you of information, memberships, products, programs, and

services  (not applicable to residents of Manitoba).

SHARING YOUR PERSONAL INFORMATION

Your personal information may be shared within our company, our affiliates, and any

third party service providers to help us with our business operations (not applicable to

residents of Manitoba). Specifically, to the extent permitted by law and to the extent

necessary, CAPITALServ Corporation may share your information within CAPITALServ

Corporation, our affiliates, and third-party service providers, in order to provide 

products and services (not applicable to residents of Manitoba). This sharing is limited

to a need to know basis. With our various departments having a more comprehensive

understanding of your requirements, we are better able to meet your needs as they

grow and change.

We may also disclose your personal information if it is necessary for us to collect a debt

from you, respond to an public or private assertion or allegation against us, our

affiliates, and third party service providers concerning your account or where we have

reason to believe that it is relevant to the investigation or decision to investigate a

breach of the laws of Canada, a province or territory of Canada, or a foreign jurisdiction,

and we are legally permitted to do so.

CAPITALServ Corporation routinely collects and collates anonymous, non-personal

information that is not traced back to a specific individual or business client. This

includes individual and cumulative transaction and settlement records with our various

investors. This type of information is considered necessary and consistent with the

CAPITALServ Corporation business activity.

Further, CAPITALServ Corporation and our affiliates, partners and nominees may work

with third parties, including merchants, to enable them to aid and facilitate services 

provided to you. In doing so, a third party may share information about you with us, to

inform and provide us with essential information (alone or in combination with other

information) used to process your services.

The information you provide to such third parties and their websites (i.e., not directly on

a CAPITALServ website) will be shared with the owner of the third-party website or

application. Those sites are governed by their own privacy policies, and you are

encouraged to review their privacy policies before providing them with your personal

information. CAPITALServ Corporation and our affiliates, partners and nominees are not

responsible for the content or information practices of such third parties.

EXCEPTIONS TO THE NO COLLECTION, USE OR DISCLOSURE WITHOUT

CONSENT RULES

The limited exceptions, applicable to CAPITALServ Corporation and our affiliates,

partners, and nominees, relating to obtaining consent for the collection, use or

disclosures of personal information include the following:

COLLECTION

CAPITALServ Corporation and our affiliates, partners and nominees are authorized by

PIPEDA to collect personal information without the knowledge or consent of the

individual where:

1. Collection of the personal information is clearly in the interests of the individual

and consent cannot be obtained in a timely manner;

2. It is reasonable to expect that collection of the personal information with the

knowledge or consent of the individual would compromise the availability or

accuracy of the information and the collection is reasonable for purposes of

investigating a breach of an agreement or contravention of federal or provincial

law; or

3. The information is publicly available and is specified by regulations issued by

federal legislation.

USE

CAPITALServ Corporation and our affiliates, partners and nominees are authorized by

PIPEDA to use personal information, without the knowledge or consent of the individual,

in circumstances including where:

1. The personal information was originally collected without consent, express or

implied, and collection was clearly in the interests of the individual and consent

could not be obtained in a timely manner;

2. The information was originally collected without consent, express or implied, in

circumstances where collection with the knowledge and consent of the individual

would compromise the availability or accuracy of the information and the

collection was reasonable for the purposes of investigating a breach of an

agreement or a contravention of federal or provincial law;

3. CAPITALServ Corporation and our affiliates, partners and nominees have

reasonable grounds to believe the information could be useful in the investigation

of a contravention of federal, provincial or foreign law, that has been, is being, or

is about to be committed, and the information is used for the purpose of

investigating that contravention;

4. It is used with respect to an emergency that threatens the life, health or security

of an individual;

5. It is used for statistical or scholarly study or research purposes, under limited

conditions approved by the Privacy Commissioner; and/or

6. The information is publicly available and is specified by the Regulations to

PIPEDA.

DISCLOSURE

PIPEDA authorizes CAPITALServ Corporation and our affiliates, partners, and

nominees to disclose personal information without the knowledge or consent of the

individual in circumstances including if such disclosure:

1. Is made, within the Province of Quebec, to an advocate or notary or, in any other

province, a barrister or solicitor who is representing CAPITALServ Corporation;

2. Is for the purpose of collecting a debt owed by the individual to CAPITALServ

Corporation or it’s affiliates;

3. Is required to comply with a subpoena or warrant issued, or an order made by a

court, person or body with jurisdiction to compel the production of information, or

to comply with rules of court relating to the production of records;

4. Is made to a government institute that has identified its lawful authority to obtain

the information, and which has indicated (i) it suspects the information relates to

national security, the defense of Canada, or the conduct of international affairs, or

(ii) disclosure is requested for the enforcement of federal, provincial or foreign

law, carrying out an investigation relating to such enforcement, or gathering

intelligence for the purpose of such enforcement, or (iii) disclosure is requested

for the purpose of administering a federal or provincial law;

5. Is made to an investigative body or government institution on the initiative of

CAPITALServ Corporation, and relates to a breach of an agreement or a

contravention of federal, provincial or foreign law; or where CAPITALServ

Corporation suspects the information relates to national security, the defense of

Canada or the conduct of international affairs;

6. Is made because of an emergency that threatens the life, health, or security of an

individual and CAPITALServ Corporation informs the individual without delay of

the disclosure; and/or

7. Is made for statistical or scholarly study and research purposes, under limited

conditions, approved by the Privacy Commissioner.

