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

Marginal note:Direct Clearers Appointment

26 Subject to section 32, the Board may, on completion by a member of the application procedures set out in the rules, appoint the member to act as a direct clearer if the member

• (a) maintains a settlement account with the Bank of Canada;

• (b) has established a loan facility with the Bank of Canada and has entered into any agreements that may be required by the Bank of Canada governing the settlement of the member’s clearing balance, the administration of the loan facility, the provision by the Bank of Canada of advances for ACSS purposes and the pledging of collateral to secure advances that may be made under the loan facility;

• (c) has a payment items volume of no less than 0.5% of the total national volume of payment items giving rise to clearing through the ACSS, as determined in accordance with the rules, or any lower percentage of that volume that may be set out in the rules; and

• (d) meets the technical, financial and other requirements set out in the rules.