Canadian Payments Association By-law No. 10 — RTR (SOR/2026-133)

Marginal note:Payment items

27 For the purpose of the definition payment item in subsection 2(1) of the Act, the classes of payment items are the following:

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  (a) RTR payment messages;

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  (b) settlement instructions generated by RTR Clearing and Settlement for participant-to-participant transfers; and

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  (c) settlement instructions submitted to RTR Clearing and Settlement by a third-party exchange for payment messages exchanged in the exchange.

Marginal note:Settlement accounts

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  28 (1) The Association must operate, on behalf of the Bank, one settlement account in RTR Clearing and Settlement for each direct settlement participant.

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  Marginal note:Procedures

  (2) Each settlement account must be operated in accordance with the procedures set out in the Rules.

Marginal note:Sending RTR payment messages

29 A participant may send RTR payment messages only in the form and manner set out in the Rules.

Marginal note:Irrevocable

30 An RTR payment message cannot be amended or revoked after it is sent to the RTR Exchange.

Marginal note:Acceptance by RTR Exchange

31 The RTR Exchange must accept an RTR payment message if

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  (a) the message is sent to the exchange in accordance with the Rules;

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  (b) the message is not a duplicate of any other message and does not contain an error specified in the Rules;

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  (c) the amount necessary to settle the RTR payment obligation set out in the message does not exceed the “RTR Exchange value limit” as defined in the Rules; and

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  (d) neither the sending participant nor the receiving participant is subject to a suspension under any of sections 9 to 11 or to a direction made under paragraph 48(b).

Marginal note:Actions required after acceptance

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  32 (1) Immediately after accepting an RTR payment message, the RTR Exchange must

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    (a) on the basis of the RTR payment message, generate settlement instructions and submit them to RTR Clearing and Settlement; and

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    (b) send the RTR payment message to the receiving participant.

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  Marginal note:Ability to receive RTR payment message

  (2) Except in the circumstances specified in the Rules, a participant must always be able to receive a RTR payment message referred to in paragraph (1)(b).

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  Marginal note:Notice to RTR Exchange

  (3) Immediately after receiving the RTR payment message referred to in paragraph (1)(b), the receiving participant must, in accordance with the Rules, send the RTR Exchange a notice indicating whether or not it accepts the payment set out in the message.

Marginal note:Irrevocable

33 Settlement instructions are irrevocable once they are generated by or submitted to RTR Clearing and Settlement.

Marginal note:Acceptance for clearing and settlement

34 Settlement instructions that are submitted to RTR Clearing and Settlement by a payment exchange must be accepted for clearing and settlement if

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  (a) the instructions are submitted in accordance with the Rules;

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  (b) the instructions are not a duplicate of any other instructions and do not contain an error specified in the Rules;

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  (c) the amount necessary to clear and settle the RTR payment obligation set out in the instructions does not exceed the “RTR clearing and settlement value limit” as defined in the Rules;

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  (d) the amount of funds available in the sending participant’s settlement account to settle RTR payment obligations is not less than the amount necessary to clear and settle the RTR payment obligation set out in the instructions;

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  (e) in the case where the sending participant is an indirect settlement participant, clearing and settlement of the RTR payment obligation set out in the instructions would not cause the participant to fall below its “net debit cap” as defined in the Rules; and

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  (f) neither the sending participant nor the receiving participant or their respective settlement agents, if any, are subject to a suspension under any of sections 9 to 11, 17 or 18 or to a direction made under paragraph 48(b).

Marginal note:Reservation of funds

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  35 (1) Immediately after RTR Clearing and Settlement accepts settlement instructions for clearing and settlement, the Association must reserve, in the sending participant’s settlement account, an amount of funds that is equal to the amount necessary to clear and settle the RTR payment obligation if the settlement instructions contain an instruction to reserve the funds.

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  Marginal note:Entries

  (2) For the purpose of subsection (1), the amount is reserved in the sending participant’s settlement account when the Association makes the entries to the account required by the Rules.

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  Marginal note:Use of reserved funds

  (3) Subject to subsection 40(2), funds that are reserved under subsection (1) must only be used to settle the RTR payment obligation, regardless of any claim or interest in — or, in Quebec, any right to — those funds that any person other than the sending participant may have.

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  Marginal note:Notice to payment exchange

  (4) RTR Clearing and Settlement must send to the payment exchange that submitted the settlement instructions a notice indicating whether or not the funds have been reserved.

Marginal note:Payment outcome report

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  36 (1) The RTR Exchange must, in accordance with the Rules, send the sending participant and the receiving participant a payment outcome report that indicates whether or not the RTR payment obligation will be settled.

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  Marginal note:Positive payment outcome report

  (2) If the following conditions are met, the payment outcome report must indicate that the RTR payment obligation will be settled:

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    (a) the RTR Exchange has received, within the time limit set out in the Rules, a notice under subsection 32(3) indicating that the receiving participant will accept the payment; and

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    (b) the RTR Exchange has, within the time limit set out in the Rules, received a notice under subsection 35(4) indicating that the funds have been reserved.

Marginal note:Direction to implement

37 The RTR Exchange must submit a direction to RTR Clearing and Settlement to implement the settlement instructions if the conditions referred to in subsection 36(2) are met.

Marginal note:Direction

38 A direct settlement participant who seeks to effect a participant-to-participant transfer must submit, in accordance with the Rules, a direction to RTR Clearing and Settlement to effect the transfer.

Marginal note:Settlement instructions

39 RTR Clearing and Settlement must generate the settlement instructions for the participant-to-participant transfer directed under section 38 if the direction is submitted in accordance with the Rules.

Marginal note:Settlement required

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  40 (1) The Association must settle an RTR payment obligation if the associated settlement instructions were

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    (a) generated by RTR Clearing and Settlement for a participant-to-participant transfer and

    • (i) the amount of funds available in the sending participant’s settlement account to settle RTR payment obligations is not less than the amount necessary to clear and settle the RTR payment obligation, and

    • (ii) neither the sending participant nor the receiving participant is subject to a suspension under any of sections 9 to 11 or a to direction made under paragraph 48(b);

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    (b) generated by the RTR Exchange and a direction to implement them was submitted to RTR Clearing and Settlement in accordance with section 37; or

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    (c) generated by a third-party exchange and

    • (i) the instructions were accepted for clearing and settlement under section 34, and

    • (ii) if the instructions contained an instruction to reserve an amount of funds, the funds were reserved under section 35 and a direction to implement the instructions was submitted to RTR Clearing and Settlement by the third-party exchange.

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  Marginal note:Release of reserved funds

  (2) If the Association is not required to settle the RTR payment obligation under subsection (1), it must release all funds that have been reserved in respect of that payment obligation under section 35.

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  Marginal note:Entries

  (3) For the purpose of subsection (2), the amount is released in the sending participant’s settlement account when the Association makes the entries to the account required by the Rules.

Marginal note:Settlement effected

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  41 (1) For the purpose of this By-law, an RTR payment obligation is settled in RTR Clearing and Settlement when the Association

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    (a) transfers an amount equal to the amount of the RTR payment obligation from the sending participant’s settlement account to the receiving participant’s settlement account; and

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

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  Marginal note:Final and irrevocable

  (2) A transfer that is made in accordance with subsection (1) is final and irrevocable.

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  Marginal note:Notice of settlement

  (3) If the settlement instructions associated with the RTR payment obligation were generated by the RTR exchange, the Association must, immediately after the obligation is settled, send the sending participant and the receiving participant a notice of settlement.

Marginal note:Scope

42 Sections 43 to 47 apply in respect of the payment of an amount to a payee as a result of the settlement of a RTR payment obligation that was set out in an RTR payment message.

Marginal note:Payment

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  43 (1) Subject to section 45, the receiving participant must, within the time limit set out in the Rules, make the amount of the payment available to the payee.

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  Marginal note:Making payment available to payee

  (2) The amount of a payment is made available to a payee when the earliest of the following actions is taken:

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    (a) the receiving participant credits the amount to an account of the payee;

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    (b) the receiving participant lawfully applies the amount against a debt of the payee; and

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    (c) the receiving participant otherwise makes the amount of the payment accessible to the payee.

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  Marginal note:Final and irrevocable

  (3) Except in the circumstances specified in the Rules, a payment made under subsection (1) is final and irrevocable.

Marginal note:Payee identifier

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  44 (1) A receiving participant who receives a payment message in the RTR Exchange that identifies the payee both by name and an account number or other identifier specified in the Rules may rely on that account number or other identifier for the purpose of making the amount of the payment available to the payee.

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  Marginal note:Reliance on payee identifier

  (2) A receiving participant who relies on an account number or other identifier for the purpose of making the amount of the payment available to the payee is deemed to have complied with section 43.