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

Regulations are current to 2023-01-11

PART IRegistration (continued)

Transmission and Transfer of Registered Bonds on Death of Registered Owner (continued)

  •  (1) Subject to subsection (2), where the registered owner of a bond has died, and

    • (a) the Bank is satisfied that no person intends to apply for a grant of

      • (i) letters probate of the will, or

      • (ii) letters of administration of the estate of the deceased, and

    • (b) application has been made to the Bank in a form prescribed by the Bank for the transfer of the bond,

    the Bank may, notwithstanding that it has not been furnished with the documents specified in section 19,

    • (c) if the bond is by its terms transferable, give effect to a transfer of the bond, or

    • (d) if the bond is by its terms not transferable, cancel the bond and issue a new bond for an equal principal amount of like issue,

    to the person that the Bank is satisfied is entitled thereto by reason of the death of the registered owner.

  • (2) The Bank may give effect to the transfer of a bond, or issue a new bond, to a person pursuant to subsection (1) only where

    • (a) there is an intestacy and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person is entitled to the entire estate;

    • (b) there is a will and that person is the sole beneficiary and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person would have been entitled to the entire estate had the deceased died intestate; or

    • (c) the aggregate face value of all bonds of which the deceased was registered as owner at the time of his death did not exceed $20,000.

  • SOR/80-695, s. 1

Transfer or Redemption Pursuant to Court Order

  •  (1) Where a registered bond has been seized pursuant to a writ of exemption or other like process issued out of a court,

    • (a) in the case of a bond that is transferable, upon presentation of the bond and an authenticated copy of the writ of execution or other like process issued out of the court, the Bank may register the sheriff to whom the writ of execution or other like process is directed as owner of the bond or enter his name in the bond accordingly; and

    • (b) in the case of a bond that is not transferable, upon presentation of the bond and an authenticated copy of a writ of execution or other like process issued out of the court, the Bank may redeem the bond and pay the value thereof to the sheriff to whom the writ of execution or other like process is directed.

  • (2) Where a court orders the sale or transfer of a registered bond that is transferable or makes an order vesting such a bond in a person other than the registered owner,

    • (a) if the name of the person who is to be registered as owner is specified in the order of the court, the Bank may, upon presentation of the bond and an authenticated copy of the order, register that person as the owner of the bond and enter his name in the bond accordingly; or

    • (b) if the order of the court authorizes a person to transfer the bond in the place of the registered owner, the Bank may, upon presentation of the bond and an authenticated copy of the order, give effect to an instrument of transfer executed by the person so authorized.

  • (3) Where a court orders the sale of a registered bond that is not transferable or makes an order vesting such a bond in a person other than the registered owner, if the name of the person to whom payment is to be made upon sale of the bond or in whom the bond is vested is specified in the order, the Bank may, upon presentation of the bond and an authenticated copy of the order, redeem the bond and pay the value thereof to the person named in the order as the person to whom payment is to be made or in whom the bond is vested.

Whereabouts of Registered Owner Unknown or not Available

  •  (1) Where it appears to the Bank that the whereabouts of a person in whose name a bond is registered is unknown and application is made to the Bank for transfer or redemption of the bond, the Bank may, in its discretion, transfer the ownership of or redeem the bond if a bond of indemnity in accordance with subsection 38(1) is given to the Bank.

  • (2) Where a bond is in the possession of Her Majesty or the Bank and the owner of the bond cannot be located, or Her Majesty or the Bank had been requested to retain the bond in safekeeping, the bond may, notwithstanding anything in these Regulations, be treated, on the date of maturity, as though it had been redeemed, and a liability shall be set up in the books of the Department of Finance, in the amount of the bond and any interest that accumulated thereon to the date of maturity,

    • (a) where the bond is registered, in favour of the registered owner; and

    • (b) where the bond is not registered, in favour of the person who establishes that he is the owner,

      • (i) to the satisfaction of the Minister of Finance, if the bond is in the possession of Her Majesty, or

      • (ii) to the satisfaction of the Bank, if the bond is in the possession of the Bank.

Married Women

 The Bank may register a bond in the name of a married woman or may transfer or redeem a bond upon the authority of the signature of a married woman, without the consent of her husband, whether such married woman is acting as a principal or in a representative capacity.

Minors

  •  (1) A bond may be registered in the name of a person whether or not he is a minor or is qualified by law to enter into ordinary contracts.

