Canadian Payments Act

Marginal note:Members of Association

• 4 (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 to a third party;

  • (b) [Repealed, 2001, c. 9, s. 223]

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

  • (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.