SAFEGUARDING OF PERSONAL INFORMATION

Your personal information is secure within CAPITALServ Corporation. We have

comprehensive security controls to protect against and reduce unauthorized use,

alteration, duplication, destruction, disclosure, loss, or theft of, or unauthorized access

to, your personal information.

CAPITALServ Corporation and our affiliates, partners and nominees may use other

companies to provide services to you on our behalf, such as the printing of

correspondence, storage of your files in a secured environment or to conduct customer

satisfaction surveys on our behalf. In such cases, we will have contracts in place

holding these companies to the same high standards of confidentiality by which we are

governed and requiring that any information provided by us must be kept strictly

confidential and used only for the purposes of the contract.

CAPITALServ Corporation and our affiliates, partners and nominees also have

agreements in place with credit bureaus and other investors / lenders, which also

require that any information provided by us must be maintained in strict confidence.

CAPITALServ Corporation and our affiliates, partners and nominees employ procedures

to ensure the physical, organizational, and electronic security of your personal

information through the use of secure locks on filing cabinets and doors, and restricted

access to our information processing and storage areas. CAPITALServ Corporation and

our affiliates, partners, and nominees’ limits access to relevant information to authorized

employees only, and through the use of pass keys and computer passwords and, where

necessary, the encryption of electronically transmitted information.

CAPITALServ Corporation and our affiliates, partners and nominees have procedures in

place when destroying, deleting or disposing of personal information when it is no

longer required for the purposes as set out in this Policy, or by law, to prevent

unauthorized access to such personal information and while no company can eliminate

all breaches of security, you can rest assure that CAPITALServ Corporation and our

affiliates, partners and nominees are continually taking pro-active measures to secure

all personal information.

RETENTION OF YOUR PERSONAL INFORMATION

CAPITALServ Corporation and our affiliates, partners and nominees only keeps your

personal information for as long as we need it to meet the purposes set out in this

Policy. The length of time we retain your personal information is also affected by: (1) the

type of product or service you have , and (2) any legal requirements we may have to

meet such as regulatory file retention periods or for being able to respond to any

concerns you may have even if you are no longer a customer of ours.

PRIVACY OPT OUT POLICY

You can choose not to provide us with some or all of your personal information. This

may, however, severely restrict the products and services provided to you. You can also

withdraw your consent to our use of your personal information, as long as you give us

notice in writing, addressed to:

Privacy Information

CAPITALServ Corporation

1020 Bayridge Dr.

Kingston, ON K7P 2S2

Withdrawing your consent does not result in our or your inability to fulfill your financial

contract already in place; and

Your consent does not relate to a credit product provided  to you, where we are required

to collect and exchange some or all of your personal information on an ongoing basis,

with other investors / lenders, or a credit bureau or to maintain the integrity of the credit-

granting system and the completeness of information held by a credit bureau.

HOW YOU CAN HELP US PROTECT YOUR PERSONAL INFORMATION

If you want to review or verify your personal information or find out to whom we have

disclosed it as permitted by this Policy, you can call and speak to one of our service

representatives. At that time, if it is not something that can be simply answered over the

phone, we will provide you with a form to sign and will help you complete the specific

information we will need from you to enable us to search for, and provide you with, the

requested personal information we hold about you. We may charge you a fee to do this

and will advise you of the fee in advance.

There are a few instances where we will not be able to provide the personal information

we hold about you that you request. Some of these instances include, if:

 It contains references to other persons;

 It is subject to solicitor-client or litigation privilege;

 It contains our own proprietary information that is confidential to us;

 It has already been destroyed due to legal requirements or because we no longer

needed it for the purposes set out in this Policy;

 It is too costly, in our determination, to retrieve;

 We are prohibited by law from disclosing to you.

 If we are unable to provide you with access to your personal information, we will

explain the reason why.

Remember that in most provinces you have the right to access and verify the personal

information held about you by a credit bureau. To do so, you must speak directly to the

appropriate bureau.

KEEPING YOUR PERSONAL INFORMATION ACCURATE

We are committed to maintaining the accuracy of your personal information for as long

as it is being used for the purposes set out in this Policy. You play an active role in

keeping us up-to-date. Prompt notification of any changes, for example to your address

or telephone number, will help us provide you with the best possible service. Should you

discover, upon review of your personal information, that amendments are required,

please advise us.

