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By-law No. 7 Respecting the Large Value Transfer System (SOR/2001-281)

Regulations are current to 2020-12-28 and last amended on 2020-07-16. Previous Versions

By-law No. 7 Respecting the Large Value Transfer System

SOR/2001-281

CANADIAN PAYMENTS ACT

Registration 2001-08-01

By-law No. 7 Respecting the Large Value Transfer System

P.C. 2001-1358  2001-08-01

The Board of Directors of the Canadian Payments Association, pursuant to subsection 18(1) of the Canadian Payments Association Act, hereby makes the annexed By-law No. 7 Respecting the Large Value Transfer System.

Ottawa, June 29, 2001

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 18(2) of the Canadian Payments Association Act, hereby approves the annexed By-law No. 7 Respecting the Large Value Transfer System made by the Canadian Payments Association.

Interpretation and Application

Definitions

 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)

approved payment message

approved payment message means a payment message that has passed all applicable risk control tests set out in this by-law. (message de paiement approuvé)

bilateral credit limit

bilateral credit limit means the aggregate value of tranche 2 payment messages that one participant has indicated, at any time during the LVTS cycle, it is willing to accept from another participant in excess of the aggregate value of tranche 2 payment messages sent to that other participant by the first participant. (limite de crédit bilatérale)

branch of account

branch of account means, in relation to each payment message, the branch or office of a financial institution where the amount of the payment message is to be made available to the payee. (succursale du compte)

business day

business day means a day designated in the rules that LVTS is operational. (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)

discretionary advance

discretionary advance means an advance made by the Bank of Canada to a participant, other than an advance that the Bank of Canada is obligated to provide pursuant to sections 57, 58 and 60. (avance discrétionnaire)

General Manager

General Manager[Repealed, SOR/2010-43, s. 1]

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)

LVTS cycle

LVTS cycle means the period of time beginning with the initialization of the LVTS on a business day and ending with the next settlement at the Bank of Canada of the multilateral net positions of all participants. (cycle du STPGV)

maximum ASO

maximum ASO means, for each participant, the largest amount, calculated in accordance with section 28, that the participant could be required to pay in any single LVTS cycle by reason of its additional settlement obligations. (OSR maximale)

multilateral net position

multilateral net 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 during that LVTS cycle

from

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

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

from

  • (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

from

  • (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)

payee

payee means, in relation to a payment message received by a receiving participant, the person, including the receiving participant or another financial institution, to whom the amount of the payment message is to be paid or credited, whether or not that person is the ultimate beneficiary of that amount. (bénéficiaire)

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 message

payment message means an electronic message sent through the LVTS, in the format set out in the rules, from one participant to another instructing the receiving participant to pay a fixed amount of money to a payee. (message de 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)

President

President means the President of the Association or, in the absence, incapacity or incompetence of the President, any person authorized by the Board to perform the duties of the President. (président)

receiving participant

receiving participant means a participant that receives a payment message from another participant. (participant destinataire)

rules

rules means the rules made by the Board respecting this by-law. (règles)

sending participant

sending participant means a participant that sends a payment message to another participant. (participant expéditeur)

settlement

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

settlement account

settlement account means an account on the books of the Bank of Canada through which settlement of a participant’s multilateral net position is effected. (compte de règlement)

system-wide percentage

system-wide percentage means the percentage, of not less than 0 and not more than 100 per cent, set out in the rules, that is used for calculating a participant’s maximum ASO and tranche 2 net debit cap. (pourcentage global)

tranche 1 net debit cap

tranche 1 net debit cap means, for each participant, the maximum negative amount, calculated in accordance with section 19, of its multilateral net tranche 1 position, except that the tranche 1 net debit cap for the Bank of Canada is unlimited. (limite de débit net de tranche 1)

tranche 1 payment message

tranche 1 payment message means a payment message sent by a participant that is designated by that participant to be subject to its tranche 1 net debit cap. (message de paiement de tranche 1)

tranche 2 net debit cap

tranche 2 net debit cap means, for each participant, the maximum negative amount, calculated in accordance with section 23, of its multilateral net tranche 2 position. (limite de débit net de tranche 2)

tranche 2 payment message

tranche 2 payment message means a payment message sent by a participant that is designated by the participant to be subject to its tranche 2 net debit cap and to the bilateral credit limit established for the sending participant by the receiving participant. (message de paiement de tranche 2)

  • SOR/2010-43, s. 1
 
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