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Canadian Payments Association By-law No. 9 — Lynx (SOR/2021-182)

Regulations are current to 2022-06-20 and last amended on 2022-06-01. Previous Versions

PART 3Lynx Operations (continued)

Payments to Payees (continued)

Marginal note:Payee identifier

  •  (1) A receiving participant who receives a payment message that identifies the payee both by name and an account number or other identifier specified in the Rules is not required to detect any inconsistency between them and may, for the purpose of making the amount of the payment available to the payee, rely on that account number or other identifier.

  • Marginal note:Reliance on payee identifier

    (2) A receiving participant who relies on an account number or other identifier under subsection (1) is deemed to have complied with section 36 even if that reliance results in the amount of the payment being made available to a person other than the payee identified by name in the payment message.

Marginal note:Obligations to payee

 The obligations of a receiving participant under any of sections 36 to 40 are to the payee and no obligation is owed by the receiving participant to the sending participant, the payor or any other person solely because of any of those sections.

Marginal note:Requirements not limited

 The requirements set out in sections 36 to 41 must not be limited by the Rules or any agreement.

Repayment of Intraday Loan

Marginal note:Consolidation of balances

  •  (1) Before the beginning of the finalization window, the Association must, for each participant, consolidate into the participant’s Lynx account for the real-time settlement mechanism the balances in all of the participant’s other Lynx accounts.

  • Marginal note:Transfers and entries

    (2) The Association must

    • (a) make the necessary transfers to carry out the consolidation referred to in subsection (1); and

    • (b) make the corresponding entries to the accounts referred to in subsection (1) in accordance with the procedures set out in the Rules.

Marginal note:Repayment

  •  (1) If the balance in a participant’s intraday loan account is greater than zero when the finalization window begins, the Association must

    • (a) transfer, from the participant’s Lynx account for the real-time settlement mechanism to the participant’s intraday loan account, the lesser of

      • (i) an amount that is equal to the balance in the participant’s intraday loan account, and

      • (ii) the balance in the participant’s Lynx account for the real time settlement mechanism; and

    • (b) make the corresponding entries to those accounts in accordance with the procedures set out the Rules.

  • Marginal note:Balances provided

    (2) After making any transfer required under subsection (1), the Association must provide the Bank with the balance in the participant’s Lynx account for the real-time settlement mechanism and the participant’s intraday loan account.

  • Marginal note:Transfer to Bank’s Lynx account

    (3) The Association must transfer the amount of the balances consolidated under subsection 43(1), less any amount transferred under subsection (1), to the Bank’s Lynx account for the real-time settlement mechanism and make the corresponding entries to those accounts in accordance with the procedures set out in the Rules.

  • Marginal note:Rights and liabilities

    (4) For greater certainty, the respective rights and liabilities of the Bank and a participant in respect of the amount transferred to the Bank under subsection (3) are governed in accordance with the terms of the agreements between them.

Overnight Advances

Marginal note:Advance by Bank

  •  (1) If the balance in a participant’s intraday loan account remains greater than zero after a transfer referred to in paragraph 44(1)(a) has been made, the Bank must make an overnight advance to the participant in an amount equal to the outstanding balance of the intraday loan.

  • Marginal note:Transfer and entries

    (2) The Association must

    • (a) transfer the amount of the overnight advance from the Bank’s Lynx account for the real-time settlement mechanism to the participant’s Lynx account for that settlement mechanism;

    • (b) transfer the amount transferred under paragraph (a) to the participant’s intraday loan account; and

    • (c) make the corresponding entries to those accounts in accordance with the procedures set out in the Rules.

  • Marginal note:Rights and liabilities

    (3) For greater certainty, the respective rights and liabilities of the Bank and a participant in respect of an overnight advance are governed in accordance with the terms of the agreements between them.

Marginal note:Intraday loan repaid

 A participant’s intraday loan is repaid when the balance of in its intraday loan account is reduced to zero by means of a transfer referred to in paragraph 44(1)(a) or subsection 45(2).

Marginal note:Application of sections 36 to 46

  •  (1) Subject to subsection (2), sections 36 to 46 apply in respect of a participant who is subject to a suspension or revocation under this By-law.

  • Marginal note:Payment to payee

    (2) A participant who is subject to a suspension or revocation under this By-law is required to make the amount of a payment available to a payee only if the associated Lynx payment obligation is settled through Lynx before the suspension or revocation, as the case may be.

End of Payments Processing Cycle

Marginal note:End of cycle

 The payments processing cycle ends when the Association has made all transfers and entries required under section 44 and subsection 45(2).

Emergencies

Marginal note:Emergency condition

 If communications between Lynx and a participant are interrupted, the ability of Lynx to receive, send or otherwise process payment messages or to settle Lynx payment obligations is impaired, the safe and efficient operation of Lynx is placed into question or any other emergency affects its operations, the President, with the prior agreement of the Bank and in accordance with the procedures set out in the Rules, may

  • (a) direct that the Lynx operating schedule, or the conduct of any event in the schedule, be changed;

  • (b) direct a participant not to send payment messages for a specified period of time;

  • (c) direct that any day is not a business day; or

  • (d) direct the Association or a participant to take any other action necessary to ensure

    • (i) the safe and efficient operation of Lynx, or

    • (ii) the continued processing of payment messages or settlement of Lynx payment obligations.

PART 4Consequential Amendments, Repeal and Coming into Force

Consequential Amendments

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

 [Amendments]

 [Amendments]

 [Amendments]

 [Amendments]

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

 [Amendments]

Canadian Payments Association By-law No. 2 — Finance

 [Amendments]

Canadian Payments Association By-law No. 1 — General

 [Amendments]

Repeal

 [Amendments]

Coming into Force

Marginal note:August 28, 2021

  •  (1) This By-law, other than subsections 54(2), 55(2) and (3) and 56(2) and (3) and section 57, comes into force on August 28, 2021.

  • Marginal note:June 1, 2022

    (2) Subsections 54(2), 55(2) and (3) and 56(2) and (3) and section 57 come into force on June 1, 2022.

 
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