Domestic Bonds of Canada Regulations (C.R.C., c. 698)

34. Where it appears to the Bank that a cheque issued in payment of interest on or principal of a bond or otherwise in connection with a bond has been destroyed, lost or stolen,

• (a) after it has been mailed but before the payee received it, the Bank may issue a duplicate cheque in place of it if the payee gives to the Bank an undertaking to indemnify in accordance with section 37; or

• (b) after the payee received it, the Bank may issue a duplicate cheque in place of it if the payee or a bank or other institution that has negotiated it gives to the Bank an undertaking to indemnify in accordance with section 37 or a bond of indemnity in accordance with section 38, as the Bank may require.

35. Where it appears to the Bank that an interim certificate has been damaged, defaced, mutilated, destroyed, lost or stolen, the Bank may issue a bond on like conditions to those in which, if the certificate were a coupon bond payable to bearer, the Bank might under these Regulations issue a new bond.

36. A new bond issued in place of a damaged, defaced, mutilated, destroyed, lost or stolen bond or interim certificate as provided for in these Regulations shall be of the same issue and aggregate amount and of like tenor as the one that it is issued to replace.

37. An undertaking to indemnify given to the Bank under these Regulations shall be executed by the owner or payee of the bond, coupon, cheque or certificate that has been damaged, defaced, mutilated, destroyed, lost or stolen, or by any other person acceptable to the Bank and shall undertake to indemnify the Bank and the Government of Canada for any loss resulting from the issue of any new bond or cheque or the making of any payment in respect thereof and shall be in a form satisfactory to the Bank.

• 38. (1) Subject to subsection (2), a bond of indemnity given to the Bank pursuant to these Regulations shall

  • (a) be executed by

    • (i) a guarantee company approved by the Bank,

    • (ii) a financial institution acceptable to the Bank, or

    • (iii) a government of a province;

  • (b) undertake to indemnify the Bank and the Government of Canada for any loss resulting from the transfer or redemption of any bond, the issue of any new bond or cheque or the making of any payment in respect of the transfer or redemption of any bond or in respect of any destroyed, lost or stolen bond, coupon, cheque or interim certificate in an amount deemed sufficient by the Bank; and

  • (c) be in a form satisfactory to the Bank.

• (2) The Bank, in lieu of obtaining a bond of indemnity in accordance with subsection (1), may

  • (a) with respect to the alleged destruction, loss or theft of a bond of which a person is registered as owner as to principal and interest and in respect of which no instrument of transfer to bearer has been executed, or

  • (b) with respect to the alleged destruction, loss or theft of a cheque after the payee received it,

  accept a bond of indemnity in such amount, in such form and executed by such sureties as the Bank considers advisable.