Canadian Payments Act (R.S.C., 1985, c. C-21)

Act current to 2014-09-29 and last amended on 2012-12-19. Previous Versions

Canadian Payments Act

R.S.C., 1985, c. C-21

An Act respecting the Canadian Payments Association and the regulation of systems and arrangements for the making of payments

SHORT TITLE

Marginal note:Short title

 This Act may be cited as the Canadian Payments Act.

  • R.S., 1985, c. C-21, s. 1;
  • 2001, c. 9, s. 218.

INTERPRETATION

Marginal note:Definitions
  •  (1) In this Act,

    “Association”

    « Association »

    “Association” means the Canadian Payments Association established by section 3;

    “authorized foreign bank”

    « banque étrangère autorisée »

    “authorized foreign bank” means a foreign bank in respect of which an order under subsection 524(1) of the Bank Act has been made but does not include a foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

    “Board”

    « conseil »

    “Board” means the Board of Directors of the Association;

    “by-law”

    « règlement administratif »

    “by-law” means a by-law of the Association;

    “central cooperative credit society” and “central”

    « société coopérative de crédit centrale » ou « centrale »

    “central cooperative credit society” and “central” mean a cooperative credit society incorporated by or under an Act of the legislature of a province, one of whose principal purposes is to provide liquidity support to local cooperative credit societies, and

    • (a) whose membership consists wholly or primarily of local cooperative credit societies, or

    • (b) whose directors are wholly or primarily persons elected or appointed by local cooperative credit societies;

    “Chairman”

    “Chairman”[Repealed, 2001, c. 9, s. 219]

    “Chairperson”

    « président »

    “Chairperson” means the Chairperson of the Board referred to in section 15;

    “cooperative credit association”

    « association coopérative de crédit »

    “cooperative credit association” means an association to which the Cooperative Credit Associations Act applies;

    “Executive Committee”

    « comité de direction »

    “Executive Committee” means the Executive Committee established pursuant to section 20;

    “federation of cooperative credit societies”

    “federation of cooperative credit societies” or “federation”[Repealed, 2001, c. 9, s. 219]

    “General Manager”

    “General Manager”[Repealed, 2007, c. 6, s. 422]

    “Inspector”

    “Inspector”[Repealed, R.S., 1985, c. 18 (3rd Supp.), s. 33]

    “life insurance company”

    « société d’assurance-vie »

    “life insurance company” means

    • (a) a life company within the meaning of subsection 2(1) of the Insurance Companies Act,

    • (b) a foreign life company within the meaning of section 571 of that Act, acting in respect of its insurance business in Canada, or

    • (c) a body corporate that carries on under a constating instrument issued under an Act of the legislature of a province a business substantially similar to the business of a life company referred to in paragraph (a);

    “loan company”

    « société de prêt »

    “loan company” means a body corporate that accepts deposits transferable by order to a third party and that

    • (a) is a company to which the Trust and Loan Companies Act applies and that is not a trust company pursuant to subsection 57(2) of that Act, or

    • (b) carries on, under an Act of the legislature of a province or a constating instrument issued under provincial jurisdiction, a business substantially similar to the business of a company referred to in paragraph (a);

    “local cooperative credit society” and “local”

    « société coopérative de crédit locale »

    “local cooperative credit society” and “local” mean a cooperative credit society incorporated by or under an Act of the legislature of a province

    • (a) whose members consist substantially of individuals, and

    • (b) whose principal purpose is to receive deposits from, and make loans to, its members;

    “member”

    « membre »

    “member” means any of those persons who are members of the Association pursuant to section 4;

    “Minister”

    « ministre »

    “Minister” means the Minister of Finance;

    “money market mutual fund”

    « fonds mutuel en instruments du marché monétaire »

    “money market mutual fund” means a fund

    • (a) the assets of which are fully or principally invested in short-term and highly liquid debt securities, and

    • (b) that satisfies conditions prescribed by regulation;

    “payment item”

    « instrument de paiement »

    “payment item” means a bill of exchange drawn on a member and includes any other class of items approved by by-law;

    “President”

    « président »

    “President” means the President of the Association appointed under section 16;

    “qualified corporation”

    « société admissible »

    “qualified corporation” means a body corporate

    • (a) that has issued shares to the public under a prospectus, filed in accordance with the laws of the province in which the shares were issued, having conditions attached to the shares requiring the body corporate to accept the surrender of any fully-paid shares, or fractions or portions of the shares,

      • (i) at the demand of their holder, and

      • (ii) at prices determined and payable in accordance with specified conditions,

    • (b) whose shares referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the shares, that is not less than 95% of the fair market value of all of the issued shares of the capital stock of the body corporate, and

    • (c) having assets that constitute a money market mutual fund;

    “qualified trust”

    « fiducie admissible »

    “qualified trust” means an inter vivos trust

    • (a) in which the interest of its beneficiaries is described by reference to units of the trust that have been issued to the public under a prospectus, filed in accordance with the laws of the province in which the units were issued, having conditions attached to the units requiring the trustee to accept the surrender of any fully-paid units, or fractions or portions of the units,

      • (i) at the demand of their holder, and

      • (ii) at prices determined and payable in accordance with specified conditions,

    • (b) whose units referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the units, that is not less than 95% of the fair market value of all of the issued units of the trust, and

    • (c) whose assets constitute a money market mutual fund;

    “rule”

    « règle »

    “rule” means a rule of the Association;

    “securities dealer”

    « courtier en valeurs mobilières »

    “securities dealer” means a body corporate that is registered or licensed under the laws of a province to trade in securities, as agent or for its own behalf;

    “Superintendent”

    “Superintendent”[Repealed, 2001, c. 9, s. 219]

    “trust company”

    « société de fiducie »

    “trust company” means a body corporate that accepts deposits transferable by order to a third party and that

    • (a) is a company to which the Trust and Loan Companies Act applies and that is a trust company pursuant to subsection 57(2) of that Act, or

    • (b) carries on, under an Act of the legislature of a province or a constating instrument issued under provincial jurisdiction, a business substantially similar to the business of a company referred to in paragraph (a);

    “trustee”

    « fiduciaire »

    “trustee”, in respect of a qualified trust, means a trustee that is a body corporate;

    “user”

    « usager »

    “user” means

    • (a) in Part 1, a person who is a user of payment services but is not a member, and

    • (b) in Part 2, a person who is a user of services provided by a participant of a payment system but is not a participant in the system.

  • Marginal note:Societies and federations

    (2) For the purposes of Part 1, a local cooperative credit society, a cooperative credit association, a central cooperative credit society or a federation of cooperative credit societies is deemed not to be a loan company or a trust company.

  • Marginal note:Not statutory instrument

    (3) Rules, statements of principle and standards made by the Board and orders made under a by-law are not statutory instruments for the purposes of the Statutory Instruments Act.

  • R.S., 1985, c. C-21, s. 2;
  • R.S., 1985, c. 18 (3rd Supp.), s. 33;
  • 1991, c. 45, s. 546, c. 48, s. 488;
  • 1999, c. 28, s. 110;
  • 2001, c. 9, s. 219;
  • 2007, c. 6, s. 422.