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

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,

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

    • (iii) until December 31, 2006, an entity that is not a member but that accepts deposits transferable by order to a third party and that is entitled to be a member of the Association under subsection 4(2) of the Canadian Payments Act on the day on which this By-law comes into force; and

  • (b) they

    • (i) are payable on demand,

    • (ii) are identified in accordance with section 10 and 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.