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Canadian Payments Act (R.S.C., 1985, c. C-21)

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Act current to 2022-07-25 and last amended on 2021-04-02. Previous Versions

Canadian Payments Act

R.S.C., 1985, c. C-21

An Act respecting the Canadian Payments Association and the regulation of systems and arrangements for the making of payments

Short Title

Marginal note:Short title

 This Act may be cited as the Canadian Payments Act.

  • R.S., 1985, c. C-21, s. 1
  • 2001, c. 9, s. 218

Interpretation

Marginal note:Definitions

  •  (1) In this Act,

    Association

    Association means the Canadian Payments Association established by section 3; (Association)

    authorized foreign bank

    authorized foreign bank means a foreign bank in respect of which an order under subsection 524(1) of the Bank Act has been made but does not include a foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of that Act; (banque étrangère autorisée)

    Board

    Board means the Board of Directors of the Association; (conseil)

    by-law

    by-law means a by-law of the Association; (règlement administratif)

    central cooperative credit society

    central cooperative credit society and central mean a cooperative credit society incorporated by or under an Act of the legislature of a province, one of whose principal purposes is to provide liquidity support to local cooperative credit societies, and

    • (a) whose membership consists wholly or primarily of local cooperative credit societies, or

    • (b) whose directors are wholly or primarily persons elected or appointed by local cooperative credit societies; (société coopérative de crédit centrale ou centrale)

    Chairman

    Chairman[Repealed, 2001, c. 9, s. 219]

    Chairperson

    Chairperson means the Chairperson of the Board referred to in section 15; (président du conseil)

    cooperative credit association

    cooperative credit association means an association to which the Cooperative Credit Associations Act applies; (association coopérative de crédit)

    Executive Committee

    Executive Committee[Repealed, 2014, c. 39, s. 334]

    federation of cooperative credit societies

    federation of cooperative credit societies or federation[Repealed, 2001, c. 9, s. 219]

    General Manager

    General Manager[Repealed, 2007, c. 6, s. 422]

    Inspector

    Inspector[Repealed, R.S., 1985, c. 18 (3rd Supp.), s. 33]

    life insurance company

    life insurance company means

    • (a) a life company within the meaning of subsection 2(1) of the Insurance Companies Act,

    • (b) a foreign life company within the meaning of section 571 of that Act, acting in respect of its insurance business in Canada, or

    • (c) a body corporate that carries on under a constating instrument issued under an Act of the legislature of a province a business substantially similar to the business of a life company referred to in paragraph (a); (société d’assurance-vie)

    loan company

    loan company means a corporation that accepts deposits transferable by order and that

    • (a) is a company to which the Trust and Loan Companies Act applies and that is not a trust company pursuant to subsection 57(2) of that Act, or

    • (b) carries on, under an Act of the legislature of a province or a constating instrument issued under provincial jurisdiction, a business substantially similar to the business of a company referred to in paragraph (a); (société de prêt)

    local cooperative credit society

    local cooperative credit society and local mean a cooperative credit society incorporated by or under an Act of the legislature of a province

    • (a) whose members consist substantially of individuals, and

    • (b) whose principal purpose is to receive deposits from, and make loans to, its members; (société coopérative de crédit locale)

    member

    member means any of those persons who are members of the Association pursuant to section 4; (membre)

    Minister

    Minister means the Minister of Finance; (ministre)

    money market mutual fund

    money market mutual fund means a fund

    • (a) the assets of which are fully or principally invested in short-term and highly liquid debt securities, and

    • (b) that satisfies conditions prescribed by regulation; (fonds mutuel en instruments du marché monétaire)

    payment item

    payment item means an item within a class of items prescribed by by-law; (instrument de paiement)

    President

    President means the President of the Association appointed under section 16; (président)

    qualified corporation

    qualified corporation means a body corporate

    • (a) that has issued shares to the public under a prospectus, filed in accordance with the laws of the province in which the shares were issued, having conditions attached to the shares requiring the body corporate to accept the surrender of any fully-paid shares, or fractions or portions of the shares,

      • (i) at the demand of their holder, and

      • (ii) at prices determined and payable in accordance with specified conditions,

    • (b) whose shares referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the shares, that is not less than 95% of the fair market value of all of the issued shares of the capital stock of the body corporate, and

    • (c) having assets that constitute a money market mutual fund; (société admissible)

    qualified trust

    qualified trust means an inter vivos trust

    • (a) in which the interest of its beneficiaries is described by reference to units of the trust that have been issued to the public under a prospectus, filed in accordance with the laws of the province in which the units were issued, having conditions attached to the units requiring the trustee to accept the surrender of any fully-paid units, or fractions or portions of the units,

      • (i) at the demand of their holder, and

      • (ii) at prices determined and payable in accordance with specified conditions,

    • (b) whose units referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the units, that is not less than 95% of the fair market value of all of the issued units of the trust, and

    • (c) whose assets constitute a money market mutual fund; (fiducie admissible)

    rule

    rule means a rule of the Association; (règle)

    securities dealer

    securities dealer means a body corporate that is registered or licensed under the laws of a province to trade in securities, as agent or for its own behalf; (courtier en valeurs mobilières)

    Superintendent

    Superintendent[Repealed, 2001, c. 9, s. 219]

    trust company

    trust company means a corporation that accepts deposits transferable by order and that

