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

Regulations are current to 2023-01-11

Domestic Bonds of Canada Regulations

C.R.C., c. 698

FINANCIAL ADMINISTRATION ACT

Regulations Respecting Domestic Bonds of the Government of Canada

Short Title

 These Regulations may be cited as the Domestic Bonds of Canada Regulations.

Interpretation

 In these Regulations,

Bank

Bank means the Bank of Canada; (Banque)

bond

bond has the same meaning as security in the Financial Administration Act; (obligation)

registered owner

registered owner

  • (a) of a bond registered as to principal, means a person whose name has been entered by the Bank in the register as the person to whom the principal is payable, and

  • (b) of a bond registered as to principal and interest, means the person whose name has been entered by the Bank in the register as the person to whom the principal and interest are payable. (titulaire)

Application

 These Regulations apply in respect of all bonds except insofar as they are inconsistent with the terms of the bonds.

PART IRegistration

Registrar

  •  (1) The Bank shall maintain a register of bonds in accordance with these Regulations.

  • (2) The Bank shall, in accordance with these Regulations, register bonds, discharge the registration of bonds and give effect to transfers of bonds as may be required from time to time and may, subject to the terms upon which the bonds are issued, issue such bonds as may be required for these purposes or to give effect to the terms of outstanding bonds or these Regulations.

  • (3) Any duty, power or discretion imposed or conferred upon the Deputy Minister of Finance by the terms of bonds, which was imposed or conferred upon the Bank of Canada by Order in Council P.C. 5938 dated October 25, 1940, continues to be imposed and conferred upon the Bank and anything done by the Bank as registrar of bonds in accordance with these Regulations or any other regulations or laws applicable thereto continues to be and is as valid and effectual for all purposes as if done by the Deputy Minister of Finance.

  • (4) The Bank may authorize a person to act on its behalf for any of the purposes of these Regulations and, where the person so authorized is a corporation, its appropriate officers or employees shall be deemed to be authorized to act on behalf of the Bank.

Manner of Registration

  •  (1) Where a person is to be registered as owner of a bond

    • (a) as to principal, the Bank shall enter in the register the particulars of the bond and the name of the person to whom the principal is payable; or

    • (b) as to principal and interest, the Bank shall enter in the register the particulars of the bond and the name and post office address of the person to whom the principal and interest are payable.

  • (2) Where the names of two or more persons are to be entered in the register as owners of a bond as to principal and interest, there shall be indicated by the owners only one address that is to be entered in the register which address shall be the registered address of all those persons for all purposes relating to the bond.

Effect of Registration

  •  (1) Where, in accordance with these Regulations, the name of a person has been entered in the register by the Bank as owner of a bond as to principal or as to principal and interest, the entry in the register shall, except as otherwise provided in these Regulations, be conclusive evidence as against the Government of Canada that that person is owner of that bond.

  • (2) Where, in accordance with these Regulations, the name of a person is entered in the register as owner of a bond as to principal and interest, the interest on that bond is payable by a cheque negotiable at any branch in Canada of a bank incorporated under the Bank Act.

  • (3) Where the names of two or more persons without the words “and survivor”, are entered in the register as owners of a bond and one of the persons dies, his rights under the bond are not vested in any other such person or persons on his death by reason of survivorship.

  • (4) Notwithstanding that the name of a person is entered in the register as owner of a bond as to principal, the coupons attached to the bond are payable to bearer and when detached are transferable by delivery.

  •  (1) Where a bond is issued or registered, such issue or registration shall be deemed to be valid notwithstanding that

    • (a) the issue or registration takes place in error in circumstances in which such issue or registration is not authorized by these Regulations, or

    • (b) the issue or registration takes place pursuant to an instrument of transfer in which the signature of the transferor has been forged or pursuant to a forged instrument purporting to authorize a person to act on behalf of or in the place of a registered owner as provided for in section 15,

    but nothing in this section shall be deemed to affect the rights or liabilities of any person by reason of the forged instrument.

  • (2) Where in error a bond is issued or registered in circumstances in which such issue or registration is not authorized by these Regulations and the bond has been delivered, the person receiving the bond or registered as owner thereof shall not be entitled as against the Government of Canada to any payment under the bond but shall be liable to return the bond and all coupons attached to it at the time it was delivered to him and if he fails to do so he shall be liable to pay to the Bank the market value of the bond together with an amount equal to any amounts paid to him by way of interest on the bond.

  • (3) Where a person mentioned in subsection (2) fails to return matured coupons to the Bank, he shall be deemed to have received payment of the redemption value of the coupons.

