The Toronto-Dominion Bank today announced the launch of the TD Dividend Income Fund-Linked Principal Protected Notes, Series 2 and Series 2NL (Return of Capital). The notes are issued by The Toronto-Dominion Bank.

Structured by TD Securities Inc., the notes are linked to the TD Dividend Income Fund, one of the largest, most well-established TD Mutual Funds. Managed by Doug Warwick and Michael Lough of TD Asset Management Inc., the fund seeks to provide income with capital appreciation as a secondary objective, by investing primarily in income-producing securities.

The notes use a dynamic asset allocation strategy designed to provide increased exposure to the fund when performance is up and reduced exposure when performance is down. The notes are also designed to provide up to 150% exposure to the fund through the use of leverage. Investors will benefit from 100% principal protection if they hold the notes until maturity. The notes will provide investors with tax-efficient monthly distributions of 0.42% of fund exposure paid as return of capital.

The selling period for the notes is February 25 to April 4, 2008, with an issue date of April 10. The term is 8 years with a maturity date of April 11, 2016.