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Principal Protected Notes
Scotia Capital

BNS SC Universe Bond Index™ Notes (Return of Capital), Series 1


Summary

Issuer:
Issue Date: October 26, 2007
Maturity Date: October 26, 2012 - 5yr term
Principal Payment: 100% Principal repayment if held to maturity
Semi-Annual Principal Payment: Semi-Annual Partial Principal Repayments of 2.125%
Amount Payable at Maturity Date:

Maturity Payment Amount = Principal Outstanding + Variable Return (See Variable Return Calculation for more details)

Underlying Index:

Scotia Capital Universe Overall Bond Index™

The Index consists of semi-annual pay fixed rate bonds denominated in Canadian dollars with a remaining effective term to maturity of at least one year, rated BBB or higher. The Index includes four main credit or borrower categories: bonds issued by the Government of Canada, Provincial bonds, Municipal bonds and Corporate bonds. Issues are reviewed for eligibility on an individual basis. A full description of the Index methodology is available on the internet site www.canadianbondindices.com. Neither the Bank nor Scotia Capital Inc. is the sponsor of the Index.


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