Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System (SOR/2003-346)

Clearing

Marginal note:Entries

• 47 (1) Direct clearers, group clearers, clearing agents and the Bank of Canada shall make entries into the ACSS, in accordance with the rules, for the purpose of clearing.

• Marginal note:Manual clearing

  (2) In case of a national failure of the ACSS within the meaning of the rules, direct clearers, group clearers, clearing agents and the Bank of Canada shall effect manual clearing in accordance with the rules.

Marginal note:Establishment of clearing balances

48 The Association shall ensure that clearing is effected by the ACSS and clearing balances are made available to the Bank of Canada.

Marginal note:Errors in clearing balances

49 Direct clearers, group clearers and the Bank of Canada shall correct errors in their clearing balances prior to the final adjustment time and in accordance with the rules.

Settlement

Marginal note:Settlement

• 50 (1) Subject to subsection (2), once the clearing balances have been established by the ACSS and corrected, if necessary, the Bank of Canada shall effect settlement by making the appropriate debit or credit entry into each direct clearer’s or group clearer’s settlement account.

• Marginal note:Default

  (2) In the case of a default by a direct clearer or group clearer under paragraph 53(1)(a), the Bank of Canada shall only effect settlement once the contributions by the other direct clearers, group clearers or the Bank of Canada have been made under subsection 57(2) or 57.01(2).

Marginal note:Notification of settlement

51 The Bank of Canada shall notify a direct clearer or group clearer on settlement.

Marginal note:Settlement is final

52 Settlement at the Bank of Canada is final and shall not be reversed under any circumstances.

DIVISION 6Default

Default of Direct Clearer or Group Clearer

Marginal note:Default of direct clearer or group clearer

• 53 (1) A direct clearer or group clearer is in default for the purposes of this By-law if

  • (a) its settlement account at the Bank of Canada has a shortfall that would preclude settlement and it does not obtain an advance from the Bank of Canada sufficient for that settlement; or

  • (b) it is not able to meet its collateral pool pledge requirement as established by section 34.1.

• Marginal note:Notice

  (2) The Bank of Canada shall immediately notify the President of a default and, in the case of a default under paragraph (1)(a), of the amount of the shortfall. The President shall then notify all other direct clearers and group clearers of the default.

54 [Repealed, SOR/2012-161, s. 11]

55 [Repealed, SOR/2012-161, s. 11]

56 [Repealed, SOR/2012-161, s. 11]

Marginal note:Allocation of shortfall

• 57 (1) Subject to subsection (3), upon receiving notice from the Bank of Canada of a default by a direct clearer or group clearer under paragraph 53(1)(a) and of the amount of the shortfall, the Association shall allocate the shortfall between the direct clearers and group clearers that are not in default by calculating, in accordance with the rules, the default contribution to be made by each of them.

• Marginal note:Default contribution

  (2) The direct clearers and group clearers that are not in default shall make a default contribution to the settlement account of the direct clearer or group clearer in default in the amount determined under subsection (1) within the time and in the manner specified by the rules.

• Marginal note:Limit of contribution

  (3) The total amount of default contributions under subsection (2) from the direct clearers and group clearers that are not in default shall not exceed the amount of the ACSS collateral pool calculated in subsection 34.1(1), less the amount pledged as collateral by the defaulting direct clearer or group clearer.

Marginal note:Calculation of additional contribution

• 57.01 (1) In the event that the default contributions made under section 57 are not sufficient to enable the Bank of Canada to effect settlement, the Association shall calculate, in accordance with the rules, an additional contribution to be made by direct clearers and group clearers that are not in default and by the Bank of Canada to effect settlement.

• Marginal note:Additional contribution

  (2) The direct clearers and group clearers that are not in default and the Bank of Canada shall make the additional contribution, in the amount determined under subsection (1), to the account of the direct clearer or group clearer in default within the time and in the manner specified in the rules.

Marginal note:Reimbursement with interest

57.02 A direct clearer or group clearer shall reimburse each direct clearer, group clearer, or the Bank of Canada for any amount received as a contribution under subsection 57(2) or 57.01(2), plus interest at the rate specified in the rules, and those amounts constitute a debt that survives irrespective of the status of the defaulting direct clearer or group clearer.

Marginal note:Prohibition — entries into ACSS

57.1 A direct clearer or group clearer that is in default shall not make entries into the ACSS unless the direct clearer or group clearer or its assets are under the control or ownership of a federal or provincial regulator or supervisory body or any agent of Her Majesty in right of Canada or agent or mandatary of Her Majesty in right of a province.

Default of Indirect Clearer

Marginal note:Default of indirect clearer

58 An indirect clearer is in default in respect of its clearing agent for the purposes of this By-law if

• (a) the settlement account of the indirect clearer with its clearing agent has a shortfall that would preclude settlement; and

• (b) the indirect clearer does not obtain an advance sufficient for settlement.

59 [Repealed, SOR/2016-284, s. 2]

60 [Repealed, SOR/2012-161, s. 13]

61 [Repealed, SOR/2012-161, s. 13]

62 [Repealed, SOR/2012-161, s. 13]

Repeal

Marginal note:Repeal

63 [Repeal]

Coming into Force

Marginal note:Coming into force

64 This By-law comes into force on the day on which it is registered.