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

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.