Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada


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

Full Document:  

Act current to 2021-06-03 and last amended on 2021-04-02. Previous Versions

PART 1Canadian Payments Association (continued)

Fiscal Year

Marginal note:Fiscal year

 The fiscal year of the Association is the calendar year.

  • R.S., 1985, c. C-21, s. 27
  • 2001, c. 9, s. 239

Electronic Meetings

Marginal note:Electronic meetings

  •  (1) Subject to the by-laws, a meeting of the Board or of a committee of the Board, a meeting of the members or a meeting of the Stakeholder Advisory Council or Member Advisory Council may be held by means of any telephonic, electronic or other communications facilities that permit all persons participating in the meeting to communicate adequately with each other during the meeting.

  • Marginal note:Deemed present

    (2) A person participating in a meeting by any means referred to in subsection (1) is deemed for the purposes of this Part to be present at the meeting.

  • (3) [Repealed, 2001, c. 9, s. 239]

  • R.S., 1985, c. C-21, s. 28
  • R.S., 1985, c. 18 (3rd Supp.), s. 34
  • 2001, c. 9, s. 239
  • 2014, c. 39, s. 354

Rights and Duties of Members

Marginal note:Members

 Members may present payment items and shall accept and arrange for settlement of payment items in accordance with the by-laws and the rules.

  • 1980-81-82-83, c. 40, s. 83

 [Repealed, 2001, c. 9, s. 240]


Marginal note:Definition of priority payment instrument

  •  (1) In this section, priority payment instrument means a money order, bank draft or similar instrument issued, directly or indirectly, by a member other than a money order, bank draft or similar instrument issued by a member to another member for the purpose of effecting a payment between those members.

  • Marginal note:Priority on insolvency

    (2) Despite any other Act of Parliament but subject to subsection (5) and to the rights of secured creditors with respect to any security interest in or charge on the property of a member, if a bankruptcy order is made against a member or a winding-up order is made in respect of a member (hereinafter in this section referred to as an “insolvent member”) the items set out in paragraphs (a) and (b) shall be paid from the estate of the insolvent member, in priority to any other claim against the estate of the insolvent member, in the following order:

    • (a) unpaid cheques or orders that had been drawn on the insolvent member and certified by such member prior to the making of the bankruptcy order or winding-up order; and

    • (b) unpaid priority payment instruments drawn on the insolvent member and issued prior to the making of the bankruptcy order or winding-up order.

  • (3) [Repealed, 1996, c. 6, s. 163]

  • Marginal note:Time limit

    (4) Despite subsection (2), no payment of an unpaid cheque, order or priority payment instrument shall be made under that subsection in priority to any other claim against the estate of an insolvent member unless a request for such payment is made within sixty days after the making of the bankruptcy order or winding-up order.

  • Marginal note:Preferences

    (5) Subsection (2) shall not be construed or applied to permit an unpaid cheque, an order or a priority payment instrument to be paid in priority to any other claim

    • (a) where the cheque or order had been certified by the insolvent member, or

    • (b) where the priority payment instrument had been issued, directly or indirectly, by the insolvent member,

    with a view to giving the drawee of the cheque, order or unpaid priority instrument a preference over the other creditors of the insolvent member.

  • Marginal note:Definition of preference

    (6) In subsection (5), preference means a preference within the meaning of the Bankruptcy and Insolvency Act or the Winding-up and Restructuring Act.

  • Marginal note:Definition of member

    (7) For purposes of this section, member includes a local that is a member of a central that is a member of the Association.

  • R.S., 1985, c. C-21, s. 31
  • 1992, c. 27, s. 90
  • 1996, c. 6, ss. 163, 167
  • 2004, c. 25, s. 192

Marginal note:Insolvency

  •  (1) No law relating to the insolvency of any body corporate, except Part I.1 of the Payment Clearing and Settlement Act, applies to the Association.

  • Marginal note:Winding-up

    (2) No law relating to the winding-up of any body corporate applies to the Association and in no case shall its affairs be wound up unless Parliament so provides.

 [Repealed, 2001, c. 9, s. 241]

Application of Other Acts

Marginal note:Application of Canada Business Corporations Act

  • R.S., 1985, c. C-21, s. 34
  • 1994, c. 24, s. 34(F)
  • 2001, c. 9, s. 242
  • 2009, c. 23, ss. 320, 351
  • 2014, c. 39, s. 355


Marginal note:Regulations by Governor in Council

  •  (1) The Governor in Council may make regulations

    • (a) providing for the mandate of committees established under section 20 or 21, eligibility criteria for membership in those committees and their number of members;

    • (b) respecting the election of directors of the Association, including the eligibility of persons to be elected as directors, and defining independent for the purposes of paragraph 8(1)(d);

    • (c) prescribing the form and content of the Association’s corporate plans and annual reports, and the time and manner in which they must be prepared or submitted;

    • (d) establishing requirements for membership in the Association to be met by persons or classes of persons;

    • (e) respecting the conditions that a money market mutual fund must satisfy; and

    • (f) generally, for carrying out the purposes and provisions of this Part.

  • (2) [Repealed, 2014, c. 39, s. 356]

  • R.S., 1985, c. C-21, s. 35
  • 2001, c. 9, s. 243
  • 2014, c. 39, s. 356

PART 2Designated Payment Systems


Marginal note:Definitions

 The definitions in this section apply in this Part.

designated payment system

designated payment system means a payment system designated under subsection 37(1). (système de paiement désigné)


participant means a party to an arrangement in respect of a payment system. (participant)

payment system

payment system means a system or arrangement for the exchange of messages effecting, ordering, enabling or facilitating the making of payments or transfers of value. (système de paiement)


rule means a rule, by whatever name called, that governs a designated payment system. It includes an amendment to or a repeal of a rule. (règles)

  • 2001, c. 9, s. 244


Marginal note:Application

 This Part does not apply to the Association.

  • 2001, c. 9, s. 244
Date modified: