Canadian Payments Act (R.S.C., 1985, c. C-21)

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Act current to 2018-09-26 and last amended on 2017-12-31. Previous Versions

Act Binding on Her Majesty

Marginal note:Her Majesty

  •  (1) This Act is binding on Her Majesty in right of Canada.

  • Marginal note:Her Majesty in right of a province

    (2) If Her Majesty in right of a province becomes a member of the Association, this Act is binding on Her Majesty in right of the province.

  • 2001, c. 9, s. 220.

PART 1Canadian Payments Association

Establishment and Membership

Marginal note:Association established

  •  (1) A corporation is hereby established to be called the Canadian Payments Association.

  • Marginal note:Association not an agent of Her Majesty

    (2) The Association is not an agent of Her Majesty.

  • 1980-81-82-83, c. 40, s. 56.

Marginal note:Members of Association

  •  (1) The Association shall consist of the following members:

    • (a) the Bank of Canada;

    • (b) every bank;

    • (c) every authorized foreign bank;

    • (c.1) every cooperative credit association, loan company or trust company that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act; and

    • (d) any other person who is entitled under this Part to be a member and who, on application to the Association for membership in the Association, establishes entitlement to be a member.

  • Marginal note:Entitled members

    (2) Each of the following persons is entitled to be a member of the Association if they meet the requirements set out in the regulations and the by-laws:

    • (a) a central, a trust company, a loan company and any other person, other than a local that is a member of a central or a cooperative credit association, that accepts deposits transferable by order;

    • (b) [Repealed, 2001, c. 9, s. 223]

    • (c) Her Majesty in right of a province or an agent or mandatary of Her Majesty in right of a province, if Her Majesty in right of a province or the agent or mandatary accepts deposits transferable by order;

    • (d) a life insurance company;

    • (e) a securities dealer;

    • (f) a cooperative credit association;

    • (g) the trustee of a qualified trust; and

    • (h) a qualified corporation, on behalf of its money market mutual fund.

  • Marginal note:Commencement of membership

    (3) Membership in the Association commences

    • (a) in the case of a bank and an authorized foreign bank, on the day on which an order is made under the Bank Act approving its commencement and carrying on of business; and

    • (b) in the case of a person referred to in paragraph (1)(d), on the day on which the person’s application for membership in the Association is approved by the Board.

  • Marginal note:Suspension of membership rights

    (4) A suspension, imposed in accordance with the by-laws, of any of a member’s membership rights is not effective unless the Association has, in advance, sent the Minister a notice of the suspension.

  • Marginal note:Termination of membership

    (5) A member, other than a member referred to in paragraphs (1)(a) to (c), ceases being a member of the Association if

    • (a) the member gives the Association notice of its intention to cease being a member at least ninety days prior to the effective date thereof or such longer notice as the by-laws may require; and

    • (b) the member satisfies its liabilities to the Association.

  • Marginal note:Termination of membership

    (6) A member, other than a member referred to in paragraphs (1)(a) to (c), ceases being a member of the Association three days after the day on which the Board adopts a resolution, by a majority of not less than two-thirds of the votes cast by directors voting in respect of the resolution, declaring that, in the opinion of the Board, the member does not meet the requirements set out in the regulations and the by-laws.

  • Marginal note:Effect of resolution

    (7) A member to which a resolution of the Board described in subsection (6) is applicable is not

    • (a) eligible to vote at any meeting of members held in the three days following the day on which the resolution is adopted;

    • (b) eligible, despite any other provision of this Part, for readmission to the Association as a member until a resolution is adopted by the Board, by a majority of not less than two-thirds of the votes cast by directors voting in respect of the resolution, declaring that, in the opinion of the Board, the member or former member concerned meets the requirements set out in the regulations and the by-laws; or

    • (c) relieved of the obligation to pay to the Association its liabilities to the Association on the day it ceases being a member.

  • R.S., 1985, c. C-21, s. 4;
  • 1992, c. 1, s. 142;
  • 1999, c. 28, s. 111;
  • 2001, c. 9, s. 223;
  • 2007, c. 6, s. 423;
  • 2009, c. 2, s. 256;
  • 2014, c. 39, s. 335.

Marginal note:Right to vote

  •  (1) Each member shall have one vote on all matters to be decided by members.

  • Marginal note:Proxies

    (2) A member entitled to vote at a meeting of members may, by means of a proxy, appoint a proxyholder or one or more alternate proxyholders to attend and act at the meeting in the manner and to the extent authorized by the proxy and within the authority conferred by the proxy.

  • Marginal note:Quorum

    (3) At a meeting of members, the members present, in person or by proxy, constitute a quorum if, together, they represent the majority of all members.

  • 2014, c. 39, s. 336.

Objects and Powers

Marginal note:Objects

  •  (1) The objects of the Association are to

    • (a) establish and operate national systems for the clearing and settlement of payments and other arrangements for the making or exchange of payments;

    • (b) facilitate the interaction of its clearing and settlement systems and related arrangements with other systems or arrangements involved in the exchange, clearing or settlement of payments; and

    • (c) facilitate the development of new payment methods and technologies.

  • Marginal note:Duty of Association

    (2) In pursuing its objects, the Association shall promote the efficiency, safety and soundness of its clearing and settlement systems and take into account the interests of users.

  • R.S., 1985, c. C-21, s. 5;
  • 2001, c. 9, s. 224.

Marginal note:Powers

  •  (1) The Association may, in carrying out its objects,

    • (a) arrange the exchange of payment items at such places in Canada as the Association considers appropriate;

    • (b) require the payment of dues by members and establish the amount thereof;

    • (c) employ such officers and employees and engage the services of such advisers, agents and consultants as it considers necessary for the proper conduct of its business, and fix the terms and conditions of their employment or engagement and remuneration; and

    • (d) provide or procure the provision of pension, insurance or other benefits for officers and employees of the Association.

  • Marginal note:Capacity and powers

    (2) For the purpose of carrying out its objects, the Association has the capacity, rights, powers and privileges of a natural person.

  • R.S., 1985, c. C-21, s. 6;
  • 2001, c. 9, s. 225.

Head Office

Marginal note:Head office

 The head office of the Association shall be at such place in Canada as may be designated in the by-laws of the Association.

  • 1980-81-82-83, c. 40, s. 60.

Board of Directors

Marginal note:Composition

  •  (1) There shall be a Board of Directors of the Association consisting of the following 13 directors:

    • (a) the President;

    • (b) three directors who are directors, officers or employees of members that, in the normal course of business, maintain a settlement account at the Bank of Canada;

    • (c) two directors who are directors, officers or employees of members other than those described in paragraph (b); and

    • (d) seven directors who are independent of the Association and of its members.

  • Marginal note:Election of directors

    (2) The directors referred to in paragraphs (1)(b) to (d) are to be elected by the members.

  • Marginal note:Quorum

    (3) At a meeting of the Board, the directors present constitute a quorum if at least seven directors are present and a majority of the directors present are directors referred to in paragraph (1)(d).

  • R.S., 1985, c. C-21, s. 8;
  • 2001, c. 9, s. 226;
  • 2014, c. 39, s. 337.
 
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