    • (a) is a company to which the Trust and Loan Companies Act applies and that is a trust company pursuant to subsection 57(2) of that Act, or

    • (b) carries on, under an Act of the legislature of a province or a constating instrument issued under provincial jurisdiction, a business substantially similar to the business of a company referred to in paragraph (a); (société de fiducie)

    trustee

    trustee, in respect of a qualified trust, means a trustee that is a body corporate; (fiduciaire)

    user

    user means

    • (a) in Part 1, a person who is a user of payment services but is not a member, and

    • (b) in Part 2, a person who is a user of services provided by a participant of a payment system but is not a participant in the system. (usager)

  • Marginal note:Societies and federations

    (2) For the purposes of Part 1, a local cooperative credit society, a cooperative credit association, a central cooperative credit society or a federation of cooperative credit societies is deemed not to be a loan company or a trust company.

  • Marginal note:Not statutory instrument

    (3) Rules, statements of principle and standards made by the Board and orders made under a by-law are not statutory instruments for the purposes of the Statutory Instruments Act.

  • R.S., 1985, c. C-21, s. 2
  • R.S., 1985, c. 18 (3rd Supp.), s. 33
  • 1991, c. 45, s. 546, c. 48, s. 488
  • 1999, c. 28, s. 110
  • 2001, c. 9, s. 219
  • 2007, c. 6, s. 422
  • 2014, c. 39, s. 334

Act Binding on Her Majesty

Marginal note:Her Majesty

  •  (1) This Act is binding on Her Majesty in right of Canada.

  • Marginal note:Her Majesty in right of a province

    (2) If Her Majesty in right of a province becomes a member of the Association, this Act is binding on Her Majesty in right of the province.

  • 2001, c. 9, s. 220

PART 1Canadian Payments Association

Establishment and Membership

Marginal note:Association established

  •  (1) A corporation is hereby established to be called the Canadian Payments Association.

  • Marginal note:Association not an agent of Her Majesty

    (2) The Association is not an agent of Her Majesty.

  • 1980-81-82-83, c. 40, s. 56

Marginal note:Members of Association

  •  (1) The Association shall consist of the following members:

    • (a) the Bank of Canada;

    • (b) every bank;

    • (c) every authorized foreign bank;

    • (c.1) every cooperative credit association, loan company or trust company that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act; and

    • (d) any other person who is entitled under this Part to be a member and who, on application to the Association for membership in the Association, establishes entitlement to be a member.

  • Marginal note:Entitled members

    (2) Each of the following persons is entitled to be a member of the Association if they meet the requirements set out in the regulations and the by-laws:

    • (a) a central, a trust company, a loan company and any other person, other than a local that is a member of a central or a cooperative credit association, that accepts deposits transferable by order;

    • (b) [Repealed, 2001, c. 9, s. 223]

    • (c) Her Majesty in right of a province or an agent or mandatary of Her Majesty in right of a province, if Her Majesty in right of a province or the agent or mandatary accepts deposits transferable by order;

    • (d) a life insurance company;

    • (e) a securities dealer;

    • (f) a cooperative credit association;

    • (g) the trustee of a qualified trust; and

    • (h) a qualified corporation, on behalf of its money market mutual fund.

  • Marginal note:Commencement of membership

    (3) Membership in the Association commences

    • (a) in the case of a bank and an authorized foreign bank, on the day on which an order is made under the Bank Act approving its commencement and carrying on of business; and

    • (b) in the case of a person referred to in paragraph (1)(d), on the day on which the person’s application for membership in the Association is approved by the Board.

  • Marginal note:Suspension of membership rights

    (4) A suspension, imposed in accordance with the by-laws, of any of a member’s membership rights is not effective unless the Association has, in advance, sent the Minister a notice of the suspension.

  • Marginal note:Termination of membership

    (5) A member, other than a member referred to in paragraphs (1)(a) to (c), ceases being a member of the Association if

    • (a) the member gives the Association notice of its intention to cease being a member at least ninety days prior to the effective date thereof or such longer notice as the by-laws may require; and

    • (b) the member satisfies its liabilities to the Association.

  • Marginal note:Termination of membership

    (6) A member, other than a member referred to in paragraphs (1)(a) to (c), ceases being a member of the Association three days after the day on which the Board adopts a resolution, by a majority of not less than two-thirds of the votes cast by directors voting in respect of the resolution, declaring that, in the opinion of the Board, the member does not meet the requirements set out in the regulations and the by-laws.

  • Marginal note:Effect of resolution

    (7) A member to which a resolution of the Board described in subsection (6) is applicable is not

    • (a) eligible to vote at any meeting of members held in the three days following the day on which the resolution is adopted;

    • (b) eligible, despite any other provision of this Part, for readmission to the Association as a member until a resolution is adopted by the Board, by a majority of not less than two-thirds of the votes cast by directors voting in respect of the resolution, declaring that, in the opinion of the Board, the member or former member concerned meets the requirements set out in the regulations and the by-laws; or

    • (c) relieved of the obligation to pay to the Association its liabilities to the Association on the day it ceases being a member.

  • R.S., 1985, c. C-21, s. 4
  • 1992, c. 1, s. 142
  • 1999, c. 28, s. 111
  • 2001, c. 9, s. 223
  • 2007, c. 6, s. 423
  • 2009, c. 2, s. 256
  • 2014, c. 39, s. 335
 
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