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

Version of section 32 from 2006-03-22 to 2010-02-28:

  •  (1) The Bank of Canada may revalue the collateral pledged by a participant to the Bank of Canada for LVTS purposes at any time during an LVTS cycle.

  • (2) If the revaluation results in a decrease in the value assigned by the Bank of Canada to the collateral such that the value of the collateral is less than the sum of the participant’s maximum ASO and the absolute value of its tranche 1 net debit cap, the Bank of Canada shall notify the General Manager who in turn shall notify the participant of that fact.

  • (3) The participant referred to in subsection (2) shall, within a time limit specified by the Bank of Canada, pledge additional collateral as required to raise the amount of collateral to an amount at least equal to the sum of the participant’s maximum ASO and the absolute value of its tranche 1 net debit cap.

  • (4) If the participant does not pledge the required additional collateral referred to in subsection (3), the participant’s tranche 1 net debit cap shall, despite subsection 21(2), be reduced by an amount equal to the amount by which the new value assigned by the Bank of Canada to the collateral is less than the sum of the participant’s maximum ASO and the absolute value of its tranche 1 net debit cap.


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