Entries in Bonds

 Where the name of a person has been entered in the register by the Bank as owner of a bond

  • (a) registered as to principal, the Bank shall enter his name in the bond as the person to whom the principal is payable; or

  • (b) registered as to principal and interest, the Bank shall enter his name in the bond as the person to whom the principal and interest are payable.

 No entry in a bond of the name of any person as the person to whom the principal is payable or the principal and interest are payable made by a person other than the Bank is effective to confer any right under or interest in the bond.

 No alteration or erasure of the name of any person entered by the Bank in a bond as the person to whom the principal is payable or the principal and interest are payable is effective to confer any right under the bond on any other person or to deprive the person whose name was entered by the Bank of any rights that he may have under the bond.

 Where a person applies to be registered as owner of a bond and the bond is delivered to him without his name being entered in it by the Bank, the bond shall be deemed to be validly issued and unless he returns the bond to the Bank to have his name so entered, he shall be deemed to have accepted the bond in satisfaction of his rights as registered owner and the entry, if any, in the register shall be cancelled by the Bank.

Transfer of Bonds by Registered Owners

  •  (1) Except as otherwise provided by the terms of the bond a registered bond may, in accordance with sections 13 to 18, be transferred on presentation of the bond and of an instrument of transfer in accordance with these Regulations.

  • (2) Where subsection (1) has been complied with, the Bank may give effect to the instrument of transfer in accordance with its terms.

  • (3) The execution of an instrument of transfer does not transfer or confer any right under the bond against the Government of Canada or the Bank until the Bank has given effect to the instrument by making the appropriate entry in the register.

Form and Execution of Instrument of Transfer

  •  (1) An instrument of transfer shall be in Form I set out in the schedule.

  • (2) An instrument of transfer may be executed

    • (a) by being signed by the registered owner or his personal representative;

    • (b) where the registered owner is a corporation, by being signed by its duly authorized officers and by affixing the seal of the corporation, if any, where required;

    • (c) by being signed by a person authorized in that behalf by the registered owner under a power of attorney or partnership agreement;

    • (d) where an unincorporated association not being a partnership is registered as owner of a bond, by being signed by the duly authorized officers of the association; or

    • (e) by being signed by a person authorized by law to execute it on behalf of the registered owner.

  • (3) For the purposes of these Regulations, a person authorized by law to execute an instrument of transfer on behalf of a registered owner means any person appointed by a competent court or by statute to act on behalf of or in the place of the registered owner and includes a trustee in bankruptcy.

Guarantee of Signature

  •  (1) The Bank is not required to give effect to an instrument of transfer unless the signature on the instrument of transfer is guaranteed by

    • (a) a bank incorporated under the Bank Act or the Quebec Savings Banks Act; or

    • (b) a financial institution approved by the Bank under this section.

  • (2) The Bank may approve a financial institution for the purposes of this section and section 15 and may impose terms and conditions in connection with its approval and limit the amount of the bonds to be transferred in any one transaction with respect to which the guarantee of the institution will be accepted by the Bank and may revoke or vary any approval so given.

Evidence or Guarantee of Authority to Execute Instrument of Transfer

  •  (1) Except as provided in subsections (2) and (3), where an instrument of transfer purports to have been signed by a person acting as an officer of a corporation registered as owner of a bond or by a person acting for or on behalf or in the place of the registered owner or as the personal representative of a deceased registered owner, the Bank is not required to give effect to it unless the resolution, power of attorney, partnership agreement, probate of a will, letters of administration or other document authorizing or evidencing the authority of the person so to act or a notarial or other authenticated copy of it acceptable to the Bank has been deposited with the Bank.

  • (2) The Bank may give effect to an instrument of transfer signed by a person mentioned in subsection (1) if a bank incorporated under the Bank Act or the Quebec Savings Banks Act or a financial institution approved by the Bank, in addition to guaranteeing his signature, has also guaranteed his authority to execute the instrument for or on behalf or in the place of the registered owner, the guarantee being in either of the following forms:

    • (a) “Signature of transferor and authority to sign guaranteed”; or

    • (b) “Transaction guaranteed”.

  • (3) Where an instrument of transfer purports to have been signed in the firm name only of a partnership or an unincorporated association not being a partnership, the Bank may give effect to it if the signature is guaranteed by a bank incorporated under the Bank Act or the Quebec Savings Banks Act or a financial institution approved by the Bank.

