Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System

Marginal note:Required approval

• 29 (1) An appointment referred to in section 28 is subject to the approval of the Board.

• Marginal note:Criteria for approval

  (2) The Board may approve the appointment if

  • (a) the appointed member complies with the requirements set out in paragraphs 26(a), (b) and (d);

  • (b) the group clearer and the other entities belonging to the group have an aggregate payment items volume of no less than 0.5% of the total national volume of payment items giving rise to clearing through the ACSS, as determined in accordance with the rules, or any lower percentage of that volume that may be set out in the rules; and

  • (c) in the case of a group referred to in paragraph 28(1)(b), the appointed member enters into contractual commitments with each of the entities belonging to the group that are necessary to ensure the ability of the member to satisfy its liability as group clearer.