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1 The definitions in this section apply in this by-law, unless the context otherwise requires.

additional settlement obligation

additional settlement obligation or ASO means, for each participant, that participant’s obligation, pursuant to section 58, to advance funds, in the amount calculated in accordance with sections 26 to 29, to ensure settlement in the event that another participant is in default as defined in section 56. (obligation supplémentaire de règlement ou OSR)

collateral

collateral means any form of security that is designated by the Bank of Canada, in written communications with the participants, to be acceptable as security for advances of funds by the Bank of Canada and includes securities of a type designated by the Bank of Canada as acceptable as collateral for advances and funds on deposit with the Bank of Canada. (garantie)

Large Value Transfer System

Large Value Transfer System or LVTS means the funds transfer system owned and operated by the Association by which participants may electronically exchange payment messages between themselves and in which the receipt by participants of such payment messages creates payment obligations that are netted on a multilateral net basis, settled on a multilateral net basis directly on the books of the Bank of Canada and supported by collateral pledged to the Bank of Canada as security for any advances to enable participants to settle their payment obligations arising from the system. (système de transfert de paiements de grande valeur ou STPGV)

multilateral net tranche 1 position

multilateral net tranche 1 position means, for each participant, at any time during an LVTS cycle, the value obtained by subtracting

• (a) the sum of all approved payment messages sent by the participant to all other participants as tranche 1 payment messages during that LVTS cycle

[...]

• (b) the sum of all approved payment messages sent to the participant from all other participants as tranche 1 payment messages during that LVTS cycle. (position nette multilatérale de tranche 1)

multilateral net tranche 2 position

multilateral net tranche 2 position means, for each participant, at any time during an LVTS cycle, the value obtained by subtracting

• (a) the sum of all approved payment messages sent by the participant to all other participants as tranche 2 payment messages during that LVTS cycle

[...]

• (b) the sum of all approved payment messages sent to the participant from all other participants as tranche 2 payment messages during that LVTS cycle. (position nette multilatérale de tranche 2)

participant

participant means the Bank of Canada and each other member that has been admitted to participate in the LVTS whose status as a participant has not been revoked in accordance with section 15 and that has not withdrawn in accordance with section 17. (participant)

payment confirmation reference number

payment confirmation reference number means a number attached by the LVTS to a payment message on passage of the risk control tests identifying the payment as one that has passed all risk control tests applicable to that payment. (numéro de confirmation du paiement)

payment queue

payment queue means the payment message storage mechanism by which payment messages that have not passed the applicable risk control tests may be stored until such time as the payment messages are delivered to the receiving participants or returned to the sending participants in accordance with this by-law and the rules. (file d’attente de paiement)

pledge

pledge means a grant to the Bank of Canada of a security interest in collateral as security for any advances of funds that the Bank of Canada may make for the purposes described in section 30 and includes a grant of a security interest in which the Bank of Canada does not take possession of the collateral. (nantissement)

settlement

settlement means the settlement of a participant’s multilateral net position as described in section 53. (règlement)

[...]

1 The definitions in this section apply in this by-law, unless the context otherwise requires.

additional settlement obligation

additional settlement obligation or ASO means, for each participant, that participant’s obligation, pursuant to section 58, to advance funds, in the amount calculated in accordance with sections 26 to 29, to ensure settlement in the event that another participant is in default as defined in section 56. (obligation supplémentaire de règlement ou OSR)

business day

business day  has the same meaning as in the rules. (jour ouvrable)

collateral

collateral means any form of security that is designated by the Bank of Canada, in written communications with the participants, to be acceptable as security for advances of funds by the Bank of Canada and includes securities of a type designated by the Bank of Canada as acceptable as collateral for advances and funds on deposit with the Bank of Canada. (garantie)

Large Value Transfer System

Large Value Transfer System or LVTS means the funds transfer system owned and operated by the Association by which participants may electronically exchange payment messages between themselves and in which the receipt by participants of such payment messages creates payment obligations that are netted on a multilateral net basis, settled on a multilateral net basis directly on the books of the Bank of Canada and supported by collateral pledged to the Bank of Canada as security for any advances to enable participants to settle their payment obligations arising from the system. (système de transfert de paiements de grande valeur ou STPGV)

Lynx

Lynx  has the same meaning as in section 1 of the Canadian Payments Association By-law No. 9 — Lynx. (Lynx)

multilateral net tranche 1 position

multilateral net tranche 1 position means, for each participant, at any time during an LVTS cycle, the value obtained by subtracting

• (a) the sum of all approved payment messages sent by the participant to all other participants as tranche 1 payment messages during that LVTS cycle

[...]

