Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System

Marginal note:Obligation to reimburse

12 If, because of the nature of any endorsement or because an endorsement is forged or unauthorized, it appears that a payment was improperly made, or if any missing necessary endorsement is not supplied within the time specified in the rules, the direct clearer, group clearer or clearing agent shall reimburse, in accordance with the rules, the amount of the payment item to the direct clearer, group clearer or clearing agent by which it was paid the amount.