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

Regulations are current to 2017-09-27

 Where it appears to the Bank that a bond and unmatured coupons attached to it, if any, cancelled by a bank incorporated under the Bank Act or the Quebec Savings Banks Act have been destroyed, lost or stolen while in the custody of the bank or in the course of transit from a branch of the bank to its main office or to any agency of the Bank, if the bank certifies that the bond and each coupon attached thereto was effectively cancelled for purposes and in accordance with arrangements expressly approved by the Bank and gives to the Bank an undertaking to indemnify in accordance with section 37 duly executed on its behalf at its head office and three months have elapsed after the day on which the Bank received notice of the destruction, loss or theft, the Bank may, in its discretion, issue a new bond and appropriate coupons in place of them.

 Where a bond that is registered or registrable as to principal and interest, whether cancelled or uncancelled, or a coupon bond and unmatured coupons attached to it, if any, that have been cancelled by the Bank are destroyed, lost or stolen while in the custody of the Bank or in the course of transit from any office of the Bank, the Bank may issue a new bond and appropriate coupons in place of them upon executing an undertaking to indemnify the Government of Canada in an amount equal to the principal amount of the missing bond and value of the coupons, if any.

Damaged or Missing Matured Coupons

  •  (1) Where all parts of a damaged, defaced or mutilated matured coupon that, in the opinion of the Bank are material, are surrendered to the Bank, the Bank may forthwith pay the redemption value of the coupon.

  • (2) If a part of the coupon mentioned in subsection (1) is not surrendered to the Bank, the Bank may, if in its opinion the part is material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before redeeming the coupon or require that the coupon be treated as if it had been destroyed, lost or stolen, as the case may be.

  •  (1) Where it appears to the Bank that a detached coupon has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the coupon if a bond of indemnity in accordance with section 38 is given to the Bank and if the following period has elapsed after notice was received by the Bank of the alleged destruction, loss or theft and the date of maturity of the coupon:

    • (a) six months, in the case of a destroyed coupon; or

    • (b) two years, in the case of a lost or stolen coupon.

  • (2) Notwithstanding subsection (1), where a financial institution acceptable to the Bank has requested payment of the value of a matured coupon that has been destroyed, lost or stolen after encashment by it, the Bank may, in its discretion, at any time after three months from the day on which the Bank received notice of the destruction, loss or theft, pay the redemption value of the coupon if that institution gives to the Bank an undertaking to indemnify the Bank in accordance with section 37.

Unredeemable Coupons Missing from Called Bonds

  •  (1) Where a bond that has been called for payment prior to maturity is presented for the purpose of being redeemed and any of the coupons dated subsequent to the call date are not attached to the bond, an amount equal to the value of the missing coupons shall be withheld and that amount shall be credited to an appropriate account in the books of the Bank.

  • (2) Where a coupon, in respect of which an amount equal to the value of that coupon has been credited to an account in the books of the Bank in accordance with subsection (1), is presented by a person to the Bank, the Bank may pay that amount to that person.

Destroyed, Lost or Stolen Cheques

 Where it appears to the Bank that a cheque issued in payment of interest on or principal of a bond or otherwise in connection with a bond has been destroyed, lost or stolen,

  • (a) after it has been mailed but before the payee received it, the Bank may issue a duplicate cheque in place of it if the payee gives to the Bank an undertaking to indemnify in accordance with section 37; or

  • (b) after the payee received it, the Bank may issue a duplicate cheque in place of it if the payee or a bank or other institution that has negotiated it gives to the Bank an undertaking to indemnify in accordance with section 37 or a bond of indemnity in accordance with section 38, as the Bank may require.

Interim Certificates

 Where it appears to the Bank that an interim certificate has been damaged, defaced, mutilated, destroyed, lost or stolen, the Bank may issue a bond on like conditions to those in which, if the certificate were a coupon bond payable to bearer, the Bank might under these Regulations issue a new bond.

New Bonds

 A new bond issued in place of a damaged, defaced, mutilated, destroyed, lost or stolen bond or interim certificate as provided for in these Regulations shall be of the same issue and aggregate amount and of like tenor as the one that it is issued to replace.

