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Payment Clearing and Settlement Act (S.C. 1996, c. 6, Sch.)

Act current to 2019-08-15 and last amended on 2019-06-23. Previous Versions

PART I.1Clearing and Settlement System Resolution (continued)

Compensation (continued)

Marginal note:Discharge of liability

 Payment of the compensation by the Bank under section 11.26 discharges the Bank from its obligations under that section and in no case is the Bank under any obligation to see to the proper application in any way of any such payment.

  • 2018, c. 12, s. 234

Marginal note:Appointment of assessor

 In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge of a superior court to review a decision made by the Bank under subsection 11.26(1) and determine, in accordance with the regulations, the amount of compensation, if any, to be paid to a prescribed person or entity.

  • 2018, c. 12, s. 234

Marginal note:Sittings and hearings

  •  (1) The assessor may sit at any place and shall arrange for the sittings and hearings that may be required.

  • Marginal note:Powers of assessor

    (2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath or solemn affirmation.

  • Marginal note:Assistance

    (3) The assessor may appoint a person or entity to assist him or her in exercising his or her powers or performing his or her duties and functions.

  • Marginal note:Payment

    (4) Fees and disbursements payable to the person or entity may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6).

  • Marginal note:Costs payable by Bank

    (5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person or entity and against the Bank, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Bank to the prescribed person or entity.

  • Marginal note:Costs payable to Bank

    (6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Bank and against a prescribed person or entity, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person or entity to the Bank and may be recovered as such in any court of competent jurisdiction.

  • 2018, c. 12, s. 234

Marginal note:Decision final

 A decision made by an assessor appointed under section 11.28 or, subject to that section, by the Bank under subsection 11.26(1), is for all purposes final.

  • 2018, c. 12, s. 234

PART IIGeneral

Bank Powers

Marginal note:Other powers

 The Bank may do all or any of the following:

  • (a) be a participant in a clearing and settlement system and participate in its loss-sharing mechanism;

  • (b) act as a custodian of financial assets or act as a settlement agent, or both, for a clearing house;

  • (c) despite section 23 of the Bank of Canada Act, accept and pay interest on deposits from a clearing house, participant or central counter-party.

  • 1996, c. 6, s. 162 (Sch., s. 12)
  • 2014, c. 39, s. 368

Marginal note:Cooperation

 If a clearing and settlement system is operated by a clearing house that is not located in Canada, the Bank may cooperate with the foreign resolution authority of that clearing house.

  • 2018, c. 12, s. 235

Marginal note:Bank may impose fees

  •  (1) The Bank may annually impose a fee on a clearing house for the reasonable costs to the Bank of the administration of this Act for that year in respect of the clearing house’s designated clearing and settlement system.

  • Marginal note:Recovery of fees

    (2) A fee imposed under subsection (1) constitutes a debt due to the Bank and may be recovered as such in any court of competent jurisdiction.

  • 2014, c. 39, s. 368

Netting Agreements

Marginal note:Termination

  •  (1) Despite anything in any law relating to bankruptcy or insolvency or any order of a court made in respect of a reorganization, arrangement or receivership involving insolvency, a party to a netting agreement may terminate the agreement and determine a net termination value or net settlement amount in accordance with the provisions of the agreement and the party entitled to the net termination value or net settlement amount is to be a creditor of the party owing the net termination value or net settlement amount for that value or amount.

  • Marginal note:Eligible financial contract

    (1.1) If a netting agreement referred to in subsection (1) is an eligible financial contract, a party to the agreement may also, in accordance with the provisions of that agreement, deal with financial collateral including

    • (a) selling or foreclosing or, in the Province of Quebec, surrendering financial collateral; and

    • (b) setting off or compensating financial collateral or applying the proceeds or value of financial collateral.

  • Marginal note:Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act

    (1.2) Despite subsections (1) and (1.1), no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.1), (7.104), (7.11), (7.12) or (7.2) or section 39.152 of that Act.

  • Marginal note:Interpretation

    (2) The following definitions apply in this section.

    financial collateral

    financial collateral means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

    • (a) cash or cash equivalents, including negotiable instruments and demand deposits,

    • (b) securities, a securities account, a securities entitlement or a right to acquire securities,

    • (c) a futures agreement or a futures account,

    • (d) an assignment of a right to payment or delivery against a clearing house, or

    • (e) any other collateral that is prescribed. (garantie financière)

    financial institution

    financial institution means

    • (a) a financial institution within the meaning of section 2 of the Trust and Loan Companies Act,

    • (b) such other entity or entity within a class of entities engaged primarily in the business of providing financial services as may be designated by order of the Governor in Council to be a financial institution for the purposes of this section,

    • (c) a trustee, manager or administrator of a pension fund maintained to provide benefits under a pension plan registered under the Income Tax Act,

    • (d) the Canada Pension Plan Investment Board, or

    • (e) the Public Sector Pension Investment Board. (institution financière)

    net termination value

    net termination value means the net amount obtained after setting off or compensating or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions. (reliquat net)

    netting agreement

    netting agreement means an agreement between two or more financial institutions, between the Bank and one or more financial institutions or between a participant and a customer to which the participant provides clearing services that is

    • (a) an eligible financial contract; or

    • (b) an agreement that provides for the netting or set-off or compensation of present or future obligations to make payments against the present or future rights to receive payments. (accord de compensation)

    title transfer credit support agreement

    title transfer credit support agreement means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract. (accord de transfert de titres pour obtention de crédit)

  • 1996, c. 6, s. 162 (Sch., s. 13)
  • 1997, c. 40, s. 109
  • 1999, c. 28, s. 133, c. 34, s. 228
  • 2007, c. 29, s. 111
  • 2012, c. 31, s. 170
  • 2016, c. 7, s. 166
  • 2017, c. 33, s. 183
 
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