Domestic Bonds of Canada Regulations (C.R.C., c. 698)

Regulations are current to 2017-10-13

Domestic Bonds of Canada Regulations

C.R.C., c. 698

FINANCIAL ADMINISTRATION ACT

Regulations Respecting Domestic Bonds of the Government of Canada

Short Title

 These Regulations may be cited as the Domestic Bonds of Canada Regulations.

Interpretation

 In these Regulations,

Bank

Bank means the Bank of Canada; (Banque)

bond

bond has the same meaning as security in the Financial Administration Act; (obligation)

registered owner

registered owner

  • (a) of a bond registered as to principal, means a person whose name has been entered by the Bank in the register as the person to whom the principal is payable, and

  • (b) of a bond registered as to principal and interest, means the person whose name has been entered by the Bank in the register as the person to whom the principal and interest are payable. (titulaire)

Application

 These Regulations apply in respect of all bonds except insofar as they are inconsistent with the terms of the bonds.

PART IRegistration

Registrar

  •  (1) The Bank shall maintain a register of bonds in accordance with these Regulations.

  • (2) The Bank shall, in accordance with these Regulations, register bonds, discharge the registration of bonds and give effect to transfers of bonds as may be required from time to time and may, subject to the terms upon which the bonds are issued, issue such bonds as may be required for these purposes or to give effect to the terms of outstanding bonds or these Regulations.

  • (3) Any duty, power or discretion imposed or conferred upon the Deputy Minister of Finance by the terms of bonds, which was imposed or conferred upon the Bank of Canada by Order in Council P.C. 5938 dated October 25, 1940, continues to be imposed and conferred upon the Bank and anything done by the Bank as registrar of bonds in accordance with these Regulations or any other regulations or laws applicable thereto continues to be and is as valid and effectual for all purposes as if done by the Deputy Minister of Finance.

  • (4) The Bank may authorize a person to act on its behalf for any of the purposes of these Regulations and, where the person so authorized is a corporation, its appropriate officers or employees shall be deemed to be authorized to act on behalf of the Bank.

Manner of Registration

  •  (1) Where a person is to be registered as owner of a bond

    • (a) as to principal, the Bank shall enter in the register the particulars of the bond and the name of the person to whom the principal is payable; or

    • (b) as to principal and interest, the Bank shall enter in the register the particulars of the bond and the name and post office address of the person to whom the principal and interest are payable.

  • (2) Where the names of two or more persons are to be entered in the register as owners of a bond as to principal and interest, there shall be indicated by the owners only one address that is to be entered in the register which address shall be the registered address of all those persons for all purposes relating to the bond.

Effect of Registration

  •  (1) Where, in accordance with these Regulations, the name of a person has been entered in the register by the Bank as owner of a bond as to principal or as to principal and interest, the entry in the register shall, except as otherwise provided in these Regulations, be conclusive evidence as against the Government of Canada that that person is owner of that bond.

  • (2) Where, in accordance with these Regulations, the name of a person is entered in the register as owner of a bond as to principal and interest, the interest on that bond is payable by a cheque negotiable at any branch in Canada of a bank incorporated under the Bank Act.

  • (3) Where the names of two or more persons without the words “and survivor”, are entered in the register as owners of a bond and one of the persons dies, his rights under the bond are not vested in any other such person or persons on his death by reason of survivorship.

  • (4) Notwithstanding that the name of a person is entered in the register as owner of a bond as to principal, the coupons attached to the bond are payable to bearer and when detached are transferable by delivery.

  •  (1) Where a bond is issued or registered, such issue or registration shall be deemed to be valid notwithstanding that

    • (a) the issue or registration takes place in error in circumstances in which such issue or registration is not authorized by these Regulations, or

    • (b) the issue or registration takes place pursuant to an instrument of transfer in which the signature of the transferor has been forged or pursuant to a forged instrument purporting to authorize a person to act on behalf of or in the place of a registered owner as provided for in section 15,

    but nothing in this section shall be deemed to affect the rights or liabilities of any person by reason of the forged instrument.

  • (2) Where in error a bond is issued or registered in circumstances in which such issue or registration is not authorized by these Regulations and the bond has been delivered, the person receiving the bond or registered as owner thereof shall not be entitled as against the Government of Canada to any payment under the bond but shall be liable to return the bond and all coupons attached to it at the time it was delivered to him and if he fails to do so he shall be liable to pay to the Bank the market value of the bond together with an amount equal to any amounts paid to him by way of interest on the bond.

  • (3) Where a person mentioned in subsection (2) fails to return matured coupons to the Bank, he shall be deemed to have received payment of the redemption value of the coupons.

Entries in Bonds

 Where the name of a person has been entered in the register by the Bank as owner of a bond

  • (a) registered as to principal, the Bank shall enter his name in the bond as the person to whom the principal is payable; or

  • (b) registered as to principal and interest, the Bank shall enter his name in the bond as the person to whom the principal and interest are payable.

 No entry in a bond of the name of any person as the person to whom the principal is payable or the principal and interest are payable made by a person other than the Bank is effective to confer any right under or interest in the bond.

 No alteration or erasure of the name of any person entered by the Bank in a bond as the person to whom the principal is payable or the principal and interest are payable is effective to confer any right under the bond on any other person or to deprive the person whose name was entered by the Bank of any rights that he may have under the bond.

 Where a person applies to be registered as owner of a bond and the bond is delivered to him without his name being entered in it by the Bank, the bond shall be deemed to be validly issued and unless he returns the bond to the Bank to have his name so entered, he shall be deemed to have accepted the bond in satisfaction of his rights as registered owner and the entry, if any, in the register shall be cancelled by the Bank.

Transfer of Bonds by Registered Owners

  •  (1) Except as otherwise provided by the terms of the bond a registered bond may, in accordance with sections 13 to 18, be transferred on presentation of the bond and of an instrument of transfer in accordance with these Regulations.

  • (2) Where subsection (1) has been complied with, the Bank may give effect to the instrument of transfer in accordance with its terms.

  • (3) The execution of an instrument of transfer does not transfer or confer any right under the bond against the Government of Canada or the Bank until the Bank has given effect to the instrument by making the appropriate entry in the register.

Form and Execution of Instrument of Transfer

  •  (1) An instrument of transfer shall be in Form I set out in the schedule.

  • (2) An instrument of transfer may be executed

    • (a) by being signed by the registered owner or his personal representative;

    • (b) where the registered owner is a corporation, by being signed by its duly authorized officers and by affixing the seal of the corporation, if any, where required;

    • (c) by being signed by a person authorized in that behalf by the registered owner under a power of attorney or partnership agreement;

    • (d) where an unincorporated association not being a partnership is registered as owner of a bond, by being signed by the duly authorized officers of the association; or

    • (e) by being signed by a person authorized by law to execute it on behalf of the registered owner.

  • (3) For the purposes of these Regulations, a person authorized by law to execute an instrument of transfer on behalf of a registered owner means any person appointed by a competent court or by statute to act on behalf of or in the place of the registered owner and includes a trustee in bankruptcy.

Guarantee of Signature

  •  (1) The Bank is not required to give effect to an instrument of transfer unless the signature on the instrument of transfer is guaranteed by

    • (a) a bank incorporated under the Bank Act or the Quebec Savings Banks Act; or

    • (b) a financial institution approved by the Bank under this section.

  • (2) The Bank may approve a financial institution for the purposes of this section and section 15 and may impose terms and conditions in connection with its approval and limit the amount of the bonds to be transferred in any one transaction with respect to which the guarantee of the institution will be accepted by the Bank and may revoke or vary any approval so given.

 
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