Payment Clearing and Settlement Act

Marginal note:Termination

• 13 (1) Notwithstanding anything in any law relating to bankruptcy or insolvency or any order of a court made pursuant to an administration of a reorganization, arrangement or receivership involving insolvency, where a financial institution or the Bank is a party to a netting agreement, the financial institution or the Bank may terminate the agreement and determine a net termination value or net settlement amount in accordance with the provisions of the agreement and the party entitled to the net termination value or settlement amount is to be a creditor of the party owing the net termination value or net settlement amount for that value or amount.

• Marginal note:Interpretation

  (2) In subsection (1),

  financial institution

  institution financière

  financial institution means

  • (a) a financial institution within the meaning of section 2 of the Trust and Loan Companies Act,

  • (b) such other entity or entity within a class of entities engaged primarily in the business of providing financial services as may be designated by order of the Governor in Council to be a financial institution for the purposes of this section,

  • (c) a trustee, manager or administrator of a pension fund maintained to provide benefits under a pension plan registered under the Income Tax Act,

  • (d) the Canada Pension Plan Investment Board, or

  • (e) the Public Sector Pension Investment Board; (institution financière)

  net termination value

  reliquat net

  net termination value means the net amount obtained after setting off or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions; (reliquat net)

  netting agreement

  accord de compensation

  netting agreement means an agreement between two or more financial institutions or between the Bank and one or more financial institutions that is

  • (a) an eligible financial contract within the meaning of section 22.1 of the Winding-up and Restructuring Act, or

  • (b) an agreement that provides for the netting or set-off of present or future obligations to make payments against the present or future rights to receive payments. (accord de compensation)