Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System (SOR/2003-346)
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Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System
SOR/2003-346
Registration 2003-10-23
Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System
P.C. 2003-1624 2003-10-23
The Board of Directors of the Canadian Payments Association, pursuant to the definition payment itemFootnote a in subsection 2(1) and to subsection 18(1)Footnote b of the Canadian Payments ActFootnote c, hereby makes the annexed Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System.
Return to footnote aS.C. 2001, c. 9, s. 219(3)
Return to footnote bS.C. 2001, c. 9, s. 233
Return to footnote cS.C. 2001, c. 9, s. 218
Ottawa, June 25, 2003
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 18(2) of the Canadian Payments ActFootnote c, hereby approves the annexed Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System, made by the Board of Directors of the Canadian Payments Association.
Interpretation
Marginal note:Definitions
1 The following definitions apply in this By-law.
- ACSS cycle
ACSS cycle means the period beginning immediately after the final adjustment time on a given business day and ending with the final adjustment time on the next business day. (cycle du SACR)
- Automated Clearing Settlement System
Automated Clearing Settlement System or ACSS means the system into which direct clearers, group clearers, clearing agents and the Bank of Canada make entries for the purpose of clearing. (système automatisé de compensation et de règlement ou SACR)
- business day
business day means any day other than an ACSS holiday specified in the rules. (jour ouvrable)
- clearing
clearing means the reconciliation of payment items that were exchanged and the calculation of the clearing balances. (compensation)
- clearing agent
clearing agent means the direct clearer or group clearer appointed under subsection 33(1) that, on behalf of an indirect clearer, exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (agent de compensation)
- clearing balance
clearing balance means the total of the net amounts owing to or by a member as a result of clearing. (solde de compensation)
- direct clearer
direct clearer means a member, other than the Bank of Canada, appointed under section 26 that, on its own behalf, exchanges payment items and makes entries into the ACSS. (adhérent)
- exchange
exchange means the delivery and receipt of payment items. (échange)
- federal credit union
federal credit union has the same meaning as in section 2 of the Bank Act. (coopérative de crédit fédérale)
- final adjustment time
final adjustment time means the time, set out in the rules, prior to which the correction of errors affecting the calculation of the clearing balance of a direct clearer or group clearer for the current ACSS cycle must be made. (heure finale de rajustement)
- final exchange
final exchange means the last exchange of payment items at each regional exchange point for the current ACSS cycle. (échange final)
- group
group means a group described in section 28 and includes the group clearer. (groupe)
- group clearer
group clearer means a member that, on its own behalf or on behalf of the entities belonging to the group in respect of which it is appointed in accordance with section 28, exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (adhérent-correspondant de groupe)
- indirect clearer
indirect clearer means a member on behalf of which a clearing agent exchanges payment items and either effects clearing and settlement or makes entries into the ACSS. (sous-adhérent)
- pledge
pledge means a grant to the Bank of Canada of security in collateral to guarantee an advance of funds that the Bank of Canada may make for the purposes described in section 34.2 and includes a grant of security in which the Bank of Canada does not take possession of the collateral. (nantissement)
- regional exchange point
regional exchange point means each location in Canada designated in the rules for the exchange of payment items among direct clearers, group clearers and clearing agents, or between one of them and the Bank of Canada, and includes the National Electronic Settlement Region within the meaning of the rules. (point régional d’échange)
- settlement
settlement means the payment of the clearing balance. (règlement)
- SOR/2012-161, s. 3
- SOR/2015-185, s. 21
- SOR/2018-16, s. 1
General
Marginal note:Notices
2 (1) Every notice required under this By-law shall be given in accordance with the rules.
Marginal note:Waiver of notice
(2) Any person entitled to be given notice under this By-law may waive the notice.
PART 1Payment Items
DIVISION 1Application
Marginal note:Application — exchanges
3 (1) This Part applies to the following exchanges:
(a) in respect of payment items giving rise to clearing through the ACSS,
(i) the exchange among direct clearers, group clearers and clearing agents, or between one of them and the Bank of Canada, and
(ii) the exchange between indirect clearers through their respective clearing agent; and
(b) in respect of payment items not giving rise to clearing through the ACSS,
(i) the exchange between an indirect clearer and its clearing agent,
(ii) the exchange between indirect clearers that are represented by the same clearing agent, through that agent,
(iii) the exchange between a group clearer and an entity belonging to the group, and
(iv) the exchange among the entities belonging to a group, through the group clearer.
