Domestic Bonds of Canada Regulations (C.R.C., c. 698)

Transmission and Transfer of Registered Bonds on Death of Registered Owner

• 19 (1) Where the registered owner of a bond has died, the Bank, upon receipt of the bond and the appropriate documents specified in subsection (2),

  • (a) shall register ownership of the bond in the name of the estate of the deceased or of his personal representative, as may be appropriate; or

  • (b) may, if such registration is permitted by the terms of the bond, issue a new bond with ownership registered as prescribed in paragraph (a).

• (2) The appropriate documents referred to in subsection (1) are

  • (a) an authenticated or notarial copy of letters probate of the will of the deceased owner or of letters of administration of his estate, granted by a court or authority in Canada having power to grant probate or administration of such an estate;

  • (b) where the deceased was, at the time of his death, domiciled in the Province of Quebec, proof of death and

    • (i) where the will of the deceased owner was made in notarial form, an authentic copy of that will,

    • (ii) where the will was made in holograph form or in a form derived from the laws of England, a copy of the will, certified by the prothononotary, together with a certified copy of the judgment granting probate,

    • (iii) an authentic copy of a marriage contract containing an unrevoked gift made in contemplation of death, or

    • (iv) where the deceased owner died intestate without having made a marriage contract containing an unrevoked gift made in contemplation of death, a declaration of heredity and, if required, a certified copy of an act of tutorship or curatorship confirmed by a judgment of a court having power to confirm the same; or

  • (c) where the deceased was, at the time of his death, domiciled in a country other than Canada, an authenticated or notarial copy of the probate of the will, letters of administration of his estate or other documents of like import, satisfactory to the Bank, granted by the court or authority of that country having the requisite power in such matters.

• (3) Where ownership of a bond has been registered in the name of the estate of a deceased person or of his personal representative, it may be transferred upon completion of an instrument of transfer executed in accordance with sections 13 to 18 or, in the discretion of the Bank, upon execution by a person acceptable to the Bank of a sworn declaration, setting forth such facts and information as the Bank may require, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name.

• (4) Where the registered owner of a bond has died, the Bank may, upon receipt of the bond and the documents specified in subsections (2) and (3), transfer ownership of the bond to a person other than a person specified in subsection (1) or to bearer without first having registered it in the name of the estate of the deceased or of his personal representative, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name.

• 20 (1) Subject to subsection (2), where the registered owner of a bond has died, and

  • (a) the Bank is satisfied that no person intends to apply for a grant of

    • (i) letters probate of the will, or

    • (ii) letters of administration of the estate of the deceased, and

  • (b) application has been made to the Bank in a form prescribed by the Bank for the transfer of the bond,

  the Bank may, notwithstanding that it has not been furnished with the documents specified in section 19,

  • (c) if the bond is by its terms transferable, give effect to a transfer of the bond, or

  • (d) if the bond is by its terms not transferable, cancel the bond and issue a new bond for an equal principal amount of like issue,

  to the person that the Bank is satisfied is entitled thereto by reason of the death of the registered owner.

• (2) The Bank may give effect to the transfer of a bond, or issue a new bond, to a person pursuant to subsection (1) only where

  • (a) there is an intestacy and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person is entitled to the entire estate;

  • (b) there is a will and that person is the sole beneficiary and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person would have been entitled to the entire estate had the deceased died intestate; or

  • (c) the aggregate face value of all bonds of which the deceased was registered as owner at the time of his death did not exceed $20,000.

Transfer or Redemption Pursuant to Court Order

• 21 (1) Where a registered bond has been seized pursuant to a writ of exemption or other like process issued out of a court,

  • (a) in the case of a bond that is transferable, upon presentation of the bond and an authenticated copy of the writ of execution or other like process issued out of the court, the Bank may register the sheriff to whom the writ of execution or other like process is directed as owner of the bond or enter his name in the bond accordingly; and

  • (b) in the case of a bond that is not transferable, upon presentation of the bond and an authenticated copy of a writ of execution or other like process issued out of the court, the Bank may redeem the bond and pay the value thereof to the sheriff to whom the writ of execution or other like process is directed.

• (2) Where a court orders the sale or transfer of a registered bond that is transferable or makes an order vesting such a bond in a person other than the registered owner,

  • (a) if the name of the person who is to be registered as owner is specified in the order of the court, the Bank may, upon presentation of the bond and an authenticated copy of the order, register that person as the owner of the bond and enter his name in the bond accordingly; or

  • (b) if the order of the court authorizes a person to transfer the bond in the place of the registered owner, the Bank may, upon presentation of the bond and an authenticated copy of the order, give effect to an instrument of transfer executed by the person so authorized.

• (3) Where a court orders the sale of a registered bond that is not transferable or makes an order vesting such a bond in a person other than the registered owner, if the name of the person to whom payment is to be made upon sale of the bond or in whom the bond is vested is specified in the order, the Bank may, upon presentation of the bond and an authenticated copy of the order, redeem the bond and pay the value thereof to the person named in the order as the person to whom payment is to be made or in whom the bond is vested.

Whereabouts of Registered Owner Unknown or not Available

• 22 (1) Where it appears to the Bank that the whereabouts of a person in whose name a bond is registered is unknown and application is made to the Bank for transfer or redemption of the bond, the Bank may, in its discretion, transfer the ownership of or redeem the bond if a bond of indemnity in accordance with subsection 38(1) is given to the Bank.

• (2) Where a bond is in the possession of Her Majesty or the Bank and the owner of the bond cannot be located, or Her Majesty or the Bank had been requested to retain the bond in safekeeping, the bond may, notwithstanding anything in these Regulations, be treated, on the date of maturity, as though it had been redeemed, and a liability shall be set up in the books of the Department of Finance, in the amount of the bond and any interest that accumulated thereon to the date of maturity,

  • (a) where the bond is registered, in favour of the registered owner; and

  • (b) where the bond is not registered, in favour of the person who establishes that he is the owner,

    • (i) to the satisfaction of the Minister of Finance, if the bond is in the possession of Her Majesty, or

    • (ii) to the satisfaction of the Bank, if the bond is in the possession of the Bank.

Married Women

23 The Bank may register a bond in the name of a married woman or may transfer or redeem a bond upon the authority of the signature of a married woman, without the consent of her husband, whether such married woman is acting as a principal or in a representative capacity.

Minors

• 24 (1) A bond may be registered in the name of a person whether or not he is a minor or is qualified by law to enter into ordinary contracts.

• (2) Where a bond is registered in the name of a minor who is not unable by reason of immaturity to write his name,

  • (a) an instrument of transfer executed by him shall have the same effect, for the purposes of these Regulations, as if he were of the full age of majority and the Bank may make payments under the bond to him and accept acquittances thereof from him as if he were of the full age of majority; and

  • (b) where evidence is furnished to the Bank that a guardian or tutor of the minor has been appointed, the Bank may make payments under the bond to such guardian or tutor and may accept acquittances in respect thereof executed by such guardian or tutor on behalf of the registered owner, and such guardian or tutor may execute an instrument of transfer on behalf of the registered owner.

• (3) Where the Bank is satisfied that the registered owner of a bond, being a minor, is unable by reason of immaturity to write his name,

  • (a) an instrument of transfer may be executed on behalf of the registered owner by the guardian; and

  • (b) the Bank may make payments under the bond to the guardian and may accept acquittances in respect thereof executed by such guardian on behalf of the registered owner and for the purposes of this subsection, evidence of age in the form of a certificate of birth or other evidence satisfactory to the Bank may be accepted as proof of age, but where in addition to the guarantee of the signature of the guardian his authority to sign is guaranteed as set forth in subsection 15(2), no such evidence shall be required.

• (4) For the purposes of subsection (3), guardian, where used with reference to a registered owner of a bond who is unable by reason of immaturity to write his name, means,

  • (a) where the registered owner is resident in the Province of Quebec and evidence satisfactory to the Bank is produced that a tutor has been appointed, the tutor of the registered owner;

  • (b) where the registered owner is resident elsewhere than in the Province of Quebec and evidence satisfactory to the Bank is produced that a guardian has been officially appointed, the guardian of the registered owner; and

  • (c) in any other case, either parent of the registered owner, except that

    • (i) if evidence satisfactory to the Bank is produced that only one parent has actual custody and control of the registered owner, the parent who satisfies the Bank that he has actual custody and control of the registered owner, or

    • (ii) if evidence satisfactory to the Bank is produced that neither parent has actual custody and control of the registered owner, the person who satisfies the Bank that he has actual custody and control of the registered owner.

Partnerships and Unincorporated Associations

• 25 (1) The partners in a partnership or the members for the time being of an unincorporated association not being a partnership may be registered as owners of a bond under the firm name or the name of the association.

• (2) Where members for the time being of an unincorporated association have been registered as owners of a bond as provided in subsection (1), instruments of transfer, acquittances or other documents furnished under these Regulations by the duly authorized officers for the time being of the association shall, for the purposes of these Regulations, be binding on the members of the association.

Closing of Books

26 Where bonds are registered as to principal and interest, nothing in these Regulations shall be deemed to require the Bank to make exchanges or registrations or to give effect to instruments of transfer in connection therewith during any period, which the Bank considers reasonable, immediately preceding the date of any interest payment on such bonds.

Damaged or Missing Bonds and Unmatured Attached Coupons

• 27 (1) Where a bond or an unmatured coupon belonging to a bond has been damaged, defaced or mutilated and all parts of the bond and all unmatured coupons belonging to it, if any, that, in the opinion of the Bank are material, have been surrendered to the Bank, the Bank may forthwith issue a new bond and appropriate coupons in place of them.

• (2) If all parts of a bond and unmatured coupons belonging to it, if any, mentioned in subsection (1), are not surrendered to the Bank, the Bank may, if in its opinion the missing parts are material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before a new bond is issued or the Bank may require that the bond and coupons be treated as destroyed, lost or stolen, as the case may be.

• 28 (1) Subject to this section, where

  • (a) it appears to the Bank that a bond and unmatured coupons attached to it, if any, have been destroyed, lost or stolen, and

  • (b) a bond of indemnity in accordance with section 38 is given to the Bank,

  the Bank may, in its discretion, issue a new bond and appropriate coupons in place of the bond and coupons that were destroyed, lost or stolen.

• (2) Before issuing a new bond pursuant to subsection (1), the Bank may, in its discretion, require that the following period shall elapse after notice is received by the Bank of the alleged destruction, loss or theft:

  • (a) six months, in the case of a destroyed bond;

  • (b) six months, in the case of a lost or stolen bond registered as to principal and interest and for which no instrument of transfer to bearer has been executed;

  • (c) one year, in the case of a lost or stolen bond registered as to principal and for which no instrument of transfer to bearer has been executed; or

  • (d) two years, in any other case.

• (3) Where it appears to the Bank that a bond has been destroyed, lost or stolen after it has been paid for by a subscriber and before it was received by him, the Bank may, in its discretion, waive the waiting period specified in subsection (1) and, where the subscriber is or was an employee of Her Majesty in right of Canada who purchased the bond under the Plan commonly known as the “Employees’ Instalment Purchase Plan”, the Bank, on instructions from the Deputy Minister of Finance, shall issue a new bond without requiring a bond of indemnity to be given to the Bank, but the Deputy Minister of Finance shall not issue such instructions unless the person to whom the new bond is to be issued gives to the Deputy Minister of Finance such information and material, including an undertaking to indemnify the Bank and the Government of Canada for any loss resulting from the issue of the new bond, as the Deputy Minister of Finance considers appropriate.

• (4) Where it appears to the Bank that a bond that has matured or has been called for payment before maturity has been destroyed, lost or stolen, the Bank may, if a bond of indemnity described in section 38 is given to it, pay to the owner, in redemption of the bond, an amount equal to the amount payable on maturity or on call, as the case may be.

• (5) Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond, for the purposes of subsection 38(2), shall be deemed to be a bond of which that person is registered as owner as to principal and interest.

• (6) Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond shall, for the purposes of subsection 38(2), be deemed to be a bond of which that person is registered as owner as to principal and interest.

• (7) Where it appears to the Bank that a non-interest bearing certificate has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the certificate to the registered owner if he gives to the Bank an undertaking to indemnify in accordance with section 37.