index...

INDEX

ACCEPTANCE FOR HONOUR

generally, §30:20.20intervention, conditions for effective, §30:30.10

ACCEPTANCE OF BILL

additional name, §22:90.30(2)agent, by, §22:90.30(1)assignment distinguished, §28:20.30

certification of cheque as, §34:70.60(3)communication of, §23:20.30conditional, §22:90.60(2)

defined, §21:20.10, §22:90.10delivery of, §22:90.20dishonour by refusal of, §27:20.40draft distinguished, §21:20.10

drawee, by, §22:90.30forged, §23:40.30, §23:40.70(3)formalities of, §22:90, §22:90.40

forms of. See FORMS OF ACCEPTANCE OF BILLhonour, for. See ACCEPTANCE FOR HONOURlimitation period on bank’s liability on, §28:110.10

meaning of term, §21:20.10, §22:90.10notification of, §22:90.20, §23:20.30partial, §22:90.60(3)

particular place, at, §22:90.60(5)partnership, by, §22:90.30(4)presentment for, see also PRESENTMENT FOR ACCEPTANCE

effect of failure, §27:20.10(2)

generally, }27:20place for, §27:20.10(1)requisites of due, §27:20.20

when required, §27:20.10qualified, §22:90.60(1), §27:20.50recovery of money paid on forgery of, §23:70.40

signature, mere, §22:90.40signature omitted, §22:90.30(3)supra protest, §30:20.20tenor of, §28:30.10

time of, §22:90.50trade, meaning of term, §22:20.10types of, see also FORMS OF ACCEPTANCE OF BILL

generally, }22:90.60

IN-1 November 2015

ACCEPTANCE OF BILL — continuedvirtual, §22:90.40wrong designation of drawee in, §22:90.30(6)

ACCEPTOR OF BILL

definition, §21:20.10liability of, see also LIABILITIES OF PARTIES TO BILL, CHEQUE OR NOTE

generally, }28:30maker of note compared, §35:80.20preclusions of, statutory, §28:30.40primary party, as, §28:30.20

tenor or engagement of, §28:30.10

ACCESS TO FUNDS

depositors benefitted, }10:30.30(4)(b)(ii)deposits affected, }10:30.30(4)(b)(iii)disclosure, }9:20.20(3)(a)disclosure obligations, §9:20.30(3)(b)duty of bank, §10:30.30(4)(b)(i)

exceptions, §10:30.30(4)(b)(iv)‘‘first $100’’, §10:30.30(4)(b)(v)Regulation, §10:30.30(4)(b)

ACCOMMODATION BILL

defined, §21:20.130payment by party accommodated, §29:20.30

ACCOMMODATION PARTY TO BILL, CHEQUE OR NOTE

anomalous endorsement, and, §28:60.20(4)antecendent debt, and, §23:70.30(3)co-sureties’ rights, §28:70.40

definition of, §28:70.10form of engagement, §28:70.10(1)generally, §28:70

known to be such, §28:70.20(2)liability of, §28:70.20release of, §28:70.30

rights of –co-sureties, against, §28:70.40(2)creditor, against, §28:70.40(3)generally, }28:70.40principal debtor, against, §28:70.40(1)

securities, dealings with, §28:70.20(3)surety, as, §28:70.10(1), §28:70.30

value not received for item, §28:70.10(2)

ACCORD AND SATISFACTION

acceptance of cheque as, §1:30.60(1)

forms of accord, §1:30.60(2)(a)forms of satisfaction, §1:30.60(3)interpretation of accords, §1:30.60(2)(c), (d) and (e)

THE LAWOF BANKINGANDPAYMENT INCANADA

IN-2

ACCORD AND SATISFACTION — continuedinterpretation of offers, §1:30.60(2)(b)mistake in, §1:30.110(1)statutory provision for, §1:30.60(3)(c)

sophisticated parties, rules applicable to, §1:30.60(2)(c) and (c)(i)

ACCOUNT ADMINISTRATION

account management agreements, §9:40.40(1)

appropriation of deposits, §9:40.20authorization to debit, §9:40.40bank’s standard of care, §9:20.30(2)

cheque hold periods, §9:20.20(3)commercially reasonable security on access, §9:40.40(3)contract terms, typical, §9:40.40(2)(b)conventional forms of, §9:20.10(1)

customer’s duty of care, §9:20.30(3)(d)duty to others –

bank, §9:40.80(1)

customer, §9:40.80(2)electronic access agreements, §9:40.40(2)(a)electronic notification, §9:20.10(2)

error correction, §9:40.70freezing –

Freezing Assets &c. Act, }9:40.90(1.5)(a)generally, §9:40.90Special Economic Measures Act, and, §9:40.90(1.5)(b)

generally, §9:40.10limitation of actions, §9:40.75

mirror accounts, §9:40.30mistake in, §9:40.70negative option marketing –

statutory prohibitions, §9:20.25onus of proof, §9:40.40(1)risk of unauthorized debits, §9:40.40

standard of care, §9:40.40(3)statements of account, §9:40.50statutory terms, §9:20.20unconscionable conduct by bank, §9:40.80(1)(b)(iii)

user names and passwords, §9:40.10verification agreements –

interpretation of, §9:40.60(1)

negligence, application to, §9:40.60(2)

ACCOUNT VERIFICATION AGREEMENT

duty imposed by, §9:20.30(3)(d)(i)

forgery of drawer’s signature, and, §9:40.60(3)generally, §9:40.60interpretation of, §9:40.60(1)

negligence of bank, and, §9:40.60(2)preclusion of customer to deny forgery, §23:40.40(5)

INDEX

IN-3 November 2016

ACQUIRER

definition of, §7:65.30(2)

ACSS. See CLEARING SYSTEM FOR CHEQUES AND OTHER DEBITS

ACTION ON BILL OR NOTE

‘‘action’’ defined, §21:20.20counterclaim, included, §21:20.20day of grace, on last, §22:20.40

set-off, included, §21:20.20

ADMINISTRATION OF ACCOUNT

authorization to debit –

electronic access agreements, §9:40.40(2)onus of proof, §9:40.40(1)

security, reasonable levels of, §9:40.40(3)

AEROPLAN FREQUENT FLIER MILES

money, as, §3:10.30(4.5)terms of issue, §4:10.20(2)(b)

AFT. See AUTOMATED FUNDS TRANSFER SYSTEM

AGENT

authority and powers of. See AGENTS’ POWERScollect bill or note, powers of, §26:20.10(2)

delivery of bill or note by, §23:20.50(4)ratification of acts of, §23:40.50representative signatures. See REPRESENTATIVE SIGNATURE ON BILL,

CHEQUE OR NOTEsignature by procuration. See SIGNATURE BY PROCURATIONsignature of bill or note by. See AUTHORITY TO SIGN BILL, CHEQUE ORNOTE

AGENTS’ POWERS

apparent authority, §23:40.10(1)customary authority, §23:40.10(3)(a)

express actual authority, §23:40.10(1)generally, §23:40.10implied actual authority, §23:40.10(2)

indoor management rule, §23:40.10(3)(c)ordinary course dealings, §23:40.10(3)(d)powers, §23:40.10(3)‘‘unauthorized’’ meaning of, §23:40.20(4)

AIR MILES

expiration of, class action, §4:10.20(2)money, as, §3:10.30(4.5)

terms of issue, §4:10.20(2)(a)

ALBERTA TREASURY BRANCHES. See PROVINCIAL TREASURY

BRANCHES


IN-4

ALLONGE

generally, §25:20.30

ALLOCATION OF PAYMENTS. See APPROPRIATION OF PAYMENTS

ANOMALOUS ENDORSEMENT OF BILL, CHEQUE OR NOTE

anomalous, meaning of, §28:60.20(2)(b)accommodation party, and, §28:60.20(3)application of BEA to, §28:60.20(4)

aval, distinguished, §28:60.20(1)conditions of liability, §28:60.20(2)generally, §28:60

history of, §28:60.20(1)liability of, §28:60.10

APPROPRIATION OF PAYMENTS

Clayton’s Case, rule in, §1:30.70(1)(c)

debtor, by, §1:30.70(1)(a)credit card debt, §1:30.70(1)(b)creditor, by, §1:30.70(1)(b)

evidence of, acceptable, §1:30.70(1)(c)fact, question of, §1:30.70(1)(a)‘‘freezing’’ bank account, as, §1:30.70(1)(c)

generally, §1:30.70guarantor, effect on, §1:30.70(1)(b)judgment debts, on, §1:30.70(3)

on-us items, of, §10:10.50(2)presumptions, §1:30.70(1)(c)principal and interest, as between, §1:30.70(2)revocation of, §1:30.70(1)(a)

secured and unsecured indebtedness, as between, §1:30.70(1)(c)statute limited debt, to, §1:30.70(1)(b)

ATM. See AUTOMATED TELLER MACHINE

AUTHORITY TO SIGN BILL, CHEQUE OR NOTE

agents, of, §23:40.10agents’ powers. See AGENTS’ POWERS

apparent authority, §23:40.10(3)(b)bank officers, to certify cheque, §34:70.50(2)customary authority, §23:40.10(3)(a)express actual authority, §23:40.10(1)

forged signature. See FORGED SIGNATUREgenerally, §21:20.40, §23:40implied actual authority, §23:40.10(2)

incomplete instruments, §23:20.60(3)indoor management rule, and, §23:40.10(3)(c)lack of, defence, §26:30.50(1)

liability of agent where lacking, §23:50.60ordinary course dealings, and, §23:40.10(3)(d)preclusion from denying. See PRECLUSION TO DENY FORGED SIGNATURE

INDEX

IN-5 September 2016

AUTHORITY TO SIGN BILL, CHEQUE OR NOTE — continuedprocuration, signature by. See SIGNATURE BY PROCURATIONratification of forgery, §23:40.50representative signatures. See REPRESENTATIVE SIGNATURE ON BILL,

CHEQUE OR NOTEunauthorized signature. See UNAUTHORIZED SIGNATURE

AUTHORIZED FOREIGN BANK

participation in clearing and settlement systems, §7:50.50

AUTOMATED BANKING MACHINE

networks, §14:30.20

shared cash dispensing, §14:30.20(1)The Exchange, §14:30.20(2)

AUTOMATED FUNDS TRANSFER SYSTEM

default, §11:20.100(2), }11:20.100(3), §15:30.60, §15:30.70exchange and clearing –

edit of received data, §15:30.50(3)file rejection, }11:30.50generally, §11:20.70(2)(a)(ii), §15:30.50lead times, §15:30.50(1)receipt confirmation, §15:30.50(2)

generally, }15:30.10glossary, §15:30.20legal relations, §15:30.80

overview, §15:30.10processing of, §15:30.40settlement, §11:20.90, §15:30.60types of payment processed, §15:30.30

AUTOMATED TELLER MACHINE

exchange of items in shared systems, §11:20.70(2)(b)generally, §14:30

Interac, and, §14:30.20(1)one-bank systems, §14:30.10unreturnability of items, §11:20.70(2)(d)

AVAILABILITY OF FUNDS

bank account, in, §10:10.30collecting bank’s duty to credit account, §10:30.30(4)immediately available funds, §3:10.40(2)

LVTS payment –earliest time, §12:40.40(2)(b)generally, §12:40.40(2)

latest time, §12:40.40(2)(a)reasonable notice of termination, §9:70.20uncleared effects, §10:10.30

AVAL

anomalous endorsement, and, §28:60.20


IN-6

AVAL — continuedpayee’s enforcement of, §24:30.70(2)(d)

BANK

capacity to form banking relationship, see also BANKING RELATIONSHIP

generally, §9:10.30(1)(b)definition,

Bills of Exchange Act, §21:20.30, §21:20.140(1), §34:20.50, §36:20.70

credit union, includes, §8:30.10(1), §8:30.20(3)federal statutes in general, §8:30.10(1)Interpretation Act, in, §8:30.10(1)

other contexts, §8:30.10(3)popular term, not one of art, §8:30.10(3)provincial statutes, §8:30.10(2)

negligence of. See NEGLIGENCE OF BANK

party to banking relationship, §9:10.20(1)

BANK ACCOUNT

administration of. See ACCOUNT ADMINISTRATION

appropriation of funds to, see also APPROPRIATION OF PAYMENTSgenerally, §1:30.70

authorization to debit, §9:40.40

branch of. See BRANCH OF ACCOUNTcash concentration, §9:40.30closing, onus on customer to oppose, §9:70.20(1)

contract terms, §9:20.10deposit. See BANK DEPOSITduty to others regarding, operation of, §9:40.80error correction, §9:40.60

‘‘freezing’’ by bank, §9:70.20(2)governing law, §9:10.30(4)interest-bearing, disclosure of rate, §9:20.40(1)(d)

mirror, see also CASH MANAGEMENT SERVICESgenerally, §9:40.30

netting. See COMBINATION OF ACCOUNTS; NETTING

partnership, of, §23:50.70property in funds after certification, §34:70.70(1)(d), §34:70.70(2)(d)repayment, place of. See BRANCH OF ACCOUNTreporting, duty or custom, §9:40.50(1)

segregated funds, §3:20.50(1)statements. See STATEMENT OF ACCOUNTtrust. See TRUST OF DEPOSIT

unlawful use of by customer, §9:70.20(1)(b)verification agreement. See ACCOUNT VERIFICATION AGREEMENT

BANK ACT

action for breach, §8:20.30(1)(d)(i)Bills of Exchange Act not to affect, §21:40.60confidentiality, duty, §9:20.30(5.5)

cost of borrowing disclosure, §9:20.40(1)(c)

INDEX

IN-7 September 2016

BANK ACT — continuedcustomer complaint procedures, §9:20.20(1)disclosure requirements, §9:20.40(1)interest rate disclosure, §9:20.40(1)(d)

Preamble, 8:20.30(1)(d)(i)

BANK ACT REGULATIONS

access to funds, §9:20.20(3)(b), §10:30.30(0.5)

credit business, §13:15.10electronic documents, §9:20.10(2)

BANK ACT SECURITY

backround, §8:20.30(1)(a)(i)Bank of Montreal v. Hall, §8:20.30(1)(a)(ii)generally, §8:20.30(1)(a)Innovation Credit Union v. Bank of Montreal, §8:20.30(1)(a)(iii)

relative priority, §8:20.30(1)(a)(iii), §9:60.20(6)section 437(3), §9:50.40(6)

BANK CHEQUES

countermand of, §10:20.10(1), §34:60.10definition, §34:50parties to, §22:40.40(2)

stale, when, §34:50.20(3)

BANK CREDIT

money, as, §3:10.30(1)

transfer as payment, §1:30.55

BANK DEPOSIT

bank’s authority to accept, §9:30.10(1)location of, §3:20.30(2)

money, as §3:10.30(1)

BANK DRAFT (BANK CHEQUE; OFFICIAL CHEQUE)

conversion of, }22:20.30; }23:40.60(2)(a), }31:30.10(1.5)

BANK FOR INTERNATIONAL SETTLEMENTS

Angell Report, §7:20.10(2)Basle Accord, §7:20.10(1)

central bank oversight principles, §7:20.30collateral in cross-border transactions, §7:20.30Committee on Payments and Financial Market Infrastructures, §7:20.20, §7:20.35Core Principles –

CDS and, §17:30.80(1)generally, §7:20.20LVTS and, §12:50

Lamfalussy Report, §7:20.10(3), §19:10.30(2)payments system policy reports, other, §7:20.10(4), §7:20.35Principles for Financial Market Infrastructures, §7:20.20


IN-8

BANK FOR INTERNATIONAL SETTLEMENTS — continuedprinciples of oversight, §5:30.40(2)report on interdependencies, §7:20.30, §17:30.80(1)(b)report on international funds transfers, §16:60.10(3)(c)

report on system interdependencies, §12:10.40(2)risk analysis, §7:20.10(4)risk in foreign exchange markets, §19:10.30(2)

securities settlement system risk, and, §17:30.80(1)(b)

BANK NOTES. See BANK OF CANADA NOTES

BANK OF CANADA

Bank Rate, §5:30.10BIS principles of oversight, §5:30.40(2)cash setting, §5:30.20clearing and settlement functions, §5:20

corporate status, §5:10C.P.A., Bank membership in, §6:30.20credit crisis, in, §5:30.30

Crown agent, not, §5:10custodian of financial assets, }5:20.30(1)daily balance auctions, §5:30.20

default, determination in LVTS, §12:30.50(2)extraordinary transactions, §5:30.30fees, §7:50.30(7)

fiscal agency, §5:10generally, §5:10guaranty of LVTS, §12:30.40(7)High Availability Banking System, }5:20.20(1.5)liquidity advances –

clearing house liquidity, §5:20.20(5)emergency lending, §5:20.20(2)

forced LVTS loans, §5:20.20(3)generally, §5:20.20standing advances, §5:20.20(1)

systemic risk intervention, §5:20.20(4), §5:30.30loans to designated payment systems, §7:50.40(3)(a)(vi)miscellaneous settlement related powers, }5:20.30(4)note-issuing powers, see also BANK OF CANADA NOTES

generally, §2:20.20, §5:10oversight, §5:30.40

large value transfer system compliance, §12:60

mandates, §5:30.40(1)oversight of clearing and settlement systems –

compliance orders, §7:50.30(6)

directives, §7:50.30(5)fees for performing, §7:50.30(7)guidelines, §7:50.30(1)

payments system risk, §7:50.30powers, §7:50.80

INDEX

IN-9 May 2016

BANK OF CANADA — continuedoversight of clearing and settlement systems — continued

regulatory agreements, §7:50.30(2)systemic risk, §7:50.30

Payment Clearing and Settlement Act powers, §7:50.30powers, §5:30.30principles of, §5:30.40

regulatory strategy, §5:30.40(3)representation at regional exchange points, §11:20.50(1)(d)reserve accounts, abolition of, §5:20.10

settlement accounts, §5:20.10settlement agent services, }5:20.30(2)settlement functions –

central counter-party functions, §5:20.30(3)

collateral agent services, §5:20.30(1)generally, §5:20.30settlement agent services, §5:20.30(2)

settlement balances, §5:20.10statutory mandate, §5:10systemic risk intervention, §5:30.30

target band of inflation, §5:30.10target rate of interest, §5:30.10transfer of unclaimed balances to, §9:30.60

BANK OF CANADA NOTES

authority to issue, §2:20.20Bank Note Distribution Service (‘‘BNDS’’), §2:20.20(3)counterfeit, §3:90

distribution system, §2:20.20(3)generally, §2:20.20legal tender, §2:30.10(1)

lost or destroyed, §31:30.10national distribution system, §2:20.20(3)promissory notes, as, §2:20.20(2), §35:10.30(2)

refusal to accept, §2:40tender of, §2:30.10(1)value outstanding, §2:20.20(1)

BANKER

confidentiality, duty of. See CONFIDENTIALITY, BANKERS’ DUTY OFconsolidation of accounts. See COMBINATION OF ACCOUNTSdefinition of, §8:20.10(1), §8:20.20(1)(a)

fiduciary obligation and. See FIDUCIARY OBLIGATIONS OF BANKERSknowledge of breach of trust, §9:50.40(5)knowledge of wrongful conduct, §9:50.40(5)

lien. See BANKER’S LIENmeaning of, §8:20.10, §34:60.30(1)(a)negligence of, §9:20.30(4)

payments by. See PAYMENTS BY BANKERS‘‘reasonable banker’’, concept of, §9:20.30(2)(a)

IN-10


BANKER — continuedrefusal to deal, §9:70.20(1)(b)relationship with customers. See BANKING RELATIONSHIPset-off, and. See COMBINATION OF ACCOUNTS

standard of care, §9:20.30(2)exculpatory clauses, §9:20.30(2)(b)

who is, for purposes of –

constitutional law, §8:20.10duty to pay cheques, §10:10.20

BANKER’S LIEN

cash proceeds, and, §9:60.20(6)(b)cheques proceeds, and, §9:60.20(6)(a)generally, §9:60.10holder with a lien, §9:60.10(4)

PPSAs and, §9:60.10(2)priority relative to PPSA, §9:60.20(6)property subject to, §9:60.10(3)

realization, rights of, §9:60.10(4)source of lien, §9:60.10(1)

BANKERS’ ACCEPTANCES


BANKING

Bank Act restrictions on, §8:20.20, §8:20.30(2)

business of, distinguished, see also BUSINESS OF BANKINGgenerally, §8:20.20(2)(b), §8:30.20

constitutional law, see also CONSTITUTIONAL LAWgenerally, §8:10, §8:20.10

identifying tests –business functions, §8:20.10(1)institutional, §8:20.10(3)

reputational, §8:20.10(2)credit unions and caisses, by, §8:20.30(3)definitional difficulties –

change in Bank Act approach, §8:20.20(2)(d)change over time, §7:20.20(1)(c)classic definitions ‘‘outworn’’, §8:20.20(2)(c)competence of Parliament to define, §8:20.10(4)

complexity of topic, §8:20.20(1)(a)new approaches to, §8:20.20(2)(a)popular sense, §8:20.20(1)(b)

evolution of, §8:10institution, includes trust company, §8:30.10(3)meaning of –

Bank Act definition, §8:30.20(1)banking by authorized foreign banks, §8:30.20(2)banking by banks, §8:30.20(1)

banking by foreign banks, §8:30.20(2)

INDEX

IN-11 May 2016

BANKING — continuedmeaning of – — continued

banking by others, §8:30.20(3)provincial treasury branches, by §8:20.30(3)

reach of federal power, §8:20.30(3)relationship of banker and customer. See BANKING RELATIONSHIPtrust companies, by, §8:20.30(3)

BANKING RELATIONSHIP

banker’s duty of confidentiality, §9:20.30(5)compulsory disclosure, §9:20.30(5)(d)(i)

contractual basis of –capacity of bank, §9:10.30(1)(a)capacity of customer, §9:10.30(1)(b)consideration, §9:10.30(2)

generally, §9:10duty of care on bank, see also NEGLIGENCE OF BANK

appropriate products, to provide only, §9:20.30(4)

upon opening account, §9:10.10(3)duty of care on customer –

account administration, §9:20.30(3)(d)

affirmative cheque confirmations, §9:20.30(3)(d)(iv)cheque writing, §9:20.30(3)(a)examine account statements, §9:20.30(3)(d)(i)

generally, §9:20.30(3)new duties, proposed, §9:20.30(6)payment instructions, §9:20.30(3)(b)report perceived errors in account, §9:20.30(3)(d)(iii)

equality of customers’ treatment, §9:20.30(4)formation –

electronic documents, by, §9:20.10(2)(a)(i)

formalities, §9:10.30(3)non-disclosure of unusual terms, §9:20.10(1)statutory compulsion of bank, §9:10.10(2)

telephone or online, §9:10.30(3)(b)voluntary agreement, §9:10.10(1)

generally, Chapter 9implied terms –

basic rights and duties of parties, §9:20.30(1)standard of care by bank, §9:20.30(2)standard of care by customer, §9:20.30(3)

negligent banking, whether a tort, §9:20.30(4)parties to –

customer, §9:10.20(2)

domestic banks, §9:10.20(1)(a)foreign banks, §9:10.20(1)(b)provincial corporations, §9:10.20(1)(c)

privacy, and, §9:20.20(2)‘‘reasonable banker’’, concept of, §9:20.30(2)(a)

IN-12


BANKING RELATIONSHIP — continuedtermination –

bank, by, §9:70.20customer, by, §9:70.10

single service only, §9:70.20(2)terms –

agreements, §9:20.10

generally, §9:20implied, §9:20.30statutorily imposed, §9:20.20

transactional validity of, §9:10.30

BAR-EX. See REAL ESTATE CLOSING FUNDS MANAGEMENT SYSTEM

BEARER OF BILL, CHEQUE OR NOTE

blank designation of payee, as, §22:40.30(7)

cash, item payable to, §22:40.30(1)definition, §21:20.40(1), §22:40.30(1)holder, and, §21:20.40(1)

instrument naming as payee, §21:20.40(1)meaning of, §22:40.30(1)non-existing payee, §22:40.30(9)(b), §22:40.30(10), see also NON-EXISTING

PERSON AS PAYEEpayee blank, §22:40.30(1)transfer by, §25:40.20

warranties on transfer by, §25:40.20(1)

BILL OF EXCHANGE

codification of law, §20:30history, §20:30.10

complete and regular, §24:30.20(1)consumer bill. See CONSUMER BILL OR NOTEdefinition of, §22:20

draft, and, §21:20.10, §22:20foreign bills, §21:20.110, §33:40.20(1)foreign language, in, §22:20.20

formal validity of. See FORMAL VALIDITY OF BILL, CHEQUE OR NOTEinland bills, §21:20.110, §33:40.20(2)instrument not qualifying, effect of, §22:30property attributes of, §23:20.10

seal, under, §23:70.40single instrument, whether need be, §22:20

BILL PAYMENT SERVICES

ACSS-based –creation of items, §16:50.30(1)creditors’ requirements, §16:50.20(1)

default by payor’s FI, §16:50.30(5)error correction, §16:50.30(3)exchange of items, §16:50.30(2)

finality, §16:50.40(1)(a)

INDEX

IN-13 May 2016

BILL PAYMENT SERVICES — continuedACSS-based — continued

financial institutions’ requirements, §16:50.20(2)generally, }16:50, §16:50.10legal relations, §16:50.40proof of payment, §16:50.40(1)(b)returns and adjustments, §16:50.30(3)

settlement, §16:50.30(4)transaction processing, §16:50.30

e-mail payments –

Interac Email, §16:60.30(1)on-us e-mail payments, §16:60.20(2)

epost, §16:60.20(1)error correction, §16:50.50

on-us bill payment systems, §16:60.20(2)TelPay –

generally, §16:60.20(3)

legal relations, §16:60.20(3)(c)service description, §16:60.20(3)(b)system description, §16:60.20(3)(a)

BILLS IN SETS

generally, §32:10operation, §32:20

BILLS OF EXCHANGE ACT

amendment of, §20:30.10Bank Act, not affected by, §21:40.60Canada, history of, §20:30.10

canon of interpretation, §21:30common law preserved by, §21:40.80(2)constitutional jurisdiction, §20:30.20

history of codification, §20:30.10interpretation of. See INTERPRETATION OF BILLS OF EXCHANGE ACTprecedence over ACSS Rules, §11:50.30

Quebec, and, §21:40.80(3)repeal of prior statutes by, §21:40.70

BILLS OF EXCHANGE ACT, s. 165(3)

ACSS Rule implementing, §11:20.70(1)(e)

bank, meaning of in this context, §10:50.20(1)(c)cheque, meaning of in this context, §10:50.20(1)(a)collecting bank, and, §10:50.10(1)

conditions precedent to application, §10:50.20(1)conversion of cheques, and, §23:40.60(2)(d)defences of drawer, §10:50.20(3)

delivery to bank, meaning of, §10:50.20(1)(b)deposit, meaning of in this context, §10:50.20(1)(d)endorsement forged, and, §23:40.60(4)(b), §23:40.60(5)(b)

generally, §10:50

IN-14


BILLS OF EXCHANGE ACT, s. 165(3) — continuedhistory and purpose, §10:50.10, §20:30.10holder in due course, bank not, §10:50.20(2)legal effect, §10:50.20

legislative reform –generally, §10:50.10(2)judicial interpretation of, §10:50.10(3)

non-application of, §10:50.20(4)person, meaning of in this context, §10:50.20(1)(e)person entitled to proceeds, §10:50.20(1)(f)

Quebec, application in,restrictive endorsement, and, §25:30.30(2)

BITCOINS, §4:50, and see VIRTUAL CURRENCY; DIGITAL CURRENCY

characterization of,

commodity, §4:50.30(2)(b)(i)payment system, §4:50.30(2)(b)(ii)money, §4:50.30(2)(b)(ii)

security, §4:50.30(2)(b)(iv)constitutional law competence of Parliament, §4:50.30(1), §4:50.30(2)(b)(iii)criminal usage, §4:50.30(2)(c)

currency, not, §2:20.40(3)(a)generally, §4:50.20income tax issues, and, §4:50.40

legal analysis, §4:50.20(2)regulation of, §4:50.30Senate of Canada Report on, §4:50.30(2)

blockchain technology, promotion of, §4:50.30(2)(d)(i)

policy recommendations, §4:50.30(2), §4:50.30(2)(d)system description, §4:50.20(1)transfer, legal effect of, §4:50.30(2)(d)(ii)

BOLERO, §16:20.10(2)(c)(i)

BRANCH OF ACCOUNT

countermand, notice to, §34:60.10(4)

designation of, §9:30.40(1)LVTS payments, in, §12:40.40(2)(a)(i)organizational unit under ACSS Rules, as, §10:10.60(2)

BUSINESS DAY/JURIDICAL DAY

defined. See NON-BUSINESS DAY/NON-JURIDICAL DAY

BUSINESS OF BANKING

Bank Act definition, §8:20.20(2)(d)

‘‘bankiness’’ not discernible quality, §8:20.20(2)(f)(ii)banking distinguished, see also BANKING

generally, §8:20.20(2)(b), §8:30.20

business of insurance distinguished, §8:20.30(3)(b)credit unions and caisses, by, §8:20.30(3)definitions, early, §8:20.20(1)(a)

INDEX

IN-15 November 2016

BUSINESS OF BANKING — continuedmeaning of –

constitutional law, in, §8:20.20generally, §8:30.20

non-card-based payments, as, §13:05, §14:10.10(3)provincial corporations, by, §8:20.30(2)provincial enactments affecting, §8:20.30(1)

CAISSES POPULAIRES

‘‘bank’’ for certain purposes, §34:20.50banking by, §8:20.30(3)

CANADA BONDS

Bills of Exchange Act, and, §35:10.30(4)negotiable instruments at common law, §35:10.30(4)

CANADA POST

ePDT. See BILL PAYMENT SERVICESmonopoly on delivery of letters, §11:20.70(1)(a)

CANADIAN CODE OF CONDUCT FOR CREDIT AND DEBIT CARD

INDUSTRY

adoption, method and timing of, §14:15.20(2)application, scope of, §14:15.20(1.5)

background, §14:15.20(1)coming into force, §14:15.20(2)entry in force, timing of, §14:15.20(2)

generally, §7:40.30(2), §14:15.10merchants, focus on protection of, §14:15.20(1.5)mobile payments and. See MOBILE-PHONE PAYMENTS AND TRANSFERSpolicy elements, §14:15.20(3)

contactless payments, 11competing applications, 6disclosure, 1, 12

dispute resolution, 13dual purpose cards, 4, 8fees, 2

merchant discounts, 5negative option marketing, 10network logos, 7premium cards, 9

termination rights, 3

CANADIAN CODE OF DEBIT CARD PRACTICES. See DEBIT CARDS

CANADIAN CODE OF PRACTICE FOR CONSUMER DEBIT CARD

SERVICES

applications, competing, §14:15.20case law interpretation, §14:40.30(4)(c)

commentary on, §14:15.10(3)Commissioner’s Guidance, validity of, §14:15.20(4)

IN-16



SERVICES — continuedcustomer accounting, §14:40.10(6)disclosure requirements, §14:40.20(2)(b)

dispute resolution, §14:40.10(6)generally, §14:15.10history of, §14:15.10(1)

Interpretive Guide, §14:40.30(4)(b)interpretive memoranda, validity of, §14:15.20(4)liability for use, §14:40.30(4)(a)

(The next page is IN-17)

INDEX

IN-16.1 November 2016


SERVICES — continuedloss allocation under, §14:20.50(1)mandatory provisions, §14:15.10(2)

mobile phone payments, application to, §14.5:30.10negative option, §14:15.20PIN-less cards, §14:25.40, see also PIN-LESS POINT OF SALE ITEMS

PIN-less cards, non-application to, §14:25.40(5)premium card marketing, §14:15.20receipt, whether required in all cases, §14:15.10(3)

Rule E2, and 16:30.40(1)(a)

CANADIAN DEPOSITORY FOR SECURITIES LTD.

CDSX generally, see CDSXCDSX Procedures –

generally, §17:20.30(2)Rules, §17:20.30(2)User Guide, §17:20.30(2)

certificated delivery, §17:30.50(1)(d)corporate history, §17:20.10(1)cross-border services –

funds and securities accounts, §17:40.40generally, §17:40, §17:40.10legal foundations, §17:40.30

regulation of, §17:40.20risk management, §17:40.60settlement, §17:40.50

default and suspension of participants, §17:50

deposits, forms of –depositor’s warranty, §17:30.30(3)generally, §17:30.30(2)

withdrawal of deposited securities, §17:30.30(4)entitlements processing, §17:30.40legal relations with participants, §17:20.30

participant agreement –choice of law, §17:20.30(1)(b)common form agreement, §17:20.30(1)(a)generally, §17:20.30(1)

payment, acceptable, §17:30.60(3)payment exchange –

book entry, §17:30.60(2)

generally, §17:30.60payment risk, legal analysis of, §17:60registered ownership of securities, §17:30.70(2)

regulatory approvals –generally, §17:20.20Payment Clearing and Settlement Act, §17:20.20(1)(d)

payments system related, §17:20.20(2)securities related, §17:20.20(1)

INDEX

IN-17 November 2015

CANADIAN DEPOSITORY FOR SECURITIES LTD. — continuedrules, binding force of, §17:20.30(2)situs of deposited securities, §17:30.70(1)systems history, §17:20.10(2)

securities trades settlement –1970 to 1996, §17:10.201996 to date, §17:10.30

pre-1970, §17:10.10Securities Transfer Act, situs of securities, §17:30.70(1)(b)services –

continuous net settlement, §17:30.50(1)(c)cross-border, §17:40depository service, §17:30.30DetNet, §17:30.50(1)(b)

entitlements processing, §17:30.40same day CAD/USD settlement, §19:20.20(3.5)settlement service, §17:30.50, §17:30.50(2)

trade-for-trade settlement, §17:30.50(1)(a)trade processing, §17:30.50(1)

settlement, §17:30.50(2)

CANADIAN DERIVATIVES CLEARING CORPORATION

accounts –administration of, §18:30.40(3)

closing out, §18:30.30(2)(b)(iv)consolidation and set-off, §18:30.30(2)(b)(v)lien on or security interest in, §18:30.30(2)(b)(ii)netting of, §18:30.30(2)(b)(iii)

terms of, §18:30.30(2)(b)types of, §18:30.30(2)(a)

basic rights and obligations, §18:30.30(2)(b)(i)

corporate history, §18:30.10default by member –

action by corporation, §18:30.60(2)

definition, §18:30.60(1)generally, §18:30.60

designation under PCSA, §18:30.20generally, Chapter 18

legal relations with participants, §18:30.30(3)margin requirements –

calculation of, §18:30.50(1)(c)(ii)

eligible collateral, §18:30.50(1)(c)(iii)generally, §18:30.50(1)(c)

membership –

classes, §18:30.30(1)(b)generally, §18:30.30(1)governing law, §18:30.30(1)(a)

qualifications for, §18:30.30(1)(c), §18:30.50(1)(a)suspension of, §18:30.60(2)(a)

IN-18


CANADIAN DERIVATIVES CLEARING CORPORATION — continuedmembership — continued

termination of, §18:30.60(2)(b)operations overview –

contract issue, §18:30.40(1)generally, §18:30.40netting, §18:30.30(4)

payment, §18:30.40(6)settlement, §18:30.40(5) and (7)trade reporting and novation, §18:30.40(2)

Payment Clearing and Settlement Act, and, §18:30.20, §18:30.50(2)regulatory relations, §18:30.20risk management –

clearing funds deposits, §18:30.50(1)(b)

generally, §18:30.50margin requirements, §18:30.50(1)(c)membership qualifications, §18:30.50(1)(a)

statutory protections, §18:30.50(2)

CANADIAN PAYMENTS ACT

Canadian Payments Association, and, §6:10

designation of payment systems under –benefits of, §7:50.20(5)(a)burdens of, §7:50.20(5)(b)

consequences of, §7:60.10(2)criteria of, §7:60.10(1)foreign systems, application to, §7:60.10(3)fraudulent preference laws, and, §7:50.20(5)(a)(iii)

generally, §7:60.10judicial restraining orders, and, §7:50.20(5)(a)(ii)policy rationale, §7:60.10(1)(a)

precedence of clearing rules, §7:50.20(5(a)(i)systems caught, §7:60.10(1)(b)

enforceability of Part 2, §7:60.20

CANADIAN PAYMENTS ASSOCIATION

Board of Directors –number and qualification, §6:40.20powers and duties, §6:40.30

representative character, §6:40.10by-laws and rules –

approval process, §6:50.10

binding on members, §11:50.10binding on public, whether, §11:50.20current versions of, §6:50, §11:10.10(2)(a), §11:10.10(2)(b)

individual by-laws. See CPA BY-LAWSindividual rules. See CPA RULES

capital, §6:10.10(4)

classes of members –generally, §6:30.20

INDEX


CANADIAN PAYMENTS ASSOCIATION — continuedclasses of members — continued

new members, §6:30.20(2)traditional members, §6:30.20(1)

compliance by-law –appeals, §6:70.40generally, §6:70.10

investigations, §6:70.20penalties, §6:70.30

compliance panels –

effect on public, §11:50.20standard of judical review, §6:70.40

corporate law applicable to, §6:10.10corporate status, §6:10.10(2)

directives –mandatory, }6:50.20Ministerial review of, }6:55.10

directors –generally, §6:40number and qualifications, §6:40.20

powers and duties, §6:40.30representative character, §6:40.10

dispute resolution services, §6:70

duties, statutory, §6:20.30eligible non-members, §6:30.30(1)Framework for Evolution of Payment System, §6:50.20generally, Chapter 6

general manager. See President, infraguidelines, §6:50.50Guide to Risk –

payment items, §7:30.20(5)(b)payment systems, §7:30.20(5)(a)

immunity, limited, §12:40.30(3.5)

indoor management rule, application of, §6:10.10(3)liability of, §6:20.40mandatory directives, }6:50.20members –

new classes of, §6:30.20(2)traditional, §6:30.20(1)

membership –

application for, §6:30.40bridge institutions as, §6:30.30(3)classes of, §6:30.20

FCAC and, §6:30.20(2)(a)proposals to increase, §6:30.20(2)significance of, §6:30.10

Tripartite Study Group Report, §6:30.20(2)(c)Ministerial oversight and powers, §6:55.10

IN-18.2


CANADIAN PAYMENTS ASSOCIATION — continuedobjects, corporate –

establish and operate national systems, §6:20.10(1)facilitate systems interaction, §6:20.10(2)

generally, §6:20.10new payment methods, development of, §6:20.10(3)

powers, corporate, §6:20.20

President, §6:40.40principles and standards –


legal force, §6:50.20(2)procedures, §6:50.40proposed restructuring, §6:20.05Stakeholder Advisory Council, §6:60

standards, §6:50.30standards, approval process, §6:50.20standards, current, §11:10.10(2)(c)

statutory duties, §6:20.30statutory immunity of, §6:20.40tele-cheque prohibition policy, §6:50.20

ultra vires doctrine, application of, §6:20.20users, interests of, §6:20.30Vision 2020 payments strategy, §6:20.10(4)

CANADIAN TIRE MONEY

money, as, §4:10.20

CANCELLATION OF BILL, CHEQUE OR NOTE

eligible bill, of, §29:60.30

evidence of, §29:60.10generally, §29:60intention to cancel, materiality of, §29:60.20

renunciation in another document, §29:60.10truncation of cheque, as, §29:60.30

CAPACITY OF PARTIES TO BILL, CHEQUE OR NOTE

adult co-signers, liability of, §23:3030(3)Canadian common law of, §23:30.30(2)cheques, special rules for, §23:30.10(2)common law of, preserved, §21:40.80(2)

conflicts of law, in, §33:80.10corporations, of, §23:30.20defence of lack, §23:80.10(1)

deposit, to make, §9:10.20English law model, §23:30.30(1)generally, §23:30

INDEX


CAPACITY OF PARTIES TO BILL, CHEQUE OR NOTE — continuedincapacity, defence of –

effect on other parties –generally, §23:30.60

holders in due course, §23:30.60(1)


IN-18.4


CAPACITY OF PARTIES TO BILL, CHEQUE OR NOTE — continuedincapacity, defence of — continued

effect on other parties — continuedother parties, §23:30.60(2)

generally, §26:30.50(1)infants, of, §23:30.30intoxicated persons, of, §23:30.40(3)

married woman, of, §23:30.50(1)mental incompetents, of, §23:30.40municipal corporation, of, §23:30.50(2)

statutory preclusion to deny, §23:30.70

CASH

bill or note payable to, §22:40.30(1), (8) and (9)(a)‘‘cash advance’’, sale of foreign currency not, §13:20.40(3)(b)

‘‘cash card’’. See DEBIT CARDS‘‘cash purchase’’, meaning of, §36:20.20certified cheque not substitute for, §34:70.60(3)(b)(iv)

cheque as, §3:10.40(1)cheque made payable to, §22:40.30(1)definition, §3:10.40(1)

‘‘on deposit’’ meaning of, §3:10.40(1)

CASH CARDS

definition, §14:50.20(1)(f)(i)

disclosure obligations, §14:50.20(1)(f)(ii)provincial regulation of, §14:50.20(1)(f)terms and conditions, §14:50.20(1)(f)(iii)

CASH MANAGEMENT SERVICES

generally, §9:40.30mirror accounts, §9:40.30

CDCC. See CANADIAN DERIVATIVES CLEARING CORPORATION

CDOR. See INTEREST

CDS. See CANADIAN DEPOSITORY FOR SECURITIES LTD.

CDSX, see also CANADIAN DEPOSITORY FOR SECURITIES LTD.

accounts –funds accounts, §17:30.10(2)securities accounts, §17:30.10(3)

CCP cap, §17:30.80(2)(e)

continuous net settlement service, §17:30.50(1)(c)default by a participant, §17:50.10deposited securities –

legal character of, §17:30.70(3)registered ownership of, §17:30.70(2)situs of, §17:30.70(1)

transfer of entitlement to, §17:30.70(4)depository service, see also withdrawal of securities, and funds, infra

INDEX

IN-19 May 2016

CDSX — continueddepository service — continued

certificated securities, §17:30.30(2)(b)eligible securities, §17:30.30(1)

forms of deposit, §17:30.30(2)funds accounts, §17:30.30(2)(a)generally, §17:30.30

security entitlements, §17:30.30(2)(c)uncertificated securities, §17:30.30(2)(b)warranty by depositor, §17:30.30(3)

withdrawal of securities and funds, §17:30.30(4)designation under PCSA, §7:50.20(2)(a)(i)DetNet, §17:30.50(1)(b)entitlements processing, §17:30.40

exculpatory clauses in agreements, §17:30.80(2)(f)(ii)funds transfers, §17:30.50(1)(a)(iii)legal effects of CDSX transfers, §17:30.70

overview of system, §17:30.10participants –

classification of, §17:30.20(2)

default by, §17:50.10eligibility, §17:30.20(1)generally, §17:30.20

significance of classes, §17:30.20(3)suspension, §17:50.10

participation, by –active federated participant, §17:30.20(2)(c)

Bank of Canada, §17:30.20(2)(a)extenders of credit, §17:30.20(2)(b)qualifed designated bankers, §17:30.20(2)(ii)

receivers of credit, §17:30.20(2)(e)settlement agents, §17:30.20(2)(d)sureties, §17:30.20(2)((b)(i)

payment exchange –acceptable payment, §17:30.60(3)book-entry payments, §17:30.60(2)cash recap, §17:30.60(1)

default by participant at, §17:50.10(1)generally, §17:30.60

payment risk, legal analysis of, §17:60

pledge, type ‘‘L’’, §17:30.60(4)registered ownership of securities, §17:30.70(2)risk management –

category credit rings, §17:30.80(2)(iii)contractual rights of set-off, §17:30.80(2)(b)fund credit rings, §17:30.80(2)(d)(ii)

generally, §17:30.70, }17:30.80(2)guaranties, §17:30.80(2)(d)insurance, §17:30.80(2)(f)(i)

IN-20


CDSX — continuedrisk management — continued

international standards –BIS, §17:30.70(1)(b)

G-30, §17:30.70(1)(a)generally, §17:30.70(1)

legal analysis of, §17:60

participant qualifications and monitoring, 17:30.80(2)(a)perverse consequences, possible, §17:60security interests, §17:30.80(2)(c)

sureties’ lines of credit, §17:30.80(2)(d)(i)system-operating cap, §17:30.80(2)(e)

Securities Transfer Act, effects of. See SECURITIES TRANSFER ACTsettlement cycles –

batch net settlement, §17:30.50(2)continuous net settlement, §17:30.50(2)real-time settlement, §17:30.50(2)

settlement service, §17:30.50situs of deposited securities –

under OBCA, §17:30.70(1)(a)

under USTA, §17:30.70(1)(b)suspension of participant –

discretionary power, §17:50.10(3)

generally, §17:50.10specific grounds for, §17:50.10(1), (2)

suspension of services, judicial orders –eligible financial contracts, §17:50.30(1)

generally, §17:50.30system overview –

funds accounts, §17:30.10(2)

generally, §17:30.10(1)securities accounts, §17:10.30(3)

trade processing –

generally, §17:30.50(1)trade-for-trade, §17:30.50(1)(a)

type ‘‘L’’ pledges, §17:30.60(4)withdrawal of securities, and funds –

funds, §17:30.30(4)(b)securities, §17:30.30(4)(a)

CERTAINTY – BILL, CHEQUE OR NOTE

date. See DATE OF BILL, CHEQUE OR NOTEdrawee, naming with, §22:40.10(1)drawer, naming with, §22:40.20(1)

payee, naming with, §22:40.30(2)sum payable. See SUM CERTAINTYtime of payment. See TIME CERTAINTY

CERTIFICATE OF DEPOSIT

confusion with deposit account, §9:20.30(1)

INDEX

IN-21 May 2016

CERTIFICATE OF DEPOSIT — continuedgenerally, §9:30.10(2)(a)promissory note distinguished, §35:10.30(1)situs of, §9:30.40

variable rate of interest on, §9:30.30(1)(b)

CERTIFIED CHEQUES

acceptance, whether equivalent to, §34:70.60(3)

authority of bank officers, §34:70.50(2)bankruptcy of drawer, effect of, §34:70.50(7)bearer cheque, §34:70.50(4)

blocking balance to provide for, §34:70.70cash substitute, as, §34:70.60(3)(b)(iv)countermand of, §34:70.50(6), §34:70.70(1)(e), §34:70.70(2)(e)death of drawer, effect of, §34:70.50(7)

defences to payment, §34:70.60(5)(c)delivery of certificate, §34:70.50(1)denial by bank, §34:70.80(1)

dishonour of, §34:70.80(2)drawer –

at request of, §34:70.70(2)

bankruptcy or death of, §34:70.50(7)duty to certify, §34:70.80(1)forgery of payee’s endorsement of, §34:70.80(4)

formal validity, §34:70.40forms of marking, §34:70.40generally, §34:70history of, §34:70.30

holder, at request of, §34:70.70(1)insolvency of certifying bank, §34:70.80(6)legal effects of –

certification by drawer, §34:70.70(1)certification by payee or other holder, §34:70.70(2)generally, §34:70.70

legal tender, as, §34:70.20liability, basis of bank’s –

acceptance, as, §34:70.60(3)collateral contract, §34:70.60(4)

estoppel, §34:70.60(2)generally, §34:70.60new proposal for, §34:70.60(5)

re-deposit, §34:70.60(1)material alteration of, §34:70.80(5)mistake, by, §23:40.30(4), §34:70.60(5)(c)(iii)

new theory of, §34:70.60(5)post-dated certification, §34:20.80(6)(a), §34:70.50(5)property in, §34:70.80(3)

refusal to certify, §34:70.80(1)requesting party –

IN-22


CERTIFIED CHEQUES — continuedrequesting party — continued

drawer, §34:70.70(2)holder, §34:70.70(1)

importance of distinction, §34:70.70(0.5)


INDEX

IN-22.1 May 2016

CERTIFIED CHEQUES — continuedstale, §34:70.80(7)stop payment of, see also COUNTERMAND OF CHEQUE

generally, §34:60.10(7), }34:70.50(6)stranger, at request of, §34:70.70(3)time of, §34:50.70(3)transfer of funds to Bank of Canada, §34:70.80(7)

transactional validity of, §34:70.50

CHARGE-BACK

authorized by account management agreement, §10:30.40(3)

collecting bank’s –duty, §10:30.50(2)right, §10:30.50(1)

credit cards and, §13:20.40(3)(g)

final payments, of, §10:30.50(3)generally, §10:30.50theoretical foundation, §10:30.50(1)

CHECK 21 ACT (US)

application to cross-border cheques, §33:30.30

CHEQUE HOLD PERIODS

Access to Funds Regulations, §9:20.20(3)(b)disclosure obligation, §9:20.20(3)(b)(ii)formal policy required, §9:20.20(3)(a)

legal maximums, §9:20.20(3)(b)

CHEQUE IN PARTIAL PAYMENT

accord, as, see also ACCORD AND SATISFACTIONgenerally, §1:30.60(2)

generally, §1:30.60satisfaction, as, §1:30.60(3)

CHEQUES

$25 million limit on sum payable, §34:20.100accord and satisfaction, and, §1:30.60application of Act to –

difficulties of interpretation, §34:30.20exceptions, §34:30.30generally, §34:30.10

‘‘bank’’, meaning of, §34:20.50

bank as holder of, §10:50.10(1)bank cheques. See BANK CHEQUESbanker’s duty to collect. See COLLECTION OF CHEQUES

banker’s duty to pay. See PAYMENT OF CHEQUESbankruptcy of drawer, §34:60.30(1)BEA, application of, §34:30.10

bill, compared, §34:20.10, §34:30.20cashier’s cheques. See BANK CHEQUEScertified. See CERTIFIED CHEQUES

INDEX

IN-23 August 2015

CHEQUES — continuedcivil proceedings, §1:30.110(3)(b)clearing of. See CLEARING SYSTEM FOR CHEQUES AND OTHER DEBITScollection of. See COLLECTION OF CHEQUES

conditional delivery of, §23:20.50conditional legends, and, §22:20.10(1)consumer cheque. See CONSUMER BILL OR NOTE

conversion of, see also BILLS OF EXCHANGE ACT, S. 165(3)generally, §10:40, }10:50

corporate, signatures on. See REPRESENTATIVE SIGNATURE ON BILL,

CHEQUE OR NOTEcredit card cheques, §13:20.20(3)(c.2)criminal proceedings, §1:30.110(3)(a)crossed. See CROSSED CHEQUES

Crown, federal, of, §34:20.30countermand of. See COUNTERMAND OF CHEQUEdeath of drawer, §34:60.20

defective, liability of parties to, §22:30definition, §22:10.10, §34:20.10delay in presentment of, §34:50

delivery, requirement of. See DELIVERY OF BILL, CHEQUE OR NOTEdemand, payable on, 34:20.70dishonour. See DISHONOUR OF CHEQUE

double-dated, §34:20.80(6)(b)drawee, holder in due course, as, §24:30.50drawer’s signature forged, §23:30.40(4)‘‘drawn on’’, meaning of, §34:20.60

duty of collecting bank, §10:30.30exchange of. See EXCHANGE OF CHEQUES AND OTHER PAYMENT ITEMSIN ACSS

evidence of payment, as, §1:30.110(3), §1:30.110(3)(a)forgery of drawer’s signature, and, §8:20.40(9)(c)(ii)formal validity, §34:20

generally, Chapter 34gift of, §23:70.10(2)government ‘‘cheques’’, §3:10.30(2)image of. See OFFICIAL IMAGE OF CHEQUE

incapacity of drawer, §34:60.30(3)lesser sum than owed, for, §1:30.60limit on sum payable by, §34:20.100

MICR encoding error, and, §11:20.70(2)(f)(iv)mistaken payment of, §9:40.40, §10:10.30(1)money, as, §3:10.30(2)

official image of. See OFFICIAL IMAGE OF CHEQUEoverdue or ‘‘stale’’, §34:20.90partnership, of, §23:50.70

permissible media, §10:10.30(1)post-dated. See POST-DATED CHEQUESpreclusion of drawer from denying forgery of, §23:40.40(2)

IN-24


CHEQUES — continuedpresentment, delay in special rule, §34:50, §34:50.20(1)properly payable items, §10:10.30reasonable time to present, §34:50.20(2)

receipt combined with, §34:20.40Receiver-General’s warrants, as, §34:20.30recovery of money paid on forgeries, §23:40.60

return –image of, §10:10.50(5)late, as payment, §1:20.50

‘‘paid’’ items, §29:60.20stale, §23:20.60(9), §25:60.10(4), §34:20.90, §34:50.20(3)stop payment. See COUNTERMAND OF CHEQUEtele-cheques, §6:50.70(1)

termination of bank’s authority, see also COUNTERMAND OF CHEQUEattaching order, §34:60.30(2)bankruptcy of customer, §34:60.30(1)

incapacity of customer, §34:60.30(2)notice of death of customer, §34:60.20

time of payment of. See FINALITY OF PAYMENT

truncation. See ELECTRONIC PRESENTMENT OF OFFICIAL IMAGEtrust –

bare notation of, §10:50.30(3)

class actions re, §10:50.30(1)payable ‘‘in trust’’, §10:50.30(2)

unsigned form, whether legal cheque, §22:20.40, §23:40.30(4)wrongful dishonour of, §10:10.80

CIVIL CODE OF LOWER CANADA

application to bills and notes, §21:40.80joint and several liability under, §35:20.20(5)

CLEARING

defined, §11:10.30system description, see also CLEARING SYSTEM FOR CHEQUES AND

OTHER DEBITSgenerally, §11:20.80(1)

CLEARING AGENT

guarantors of clients, not, §10:20.30(3)

participation in ACSS, §11:20.30(3)presence at regional exchange points, §11:20.50(1)(b)resignation of, §11:20.30(3)

returned items, and, §11:20.70(1)(f)(iii)

CLEARING AND SETTLEMENT SYSTEMS

authorized foreign banks, and, §7:50.50

Bank of Canada oversight of, §7:50.30definition of, §7:50.10designation of, §7:50.40, see also DESIGNATION OF SYSTEMS

INDEX

IN-25 November 2015

CLEARING AND SETTLEMENT SYSTEMS — continuedsecurities and derivatives, See SECURITIES AND DERIVATIVES CLEARINGHOUSES

CLEARING HOUSE

derivatives clearing house, designation of, §7:50.60(3)(b)meaning in DBNA, §37:50.10Payment Clearing and Settlement Act, and, §7:50.60

securities clearing house, designation of, §7:50.60(3)(b)

CLEARING, REPLACEMENT DOCUMENTS

generally, §11:20.70(1)(0.a)

return replacement documents. See RETURN REPLACEMENT DOCUMENTStransitional note, §11:20.70(0.5)

CLEARING RULES OF CPA

classes of payment items, §11:20.60

C.P.A., power to make, §6:50.10legal effect of –

generally, §11:50

qua members, §11:50.10qua public, §11:50.20

precedence of BEA, §11:50.30

CLEARING SYSTEM FOR CHEQUES AND OTHER DEBITS

Automated Clearing Settlement Service (‘‘ACSS’’), §11:20BEA, precedence of over ACSS Rules, §11:50.30

cheques not cleared by, §11:10.10(1) and (3)clearing agents, use of, §11:10.10(3), §11:20.30(3)clearing, in, §11:10.30, §11:20.80clearing, meaning of, §11:10.30

clearing replacement documents, §11:30.20(2)(a.5)credit union cheques, §11:20.70(1)(c)default by member. See DEFAULT IN ACSS BY CPA MEMBER

description of operation, §11:20.10direct clearers, role of. See DIRECT CLEARERSelectronic clearing exchange, §11:20.70(0.5)

exchange in, §11:10.20, §11:20.70finality of settlement in, §11:10.40, §11:20.90(4)general, Chapter 11group clearer, use of, §11:10.10(3)

image project rules, §10:30.30(1)(a), §11:20.70(0.5)items acceptable for exchange, §11:20.60legal foundation for, §11:20.20

legal relations of participants. See CLEARING RULES OF CPAmessaging system, §11:20.10(1)national electronic settlement region, §11:20.50(2), §11:20.90(2)

net-net clearing system, §11:20.10(2)on-us items, no effect on, §11:10.10(1)organization of, §11:20.40

overview, §11:20.10

IN-26


CLEARING SYSTEM FOR CHEQUES AND OTHER DEBITS — continuedpaid items, return of, §10:10.50(4)participants, }11:20.30payment items, classes of, §11:20.60(1)

regional exchange points, see also REGIONAL EXCHANGE POINTSgenerally, §11:20.40, §11:20.50(1)

representation of members in, §11:20.50

return replacement documents, §11:20.70(1)(b.1), §34:25.30(3)risk management in, §11:60settlement, in –

generally, §11:10.40, §11:20.90provisional, effect of, §10:10.50(3)

settlement of –finality, §11:20.90(4)

meaning of, §11:10.40timing of, §11:20.90(3)

system description, §11:20.80(1)

theoretical foundation, §11:20.80(2)time of payment of items in, §11:20.90(3)U.S. dollar items. See US DOLLAR BULK EXCHANGE SYSTEM

CLEARNET. See SWAPCLEAR

CLOSE CONNECTION DOCTRINE

consumer bills and notes. See CONSUMER BILL OR NOTE

facts establishing, §35:50.10Federal Discount case, §35:50generally, §35:50lender credit, and, §35:50.20

Quebec, in, §35:50.50supplements Part V of Act, §35:50.40vendor credit, and, §35:50.20

CLOSED LOOP CARDS. See DEBIT CARDS

CLOSURETM. See REAL ESTATE CLOSING FUNDS MANAGEMENT

SYSTEM

CLS BANK. See CONTINUOUS LINKED SETTLEMENT BANK

CODE OF CONDUCT FOR CREDIT AND DEBIT CARD INDUSTRY

IN CANADA, see also CANADIAN CODE OF CONDUCT FOR CREDIT AND

DEBIT CARD INDUSTRY

background, §14:15.20coming into force, §14:15.20generally, §7:40.30(2), §14:15.20

involuntary nature of, observations concerning, §14:15.20(1)policy elements, §14:15.20

CODE OF DEBIT CARD PRACTICE. See DEBIT CARDS

INDEX

IN-27 November 2016

CODES OF CONDUCT

credit cards. See CODE OF CONDUCT FOR CREDIT AND DEBIT CARDINDUSTRY IN CANADA

debit cards. See CANADIAN CODE OF PRACTICE FOR CONSUMER DEBIT

CARD SERVICES

COLLECTION OF BILLS AND NOTES

agency liability for –

generally, §10:60.30(2)sub-agency and, §10:60.30(4)

contractual liability for, §10:60.30(1)

foreign currency denominated, §11:40generally, §10:60negligence liability for, §10:60.30(3)Uniform Rules for Collections, §10:60.20, §11:40

COLLECTION OF CHEQUES

access to funds –Access to Funds Regulations. See ACCESS TO FUNDS

common law rules, §10:30.30(4)(b)agents, use of –

duty, §10:30.20

status, §10:30.10(2)bank as holder for value, when, §24:20.10(2)charge-back, right of. See CHARGE-BACK

‘‘collection only’’ endorsement, §10:30.30(4)conventional, §10:30.30(4)conversion – liability for, see also subsection 165(3) and, infra

destruction after imaging not, §34:25.90

generally, §10:40, §23:40.60(2)statutory protection against, §10:50

dishonour. See DISHONOUR OF CHEQUE

duties of bank –credit payee’s account, §10:30.30(4)generally, §10:30.30

give notice of dishonour, §10:30.30(5)present promptly, §10:30.30(2)receive payment, §10:30.30(3)select appropriate method, §10:30.30(1)

electronic media. See ELECTRONIC PRESENTMENT OF OFFICIAL IMAGEendorsement by banker, effect of, §21:20.60endorsement, missing, duty to supply, §10:30.10(2)(a.1)

forged endorsement, preclusion to deny, §23:40.40generally, §10:30hold period disclosure, §9:20.20(3)

hold period under regulation, §10:30.30(0.5)hold periods –

generally, §9:20.20(3)

2002 Regulations, §9:20.20(3)(a)2012 Regulations, §9:20.20(3)(b)

IN-28


COLLECTION OF CHEQUES — continuedhold periods — continued

disclosure, §9:20.20(3)(b)(ii), (iii) and (iv)persons protected, §9:20.20(3)(i)

method –image rule options, §10:30.30(1)(a)selection of, §10:30.30(1)

notice of dishonour, duty to give, §10:30.30(5)nursing account, §10:30.30(2.5)on-us items, §10:30.10(2)(b)

presentment —delay, special rule, §34:50.20duty to make prompt, §10:30.30(2)repeated, §10:30.30(2.5)

protection of banker. See subsection 165(3) and, infraprovisional settlement, not binding, §28:20.10reasonable time to present, §10:30.30(2)

recovery of money paid on forgery, §23:40.60restrictive endorsement, and, §25:30.30return of dishonoured items –

exceptional cases, §11:20.70(1)(f)(iv)generally, §10:30.40late return, §10:30.40(3)

official images, §11:20.70(1)(f)on-us items, §10:30.40(5)timely return, §10:30.40(2), §11:20.70(1)(f)

selection of method, §10:30.30(1)

source of duty, §10:30.20stale cheques, §11:20.60(3)(a)status when collecting, §10:30.10(2)

subsection 165(3) and –conditions precedent, §10:50.20(1)effect of, §10:50.20(2)

generallly, §10:50.20history of, §10:50.10

rights of bank, §10:50.20(2)US Dollar-denominated items, §11:30

waiver of presentment, and, §10:30.30(2)

COLLECTION OF OTHER ITEMS

agency liability, §10:60.30(2), §10:60.30(4)

contractual liability, §10:60.30(1)generally, §10:60.10liability for negligence, §10:60.30(3)

Uniform Rules for Collections, §10:60.20

COMMON LAW OF ENGLAND

law merchant and, §20:10.10, §21:40.80

pre-BEA case law, §21:40.80(2)preserved by statute, §21:40.80

INDEX

IN-29 September 2016

COMMON LAW OF ENGLAND — continuedQuebec, application in, §21:40.80‘‘strict sense’’, §21:40.80(3)

COMMON LAW TRACING OF MONEY

advantages over equitable tracing, §3:30.30Canadian case law, §3:30.40defences, §3:30.20

generally, §3:30

COMPELLING PAYMENT

commecially reasonable damages estimates, §1:30.100(4)(b)

complicating factors, §1:30.100(2)generally, §1:30.100genuine pre-estimate of actual damage, §1:30.100(4)ordinary case, §1:30.100(1)

penalty clauses, §1:30.100(3)reasonable and proper damages provisions, §1:30.100(4)(c)specific performance order, §1:30.100(1)

unconscionability as the test, §1:30.100(4)(a)

COMPETITION LAW

Interac Consent Order, §7:30.20(1)

non-card-based payment systems, and, §13:05, §14:10.10(3)payment network agreements and, §13:05, §14:10.10(2)price control, §13:18.10

refusal to deal, §7:30.20(6)tied selling, §13:18.10

COMPETITION LAW PROCEEDINGS

Commissioner v. Visa and MasterCard, §13:18.10

Watson v. Bank of America, §13:18.20

COMPLETE AND REGULAR BILL, CHEQUE OR NOTE

meaning of, §24:30.20(1)

CONFIDENTIALITY, BANKERS’ DUTY OF

duty, generally, §9:20.30(5)exceptions –

bank’s own interest, §9:20.30(5)(d)(iii)compulsion of law, §9:20.30(5)(d)(i)consent of customer, §9:20.30(5)(d)(iv)generallly, §9:20.30(5)(d)

new exceptions, §9:20.30(5)(d)(v)public duty, §9:20.30(5)(d)(ii)

grid warnings, §9:20.30(5)(d)(iii)

PIPEDA, and, §9:10.10(3)(d)PIPEDA defence to disclosure, §9:70.20(1)(c)Privacy Act, and, §9:20.30(5)(d)(iii)

scope of bank’s duty, §9:20.30(5)(c)source of bank’s duty, §9:20.30(5)(b)

IN-30


CONFIDENTIALITY, BANKERS’ DUTY OF — continuedTournier case, §9:20.30(5)(a)

CONFLICTS OF LAW (BILLS, CHEQUES AND NOTES)

capacity and, §33:80.10

foreign bills, and, §33:40.20(1)foreign currency obligations, §33:60formal validity –

anomalous situations, §33:30.20characterization, §33:20.10Check 21 Act substitute checks, and, §33:20.30

generallly, §33:30generally, Chapter 33holder’s duties –

case law, §33:50.20

generallly, §33:50jurisprudence, §33:50.10Montage v. Irvani, §33:40.30

inland bills, and, §21:20.110, §33:40.20(2)interest and, §33:80.20interpretation, §33:40

intrinsic validity, §33:40legal effect of bill or note, §33:40limitations of actions and prescription, §33:80.30

maturity of bill or note, §33:70pre-BEA case law, §33:40.10proper law of USD items, §11:30.20(2)(a)scope of rules in Act, §33:20

set off and, §33:80.40


INDEX

IN-30.1 September 2016

CONSIDERATION FOR BILL, CHEQUE OR NOTE

accommodation party and, §23:70.30(3)admissibility of evidence impeaching, §26:30.50(8)antecedent debt or liability, as, §23:70.30(2.5)

‘‘cause’’, and, §21:40.80common law of, preserved, §21:40.80consumer goods and services, see also CONSUMER BILL OR NOTE

generally, §23:70.50definition, §23:70.20executory –

knowledge by holder of, §24:30.30(2)(d)recital of, §22:20.10(2)(d)

failure of, defence, §26:30.40(4)(e), §26:30.50(8)generally, §23:70

gifts, §23:70.10(2)illegal, §26:30.40(4)(c)knowledge by holder of lack, §24:30.30(2)(c)

means, §23:70.20partial failure of, §26:30.50(8)(b)patent right, §21:40.110, §23:70.50(1)

requirement of, §23:70.10(1)seal, instruments under, §23:70.40special types of –

consumer purchases, §36:30.10patent right, §21:40.110usury, §23:70.50

unlawful, §26:30.40(4)(c)

usury, §23:70.50(2)value, compared, §24:20.20(1)

CONSOLIDATION OF ACCOUNTS

bank, right of, §9:20.60(2)bankers’ lien, and, §9:60.20(3)(a)conditions of exercise, §9:60.20(4)

credit card debt and bank balance, §13:19.30(4)(a)credit unions’ statutory right of, §9:60.10(3)(a)(ii)fraudulent preference or conveyance, and, §9:60.20(5)generally, §9:60.20(1)

lien distinguished, §9:60.20(3)(a)set-off, distinguished, §9:60.20(3)(b)

CONSTITUTIONAL LAW

‘‘bank’’ and ‘‘banker’’, meaning of, §28:20.10Bank of Montreal v. Hall, §8:20.30(1)(a)(ii)‘‘banking’’, meaning in, §8:20.20

Bill S-5 and s. 427 Bank Act, §8:20.30(1)(a)(iii)bills of exchange, and, §20:30.20Canadian Payments Act and, §7:60.20

common law of bills, application in Quebec, §21:40.80concurrent application, doctrine of, §20:30.20(3)(a)

INDEX

IN-31 May 2016

CONSTITUTIONAL LAW — continuedco-operative federalism, §8:20.20(2)(e)‘‘core’’ banking activities, §8:20.20(2)(f)(ii), §8:30.20(2)cost of borrowing disclosure –

provincial law and, §8:20.30(1)(d)interjurisdictional immunity, §8:20.30(1)(d)(i)paramountcy, §8:20.30(1)(d)(ii)

currency and coinage of Canada, foundation for, §2:10.10Depository Bills and Notes Act, and, §37:40exercise of jurisdiction, §7:35

federal common law, §9:10federal paramountcy, and, §8:20.20(2)(f)(i)federal powers, reach of, §8:20.30(2)federal purpose, and, §8:20.20(2)(f)(i)

federalism, new emphasis on diversity and, §8:20.20(2)((e)financial consumer protection, §8:20.30(1)(d)

federal case, §8:20.30(1)(d)(i)

overlapping jurisdictions, §8:20.30(1)(d)(iii) and (iv)provincial case, §8:20.30(1)(d)(ii)Quebec cases, §8:20.30(1)(d)(iv)

insurance promotion by banks, §8:20.30(1)(b)interjurisdictional immunity, §8:20.20(2)(f)(ii)joint and several liability on notes, §35:20.20(6)(a)

labour relations of banks, §8:20.30(1)(c)legal tender in Canada, foundation for, §2:10.10limitation or prescription periods, provincial law in, §20:30.20(3)(c), §28:110.30money, §3:05

money services businesses, regulation, §8:30, §8:30.30(2)paper money of Canada, foundation for, §2:10.10paramountcy doctrine, §8:20.20(2)(f)(i), §20:30.20(3)(b)

payment, §1:25Payment Cards Networks Act, and, §7:65.20Payment Clearing and Settlement Act, and, §7:50.30

payment systems and methods, §1:25possible grounds for novel forms of payment, §7:35.40provincial laws –

affecting banks’ activities, §8:20.20(1)

affecting bills of exchange, §20:30.20(3)(a)consumer protection, §8:20.30controlling banks’ activities, §8:20.30(1)

governing conversion of foreign money obligations, §2:10.20, §2:40PPSAs, §3:05.20securities regulation, §8:20.30

special Bank Act security, §8:20.30(1)(a)

CONSTRUCTIVE NOTICE

good faith and, §24:30.30(1)(a)

CONSTRUCTIVE TRUST

generally, §3:40.10(3)(f)(iv)

IN-32


CONSUMER BILL OR NOTE

agreements bar BEA void, §36:40.40arm’s length, meaning of, §36:30.20business purpose, §36:20.40

business seller, §36:20.50cash purchase, meaning of, §36:20.20cheque or other bill, §36:20.70

close connection doctrine, and, §36:20.20counterclaim, and, §36:40.30defence, §36:40.20

defence or counterclaim in, §36:40.20, §36:40.30defined terms, §36:20formal requirements, §36:20generally, Chapter 36

goods and services, for, §36:20.30‘‘in respect of’’ consumer purchase, §36:30.10liability, nature of purchaser’s, §36:20.60

marking, effect of, §36:40offences relating to, §36:50purchase, requirement of, §36:20.10

scope of Part V of Act, §36:30.30set-off, and, §36:40.20unmarked, offence, §36:50

voiding, effect of, §36:40.10waivers, and, §36:40.40

CONSUMER PROTECTION IN FEDERAL FINANCIAL STATUTES

bank customer’s complaints, §9:20.40(1)(b)

Code, proposed, §8:20.30(1)(d)(i)common law cases, §8:20.30(1)(d)(iii)consumer provision defined, §7:70.20

duplicate of provincial provision in, §13:19federal approach, §8:20.30(1)(d)(i)Financial Consumer Agency of Canada, §7:70.20

listing of, §8:20.30(1)(d)(i)multiple agencies mandated, §7:70.10overlapping regulations, §8:20.30(1)(d)(iii)provincial law, and, §8:20.30(1)(d)(ii)

punitive damages, award against bank, §13:19.20Quebec cases, §8:20.30(1)(d)(iv)regulatory standard vs. contractual norm, §13:19.10

CONSUMER PROTECTION IN PROVINCIAL STATUTES

agencies, multiple, §7:70.10application to credit card disputes –

loss or theft of card, §13:20.40(2)(d)caution concerning possible non-application to federal institutions, §13:15,§13:20.05(2)

change in interest rate, §13:20.40(2)(b(iii)continued relevance of, §13:20.40(2)(a)

INDEX

IN-33 May 2016

CONSUMER PROTECTION IN PROVINCIAL STATUTES — continuedcontractual norm vs. regulatory standard, §13:19.10damages, exemplary or punitive –

cancellation of consumer transaction, upon, §13:19.20(2)

wrongful conduct by credit card issuer, §13:19.20(1)duplication of federal provision in, §13:19federal paramountcy. See CONSUMER PROTECTION IN FEDERAL

FINANCIAL STATUTES; FINANCIAL CONSUMER PROTECTIONpunitive damages, award against bank, §13:19.20refund upon cancellation, §13:19.20(2)

set-off by issuer of credit card debt and bank balance, §13:20.40(2)(h)(v)

CONTACTLESS PAYMENT. See MOBILE-PHONE PAYMENTS AND

TRANSFERS

CONTINUOUS LINKED SETTLEMENT

bank. See CONTINUOUS LINKED SETTLEMENT BANKcurrencies settled, §19:20.20(3)designation of service under PCSA, §7:50.20(2)(a)(ii)

eligible financial contract, as, §19:20.30(4)finality of payment, §19:20.20(3)(b)(vi)generally, §19:20

operating procedure –confirmation, §19:20.20(3)(b)(ii)funding settlement, §19:20.20(3)(b)(v)

instructions, §19:20.20(3)(b)(i)netting of positions, §19:20.20(3)(b)(iii)settlement, §19:20.20(3)(b)(v)

overview, §19:20.10

risk management procedures –aggregate short position limits, §19:20.20(4)(b)compliance with international standards, §19:20.30(5)

positive adjusted account balance, §19:20.20(4)(c)short position limits, §19:20.20(4)(a)survivor pay principle, §19:20.20(4)(d)

settlement failure, §19:20.20(5)statistics of use, §19:20.20(3)

CONTINUOUS LINKED SETTLEMENT BANK

designation of service under PCSA, §7:50.20(2)(a)(ii), §19:20.20(1)

generally, §19:20.20legal analysis, §19:20.30liquidity providers to, §19:20.20(6)

operating procedures, §19:20.20(3)organization, §19:20.20(2)participant default, §19:20.20(6)

Payment Clearing and Settlement Act, and, §19:20.20(1), §19:20.30(2)regulation of, §19:20.20(1)risk management, assessment of, §19:20.30(5)

risk management by, §19:20.20(4)

IN-34


CONTINUOUS LINKED SETTLEMENT BANK — continuedrules, binding nature of –

participants, among, §19:20.30(1)public, upon, §19:20.20(1)

settlement in –failure to settle, §19:20.20(5)generallly, §19:20.20(3)(b)

CONVERSION OF FOREIGN CURRENCY OBLIGATIONS

Canadian case law, §2:20.50(2)exchange rate in bill or note, §22:70.40

generally, §2:10.10, §2:10.20time for –

breach date rule, §2:20.50(1), §2:20.50(3)(a)common law, at, §2:20.50(1)

judgment date rule, §2:20.50(1), §2:20.50(3)(b)judicial discretionary rule, §2:20.50(3)(d)legislative rules, §2:20.50(3)

maintenace orders, §2:20.50(3)(b)payment date rule, §2:20.50(3)(c)re-exchange of bill, §28:90.30

wills, in, §3:10.30(5)

CONVERSION (TORT OF)

action for –

conditions precedent, §23:40.60(2)(b)generallly, §23:40.60(2)

banks, application to, §23:40.60(2)(e)BEA s. 165(3), effect of, §23:40.60(2)(d)

cheques, of, §10:40crossed cheques, and, §34:80.30electronic funds transfers and, §16:60.10(5)

liability strict, §23:40.60(2)(c)protection of banks under s. 165(3). See COLLECTION OF CHEQUESQuebec, in, §23:40.60(3)

CORPORATE SEAL

bill or note executed under, §21:40.30full name, §21:40.30(2)speciality, whether item becomes, §21:40.30(1)

CORPORATION

capacity to draw bills and make notes. See CAPACITY OF PARTIES TO BILL,CHEQUE OR NOTE

municipal, liability on bills and notes, of, §21:40.50(2)

COST OF BORROWING

advertising, §9:20.40(1)(e)

disclosure obligations –interest, §13:20.40(2)(b)(i)interest, changes in rate, §13:20.40(2)(b)(iii)

INDEX

IN-35 May 2016

COST OF BORROWING — continueddisclosure obligations — continued

generally, §13:20.40(2)(b)(ii)interest, §13:20.40(2)(b)(i)

provincial law and, §8:20.20(2)(f)(i), §8:20.20(2)(f)(ii), §8:20.30(1)(d)regulations, §13:15.15

COUNTERFEIT MONEY, §3:90

COUNTERMAND OF CHEQUE

abuse of, §34:60.10(9)authority to give, §34:60.10(2)

branch to notify, §34:60.10(4)certified cheque, of, see also CERTIFIED CHEQUES

generallly, §34:70.70(1)(e) and (2)(e)communication to bank, §34:60.10(1), §34:60.10(4)

effect of, §34:60.10(6)generally, §34:60.10misdescription of cheque, §34:60.10(3)

notice of dishonour excused, §27:40.40post-dated cheque, of, §34:20.80(3)restitutionary rights of bank failing to obey, §34:60.10(8)

standard of care –for banks, §34:60.10(3)(b)for customers, §34:60.10(3)(a)

timely notice of, §34:60.10(5)

CPA. See CANADIAN PAYMENTS ASSOCIATION

CPA BY-LAWS


approvals required, §6:50.15authority to enact, §6:50.10By-Law No. 1, §6:10.10

By-Law No. 3, §11:20.60(1)By-Law No. 6, §6:70.10citations of current by-laws, 6:50.10

clearing by-law, §11:20.60(1)compliance by-law, §6:70.10current versions, §6:50general by-law, §6:10.10

CPA GUIDELINES

authority to enact, §6:50.50citations of current guidelines, §6:50.50

CPA RULES

A1, §11:20.60(3)A6, §6:70.20

A4, §11:20.70(1)(f)A10, §11:20.70(1)(0.a)

IN-36


CPA RULES — continuedapprovals required, §6:50.15authority to enact, §6:50.20B1, §11:20.40

B2, §11:20.70(1)(b)(iv)B3, §11:20.50(1)(a)B4, §11:20.40

B5, §11:20.70(1)(a)B10, §11:20.70(1)(b)(iii)D1, §11:20.30(1)

D2, §11:20.30(3)D3, §11:20.30(2)E1 –

debit cards and, §14:40.10(2)

generally, §11:20.70(2)(b), §14:20legal foundations of, §14:20.30

E2 –

Debit Card Code and, §16:30.40(10(a)generally, §11:20.70(2)(b), §16:30.10, §16:30.30(1), §16:30.40(1)

E3, §11:20.70(2)(b), §16:40.30(1)

E4, §14:25.10F1, §11:20.70(2)(a)(ii)F2, §11:20.70(2)(a)

F3, §11:20.70(2)(a)(ii)F4, §11:20.60(3)(b)G3, §11:20.70(1)(a)G4, §11:20.70(2)(d)

G8, §10:30.10G12, §11:20.70(2)(d)H1, §11:20.70(2)(a), §15:20.20(1)

H6, §16:50.20(1)(a)K1, §11:30.20K7, §11:30.60(2)

L1, §11:20.100(2)L2, §11:20.100(3)legal effect, §6:50.15LVTS, §12:20

rulings on validity, §6:50.15

CPA STANDARDS

authority to enact, §6:50.30

citations of current standards, §6:50.30

CREDIT BUSINESS PRACTICES REGULATIONS

FCAC oversight, §7:70.20(2)

CREDIT BUSINESS REGULATIONS

banks, and, §7:40.30(1), §13:15.10

CREDIT CARD SYSTEMS

anti-competitive agreements, and, §13:05

INDEX


CREDIT CARD SYSTEMS — continuedbanks’s powers to operate non-card-based systems, §13:05

CREDIT CARDHOLDER/ISSUER AGREEMENTS

agreement, importance of, §13:20.30(2), §13:20.40(2)

authorized users’ liability, and, §13:20.40(2)(d)(ii)authorization, cancellation of by holder, §13:20.40(2)(i)(iv)consumer transaction, refund, and, §13:19.20(2)

contract formation, approved methods, §13:20.40(2)(d)costs provided by contract, §13:20.40(2)(h)(iv)credit limits, §13:20.40(2)(j)

enforcement, §13:20.40(2)(h)costs recovery, §13:20.40(2)(h)(i)(iv)interest before and after judgment, §13:20.40(2)(h)(i)limitation, §13:20.40(2)(h)(ii)

set-off against bank account, §13:20.40(2)(h)(v)uncontested claims, simplified evidence in, §13:20.40(2)(h)(iii)

failure by issuer to honour, §10:10.80

generally, §13:20.30(2)interest –

before and after judgment, §13:20.40(h)(i)

rate, change of, §13:20.40(2)(b)(iii)limitation of issuer’s claim, §13:20.20(2)(h)(ii)merchant disputes, resolution of, §13:20.40(2)(i)

miscellaneous issues, §13:20.40(2)(m)refunds and cancellations, §13:20.40(2)(g)set-off of card debt and bank balance, §13:20.40(2)(h)(v)standing orders to charge card, §13:20.40(2)(d)(i)(iv)

unauthorized transactions, §13:20.40(2)(d)

CREDIT CARDS

access devices other than cards, §13:05, §13:20.05(0.5), §14.5:40.20

‘‘acceptor’’ explained, §13:20.20(2)‘‘acquirer’’ defined, §13:20.30(1)acquirer’s liability to pay merchant, §13:20.30(1)

agreements between participants –cardholder and issuer, §13:20.40(2)generally, §13:20.30merchant and acquirer, §13:20.30(1)

merchant and cardholder, §13:20.30(3)sponsor and participants, §13:20.30

allocation of payments, §1:30.70(1)(d)

association rules, §13:20.40(2)(i)(v)bills of exchange, sales drafts as, §13:10.10(2)(d)‘‘cardholder’’ defined, §13:20.30(2)

cardholder/issuer agreements See CREDIT CARDHOLDER/ISSUERAGREEMENTS

cash advances, §13:20.40(2)(k)(ii)

chargeback to merchant, §13:20.30(1)co-branded, §13:20.40(1.5)

IN-38


CREDIT CARDS — continuedCodes of Conduct, §13:20.30(0.5), §13:20.30(1)(b), §14:15.20consumer transaction, refund, and, §13:19.20(2)(g)contactless (RFID) cards, §13:20.20(3)(d)

cost of borrowing disclosure, §13:20.40(2)(b)(ii)credit card cheques, §13:20.20(3)(c.2), §34:20.45credit limits, effect of, §13:20.30(2), §13:20.40(2)(j)

criminal rate of interest, and, §13:20.40(2)(l)debit card network and, §14:15.20debt collection practices, §13:20.40(2)(o)

debt collection practices regulations, §13:20.40(2)(o)definition of, §13:20.05

consumer protection law, §13:20.05(2)criminal law, §13:20.05(1)

device, meaning of, §13:20.9.5(0.5)discharge in bankruptcy, §13:20.40(2)(m)disputes between cardholders and merchants, §13:20.30(2)

dual function, §13:20.30(2)(a)family debt, as, §13:20.40(2)(m)family fraud in use of, §13:20.40(2)(d)

final or conditional payment, §13:20.40(4), (5)foreign currency obligations, §13:20.30(2), §13:20.40(2)(k)fraudulent or counterfeit cards, liability for use of, 13:20.40(3)(c)

grace period, §13:20.30(2)(b)interchange fees, regulatory control over, §7:65.20(3)interest rate, change in, §13:20.40(2)(b)(iii)interest and fees, §13:20.30(2)

interest rate, change in, §13:20.40(2)(b)(iii)Internet transactions, use in, §13:20.30(1), (2), §13:20.40(2)(e), (i)(ii)‘‘issuer’’ defined, §13:20.30(2)

legal effect of card use, §13:20.40(2)(p)legal foundation, §13:10legal liability of card issuers, basis of –

generally, §13:10.10(1)implied contract, §13:10.10(2)(c)obsolete theories, §13:10.10(2)sales drafts as bills of exchange, §13:10.10(2)(d)

summary, §13:10.10(1)tripartite agreement, §13:10.10(2)(b)unilateral contract, §13:10.10(2)(a)

legal relations of parties –card association and participant, §13:20.30(4)card issuer and cardholder, §13:20.40(2)

introduction, §13:20.40merchant/acceptor and merchant bank/acquirer, §13:20.40(3)sponsors and members, §13:20.40(1)

loss allocation under Canadian Code of Practice, §14:20.50(1)loss or theft of card, §13:20.40(2)(e)mandatory contract terms, §13:20.30(2)(b)

INDEX

IN-39 May 2016

CREDIT CARDS — continuedmerchant/acceptor - cardholder relationship –

case law interpreting, §13:20.40(4)(b)finality of payment, §13:20.40(4), (5)

principle, in, §13:20.40(4)(a)recourse, significance of preservation of rights, §13:20.40(4)(a), (b)risk of non-payment, §13:20.40(5)

summary and conclusion, §13:20.40(4)(c)unauthorized transactions, effect of, §13:20.40(4)(d)

merchant/acquirer relationship –

authorization of transaction, effect of, §13:20.30(1), §13:20.40(3)(d)banking and security, §13:20.40(3)(f)chargeback of transactions, §13:20.40(3)(g)common contractual terms, §13:20.30(1), §13:20.40(3)(a)

creation of, §13:20.40(3)(a)Internet transactions, risk in, §13:20.40(3)(e)‘‘merchant factoring’’, §13:20.40(3)(b)

oral variation of, §13:20.40(3)(c)payment, right to receive, §13:20.40(3)(d)permissible uses of cards, §13:20.40(3)(b)

processing transactions, duty of merchant, §13:20.40(3)(c)telephone transactions, risk in, §13:20.40(3)(e)termination, §13:20.40(3)(b), (h)

terms of terminal and card use, §13:20.40(3)(b)unauthorized transaction, risk of, §13:20.40(3)(d)

merchant bank defined, §13:20.30(1)merchant/customer relationship –

dispute resolution, §13:20.40(2)(i)generally, §13:20.30(3)

merchant holders, effect of, §13:20.40(2)(j)

mobile phone access, §14.5:40.20monitoring of use, §13:20.40(2)(g)(i)negative option marketing, §14:15.20

netting and settlement of claims, §13:20.20(1)(a), §13:20.20(4), (5)network integrating contracts, §13:20.20(1)(b)(i)organizational infrastructure –

cardholder payment, §13:20.20(6)

exchange of sales vouchers, §13:20.20(4)generally, §13:20.20(1)merchant bank/acquirers’ functions, §13:20.20(2)

merchant/acceptors’ functions, §13:20.20(2)netting and settlement of claims, §13:20.20(1)(a) and (5)other participants’ functions, §13:20.20(1)(b)

sponsors’ functions and terms of dealing, §13:20.20(1)(a)over-limit fees, §13:20.30(2)(b)payment by cardholder fraudulent preference, §13:20.40(2)(m)

personal information, §13:20.40(2)(a.1)‘‘plastic money’’, §13:10.20(2)(c)PIN security, §13:20.40(2)(f)

IN-40


CREDIT CARDS — continuedpremium card marketing, §13:20.30(2)(a), §14:15.20prepaid credit cards. See PREPAID CREDIT CARDSprinciples of law, absence of, §13:20.40

privacy policies, §13:20.30(2)refund on cancellation of consumer transaction, §13:20.40(2)(g)regulation, §13:15, and see REGULATION OF CREDIT CARD AGREEMENTS

secured, §13:20.20(3)(c.1)security of card and PIN, holder’s duty, §13:20.30(2), §13:20.40(2)(f)service providers, §13:20.20(1)(b)(ii)

‘‘sponsor’’ explained, §13:20.20(1)(a)system description, §13:20.20telephone transactions, use in, §13:20.30(1), (2), §13:20.40(2)(e)termination, §13:20.40(2)(m)

types of cards –bank cards, §13:20.10(1)business cards, §13:20.20(3)(b)

charge cards, §13:20.10(1)contactless cards, §13:20.20(3)(d)merchant cards, §13:20.10(2)

prepaid credit cards, §13:20.20(3)(c)RFID, §13:20.20(3)(d)‘‘touch and go’’ cards, §13:20.20(3)(d)

typical contract terms, §13:20.30(2)(a)unauthorized transactions –

loss or theft of card, §13:20.40(2)(e)(i)other cause, §13:20.40(2)(e)(ii)

unauthorized use, liability for, §13:20.30(2)unilateral contract and, §13:10.10(2)(a)unsolicited distribution of, §13:20.40(2)(a)

wrongful conduct by issuer, §13:19.20(1)zero liability policies, §14:25.10, §14:20.40(5)

CREDIT TRANSFERS

debit transfers distinguished, §15:10.10(1)definition, §15:10.10(1)electronic systems, generally, §16:10.20(3)finality of payment. See FINALITY OF PAYMENT

recurring and single instance distinguished, §15:10.10(2)SWIFT message standards, §16:20.10(2)(b)time of payment, §16:60.10(5)

CREDIT UNIONS

‘‘bank’’ for certain purposes, §8:20.30(3), §34:20.50banking by, §8:20.30(3)

cheques on, collection of, §11:20.70(1)(c)CPA membership, of, §11:20.30(4)Credit Union Central, §11:20.70(1)(c)

indsutry organization, §6:30.20(1)(c)statutory lien on deposits, §9:60.10(3)(a)(ii)

INDEX


CRIMINAL RATE OF INTEREST

goods and services contracts, on, §1:30.90(8)(c)history of, §1:30.90(8)(a)late payment fees as, §1:30.90

offence by lenders, §1:30.90(8)(b)section 58 BEA, application to, §24:50.10spectrum of judicial remedies, §1:30.90(8)(b)

statutory exceptions, §1:30.90(8)(d)usurious, as, §24:50.10

CROSSED CHEQUES

customer without title, §34:80.50dividend warrants, application of Act to, §21:40.50generally, §34:80materiality of crossing, §34:80.30

methods of crossing, §34:80.20

CROWN

government payment warrants, §21:40.50

liability upon bills and notes, of, §21:20.40(3)‘‘person’’, whether, §21:20.40(3)

CUETS. See CREDIT CARDS; CREDIT UNIONS

CURRENCY

account, of. See CURRENCY OF ACCOUNTantique, references to, §2:20.40(3)(b)

Bank of Canada notes, see also BANK OF CANADA NOTESgenerally, §2:20.20

Canada, of, §2:20constitutional law foundation. See CONSTITUTIONAL LAW

cryptocurrency, §2:20.40(3)(a)current coin. See CURRENT COINdigital, §2:20.40(3)(a)

foreign. See FOREIGN CURRENCYjudgment, of, §1:30.80(3)lawful money. See LAWFUL MONEY OF CANADA

legal proceedings, references in, §2:20.40(2)(b)legal tender. See LEGAL TENDERlocal currencies, §3:100meaning of term, §2:20.10(1), §3:10.40(3)

mill, abolition of, §2:20.40(5)monetary unit of Canada, §2:20.10outstanding value, §2:20.10(2)

payment, of. See CURRENCY OF PAYMENTpenny, elimination of, §2:20.40(5)(b)references in agreements, §2:20.40(3)

symbol ‘‘$’’, significance of, §2:20.40(4)transfer, legal effect of, §3:20.10(1)US Dollarization, §2:20.10(3)

virtual, §4:50

IN-42


DEBIT CARDS — continuedprefunded debit cards. See PREPAID DEBIT CARDSpremium card marketing, §14:15.20prepaid credit cards. See PREPAID CREDIT CARDS

processing transactions –authentication, §14:20.40(3)authorization, §14:20.40(3)

devices, §14:20.40(1)exchange, clearing and settlement, §11:20.70(2)(b)(ii), §14:20.40(4)generally, §14:20.40

privacy, §14:20.40(2)security, §14:20.40(2)

system description. See INTERAC DIRECT PAYMENTtermination penalties, §14:15.20

unsolicited issue, §14:40.30(2)

DEBIT EXCHANGEgenerally, §11:10.10

DEBIT TRANSFERScredit transfers distinguished, §15:10.10(1)definition, §15:10.10

electronic systems, generally, §16:10.20(3)pre-authorized payments, see also PRE-AUTHORIZED DEBITS

generally, §15:20

recurring versus single instance, §15:10.10(2)

DEBTOR-INITIATED PAYMENTPPSA, and, §3:20.10, 15:20.30(3)

DEFAULT IN ACSS BY CPA MEMBER

additional contributions by survivors, }11:20.100(2)(h), (i)denial of access by defaulter, }11:20.100(2)(e)direct clearer, by, }11:20.100(2)generally, }11:20.100governing law, }11:20.100(2)(a)history of policies and procedures, }11:20.100indirect clearer, by, }11:20.100(3)meaning of ‘‘default’’, }11:20.100(2)(b), }11:20.100(3)(b)notification of default, }11:20.100(2)(d), }11:20.100(3)(c)official action required upon, }11:20.100(2)(c)purging of post-dated items, }11:20.100(2)(f), }11:20.100(3)(d)settlement by survivor(s), }11:20.100(2)(g), }11:20.100(3)(e)

DEFAULT IN LVTS BY PARTICIPANT

Bank of Canada decision, §12:30.50generally, §12:30.50Superintendent’s powers, §12:30.50(1)

DEFAULT IN USBES BY PARTICIPANTunwinding, §11:30.90

INDEX


DEFECT OF TITLE TO BILL, CHEQUE OR NOTE

breach of faith, §26:30.40(4)(d)consideration –

executory, as, §24:30.30(2)(d)

failure of, as, §24:30.30(2)(c)cut-off clause, and, §24:30.90definition, §26:30.40(1)

duress, §26:30.40(4)(b)effect of, §26:30.40(3)equity of bill, as, §26:30.50(8)(b)(iii)

fraud, as, §26:30.40(4)(a)generally, §24:30.30(2)(b), §26:30.40good faith, and, §24:30.30illegality, §26:30.40(4)(c)

knowledge by holder of, §24:30.30(2)(b)list not exhaustive, §26:30.40(1)non est factum, §26:30.40(4)(a)

notice of, §24:30.30personal defences distinguished, §26:30.40(2)post-maturity transferee, against, §26:30.40(3)(b)

real defences distinguished, see also REAL DEFENCESgenerally, §24:30.30(2)(a)

usury, knowledge of, §24:60

DEFENCES TO LIABILITY ON BILL, CHEQUE OR NOTE

absolute defences. See real defences, infraaction and defence defined, §21:20.20admissibility of evidence establishing, §28:100.30(4)

authority to sign, lack of, §23:40.30

IN-44


DEFENCES TO LIABILITY ON BILL, CHEQUE OR NOTE — continuedBill C-305 defences, §26:30.40(5)breach of faith, negotiation in, §26:30.40(4)(d)capacity, want of, see also CAPACITY OF PARTIES TO BILL, CHEQUE OR

NOTEgenerally, §23:30.10, §26:30.50(1)

classification of, §26:30.20

close connection, see CLOSE CONNECTION DOCTRINEconditional delivery, §23:20.50(1)consideration, failure of –

generally, §24:30.30(2)(c), §26:30.40(4)(e)partial, §26:30.50(8)(b)total, §26:30.50(8)(a)

consumer bill or note, §36:40.20

contractual, see also FAILURE OF CONSIDERATION FOR BILL, CHEQUEOR NOTEauthority to sign, lack of, §26:30.50(1)

available defences, §26:30.50capacity, lack of, §23:30.10, §26:30.50(1)consideration, failure of, §26:30.50(8)

contractual intent, lack of, §26:30.50(1)fraud, §26:30.50(5)frustration, §26:30.50(2)

generally, }26:30.50misrepresentation, §26:30.50(5)mistake, §26:30.50(6)statute, breach of, §26:30.50(7)

suspensive condition, §26:30.50(3)unconscionability, §26:30.50(5)writing, lack of sufficient, §26:30.50(2)

counterclaim, §21:20.20cut-off clause and, §36:40.40defects of title. See DEFECT OF TITLE TO BILL, CHEQUE OR NOTE

defence defined, §21:20.20duress, §26:30.40(4)(b)forged or unauthorized signature, §23:40.20formal validity, issues of, §26:30.10(2)(a)

frustration, §26:30.50(2)illegality, §26:30.40(4)(c)immediate parties, between, §26:30.10(1), §26:40.10(3)

infancy, §23:30.30intent, lack of, §26:30.50(4)intoxication, §23:30.40(3)

mental incompetence, §23:30.40misrepresentation, §26:30.50(5)mistake, §26:30.50(6)

non est factum, §26:30.40(4)(a)personal, §26:30.40(2)practice and procedure, effect of, §26:30.50(8)(b)(iii)

INDEX

IN-45 November 2015

DEFENCES TO LIABILITY ON BILL, CHEQUE OR NOTE — continuedreal defences –

content of, §26:30.30(1)effect of, §26:30.30(2)

generally, §26:30.30returned items, on, §26:30.50(9)secondary parties, of, §27:20.10(2), §27:20.50

seize or sue legislation, as, §26:30.50(7)set-off, action and, §21:20.20summary judgment proceedings, in, §26:40, and see SUMMARY JUDGMENT ON

BILL OR NOTEstatute, breach of, §26:30.50(7)types of, §26:30.20undue influence, §26:30.40(4)(b)

unliquidated claim against payee, §26:40.10(3)usury, knowledge of, §24:50

DEFINITIONS

Bills of Exchange Act, §21:20

DELIVERY OF BILL, CHEQUE OR NOTE

acceptance, of, §22:90.20

agent, by, §22:90.30(1), §23:20.50(4)certified cheque, of, §34:70.50(1)communication of acceptance, §23:20.30

conditional, §23:20.50(5)constructive, §21:20.50(6), §23:20debt suspended upon, §1:30.50(1)defined, §21:20.50(1), §22:90.10, §23:20

escrow of bill, §23:20.50(3)examples of requirement, §23:20.20generally, §23:20

incomplete instrument, of, see also INCOMPLETE BILL, CHEQUE OR NOTEgenerally, §23:20.60

payment, as, §1:30.50

post, by, §21:20.50(8)presumption of –

generally, §23:20.40irrebuttable, §23:20.40(3)

rebuttable, §23:20.40(3)promissory note, of, §35:20.10reason for requirement, §23:20.10

section 165(3), for purposes of, §10:50.20(1)(b)secured debt not suspended, §1:30.50(2)(a)special purpose, for, §23:20.50

transfer of negotiable instrument by, see also TRANSFER OF BILL, CHEQUE ORNOTE BY DELIVERY

unauthorized –

authority, strict, §23:20.60(7)complete, §23:20.50(5)

IN-46


DELIVERY OF BILL, CHEQUE OR NOTE — continuedunauthorized — continued

incomplete, §23:20.60(7)under DBNA, §37:70.30(1)

DEMAND BILL OR NOTE

accelerated maturity, and, §22:50.10(4)limitation period, commencement of, §28:110.10(4)

no time of payment expressed, when, §22:50.10(2)note payable when payee ‘‘insecure’’, §22:50.30(4)overdue, when, §25:60.10(3) and (4)

‘‘sight’’, not payable on, §22:50.10(1)when bill or note payable on, §22:50.10

DEMAND GUARANTIES

common law development –

Canadian case law, §13:30.20(5)(b)(ii)ICC texts, §13:30.20(5)(a)

application, §13:30.20(5)(a)(ii)

history and general, §13:30.20(5)(a)(i)UK case law, §13:30.20(5)(b)(i)

conflict of laws –

conventional law, §13:30.130(1)UIGLC Act, §13:30.130(2)

forgery of material document, §13:30.80(2)

fraud and, (conventional law) §13:30.70Canadian cases, §13:30.70(2)ICC Rules, inadequacy of, §13:30.70(1)

fraud and, UIGLC Act –

general, §13:30.75interpretation, §13:30.75(2)statutory test, §13:30.75(1)

honour, §13:30.50illegality, §13:30.80(1)insolvency –

applicant, of, §13:30.120(2)beneficiary, of, §13:30.120(3)issuer, of, §13:30.120(1)

interpretation of, §13:30.40

mistake, §13:30.80(3)real estate transactions, in, §13:30.70(3)(a)reimbursement of issuer, §13:30.100, §13:30.110

security intent, relevance of, §13:30.70(3)(b)UCP500/600, misapplication of, §13:30.70(1)UIGLC Act, see also UNIFORM INDEPENDENT GUARANTIES AND

LETTERS OF CREDIT ACTgenerally, §13:30.20(5)(c)

underlying illegality, §13:30.80(1)

INDEX

IN-47 November 2015

DEPOSIT (BANK)

access to funds. See ACCESS TO FUNDSaccount, meaning of, §9:30.40(1)(c)address for service with respect to, §9:30.40(1)

assignment by customer, §9:30.20Bank Act definition of, §9:30.10(2)(a)bankers’ lien on, §9:60.10(3)(a)

blocked, §9:60.20(3)(b), §10:10.30(1)branch of account. See BRANCH OF ACCOUNTbusiness of taking, regulation of, §9:30.10(2)(d)(iv), §14:40.30(1)

Canada Deposit Insurance Act, definition in, §9:30.10(2)(b)capacity, customer’s, §9:10.20(2)‘‘cash on deposit’’, meaning of, §3:10.40(1)certificate of. See CERTIFICATE OF DEPOSIT

cheque hold periods, §9:20.20(3)conditional repayment obligations, §9:30.30(1)(a)(iii)contract, banks’ freedom of, §9:30.30(1)

credit union, with, §9:30.10(2)(d)(ii)debt of bank, §9:30.20

property, as, §9:30.20(2)

defences to repayment, §9:30.20definition, §9:30.10demand, presumption, §9:30.30(1)(a)(i)

depositor, property of, §9:30.20(3)Dexit funds, as, §14:50.10(2)(a)disclosure of interest rates on, §9:20.40(1)(d)electronic media, by, §34:25.30(4)

Financial Institutions Depositors Compensation Act –definition in, §9:30.10(2)(c)

‘‘first $100’’, §10:30.30(4)(b)(v)

foreign currency, §9:30.30(1)(a)(iii)frozen, §10:10.30(1)generally, §9:30.10(1)

hold periods on, §9:20.40(1)(e)index-linked returns on, §9:20.40(1)(d)(ii)interest, right to, §9:30.30(1)(b)limitation of actions on, §9:30.50

liquidated demand, §9:30.30(1)(a)(iii)loan company, with, §9:30.10(2)(d)(i)meanings in BEA s. 165(3), §10:50.20(1)(d)

meaning in DBNA, §37:50.20mobile phone, by, §14.5:70, §34:25.30(4)official image, by, §34:25.30(4)

ownership of funds, §9:30.20(1)perpetual, §9:30.30(1)(a)(iii)prescription of rights, §9:30.50

property, as, §9:30.20provincial statutes, definitions in, §9:30.10(2)(d)remote, §14.5:70, §34:25.30(4)

IN-48


DEPOSIT (BANK) — continuedsitus of –

Indian Act, for purposes of, §9:30.40(1)(b)ordinary purposes, for, 9:30.40(1)(a)

specific purpose, for, §3:20.50(1)stale claim to, §9:30.350terms of. See TERMS OF DEPOSIT

time, §9:30.30(1)(a)(ii)trust company, with, §9:30.10(2)(d)(iii)trusts of. See TRUST OF DEPOSIT

types, §9:30.30(1)(a)unauthorized payment by bank, §9:30.20uncertain sum, §9:30.30(1)(a)(iii)unclaimed, §9:30.60

DEPOSITORY BILLS AND NOTES

authorization, §37:70.20CDS’ representative interest, §37:100.20

consideration, }37:70.10defences, §37:80.30definition –

bill, §37:60.10note, §37:60.20

delivery –

generally, §37:70.30under OBCA, §37:70.30(1)(a)under STA, §37:70.30(1)(b)

discharge, §37:90

forgery, §37:80.30(2)formal validity, §37:60generally, Chapter 37

holder’s duties at maturity, §37:100.10legend requirement, §37:60.10(4)liability of parties –

acceptor or maker, §37:80.10drawer and endorser, §37:80.20generally, §37:80variation by contract, §37:80.20(1)

provincial securities transfer law, and, §37:20.10Securities Transfer Act, relationship with, §37:20.20(1)signature requirement, §37:60.10(2)(b)

terms of instruments, §37:60.10(3)transactional validity, §37:70writing requirement, §37:60.10(2)(a)

DEPOSITORY BILLS AND NOTES ACT

constitutional validity, §37:40in pari material with BEA, §37:50.50

interpretation, §37:50legislative history, §37:30

INDEX

IN-49 November 2016

DEPOSITORY BILLS AND NOTES ACT — continuedliability of parties –

partnership, trust, estate or unincorporated association, §37:60.10(1)raison d’etre, §37:10.10

relationship with provincial law –OBCA, §37:20.10USTA, §37:20.20

DEPOSIT-TAKING

prohibition of, §9:30.10(2)(d)(v)

DERIVATIVES CONTRACTS

clearing and settlement of. See CANADIAN DERIVATIVES CLEARINGCORPORATION

definition of, §18:10.10exchanges and market structure, §18:10.20

risk assessment –exchange-traded contracts, §18:20.10generally, §18:20

over-the-counter contracts, §18:20.20statistics, §18:10.30

DESIGNATION OF PAYMENT SYSTEMS (PCSA). See CLEARING AND

SETTLEMENT SYSTEMS; SECURITIES AND DERIVATIVES CLEARING

HOUSES

DESIGNATION OF SYSTEMS

benefits of, §7:50.40(3)(a)burdens of, §7:50.40(3)(b)challenge to, §7:50.40(4)foreign systems, of, §7:50.40(6)

payments system risk, designation to avert, §7:50.40process of, §7:50.40, §7:50.60(3)(b)securities and derivatives clearing houses, §7:50.60(3)(b)

systemic risk, designation to avert, §7:50.40

DEXIT ‘‘INSTEAD OF CASH’’ SERVICE

finality of payment, §14:50.10(2)(f)

generally, §14:50.10legal analysis, §14:50.10(2)loss allocation, §15:50.10(2)(e)on-us transfers, §14:50.10(2)(b)

system description, §14:50.10(1)regulatory issues, §14:50.10(2)(d)risk management, §14:50.10(2)(c)

DIGITAL CURRENCY

criminal usage, §4:50.30(2)(c)definition of, §4:50.30(2)(e)

exchange,definition of, §4:50.30(2)(e)

IN-50


DIGITAL CURRENCY — continuedexchange — continued

FINTRAC reporting obligations, §4:50.30(2)(d)legal character of, §4:50.30(2)(b)

regulation of, 2014 proposal §4:50.30(2)Senate of Canada Report on, §4:50.30(2)

DIRECT CLEARERS

Bank of Canada, agreements with, §5:20.20 and .20(1)default by, §11:20.100(2)participation in ACSS, §11:20.30(1)

presence at regional exchange points, §11:20.50(1)(a)

DIRECT DEBITTING. See PRE-AUTHORIZED DEBITS

DIRECT DEPOSITS. See AUTOMATED FUNDS TRANSFER SYSTEM

DISCHARGE OF LIABILITY ON BILL, CHEQUE OR NOTE

cancellation, by. See CANCELLATION OF BILL, CHEQUE OR NOTEdeemed satisfaction, §29:80default by payee, by, §1:30.60(3)(a)

generally, Chapter 29material alteration, by. See MATERIAL ALTERATION OF BILL, CHEQUE ORNOTE

payment, by. See PAYMENT OF BILL, CHEQUE OR NOTE IN DUE COURSEpayment by drawer or endorser –

effect of, §29:30.10

generally, §29:30reimbursement, §29:30.10renegotiation of, §29:30.20

renunciation, by. see RENUNCIATION OF LIABILITY ON BILL, CHEQUE OR

NOTEtransfer to primary party at maturity, by, §29:40

DISCLOSURE DUTIES OF BANKS

account charges and fees, §9:20.40(1)(a)cheque deposits holding period, §9:20.40(1)(e)complaint-handling procedures, §9:20.40(1)(c)

cost of borrowing, §9:20.40(1)(c)interest rates on accounts, §9:20.40(1)(d)(i)interest rates on debt instruments, §9:20.40(1)(d)(ii)PIPEDA disclosure, §9:20.40(2)

DISHONOUR OF BILL OR NOTE

non-acceptance, by, §27:20.40non-payment, by, §27:30.50

qualified acceptance, by, §27:20.50recourse, rights of, upon, §27:20.40(2), §27:30.50(2)revives suspended debt, §1:30.50(1)

transfer of. See TRANSFER OF BILL, CHEQUE OR NOTE AFTERMATURITY/DISHONOUR

INDEX

IN-51 November 2016

DISHONOUR OF CHEQUE

charge-back by collecting bank, §10:30.40(3), §10:30.50generally, §10:30.40item presented directly at drawee, §10:30.40(1)

late return –generally, §10:30.40(3)post-2000, §10:30.40(3)(b)

pre-2000, §10:30.40(3)(a)on-us items, §10:30.40(4)payee, claim against drawee by, §10:30.40(4)

timely return through clearing, §10:30.40(2)wrongful, liability of drawee for, §10:10.80

DIVIDEND WARRANTS

application of BEA to, §21:40.50(1)

DRAFT

bank draft. See BANK DRAFT (BANK CHEQUE; OFFICIAL CHEQUE)meaning of term, §21:20.120(1)

DRAWEE OF BILL OR CHEQUE

acceptance by, §22:90.10certainty in naming, §22:40.10

defined, §22:40.10drawer, same person as, §22:40.40(2)fictitious, §22:40.10(4)

formalities of engagement, §22:90holder in due course, as, §24:30.50liability of, §10:10.60(1), §28:20.10more than one, §22:40.10(2)

payee, same person as, §22:40.40(3)referee in case of need. See REFEREE IN CASE OF NEEDrestitution for, §10:10.70

several, §22:40.10(2)wrong designation of, §22:90.30(6)

DRAWER OF BILL OR CHEQUE

certainty in naming, §22:40.20(1)certification of cheque at request of, §34:70.70(2)death of, effect, §34:60.20defined, §21:20.120(2), §22:40.20

‘‘draw’’, meaning of, §21:20.130drawee, same person as, §22:40.40(2)engagement of, §28:40.10

fictitious, §22:40.20(3)forged signature of, §9:40.60(3), §23:40.30(3), §22:40.30(9)(c), §23:40.60(6)(a)generally, §22:40.20

liability, disclaimer of, §22:80.40(1)payee, same person as, §22:40.40(1)payment of bill by, effect of, §29:30

preclusions of, §28:40.10

IN-52


DRAWER OF BILL OR CHEQUE — continuedseveral, §22:40.20(2)

DRAWN

bill, meaning of, §21:20.110(3)

no place specified, §22:80.20

DURESS

defect of title, §26:30.40(4)(b)

effect on holder, §24:30.50(4)(b)

DUTIES OF HOLDER OF BILL, CHEQUE OR NOTE AT MATURITY

cheque collection system, and, §27:10.10

conflicts of law, and, §33:50failure to perform, discharge of secondary parties, §27:20.10(2)generally, §27:10notice –

of dishonour. See NOTICE OF DISHONOURof protest. See NOTICE OF PROTEST

presentment –

for acceptance. See PRESENTMENT FOR ACCEPTANCEfor payment. See PRESENTMENT FOR PAYMENT

promissory note, special rules regarding, §35:60

protest. See PROTEST OF BILL, CHEQUE OR NOTEwaiver of, §22:80.40(4), §27:10.20

ECONOMIC SANCTIONS

generally, §3:70special economic measures, §3:70.20terrorist financing, §3:70.30United Nations Act, §3:70.10

EDI. See ELECTRONIC DATA INTERCHANGE

EFFICIENCY AND SAFETY OF PAYMENT SYSTEMS

Canadian Payments Act, and, §7:60

designation of systems –consequences of, §7:60.10(2)criteria, §7:60.10(1)

policy rationale, §7:60.10(1)(a)systems caught, §7:60.10(1)(b)

enforcement, §7:60.10(4)foreign systems, application to, §7:60.10(3)

generally, §7:60informational requirements, §7:60.10(2)(a)legitimacy of concern, §7:60.20(1)(b)

Ministerial directives –excessive, risk of, §7:60.20(1)(d)generally, §5:60.10(2)(b)

reasonableness, §7:60.20(1)(a)

EFT. See ELECTRONIC FUNDS TRANSFER SYSTEMS

INDEX

IN-53 November 2016

ELECTRONIC ACCOUNT ACCESS

commerically reasonable levels of security, §9:40.40(3)generally, §9:40.40(2)(a)typical contract terms, §9:40.40(2)(b)

ELECTRONIC COMMERCE

consumer protection in, §16:20.10(3)(b)contracting, §16:60.10(1)(c)(i)

evidence, §16:60.10(1)(c)(iv)federal government initiatives, §16:20.10(1)(c)Industry Canada Task Force Report, §16:20.10(1)(a)(i)

international influences, §16:20.10(1)(b)money laundering and, §16:60.10(1)(e)payments, §16:60.10(1)(c)(iii)privacy legislation and, §16:60.10(1)(d)

privacy policy and, §16:20.10(1)(d)signatures, §16:60.10(1)(c)(ii), §16:60.10(3)(b)

ELECTRONIC DATA INTERCHANGE

authentication, authorization, approval, §16:40.30(3)clearing and settlement of items, §16:40.30(4)countermand of, §16:40.30(6)

Debit Card Code, non-application of, §16:40.40EDIFACT, §16:20.10(2)(a)exchange of items, §11:20.70(2)(b)(iii), §11:20.90(2), §16:40.30(4)

generally, §16:40.10infrastructure –

financial institutions’ requirements, §16:40.20(2)generally, §16:40.20

trade partners’ requirements, §16:40.20(1)legal relations, §16:40.50message standards, §16:20.10(2)(a)

payment –conditional or final, §16:40.50(1)(a)proof of, §16:40.50(1)(b), (3)(b)

time of, §16:40.50(3)(a)record-keeping and tracing, §16:40.30(5)refunds and adjustments, §16:40.30(6)Rule E3, §16:40.30(1)

technical standards, §16:20.10(2)(a)transaction processing, §16:40.30, (2)unreturnability of items, §11:20.70(2)(d)

ELECTRONIC DEPOSIT OF OFFICIAL IMAGE

definition, §9:20.10(2)(a)formation of banking relationships by, §9:20.10(2)(a)(i)

notification, by. See ELECTRONIC NOTIFICATIONregulations, §9:20.10(2)

ELECTRONIC FUNDS TRANSFER SYSTEMS

authority of payor, §16:60.10(5)(a)

IN-54


ELECTRONIC FUNDS TRANSFER SYSTEMS — continuedbill payment. See BILL PAYMENT SERVICESEFT and AFT distinguished, §11:20.70(2)electronic commerce statutes and, §16:60.10(1)(c)

electronic contracting and, §16:60.10(1)(c)(i)electronic evidence, §16:60.10(1)(c)(iv)electronic payments, compulsory, §16:60.10(1)(c)(iii)

electronic signature and, §16:60.10(1)(c)(ii)error –

beneficiary bank, by, §16:60.10(5)(e)

intermediary bank, by, §16:60.10)(5)(d)originating bank, by, §16:60.10(5)(c)payor, by, §16:60.10(5)(b)transferor bank, by, §16:60.10(5)(d)

federal government use of, §16:60.10(1)(b)finality of payment, in, §16:60.10(5)(f)money laundering and, §16:60.10(1)(e)

money, whether system transfers. See FUNDS TRANSFERSparticipation must be voluntary, §16:60.10(1)(c)(iii)privacy law and, §16:60.10(1)(d)

recurring payment systems explained, §15:10.10(2)single-instance systems –

explained, §15:10.10(2), §16:10.10(1)

policy statements affecting, §16:20.10recurring payment systems distinguished, §15:10.10(2)technical standards, §16:20.20(2)

‘‘streams of electrons’’, as, §3:40.10(3)(g)(ii)

tracing money through. See TRACING MONEY – EQUITABLEtransaction processing, §16:60.10(5)(d)transmitted debits. See single-instance systems, supra

unjust enrichment by mistaken, §16:60.10(5)(c)

ELECTRONIC MONEY

access products distinguished, §4:40

classification of, §4:40definitions of, §4:40e-payments. See INTERNET PAYMENTSgenerally, §4:40

m-payments. See MOBILE-PHONE PAYMENTS AND TRANSFERSMint Chip, §4:40.05MtGox insolvency, §4:50.20

policy issues raised by –commercial law issues, §4:40.20(1)consumer protection issues, §4:40.20(4)

criminal law issues, §4:40.20(5)generally, §4:40.20monetary law issues, §4:40.20(2)

regulatory issues, §4:40.20(3)system descriptions, §4:40.10

INDEX

IN-55 November 2016

ELECTRONIC NOTIFICATION

administrative matters, §9:20.10(2)(b)(v)designating a system to receive, §9:20.10(2)(b)(i)generally, §9:20.10(2)

informed consent of customer, §9:20.10(2)(b)(ii)interpretation of Act and Regulations, §9:20.10(2)(a.1)prerequisites to use, §9:20.10(2)(b)

regulations, §9:20.10(2)

ELECTRONIC PRESENTMENT OF OFFICIAL IMAGE

ACSS Rules, §11:20.70(1)(0.a), §11:20.70(1.5)

generally, §34:25.50implementing action by CPA, §34:25.20official image. See OFFICIAL IMAGE OF CHEQUEstatutory authority, §34:25.10

ELIGIBLE BILL

definition of, see also OFFICIAL IMAGE OF CHEQUEgenerally, §21:20.140(1)

destruction of, §29:60.30, §29:70.10(2)loss of, §31:30.10(4)presentment of. See ELECTRONIC PRESENTMENT OF OFFICIAL IMAGE

ELIGIBLE FINANCIAL CONTRACTS

CDSX, in, §17:50.30(1)CLS settlements, whether, §19:20.30(4)

definitions of, §18:10.10description of effects, §19:10.40(3)(a)

ENDORSEE OF BILL, CHEQUE OR NOTE

defined, see also HOLDER OF BILL, CHEQUE OR NOTE

generally, §21:20.130liability of endorser to, §28:50.10preclusion of endorser in favour of, §28:50.20

ENDORSEMENT OF BILL, CHEQUE OR NOTE

additional words in, §25:30.70allonge, on, §25:20.30

anomalous. See ANOMALOUS ENDORSEMENT OF BILL, CHEQUE ORNOTE

assignment, additional words of, §25:30.70(2)bank stamp as, §11:20.70(1)(e)

blank, §25:30.10collecting banker, by, §11:20.70(1)(e)conditional, §25:30.60

contract, as, §25:20.10conversion of blank to special, §25:30.20(1)definition, §21:20.60

disclaimer of liability, in, §25:30.40facultative, §22:80.40(4), §27:10.20forged, return of item and, §11:20.70(1)(f)(iv)

IN-56


ENDORSEMENT OF BILL, CHEQUE OR NOTE — continuedforgery of, §23:40.60(4)(b), §23:40.60(5)(b)


INDEX


ENDORSEMENT OF BILL, CHEQUE OR NOTE — continuedformal requirements of, §25:20.20forms of. See FORMS OF ENDORSEMENTgenerally, §25:20

guaranty, words of, §25:30.70(1)intention to endorse, §25:20.40irregular, §25:20.50

liability of endorser, §28:50negotiation of bill by, §25:20.10non-conforming, §25:20.20(2)

non-entity payees, §25:20.50order of, presumption, §25:20.60partial, §25:30.50partnership, by §25:20.20

payees, two or more, §25:20.20(3)point-of-entry office stamp on USD items, not, §11:30.30qualified, §25:30.40

restrictive, §25:30.30simple signature, as, §25:20.20(1)special, §25:30.20

stamped, §25:20.20(1)striking out, §25:30.20(2)transfer without, see also TRANSFER OF BILL, CHEQUE ORNOTEWITHOUT

ENDORSEMENTgenerally, §25:40

waiver of holder’s duties in, §27:10.20

ENDORSER OF BILL, CHEQUE OR NOTE

anomalous, see also ANOMALOUS ENDORSEMENT OF BILL, CHEQUE ORNOTEgenerally, §28:60

collecting banker as, §11:20.70(1)(e)defined, §21:20.60disclaiming liability, §22:80.40(3)

forgery of signature of, §23:40.60(4)(b), §23:40.60(5)(b)liability of, §28:50payment of bill by, effect of, §29:30preclusions of, §28:50.20

qualifying liability, §28:50.10tenor of engagement, §28:50.10waiver of holder’s duties by, §27:10.20

EPOST. See BILL PAYMENT SERVICES

EQUITABLE TRACING OF MONEY. See TRACING MONEY – EQUITABLE

EQUITIES OF BILL, CHEQUE OR NOTE

defences, as, §24:30.30(2)personal defences distinguished, §26:30.20

INDEX

IN-57 November 2015

EQUITIES OF PARTIES TO BILL, CHEQUE OR NOTE

generally, §24:30.30(2)

ESTOPPEL

forgery, of. See PRECLUSION TO DENY FORGED SIGNATURE

negotiability by, §20:20.40

eUCP

generally, §13:30.20(2)

EUROPEAN UNION

payment services directive, §1:40.20(1), §7:20.40

EVIDENCE DEHORS BILL, CHEQUE OR NOTE

admissibility of, §28:100fraud by holder, of, §24:30.50(4)lost instrument, of, §31:40.10parol evidence, see PAROL EVIDENCE RULE

value received, to deny, §24:30.50(1)

EXCHANGE OF CHEQUES AND OTHER PAYMENT ITEMS IN ACSS

direct deposits, §11:20.70(2)(a)(ii)

electronic items, §11:20.60(3)(b)exchange procedure, §11:20.70(1)(a)identification of items, §11:20.70(1)(e)

items acceptable, §11:20.60paper items, §11:20.60(3)(a), §11:20.70(1)pre-authorized debits, §11:20.70(2)(a)(i)

preparation of items, §11:20.70(1)(b)regional exchange associations’ responsibility for, §11:20.70(1)(a)sorted streams of items, §11:20.70(1)(d)unqualified items, §11:20.70(1)(b)

EXCHANGE, THE, §14:30.20(2)

EXTERNAL COMPLAINTS BODIES

disclosure obligations of banks, §7:70.40(3)

generally, §7:70.40legislative history, §7:70.40(1)operations, decisions and appeals, §7:70.40(4)

regulation of, §7:70.40(2)

FICTITIOUS PARTY TO BILL, CHEQUE OR NOTE

drawee, §22:40.10(4)drawer, §22:40.20(3)

payee. See FICTITIOUS PAYEE OF BILL, CHEQUE OR NOTE

FICTITIOUS PAYEE OF BILL, CHEQUE OR NOTE

Bank of England v. Vagliano, §22:40.30(8.5)

conceptual overview, §22:40.30(8.5)early Canadian cases, §22:40.30(8.5)fraudulent invention –

employee fraud, and, §22:40.30(10(a)(iv)

IN-58


FICTITIOUS PAYEE OF BILL, CHEQUE OR NOTE — continuedhistorical perspective, §22:40.30(8.5)intention of drawer –

deceived drawer, §22:40.30(10)(a)(iii)

fraudulent drawer, §22:40.30(10)(a)(ii)identity theft, and, §22:40.30(10)(a)(iii)innocent purpose, §22:40.30(10)(a)(i)

no benefit to payee, and, §22:40.30(10)(a)misdesignation, by, §22:40.30(1)plausibility doctrine –

evidence required to support, §22:40.30(1)(a)(iv)generally, §22:40.30(9)(b)(ii), §22:40.30(9)(b)(iii)

policy considerations, §22:40.30(11)propositions –

Falconbridge’s, §22:40.30(8.5)new, §22:40.30(8.5)

real person as, §22:40.30(10)

FIDUCIARY OBLIGATIONS OF BANKERS

creation of, §9:50.20, §9:50.30general principles applicable to banks, §9:50.10

generally, §9:50knowing assistance, §9:50.40(5)(a)knowing receipt, §9:50.40(5)(b)

scope of, §9:50.30‘‘transferred’’ fiduciary duties, see also TRANSFERRED FIDUCIARYOBLIGATIONgenerally, §9:50.40

undertaking by bank, §9:50.30

FIDUCIARY RELATIONSHIP

ad hoc, criticism of, §3:30.40

creation of, §9:50.20tracing money, whether condition precedent to, §3:30.40

FINALITY OF PAYMENT

bank credit transfer, by, §1:30.55cheque, §1:30.50, §1:30.50(1), §10:10.50CLS Bank, in, §19:20.20(3)(b)(vi)credit card, §1:30.55(3), §13:20.40(4), (5)

debit card, §1:30.55(2), §14:40.30(6)Dexit, §14:50.10(2)(f)EDI payment, §16:40.50(1)(a)

electronic bill payment, §16:50.40(1)(a)electronic funds transfers, in, §16:60.10(5)(f)generally, §1:30.40

Internet payment, §16:30.50(1)(a)letter of credit, §13:30.90(1)LVTS, §1:30.55(1), §12:30.20(4), §12:40.40(2)

misrepresentation by bank of, §1:30.45, §1:30.50(1)

INDEX


FINALITY OF PAYMENT — continuedpolicy of, §1:30.45pre-authorized debit, §15:20.20(6)prepaid credit card, §14:50.20(3)(c)

principle of, §1:40restitution, precedence over, §1:30.40

FINANCIAL ACTION TASK FORCE

formation of, §16:60.10(3)(c)mandate of, §16:60.10(3)(c)

FINANCIAL CONSUMER AGENCY OF CANADA

activities, §7:70.20(1)appellate review, §7:70.20(5)(b)Canadian Code of Practice for Consumer Debit Card Services, }14:10.20case law, 7:70.20(5)

civil remedies, 7:70.20(6)Commissioner’s Guidance, validity of, §14:15.20, §14:15.20(4)(b)corporate history, §7:70.20(1)

enforcement powers, §7:70.20(2.5)external complaints bodies. See EXTERNAL COMPLAINTS BODIESgenerally, §7:70.20

interpretive memoranda, validity of, §14:15.20(4)mandates –

customer protection, §7:70.20(2)

financial institutions, 7:70.20(2)merchants, §7:70.20(2)payment card networks, §7:70.20(3)

Moneris investigation, §7:70.20(3)

natural justice, and, §7:70.20(5)(a)paramountcy of, §7:70.20(1)payment card networks and, §7:70.20(3)

penalty criteria, §7:70.20(4)powers of, §7:70.20(6)

financial institutions, over, §7:70.20(2)

Payment Card Networks Act, and, §7:70.20(3)prescribed violations, §7:70.20(4)specific formats for disclosure, §14:15.20(4)(d)White Paper proposals for, §7:30.20(4)

FINANCIAL CONSUMER PROTECTION

Codes of Conduct. See CANADIAN CODE OF PRACTICE FOR CONSUMERDEBIT CARD SERVICES; CODE OF CONDUCT FOR CREDIT ANDDEBIT

CARD INDUSTRY IN CANADAexternal complaints bodies. See EXTERNAL COMPLAINTS BODIESfederal approach, §8:20.30(1)(d)(i)

federal paramountcy, and, §7:70.10Financial Consumer Agency of Canada. See FINANCIAL CONSUMERAGENCY OF CANADA

international policy promoting, §7:70.05

IN-60


FINANCIAL CONSUMER PROTECTION — continuedinternational policy promoting — continued

Financial Stability Board, §7:70.05(1)OECD G20 High-Level Principles, §7:70.05(2)

Ombudsman for Banking Services and Investments –overlapping mandate with FCAC, §7:70.10

ombudsmen, in-house, §7:70.30(1)


INDEX


FINANCIAL CONSUMER PROTECTION — continuedoverlapping regulation, and, §8:20.30(1)(d)(iii) and (iv)provincial approach, §8:20.30(1)(d)(ii)Quebec cases, §8:20.30(1)(d)(iv)

FINANCIAL STABILITY BOARD

derivatives clearing and, §18:20.20policy promoting financial consumer protection, §7:70.05(1)

FINES

contractual, enforceability of, §1:30.100(4)(d)

FINPAY, §7:30.25(3)

FINTRAC

debit card concerns –generally, §3:80

FOREIGN BANK

party to banking relationship, §9:10.20(1)(b)

FOREIGN BILL, CHEQUE OR NOTE

collection of, §11:30.20(2)(b)

conflicts of law, and, §33:40.20(1)definition —

bill, §21:20.110

note, §35:10.50generally, §21:20.110inland bill or note distinguished, §21:20.110

protest of, §27:50.10(3)USD items, §11:30.20(2)(a)

FOREIGN CURRENCY

arbitration awards denominated in, §2:20.40(2)(b)

bill expressed in, §28:90.10(3)conflicts of law, and, §33:30conversion to Canadian, time for, see also CONVERSION OF FOREIGN

CURRENCY OBLIGATIONS‘‘currency’’, qualification as, §2:50damages payable in, §28:90.10(3)

exchange on bill or note, §22:70.40foreign, damages in, §1:30.80(3)indictment denominated in, §2:10.10judgment denominated in, §2:10.10

‘‘money’’, qualification as, §2:50, §3:10.30(6), §22:20.70, §33:60pleadings denominated in, §2:10.10re-exchange as damages, §28:90.30

FOREIGN EXCHANGE

BIS reports on risk in markets, §19:10.30(2)Canadian regulators’ risk analysis, §19:10.30(2)(b)

control, §3:60

INDEX

IN-61 November 2015

FOREIGN EXCHANGE — continueddamages upon dishonour of bill, §28:90.10(3)goods, characterization as, §19:10.20Herstatt risk in, §19:10.30(1)

legal nature of contract for –generally, §2:20.10(3), }19:10.20problems raised by, §19:10.20

market, description of –generally, §19:10.10risk in, §19:10.30

netting and settlement. See FOREIGN EXCHANGE NETTING ANDSETTLEMENT

re-exchange, and, §28:90.30

FOREIGN EXCHANGE NETTING AND SETTLEMENT

Continuous Linked Settlement, see also CONTINUOUS LINKED SETTLEMENTgenerally, §19:20

ECHO, §19:10.40(2), §19:10.50

EMTA, §19:20.20(3)generally, §19:10.40Herstatt risk in, §19:10.30(1)

IFEMA master agreement, §19:10.40(1)ISDA master agreement, §19:10.40(1)legislative protection, see also PAYMENT CLEARING AND SETTLEMENT

ACTeligible financial contract law, §19:10.40(3)(a)generally, §19:10.40(3)Payment Clearing and Settlement Act, §19:10.40(3)(b)

Multinet, §19:10.40(2), §19:10.50netting –

bilateral agreements, §19:10.40(1)

generally, §19:10.40legislative protections, §19:10.40(3)multilateral systems, §19:10.40(2)

secure settlement, proposals for, §19:10.50

FORGED OR UNAUTHORIZED SIGNATURE ON BILL, CHEQUE OR NOTE,

see also FORGED SIGNATURE; UNAUTHORIZED SIGNATURE

acceptance, §23:40.70(3)

adoption of, liability by, §23:40.40(1)agents’ powers, and, §23:40.10(3)attorney, powers of, §23:40.20(6)

banking resolution, effect of, §23:40.20(5)drawee’s liability to drawer, §23:40.60(4)drawer’s signature, §23:40.60(6)(a)

effect of signature, §23:40.30acceptor, of, §23:40.30(1)drawer of bill, of, §23:40.30(3)

drawer of cheque, of, §23:40.30(4)endorser, of, §23:40.30(5)

IN-62


FORGED OR UNAUTHORIZED SIGNATURE ON BILL, CHEQUE OR NOTE

— continuedeffect of signature — continued

maker of note, of, §23:40.30(2), §23:40.70(1)

payee, of, §23:40.30(5), §23:40.70(2)generally, §23:40.20onus of proof, §23:40.20(7)

preclusion to deny, see also PRECLUSION TO DENY FORGED SIGNATUREgenerally, §23:40.40

ratification of, §23:40.50

recovery of money paid, see also RESTITUTION OF MONEYon cheque, §23:40.60on other instruments, §23:40.70

signatures within section, §23:40.20(1)

FORGED SIGNATURE

bank negligence in failing to detect, §23:40.60(4)(a)drawer, of, §23:40.30(4)

endorsement on cheque, §23:40.60(4)(b)ratification of, §23:40.60recovery of money paid –

on cheque, §23:40.60on other instruments, §23:40.70under civil law of Quebec, §23:40.60(3)

unauthorized signature, as. See UNAUTHORIZED SIGNATURE

FORMAL VALIDITY OF BILL, CHEQUE OR NOTE

acceptance, of. See ACCEPTANCE OF BILLaddressed to person, §22:20.30

bills, Chapter 22certified cheques, of, §34:70.40cheques, of, §34:20

conflict of laws, in, §33:30consumer bill or note, §36:20dating. See DATE OF BILL, CHEQUE OR NOTE

definition –of bill, §22:20of consumer bill or note, §36:20of depository bill or note, §37:50.10

of note, §35:10depository bill or note, §37:60drawing, no indicated place of, §22:80.20

incomplete. See INCOMPLETE BILL, CHEQUE OR NOTEmoney, payable in, §22:20.70non-conforming instruments, status of, §22:20.80(2), §22:30

order performance of other acts, §22:20.90order to pay, §22:20.20parties, see PARTIES TO BILL, CHEQUE OR NOTE

payable on contingency, §22:20.100payable on demand or future time, §22:20.50

INDEX

IN-63 November 2015

FORMAL VALIDITY OF BILL, CHEQUE OR NOTE — continuedpayable to specified person, §22:20.80(3)promise to pay, §35:10.30promissory note, §35:10

signed, §22:20.40sum certainty, see also SUM CERTAINTY

generally, }22:20.60time of maturity, see TIME CERTAINTYunconditional –

express conditions, §22:20.10(1)

generally, §22:20.10implied conditions –

generally, §22:20.10(2)instruments referring to other documents, §22:20.10(2)(b)

notes associated with other documents, §22:20.10(2)(a)value, recital of, §22:80.10words of negotiability, §22:20.80(1)

FORMS OF ACCEPTANCE OF BILL

conditional, §22:90.60(2)partial, §22:90.60(3)

particular place, §22:90.60(5)qualified, §22:90.60(1) and (4)

FORMS OF ENDORSEMENT

additional words in, §25:30.70assignment, effect of words of, §25:30.70(2)blank, §25:30.10conditional, §25:30.60

conversion of blank to special, §25:30.20(1)endorsement generally, §25:30general endorsement, §25:30.10

guaranty, effect of words of, §25:30.70(1)partial, §25:30.50qualified, §25:30.40

restrictive, §25:30.30simple signature sufficient, §25:20.20(1)special, §25:30.20stamp of bank as, §25:20.20

striking out, §25:70

FRAUD

contract defence of immediate party, §26:30.40(4)(a)

effect on holder, §24:30.50(4)(a)knowledge of, §24:30.30, §24:30.50(4)

FREEZING ASSETS OF FOREIGN CORRUPT OFFICIALS ACT

international law, violation of, §9:40.90(1.5)(a)(vii.5)

FREEZING BANK ACCOUNTS


IN-64


FUNDS

access to. See ACCESS TO FUNDSavailability of. See AVAILABILITY OF FUNDSimmediately available, §3:10.40(2),

‘‘transfer’’ of. See FUNDS TRANSFERS

FUNDS TRANSFERS

automated funds transfers. See AUTOMATED FUNDS TRANSFER SYSTEM

duty on bank to make, no, §10:20.20money, as, §3:10.30(3)sanctions prohibiting, §3:70, see also ECONOMIC SANCTIONS

systems. See ELECTRONIC FUNDS TRANSFER SYSTEMS

FUNGIBILITY OF MONEY

exceptions to general principle –segregated accounts, §3:20.50(1)

tracing money. See TRACING MONEYgeneral principle, §3:20.40

GIFT CARDS, see also PREPAID DEBIT CARDS; PREPAID CREDIT CARDS

definition, §14:50.20(1)(e)(i)disclosure obligations, §14:50.20(1)(e)(iii)prohibited terms and fees, §14:50.20(1)(e)(ii)

provincial regulation of, §14:50.20(1)(e)restrictions on use, §14:50.20(1)(e)(iv)

GOLD CLAUSES ACT

effect of, §2:20.40(3)(b)

GOOD FAITH

defined, §21:40.10, §24:30.30(1)holder in due course, and, §24:30.20

meaning of, §21:40.10negligence, and, §21:40.10notice of defect of title, and, §24:30.30(2)(b)

presumption of, §23:30.50(2)

GOVERNMENT CHEQUES

statutory duty of banks to pay, §10:20.30

GRID NOTE

generally, §35:10.30(7)

GROUP CLEARER

Credit Union Central, as, §11:20.70(1)(c)

guaranty of items by, §11:20.30(4)particpation in ACSS, §11:20.30(4)representation at regional exchange points, §11:20.50(1)(c)

returned items and, §11:20.70(1)(f)(iii)

GUARANTIES ON BILL OR NOTE

accommodation party as surety, see also ACCOMMODATION PARTY TO BILL,

CHEQUE OR NOTE

INDEX

IN-65 May 2016

GUARANTIES ON BILL OR NOTE — continuedaccommodation party as surety — continued

generally, §28:70.10(1)endorsement, in, §25:30.70

HIGH AVAILABILITY BANKING SYSTEM. See BANK OF CANADA

HOLDER

definition, §21:20.40

duties of, see also ACCEPTANCE OF BILLacceptance, presentment for, §27:20generally, Chapter 27

notice of dishonour, §27:40presentment for payment, §27:30.10protest, §27:50waiver of, §27:10.20

for value. See HOLDER FOR VALUEin due course. See HOLDER IN DUE COURSErights of, §26:10, §26:20

HOLDER FOR VALUE

acceptor liability to, §28:30.10accommodation party liability to, §24:20.40, §28.70.20

bank credit as value, §24:20.10(2)defences available against claim by, §24:20.50defined, §24:20

drawer’s liability to, §28:40.10duties of. See DUTIES OF HOLDER OF BILL, CHEQUE OR NOTE ATMATURITY

extent of interest, §24:20.10(1)

fraud or illegality, knowledge of, §24:30.30generally, §24:20holder, qualifying as. See HOLDER OF BILL, CHEQUE OR NOTE

lien, holder with –generally, §24:20.30meaning of lien, §24:20.30(1)

presumptions in favour of –generally, §24:30.50holds in due course, §24:30.50(2)holds for value, §24:30.50(1)

qua whom, §24:20.20(2)qualifying as, §24:20.20value –

bank credit as, §24:20.10(2)extent of, §24:20.10(1)meaning of, §21:20.90

presumption of, §24:20.10when given, §24:20.20(3)

HOLDER IN DUE COURSE

accommodation party liable to, §28:70.20

IN-66


HOLDER IN DUE COURSE — continuedagreement giving status, §24:30.90


INDEX

IN-66.1 May 2016

HOLDER IN DUE COURSE — continuedcollecting banks’ powers, §10:50.20(2)complete and regular item, of, §24:30.20consideration, failure of, and, §24:30.30(2)(c) and (d)

constructive notice of, §24:30.30(1)(a)corporation, knowledge of, §24:30.30(2)(g)defects of title, and, §24:30.30(2)(b)

defined, §24:30.10dishonoured items, and, §24:30.20(3)drawee as, §24:30.80

duress, knowledge of, §24:30.30(2)(b)duties of. See DUTIES OF HOLDER OF BILL, CHEQUE OR NOTE ATMATURITY

forgotten knowledge of defect, of, §24:30.30(1)(c)

fraud or illegality, knowledge of, §26:30.40(4)(a) and (c)generally, §24:30good faith of –

constructive notice and, §24:30.30(1)(a)fact, question of, §24:30.30(1)(a)generally, §24:30.30

notorious facts, §24:30.30(1)(c)prior knowledge, §24:30.30(1)(c)suspicion, effect of, §24:30.30(1)(b)

holder taking from. See SHELTERED HOLDER OF BILL, CHEQUE OR NOTEhonesty of, §24:30.30(1)incomplete bill or note, of, §23:20.60(8), §24:30.20(1)(a)items eligible for taking as, §24:30.20

knowledge of –contract defence, §24:30.30(2)(c)defect of title, and, §24:30.30

dishonour, and, §24:30.20(3)real defence, §24:30.30(2)(a)

negotiation in breach of faith, and, §26:30.40(4)(d)

overdue items, and, §24:30.20(2)owner of bill, may not be, §24:10.20patent right, of bill given for, §21:40.110payee as –

authority, on, §24:30.70(1)aval, under, §24:30.70(2)(d)certified cheque, of, §24:30.70(2)(b)

expectation of, §24:30.70(2)(c)generally, §24:30.70immediate parties, §24:30.70(2)(a.5)

principle, on, §24:30.70(2)remote parties, §24:30.70(2)(a)

possession of bill –

need for, §24:10.10(1)time of, §24:10.30

preclusion of acceptor in favour of, §28:30.40

INDEX

IN-67 November 2015

HOLDER IN DUE COURSE — continuedpreclusion of drawer in favour of, §28:40.10preclusion of endorser in favour of, §28:50.20presumption of, §24:30.50(2)

presumptions in favour of –generally, §24:30.50rebutting, §24:30.50(4)

proceeds defence of, §26:20.20(11)proof of status, §24:30.50(2)qualifying items –

complete, §24:30.20(1)(a)generally, §24:30.20not known to be dishonoured, §24:30.20(3)not overdue, §24:30.20(2)

regular, §24:30.20(1)(b)real defences, and, §26:30.30re-establishing status, §24:30.60

regular item, of, §24:30.20(1)(b)rights of. See RIGHTS AND DUTIES OF HOLDER OF BILL, CHEQUE ORNOTE

sheltered holder and, see also SHELTERED HOLDER OF BILL, CHEQUE ORNOTEgenerally, §24:30.40

subsequent knowledge, §24:30.30(2)(f)suspicions of, §24:30.30(2)usury, knowledge of, §24:50value, takes for, §24:30.35

HOLDER OF BILL, CHEQUE OR NOTE

action by. see ACTION ON BILL OR NOTEbearer, as, §21:20.30

certification of cheque for, §34:70.70(1)defined, §21:20.40due course. See HOLDER IN DUE COURSE

duties of. See DUTIES OF HOLDER OF BILL, CHEQUE OR NOTE ATMATURITY

official image of cheque, and, §24:10.10(2), §34:50.10possession, importance of, §24:10.10(1)

presumption in favour of, §24:30.50rights and powers of, see also RIGHTS AND DUTIES OF HOLDER OF BILL,CHEQUE OR NOTE

generally, §26:20sheltered, §24:30.40truncated item, of, §34:50.10(3)

value, for. See HOLDER FOR VALUE

HOLDER WITH LIEN

banker as, §9:60.10(4)

generally, §24:20.30lien –

IN-68


HOLDER WITH LIEN — continuedlien — continued

enforceability of, §24:20.30(2)extent of, §24:20.10(1)

meaning of, §24:20.30(1)

HOLDER’S DUTIES. See DUTIES OF HOLDER OF BILL, CHEQUE OR

NOTE AT MATURITY

HOLIDAY. See NON-BUSINESS DAY/NON-JURIDICAL DAY

IDENTITY THEFT

fictitious payee rule, and, §8:20.40(9)(c)(i), §22:40.30(10)(a)(i)

non-existing person, and, §8:20.40(9)(c)(i)persons named in cheque as result of, §22:40.30(11)

ILLEGALITY

defence to liability on bill, as, §26:30.40(4)(c)

IMAGE PRINTOUTS, see also CLEARING, REPLACEMENT DOCUMENTS;

RETURN REPLACEMENT DOCUMENTS

default, and, §11:20.100(1)(d)(v)

delivery of, §11:20.70(1)(0.a)return of, §11:20.70(1.75)

outside ACSS, §11:20.70(1.75)(b)

through ACSS, §11:20.70(1.75)(a)transitional note, 11:20.70(0.5)

IMMEDIATE PARTIES TO BILL OR NOTE

consideration, failure of, §26:30.50(8)contract defences, availability of, §26:30.50contractual intent, effect of lack of, §26:30.50(4)defined, §26:30.10(1)

fraud, between, §26:30.50(5)illegality between, §26:30.50(7)incapacity of one, §26:30.50(1)

mistake, between, §26:30.50(6)remote parties distinguished, §26:30.10(1)significance of, §26:30.10(2)

suspensive condition upon liability of, §26:30.50(3)unconscionability, between, §26:30.50(5)

INCOMPLETE BILL, CHEQUE OR NOTE

authority to complete –

implied, §23:20.60(3)strict, §23:20.60(7)(a)

date of issue omitted, §22:20.60(2)

delivery of, unauthorized –custodian or agent, by, §23:20.60(7)(c)current Canadian law, §23:20.60(7)(d)

generally, §23:20.60(7)strict authority, §23:20.60(7)(a)

INDEX

IN-69 November 2016

INCOMPLETE BILL, CHEQUE OR NOTE — continuedeffect of defence, §23:20.60(7)generally, §22:80.30, §23:20.60holder in due course of, §23:20.60(8)

instruments affected, §23:20.60(1)interest clause blank, §23:20.60(5), §35:20.30(1)material particular, meaning of, §23:20.60(2)

particulars out of order, §23:20.60(6)payee, none named, §23:20.60(2)reasonable time for negotiation, §23:20.60(9)

signature missing, §23:20.60(4)‘‘such instrument’’, meaning of, §23:20.60(7)(b)unauthorized delivery of, §23:20.60(7)

INDEPENDENT GUARANTIES

common law developments, §13:30.20(5)(b)ICC Rules, and, §13:30.20(5)(a)

INDIRECT CLEARERS

default by, §11:20.100(3)participation in ACSS, §11:20.30(2)participation in USBES, §11:30.50(2)

representation at regional exchange points, §11:20.50(1)(b)

INFANTS

capacity –

to contract for necessaries, §23:30.30to sign bill or note, §23:30.30


INLAND BILL OR NOTE

definition of, §21:20.110foreign bill or note distinguished, §21:20.110(1)generally, §21:20.110

INSTALMENT PAYMENTS

acceleration of, §22:50.30(4)generally, §22:70.30

note payable both on demand and by, §22:50.20, §22:70.20

INTERAC ASSOCIATION

Acxsys Corp., relations with, §14:10.10(2)(a)Cash, §14:30.20(1)

Consent Orders –Original Order, §7:30.20(1)(a)Variation Order, §7:30.20(1)(b)

IN-70


INTERAC ASSOCIATION — continuedDebit, §14:40Debit Card Code and, §14:15.20e-Transfer, §16:60.30(1)

Flash, §14:25.40history of development, §14:10.10(2)(a)international debit –

generally, §14:10.10(2)(a)international debit services, §14:40.40(1)NYCE link, §14:10.10(2)(a), §14:30.20(1)

INTERAC DIRECT PAYMENT

cardholder agreements, §14:40.20(2)exchange, clearing and settlement, §11:20.70(2), §14:40.10(5)generally, §14:40.10

inter-member contract, §14:40.20(1)organization, §14:40.10(3)participant agreements, §14:40.20(1)

system description, §14:25.40, §14:40.10(2)transaction processing, §14:40.10(4)

INTERAC EMAIL MONEY TRANSFER

generally, §16:60.30(1)legal relations, §16:60.30(1)(c)service description, §16:60.30(1)(a)

system description, §16:60.30(1)(b)

INTERAC e-TRANSFER

generally, §16:60.50(3)legal relations, §16:60.50(3)(b)

service description, §16:60.50(3)(a)

INTEREST

benchmark rates, regulation of, §22:70.20(3.5)

CDOR, §22:70.20(3)compound or simple, §1:30.90(5)(b), §22:70.10(4)conflicts of law, and, §33:80.20

contract right, §1:30.90(1)cost of borrowing, disclosure of, §13:40.20(2)(b)criminal rate. See CRIMINAL RATE OF INTERESTdamages, as, §1:30.90(2)

EURIBOR, §22:70.20(3)express, right must be, §1:30.90(1)generally, §13:20.40(2)(b)(i)

implied, no right of, §1:30.90(1), §1:30.90(5)(c)(ii)LIBOR, §22:70.20(3)pre-, and post-default rate, §1:30.90(3)(a)

rate ‘‘fixed by law’’, when, §1:30.90(5)(c)(i)

INTEREST ON BILL OR NOTE

‘‘360-day year’’, §22:70.20(9)

INDEX

IN-71 May 2016

INTEREST ON BILL OR NOTE — continuedblank rate, §23:20.60(5)compound or simple, §22:70.20(4)damages, as, §28:90.10(4)

deemed reinvestment principle, §22:70.20(8)default, before and after, §22:70.20(6)discount, and, §22:70.20(7)

EURIBOR, §22:70.20(3)fixed rate, §22:70.20(1)floating or variable rate, §22:70.20(2)

generally, §22:70.20judgment, after, §28:90.10(4)(c)LIBOR, §22:70.20(3)maturity before and after, §22:70.20(5), §28:90.10(4)(a) and (b)

periods less than a year, §22:70.20(10)‘‘prime rate’’, at, §22:70.20stautory aids to determine, §22:70.20

sum certainty, and, §22:70.20usurious, §24:50.10year, periods less than, §22:70.20(10)

INTEREST ON LATE PAYMENT

Canadian Payments Association rules, §1:30.90(7)compound, §1:30.90(5)(b)

contract rate –generally, §1:30.90(1)post-default application of, §1:30.90(3)(a)

damages, as, §1:30.90(2)

equitable power to award, §1:30.90(5)(b)generally, §1:30.90international rules for, §1:30.90(6)

selecting appropriate rate –agreement, by, §1:30.90(5)(a)compound interest, §1:30.90(5)(b)

generally, §1:30.90(5)rate fixed by federal statute, §1:30.90(5)(c)(i)rate fixed by provincial statute, §1:30.90(5)(c)(ii)

statutory post-judgment interest, §1:30.90(4)

statutory pre-judgment interest, §1:30.90(3)

INTERNATIONAL CHAMBER OF COMMERCE

eUCP, §13:30.20(2)

ISP98, §13:30.20(3)UCP500, §13:30.20(1)Uniform Customs and Practice for Documentary Credits, §13:30.20(1)

Uniform Rules for Collections, §10:60.20Uniform Rules for Contract Guarantees, §13:30.20(3)(b)Uniform Rules for Demand Guarantees, §13:30.20(3)(b)

IN-72


INTERNATIONAL FUNDS TRANSFERS

case law, §16:60.10(5)generally, §16:10.10(2)(b)

INTERNATIONAL MONETARY FUND

special drawing rights of, §1:30.80(1), §2:20.40(3)

INTERNET PAYMENTS

ACSS-settled on-line payments, §16:30

authentication, authorization and approval, §16:30.30(4)beneficiary, notice to, §16:30.30(4.5)conditional or final payment, §16:30.50(1)(a)

connection service providers, §16:30.30(3), §16:30.50(3)(c)consumers’ requirements, §16:30.20(2)dispute resolution –

CPA Rule E2, §16:30.40(1)

generally, §16:30.40under provincial law, §16:30.40(2)

exchange, clearing and settlement, §16:30.30(5)

exchange of, §11:20.70(2)(b)(ii), §11:20.90(2)financial institutions’ requirements, §16:30.20(3)generally, §16:30.10

HyperWALLET. See HYPERWALLETlegal relations, §16:30.50merchants’ requirements, §16:30.20(1)

notice to beneficiary, §16:30.30(4.5)online payment system infrastructure, §16:30.20payment –

finality of, §16:30.50(1)(a)

proof of, §16:30.50(1)(b)time of, §16:30.50(3)(b)

PayPal. See PAYPAL

Project ACTION, §16:60.40(3)record keeping and tracing, §16:30.30(6)refunds and adjustment, §16:30.30(7)

Rule E2, legal foundations, §16:30.30(1)transaction processing –

authentication, authorization and approval, §16:30.30(4)exchange, clearing and settlement, §16:30.30(5)

generally, §16:30.30record-keeping and tracing, §16:30.30(6)refunds and adjustments, §16:30.30(7)

secure connection, §16:30.30(3)unreturnability of, §11:20.70(2)(b)(ii), §11:20.70(2)(d)

INTERPRETATION, OF BILLS OF EXCHANGE ACT

acceptance, §21:20.10action and defence, §21:20.20bank, §21:20.30

Bank Act, conflict with, §21:40.60

INDEX

IN-72.1 May 2016

INTERPRETATION, OF BILLS OF EXCHANGE ACT — continuedcorporate seals, use of in, §21:40.30Crown, §21:20.40(3)draft, §21:20.120(1)

drawer, §21:20.120(2)drawn, §21:20.110(3)endorsement, §21:20.60

explained terms, §21:20.130foreign bill, §21:20.110good faith, concept of, §21:40.10

inland bill, §21:20.110issue, §21:20.70judicially defined terms, §21:20.120negligence, §21:40.10

payee, §21:20.120(3)person, §21:20.40(2)pre-Code case law, and, §21:40.80(2)

reckoning of time in, §21:40.40rule of construction, §21:30signature, meaning of, in, §21:40.20

statutory definitions, §21:20Sundays, and non-business days, §21:20.80, §21:40.40value, §21:20.90

warrants, application to, §21:40.50

INTOXICATION

defence to liability on bill or note, §23:30.40(3)

INVESTMENT SECURITIES

securities and derivatives clearing house, §19:10.40(3)(b)

I.O.U.

promissory notes, distinguished, §35:10.30(3)

ISSUE OF BILL, CHEQUE OR NOTE

defined, §21:20.70delivery, importance of. See DELIVERY OF BILL, CHEQUE OR NOTE

place of, §21:20.70(2)undated, §22:60.10

ISSUER


JOINT AND SEVERAL LIABILITY

case law, §35:20.20(5)common law of, preserved, §21:40.80, §35:20.20

Partnership Act, and, §35:20.20(4)promissory note, on, §35:20.20

KNOWLEDGE

agent, of, §21:40.10corporation of, §24:30.30(2)(g)

IN-72.2


KNOWLEDGE — continueddefects of title, of, §24:30.30(2)(b)defences, of, §24:30.30(2)dishonour, of, §24:30.20(3)

fact, question of, §24:30.30(1)good faith, and, §21:40.10, §24:30.30


INDEX

IN-72.3 May 2016

KNOWLEDGE — continuednotorious facts, of, §24:30.30(1)(c)

LABOUR RELATIONS OF BANKS

generally, §8:20.30(1)(c)

human rights laws, and, §9:20.15(1)

LARGE VALUE TRANSFER SYSTEM

aggregate net debit cap, §12:30.40(2)

ASO and Maximum ASO, §12:30.40(3)availability of funds –

blocked accounts, §12:40.40(2)(a)(iv)

earliest time, §12:40.40(2)(b)force majeure, §12:40.40(2)(a)(iii)late receipt, §12:40.40(2)(a)(ii)latest time, §12:40.40(2)(a)

Bank of Canada Guaranty, §12:30.40(7)bi-lateral credit limits, §12:30.40(2)BIS Core Principles, and, §12:10.40, §12:50

by-law governing, §12:20.10by-laws, binding force of –

participants, among, §12:40.20

participants and CPA, between, §12:40.10payors and participants, between, §12;40.30

collateral –

tranche 1, §12:30.40(1)tranche 2, §12:30.40(2)value tracking system (‘‘CVTS’’), §12:30.40

compliance with Bank of Canada requirements, §12:60

default in, §12:30.50designation under PCSA, §7:50.20(2)(a)(i)error detection and resolution –

generally, §12:30.20(6), }12:40.20(2)use of funds concept, §12:40.20(3)

exceptional procedures –

emergency conditions, §12:30.30(3)jumbo payments, §12:30.30(1)type ‘‘R’’ payments, §12:30.30(2)

exchange of messages, §12:30.20(2)

exculpation of CPA, §12:40.20finality –

payment, in, §12:30.20(4), §12:40.40(2)

payments –case law, §12:30.20(4)(b), §12:40.50(3)rules, §12:30.20(4)(a)

settlement, in, §12:30.40(6)generallly, Chapter 12governing law, §12:20

guideline for misdirected payments, §12:20.30legal relations of participants –

INDEX

IN-73 August 2015

LARGE VALUE TRANSFER SYSTEM — continuedlegal relations of participants — continued

claims and compensation, §12:40.20(3)credit limits, §12:40.20(1)

duty to use, §12:40.20(1)error detection and resolution, §12:40.20(2)generally, §12:40, §12:40.10

receiving participant, §12:40.30(2)sending participant, §12:40.30(1)timing of payments, §12:40.20(4)

legal relations of payees and participants –generally, §12:40.40receiving participant, §12:40.40(2)sending participant, §12:40.40(1)

legal relations of payor and payee –system malfunction, §12:40.50(2)use of system, §12:40.50(1)

legal tender, not, §12;40.50(1)liability of CPA excluded, §12:40.10member administered closed user groups, §16:20.10(2)(b)

netting in, §12:30.40(5)normal operation of –

error detection and resolution, §12:30.20(6)

generally, §12:30.20initializing, daily, §12:30.20(1)processing, §12:30.20(2)scheduling payments, §12:30.20(3)

overview, §12:10.10participant failure, in, §12:30.50participation, criteria of, §12:30.10

Payment Clearing and Settlement Act and, §12:20payment confirmation reference number, §12:30.20(2), §12:40.40(2)(b)payment queue, §12:30.40(4)

PCRN, §12:30.20(2), §12:40.40(2)(a)(iv) and (b)procedures, §12:20.40regulatory design objectives, §12:10.30regulatory oversight of, §12:20

risk management –aggregate net debit cap, §12:30.40(2)ASO and Maximum ASO, §12:30.40(3)

bi-lateral credit limits, §12:30.40(2)tranche 1 payments, §12:30.40(1)tranche 2 payments, §12:30.40(2)

rules governing, §12:20.20settlement, §12:30.20(5)statistics of use, §12:10.20

S.W.I.F.T. standards, and, §12:30.10(2), §12:30.20(1), §16:20.10(2)(b)system description, §12:30timing of payments, §12:40.20(4)

IN-74


LATE RETURN OF CHEQUEcontingency conditions, in, §11:20.70(1)(g)default conditions, in, §11:20.70(1)(h)duplicate items, §11:20.70(1)(f)(iv)

effect of provisional settlement, §10:10.50(3)effect of s. 126 BEA, §10:10.60(1)force majeure, §11:20.70(1)(f)(iv)

forged endorsement, for, §11:20.70(1)(f)(iv)liability of bank, §10:10.60material alteration, §11:20.70(1)(f)(iv)

post-dated item, §11:20.70(1)(f)(iv)restitution for drawee, §10:10.70return of CAD items to US banks, §10:10.60(5)return of ‘‘paid’’ items, §10:10.50(4)

return outside ACSS clearing, §10:10.60(3)return through ACSS clearing, §10:10.60(4)tele-cheque, §11:20.70(1)(f)(iv)

time limits. See TIME LIMITS FOR RETURNS – ELECTRONIC ITEMS; TIMELIMITS FOR RETURNS – PAPER ITEMS

uncertainty of time for return, §10:10.60(2)

wrong currency, §11:20.70(1)(f)(iv)wrong sum, §11:20.70(1)(f)(iv)

LAW MERCHANT

bankers’ lien, source of, §9:60.10(1)banking relationship, and, §9:20.30business of banking defined by, §8:20.20(2)Canada, in, §20:10.20

common law, as part of, §20:10.10custom and, §20:10generally, §20:10

judicial notice of, §20:10.30new customs, recognition of, §20:10.30

LAWFUL MONEY OF CANADA

statutory references to, §2:20.40(1)(b), §3:10.40(4)

LEGAL RELATIONS OF ACSS PARTICIPANTS AND PUBLICgenerally, §11:50insolvency of member, §11:50.40

precedence of BEA over ACSS Rules, §11:50.30rules binding on members, §11:50.10whether rules binding on public, §11:50.20

LEGAL TENDERagreements varying definition of, §2:40.10bank notes, in. See BANK OF CANADA NOTES

cash, in. See CASHcoins, limits on, §2:30.10(2)constitutional foundation. See CONSTITUTIONAL LAW

definition of, §2:30.10

INDEX

IN-74.1 December 2013

LEGAL TENDER — continuedgenerally, §2:30informal tenders, §2:30.20, §3:10.30(2)(a)location of, §3:20.30(1)

non-circulating coins, in, §2:30.10(2) and (3)refusal to accept –

pre-existing debt, §2:40.10

prior notice of, §2:40.20


IN-74.2


LEGAL TENDER — continuedwaiver of, §2:40.10

LETTERS OF CREDIT

bank credit as foundation, §13:10.10

compliance with terms, strict –conventional law, §13:30.30(3)UIGLC Act, §13:30.30(3.5)

confirmation of, §13:30.40(2)Crown, binding on, §13:30.30(4.5)(c)customs and practices of bankers, §13:30.20

demand guaranties. See DEMAND GUARANTIESdocuments, dealing in –

conventional law, §13:30.30(2)UIGLC Act, §13:30.30(2.5)

eUCP, §13:30.20(2)application of, §13:30.20(2)(b)history and general, §13:30.20(2)(a)

equitable relief for beneficiary –conventional law, §13:30.30(3)(b)UIGLC Act, §13:30.30(3.5)(b)

expiration, §13:30.40(6)first demand. See DEMAND GUARANTIES; STAND-BY CREDITSforgery of material document, §13:30.80(2)

fraud exception (conventional law) –beneficiary, acts of, §13:30.60(1)negotiating bank, and, §13:30.60(3)third parties, and, §13:30.60(2)

fraud exception (UIGLC Act) –generally, §13:30.75interpretation of, §13:30.75(2)

statutory test of, §13:30.75(1)good faith of issuer –

conventional law, §13:30.30(5)

UIGLC Act, §13:30.30(5.5)honour. See payment, infraindependence, principle of, (conventional law) –

beneficiary and applicant, between, §13:30.30(1)(b)

beneficiary and confirming bank, between, §13:30.30(1)(c)beneficiary and issuer, between, §13:30.30(1)(a)generally, §13:30.30(1)

independence, principle of (UIGLC Act) –definitions, §13:30.30(1.5)(b)generally, §13:30.30(1.5)

issuer’s obligation, §13:30.30(1.5)(a)independent guaranties, see also DEMAND GUARANTIES

generally, §13:30.20(5)

injunctive relief, evidence required, §13:30.60(4)

INDEX

IN-75 November 2015

LETTERS OF CREDIT — continuedinsolvency of –

applicant, §13:30120(2)beneficiary, §13:30.120(3)

issuer, §13:30.10(2), §13:30.120(1)interpretation of –

conventional law, §13:30.40

UIGLC Act, §13:30.40irrevocability of, §13:30.40(1), §13:30.40(1.5)ISP98, see also STAND-BY CREDITS

application, §13:30.20(3)(b)history and general, §13:30.20(3)(a)

issuer not a bank, §13:30.20legal foundations of –

contract, §13:30.10(1)international texts, §13:30.20UIGLC Act, §13:30.20(4)(c), see also UNIFORM INDEPENDENT

GUARANTIES AND LETTERS OF CREDIT ACTmaterial document forged or nullity, §13:30.80(2)mistake, §13:30.80(3)

nullity of material document, §13:30.80(2)partial drawings, §13:30.40(4)payment, §13:30.50(1)

enjoining –conventional law, §13:30.50(4)UIGLC Act, §13:30.50(5)

excessive demands and, §13:30.50(2.5)

place of, §13:30.40(5)reimbursement of issuer, §13:30.50(4)set-off by issuer, §13:30.50(2)

wrongful, §13:30.50(3)performance bonds, §13:30.20(3)presentment, place for, §13:30.40(5)

principles of law of, §13:30.30, §13:30.30(4), §13:30.30(4.5)reimbursement of issuer –

conventional law, §13:30.100UIGLC Act, §13:30.110

revocability, §13:30.40(1)set-off claimed by issuer, §13:30.50(2)stand-by. See STAND-BY CREDITS

strict compliance (conventional law) –basic rule, §13:30.30(3)(a)conclusion, §13:30.30(3)(e)

documentary credits, §13:30.30(3)(c)equitable relief, §13:30.30(3)(b)

strict compliance (UIGLC Act) –

basic rule, §13:30.30(3.5)(a)conclusion, §13:30.30(3.5)(d)documents, acceptability of, §13:30.30(3.5)(b)

IN-76


LETTERS OF CREDIT — continuedstrict compliance (UIGLC Act) — continued

equitable considerations, §13:30.30(3.5)(c)subrogation, and, §13:30.40(7)

termination, §13:30.40(6)transferability of, §13:30.40(3)types of –

demand guaranties. See DEMAND GUARANTIESfirst demand. See DEMAND GUARANTIESindependent guaranties. See DEMAND GUARANTIES

performance bonds, §13:30.20(3)(a)stand-by. See STAND-BY CREDITS

UCP500 and UCP600 –application of, §13:30.20(1)(b)

history and general, §13:30.20(a)UIGLC Act. See UNIFORM INDEPENDENT GUARANTIES AND LETTERSOF CREDIT ACT

UNCITRAL Convention, see also STAND-BY CREDITSgenerally, §13:30.20(4)

URDG. See ISP98

LIABILITIES OF PARTIES TO BILL, CHEQUE OR NOTE

acceptor –generally, §28:30

liability primary, §28:30.20liability to whom, §28:30.30preclusion to deny liability, §28:30.40tenor of acceptance, §28:30.10

accommodation parties, see also ACCOMMODATION PARTY TO BILL,CHEQUE OR NOTEgenerally, §28:70

anomalous endorser, §28:60damages, measure of, see also DAMAGES LIABILITY ON BILL, CHEQUE ORNOTE

generally, §28:90defences to. See DEFENCES TO LIABILITY ON BILL, CHEQUE OR NOTEdischarge. See DISCHARGE OF LIABILITY ON BILL, CHEQUE OR NOTEdrawee –

contractual duty to accept, where, §28:20.20generally, §28:20prior to acceptance, §28:20.10

drawer, §28:40endorser, §28:50evidence to establish, §28:100.30

generally, Chapter 28limitation of actions, §28:110prescription, §28:110.20

renunciation of. See RENUNCIATION OF LIABILITY ON BILL, CHEQUE ORNOTE

INDEX

IN-77 May 2016

LIABILITIES OF PARTIES TO BILL, CHEQUE OR NOTE — continuedtransferor by delivery, §28:80

LIBOR. See INTEREST

LIEN (BANKER’S)

consolidation of accounts, distinguished, §9:60.20(3)(a)definition, §9:60.10generally, §9:60.10

personal property security legislation, and, §9:60.10(2)property subject to, §9:60.10(3)realization under, §9:60.10(4)

LIEN NOTES

generally, §35:30

LIEN ON BILL OR NOTE

holder with, §24:20.30

LIMITATION PERIOD

action on account, §9:40.75basic rule, §28:110.10(4)(a)

bills and notes, generally, §28:110.10commencement of period –

basic rule –

Alberta rules, §28:110.10(4)(a) and (c)British Columbia, §28:110.10(4)(a)(ii.5)conventional provinces, §28:110.10(4)(a) and (c)

Ontario and Saskatchewan rules, §28:110.10(4)(a) and (c)bills payable at future time –

Alberta, §28:110.10(4)(c)(ii)conventional provinces, §28:110.10(4)(c)(i)

generally, §28:110.10(4)(c)Ontario and Saskatchewan, §28:110.10(4)(c)(iii)

bills payable on demand, §28:110.10(4)(b)

generally, §28:110.10(4)secondary party liability, §28:110.10(4)(e)special cases, §28:110.10(4)(d)

conflicts of law, in, §33:80.30constitutional competence of provincial laws, §20:40.40, §28:110.30credit card debt, §13:20.40(2)h(f)(ii)demand bills, cheques and notes, §28:110.10(4)(c)

deposit, on, §9:30.50instalment payments, §28:110.10(5)prescription in Quebec, §28:110.20

sealed items, §28:110.10(3)time limits, personal nature of, §28:110.10(3)‘‘understanding’’ of indulgence, effect of, §28:110.10(4)(c)(i)

LOST OR DESTROYED BILL OR NOTE

action on, §31:40

IN-78


LOST OR DESTROYED BILL OR NOTE — continuedbank notes, whether subject to rules of, §31:30.10(3)certified cheque, §31:30.10(2), §31:40.20(2)duplicate instrument, obtaining, §31:30.10

generally, Chapter 31holder’s duties, performance of, §31:40.30indemnity, provision of, §31:30.20

‘‘lost or destroyed’’, meaning of, §31:40.10notes, application to, §31:30.10(3)onus of proof of loss, §31:30.30

performance of holder’s duties, §31:40.30recovery of lost instruments, §31:20scope of sections, §31:30.10truncated cheque, as, see also ELECTRONIC PRESENTMENT OF OFFICIAL

IMAGE

LOYALTY POINTS

Aeroplan, §4:10.20(2)(b)

Air Miles, §4:10.20(2)(a)money, as, §3:10.30(4.5)

LVTS. See LARGE VALUE TRANSFER SYSTEM

MAGNETIC INK CHARACTER RECOGNITION (MICR)

clearing system, use in, §11:20.70(1)(b)(i)errors in encoding, §11:20.70(1)(f)(iv)

MAKER OF NOTE

acceptor of bill compared, §35:80.20application of BEA to, §35:80consumer note, Chapter 36

definition, §35:70.10disclaimer of liability by, effect of, §22:80.40(2)engagement of, §35:70.20

forgery of signature of, §23:40.30(2)liability of, §35:70preclusion of, §35:70.50

primary party, §35:70.30recovery of money paid on forgery, by, §23:40.70(1)signature essential to ‘‘note’’, §35:10.40(3)

MAREVA INJUNCTION

bank’s duty upon receipt of, §9:40.90(2)

MARRIED WOMAN

endorsement, proper form of, §25:20.20

liability on bill or note of, §23:30.50(1)

MASTERCARD DEBIT

generally, §14:10.10(2)(b)

international debit card service, §14:50.40

INDEX


MATERIAL ALTERATION OF BILL, CHEQUE OR NOTE

alteration, meaning of, §29:70.20apparent, effect of, §29:70.50authorized changes, not, §29:70.50(2)(a)

certified cheque, §34:70.80(5)conversion, and, §29:70.60(3)(a)destruction of eligible bill not, §29:70.10.(2)

endorsement after alteration, §29:70.50(2)(b)generally, §29:70interest, addition of, §23:20.60(5)

meaning of alteration, §29:70.20meaning of apparent, §29:70.40meaning of material, §29:70.30non-apparent, effect of, §29:70.60

return of item through ACSS, §11:20.70(1)(f)(iv)

MATURITY OF BILL OR NOTE

conflicts of law, and, §33:70

transfer after. See TRANSFER OF BILL, CHEQUE OR NOTE AFTERMATURITY/DISHONOUR

MENTAL INCOMPETENTS

capacity of, when found so, §23:30.40(2)liability on bills and notes, of, §23:30.40

MICR. See MAGNETIC INK CHARACTER RECOGNITION (MICR)

MINOR

capacity to deposit and withdraw funds, §9:10.30(1)(a)

MINT CHIP

Bank of Canada, §4:40.05

nanoPay, and, §4:50.25, §14.5:40.45

MIRROR ACCOUNTS, see also CASH MANAGEMENT SERVICES


MOBILE PHONE DEPOSITS

corporate and government customers, §34:25.30(4)(a)generally, §14.5:70, §34:25.30(4)

individual customers, §34:25.30(4)(b)

MOBILE-PHONE PAYMENTS AND TRANSFERS

application of,generally, §14.5:30.10,

phasing, §14.5:30.10(1),scope of, §14.5:30.10(1),

banks’ powers: non-card-based payments, §13:05, §14:10.10(3)

Canadian definition and experience, §14.5:20.10(4)classification of systems, §14.5:10.10, §14.5:40.10

closed, §14.5:50.10

open, §14.5:20

IN-80


MOBILE-PHONE PAYMENTS AND TRANSFERS — continuedclosed systems –

description, §14.5:50.10legal relations, §14.5:50.10(3)

regulation of, §14.5:50.10(2)credit card account access, by, §14.5:40.20debit card account access, by, §14.5:40.30

definitions, §14.5:30.10(3)acquirercontactless payment

mobile devicemobile walletpayment appletpayment card network

payment credential,deposits with Telco, §14.5:40.40European definition and policy, §14.5:20.10(2)

funds transfers by, §14.5:60generally, Chapter 14.5international policy, §14.5:20.10(2), §14.5:20.10(3)

mobile wallets, §7:30.25(3.5)(a)NFC Reference Model, §7:30.25(3.5)(a)open systems –

definition of, §14.5:20legal relations of parties –

customer, merchant and issuer inter se, §14.5:40.20(2)(a)merchant and service provider, §14.5:40.20(2)(b)

regulation of –Canadian Code of Practice, application of, §14.5:30.10Payment Card Networks Act, application of, §14.5:30.20

policy elements, §14.5:30.10(4)array of functions, 8;credit and debit separate, 4;

equal branding, 7;premium cards, and, 9

USA definition and policy, §14.5:20.10(3)Zoompass. See ZOOMPASS

MONEY

account, of. See CURRENCY OF ACCOUNTAeroplan Reward Miles, as, §4:10.20

Air Miles, as, §4:10.20bank deposits as, §3:10.30(1)bankers’ lien on, §9:60.10(3)(a)

Canadian Tire Money, as, §4:10.20cash distinguished, §3:10.40(1)characterization for purposes of –

Indian Act, §3:10.30(1)taking security in, §3:10.30(2)(b)

INDEX


MONEY — continuedcheques, as –

cases against, §3:10.30(2)(b)cases for, §3:10.30(2)(c)

principle, in, §3:10.30(2)(a)constitutional law of, §3:05counterfeit, §3:90

distinguished from –cash, §3:10.40(1)currency, §3:10.40(3)

‘‘immediately available funds’’, §3:10.40(2)‘‘lawful money of Canada’’, §3:10.40(4)right to money, §3:10.30(1) and (2)

electronic. See ELECTRONIC MONEY

federal legislative authority, §3:05.20, §3:05.40foreign currency as, §2:50funds held as financial assets, §3:20.30(3)

fungibility of. See FUNGIBILITY OF MONEYgovernment payment instruments as, §3:10.30(2)(b)holder of money, §3:05.50(1)

judicial definitions, §3:10.20location of, §3:20.30loyalty points, as, §3:10.30(4.5)

meaning of term –generally, §3:10in wills, §3:10.30(5)

money-services businesses –

constitutional law, and, §3:05licensing of, §7:70.25regulation of, §8:30.30

new forms of, §4:10, §4:30patronage rewards as, §4:10.20‘‘plastic money’’, §13:10.20(2)(c)

private, §3:10.05provincial laws of money, §3:05.30, §3:05.50, §3:05.50(4.5), §13:19.20(2)restitution of. See RESTITUTION OF MONEYspecific forms of –

account entries, §3:10.30(4)bank deposits, §3:10.30(1)cheques, §3:10.30(2)

foreign currency, §3:10.30(6)funds transfers, §3:10.30(3)

statutory definitions, §3:10.10

time value of, §3:20.20, §11:20.90(3)tokens of value as, §4:10.20(1)tracing. See TRACING MONEY

trading stamps, as, §4:10.20(2)transfer, legal effect of –

bank credit, §3:20.10(2)

IN-82


MONEY — continuedtransfer, legal effect of — continued

negotiable instruments, §3:20.10(3)physical currency, §3:20.10(1)

MONEY LAUNDERING

analysis of Act, §3:80.20compliance, §3:80.50

electronic funds transfers and, §16:60.10(1)(e)FATF 2016 Assessment, §3:80.35federal statute –

comparison with Quebec Act, §8:30.10constitutionality of, §8:30.10generally, §3:80

financial action task force principles, §16:60.10(3)(c)

introduction, §3:80.10proposed regulation of virtual currencies, §3:80.40refusal of customer to cooperate, §10:30.30(4)

remittance instruments, and, §10:20.10(7)reporting obligations, §3:80.30

MONEY ORDERS

definition, §10:20.10stop-payment of, §10:20.10(1)

MONEY SERVICES BUSINESSES

constitutional authority over, §7:70.20, §8:30.30(2)licensing of, §7:70.25regulation of, §8:30.30

MONEY SERVICES BUSINESS LICENSING

constitutional jurisdiction, §8:30generally, §7:70.25Quebec legislation, §7:70.25, §8:30

NATIONAL ELECTRONIC SETTLEMENT REGION

clearing of items in, §11:20.80(1)generally, §11:20.50(2)

settlement in, §11:20.90(2)

NEAR BANKS

banking-like activities of, §8:30.20(3)

NEGATIVE OPTION BILLING REGULATIONS

authorized users, and, §13:15.23, §13:15.40generally, §13:15.23Negative Option Marketing and Billing Regulations, §13:15.23

provincial law, continued relevance of, §13:20.40(2)(a)

NEGLIGENCE OF BANK

account verification agreement and, §9:40.60(1)

administration of credit, in, §9:40.80(1)(a)(ii)

INDEX

IN-83 November 2016

NEGLIGENCE OF BANK — continuedcollecting items for customers, when, §10:60.40(3) and (4)commercially reasonable security, §9:40.40(3)contract to exclude liability for, §9:40.60(1)

conversion, liability in, distinguished, §10:40countermand of cheque, and, §34:60.10(8)credit transfers, and, §16:20.10(3)

customer relationship, relevance of, §9:10.10(3)(b)(iii)duty to customers, §9:10.10(3)(b)duty at large, §9:10.10(3)(b)

in principle, §9:40.80(1)(a)inappropriate loan repayment terms, §9:20.30(4)investigate new customers, duty to, §9:10.10(3)(b)(ii)monitoring accounts for fraud, §9:40.80(1)(b)

opening accountduty to applicant customer, §9:10.10(3)(a.5)duty at large, §9:10.10(3)(b)

operation of account, in, §9:40.80(1)(a)(i)standard procedure, duty to follow, §9:10.10(3)(b)(i)payments for customers, in making –

LVTS messages, §12:30.20(6)(a)pre-authorized payments, §15:20.20(4)(c)

‘‘reasonable banker’’, concept of, §9:20.30(2)(a)

standard of care –generally, §9:20.30(2), §9:40.40(3)exculpatory clauses and, §9:20.30(2)(b)higher duty undertaken by banks, §9:20.30(2)(a.1)

opening account, when, §9:10.10(3)statutory duties and, §9:10.10(3)(d)

NEGLIGENCE OF CUSTOMER

account statements, no duty to examine, §9:20.30(3)(d)care of PIN, §14:40.20(2)(a)cheque, writing, and, §9:20.30(3)(a)

contractual standard of care, §9:20.30(3)(c)duty to others than bank, §9:40.80(2)payment instructions, §9:20.30(3)(b)precluding denial of forgery by reason of, §23:40.40(2)

standard of care –contractual, §9:20.30(3)(c)general, §9:20.30(3)

NEGLIGENCE WITHIN MEANING IN BEA

good faith, and, §21:40.10preclusion to deny forgery, by, §23:40.40(2)

NEGOTIABILITY

codification of, §20:30.10common law principles of, §20:20.10

constitutional jurisdiction over, §20:30.20

IN-84


NEGOTIABILITY — continuedconcept of, investment securities, §20:20


INDEX


NEGOTIABILITY — continuedestoppel, by, §20:20.40legislation, by, §20:20.30quality of, §20:20

statutory recognition of, §20:20.30utility of precedents, §20:20.20words of, materiality of, §20:20.80(1)

NEGOTIABLE INSTRUMENTS

cash-like quality of, §26:40.10(1)location of, §3:20.30(1)

quality of negotiability, §20:20

NEGOTIATION OF BILL, CHEQUE OR NOTE

breach of faith, in, §26:30.40(4)(d)demand note, special rule, §25:60.10(3)

endorsement, by, see also ENDORSEMENT OF BILL, CHEQUE OR NOTEgenerally, §25:20

generally, Chapter 25

meaning of, §25:10renegotiation, as, §25:70transfer distinguished, §25:50

NETTING

bilateral and multilateral, §12:30.40(5)Continuous Linked Settlement, §19:20

foreign exchange settlements –bilateral, §19:10.40(1)generally, §19:10.40multilateral 19:10.40(2)

legislative protections for, §19;10.40(3)generally, §19:10.40(3)(a)Payment Clearing and Settlement Act, §19;10.40(3)(b)

LVTS, in, §12:30.40(5)‘‘nebulous’’, §12:30.40(5)payment by, §1:20.30

NETTING AGREEMENTS

definition of, §7:50.70(3)eligible financial contracts, and, §7:50.70(3)(a)(i), §7:50.70(4)legal immunity of, §7:50.70(2)

NETWORK


NEW METHODS OF PAYMENT

Criminal Code and, §4:20.20generally, Chapter 4new forms of money distinguished –

generally, §4:30medium of exchange, as, §4:30.20

INDEX


NEW METHODS OF PAYMENT — continuednew forms of money distinguished — continued

recognition of, effects, §4:30.30pre-paid cards, §4:10.10

tokens, §4:10.10. 4:10.20(1)trading stamps, §4:10.20(2), §4:20

NON-BUSINESS DAY/NON-JURIDICAL DAY

defined, §21:20.80, §21:40.40

NON-EXISTING OR FICTITIOUS PAYEES

fictitious. See FICTITIOUS PAYEE OF BILL, CHEQUE OR NOTE

non-existing. See NON-EXISTING PAYEEBank of England v. Vagliano, §22:40.30(8.5)conceptual overview, §22:40.30(8.5)early Canadian cases, §22:40.30(8.5)

entities –no longer existing, §22:40.30(9)(a.1)not yet in existence, §22:40.30(9(a.1)

fraudulent invention –Concrete Column Clamps rule, §22:40.30(9)(b)(i)employee fraud, §22:40.30(9)(b)(i), §22:40.30(10(a)(iv)

generally, §22:40.30(9)(b)plausible belief, and, §8:20.40(9)(b)(ii) and (iii)UCC rule, §8:20.40(9)(b)(iv)

historical perspective, §22:40.30(8.5)identity theft, and, §8:20.40(9)(c)(i)inanimate payee, §22:40.30(9)(a.1)intention of drawer –

fraudulent intent, §22:40.30(10)(a)(ii)identity theft, and, §22:40.30(10)(a)(iii)innocent mistake, §22:40.30(10)(a)(i)

no benefit to payee, and, §22:40.30(10)(a)non-existing person, §22:40.30(9)policy considerations, §22:40.30(11)

propositions –Falconbridge’s, §22:40.30(8.5)new, §22:40.30(8.5)


NON-EXISTING PAYEE

Bank of England v. Vagliano, §22:40.30(8.5)conceptual overview, §22:40.30(8.5)

early Canadian cases, §22:40.30(8.5)entities –

no longer existing, §22:40.30(9)(a.1)

not yet in existence, §22:40.30(9(a.1)fraudulent invention –

Concrete Column Clamps rule, §22:40.30(9)(b)(i)

employee fraud, §22:40.30(9)(b)(i) , §22:40.30(10(a)(iv)

IN-86


NON-EXISTING PAYEE — continuedfraudulent invention — continued

generally, §22:40.30(9)(b)plausible belief, and, §8:20.40(9)(b)(ii) and (iii)

UCC rule, §8:20.40(9)(b)(iv)historical perspective, §22:40.30(8.5)identity theft, and, §8:20.40(9)(c)(i)

inanimate payee, §22:40.30(9)(a), §22:40.30(9)(a.1)intention of drawer –

fraudulent intent, §22:40.30(10)(a)(ii)

identity theft, and, §22:40.30(10)(a)(iii)innocent mistake, §22:40.30(10)(a)(i)no benefit to payee, and, §22:40.30(10)(a)

non-existing person, §22:40.30(9)

plausibility doctrine, and, §22:40.30(9)(b)(ii), §22:40.30(9)(b)(iii)policy considerations, §22:40.30(11)propositions –

Falconbridge’s, §22:40.30(8.5)new, §22:40.30(8.5)


NON-NEGOTIABLE INSTRUMENT

legal effect of, §22:30

NOT ON-US

defined, §10:10.50(2)electronic systems, generally, §16:10.20(4)

NOTARY

bank officer or employee not to act as, §21:40.100

foreign, evidence from, §21:40.90

NOTICE

actual, §24:30.30(1)(a)

agent, to, §21:40.10bank, service of, §9:30.40(2)(c)constructive, §24:30.30(1)(a)

corporation, of, §24:30.30(2)(g)dishonour, of, see NOTICE OF DISHONOURnotorious facts, of, §24:30.30(1)(c)prior, forgotten knowledge as, §24:30.30(1)(c)

NOTICE OF DISHONOUR

conflicts of law, and, §33:50consequences of failure, §27:40.10(3)

delay, when excused, §27:40.30dispensed with, when, §27:40.40generally, §27:40

history of, §27:40.10(2)holder in due course, and, §24:30.20(3)requirement of, §27:40.10(2)

INDEX


NOTICE OF DISHONOUR — continuedrequisites of, §27:40.20waiver, §27:40.40(1)when required, §27:40.10

NOTICE OF PROTEST


OECD G20 HIGH-LEVEL PRINCIPLES, §7:70.05(2)

OFFICIAL IMAGE OF CHEQUE

add to destruction of original, }34:25.95admissibility of, §1:30.110(4)

conflict of laws, and, §34:25.120conversion of original, §10:40CPA project phases, §11:20.70(0.5)damages liability of truncating bank, §34:25.110

dealing with, §34:25.40definitions, §34:25.30

bank, §34:25.30(1)

eligible bill, §34:25.30(2)image printout, §34:25.30(3)official image, §34:25.30(4)

destruction of original, §34:25.90discharge of, §29:20.40electronic deposit of, §34:25.30(4)

electronic presentment of. See ELECTRONIC PRESENTMENT OF OFFICIALIMAGE

failure to destroy, }34:25.95forms of, §11:20.70(0.5)

fraudulent negotiation of both image and original, }34:25.95generally, §34:25‘‘holder’’ of, §24:10.10(2)

implementing action by CPA, §34:25.20legal equivalent of eligible bill, §34:25.70mobile phone deposit of, §34:25.30(4)

payment of, §29:20.40presentment of, §34:50.10presumptions –

accuracy, §34:25.60(2)

authenticity, §34:25.60(1)printout of. See IMAGE PRINTOUTSreturn of, §10:10.50(5), §11:20.70(1)(f.1)

return replacement document, §11:20.70(1), §34:25.30(3)statutory authorization of, §34:25.10transitional note, §11:20.70(0.5)

warranty by truncating bank, §34:25.100

OMBUDSMAN FOR BANKING SERVICES AND INVESTMENTS

corporate history and powers, §7:70.30(2)(b)

decisions –

IN-88


OMBUDSMAN FOR BANKING SERVICES AND INVESTMENTS — continueddecisions — continued

advisory only, §7:70.30(2)(b)judicial review of, §7:70.30(3)

not precedents, §7:70.30(2)(b)government criticism of, §7:70.40(2)generally, §7:70.30(2)

mandates –overlap with FCAC, §7:70.10specific, §7:70.30(2)(b)

OBSI, comparison with, §7:70.40(2), §7:70.40(4)policy background, §7:70.30(2)(a)

OMBUDSMEN

bank appointed, §7:70.30(1)

banks’ individual officers, §7:70.10Banking Services and Investments, for, §7:70.10Financial Consumer Agency of Canada, §7:70.20

Financial Services OmbudsNetwork, §7:70.10international policy promoting, §7:70.05(1)multiple agencies, §7:70.10

OBSI. See OMBUDSMAN FOR BANKING SERVICES AND INVESTMENTSOECD G20 High-Level Principles, §7:70.05(2)

ON-LINE PAYMENT SERVICES, see also INTERNET PAYMENTS

ACSS Rule, §16:30.10international policy documents, §16:30.12(1)on-us online payments, §16:30.18(2)

ON-US ITEMS

collection of, §10:10.50(2), §10:30.10(2)(b)defined, §10:10.50(2)dishonour of, §10:30.40(5)

e-mail payments, §16:60.30(2)

OPEN LOOP CARDS. See DEBIT CARDS

OPERATOR


PADs. See PRE-AUTHORIZED DEBITS

PAROL EVIDENCE RULE

admissibility of evidence –

conditional delivery, §23:20.50non-delivery, §23:20.40relations of parties, §28:100.30(1)

contract defences, to establish, §28:100.30(4)corporate signatures, evidence of intention, §23:50.30dispute holder’s status, §28:100.30(2)

generally, §28:100.10impeach consideration, §28:100.30(3)

INDEX


PAROL EVIDENCE RULE — continuedresolve apparent uncertainty, §28:100.30(5)statutory exceptions, §28:110.20

PARTIES TO BILL, CHEQUE OR NOTE

accommodation parties. See ACCOMMODATION PARTY TO BILL, CHEQUEOR NOTE

anomalous endorsers. See ANOMALOUS ENDORSEMENT OF BILL, CHEQUE

OR NOTEcapacity of. See CAPACITY OF PARTIES TO BILL, CHEQUE OR NOTEcorporations as, §23:30.20

damages liability of, §28:90.20drawee. See DRAWEE OF BILL OR CHEQUEduplicate status of, §22:40.40immediate, meaning of, §26:30.10

infants, as, §23:30.30intoxicated, §23:30.40(3)liability of. See LIABILITIES OF PARTIES TO BILL, CHEQUE OR NOTE

mental incompetents, §23:30.40partnership, see PARTNERSHIPS’ BILLS, CHEQUES AND NOTESpayee. See PAYEE OF BILL, CHEQUE OR NOTE

primary. See PRIMARY PARTY OF BILL OR NOTEremote –

meaning of, §26:30.10

payee, as, §24:30.70(2)(a)returned items, party taking again, §24:30.40(2), §26:30.50(9)secondary. See SECONDARY PARTY TO BILL OR NOTE

PARTNERSHIPS’ BILLS, CHEQUES AND NOTES

authorized signatures, §23:50.70(2)bill or note given for, §21:40.110binding signatures, §23:50.70(3)

effect of other partners’ signing, §23:50.70(6)name to appear in bills, cheques and notes of, §23:50.70(1)signature of bill, or note by, §23:50.70

signature of cheque by, §23:50.70(5)trading or non-trading firms, §23:50.70(5)

PAYDAY LOANS

cash cards and, §14:50.20(1)(f), and see CASH CARDS

generally, §1:30.90(8)(d)(i)

PAYEE OF BILL, CHEQUE OR NOTE

anomalous endorser, liability of. See ANOMALOUS ENDORSEMENT OF BILL,

CHEQUE OR NOTEbearer. See BEARER OF BILL, CHEQUE OR NOTEblank, §22:40.30(7)

cash, §22:40.30(9)(a)certainty in naming, §22:40.30(2)drawee, same person as, §22:40.40(3)

drawer, same person as, §22:40.40(1)


IN-90

PAYEE OF BILL, CHEQUE OR NOTE — continuedduplicate status, §22:40.40endorsement by. See ENDORSEMENT OF BILL, CHEQUE OR NOTEfictitious. See FICTITIOUS PAYEE

forgery of signature of, §23:40.30(5)fraudulent invention, §22:40.30(9)(b)generally, §22:40.30

holder in due course, as, §24:30.70legal personality, lacking, §22:40.30(8)misdescription of, §22:40.30(4)

misdesignation, §22:40.30(1)naming, requirement of, §22:40.30(2)non-existing. See NON-EXISTING PAYEEoffice holder, §22:40.30(6)

person of same name endorsing as, §22:40.30(5)several, §22:40.30(3)specified, must be, §22:40.30(1)

PAYMENT

account entries, by, §1:20.30appropriation of. See APPROPRIATION OF PAYMENTS

bi-lateral relation, §1:20.20cheque, by, §1:20.10compelling, see also COMPELLING PAYMENT

generally, §1:30.100concept of, §1:20credit to account, by, §1:20.30currency of. See CURRENCY OF PAYMENT

debtor-initiated, §15:20.30(3)discharge by other means, §1:20.100due, when, §1:30.30

finality of, see also FINALITY OF PAYMENTgenerally, §1:30.40

late, interest cost on, see also INTEREST ON LATE PAYMENT

fees, §1:30.90(8)(c)generally, §1:30.90

late return of cheque as, §1:20.50law of, §1:10

LVTS. See LARGE VALUE TRANSFER SYSTEMmoney, in, §1:20.10netting, by, §1:20.30

new methods of. See NEW METHODS OF PAYMENTofficial image of eligible bill, of, §29:20.40partial. See CHEQUE IN PARTIAL PAYMENT

pre-paid card, by, §1:20.10presentment of item for, see also PRESENTMENT FOR PAYMENT

generally, §27:30

principles of the law of. See PRINCIPLES OF LAW OF PAYMENTpriority payment items. See PRIORITY PAYMENT INSTRUMENTS

INDEX


PAYMENT — continuedproof of. See PROOF OF PAYMENTrounding, §2:20.40(5)set-off, by, §1:20.40(4)

statistics, §1:10sums expressed in more than two decimals, §2:20.40(5)systems –

regulation of. See PAYMENT SYSTEMS REGULATIONtypes of. See PAYMENT SYSTEMS

tender compared, §1:20.20

voluntary nature of, §1:20.20when finally ‘‘made’’, see also FINALITY OF PAYMENT

generally, §1:30.40, }16:60.10(5)(f)wrongful refusal of drawee, §10:10.80

PAYMENT CARD

definition, §7:65.30(1)

PAYMENT CARD NETWORKS

network integrating contracts, §13:20.20(1)(b)(i)service providers, mere, §13:20.20(1)(b)(ii)

PAYMENT CARD NETWORKS ACT

acquirers, effect on, §7:65.40(2)amendments proposed, §7:65.20(2)constitution issues, §7:65.20

constitutional validity of, §7:65.20, §7:65.20(3)date in force, §7:65.10, §7:65.50definitions, §7:65.30

acquirer, §7:65.30(2)

issuer, §7:65.30(3)network, §7:65.30(1)operator, §7:65.30(1)

other, §7:65.30(4)payment card, §7:65.30(1)

disclosure, §7:65.40(1)

enforcement of, §7:65.50grounds for support, §7:65.20(4)

Banking, §7:65.20(4)(c)problem with acquirers, §7:65.20(4)(d)

Trade and Commerce, §7:65.20(4)(a)(b)FCAC oversight of, §7:70.20(3)in terrorem intent, §7:65.40(3)

interchange fees, control over, §7:65.20((3)issuers, effect on, §7:65.50(2)legislative history of, §7:65.10

amendments proposed, §7:65.10(2)original text, §7:65.10legislative intent, §7:65.20(1)

interchange fees, control proposed, 7:65.20(3)


IN-92

PAYMENT CARD NETWORKS ACT — continuedlegislative intent, §7:65.20(3)mobile phone payments, applicatio to, §14.5:30.20regulation of contract terms, §7:65.40(2)

regulatory supervision of, §7:70.20(3)scope of regulation, §7:65.40‘‘voluntary’’ undertakings, }14:15.20(4)(c)

PAYMENT CLEARING AND SETTLEMENT ACT

Bank of Canada regulation, §7:50.30Canadian participant, defined, §7:50.20(3)(a)(i)

CDCC and, §18:30.20, §18:30.50(2)CDS and, §17:20.20(1)(d)CDSX and, §17:20.20(2)(a), §17:50.30(2)clearing and settlement system, defined, §7:50.10(3)

clearing houses for derivatives and securities clearing –designated clearing houses, §7:50.60(3)(b)named clearing houses, §7:50.60(3)(a)

policy foundations for protection of, §7:50.60(1)protection for rules of, §7:50.60(1)

constitutional validity of, §7:50.20(1)

Continuous Linked Settlement Bank, and, see also CONTINUOUS LINKEDSETTLEMENT BANKgenerally, §19:20.30(2)

designated systems, §7:50.40(1)(d)designation of clearing and settlement systems, §7:50.40designation of systems under –

administration of, §7:50.40(3)(d)

benefits of, §7:50.40(3)(a)burdens of, §7:50.40(3)(b)challenge to, §7:50.40(4)

conditions precedent, §7:50.40(1)


INDEX


PAYMENT CLEARING AND SETTLEMENT ACT — continueddesignation of systems under — continued

consequences of, §7:50.40(3)criteria of, §7:50.40(1)(d)

directives, §7:50.40(3)(b)(iii)efficiency and safety of systems, see also EFFICIENCY AND SAFETY OFPAYMENT SYSTEMS

generally, §7:60enforceability of, §7:50.20foreign banks, application to, §7:50.40(6)

foreign exchange markets and, §19:10.40(3)(b)LVTS and, §12:20pith and substance of, §7:50.20(1)preamble of, §7:50.20(2)

rationale for enactment, §7:50.05(2)securities and derivatives clearing houses, §19:10.40(3)(b)systemic risk, definition, see also SYSTEMIC RISK

generally, §7:50.10systems designated, §7:50.40(1)(d)systemic risk control, and, §7:50.05(3)

PAYMENT FOR CUSTOMERS

authorization to debit account, §10:10.30(1)availability of funds. See AVAILABILITY OF FUNDS

cheques. See PAYMENT OF CHEQUESfunds transfers, duty to make, §10:20.20generally, §10:10on-us items, §10:10.50(2)

properly payable items, §10:10.30(1)remittance items. See REMITTANCE INSTRUMENTSrestitution of, §10:10.70

time of payment of, §10:10.50wrongful dishonour, §10:10.80

PAYMENT FOR HONOUR SUPRA PROTEST

effect of, §30:40generally, §30:20.30intervention, conditions for effective, §30:30.20

PAYMENT ITEM

acceptable for exchange, §11:20.60(1) and (3)approved for exchange, §11:20.60(3)definition, §11:20.60

paper items, §11:20.60(3)significance of acceptability for exchange, §11:20.60(2)

PAYMENT, LAW OF

introduction, §1:10principles of. See PRINCIPLES OF LAW OF PAYMENT

INDEX

IN-93 November 2015

PAYMENT OF BILL, CHEQUE OR NOTE IN DUE COURSE

accommodation bill, of, §29:20.30drawer, by, effect of, §29:30due, requisites of, §29:20.20

garnishee, to, §29:20.20(2)(c)generally, §29:20holder with defective title, §29:20.20(2)(a)

meaning of, §1:20, §29:20.10(1)official image of eligible bill, §29:20.40other than in money, §29:20.10(1)(a)

partial, §29:20.10(1)(c)person paid, §29:20.20(2)presumption of, §29:20.20(4)proof of, §29:20.20(4)

received by payee, must be, §2929:20.10(1)(b)renewal item, by, §29:20.10thief, payment to, §29:20.20(2)(b)

time of, §29:20.20(1)

PAYMENT OF BILL OR NOTE

accord and satisfaction, by, §1:30.60(1)

delivery of bill or note, as, §1:30.50demand, when –


no time expressed, when, §22:50.10(2)sight, when, §22:50.10(1)

due course, in. See PAYMENT OF BILL, CHEQUE OR NOTE IN DUECOURSE

meaning of, §1:20, §29:20.10(1)place of, §22:80.20presentment for. See PRESENTMENT FOR PAYMENT

recovery of money paid on forgery, §23:40.60renewal bill or note, by, §1:30.50(2)(c)time of, see also FINALITY OF PAYMENT

generally, §22:50

PAYMENT OF CHEQUES

bankers’ duty to pay –generally, §10:10

who is a ‘‘banker’’, §10:10.20conditions of duty –

funds available, §10:10.30(2)

generally, §10:10.30no suspicious circumstances, §10:10.30(3)properly payable item, §10:10.30(1)

generally, §10:10.10in due course, discharge by. See PAYMENT OF BILL, CHEQUE OR NOTE INDUE COURSE

late return, liability for, see also LATE RETURN OF CHEQUEgenerally, §1:20.50, }10:10.60


IN-94

PAYMENT OF CHEQUES — continuedlimit on permissible sum payable, §11:20.60(3)(a)mandate, effect of payment without, §10:10.70oral confirmation of authority, and, §10:10.50(2)

order of payment, §10:10.40properly payable items, §10:10.30(1)stale, §11:20.60(3)(a)

sufficiency of available funds, §10:10.30(2)time limit for payment, §10:10.50(1)(b)time of payment, see also FINALITY OF PAYMENT

generally, §10:10.50wrongful dishonour of, §10:10.80

PAYMENT SYSTEMS

classification of, §15:20.10, §16:10.20, §16:60.50(1)

classification of, difficulty of, §16:60.05constitutional jurisdiction, §1:25efficiency and safety of, see also EFFICIENCY AND SAFETY OF PAYMENT

SYSTEMSgenerally, §7:60

historical use of federal regulatory power, §7:35

novel, regulation of, §7:35.40regulation of, Chapter 7risk in. See RISK ANALYSIS – PAYMENT SYSTEMS

task force review. See TASK FORCE FOR PAYMENTS SYSTEM REVIEWtypes of –

AFTS, §15:30.10bill payment, §16:50, §16:60.20

CDSX, Chaper 17CLS, §19:20competition law and, §7:30.20(6)

credit card, §13:20debit card, §14:40.10derivatives trades, §18:30.40

e-mail payment, §16:60.30Internet, §16:30.40letter of credit, §13:30mobile phone, §14:50.30

online, §16:30.40open network, §16:20.10(1)(e)POS debit transfer, §14:50

prepaid credit card, §14:50.20real estate closing funds management, §15:40recurring credit transfer, §15:30

recurring debit transfer, §15:20securities trade, Chapter 17single instance debit transfer, §14:50

PAYMENT SYSTEMS REGULATION

Bank of Canada functions, §7:50.20(3)

INDEX


PAYMENT SYSTEMS REGULATION — continuedBIS Reports, §7:20.10Canadian –

legislation, §7:40

policy background, §7:30.20competition law and, §7:30.20(6)consumers’ interests, §7:30.20(4)

designation, PCSA, see also DESIGNATION OF PAYMENT SYSTEMS (PCSA)generally, §7:50.20(2)

efficiency, meaning of, §6:20.30

generally, Chapter 7governance of system, §7:30.20(3)Interac Consent Order, §7:30.20(1)international policy background, §7:20

privacy and confidentiality, duties of, §6:20.30refusal to deal, competition in payments services, §7:30.20(6)rights of access, §7:30.20(2)

risk analysis, §7:20.30(5), see also RISK ANALYSIS – PAYMENT SYSTEMSsafety and soundness, meaning of, §6:20.30

PAYMENTS BY BANKERS

funds transfers, §10:20.20government cheques, statutory duty, §10:20.30remittance instruments. See REMITTANCE INSTRUMENTS

PAYMENTS SYSTEMS RISK

definition of, §7:50.10(2)designation of systems to avert, §7:50.40

PAYPAL

banking, business of, §8:30.20(3)(a), §16:60.40(1)(a)generally, §16:60.40(1)(a)legality of, §16:60.40(1)(b)

system description, §16:60.40(1)(b)user agreement –

choice of law and jurisdiction, §16:60.40(1)(c)(i)

conditions of use, §16:60.40(1)(c)(iii)dispute resolution, §16:60.40(1)(c)(vi)error correction, §16:60.40(1)(c)(v)generally, §16:60.40(1)(c)

legal relations, §16:60.40(1)(c)(ii)limitation of liability, §16:60.40(1)(c)(iv)unauthorized use, §16:60.40(1)(c)(v)

PAYPASS

generally, §13:20.20(3)(d)

PAYROLL CARDS

Canada, not used in, §14:50.20(1)(g)


IN-94.2

PAYWAVE

generally, §13:20.20(3)(d)

PENALTY CLAUSES, }1:30.100(3)‘‘commercially reasonable’’, §1:30.100(4)(b)

fines, §1:30.100(4)(d)generally, §1:30.100(3)unconscionability and, §1:30.100(3)

PERFORMANCE BONDS. See DEMAND GUARANTIES

PERSON

definition of in BEA, generally, §21:20.40

definition in DBNA, §37:50.10(11)meaning of in BEA s. 165(3), §10:50.20(1)(e)

PERSONAL IDENTIFICATION NUMBER (‘‘PIN’’)

security of –

credit card contracts, §13:20.40(2)(f)debit card contracts, §14:40.20(2)(a)

PERSONAL INFORMATION PROTECTION AND ELECTRONIC

DOCUMENTS ACT

civil cause of action, and, §9:20.20(2)defence for bank, as, §9:20.30(5.5)(b) and (c)

disclosure obligations of banks, §9:20.40(2)duties of bank, effect on, §9:10.10(3)(d)exclusivity of federal law, §9:20.30(5.5)(a)

performance by bank, §9:20.30(2)(c)PIPEDA as defence to bank, }9:70.20(1)(c)privacy policies for banks, §9:20.20(2)

PIN. See PERSONAL IDENTIFICATION NUMBER (‘‘PIN’’)

PIN-LESS POINT OF SALE ITEMS

authorization, §14:25.40(3)clearing, §14:25.40(4)

Code of Practice, and, §14:25.40devices, §14:25.40(1)dispute resolution, §14:25.40(5)

exchange, §14:25.40(4)glossary, §14:25.20introduction, §14:25.10legal foundation, §14:25.30

privacy, §14:25.40(2)regulation of, §14:25.05security, §14:25.40(2)

settlement, §14:25.40(4)system description, §14:25.40validation, §14:25.40(3)

INDEX


PIPEDA. See PERSONAL INFORMATION PROTECTION AND

ELECTRONIC DOCUMENTS ACT

PLACE OF PAYMENT

effect of stipulating, §22:80.20

meaning of ‘‘place’’, §27:30.20(4), §35:60.50(2)none specified in item, when, §27:30.20(4)particular place, meaning of, §35:60.50(5)

presentment of bills for payment at, §27:30.20(4)presentment of notes for payment at, §35:60.50unspecified, effect of, §22:80.20

POINT-OF-SERVICE PAYMENTS

authentication, §14:20.40(3)authorization, §14:20.40(3)cardholder agreements, §14:40.20(2)

currency dispensing, §14:30customer accounting, §14:40.10(6)debit cards, see DEBIT CARDS

devices, §14:20.40(1)dispute resolution, §14:20.40(5)exchange and clearing of –

CPA Rule E1, §14:20definition, §11:20.70(2)(b)(i)exchange of, §11:20.70(2)(b)(i)

error correction, §11:20.70(2)(b)(i)generally, §11:20.70(2)(b)(i), §14:20.40(4), }14:40.10(5)unreturnable nature of, §11:20.70(2)(b)(i), §11:20.70(2)(d)

finality of payment, §14:40.30(6)

generally, Chapter 14glossary, §14:20.20Interac Direct Payment. See INTERAC DIRECT PAYMENT

inter-member agreement, §14:40.20(1)irrevocability of POS items in ACSS, §14:40.30(7)legal foundation for CPA Rule, §14:20.30

mobile phones as POS devices, see also MOBILE-PHONE PAYMENTS ANDTRANSFERSgenerally, §14:50.30

participants, roles of, §14:40.10(3)

privacy, §14:20.40(2)security, §14:20.40(2)system description, §14:20.40, §14:40.10(2)

transaction processing, §14:40.10(4)

POS. See POINT-OF-SERVICE PAYMENTS

POSSESSION (OF BILL, CHEQUE OR NOTE)

concept defined, §21:20.50(5), §24:10.10constructive, §21:20.50(6)custody distinguished, §21:20.50(5)

importance to holder of, §24:10.10


IN-94.4

POSSESSION (OF BILL, CHEQUE OR NOTE) — continuedtime of, §24:10.30

POST-DATED CHEQUES

certified cheque, §34:20.80(6)(a), §34:60.10(7)

countermand of, §34:20.80(3)definition of, §34:20.80double-dated items, compared, §34:20.80(6)(b)

drawee, liability of, §34:20.80(4)limitation period and, §34:20.80(6)(b)negotiability of, §34:20.80(2), §34:50.20(5)

not invalid, §22:60.30, §34:20.80(2)preference and, §34:20.80(5)stale, when, §34:20.90


INDEX


POST-DATED CHEQUES — continuedstop-payment of, §34:20.80(3)use of in Canada, §34:20.80(1)

PRE-AUTHORIZED DEBITS

ACSS and –exchange of, §11:20.70(2)(a)settlement for, §11:20.90(2)

accuracy of, responsibility for, §15:20.20(3)(d)(i)authorization of payor –

account information, §15:20.20(5)(a)(ii)

agreement, as, §15:20.20(5)(a)(i)change of account, duty upon, §15:20.20(5)(c)choice of governing law, §15:20.20(5)(a)(i)generally, §15:20.20(5)

mandatory terms, §15:20.20(5)(a)revocation, §15:20.20(5)(b)sponsor requires payee obtain, §15:20.20(3)(a)

Canadian Payments Association, and, §15:20.20(1)capacity of payor, §15:20.20(5)(a)(i)challenged by payor, reimbursement, §15:20.20(3)(d)(iii)

conditional payment only, §15:20.20(6)CPA Rule –

‘‘New H1’’ and ‘‘Old H1’’ distinguished, §15:20.10

debtor-initiated payment, §15:20.30(3)definition, §15:20.10dishonour, effect of –

charge by payee for, §15:20.20(3)(d)

generally, §15:20.20(7)processing FI, by, §15:20.20(4)(b)unwinding, §15:20.20(4)(d)

dispute resolution, §15:20.20(5)(a)(v)electronic forms of authorization, §15:20.20(3)(c)(ii)error correction, §15:20.20(4)(c)

exchange of, §11:20.70(2)(a)(i)finality of payment, §15:20.20(6)generally, §15:20glossary, §15:20.10

insurance premium, late payment of, §15:20.30(2)NSF, §15:20.20(3)(d)(ii)‘‘one-time’’ debits prohibited, §15:20.20(3)(b)

participant responsibilities –payee, §15:20.20(3)processing financial institution, §15:20.20(4)

sponsoring financial institution, §15:20.20(2)payee’s undertaking –

adherence to CPA rules, §15:20.20(3)(b)

exculpation of sponsor, §15:20.20(3)(d)(v)generally, §15:20.20(3)

INDEX

IN-95 June 2012

PRE-AUTHORIZED DEBITS — continuedpayee’s undertaking — continued

indemnity of CPA members, §15:20.20(3)(d)(iv)legal agreement, §15:20.20(3)(a)

mandatory terms of, §15:20.20(3)relations with payor, §15:20.20(3)(c)relations with sponsor, §15:20.20(3)(d)

payor’s authorization –accuracy of account data, §15:20.20(5)(a)(iii)cancellation of, §15:20.20(3)(c)(iv)

capacity and authority, §15:20.20(5)(a)(ii)change of banking details, §15:20.20(3)(c)(iii)contract or authorization, §15:20.20(5)(a)electronic authorizations, §15:20.20(3)(c)(ii)

generally, §15:20.20(3)(c)(i), }15:20.20(5)procuration of, §15:20.20(3)(c)(i)termination, §15:20.20(5)(a)(vi)

pre-notification of PADs, §15:20.20(3)(c)(ii)processing FI duties –

error correction, §15:20.20(4)(c)

generally, §15:20.20(4)pay PADs, §15:20.20(4)(a)

reimbursement, §15:20.20(5)(a)(v)

return of items, §11:20.70(2)(a)(i)Rule H1, versions of, §15:20.10(1)servicability schedules, §11:20.70(2)(a)(i)set-off and, §15:20.30(1)

sponsor’s duties –documentation of PADs, §15:20.20(2)(a)(i)generally, §15:20.20(2)

independent payee, when, §15:20.20(2)(a)legal liability for PADs, §15:20.20(2)(a)(iii)operational responsibilities, §15:20.20(2)(a)(ii)

payee and sponsor same, when, §15:20.20(2)(b)system description, §15:20.20types of PADs, §15:20.10(2)versions of the Rule, §15:20.10(1)

PRECLUSION TO DENY FORGED SIGNATUREadoption, by, §23:40.40(1)contract, §23:40.40(5)

Crown, of, §23:40.40(7)detrimental reliance, §23:40.40(6)estoppel, by, §23:40.40(3)

generally, §23:40.40negligence, by, §23:40.40(2)ratification, §23:40.50

silence, by, §23:40.40(4)

PRECLUSION TO DENY LIABILITY

IN-96


PRECLUSION TO DENY LIABILITY

acceptor, of, §28:30.40endorser, §28:50.20

PREPAID CREDIT CARDS

deposits, whether funds are, §14:50.20(3)(b)introduction, §14:50.20(1)legal analysis, §14:50.20(3)

regulation of, §13:15.25, §13:20.20(3)(c)system description, §14:50.20(2)

PREPAID DEBIT CARDS

ACSS Rules, §14:50.20(1)(c)cash cards. See CASH CARDSCPA guidelines, §14:50.20(1)(b)deposit, whether, §14:50.20(3)(b)

deposit, whether value is, payroll cards, §14:50.20(3)(c)finality and, §14:50.20(3)(c)gift cards. See GIFT CARDS

legal analysis, §14:50.20(3)legal relations of parties –

cardholder and issuer, §14:50.20(3)(a)

cardholder and merchant, §14:50.20(2)(b)(i)overview, §14:50.20(1)(a)payroll cards. See PAYROLL CARDS

Prepaid Payment Products Regulations, and, §14:50.20(1)(c.1)provincial regulation of, §14:50.20(1)(d)system description –

closed loop cards, §14:50.20(2)(b)

open loop cards, §14:50.20(2)(a)

PREPAID PAYMENT PRODUCTS REGULATIONS

credit cards, and, §13:15.25, §13:20.20(3)(c)

debit cards, and, §14:15.40, §14:50.20(1)(c.1)

PRESENTMENT FOR ACCEPTANCE

delay in, §27:20.20(3), §27:20.40(1)

diligence, duty to use reasonable, §27:20.30dishonour upon, §27:20.40due, requisites of, §27:20.20excused, when, §27:20.30

failure, consequences of, §27:20.10(2)fictitious drawee, §22:40.10(4)generally, §27:20

how to, §27:20.20(4)irregular, §27:20.10(2)place, meaning of, §27:20.10(1)

recourse, rights of, §27:20.40(2)when required, §27:20.10when to be done, §27:20.20(3)

INDEX

IN-97 May 2016

PRESENTMENT FOR ACCEPTANCE — continuedwhom –

by, §27:20.20(1)to, §27:20.20(2)

PRESENTMENT FOR PAYMENT

acceptor, special rules for, §27:30.40cheque clearing system, use of, see also CLEARING SYSTEM FOR CHEQUES

AND OTHER DEBITS; COLLECTION OF CHEQUESgenerally, §27:20.10

collecting bank’s duty, §10:30.30(1)

conflicts of law, and, §133:50delay, cheques, special rule, §34:50.20delay in –


‘‘legal legerdemain’’ and, §10:10.50(2)when excused, §27:30.30

demand promissory note, of, §35:60.10(1)

dispensed with, when, §27:30.40due, requisites of, §27:30.20electronic. See ELECTRONIC PRESENTMENT OF OFFICIAL IMAGE

fictitious drawee, §22:40.10(4), §27:30.40generally, §27:30maturity, calculation of’generally, §26:30.30

place. See PLACE OF PAYMENTpost, by, §27:30.20(4)promissory note, of –

demand, §35:60.10(1)

generally, §35:60.10time, §35:60.10(2)

reasonable time, §10:30.30(2)

time of payment. See FINALITY OF PAYMENTtruncated items, of. See ELECTRONIC PRESENTMENT OF OFFICIAL IMAGEuseless, when, §27:30.40

waiver of, §10:30.30(2), §27:30.40when required, §27:30.10where, §27:30.20(4)whom –

by, §27:30.20(1)to, §27:30.20(2)

PRIMARY PARTY OF BILL OR NOTE

acceptor of bill, as, §28:30.20maker of note, as, §35:70.30

PRIME RATE. See INTEREST ON BILL OR NOTE

PRINCIPLES OF LAW OF PAYMENT

finality, §1:30.45, §1:40generally, §1:40.10(1)

incidence of risk of system failure, §1:30.40


IN-98

PRINCIPLES OF LAW OF PAYMENT — continuedinternational texts, §1:40.20onus of cost of payment, §1:40.20(7)onus on debtor, §1:30.10

person making payment, materiality of, §1:30.20person receiving payment, materiality of, §1:30.20recognition of new, §1:40.10(2)

rules of distinguished, §1:40.10(1)shared principles, §1:40.20(2)time payment is –

finally ‘‘made’’, §1:30.40required, §1:30.30

PRIORITY PAYMENT INSTRUMENTS

generally, §11:50.40(2)

instruments qualified, §11:50.40(2)(a)letters of credit, as, §13:30.90(1)limitations on recovery, §11:50.40(2)(b)

Northland Bank precedent, §11:50.40(3)remittance instruments, as, §10:20.10(3)return upon default of bank, §11:20.100(2)(c)(i)

PRIVACY (RIGHT TO)

banks’ duty of confidentiality, §9:20.30(5)PIPEDA disclosures, §9:20.20(2), §9:20.40(2)

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST

FINANCING ACT

effect on banking relation, §9:10.10(3)(d), see also MONEY LAUNDERING

PROMISSORY NOTES

application of Act to, §35:80authority to sign, see also AUTHORITY TO SIGN BILL, CHEQUE OR NOTE

generally, §23:40, }35:20.30(3)bank notes as, §35:10.30(2)bearer bonds, as, §35:10.30(4)bearer, payable to, §35:10.40(10)

cancellation by provincial law, validity of, §3:05.50(4.5)capacity of parties to, see also CAPACITY OF PARTIES TO BILL, CHEQUE ORNOTEgenerally, §23:30, }35:20.30(2)

certificate of deposit distinguished, §35:10.30(1)close connection doctrine, see also CLOSE CONNECTION DOCTRINEcomplete and regular, §35:10.40

consideration, see also CONSIDERATION FOR BILL, CHEQUE OR NOTEantecedent, §23:70.30(2.5)generally, §35:20.30(4)

consumer note. See CONSUMER BILL OR NOTEcontinuing or collateral security, as, §35:60.20(2)debentures, and, §35:10.30(5)

defective, liability of parties to, §22:30

INDEX

IN-99 May 2016

PROMISSORY NOTES — continueddefences. See DEFENCES TO LIABILITY ON BILL, CHEQUE OR NOTEdefinition, §35:10delivery, requirement of. See DELIVERY OF BILL, CHEQUE OR NOTE

demand –due, when, §35:60.10(1)payable on, §35:10.40

depository notes. See DEPOSITORY BILLS AND NOTES ACTforeign, §35:10.50formal validity, §35:10

generally, Chaper 35grid notes, §35:10.30(7)holder’s duties –

demand notes, §35:60.10(1)

endorsed notes, §35:60.10(4)failure to present in time, §35:60.40generally, §35:60

other, §35:60.70place, §35:60.50time notes, §35:60.10(2)

unendorsed notes, §35:60.10(3)incomplete, see also INCOMPLETE BILL, CHEQUE OR NOTE

generally, §35:20.30(1)

inland, §35:10.50instruments not qualifying, effect of, §22:30I.O.U. distinguished, §35:10.30(3)joint and several liability on, §35:20.20

lien notes. See LIEN NOTESmaker, more than one, §35:20.20(1)maker’s liability. See MAKER OF NOTE

merger in security agreement, §35:40money, payable in, §35:10.40(7)order, payment to, §35:10.40(8)

overdue, when, §35:60.30Partnership Act, and, §35:20.20(4)payee, designation of, §35:10.40(8), (9), (10)presentment for payment of –

method, §35:60.50(6)place, §35:60.50(2), (4) and (5)reasonable time, §35:60.20

time, §35:60.10promise to pay, §35:10.40(4)protest of, §35:60.60

signature, §35:10.40sum certain, §35:10.40(6)time of payment. See FINALITY OF PAYMENT

transactional validity of, §35:20unconditional promise –

executory consideration, reference to, §22:20.10(2)(d)

IN-100


PROMISSORY NOTES — continuedunconditional promise — continued

generally, §35:10.10, }35:10.20other documents, reference to, §22:20.10(2)

trust indenture, secured by, §22:20.10(2)(c)writing, requirement of, §35:10.40(1)

PROOF OF PAYMENT

cash payments, §1:30.110(2)cheque payments, §1:30.110(3)criminal proceedings, in, §1:30.110(3)(a)

electronic payments, §1:30.110(5)generally, §1:30.110official image of eligible bill, §1:30.110(4)other media of payment, §1:30.110(6)

presumption of payment, §1:30.110(7)receipts, §1:30.110(1)releases distinguished, §1:30.110(1)

PROPERLY PAYABLE ITEM

definition, §10:10.30(1)

PROTEST OF BILL, CHEQUE OR NOTE

acceptor, as against, §27:50.10(1)bank officer not to act as notary, §21:40.100conflicts of law, and, §33:50.10

delay, excuse of, §27:50.30dispensed with, when, §27:50.40due, requisites of, §27:50.20endorser of note, against, §35:60.60

evidence, as, §21:40.90expenses of, §27:50.50foreign bill, cheque or note, of, §27:50.10(3)

generally, §27:50inland bill, cheque or note, of, §27:50.10(2)maker of note, as against, §27:50.10(1)

notice of, §27:50.60when required, §27:50.10

PROVINCIAL TREASURY BRANCHES

‘‘bank’’ for certain purposes, §10:50.20(1)(c), §34:20.50

banking by, §78:20.30(3)constitutional power to create, §78:20.30(2)C.P.A. membership of, §6:30.20(1)(d)

PUBLIC HOLIDAY. See NON-BUSINESS DAY/NON-JURIDICAL DAY

RADIO FREQUENCY IDENTIFICATION

contactless cards and, §13:20.20(3)(d)

REACQUIRED AND RELEASED ITEMS

generally, §25:70

INDEX

IN-101 May 2016

REAL DEFENCES

defined, §26:30.30(1)effect of, §26:30.30(2)forged or unauthorized signature as, §23:40.20

generally, §26:30.30incapacity, as, §23:30.60(1)knowledge by holder of, §24:30.30(2)(a)

REAL ESTATE CLOSING FUNDS MANAGEMENT SYSTEM

BAR-Ex, §15:40.10legal analysis, §15:40.20

system description, §15:40.10

REASONABLE BANKER

concept of, §9:20.30(2)(a)tort of ‘‘negligent banking, and, §9:20.30(4)

REASONABLE TIME

incomplete bill or note, to complete, §23:20.60(9)payment, for, §27:30.20(3)

present bill for acceptance, to, §27:20.20(3)(a)present cheque for payment, to, §34:50.20(2)present demand note for payment, to, §35:60.20

RECEIVER GENERAL’S WARRANTS

items acceptable for exchange in ACSS, §11:20.60(10(d)law applicable to, §21:40.50

RECKONING OF TIME

days of grace. See DAYS OF GRACEgenerally, §22:50.50time of payment. See FINALITY OF PAYMENT

RECOVERY OF MONEY PAID ON FORGERY

acceptance, on, §23:40.70(3)collecting bank vs. prior endorsers, §23:40.60(7)

conversion, action for damages for, §23:40.60(2)drawee vs. collecting bank, §23:40.60(6)drawer vs. collecting bank, §23:40.60(5)

drawer vs. drawee, §23:40.60(4)drawer’s signature forged, §23:40.60(5)(a)endorsement forged, §23:40.30(6)generally, §23:40.60, §23:40.70

maker of note, by, §23:40.70(1)payee of draft, by, §23:40.70(2)payee vs. collecting bank, §23:40.60(9)

payee vs. drawee, §23:40.60(8)

RE-EXCHANGE (BILL OR NOTE)


IN-102


REFEREE IN CASE OF NEED


REGIONAL EXCHANGE POINTS

clearing of items in, §11:20.80(1)

diligence in attendance, §11:20.50(3)exchange of items in, §11:20.70(1)(a)organization of, §11:20.40

representation at, §11:20.50(1)

REGULATION OF CREDIT CARD AGREEMENTS

Credit Business (Banks) Regulations, §13:15.20

merchant agreements, §13:15.30

REGULATION OF PAYMENT SYSTEMS

Canadian legislation, }7:40constitutional authority, }7:35payment system risk, }7:50.40policy foundations

domestic, }7:30international, }7:20

systemic risk, and, }7:50


INDEX


REGULATIONS

Access to Basic Banking Services, §9:10.10(2), §9:10.20(2), §10:20.30Access to Funds Regulations, §9:20.20(3)(b)Affiliated Person (Banks), §18:30.50(1)(c)(iii)

Bank of Canada Notes, §2:20.20(1)Canadian Payments Association Election of Directors, §6:40.10

Membership Requirements, §6:30.20(2)(a), §6:30.40

Money Market Mutual Fund Conditions, §6:30.40Cheque Holding Policy Disclosure (Banks), §9:20.20(3)(a), 9:20.40(1)(a)Cost of Borrowing (Banks &c.), §8:20.30, §13:20.40(2)(b)(ii)

Credit Business Practices (Banks &c.), §13:15.20Cross-border Currency and Monetary Instruments Reporting, §10:20.10(7)Disclosure of Interest (Banks &c.), §9:20.40(1)(d)(i), §9:30.30(1)(b)(i)Disclosure on Account Opening by Telephone Request (Banks &c.), §9:10.30(3)(b)

Electronic Payments, §1:30.110(3)(a)Eligible Financial Contracts (Winding-up and Restructuring Act), §17:50.30(1),§18:10.10, §19:10.40(3)(a), §19:20.30(4)

Federal Court Rules, §2:20.40(2)(b)Financial Consumer Agency of Canada Designated Violations, §7:70.20Index-linked Deposit Interest Disclosure (repealed), §9:20.40(1)(d)(ii)

Information Processing Activities (Banks &c.), §8:20.20(1)(c), §12:30.10(4)(b)Insurance Business (Banks &c.), §8:20.30(1)(b)Negative Option Billing, §13:15.40

Notice of Branch Closure (Banks), §9:70.20(3)Prepaid Credit Card, §13:15.25Prescribed Deposits (Authorized Foreign Banks), §9:30.10(2)(a)Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious

Transactions Reporting, §3:10.30(3), §3:80, §16:60.10(1)(e)Protection of Assets (Banks &c.), §17:20.20(1)(e)Securities Dealing Restrictions (Banks &c.), §8:20.30

Special Economic Measures (Banks), §3:70.20Terrorist Financing –

List of Entities, §3:70.30

Suspicious Transaction Reporting, §3:10.30(3), 3:80United Nations (Iraq &c.), §3:70.10

REINVESTMENT PRINCIPLE, §22:70.10(8)

REMITTANCE INSTRUMENTS

alteration of, §10:20.10(4)bank cheques. See BANK CHEQUEScashiers’ cheques. See BANK CHEQUES

conversion of, §23:40.60(2)countermand of, §10:20.10(1)defences of issuer, §10:20.10(6)

definition, §10:20.10dishonour of, §10:20.10(3)forgery of, §10.20.10(5)

generally, §10:20.10holder’s rights, §10:20.10(2)

INDEX

IN-103 October 2014

REMITTANCE INSTRUMENTS — continuedinter-bank items, as, §10:20.10(3)international services, §10:20.10(6.8)loss of, as discharge of debtor, §1:30.50(2)(e)

lost or stolen, re-issue of, §10:20.10(5)money laundering by, see also MONEY LAUNDERING

generally, §10:20.10(7)

money orders. See MONEY ORDERSnegotiability of, §22:20.30official cheques. See BANK CHEQUES

stop-payment of, §10:20.10(1)

REMOTE PARTIES (BILL, CHEQUE OR NOTE)

defined, §26:30.10(1)immediate parties distinguished, §26:30.10(1)

RENEWAL OF BILL OR NOTE

note, §35:20.30(6)payment by, §1:30.50

RENUNCIATION OF LIABILITY ON BILL, CHEQUE OR NOTE

absolute and unconditional, §29:50.30at or after maturity, §29:50.20

deemed payment, §29:50.10(2)document, in different, §29:60.10effect on other parties, §29:50.70

generally, §29:50release distinguished, §29:50.10(1)when, §29:50.20

REPRESENTATIVE SIGNATURE ON BILL, CHEQUE OR NOTE

agent’s liability if unauthorized, §23:50.60ambiguity, as to role of signer, §23:50.30(1)corporate cheques, identification of, §23:50.20

generally, §23:50intention, materiality of parties’, §23:50.30(2)liability of whom, §23:50.10

non-existent principal, for, §23:50.50parol evidence of intention, admissibility of, §23:50.30partnership signatures, §23:50.70summary of current law, §23:50.30(3)

unformed corporations, for, §23:50.40

RESTITUTION OF MONEY

bona fide purchase –

common law tracing, and, §3:30.20(1)elements of defence, §3:30.20(1)(b)equitable tracing, and, §3:40.10(4)(d)(i)

policy foundation, §3:30.20(1)(a)statutory tracing, and, §3:50.10(5)

change of position, §3:30.20(2), §3:40.10(4)(d)(ii)


IN-104

RESTITUTION OF MONEY — continuedchange of position by payee, §10:10.70(1)(b)(iii)collecting bank’s action v. endorsers, §23:40.60(7)common law tracing. See TRACING MONEY – COMMON LAW

consideration by payee, §10:10.70(1)(b)(ii)conventional theory, §10:10.70(1)defences, §10:10.70(1)(b)

defences to claim of –bona fide purchase, §3:40.10(4)(d)(i)change of position, §3:40.10(4)(d)(ii)

juristic reason, absence of. See TRACING MONEY – EQUITABLE‘‘just debt’’ owed, §10:10.70(2)(c)(v)no ‘‘just debt’’ owed, §10:10.70

drawee bank, for, §10:10.70

drawee’s action v. collecting bank, §23:40.60(6)drawer’s action for –

collecting bank, §23:40.60(5)

drawee bank, §23:40.60(4)equitable tracing. See TRACING MONEY – EQUITABLEequitable property right, actual –

generally, §3:40.10(3)reasonable expectation of, §3:40.10(3)(f)

holder in due course, and, §3:30.20(1)(c), §26:20.20(11)

identification of –fact, question of 3:30.10, §3:40.10(3)(g)(i)generally, §3:30.10, }3:40.10(3)(g)presumptions and fictions, §3:40.10(3)(g)(iii)

tracing equivalent value, §3:40.10(3)(g)(ii)juristic reason for retention –

bona fide purchase, as §3:30.20(1)

change of position, as §3:30.20(2)contract as, §10:10.70(2)(c)(vi)limitation of action, §3:30.20(1), §3:40.10(4)(d)(iv)

elements of defence, §3:30.20(1)(b)just debt, and, §10:10.70(2)(c)(v)limitation –

of common law action, §3:30.20(3)

of equitable action, §3:40.10(4)(d)(iv)mistaken payments –

claim against customer, §10:10.70(1)(c)(i)

claim against payee, §10:10.70(1)(c)(iii)generally, §3:40.10(3)(b)

paid on forged signature on bill or note, §23:40.60

payee’s action vs. –collecting bank, §23:40.60(9)drawee, §23:40.60(8)

proceeds of theft, §3:40.10(3)(d)tracing. See TRACING MONEYvoidable loans, §3:40.10(3)(c)

INDEX

IN-105 October 2014

RESTRICTIVE ENDORSEMENT

bill, cheque or note, on, §25:30.30legal effect of, §25:30.30(1)section 165(3) BEA and, §25:30.30(2)

RETURN REPLACEMENT DOCUMENTS

generally, §11:20.70(1.5)transitional note, §11:20.70(0.5)

RETURNED ITEMS

cheques –generally, §10:10.60(2)

late return. See LATE RETURN OF CHEQUEtimely return, see also TIME LIMITS FOR RETURNS – ELECTRONICITEMS; TIME LIMITS FOR RETURNS – PAPER ITEMS

time limits. See TIME LIMITS FOR RETURNS – ELECTRONIC ITEMS; TIME

LIMITS FOR RETURNS – PAPER ITEMSunreturnable electronic items. See TIME LIMITS FOR RETURNS –ELECTRONIC ITEMS

USD items, §11:30.70(1)(c)

RETURN REPLACEMENT DOCUMENT

clearing of, §11:20.70(1)(b.1)

standards for, §34:25.30(3)

RFID. See RADIO FREQUENCY IDENTIFICATION

RIGHTS AND DUTIES OF HOLDER OF BILL, CHEQUE OR NOTE

action in own name, §26:20.10complete, to. See INCOMPLETE BILL, CHEQUE OR NOTEgenerally, §26:20negotiate, to. See NEGOTlATION OF BILL, CHEQUE OR NOTE

RISK ANALYSIS – PAYMENT ITEM OR INSTRUCTION

generally, §7:20.30(5)(b)

RISK ANALYSIS – PAYMENT SYSTEMS

credit risk, §7:30.20(5)(a)legal risk, §7:30.20(5)(a)liquidity risk, §7:30.20(5)(a)

operational risk, §7:30.20(5)(a)payment systems, generally, §7:30.20(5)regulatory risk, §7:30.20(5)(a)reputational risk, §7:30.20(5)(a)

security risk, §7:30.20(5)(a)settlement risk, §7:30.20(5)(a)systemic risk. See SYSTEMIC RISK

RISK MANAGEMENT

ACSS, in, §11:60CDCC, in, §18:30.50

CDS, in, §17:30.80


IN-106

RISK MANAGEMENT — continuedCLS, in, §19:20.20(4)

ROUNDING

abolition of penny and, §2:20.40(5)(b)

generally, §2:20.40(5)(b)

SATURDAY. See NON-BUSINESS DAY/NON-JURIDICAL DAY

SECONDARY PARTY TO BILL OR NOTE

drawer of bill, as, §28:40.20endorser of bill or note, as, §28:50.10liability of, preserving. See DUTIES OF HOLDER OF BILL, CHEQUE OR

NOTE AT MATURITYlimitation period, commencement of, §28:110.10(4)(e)

SECURITIES AND DERIVATIVES CLEARING HOUSES

designation of, §7:50.60

named in PCSA, §7:50.60(3)(a)Payment Clearing and Settlement Act, and, §7:50.10(3), §7:50.40payments system risk, and, §7:50.60

statutory protections of rights, §7:50.60(2)systemic risk, and, §7:50.60

SECURITIES TRANSFER ACT

brief history of, §27:10.20change of legal character of deposited financial assets –

funds, §17:30.70(3)(b)

securities, §17:30.70(3)negotiability of securities and, §20:20.30relationship with DBNA, §37:20.30


INDEX

IN-106.1 May 2015

SECURITIES TRANSFER ACT — continuedsitus of securities in CDSX, under, §17:30.70(2)transfer of security entitlement, §17:30.70(4)

SECURITY OF ACCOUNT

commecrially reasonable level of, §9:40.40(3)contract terms, typical, §9:40.20(2)(b)generally, §9:40.40(2)(a)

SET-OFF

banks’ consolidation of accounts, and, §9:10, §9:60.20, §9:60.20(3)(b)banks’ Iraqi funds, and, §3:70.10(3)

Basel Accord, and, §7:20.10(3)BEA, in, includes action, §21:20.20‘‘cash-like’’ quality of bills, and, §26:40.10(1)CDCC, in, §18:30.30(2)(b)(v)

CDSX, in, §7:50.20(3)(a)(ii), §17:30.30(2)(b)(iv), §17:40.60clearing and,, §11:10.30, §11:20.80(2)conflicts of laws, in, §33:80.40

consumer bill or note, and, §36:40.20, §36:40.30contractual, §1:20.40(3)credit card debt and bank balance, §13:20:40(2)(h)(v)

defence to liability on bill or note, as, §26:30.50, §26:40effect of, §1:20.40(4)equitable, §1:20.40(2)

federal law of, §7:50.20(5)(a)(i), (v)in acceptance of bill, text preserving, §22:90.60legal (statutory), §1:20.40(1)letter of credit issuer, and, §13:30.50(2)

loss of right, §1:20.40(5)PAD, and, §15:20.30(1)patent-right bill or note, and, §21:40.10

payment, as, §1:20.40PCSA-designated systems, in, §7:50.20(5)(b)(i)personal defence to bill distinguished, §26:30.40(2)

post-maturity holder, and, §26:30.40(3)(b)(iv)pre-authorized payment, and, §15:20.30(1)priority, as source of, §19:10.40(2)procedural, §1:20.40(1)

summary judgment on bills, and, §26:40.10types of, §1:20.40

SETS OF BILLS. See BILLS IN SETS

SETTLEMENT SYSTEM. See CLEARING SYSTEM FOR CHEQUES AND

OTHER DEBITS

SHELTERED HOLDER OF BILL, CHEQUE OR NOTE

generally, §24:30.40new transferee as, §24:30.40(1)reacquiring party as, §24:30.40(2), §26:30.50(9)

INDEX

IN-107 May 2016

SIGHT BILL

meaning of, §22:50.10(1)time of acceptance of, §22:90.50

SIGNATURE BY PROCURATION

definition, §23:40.80effect of, §23:40.80(2)what signatures within BEA, §23:40.80(1)

SIGNATURE ON BILL OR NOTE

anomalous endorsement. See ANOMALOUS ENDORSEMENT OF BILL,CHEQUE OR NOTE

assumed name, §23:60authority to sign. See AUTHORITY TO SIGN BILL, CHEQUE OR NOTEcorporate seal, as. See CORPORATE SEALdigital, §21:40.20(2)(c)

expanded meaning of, §21:40.20(1)meaning of, §21:40.20(1)medium of, §21:40.20(2)

non est factum, and, §26:30.50(4)partnership, §23:50.70placement of, §21:40.20(3)

procuration, by. See SIGNATURE BY PROCURATIONrepresentative. See REPRESENTATIVE SIGNATURE ON BILL, CHEQUE ORNOTE

stamps, as, §21:40.20(2)(b)trade name, §23:60unsigned form, whether legal cheque, §22:20.40

SINGLE-INSTANCE DEBITS AND CREDITS

classification of systems, §16:10.20credit card payments, §13:20EDI message standards, §16:20.10(2)(a)

federal government initiatives, §16:20.10(1)(c)generally, Chapter 16international funds transfers, §16:10.10(2)(b)

international influences, §16:20.10(1)(b)LVTS payments, Chapter 12open network payment systems development policy, §16:20.10(1)(e)policy statements, §16:20.10

POS payments, §14:40privacy policy and, §16:20.10(1)(d), (f)statistics, §16:20.10(1)(a)(ii)

SWIFT message standards, §16:20.10(2)(b)technical standards, §16:20.10(2)

SMART CARDS. See DEBIT CARDS

SPECIAL ECONOMIC MEASURES ACT

generally, §3:70.20removal of restrictions, §3:70.25


IN-108

STAND-BY CREDITScash substitute, as, §13:30.30(1)(a)compliance with terms, strict (conventional law) –

basic rule, §13:30.30(3)(a)

equitable considerations, §13:30.30(3)(b)compliance with terms, strict (UIGLC Act) –

basic rule, §13:30.30(3.5)(a)

equitable considerations, §13:30.30(3.5)(b)conflicts of laws, and, §13:30.130confirmation of, §13:30.40(2)

customs affecting, §13:30.20documentary credit distinguished, §13:30.20(1)documents, dealing in –

conventional law, §13:30.30(2)

UIGLC Act, §13:30.30(2.5)excessive demand, §13:30.50(2.5)expiration, §13:30.40(6)

forgery of material document, §13:30.80(2)fraud, and (conventional law) –

Canadian case law, §13:30.70(2)

generally, §13:30.70indaquacy of ISP98, §13:30.70(1)independence of credits, and, §13:30.70(4)

injunctive relief, §13:30.70(5)misapplication of UCP 500/600, §13:30.70(1)security intent, relevance of, §13:30.70(4)(b)UCP500 misapplication of, §13:30.70(1)

UNCITRAL Convention on, §13:30.70(2)underlying transaction, relevance of, §13:30.70(1)

fraud, and (UIGLC Act) –

beneficiary, by, §13.30.75(2)(c)falsified documents, §13:30.75(2)(b)generally, §13:30.75

genuineness, §13:30.75(2)(a)illegality, §13:30.75(2)(d)injunctive relief, §13:30.75(2)(f)interpretation, §13:30.75)(2)

illegality of underlying transaction, §13:30.80(1)independence, principle of (conventional law) –

applicant and beneficiary, between, §13:30.30(1)(b)

beneficiary and issuer, between, §13:30.30(1)(a)independence, principle of (UIGLC Act) –

definitions, §13:30.30(1.5)(b)

obligations of issuer, §13:30.30(1.5)(a)injunctive relief, availability of, §13:30.75(2)(f)insolvency of parties –

applicant, §13:30.120(2)beneficiary, §13:30.120(3)issuer, §13:30.120(1)

INDEX

IN-109 June 2013

STAND-BY CREDITS — continuedInternational Stand-by Practices. See ISP98, infrainterpretation of terms, §13:30.40irrevocability of, §13:30.40(1)

ISP98 –application, §13:30.20(3)(b)history and general, §13:30.20(3)(a)

inadequacy of, §13:30.70(1)issuing bank’s insolvency, §13:30.120(1)lease transactions, in, §13:30.70(3)(a)

legal foundations of –common law cases, §13:30.10international texts, §13:30.20UIGLC Act, §13:30.20(4)(c)

mistake, §13:30.80(3)partial drawings, §13:30.40(4)payment –

enjoining, §13:30.50(4), §13:30.50(5)obtaining, §13:30.50set-off by issuer, §13:30.50(2)

place for presentment, §13:30.40(5)reimbursement of issuer, §13:30.100, §13:30.110rent claims, §13:30.70(3)(a)

revocability, §13:30.40(1)set-off by issuer, §13:30.50(2)strict compliance, §13:30.30(3), §13:30.30(3.5)termination, §13:30.40(6)

transferability of, §13:30.40(3)UCP 500/600 –

application of, §13:30.20(1)(b)

history and general, §13:30.20(1)(a)misapplication of, §13:30.70(1)

UNCITRAL Convention, §13:30.20(4)

adoption in Canada, §13:30.20(4)(c)application of, §13:30.20(4)(b)history and general, §13:30.20(4)(a)

Uniform Independent Guaranties and Letters of Credit Act –

adoption in Canada, see also UNIFORM INDEPENDENT GUARANTIESAND LETTERS OF CREDIT ACT

generally, §13:30.20(4)(c)

Uniform Rules for Demand Guarantees –application, §13:30.20(3)(b)history and general, §13:30.20(3)(a)

URDG. See Uniform Rules for Demand Guarantees, infra

STATEMENT OF ACCOUNT, see also DEPOSIT (BANK)customer’s duty to examine, §9:20.30(3)(d)

customer’s duty to report perceived irregularities, §9:20.30(3)(d)(iii)verification agreement. See ACCOUNT VERIFICATION AGREEMENT

IN-110


STATISTICS

ACSS usage, §1:10.10derivatives trading, §18:10.30electronic commerce, §16:20.10(1)(a)(ii)

LVTS usage, §1:10.20payments systems of Canada, §1:10USBES usage, §1:10.30

STOP-PAYMENT OF CHEQUE. See COUNTERMAND OF CHEQUE

SUM CERTAINTY

exchange, indicated rate of, §22:70.30

formal requirements, §22:20.60generally, §22:70instalments. See INSTALMENT PAYMENTSinterest. See INTEREST ON BILL OR NOTE

promissory notes, in, §35:10.40(6)statutory aids, §22:70.10words and figures different, §22:70.50

SUM LIMIT ($25 MILLION)

cheque for ACSS exchange, §11:20.60(3)(a), §34:20.100

SUMMARY JUDGMENT ON BILL OR NOTE

conditions precedent, §26:40.10current practice, §26:40.10(3)defences available, §26:40.10(2)

traditional approach, §26:40.10(2)unliquidated claims and, §26:40.10(1)

SUNDAY. See NON-BUSINESS DAY/NON-JURIDICAL DAY

SWAPCLEAR

clearing and settlement in, §18:40.30corporate status, §18:40.10designation under PCSA, §18:40.20

S.W.I.F.T., see also CREDIT TRANSFERS

legal effect of MT103 messages, §16:20.10(2)(b)LVTS messages by, §12:30.10(2)

member administered closed user groups, §16:20.10(2)(b)

SYSTEMIC RISK

Bank of Canada oversight of, §7:50.30, §7:50.80definition of, §7:50.10(1)

designation of systems to avert, §7:50.40(1), §7:50.40(2), §7:50.40(6)benefits of, §7:50.40(3)(a)burdens of, §7:50.40(3)(b)

challenge of, §7:50.40(4)criteria, §7:50.40(2)foreign systems, and, §7:50.40(6)

legislative history, §7:50.05(1)

INDEX

IN-111 November 2015

SYSTEMIC RISK — continuedPayment Clearing and Settlement Act, and, §7:50.05(3)rationale for control of, §7:50.05(2)

TASK FORCE FOR PAYMENTS SYSTEM REVIEW

analysis and commentary, §7:30.25(7)generally, §7:30.25government response, §7:30.25(3)

implementation proposals, §7:30.25(6)major findings, §7:30.25(4)mandate, §7:30.25(1)

NFC Reference Model, §7:30.25(3.5)(a)policy recommendations, §7:30.25(5)reports, §7:30.25(2)

TAX SHELTER NOTES

deemed payment, §1:30.65discharge by default of developer, §1:30.60(3)(a), §1:30.60(3)(c)

TECHNICAL STANDARDS

Bolero, §16:20.10(2)(c)(i)EDI message standards, §16:20.10(2)(a)single-instance payments, for, §16:20.10(2)

S.W.I.F.T. standards, §16:20.10(2)(b)TradeCard, §16:20.10(2)(c)(ii)

TELE-CHEQUES

CPA policy against, §11:20.60(3)(a)definition of, §11:20.70(1)(f)(iv)return through ACSS, §11:20.70(1)(f)(iv)

TELPAY. See BILL PAYMENT SERVICES

TERMS OF DEPOSIT

agreement of parties, §9:30.30(1)conditional repayment of, §9:30.30(1)(a)(iii)

demand, §9:30.30(1)(a)(i)generally, §9:30.30interest on, §9:30.30(1)(b)(i)

market-related return on, §9:30.30(1)(a)(ii)perpetual, §9:30.30(1)(a)(iii)repayment terms, §9:30.30(1)(a)time certain, §9:30.30(1)(a)(ii)

TERRORIST FINANCING

FINTRAC reports of, §3:80generally, §3:70.30, see also ECONOMIC SANCTIONS

TIME CERTAINTY

acceleration, §22:50.30(4)alternative times expressed, §22:50.10(3), §22:50.30(2)

antedated items, §22:60.20


IN-112

TIME CERTAINTY — continuedbarter, when received in, §1:30.50(2)(d)cheque. See FINALITY OF PAYMENTcollateral security, when held as, §1:30.50(2)(b)

days of grace. See DAYS OF GRACEdelayed demand, §22:50.30(3.5), §35:60.10(1.5)demand after future date, §22:50.30(3.5)

demand, when payable on, §22:50.10, §22:50.10(1)formal requirements generally, §22:50.20inconsistent alternatives, §22:50.10(3)

limitation period, commencement of, §28:110no time expressed, when, §22:50.10(2)on or before date, §22:50.30(3)post-dated items, §22:60.30

precise hour, reference to, §22:50.30(1)reckoning, method of, §21:40.40, §22:50.50remittance instrument, §1:30.50(2)(e)

renewal, effect of right of, §1:30.50(2)(c)sight, meaning in Canadian law, §22:50.10(1)time of day, §22:50.30(1)

uncertain future time, §22:50.20undated items, §22:60.10

TIME LIMITS FOR RETURNS – ELECTRONIC ITEMS

direct deposits, §11:20.70(2)(a)(ii)generally, §11:20.70(2)pre-authorized debits, §11:20.70(2)(a)(i)unreturnable items, §11:20.70(2)(d)

TIME LIMITS FOR RETURNS – PAPER ITEMS

contingency situations, in, §11:20.70(1)(g)default conditions, in, §11:20.70(1)(h)

exceptional cases, §11:20.70(1)(f)(iv)normal conditions, §11:20.70(1)(f)outside the exchanges, §11:20.70(1)(f)(i)

TIME OF PAYMENT OF CHEQUE. See FINALITY OF PAYMENT

TOKENS OF VALUE

money, as, §4:10.20(1)

TRACING MONEY

common law, at. See TRACING MONEY – COMMON LAWequity, in. See TRACING MONEY – EQUITABLEintroduction and scope of commentary, §3:20.50(2)(a)

presumptions and fictions, §3:40.10(3)(g)(iii)statutory. See TRACING MONEY – STATUTORYtypes of, §3:20.50(2)(b)

value, tracing, §3:40.10(3)(g)(ii)

INDEX


TRACING MONEY – COMMON LAW

ad hoc fiduciary relationships, and, §3:30.40(2)advantages of, §3:30.30confusion of concepts, §3:30.40(3)

defences, §3:30.20fiduciary relationship, whether required, §3:30.40generally, §3:30

proceeds of crime or fraud, §3:30.40(1)summary, §3:30.40(4)

TRACING MONEY – EQUITABLE

defences –adequacy of common law rule, §3:40.10(4)(a)bona fide purchase, §3:40.10(4)(d)(i)change of position, §3:40.10(4)(d)(ii)

equitable result, §3:40.10(4)(c)generally, §3:40.10(4)insolvency of defendant, §3:40.10(4)(b)

juristic reason, absence of –analysis of origins, §10:10.70(2)(a)application of, §10:10.70(2)(c)(i)

commercial good conscience, and, §10:10.70(2)(c)(iv)definition of, §10:10.70(2)(b)examples of, §10:10.70(2)(c)(ii)

Garland v. Consumers Gas, §10:10.70(2)(c)generally, §3:40.10(4)(d)(iii)‘‘just debt owed’’, §10:10.70(2)(c)(iv)mistaken payments, §10:10.70(2)(c)(iii)

summary and conclusion, §10:10.70(2)(c)(vii)pre-requisites of –

equitable property right –

generally, §3:40.10(3)gift, disputed, §3:40.10(3)(e)mistaken payments, §3:40.10(3)(b)

pre-existing, §3:40.10(3)(a)proceeds of theft, §3:40.10(3)(d)reasonable expectation of, §3:40.10(3)(f)



IN-112.2

TRACING MONEY – EQUITABLE — continuedpre-requisites of — continued

equitable property right — continuedvoidable loans, §3:40.10(3)(c)

fiduciary relationship –invented ad hoc, §3:40.10(2)pre-existing, §3:40.10(1)

generally, §3:40.10identification of property –

fact, question of, §3:40.10(3)(g)(i)

funds transfer systems, effect of, §3:30.10(3)(g)(ii)generally, §3:40.10(3)(g)presumptions and fictions, §3:40.10(3)(g)(iii)value, tracing of, §3:40.10(3)(g)(ii)

trust, §3:40.10(1)summary and conclusion, §3:40.10(3)(f)(iv)

TRACING MONEY – STATUTORY

creditors and purchasers, §3:05.50(2)debtor-initiated –

EFTs, §3:05.50(3)

other forms of transfer, §3:05.50(4)deemed trust funds, §3:50.20(2)employee deductions, §3:50.20(2)

generally, §3:50holder of money, §3:05.50(1)Income Tax Act, §3:50.20Personal Property Security Acts –

common law or equitable rules –application of, §3:50.10(2)defences, of, §3:50.10(4)

modification of, §3:50.10(3)generally, §3:50.10‘‘identifiable or traceable’’, meaning of, §3:50.10(1)

TRADE CARD, §16:20.10(2)(c)(ii)

TRADING STAMPS

money, as, §4:10.20(2)

TRANSACTIONAL VALIDITY OF BILL, CHEQUE OR NOTE

authority to sign. See AUTHORITY TO SIGN BILL, CHEQUE OR NOTEcapacity to contract. See CAPACITY OF PARTIES TO BILL, CHEQUE ORNOTE

contract defences, availability of, see also DEFENCES TO LIABILITY ON BILL,CHEQUE OR NOTEgenerally, §26:30.50

delivery. See DELIVERY OF BILL, CHEQUE OR NOTEgenerally, Chapter 23promissory notes, of, §35:20

INDEX

IN-113 August 2015

TRANSACTIONAL VALIDITY OF BILL, CHEQUE OR NOTE — continuedvaluable consideration, see also CONSIDERATION FOR BILL, CHEQUE ORNOTEgenerally, §23:70

TRANSFER OF BILL, CHEQUE OR NOTE AFTER DISHONOUR


TRANSFER OF BILL, CHEQUE OR NOTE AFTER MATURITY/

DISHONOUR

dishonoured items, §25:60.20generally, §25:60

meaning of 21:20.50(7)overdue, when bill or note –

cheque and demand bill, §25:60.10(4)demand note, §25:60.10(3)

interest on time bill, §25:60.10(2)time bill, §25:60.10(1)

post-maturity, §25:60.10

TRANSFER OF BILL, CHEQUE OR NOTE BY DELIVERY

instrument payable to bearer –generally, §25:40.20

warranies of transferor, §25:40.20(1)instrument payable to order –


liability of transferor, §25:40.10(1)rights of assignee, §25:40.10(2)legal effect, §25:40.10(1)with endorsement. See ENDORSEMENT OF BILL, CHEQUE OR NOTE

without endorsement. See TRANSFER OF BILL, CHEQUE OR NOTEWITHOUT ENDORSEMENT

liability of transferor, §28:80

meaning of, §21:20.50(7)

TRANSFER OF BILL OR NOTE BY ENDORSEMENT. See NEGOTIATION OF

BILL, CHEQUE OR NOTE

TRANSFER OF BILL, CHEQUE OR NOTE BY OTHER MEANS

generally, §25:50.10investment security, as, §25:50.20Securities Transfer Act transfer, §25:50.30

TRANSFER OF BILL, CHEQUE OR NOTE WITHOUT ENDORSEMENT

bearer, items payable to –generally, §25:40.20

warranties by transferor, §25:40.20(1)generally, §25:50.10liability of transferor, §25:40.20(3)

order, items payable to –assignee’s rights, §25:40.10(2)


IN-114

TRANSFER OF BILL, CHEQUE OR NOTE WITHOUT ENDORSEMENT —continued

order, items payable to — continuedgenerally, §25:40.10

legal effect, §25:40.10(1)repudiation, §25:40.20(2)


INDEX

IN-114.1 August 2015

TRANSFERRED FIDUCIARY OBLIGATION

Bank Act, s. 437(3), §9:50.40(6)deposit, with respect to. See TRUST OF DEPOSITgenerally, §9:50.40,

knowing assistance, §9:50.40(5)(a)knowing receipt, §9:50.40(5)(b)summary of law, §9:50.40(2)

Supreme Court decisions, §9:50.40(3)trustee de son tort, §9:50.40(4)

TRUST ACCOUNT. See TRUST OF DEPOSIT

TRUST AND LOAN COMPANY

‘‘bank’’ for certain purposes, §34:20.50banking by, §78:20.30(3)C.P.A. membership of, §6:30.20(1)(b)

TRUST OF DEPOSIT

Bank Act provisions, §9:30.20bank agreement to act as trustee, §9:20.30

express agreement by bank, §9:30.20Quistclose trust, §3:20.50(1)segregated funds, §3:20.50(1)

UCP500; UCP600. See UNIFORM CUSTOMS AND PRACTICES FOR

DOCUMENTARY CREDITS

UIGLC ACT. See UNIFORM INDEPENDENT GUARANTIES AND LETTERS

OF CREDIT ACT

UNAUTHORIZED SIGNATURE

forged signature. See FORGED SIGNATUREgenerally, §23:40.20

preclusion to deny, §23:40.40ratification of, §23:40.50

UNCITRAL

Convention on Stand-By Credits, §13:30.20(4), §13:30.70(2)Model Law on Electronic Commerce, §16:60.10(3)(b)Model Law on International Credit Transfers, §16:60.10(3)(a)

UNDUE INFLUENCE

defence to liability on bill or note, §26:30.40(4)(b)

UNIFORM CUSTOMS AND PRACTICES FOR DOCUMENTARY CREDITS

generally, §13:30.20(1)

UNIFORM INDEPENDENT GUARANTIES AND LETTERS OF CREDIT ACT

adoption in Canada, history of, §13:30.20(4)(c)(i)application, §13:30.20(4)(c)(ii)

conflicts of laws rules, §13:30.130(2)Crown, binding on, §13:30.30(4.5)(c)defences to honour, §13:30.50

INDEX

IN-115 November 2015

UNIFORM INDEPENDENT GUARANTIES AND LETTERS OF CREDIT ACT

— continueddefinitions, §13:30(1.5)(b)documents, dealing in, §13:30.30(2.5)

equitable considerations, §13:30.30(3.5)(b)fraud, and, §13:30.75good faith, duty of, §13:30.30(5.5)

history and general, §13:30.20(4)(c)(i)interpretation of undertakings, §13:30.40internationality, §13:30.30(4.5)(b)

preventing payment under, §13:30.50(5)reimbursement of issuer, §13:30.110strict compliance, §13:30.30(3.5)

UNIFORM RULES FOR COLLECTIONS


UNIFORM SECURITIES TRANSFER ACT. See SECURITIES TRANSFER ACT

UNITED NATIONS ACT

economic sanctions, and, §3:70.10freezing bank accounts, and, §9:40.90(1.5)(b)

USBES. See US DOLLAR BULK EXCHANGE SYSTEM

US DOLLARS

national domestic clearing of payments in. See US DOLLAR BULK EXCHANGESYSTEM

legal proceedings claiming sum denominated in, §2:20.40(2)(b)

US DOLLAR BULK EXCHANGE SYSTEM

ACSS, not part of, §11:30.10clearing and settlement in, §11:30.80

default by member in, §11:30.90electronic items, §11:30.20(2)(c)exchange of items –

electronic items, §11:30.70(2)encoding errors, §11:30.70(1)generally, §11:30.70

national electronic bulk exchange, §11:30.30paper items, §11:30.70(1)points of exchange, §11:30.30

generally, §11:30

items acceptable for exchange –electronic items, §11:30.60(2)generally, §11:20.60(1)(e), }11:30.60paper items, §11:30.60(1)

legal foundations of, §11:30.40legal relations of participants and public, see also LEGAL RELATIONS OF ACSS

PARTICIPANTS AND PUBLICgenerally, §11:50


IN-116

US DOLLAR BULK EXCHANGE SYSTEM — continuedparticipation –

clearing agents, §11:30.50(2)direct clearers, §11:30.50(1)

exchange agents, §11:30.50(1)generally, §11:30.50indirect clearers, §11:30.50(2)

point-of-entry offices, §11:30.30proper law of items, §11:30.20(2)(a)organization, §11:30.30

returned items, §11:30.70(1)(c)scope of application –

electronic items, §11:30.20(2)(c)generally, §11:30.20(2)

paper items in Canada, §11:30.20(2)(a)paper items in USA, §11:30.20(2)(b)

terminology, §11:30.20(1)

USURIOUS CONSIDERATION

effect of s. 58 BEA, §24:50.10history of section, §24:50.20

meaning of usury, §24:50.30repeal of s. 58?, §24:50.40

VALUABLE CONSIDERATION. See CONSIDERATION FOR BILL, CHEQUE

OR NOTE

VALUE

bank credit as, §24:20.10(2)consideration compared, §24:20.20(1)

defined, §24:20.10holder for. See HOLDER FOR VALUEpresumption of, §24:30.50(1)

recital in bill, cheque or note, §22:80.10

VERIFICATION AGREEMENT. See ACCOUNT VERIFICATION

AGREEMENT

VIRTUAL CURRENCY

Bitcoins, §4:50.20criminal usage, §4:50.30(2)(c)definition of, §4:50.30(2)(e)

introduction, §4:50.10proposed regulation of, §4:50.30

VISA DEBIT

generally, §14:10.10(2)(b)international debit card service, §14:50.40

WRONGFUL DISHONOUR

cheque, §10:10.80credit card, failure by issuer to honour, §10:10.80

INDEX

IN-117 May 2016

ZERO LIABILITY POLICIES

Interac Online, §16:30.40(1.5)(a)

ZOOMPASS

legal relations, §14.5:60.10(3)

regulation of, §14.5:60.10(2)system description, §14.5:60.10(1)


IN-118

index...

Documents