GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Payment Clearing and Settlement Act — P-4.4 11.11
Additional powers 11.11 (1) If the Governor of the Bank has made an order under subsection 11.09(1), the Governor may, by order, (a) require any participant to make a contribution of cash or cash equivalents to the clearing house within a specified time; (b) reduce the amount of a variation margin gain returnable to a participant; (c) require any participant to make a contribution to the clearing house’s default fund within a specified time; (d) transfer a contract between the clearing house or the central counter-party and a participant to another participant; (e) terminate or liquidate a contract, in whole or in part, between the clearing house or the central counter-party and a participant; (f) write-down fully or partially the equity of the shareholders, partners or owners of the clearing house; or (g) take any measures that the Governor of the Bank considers necessary to allocate among the participants the amount of the shortfall due to the clearing house. Condition precedent (2) The Governor of the Bank shall only make an order under subsection (1) if the Governor is of the opinion that the order is necessary for the stability of the financial system in Canada. Effect of transfer of contract (3) If a contract is transferred under paragraph (1)(d), the Bank shall transfer all of (a) the clearing house’s or the central counter-party’s obligations arising from the contract; and (b) the clearing house’s or the central counter-party’s interest or right in property that secures its obligations under the contract. Non-application (4) An order made under any of paragraphs (1)(a) to (e) or (g) does not apply in respect of a participant that is a limited clearing member within the meaning of the regulations. For greater certainty (5) For greater certainty, an order is not necessary for any of the actions described under subsection (1) if those actions are provided for under the settlement rules as defined in subsection 8(5). Order and action final (6) An order made under subsection (1) and any action taken or decision made in furtherance of the order are for all purposes final. Notice (7) After an order is made under subsection (1), the Governor of the Bank shall, without delay, notify (a) the Minister; (b) the committee established under subsection 11.04(1); (c) the clearing house; and (d) any government authority or regulatory body that has entered into an agreement or arrangement with the Bank under section 13.3 related to the clearing and settlement system. Publication (8) The Governor of the Bank shall cause a copy of the order to be published in the Canada Gazette . 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.12
Request to Minister 11.12 (1) The Governor of the Bank may request the Minister to issue letters patent incorporating a company under the Trust and Loan Companies Act . Order to commence and carry on business (2) The Superintendent of Financial Institutions shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the company. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.13
Power of Governor of Bank 11.13 (1) If the Bank is the sole shareholder, the Governor of the Bank may designate as a bridge clearing house a corporation incorporated under the Canada Business Corporations Act or a company referred to in section 11.12. Termination of designation (2) A corporation’s or company’s designation as a bridge clearing house terminates if (a) the Bank is no longer the sole shareholder; or (b) the corporation or company is amalgamated with a body corporate that is not a bridge clearing house. For greater certainty — not a Crown corporation (3) For greater certainty, a bridge clearing house is not a Crown corporation , as defined in subsection 83(1) of the Financial Administration Act . 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.14
Terms and conditions of transactions 11.14 (1) If the Bank, as receiver for a clearing house, carries out a transaction with a bridge clearing house, the Bank shall establish the terms and conditions of the transaction, including (a) which assets the bridge clearing house shall acquire and the consideration to be paid for them; and (b) which liabilities the bridge clearing house shall assume and the consideration to be paid for them. Reasonable consideration (2) The consideration referred to in paragraph (1)(a) shall be reasonable in the circumstances. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.15
Canadian Payments Act 11.15 (1) The application of sections 4.1, 8 to 16.1, 19.2, 19.3, 20 and 22 to 25 of the Canadian Payments Act is suspended while the Canadian Payments Association is in resolution. Canadian Payments Association rules (2) If an exit plan is approved by the Minister, the changes to the rules included in the exit plan under subsection 11.2(4) are not subject to section 19.2 of the Canadian Payments Act . 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.16
Trust and Loan Companies Act 11.16 Sections 375, 375.1, 376, 379 and 396 and subsection 399(2) of the Trust and Loan Companies Act do not apply in respect of: (a) a clearing house incorporated under that Act that is in resolution; or (b) a bridge clearing house incorporated under that Act. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.17
Order — Canadian Payments Act 11.17 (1) If an order is made under paragraph 11.09(1)(a), the Governor in Council may, by order, suspend the application of any provision of Part 1 of the Canadian Payments Act until the day on which the clearing and settlement system or clearing house is no longer in resolution. Order — other Acts (2) The Governor in Council may, by order, exempt a clearing house that is in resolution or a bridge clearing house from the application of any provision of the Trust and Loan Companies Act or the Canada Business Corporations Act or the regulations made under them. The order ceases to be in effect on the day on which, as the case may be, (a) the clearing house is no longer in resolution; or (b) the designation of the corporation as a bridge clearing house terminates. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.18
Cost recovery 11.18 The Bank may, in accordance with the regulations, recover the costs of the resolution of a clearing and settlement system or a clearing house. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.19
Loans to Bank 11.19 (1) At the request of the Governor of the Bank, the Minister may, out of the Consolidated Revenue Fund, lend money to the Bank, on the terms and conditions specified by the Minister, for the purpose of assisting the Bank in carrying out its objects as the resolution authority. Total indebtedness (2) The total principal indebtedness outstanding at any time in respect of borrowings under subsection (1) shall not exceed $3,200,000,000. Fees for borrowing (3) The Minister may fix a fee to be paid by the Bank to the Receiver General in respect of any borrowings by the Bank and the Minister shall notify the Bank in writing of any such fee. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.2
Exit plan 11.2 (1) For a clearing and settlement system or clearing house that is in resolution, the Bank shall, as soon as feasible, develop an exit plan to end resolution. Consultation (2) In developing the exit plan for a clearing and settlement system or a clearing house, the Bank shall consult with the committee established under subsection 11.04(1) and any government authority or regulatory body that has entered into an agreement or arrangement with the Bank under section 13.3 related to that clearing and settlement system. Contents of plan (3) The exit plan shall contain, among other things (a) the expected timeline for implementation of the plan; (b) all proposed transactions to restructure the clearing house; (c) the recovery of the costs of the resolution; and (d) the repayment schedule of any loan made under subsection 11.19(1). Canadian Payments Association rules (4) In the case of the Canadian Payments Association, the exit plan shall also include any change to the rules made under subsection 19(1) of the Canadian Payments Act since the order was made under paragraph 11.09(1)(a). Prior approval of Minister (5) The exit plan shall not be implemented unless it has been approved by the Minister. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.21
Restructuring transactions 11.21 (1) If an order is made under paragraph 11.09(1)(a), the Bank may, in accordance with the exit plan and for the purpose of restructuring the business of the Canadian Payments Association, sell or otherwise alienate all or part of the Association’s assets or carry out any transaction that provides for the assumption by another person or entity of all or part of its liabilities. Restructuring transactions — receivership order (2) If an order is made under subparagraph 11.09(1)(b)(i), the Bank may, in accordance with the exit plan and for the purpose of restructuring the business of the clearing house, carry out any transaction, including a transaction that involves the sale or other alienation of all or part of the clearing house’s assets or the assumption by another person or entity of all or part of its liabilities. Restructuring transactions — vesting order (3) If an order is made under subparagraph 11.09(1)(b)(ii) the Bank may, in accordance with the exit plan and for the purpose of restructuring the business of the clearing house, carry out any transaction, including a transaction that involves (a) the sale or other alienation of all or part of the shares of the clearing house; (b) the amalgamation of the clearing house; (c) the sale or other alienation by the clearing house of all or part of its assets; or (d) the assumption by another person or entity of all or part of the clearing house’s liabilities. Restrictions inapplicable (4) No restriction on the rights of the clearing house, including the right to amalgamate, to sell or otherwise alienate any of its assets or to provide for the assumption of any of its liabilities, other than a restriction provided for in an Act of Parliament, applies so as to prevent the Bank or the clearing house from carrying out a transaction referred to in this section. Transfer of liabilities (5) Any person or entity who assumes an obligation or liability of the clearing house under a transaction referred to in any of subsections (1) to (3) becomes liable — instead of the clearing house — in respect of the obligation or liability. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.22
Liquidator bound 11.22 (1) The liquidator of a clearing house appointed under the Winding-up and Restructuring Act is bound by the terms and conditions of any transaction that involves the sale or other alienation of the clearing house’s assets or the assumption by a bridge clearing house of any portion of the clearing house’s liabilities and shall carry out those transactions or cause them to be carried out. Expenses (2) All costs, charges and expenses properly incurred by the liquidator in complying with the terms and conditions of any transaction referred to in subsection (1), including the liquidator’s remuneration, are payable by the bridge clearing house. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.23
Dissolution 11.23 (1) The Bank may, if it is a shareholder of a clearing house, take any measure in respect of the dissolution of the clearing house. Winding-up and Restructuring Act (2) The Bank may, if it is a shareholder of a clearing house that is incorporated under the Trust and Loan Companies Act , apply for a winding-up order in respect of the clearing house under the Winding-up and Restructuring Act . Bank considered to be creditor (3) For the purposes of the Winding-up and Restructuring Act , the Bank is considered to be a creditor of the clearing house that is incorporated under the Trust and Loan Companies Act . 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.24
Notice — end of resolution 11.24 If the Bank considers that the exit plan has been substantially implemented, it shall cause a notice to that effect to be published in the Canada Gazette . The notice must specify the day on which the clearing and settlement system or clearing house is no longer in resolution. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.25
No compensation — Canadian Payments Association 11.25 If an order is made under paragraph 11.09(1)(a), neither the Canadian Payments Association nor its members are entitled to compensation as a result of the receivership of the Association. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.26
Amount of compensation 11.26 (1) If an order is made under paragraph 11.09(1)(b) or subsection 11.11(1), the Bank shall, in accordance with the regulations, determine the amount of compensation, if any, to be paid to a prescribed person or entity. Entitlement to compensation (2) A person or entity that was a prescribed person or entity at the time a declaration of non-viability was made is entitled to be paid compensation only if they are in a worse financial position than they would have been if (a) in the case of a clearing house incorporated under the Trust and Loan Companies Act , the clearing house had been liquidated under the Winding-up and Restructuring Act at the time a declaration of non-viability was made; or (b) in all other cases, the clearing house had become bankrupt and been liquidated at the time a declaration of non-viability was made and the measures to address financial loss, shortfalls in liquidity or capital adequacy that were specified in its by-laws or rules, or in an arrangement that relates to the clearing and settlement system, were exhausted. Duty to pay compensation (3) The Bank shall pay the compensation and shall decide whether to pay it wholly or partly in cash or wholly or partly in any other form, including shares, that the Bank considers appropriate. Compensation not payable (4) No compensation is payable under subsection (1) before the 90th day after the day on which the clearing and settlement system or clearing house is no longer in resolution. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.27
Discharge of liability 11.27 Payment of the compensation by the Bank under section 11.26 discharges the Bank from its obligations under that section and in no case is the Bank under any obligation to see to the proper application in any way of any such payment. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.28
Appointment of assessor 11.28 (1) In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge of a superior court to review a determination made by the Bank under subsection 11.26(1). Review (2) In reviewing the Bank’s determination, the assessor shall decide whether the Bank made its determination based on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it or on an unreasonable estimate. Confirmation of determination (3) If the assessor decides that the Bank did not make its determination based on such a finding of fact or on such an estimate, the assessor shall confirm the Bank’s determination. Determination of amount (4) If the assessor decides that the Bank made its determination based on such a finding of fact or on such an estimate, the assessor shall determine, in accordance with the regulations, the amount of compensation, if any, to be paid to the prescribed person or entity and substitute the assessor’s determination for the Bank’s determination. 2018, c. 12, s. 234 2021, c. 23, s. 134
Payment Clearing and Settlement Act — P-4.4 11.29
Sittings and hearings 11.29 (1) The assessor may sit at any place and shall arrange for the sittings and hearings that may be required. Powers of assessor (2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath or solemn affirmation. Assistance (3) The assessor may appoint a person or entity to assist him or her in exercising his or her powers or performing his or her duties and functions. Payment (4) Fees and disbursements payable to the person or entity may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6). Costs payable by Bank (5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person or entity and against the Bank, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Bank to the prescribed person or entity. Costs payable to Bank (6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Bank and against a prescribed person or entity, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person or entity to the Bank and may be recovered as such in any court of competent jurisdiction. 2018, c. 12, s. 234
Payment Clearing and Settlement Act — P-4.4 11.3
Determination and decision final 11.3 A determination or decision made by an assessor appointed under section 11.28 or, subject to that section, by the Bank under section 11.26 is for all purposes final. 2018, c. 12, s. 234 2021, c. 23, s. 135
Payment Clearing and Settlement Act — P-4.4 12
Other powers 12 The Bank may do all or any of the following: (a) be a participant in a clearing and settlement system and participate in its loss-sharing mechanism; (b) act as a custodian of financial assets or act as a settlement agent, or both, for a clearing house; (c) despite section 23 of the Bank of Canada Act , accept and pay interest on deposits from a clearing house, participant or central counter-party. 1996, c. 6, s. 162 (Sch., s. 12); 2014, c. 39, s. 368
Payment Clearing and Settlement Act — P-4.4 12.01
Cooperation 12.01 If a clearing and settlement system is operated by a clearing house that is not located in Canada, the Bank may cooperate with the foreign resolution authority of that clearing house. 2018, c. 12, s. 235
Payment Clearing and Settlement Act — P-4.4 12.1
Bank may impose fees 12.1 (1) The Bank may annually impose a fee on a clearing house for the reasonable costs to the Bank of the administration of this Act for that year in respect of the clearing house’s designated clearing and settlement system. Recovery of fees (2) A fee imposed under subsection (1) constitutes a debt due to the Bank and may be recovered as such in any court of competent jurisdiction. 2014, c. 39, s. 368
Payment Clearing and Settlement Act — P-4.4 (a)
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, (c) a futures agreement or a futures account, (d) an assignment of a right to payment or delivery against a clearing house, or (e) any other collateral that is prescribed. ( garantie financière )
Payment Clearing and Settlement Act — P-4.4 (a)
financial institution means (a) a financial institution within the meaning of section 2 of the Trust and Loan Companies Act , (b) such other entity or entity within a class of entities engaged primarily in the business of providing financial services as may be designated by order of the Governor in Council to be a financial institution for the purposes of this section, (c) a trustee, manager or administrator of a pension fund maintained to provide benefits under a pension plan registered under the Income Tax Act , (d) the Canada Pension Plan Investment Board, or (e) the Public Sector Pension Investment Board. ( institution financière )
Payment Clearing and Settlement Act — P-4.4
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. ( reliquat net )
Payment Clearing and Settlement Act — P-4.4 (a)
netting agreement means an agreement between two or more financial institutions, between the Bank and one or more financial institutions or between a participant and a customer to which the participant provides clearing services 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. ( accord de compensation )
Payment Clearing and Settlement Act — P-4.4
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. ( accord de transfert de titres pour obtention de crédit )
Payment Clearing and Settlement Act — P-4.4
clearing member means a person who uses the services of a securities and derivatives clearing house. ( membre )
Payment Clearing and Settlement Act — P-4.4
net termination value means the net amount obtained after setting off or compensating or otherwise netting the obligations between a securities and derivatives clearing house and a clearing member in accordance with the netting agreement. ( reliquat net )
Payment Clearing and Settlement Act — P-4.4 (a)
netting agreement means an agreement between a securities and derivatives clearing house and a clearing member that is (a) an eligible financial contract; or (b) an agreement that provides for the netting or setting off or compensation of present or future obligations to make payments or deliveries against present or future rights to receive payments or take deliveries. ( accord de compensation )
Payment Clearing and Settlement Act — P-4.4 (a)
securities and derivatives clearing house means, in addition to an entity designated under subsection (2), (a) the Canadian Derivatives Clearing Corporation, incorporated under the Canada Business Corporations Act ; (b) the CDS Clearing and Depository Services Inc., a corporation incorporated under the Canada Business Corporations Act ; or (c) the WCE Clearing Corporation, incorporated under The Corporations Act , chapter C225 of the Re-enacted Statutes of Manitoba 1987. ( chambre spécialisée )
Payment Clearing and Settlement Act — P-4.4 13.2
Clearing house or participant 13.2 The Bank may enter into an agreement with a clearing house or a participant, or both, in respect of (a) netting arrangements; (b) risk-sharing and risk-control mecha­nisms; (c) certainty of settlement and finality of payment; (d) the nature of financial arrangements among participants; (e) the operational systems and financial soundness of the clearing house; (e.1) the exercise of the Bank’s powers and the performance of its duties and functions; and (f) any other matters pertaining to systemic risk or payments system risk. 2014, c. 39, s. 369; 2017, c. 33, s. 192
Payment Clearing and Settlement Act — P-4.4 13.3
Cooperation 13.3 The Bank may enter into an agreement or arrangement with any government authority or regulatory body for the purpose of consulting, sharing information and coordinating their actions with respect to clearing and settlement systems. 2014, c. 39, s. 369