• (b) the sum of all approved payment messages sent to the participant from all other participants as tranche 1 payment messages during that LVTS cycle. (position nette multilatérale de tranche 1)

multilateral net tranche 2 position

multilateral net tranche 2 position means, for each participant, at any time during an LVTS cycle, the value obtained by subtracting

• (a) the sum of all approved payment messages sent by the participant to all other participants as tranche 2 payment messages during that LVTS cycle

[...]

• (b) the sum of all approved payment messages sent to the participant from all other participants as tranche 2 payment messages during that LVTS cycle. (position nette multilatérale de tranche 2)

participant

participant means the Bank of Canada and each other member that has been admitted to participate in the LVTS whose status as a participant has not been revoked in accordance with section 15 and that has not withdrawn in accordance with section 17. (participant)

payment confirmation reference number

payment confirmation reference number means a number attached by the LVTS to a payment message on passage of the risk control tests identifying the payment as one that has passed all risk control tests applicable to that payment. (numéro de confirmation du paiement)

payment queue

payment queue means the payment message storage mechanism by which payment messages that have not passed the applicable risk control tests may be stored until such time as the payment messages are delivered to the receiving participants or returned to the sending participants in accordance with this by-law and the rules. (file d’attente de paiement)

pledge

pledge means a grant to the Bank of Canada of a security interest in collateral as security for any advances of funds that the Bank of Canada may make for the purposes described in section 30 and includes a grant of a security interest in which the Bank of Canada does not take possession of the collateral. (nantissement)

settlement

settlement means the settlement of a participant’s multilateral net position as described in section 53. (règlement)

[...]

• 44 (1) Despite the requirements of section 43,

  • (a) if, in the receiving participant’s relationship with the payee at the time the funds are to be made available, action is usually taken by the branch of account in order for the funds to be made available to the payee and either the branch of account is closed on the day the payment message is received by the participant or the payment message is received by the participant within an amount of time, as may be set out in the rules, prior to the close of business of the branch of account for the business day, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but in any event not later than the beginning of the next day that the branch of account is opened for the purpose of making such funds available or as soon after that time as is reasonably practicable;

  • (b) if the payment message has been received by the receiving participant after such time as may be set out in the rules, prior to the end of the LVTS cycle, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but in any event not later than the beginning of the next business day; or

  • (c) if the receiving participant, having exercised such standard of care in the operation of its systems as is reasonable in the circumstances and having employed such alternative operations and procedures to make the amount of the payment message available as are reasonable in the circumstances, cannot comply with the obligation to make the amount of the payment message available as set out in section 43 due to a technical malfunction beyond the reasonable control of the participant or other event beyond the reasonable control of the participant that directly impairs the continued normal functioning of the receiving participant’s operating systems and procedures, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but as soon as practicable after the restoration of the normal functioning of the receiving participant’s operating systems and procedures and in any event shall make the amount of the payment message available not later than the end of the next business day following the day the restoration is completed.

[...]

• [...]

• (3) Except as expressly provided in this by-law or the rules, nothing in this by-law or the rules shall affect or be interpreted so as to affect the rights or liabilities of any person at law.

• (4) Except as expressly provided in this by-law or the rules, nothing in this by-law or the rules shall be interpreted as imposing, or be deemed to impose, on any participant or on the Association any duty, liability or obligation towards anyone.

• (5) At any time when the LVTS is suspended or inoperative, this by-law shall not apply to any payment made between participants or any action taken, or not taken, by a participant on the basis of any such payment, unless the payment message has passed all risk control tests applicable to that payment message as set out in this by-law.

[...]

• [...]

• (4) Before the actual receipt of a payment message, a receiving participant shall not make the amount of the payment message available to the payee as the completion of a payment sent through the LVTS.

• (5) If a receiving participant makes the amount of a payment message available to the payee before the actual receipt of the payment message, that amount is deemed to be finally and irrevocably available if

  • [...]

  • (b) the receiving participant provides the payee with the amount of the payment as well as with a number that it represents as being the payment confirmation reference number.