Marginal note:Application — clearing and settlement
(2) This Part also applies to the clearing of payment items that are the object of an exchange referred to in subsection (1) and to the resulting settlement.
DIVISION 2General
Marginal note:Obligation — non-member entities
4 Every member that exchanges payment items and either effects clearing and settlement or makes entries into the ACSS on behalf of a local referred to in subparagraph 6(1)(a)(ii) shall ensure that the local complies with the by-laws and the rules as if it were a member.
- SOR/2010-43, s. 55
Marginal note:Means of settlement
5 Settlement is effected by one of the following means, as specified in the rules:
(a) [Repealed, SOR/2021-182, s. 54]
(a.1) by a payment message as defined in section 1 of the Canadian Payments Association By-law No. 9 — Lynx;
(b) on the basis of clearing balances established by the ACSS; or
(c) through a clearing agent.
DIVISION 3Payment Items Acceptable for Clearing
Classes of Payment Items
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, or
(ii) a local that belongs to a central or a cooperative credit association that is a member; and
(iii) [Repealed, SOR/2010-43, s. 56]
(b) they
(i) are payable on demand,
(ii) are identified in accordance with 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.
- SOR/2010-43, s. 56
- SOR/2012-161, s. 4
Government Payment Items
Marginal note:Government payment items
7 Paper-based payment items and electronic payment items drawn on or by the Receiver General of Canada and payable by the Government of Canada that are specified in the rules may be exchanged for the purpose of clearing and settlement.
International Payment Items
Marginal note:Classes of international payment items
8 International payment items that are specified in the rules and that fall within a class specified in the rules may be exchanged for the purpose of clearing and settlement.
Payment Items in Dispute
Marginal note:Prohibition
9 Members shall not exchange, for the purpose of clearing and settlement, payment items in dispute within the meaning of the rules.
10 [Repealed, SOR/2012-161, s. 5]
11 [Repealed, SOR/2012-161, s. 5]
12 [Repealed, SOR/2012-161, s. 5]
13 [Repealed, SOR/2012-161, s. 5]
DIVISION 4Exchange, Clearing and Settlement
Marginal note:Exchange irrevocable and irreversible
14 Every exchange of a payment item shall become irrevocable and irreversible at the time specified in the rules or, failing such time, when settlement is effected.
Marginal note:Compliance with by-laws and rules
15 Every member shall exchange payment items in accordance with the by-laws and the rules and ensure that its payment items comply with the provisions of the by-laws and the rules.
Marginal note:Settlement account — indirect clearers
16 (1) Every indirect clearer shall maintain a settlement account with each of its clearing agents.
Marginal note:Loan facilities
(2) Every indirect clearer shall establish a loan facility with each of its clearing agents.
Marginal note:Settlement account and loan facility
(3) An indirect clearer may maintain a settlement account and establish a loan facility with a central that has been designated in accordance with subsection 33(2).
- SOR/2012-161, s. 6
DIVISION 5Return of Payment Items
Marginal note:Returns in accordance with the rules
17 Despite section 14, payment items, the exchange of which becomes irrevocable and irreversible when settlement is effected, may be returned after settlement in accordance with, and for the reasons set out in, the rules.
Marginal note:Acceptance of returned payment items
18 Every member shall accept payment items returned to it in accordance with the rules.
PART 2Automated Clearing Settlement System
DIVISION 1Application
Marginal note:Application
19 This Part applies to the exchange of payment items giving rise to clearing through the ACSS, and to the clearing of those payment items and the resulting settlement.
DIVISION 2General
Marginal note:Exclusion of liability
20 Neither the Association nor a director, an officer or an employee is liable for any loss or damage suffered by a member for anything done or omitted to be done, honestly and in good faith, in relation to the ACSS, in the administration or discharge of any powers or duties that under this By-law are intended or authorized to be executed or performed.
- SOR/2010-43, s. 57
Marginal note:Ownership
21 The Association owns the ACSS.
- Date modified: