Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System (SOR/2003-346)

Interpretation

Marginal note:Definitions

1 The following definitions apply in this By-law.

ACSS cycle

ACSS cycle means the period beginning immediately after the final adjustment time on a given business day and ending with the final adjustment time on the next business day. (cycle du SACR)

Automated Clearing Settlement System

Automated Clearing Settlement System or ACSS means the system into which direct clearers, group clearers, clearing agents and the Bank of Canada make entries for the purpose of clearing. (système automatisé de compensation et de règlement ou SACR)

business day

business day means any day other than an ACSS holiday specified in the rules. (jour ouvrable)

clearing

clearing means the reconciliation of payment items that were exchanged and the calculation of the clearing balances. (compensation)

clearing agent

clearing agent means the direct clearer or group clearer appointed under subsection 33(1) that, on behalf of an indirect clearer, exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (agent de compensation)

clearing balance

clearing balance means the total of the net amounts owing to or by a member as a result of clearing. (solde de compensation)

direct clearer

direct clearer means a member, other than the Bank of Canada, appointed under section 26 that, on its own behalf, exchanges payment items and makes entries into the ACSS. (adhérent)

exchange

exchange means the delivery and receipt of payment items. (échange)

federal credit union

federal credit union has the same meaning as in section 2 of the Bank Act. (coopérative de crédit fédérale)

final adjustment time

final adjustment time means the time, set out in the rules, prior to which the correction of errors affecting the calculation of the clearing balance of a direct clearer or group clearer for the current ACSS cycle must be made. (heure finale de rajustement)

final exchange

final exchange means the last exchange of payment items at each regional exchange point for the current ACSS cycle. (échange final)

group

group means a group described in section 28 and includes the group clearer. (groupe)

group clearer

group clearer means a member that, on its own behalf or on behalf of the entities belonging to the group in respect of which it is appointed in accordance with section 28, exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (adhérent-correspondant de groupe)

indirect clearer

indirect clearer means a member on behalf of which a clearing agent exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (sous-adhérent)

pledge

pledge means a grant to the Bank of Canada of security in collateral to guarantee an advance of funds that the Bank of Canada may make for the purposes described in section 34.2 and includes a grant of security in which the Bank of Canada does not take possession of the collateral. (nantissement)

regional exchange point

regional exchange point means each location in Canada designated in the rules for the exchange of payment items among direct clearers, group clearers and clearing agents, or between one of them and the Bank of Canada, and includes the National Electronic Settlement Region within the meaning of the rules. (point régional d’échange)

settlement

settlement means the payment of the clearing balance. (règlement)

General

Marginal note:Notices

• 2 (1) Every notice required under this By-law shall be given in accordance with the rules.

• Marginal note:Waiver of notice

  (2) Any person entitled to be given notice under this By-law may waive the notice.

PART 1Payment Items

DIVISION 1Application

Marginal note:Application — exchanges

• 3 (1) This Part applies to the following exchanges:

  • (a) in respect of payment items giving rise to clearing through the ACSS,

    • (i) the exchange among direct clearers, group clearers and clearing agents, or between one of them and the Bank of Canada, and

    • (ii) the exchange between indirect clearers through their respective clearing agent; and

  • (b) in respect of payment items not giving rise to clearing through the ACSS,

    • (i) the exchange between an indirect clearer and its clearing agent,

    • (ii) the exchange between indirect clearers that are represented by the same clearing agent, through that agent,

    • (iii) the exchange between a group clearer and an entity belonging to the group, and

    • (iv) the exchange among the entities belonging to a group, through the group clearer.

• Marginal note:Application — clearing and settlement

  (2) This Part also applies to the clearing of payment items that are the object of an exchange referred to in subsection (1) and to the resulting settlement.

DIVISION 2General

Marginal note:Obligation — non-member entities

4 Every member that exchanges payment items and either effects clearing and settlement or makes entries into the ACSS on behalf of a local referred to in subparagraph 6(1)(a)(ii) shall ensure that the local complies with the by-laws and the rules as if it were a member.

Marginal note:Means of settlement

5 Settlement is effected by one of the following means, as specified in the rules:

• (a) [Repealed, SOR/2021-182, s. 54]

• (a.1) by a payment message as defined in section 1 of the Canadian Payments Association By-law No. 9 — Lynx;

• (b) on the basis of clearing balances established by the ACSS; or

• (c) through a clearing agent.

DIVISION 3Payment Items Acceptable for Clearing

Classes of Payment Items

Marginal note:Approved payment items

• 6 (1) Paper-based payment items and electronic payment items that are specified in the rules and that conform to the following requirements may be exchanged for the purpose of clearing and settlement:

  • (a) they are drawn on

    • (i) a member, or

    • (ii) a local that belongs to a central or a cooperative credit association that is a member; and

    • (iii) [Repealed, SOR/2010-43, s. 56]

  • (b) they

    • (i) are payable on demand,

    • (ii) are identified in accordance with the rules, and

    • (iii) conform to the requirements set out in the rules, including those relating to value and value date.

• Marginal note:Payment items specified in the rules

  (2) Paper-based payment items and electronic payment items that do not conform to the requirements in subsection (1) but are specified in the rules and conform to the requirements set out in the rules may also be exchanged for the purpose of clearing and settlement.

Government Payment Items

Marginal note:Government payment items

7 Paper-based payment items and electronic payment items drawn on or by the Receiver General of Canada and payable by the Government of Canada that are specified in the rules may be exchanged for the purpose of clearing and settlement.

International Payment Items

Marginal note:Classes of international payment items

8 International payment items that are specified in the rules and that fall within a class specified in the rules may be exchanged for the purpose of clearing and settlement.

Payment Items in Dispute

Marginal note:Prohibition

9 Members shall not exchange, for the purpose of clearing and settlement, payment items in dispute within the meaning of the rules.

10 [Repealed, SOR/2012-161, s. 5]

11 [Repealed, SOR/2012-161, s. 5]

12 [Repealed, SOR/2012-161, s. 5]

13 [Repealed, SOR/2012-161, s. 5]

DIVISION 4Exchange, Clearing and Settlement

Marginal note:Exchange irrevocable and irreversible

14 Every exchange of a payment item shall become irrevocable and irreversible at the time specified in the rules or, failing such time, when settlement is effected.

Marginal note:Compliance with by-laws and rules

15 Every member shall exchange payment items in accordance with the by-laws and the rules and ensure that its payment items comply with the provisions of the by-laws and the rules.

Marginal note:Settlement account — indirect clearers

• 16 (1) Every indirect clearer shall maintain a settlement account with each of its clearing agents.

• Marginal note:Loan facilities

  (2) Every indirect clearer shall establish a loan facility with each of its clearing agents.

• Marginal note:Settlement account and loan facility

  (3) An indirect clearer may maintain a settlement account and establish a loan facility with a central that has been designated in accordance with subsection 33(2).

DIVISION 5Return of Payment Items

Marginal note:Returns in accordance with the rules

17 Despite section 14, payment items, the exchange of which becomes irrevocable and irreversible when settlement is effected, may be returned after settlement in accordance with, and for the reasons set out in, the rules.

Marginal note:Acceptance of returned payment items

18 Every member shall accept payment items returned to it in accordance with the rules.

PART 2Automated Clearing Settlement System

DIVISION 1Application

Marginal note:Application

19 This Part applies to the exchange of payment items giving rise to clearing through the ACSS, and to the clearing of those payment items and the resulting settlement.

DIVISION 2General

Marginal note:Exclusion of liability

20 Neither the Association nor a director, an officer or an employee is liable for any loss or damage suffered by a member for anything done or omitted to be done, honestly and in good faith, in relation to the ACSS, in the administration or discharge of any powers or duties that under this By-law are intended or authorized to be executed or performed.

Marginal note:Ownership

21 The Association owns the ACSS.

Marginal note:ACSS operated by Association

22 The operation, management and ongoing maintenance of the ACSS form part of the business of the Association.

Marginal note:Operation of ACSS

23 Subject to section 46 and except in case of a national failure of the ACSS within the meaning of the rules, the Association shall ensure that the ACSS is operational on all business days.

Marginal note:Access to information

24 Access to information relating to clearing and to the operation of the ACSS shall be governed by the rules.

DIVISION 3Participation in the ACSS

Participants

Marginal note:Participants

25 Only direct clearers, group clearers, clearing agents and the Bank of Canada may make entries into the ACSS.

Requirements

Marginal note:Direct Clearers Appointment

26 Subject to section 32, the Board may, on completion by a member of the application procedures set out in the rules, appoint the member to act as a direct clearer if the member

• (a) maintains a settlement account with the Bank of Canada;

• (b) has established a loan facility with the Bank of Canada and has entered into any agreements that may be required by the Bank of Canada governing the settlement of the member’s clearing balance, the administration of the loan facility, the provision by the Bank of Canada of advances for ACSS purposes and the pledging of collateral to secure advances that may be made under the loan facility; and

• (c) [Repealed, SOR/2020-167, s. 4]

• (d) meets the technical, financial and other requirements set out in the rules.

Marginal note:Revocation of status

• 27 (1) The Board may revoke the direct clearer status of a member if that member no longer meets the requirements set out in section 26.

• Marginal note:Notification of revocation

  (2) The President shall, as soon as practicable, notify all members of the revocation.

Marginal note:Groups and Group Clearers Composition of group

• 28 (1) A group may consist of

  • (a) a central or cooperative credit association that has been appointed to be the group clearer and one or more of the following, including any combination of them:

    • (i) centrals,

    • (ii) cooperative credit associations,

    • (iii) federal credit unions,

    • (iv) locals that belong to the group clearer, or

    • (v) locals that belong to another central or cooperative credit association if that central or cooperative credit association is also a member of the group; or

  • (b) two or more members from one of the following categories that have appointed a member of the category to be the group clearer:

    • (i) authorized foreign banks and banks, excluding federal credit unions,

    • (ii) trust companies and loan companies,

    • (iii) securities dealers, or

    • (iv) other members, excluding centrals, cooperative credit associations, federal credit unions, qualified corporations, trustees of qualified trusts and life insurance companies.

• Marginal note:Central may act for locals

  (2) For greater certainty, if two or more locals belong to two centrals, one of which belongs to the other central, one of the centrals may appoint the other central to act as group clearer for itself and the locals.

Marginal note:Required approval

• 29 (1) An appointment referred to in section 28 is subject to the approval of the Board.

• Marginal note:Criteria for approval

  (2) The Board may approve the appointment if

  • (a) the appointed member complies with the requirements set out in paragraphs 26(a), (b) and (d); and

  • (b) [Repealed, SOR/2020-167, s. 5]

  • (c) in the case of a group referred to in paragraph 28(1)(b), the appointed member enters into contractual commitments with each of the entities belonging to the group that are necessary to ensure the ability of the member to satisfy its liability as group clearer.

Marginal note:Revocation of status

• 30 (1) The Board may revoke the group clearer status of a member if that member no longer complies with the requirements set out in paragraph 26(a), (b) or (d) or, in the case of a group referred to in paragraph 28(1)(b), the contractual commitments referred to in paragraph 29(2)(c) no longer ensure the ability of the member to satisfy its liability as group clearer.

• Marginal note:Notification of revocation

  (2) The President shall, as soon as practicable, notify all members of the revocation.

31 [Repealed, SOR/2012-161, s. 8]

Marginal note:Exception — Direct Clearer and Group Clearer Exception

32 A qualified corporation, on behalf of its money market mutual fund, a trustee of a qualified trust and a life insurance company are not eligible to be a direct clearer or group clearer.

Marginal note:Clearing agents appointment

• 33 (1) The Board may, on completion by a direct clearer or group clearer of the application procedures set out in the rules, appoint it to act as a clearing agent if the direct clearer or group clearer meets the technical, financial and other requirements set out in the rules.

• Marginal note:Designation of a central

  (2) A group clearer that has been appointed to act as a clearing agent for an indirect clearer may, in accordance with the rules, designate a central that belongs to the group where the settlement account of that indirect clearer is maintained and the loan facility of that indirect clearer is established.

• Marginal note:Effect of designation

  (3) The designation of a central in accordance with subsection (2) by the group clearer appointed to act as a clearing agent does not preclude the group clearer from remaining subject to all obligations applicable to clearing agents set out in this By-law and in the applicable rules.

Marginal note:Revocation of status

• 34 (1) The Board may revoke the clearing agent status of a direct clearer or group clearer that no longer meets the requirements set out in the rules.

• Marginal note:Automatic revocation

  (2) If a member’s status as direct clearer or group clearer is revoked, its status as clearing agent is also revoked.

• Marginal note:Notification of revocation

  (3) The President shall, as soon as practicable, notify all members of the revocation.

Pledging Collateral

Marginal note:Calculation of necessary collateral

• 34.1 (1) The Association shall calculate, in accordance with the rules, the required amount of the ACSS collateral pool and the amount of each direct clearer and group clearer’s collateral pool pledge. The Association shall periodically recalculate these amounts, in accordance with the rules.

• Marginal note:Pledging collateral

  (2) Each direct clearer and group clearer shall pledge collateral to the Bank of Canada, in an amount determined by the Association in accordance with the rules, within the time and in the manner set out in the rules. If the amount of the collateral pool pledge increases as a result of a recalculation under subsection (1), the direct clearer or group clearer shall pledge the recalculated amount, within the time and in the manner set out in the rules.

• Marginal note:Valuation by Bank of Canada

  (3) Any collateral pledged by a direct clearer or group clearer for ACSS purposes is subject to valuation by the Bank of Canada at the time the pledge is made.

• Marginal note:Insufficient collateral

  (4) If, on valuation of the collateral by the Bank of Canada, the value assigned by the Bank of Canada to the collateral pledged is less than the amount that is required to be pledged, the direct clearer or group clearer shall pledge additional collateral.

• Marginal note:Exceeding collateral requirement

  (5) If the value of the direct clearer or group clearer’s collateral pledge exceeds the amount that is required to be pledged, the direct clearer or group clearer shall, on request for a release made to the Bank of Canada, obtain a release of the excess collateral from the pledge.

Marginal note:Restricted purpose

34.2 A direct clearer or group clearer shall not use the collateral pledged under subsection 34.1(2) for any purpose other than securing an advance from the Bank of Canada to enable settlement under section 50.

DIVISION 4Representation

General

Marginal note:Representation of indirect clearers

35 An indirect clearer shall designate at least one clearing agent. However, for those payment items specified in the rules, an indirect clearer shall be represented at every regional exchange point by the same clearing agent.

Marginal note:Amalgamations

• 36 (1) If two members amalgamate, for a period of one year following the amalgamation,

  • (a) payment items, including those not giving rise to clearing through the ACSS, drawn on or payable by the member that ceases to exist, may continue to be exchanged; and

  • (b) in the case of an indirect clearer that ceases to exist, it may be represented at a regional exchange point, despite section 35, by more than one clearing agent for the payment items specified in the rules.

• Marginal note:Extension of period

  (2) The President may extend the one-year period if it is necessary for the proper conduct of the business of the amalgamating members.

Prior to Acting — Clearing Agent

Marginal note:Notice

• 37 (1) Subject to section 41, a clearing agent shall give at least 30 days’ notice to the President prior to acting as clearing agent for an indirect clearer.

