PART 1Canadian Payments Association (continued)
Rights and Duties of Members
29 Members may present payment items and shall accept and arrange for settlement of payment items in accordance with the by-laws and the rules.
- 1980-81-82-83, c. 40, s. 83
30 [Repealed, 2001, c. 9, s. 240]
Marginal note:Definition of priority payment instrument
31 (1) In this section, priority payment instrument means a money order, bank draft or similar instrument issued, directly or indirectly, by a member other than a money order, bank draft or similar instrument issued by a member to another member for the purpose of effecting a payment between those members.
Marginal note:Priority on insolvency
(2) Despite any other Act of Parliament but subject to subsection (5) and to the rights of secured creditors with respect to any security interest in or charge on the property of a member, if a bankruptcy order is made against a member or a winding-up order is made in respect of a member (hereinafter in this section referred to as an “insolvent member”) the items set out in paragraphs (a) and (b) shall be paid from the estate of the insolvent member, in priority to any other claim against the estate of the insolvent member, in the following order:
(a) unpaid cheques or orders that had been drawn on the insolvent member and certified by such member prior to the making of the bankruptcy order or winding-up order; and
(b) unpaid priority payment instruments drawn on the insolvent member and issued prior to the making of the bankruptcy order or winding-up order.
(3) [Repealed, 1996, c. 6, s. 163]
Marginal note:Time limit
(4) Despite subsection (2), no payment of an unpaid cheque, order or priority payment instrument shall be made under that subsection in priority to any other claim against the estate of an insolvent member unless a request for such payment is made within sixty days after the making of the bankruptcy order or winding-up order.
(5) Subsection (2) shall not be construed or applied to permit an unpaid cheque, an order or a priority payment instrument to be paid in priority to any other claim
(a) where the cheque or order had been certified by the insolvent member, or
(b) where the priority payment instrument had been issued, directly or indirectly, by the insolvent member,
with a view to giving the drawee of the cheque, order or unpaid priority instrument a preference over the other creditors of the insolvent member.
Marginal note:Definition of preference
Marginal note:Definition of member
(7) For purposes of this section, member includes a local that is a member of a central that is a member of the Association.
- R.S., 1985, c. C-21, s. 31
- 1992, c. 27, s. 90
- 1996, c. 6, ss. 163, 167
- 2004, c. 25, s. 192
32 No law relating to the insolvency or winding-up of any body corporate applies to the Association and in no case shall the affairs of the Association be wound up unless Parliament so provides.
- 1980-81-82-83, c. 40, s. 86
33 [Repealed, 2001, c. 9, s. 241]
Application of Other Acts
Marginal note:Application of Canada Business Corporations Act
34 (1) Subsections 16(1) and 21(1), sections 23, 116, 155, 158, 159, 161, 164 to 166 and 168, subsection 169(1), section 170, subsections 171(7) and (8), section 172 and subsections 257(1) and (2) of the Canada Business Corporations Act apply, with such modifications as the circumstances require, to the Association as if it were a corporation incorporated under that Act.
Marginal note:Exemption from Canada Not-for-profit Corporations Act
- R.S., 1985, c. C-21, s. 34
- 1994, c. 24, s. 34(F)
- 2001, c. 9, s. 242
- 2009, c. 23, ss. 320, 351
- 2014, c. 39, s. 355
Marginal note:Regulations by Governor in Council
(a) providing for the mandate of committees established under section 20 or 21, eligibility criteria for membership in those committees and their number of members;
(b) respecting the election of directors of the Association, including the eligibility of persons to be elected as directors, and defining independent for the purposes of paragraph 8(1)(d);
(c) prescribing the form and content of the Association’s corporate plans and annual reports, and the time and manner in which they must be prepared or submitted;
(d) establishing requirements for membership in the Association to be met by persons or classes of persons;
(e) respecting the conditions that a money market mutual fund must satisfy; and
(f) generally, for carrying out the purposes and provisions of this Part.
(2) [Repealed, 2014, c. 39, s. 356]
- R.S., 1985, c. C-21, s. 35
- 2001, c. 9, s. 243
- 2014, c. 39, s. 356
PART 2Designated Payment Systems
36 The definitions in this section apply in this Part.
- designated payment system
designated payment system means a payment system designated under subsection 37(1). (système de paiement désigné)
participant means a party to an arrangement in respect of a payment system. (participant)
- payment system
payment system means a system or arrangement for the exchange of messages effecting, ordering, enabling or facilitating the making of payments or transfers of value. (système de paiement)
rule means a rule, by whatever name called, that governs a designated payment system. It includes an amendment to or a repeal of a rule. (règles)
- 2001, c. 9, s. 244
36.1 This Part does not apply to the Association.
- 2001, c. 9, s. 244
Marginal note:Designation by Minister
(2) The following factors shall be considered in a determination of whether it is in the public interest to designate a payment system:
(3) Before a payment system is designated, the Minister shall consult the manager and the participants of the payment system and may consult interested parties, with respect to the effect of the designation.
(4) The Minister shall notify the manager and the participants of a designated payment system in any manner that the Minister considers appropriate.
Marginal note:Designation not statutory instrument
- 2001, c. 9, s. 244
- Date modified: