Securities Law & Instruments

IN THE MATTER OF THE CANADIAN SECURITIES LEGISLATION OF QUÉBEC, ONTARIO AND NEW BRUNSWICK

AND

IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF
NATIONAL BANK SECURITIES INC

MRRS DECISION DOCUMENT


WHEREAS the Canadian securities regulatory authority or regulator (the "DecisionMaker") in Québec, Ontario and New Brunswick (the "Jurisdictions") have received anapplication from National Bank Securities Inc ("NBSI"), which act as the manager andprincipal distributor of the National Bank Funds (the "Funds") for a decision pursuant tothe securities legislation of the Jurisdictions (the "Legislation") in order that the distributionof units of the Funds pursuant to the current prospectus offering of the Funds, be extendedto the time periods that would be applicable if the lapse date for distribution of these unitspursuant to that current prospectus was August 31, 2000;

AND WHEREAS pursuant to the Mutual Reliance System for Exemptive ReliefApplications (the "System"), the Commission des valeurs mobilières du Québec is theprincipal regulator for this application;

AND WHEREAS the NBSI has represented to the Decision Makers that:

1. NBSI is the manager and principal distributor of the Funds;

2. Each of the Funds is an unincorporated open-end mutual fund trust created underthe laws of Ontario by a separate declaration of trust;

3. Each Fund is a reporting issuer as defined in the Legislation and is not in defaultof any of the requirements of the Jurisdiction;

4. A receipt dated August 3, 2000 in Québec and in New Brunswick and dated August4, 2000 in Ontario was issued by the Jurisdiction for the (final) simplified prospectus(the "Prospectus") and an annual information form, dated July 23, 1999;

5. The Funds filed pro forma simplified prospectus and pro forma annual informationform with the Jurisdictions on May 19, 2000, June 21, 2000 and June 22, 2000.

AND WHEREAS pursuant to the System, this MRRS Decision Document evidencesthe decision of each Decision Maker (collectively, the "Decision");

AND WHEREAS each of the Decision Makers is satisfied that the test contained inthe Legislation that provides the Decision Maker with the authority to make the Decisionhas been met.

THE DECISION of the Decision Makers pursuant to the Legislation is that thedistribution of units of the Funds, pursuant to the Prospectus of the Funds, be extendedto the time periods that would be applicable if the lapse date for distribution of these unitspursuant to the Prospectus was August 31, 2000.

DATED August 2nd, 2000 in Montreal.

Le directeur des marchés des capitaux,

(s) Jean-François Bernier

Jean-François Bernier