• Marginal note:Obligation of President

  (2) The President shall inform the direct clearers and group clearers of the notice in accordance with the rules.

Ceasing to Act — Clearing Agent and Group Clearer

Marginal note:30 days notice

• 38 (1) A clearing agent shall give at least 30 days’ notice to an indirect clearer and to the President prior to ceasing to act as clearing agent for the indirect clearer.

• Marginal note:Obligation of President

  (2) The President shall inform the direct clearers and group clearers of the notice in accordance with the rules.

• Marginal note:Exception

  (3) Despite subsection (1), the clearing agent shall not cease acting for an indirect clearer if another clearing agent is designated to act for the indirect clearer until the other clearing agent has started acting for the indirect clearer.

• Marginal note:Status revoked

  (4) Despite subsections (1) and (3), a clearing agent shall cease to act without delay if its status is revoked.

Marginal note:Exception — ceasing to act immediately

• 39 (1) Subject to subsection 39.15(3.1) of the Canada Deposit Insurance Corporation Act, a clearing agent may, despite subsections 38(1) and (3), immediately cease to act for an indirect clearer if

  • (a) the clearing agent reasonably believes that the indirect clearer poses a legal, financial or operational risk to the clearing agent; or

  • (b) the indirect clearer has breached a substantial term of an agreement entered into with the clearing agent for the purposes of clearing and settlement.

• Marginal note:Notification to other clearing agents

  (2) The clearing agent shall give notice, before the time set out in the rules and at least one hour prior to ceasing to act, to the other clearing agents acting for the indirect clearer. The other clearing agents may unanimously waive the notice or abridge the time for the notice.

• Marginal note:Notification to indirect clearers and group clearers

  (3) The clearing agent shall, immediately on ceasing to act,

  • (a) give written notice to the indirect clearer of its decision to immediately cease to act for the indirect clearer; and

  • (b) give notice of its decision to the President, to its other indirect clearers and to the other clearing agents acting for the indirect clearer and, in so far as is practicable, give notice of its decision to the other direct clearers and group clearers.

• Marginal note:Notice by the President

  (4) The President shall give notice to every other direct clearer and group clearer of the clearing agent’s decision to immediately cease to act for the indirect clearer.

• Marginal note:Notice by direct clearers and group clearers

  (5) Every other direct clearer or group clearer shall immediately notify every indirect clearer for which it acts as clearing agent or every entity belonging to the group for which it acts as group clearer, as the case may be, of that decision.

Marginal note:Obligation to accept payment items

40 A clearing agent that ceases to act for an indirect clearer shall accept payment items, including those not giving rise to clearing through the ACSS, that are drawn on or payable by the indirect clearer and either effect clearing and settlement or make entries into the ACSS until the final exchange on the business day on which the clearing agent ceases to act.

Marginal note:Designation of new clearing agent

• 41 (1) An indirect clearer may, immediately on receiving the notice referred to in subsection 38(1) or 39(3), designate a new clearing agent from among the direct clearers and group clearers appointed by the Board to act as clearing agent.

• Marginal note:When designation takes effect

  (2) The designation takes effect at the time agreed on by the indirect clearer and the new clearing agent.

Marginal note:Duty to cooperate

42 The former and the new clearing agent shall cooperate to ensure an orderly change in representation.

Change to Composition of Group

Marginal note:Notice

43 A group clearer shall, at least 30 days prior to its effective date, give notice to the President of its decision to cease acting as a group clearer for an entity belonging to the group or of the withdrawal of an entity from the group for which it acts as a group clearer.

Marginal note:Exception — immediately ceasing to act

• 43.1 (1) Despite section 43, a group clearer may immediately cease to act for an entity belonging to the group if

  • (a) the group clearer reasonably believes that the entity poses a legal, financial or operational risk to the group clearer; or

  • (b) the entity has breached a substantial term of an agreement entered into with the group clearer for the purposes of clearing and settlement.

