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

Marginal note:Default of direct clearer or group clearer

• 53 (1) A direct clearer or group clearer is in default for the purposes of this By-law if

  • (a) its settlement account at the Bank of Canada has a shortfall that would preclude settlement; and

  • (b) it does not obtain an advance from the Bank of Canada sufficient for that settlement.

• Marginal note:Notice

  (2) The Bank of Canada shall immediately notify the President who shall in turn notify all other direct clearers and group clearers of the default.