Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System (SOR/2003-346)

Regulations are current to 2018-10-24 and last amended on 2018-02-07. Previous Versions

PART 2Automated Clearing Settlement System (continued)

DIVISION 6Default (continued)

Default of Direct Clearer or Group Clearer (continued)

Marginal note:Calculation of additional contribution

  •  (1) In the event that the default contributions made under section 57 are not sufficient to enable the Bank of Canada to effect settlement, the Association shall calculate, in accordance with the rules, an additional contribution to be made by direct clearers and group clearers that are not in default and by the Bank of Canada to effect settlement.

  • Marginal note:Additional contribution

    (2) The direct clearers and group clearers that are not in default and the Bank of Canada shall make the additional contribution, in the amount determined under subsection (1), to the account of the direct clearer or group clearer in default within the time and in the manner specified in the rules.

  • SOR/2018-16, s. 6.

Marginal note:Reimbursement with interest

 A direct clearer or group clearer shall reimburse each direct clearer, group clearer, or the Bank of Canada for any amount received as a contribution under subsection 57(2) or 57.01(2), plus interest at the rate specified in the rules, and those amounts constitute a debt that survives irrespective of the status of the defaulting direct clearer or group clearer.

  • SOR/2018-16, s. 6.

Marginal note:Prohibition — entries into ACSS

 A direct clearer or group clearer that is in default shall not make entries into the ACSS unless the direct clearer or group clearer or its assets are under the control or ownership of a federal or provincial regulator or supervisory body or any agent of Her Majesty in right of Canada or agent or mandatary of Her Majesty in right of a province.

  • SOR/2016-284, s. 1.

Default of Indirect Clearer

Marginal note:Default of indirect clearer

 An indirect clearer is in default in respect of its clearing agent for the purposes of this By-law if

  • (a) the settlement account of the indirect clearer with its clearing agent has a shortfall that would preclude settlement; and

  • (b) the indirect clearer does not obtain an advance sufficient for settlement.

 [Repealed, SOR/2016-284, s. 2]

 [Repealed, SOR/2012-161, s. 13]

 [Repealed, SOR/2012-161, s. 13]

 [Repealed, SOR/2012-161, s. 13]

Repeal

Marginal note:Repeal

 [Repeal]

Coming into Force

Marginal note:Coming into force

 This By-law comes into force on the day on which it is registered.

 
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