Form of Undertaking to Indemnify

 An undertaking to indemnify given to the Bank under these Regulations shall be executed by the owner or payee of the bond, coupon, cheque or certificate that has been damaged, defaced, mutilated, destroyed, lost or stolen, or by any other person acceptable to the Bank and shall undertake to indemnify the Bank and the Government of Canada for any loss resulting from the issue of any new bond or cheque or the making of any payment in respect thereof and shall be in a form satisfactory to the Bank.

Form of Bond of Indemnity

  •  (1) Subject to subsection (2), a bond of indemnity given to the Bank pursuant to these Regulations shall

    • (a) be executed by

      • (i) a guarantee company approved by the Bank,

      • (ii) a financial institution acceptable to the Bank, or

      • (iii) a government of a province;

    • (b) undertake to indemnify the Bank and the Government of Canada for any loss resulting from the transfer or redemption of any bond, the issue of any new bond or cheque or the making of any payment in respect of the transfer or redemption of any bond or in respect of any destroyed, lost or stolen bond, coupon, cheque or interim certificate in an amount deemed sufficient by the Bank; and

    • (c) be in a form satisfactory to the Bank.

  • (2) The Bank, in lieu of obtaining a bond of indemnity in accordance with subsection (1), may

    • (a) with respect to the alleged destruction, loss or theft of a bond of which a person is registered as owner as to principal and interest and in respect of which no instrument of transfer to bearer has been executed, or

    • (b) with respect to the alleged destruction, loss or theft of a cheque after the payee received it,

    accept a bond of indemnity in such amount, in such form and executed by such sureties as the Bank considers advisable.

Statutory Declaration

 The Bank may, before issuing a bond or cheque or making a payment in accordance with sections 27 to 35 or section 44, require the claimant to furnish a statutory declaration setting out the facts relating to the alleged damage, defacement, mutilation, destruction, loss or theft by reason of which it is to be issued or made.

Canada Savings Bonds

 Where a redemption agent for Canada Savings Bonds makes an erroneous payment and the Bank is satisfied that the error did not result from fault or negligence on the part of the redemption agent, the Treasury Board may, upon the recommendation of the Bank, relieve the redemption agent of liability to the Government of Canada and reimburse the Bank, but otherwise, the redemption agent shall reimburse the Bank in the amount of the loss sustained.

Administration

  •  (1) Where under these Regulations any act is required to be done by the Bank or is effective if done by the Bank, the act is deemed to have been done by the Bank for the purposes of these Regulations if it has been done by an officer or employee of the Bank acting in the course of his duties as such or by a person authorized by the Bank to do that act on behalf of the Bank.

  • (2) Where under these Regulations the Bank is required to or may do an act if it is satisfied or has formed an opinion in respect of any matter, or if any events appear to the Bank to have occurred, it is sufficient for the purposes of these Regulations if the appropriate officer or employee of the Bank satisfies himself or forms the opinion or it appears to him that the events have occurred.

PART IIWar Savings Certificates

 In this Part,

certificate

certificate means War Savings Certificates; (certificat)

Registrar

Registrar means the Bank. (Registraire)

 This Part applies in respect of War Savings Certificates and Part I applies in respect of War Savings Certificates except in so far as it is inconsistent with this Part.

 Where it appears to the Registrar that a certificate has been destroyed, lost or stolen, a cheque for an amount equal to the amount payable upon maturity of that certificate may be issued upon completion by the registered owner or by a person acting on his behalf, who is acceptable to the Registrar, of an undertaking in a form approved by the Registrar but unless the Registrar in its discretion otherwise decides, no cheque shall be issued pursuant to this section until at least three months have elapsed from the date upon which the Registrar first received notice of the alleged destruction, loss or theft of the certificate.

 If the maturity value of all certificates that belonged to a deceased owner is less than $50, production of the documents referred to in section 19 may, at the discretion of the Registrar be dispensed with and the Registrar may redeem the certificates to or in favour of the persons shown to be entitled by a letter from a bank, trust company or other institution acceptable to the Registrar, certifying that letters probate, letters of administration or other documents of like import were in fact granted or executed and giving such further particulars in respect thereof as the Registrar may require.

 The Post Office Department is hereby authorized to redeem War Savings Stamps at their face value upon presentation at any Post Office in Canada.

 
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