• Marginal note:Notice

  (2) The group clearer shall, immediately on ceasing to act,

  • (a) give written notice to the entity of its decision to immediately cease to act for that entity;

  • (b) give notice of its decision to the President;

  • (c) give notice of its decision to the other entities belonging to the group for which it is a group clearer or to every indirect clearer for which it acts as clearing agent, as the case may be; and

  • (d) in so far as is practicable, to give notice of its decision to the direct clearers and other group clearers.

• Marginal note:Notice by the President

  (3) The President shall give notice to the direct clearers and other group clearers of the group clearer’s decision to immediately cease to act for the entity.

• Marginal note:Notice by direct clearers and group clearers

  (4) The direct clearers and other group clearers shall immediately notify every indirect clearer for which they act as a clearing agent or every entity belonging to the group for which they act as a group clearer of that decision.

Marginal note:Obligation to accept payment items

44 The group clearer shall accept payment items, including those not giving rise to clearing through the ACSS, drawn on or payable by an entity for which it is ceasing to act or an entity that withdraws from the group for which it acts as group clearer and either effect clearing and settlement or make entries into the ACSS until the final exchange on the business day on which the group clearer ceases to act or on which the entity withdraws.

DIVISION 5Exchange, Clearing and Settlement

Exchange

Marginal note:Reception of payment items

• 45 (1) A direct clearer, group clearer and clearing agent shall receive payment items at every regional exchange point.

• Marginal note:Use of representative

  (2) A direct clearer, group clearer, clearing agent or the Bank of Canada may exchange payment items through a direct clearer or group clearer, acting on its behalf.

• Marginal note:Responsibility

  (3) The direct clearer, group clearer or clearing agent or the Bank of Canada shall remain responsible to ensure that the payment items are exchanged in accordance with the by-laws and the rules.

Marginal note:Suspension of exchanges

• 46 (1) If it becomes impractical to exchange any class of payment items at a particular regional exchange point on a given day, the President may, after consulting the direct clearers, group clearers and the Bank of Canada, suspend the exchange of the class of payment items or of all payment items for the regional exchange point for the current ACSS cycle.

• Marginal note:Measures

  (2) Immediately on suspension, the President shall, after consulting the direct clearers, group clearers and the Bank of Canada, take any measures that are necessary in the circumstances.

• Marginal note:Notification of measures taken

  (3) The President shall notify the direct clearers, group clearers and the Bank of Canada of the measures taken.

Clearing

Marginal note:Entries

• 47 (1) Direct clearers, group clearers, clearing agents and the Bank of Canada shall make entries into the ACSS, in accordance with the rules, for the purpose of clearing.

• Marginal note:Manual clearing

  (2) In case of a national failure of the ACSS within the meaning of the rules, direct clearers, group clearers, clearing agents and the Bank of Canada shall effect manual clearing in accordance with the rules.

Marginal note:Establishment of clearing balances

48 The Association shall ensure that clearing is effected by the ACSS and clearing balances are made available to the Bank of Canada.

Marginal note:Errors in clearing balances

49 Direct clearers, group clearers and the Bank of Canada shall correct errors in their clearing balances prior to the final adjustment time and in accordance with the rules.

Settlement

Marginal note:Settlement

• 50 (1) Subject to subsection (2), once the clearing balances have been established by the ACSS and corrected, if necessary, the Bank of Canada shall effect settlement by making the appropriate debit or credit entry into each direct clearer’s or group clearer’s settlement account.

• Marginal note:Default

  (2) In the case of a default by a direct clearer or group clearer under paragraph 53(1)(a), the Bank of Canada shall only effect settlement once the contributions by the other direct clearers, group clearers or the Bank of Canada have been made under subsection 57(2) or 57.01(2).