  • (4) Where a resolution, power of attorney, partnership agreement or other document or a copy thereof has been deposited with the Bank for the purposes of this section, the Bank may give full force and effect to it until written notice is received by the Bank that it has been revoked or the authority thereby conferred or evidenced has been terminated.

No Guarantee of Signature Required in Certain Cases

 The Bank may give effect to an instrument of transfer although no guarantee of the signature of the person signing the instrument of transfer has been given, if

  • (a) he is known to an executive officer of the Bank in Ottawa and his signature is vouched for by such officer;

  • (b) he signs on behalf of an insurance company and his signature is vouched for by an officer of the Department of Insurance of the Government of Canada and is acceptable to the Bank;

  • (c) he is a member of Her Majesty’s naval, military or air forces and his signature is witnessed by the commanding officer of his unit or the officer under whose direct command he is serving;

  • (d) he is personally known to the agent at an agency of the Bank and his signature is witnessed and vouched for by the agent; or

  • (e) he is an officer of a trust company authorized to guarantee signatures under section 14 and he is an officer of the company authorized to execute such guarantees and instruments of transfer on behalf of the company.

Authentication of Signature Where Instrument of Transfer Executed Outside Canada

 Where an instrument of transfer has been executed outside Canada in a country of the British Commonwealth or in a British colony or possession and where no guarantee of the signature of the person signing it can be obtained in accordance with section 14 and the signature is not vouched for or witnessed in accordance with paragraph 16(a), (b) or (c), the Bank may give effect to the instrument, if

  • (a) the signature of the person signing it is guaranteed by an incorporated bank; or

  • (b) the signature is certified in the manner provided in section 18.

 Where an instrument of transfer is executed outside Canada in a place other than a place mentioned in section 17 and where no guarantee of the signature on the instrument of transfer can be obtained in accordance with section 14 and the signature is not vouched for or witnessed in accordance with paragraph 16(a), (b) or (c), the Bank may give effect to the instrument of transfer if the signature of the person signing it is certified to have been affixed in the presence of

  • (a) an officer of the Canadian diplomatic, consular or representative or trade commissioner services while exercising his functions as such,

  • (b) an officer of Her Majesty’s diplomatic or consular services while exercising his functions as such, or

  • (c) a judge of a Court of Record,

and the instrument bears the signature and official seal of the person who certifies the signature.

Transmission and Transfer of Registered Bonds on Death of Registered Owner

  •  (1) Where the registered owner of a bond has died, the Bank, upon receipt of the bond and the appropriate documents specified in subsection (2),

    • (a) shall register ownership of the bond in the name of the estate of the deceased or of his personal representative, as may be appropriate; or

    • (b) may, if such registration is permitted by the terms of the bond, issue a new bond with ownership registered as prescribed in paragraph (a).

  • (2) The appropriate documents referred to in subsection (1) are

    • (a) an authenticated or notarial copy of letters probate of the will of the deceased owner or of letters of administration of his estate, granted by a court or authority in Canada having power to grant probate or administration of such an estate;

    • (b) where the deceased was, at the time of his death, domiciled in the Province of Quebec, proof of death and

      • (i) where the will of the deceased owner was made in notarial form, an authentic copy of that will,

      • (ii) where the will was made in holograph form or in a form derived from the laws of England, a copy of the will, certified by the prothononotary, together with a certified copy of the judgment granting probate,

      • (iii) an authentic copy of a marriage contract containing an unrevoked gift made in contemplation of death, or

      • (iv) where the deceased owner died intestate without having made a marriage contract containing an unrevoked gift made in contemplation of death, a declaration of heredity and, if required, a certified copy of an act of tutorship or curatorship confirmed by a judgment of a court having power to confirm the same; or

    • (c) where the deceased was, at the time of his death, domiciled in a country other than Canada, an authenticated or notarial copy of the probate of the will, letters of administration of his estate or other documents of like import, satisfactory to the Bank, granted by the court or authority of that country having the requisite power in such matters.

  • (3) Where ownership of a bond has been registered in the name of the estate of a deceased person or of his personal representative, it may be transferred upon completion of an instrument of transfer executed in accordance with sections 13 to 18 or, in the discretion of the Bank, upon execution by a person acceptable to the Bank of a sworn declaration, setting forth such facts and information as the Bank may require, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name.

  • (4) Where the registered owner of a bond has died, the Bank may, upon receipt of the bond and the documents specified in subsections (2) and (3), transfer ownership of the bond to a person other than a person specified in subsection (1) or to bearer without first having registered it in the name of the estate of the deceased or of his personal representative, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name.

 
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