  • (2) Where a bond is registered in the name of a minor who is not unable by reason of immaturity to write his name,

    • (a) an instrument of transfer executed by him shall have the same effect, for the purposes of these Regulations, as if he were of the full age of majority and the Bank may make payments under the bond to him and accept acquittances thereof from him as if he were of the full age of majority; and

    • (b) where evidence is furnished to the Bank that a guardian or tutor of the minor has been appointed, the Bank may make payments under the bond to such guardian or tutor and may accept acquittances in respect thereof executed by such guardian or tutor on behalf of the registered owner, and such guardian or tutor may execute an instrument of transfer on behalf of the registered owner.

  • (3) Where the Bank is satisfied that the registered owner of a bond, being a minor, is unable by reason of immaturity to write his name,

    • (a) an instrument of transfer may be executed on behalf of the registered owner by the guardian; and

    • (b) the Bank may make payments under the bond to the guardian and may accept acquittances in respect thereof executed by such guardian on behalf of the registered owner and for the purposes of this subsection, evidence of age in the form of a certificate of birth or other evidence satisfactory to the Bank may be accepted as proof of age, but where in addition to the guarantee of the signature of the guardian his authority to sign is guaranteed as set forth in subsection 15(2), no such evidence shall be required.

  • (4) For the purposes of subsection (3), guardian, where used with reference to a registered owner of a bond who is unable by reason of immaturity to write his name, means,

    • (a) where the registered owner is resident in the Province of Quebec and evidence satisfactory to the Bank is produced that a tutor has been appointed, the tutor of the registered owner;

    • (b) where the registered owner is resident elsewhere than in the Province of Quebec and evidence satisfactory to the Bank is produced that a guardian has been officially appointed, the guardian of the registered owner; and

    • (c) in any other case, either parent of the registered owner, except that

      • (i) if evidence satisfactory to the Bank is produced that only one parent has actual custody and control of the registered owner, the parent who satisfies the Bank that he has actual custody and control of the registered owner, or

      • (ii) if evidence satisfactory to the Bank is produced that neither parent has actual custody and control of the registered owner, the person who satisfies the Bank that he has actual custody and control of the registered owner.

Partnerships and Unincorporated Associations

  •  (1) The partners in a partnership or the members for the time being of an unincorporated association not being a partnership may be registered as owners of a bond under the firm name or the name of the association.

  • (2) Where members for the time being of an unincorporated association have been registered as owners of a bond as provided in subsection (1), instruments of transfer, acquittances or other documents furnished under these Regulations by the duly authorized officers for the time being of the association shall, for the purposes of these Regulations, be binding on the members of the association.

Closing of Books

 Where bonds are registered as to principal and interest, nothing in these Regulations shall be deemed to require the Bank to make exchanges or registrations or to give effect to instruments of transfer in connection therewith during any period, which the Bank considers reasonable, immediately preceding the date of any interest payment on such bonds.

Damaged or Missing Bonds and Unmatured Attached Coupons

  •  (1) Where a bond or an unmatured coupon belonging to a bond has been damaged, defaced or mutilated and all parts of the bond and all unmatured coupons belonging to it, if any, that, in the opinion of the Bank are material, have been surrendered to the Bank, the Bank may forthwith issue a new bond and appropriate coupons in place of them.

  • (2) If all parts of a bond and unmatured coupons belonging to it, if any, mentioned in subsection (1), are not surrendered to the Bank, the Bank may, if in its opinion the missing parts are material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before a new bond is issued or the Bank may require that the bond and coupons be treated as destroyed, lost or stolen, as the case may be.

  •  (1) Subject to this section, where

    • (a) it appears to the Bank that a bond and unmatured coupons attached to it, if any, have been destroyed, lost or stolen, and

    • (b) a bond of indemnity in accordance with section 38 is given to the Bank,

    the Bank may, in its discretion, issue a new bond and appropriate coupons in place of the bond and coupons that were destroyed, lost or stolen.

  • (2) Before issuing a new bond pursuant to subsection (1), the Bank may, in its discretion, require that the following period shall elapse after notice is received by the Bank of the alleged destruction, loss or theft:

    • (a) six months, in the case of a destroyed bond;

    • (b) six months, in the case of a lost or stolen bond registered as to principal and interest and for which no instrument of transfer to bearer has been executed;

    • (c) one year, in the case of a lost or stolen bond registered as to principal and for which no instrument of transfer to bearer has been executed; or

    • (d) two years, in any other case.