If we do not agree to make the amendments that you request, you may challenge our

decision. We will make a record of this challenge, which will be kept on file.

DO YOU HAVE QUESTIONS OR CONCERNS?

If you have privacy questions, concerns or complaints, we want them to be answered

satisfactorily or resolved as quickly as possible and ask that you follow, in order, the

following three steps.

First: Contact the person at CAPITALServ Corporation you have been dealing with or

call our Customer Service Centre and speak to a representative. They can usually

handle most questions or concerns immediately over the phone.

Second: If the Customer Service Representative or the employee you dealt with is

unable to resolve the matter to your satisfaction, advise them that you wish the matter to

be reviewed by the department manager who will contact you to resolve the issue. You

may be asked to put your concern or complaint in writing.

Third: If you are still not satisfied contact CAPITALServ Corporations’ Privacy Officer at

the addressed noted above.

Upon completion of review by CAPITALServ Corporations’ Privacy Officer, if the above

steps fail to resolve your concern to your satisfaction, your issue may be reviewed by

the Privacy Commissioner of Canada who you may contact at any time in this process

at:

BY MAIL BY TELEPHONE/FAX The Privacy Commissioner of Canada Toll free, at 1-

800-282-1376 112 Kent Street Or Ottawa, Ontario K1A 0H2 By facsimile at 613-947-

6850

RESPONSIBILITIES

Any CAPITALServ Corporation employee who believes personal information is not

being handled in accordance with this Policy should immediately so advise their

manager and the Privacy Officer.

Department Managers required to resolve privacy issues (as per the second step in our

privacy question and complaint handling process) shall maintain appropriate records of

the same and shall report them to the Privacy Officer.

Department Managers are responsible for oversight of this Policy within their

department, including establishing, implementing, and regularly reviewing the necessary

procedures and standards to give effect to this Policy and to train their staff accordingly.

CAPITALServ Corporations’ General Counsel is responsible for providing advice and

assistance to the Privacy Officer and the Department Managers on appropriate

compliance programs and for reviewing the effectiveness of such programs.

The Privacy Officer shall act as a resource to Department Managers in the handling of

disputes and shall present a summary report annually to the Compliance and

Governance Committee of the Board of CAPITALServ Corporation with respect to

unresolved privacy disputes, the nature and number of privacy issues reviewed and any

recommendations with respect to privacy strategies, oversight and policies.

The Privacy Officer will assist Department Managers with developing procedures,

standards, guidelines, and interpretations, promoting awareness of privacy issues and

developing staff training programs.

KEEPING THIS PRIVACY POLICY CURRENT

Changes to this Privacy Policy and the information handling practices of CAPITALServ

Corporation will result in amendments to this document from time to time. The Policy will

be reviewed by the Privacy Officer at a minimum, annually. CAPITALServ Corporation

may add, delete, or modify sections at its discretion.

CAPITALSERV CANADIAN ANTI-SPAM LEGISLATION (CASL) POLICY

(Not applicable to residents of Manitoba) By checking and consenting to receive

electronic messages from us in compliance with this Privacy Policy, as well and this

CASL Policy on our website and/or submitted loan application to CAPITALServ, you are

authorizing CAPITALServ and our affiliates, partners and nominees to communicate

with you via email, social media, text message, telephone, and fax or any other form of

electronic and internet based method via computers, smart phones, mobile or hand held

devices, or telephones. CAPITALServ may send messages to our applicants, clients,

customers, and members in relation to the company’s services, programs, programs,

offers, promotions or those of our affiliates, partners, nominees and third parties.

Marketing Purposes

We may also use and disclose your Information for marketing purposes (not applicable

to residents of Manitoba), including to: (a) better understand your financial needs and

activities so that we may tell you about other products and services that may be of

interest to you, including those offered by our affiliates and third parties we select, (b)

determine your eligibility to participate in contests, surveys or promotions, and to

conduct and administer contests that you enter, (c) conduct research and surveys to

assess your satisfaction with us as a customer, and to develop products and services to

meet your needs, (d) contact you by telephone, fax and automatic dialing-announcing

device, at the numbers you have provided us, or by internet, mail and other methods.

Regrettably, without your consent, CAPITALServ will not be able to provide you with

financial services as CAPITALServ only provides financial services by electronic means.

Messages will be sent by CAPITALServ Corporation:

1020 Bayridge Drive, Kingston, Ontario K7P 2S2.

Phone: 905-320-5538

Email: [email protected]

You may unsubscribe at any time by following the instructions in our communications.

You may also withdraw your consent by contacting us at any of the contacts listed

above or by means specified in our website or agreement. Should you have any

questions, please contact us.