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

44 (1) Despite the requirements of section 43,

• (a) if, in the receiving participant’s relationship with the payee at the time the funds are to be made available, action is usually taken by the branch of account in order for the funds to be made available to the payee and either the branch of account is closed on the day the payment message is received by the participant or the payment message is received by the participant within an amount of time, as may be set out in the rules, prior to the close of business of the branch of account for the business day, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but in any event not later than the beginning of the next day that the branch of account is opened for the purpose of making such funds available or as soon after that time as is reasonably practicable;

• (b) if the payment message has been received by the receiving participant after such time as may be set out in the rules, prior to the end of the LVTS cycle, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but in any event not later than the beginning of the next business day; or

• (c) if the receiving participant, having exercised such standard of care in the operation of its systems as is reasonable in the circumstances and having employed such alternative operations and procedures to make the amount of the payment message available as are reasonable in the circumstances, cannot comply with the obligation to make the amount of the payment message available as set out in section 43 due to a technical malfunction beyond the reasonable control of the participant or other event beyond the reasonable control of the participant that directly impairs the continued normal functioning of the receiving participant’s operating systems and procedures, the receiving participant may make the amount of the payment message finally and irrevocably available to the payee after the end of the LVTS cycle but as soon as practicable after the restoration of the normal functioning of the receiving participant’s operating systems and procedures and in any event shall make the amount of the payment message available not later than the end of the next business day following the day the restoration is completed.

(2) For greater certainty, under no circumstances does the failure or default of any participant constitute a reason for a participant not having to comply with its obligations set out in section 43.