Marginal note:No defences

• 20. (1) A clearing house holds a depository bill or note payable to it, and any money received as payment of principal or interest with respect to the depository bill or note, free from any defence that affects the depository bill or note or any defence that affects the liability of any party to it, except a defence that

  • (a) the signature of the party liable to pay it is forged or unauthorized; or

  • (b) the depository bill or note is counterfeit or has been materially altered without the consent of the party liable to pay it.

• Marginal note:Participants

  (2) Subsection (1) applies to a participant who brings an action in the name of a clearing house in accordance with subsection 18(3).

21. [Amendment]