Marginal note:Notification of settlement

51 The Bank of Canada shall notify a direct clearer or group clearer on settlement.

Marginal note:Settlement is final

52 Settlement at the Bank of Canada is final and shall not be reversed under any circumstances.

DIVISION 6Default

Default of Direct Clearer or Group Clearer

Marginal note:Default of direct clearer or group clearer

• 53 (1) A direct clearer or group clearer is in default for the purposes of this By-law if

  • (a) its settlement account at the Bank of Canada has a shortfall that would preclude settlement and it does not obtain an advance from the Bank of Canada sufficient for that settlement; or

  • (b) it is not able to meet its collateral pool pledge requirement as established by section 34.1.

• Marginal note:Notice

  (2) The Bank of Canada shall immediately notify the President of a default and, in the case of a default under paragraph (1)(a), of the amount of the shortfall. The President shall then notify all other direct clearers and group clearers of the default.

54 [Repealed, SOR/2012-161, s. 11]

55 [Repealed, SOR/2012-161, s. 11]

56 [Repealed, SOR/2012-161, s. 11]

Marginal note:Allocation of shortfall

• 57 (1) Subject to subsection (3), upon receiving notice from the Bank of Canada of a default by a direct clearer or group clearer under paragraph 53(1)(a) and of the amount of the shortfall, the Association shall allocate the shortfall between the direct clearers and group clearers that are not in default by calculating, in accordance with the rules, the default contribution to be made by each of them.

• Marginal note:Default contribution

  (2) The direct clearers and group clearers that are not in default shall make a default contribution to the settlement account of the direct clearer or group clearer in default in the amount determined under subsection (1) within the time and in the manner specified by the rules.

• Marginal note:Limit of contribution

  (3) The total amount of default contributions under subsection (2) from the direct clearers and group clearers that are not in default shall not exceed the amount of the ACSS collateral pool calculated in subsection 34.1(1), less the amount pledged as collateral by the defaulting direct clearer or group clearer.

Marginal note:Calculation of additional contribution

• 57.01 (1) In the event that the default contributions made under section 57 are not sufficient to enable the Bank of Canada to effect settlement, the Association shall calculate, in accordance with the rules, an additional contribution to be made by direct clearers and group clearers that are not in default and by the Bank of Canada to effect settlement.

• Marginal note:Additional contribution

  (2) The direct clearers and group clearers that are not in default and the Bank of Canada shall make the additional contribution, in the amount determined under subsection (1), to the account of the direct clearer or group clearer in default within the time and in the manner specified in the rules.

Marginal note:Reimbursement with interest

57.02 A direct clearer or group clearer shall reimburse each direct clearer, group clearer, or the Bank of Canada for any amount received as a contribution under subsection 57(2) or 57.01(2), plus interest at the rate specified in the rules, and those amounts constitute a debt that survives irrespective of the status of the defaulting direct clearer or group clearer.

Marginal note:Prohibition — entries into ACSS

57.1 A direct clearer or group clearer that is in default shall not make entries into the ACSS unless the direct clearer or group clearer or its assets are under the control or ownership of a federal or provincial regulator or supervisory body or any agent of Her Majesty in right of Canada or agent or mandatary of Her Majesty in right of a province.

Default of Indirect Clearer

Marginal note:Default of indirect clearer

58 An indirect clearer is in default in respect of its clearing agent for the purposes of this By-law if

• (a) the settlement account of the indirect clearer with its clearing agent has a shortfall that would preclude settlement; and

• (b) the indirect clearer does not obtain an advance sufficient for settlement.

59 [Repealed, SOR/2016-284, s. 2]

60 [Repealed, SOR/2012-161, s. 13]

61 [Repealed, SOR/2012-161, s. 13]

62 [Repealed, SOR/2012-161, s. 13]

Repeal

Marginal note:Repeal

63 [Repeal]

Coming into Force

Marginal note:Coming into force

64 This By-law comes into force on the day on which it is registered.