Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
Marginal note:1996, c. 6 (Sch.)
Payment Clearing and Settlement Act
110. Section 2 of the Payment Clearing and Settlement Act is amended by adding the following in alphabetical order:
“eligible financial contract”
« contrat financier admissible »
“eligible financial contract” has the same meaning as in subsection 22.1(2) of the Winding-up and Restructuring Act;
111. (1) Section 13 of the Act is amended by adding the following after subsection (1):
Marginal note:Eligible financial contract
(1.1) If a netting agreement referred to in subsection (1) is an eligible financial contract, the financial institution or the Bank may also, in accordance with the provisions of that agreement, deal with financial collateral including
(a) selling or foreclosing or, in the Province of Quebec, surrendering financial collateral; and
(b) setting off or compensating financial collateral or applying the proceeds or value of financial collateral.
Marginal note:1999, c. 28, s. 133(2)
(2) The definition “netting agreement” in subsection 13(2) of the Act is replaced by the following:
“netting agreement”
« accord de compensation »
“netting agreement” means an agreement between two or more financial institutions or between the Bank and one or more financial institutions that is
(a) an eligible financial contract, or
(b) an agreement that provides for the netting or set-off or compensation of present or future obligations to make payments against the present or future rights to receive payments.
(3) The definition “net termination value” in subsection 13(2) of the English version of the Act is replaced by the following:
“net termination value”
« reliquat net »
“net termination value” means the net amount obtained after setting off or compensating or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions;
(4) Subsection 13(2) of the Act is amended by adding the following in alphabetical order:
“financial collateral”
« garantie financière »
“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:
(a) cash or cash equivalents, including negotiable instruments and demand deposits,
(b) securities, a securities account, a securities entitlement or a right to acquire securities, or
(c) a futures agreement or a futures account;
“title transfer credit support agreement”
« accord de transfert de titres pour obtention de crédit »
“title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract;
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