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

56 (1) A participant is in default for the purposes of the LVTS if, immediately on demand by the Bank of Canada or within such time period as may be specified by the Bank of Canada, it fails, for any reason whatsoever, to obtain a discretionary advance from the Bank of Canada to enable it to settle its negative multilateral net position.

(2) The Bank of Canada shall notify the General Manager of any participant in default and the General Manager shall notify all participants of any such default.

(3) On the default of any participant, sections 57, 58 and 60 apply to ensure that settlement occurs.