  • (3) Where it appears to the Bank that a bond has been destroyed, lost or stolen after it has been paid for by a subscriber and before it was received by him, the Bank may, in its discretion, waive the waiting period specified in subsection (1) and, where the subscriber is or was an employee of Her Majesty in right of Canada who purchased the bond under the Plan commonly known as the “Employees’ Instalment Purchase Plan”, the Bank, on instructions from the Deputy Minister of Finance, shall issue a new bond without requiring a bond of indemnity to be given to the Bank, but the Deputy Minister of Finance shall not issue such instructions unless the person to whom the new bond is to be issued gives to the Deputy Minister of Finance such information and material, including an undertaking to indemnify the Bank and the Government of Canada for any loss resulting from the issue of the new bond, as the Deputy Minister of Finance considers appropriate.

  • (4) Where it appears to the Bank that a bond that has matured or has been called for payment before maturity has been destroyed, lost or stolen, the Bank may, if a bond of indemnity described in section 38 is given to it, pay to the owner, in redemption of the bond, an amount equal to the amount payable on maturity or on call, as the case may be.

  • (5) Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond, for the purposes of subsection 38(2), shall be deemed to be a bond of which that person is registered as owner as to principal and interest.

  • (6) Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond shall, for the purposes of subsection 38(2), be deemed to be a bond of which that person is registered as owner as to principal and interest.

  • (7) Where it appears to the Bank that a non-interest bearing certificate has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the certificate to the registered owner if he gives to the Bank an undertaking to indemnify in accordance with section 37.

 Where it appears to the Bank that a bond and unmatured coupons attached to it, if any, cancelled by a bank incorporated under the Bank Act or the Quebec Savings Banks Act have been destroyed, lost or stolen while in the custody of the bank or in the course of transit from a branch of the bank to its main office or to any agency of the Bank, if the bank certifies that the bond and each coupon attached thereto was effectively cancelled for purposes and in accordance with arrangements expressly approved by the Bank and gives to the Bank an undertaking to indemnify in accordance with section 37 duly executed on its behalf at its head office and three months have elapsed after the day on which the Bank received notice of the destruction, loss or theft, the Bank may, in its discretion, issue a new bond and appropriate coupons in place of them.

 Where a bond that is registered or registrable as to principal and interest, whether cancelled or uncancelled, or a coupon bond and unmatured coupons attached to it, if any, that have been cancelled by the Bank are destroyed, lost or stolen while in the custody of the Bank or in the course of transit from any office of the Bank, the Bank may issue a new bond and appropriate coupons in place of them upon executing an undertaking to indemnify the Government of Canada in an amount equal to the principal amount of the missing bond and value of the coupons, if any.

Damaged or Missing Matured Coupons

  •  (1) Where all parts of a damaged, defaced or mutilated matured coupon that, in the opinion of the Bank are material, are surrendered to the Bank, the Bank may forthwith pay the redemption value of the coupon.

  • (2) If a part of the coupon mentioned in subsection (1) is not surrendered to the Bank, the Bank may, if in its opinion the part is material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before redeeming the coupon or require that the coupon be treated as if it had been destroyed, lost or stolen, as the case may be.

  •  (1) Where it appears to the Bank that a detached coupon has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the coupon if a bond of indemnity in accordance with section 38 is given to the Bank and if the following period has elapsed after notice was received by the Bank of the alleged destruction, loss or theft and the date of maturity of the coupon:

    • (a) six months, in the case of a destroyed coupon; or

    • (b) two years, in the case of a lost or stolen coupon.

  • (2) Notwithstanding subsection (1), where a financial institution acceptable to the Bank has requested payment of the value of a matured coupon that has been destroyed, lost or stolen after encashment by it, the Bank may, in its discretion, at any time after three months from the day on which the Bank received notice of the destruction, loss or theft, pay the redemption value of the coupon if that institution gives to the Bank an undertaking to indemnify the Bank in accordance with section 37.

Unredeemable Coupons Missing from Called Bonds

  •  (1) Where a bond that has been called for payment prior to maturity is presented for the purpose of being redeemed and any of the coupons dated subsequent to the call date are not attached to the bond, an amount equal to the value of the missing coupons shall be withheld and that amount shall be credited to an appropriate account in the books of the Bank.

  • (2) Where a coupon, in respect of which an amount equal to the value of that coupon has been credited to an account in the books of the Bank in accordance with subsection (1), is presented by a person to the Bank, the Bank may pay that amount to that person.

Destroyed, Lost or Stolen Cheques

 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.

Interim Certificates

 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.

 
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