Canadian Payments Association By-Law No. 2 — Finance

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2003-175/FullText.html

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Canadian Payments Association By-Law No. 2 — Finance

SOR/2003-175CANADIAN PAYMENTS ACT
Registration 2003-05-15
Canadian Payments Association By-Law No. 2 — Finance
P.C. 2003-688  2003-05-15The Board of Directors of the Canadian Payments Association, pursuant to subsection 18(1)Footnote a of the Canadian Payments ActFootnote b, hereby makes the annexed Canadian Payments Association By-law No. 2 — Finance.

Return to footnote aS.C. 2001, c. 9, s. 233
Return to footnote bS.C. 2001, c. 9, s. 218

Ottawa, December 16, 2002
Whereas the annexed Canadian Payments Association By-law No. 2 — Finance, made by the Board of Directors of the Canadian Payments Association, has been approved, in accordance with subsection 18(3) of the Canadian Payments ActFootnote b, by the members of the Association;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 18(2) of the Canadian Payments ActFootnote b, hereby approves the annexed Canadian Payments Association By-law No. 2 — Finance, made by the Board of Directors of the Canadian Payments Association.Interpretation

Marginal note:Definitions

1 The following definitions apply in this By-law.

ACSS
SACR

ACSS means the automated clearing and settlement system established in connection with By-law No. 3. (SACR)

Act
Loi

Act means the Canadian Payments Act. (Loi)

amalgamated member
membre fusionné

amalgamated member means a member formed by the amalgamation or merger of members or of members and non-members. (membre fusionné)

By-law No. 3
Règlement administratif no 3

By-law No. 3 means By-law No. 3 — Clearing By-law, published in the Canada Gazette, Part I, on January 15, 1983, as amended by the By-law Amending By-law No. 3 — Clearing By-law, published in the Canada Gazette, Part I, on April 18, 1998. (Règlement administratif no 3)

By-law No. 7
Règlement administratif no 7

By-law No. 7 means By-law No. 7 Respecting the Large Value Transfer System. (Règlement administratif no 7)

development costs
coûts de développement

development costs means the costs incurred by the Association to develop or to facilitate the development of a system. (coûts de développement)

direct operating costs
coûts directs d’exploitation

direct operating costs mean the costs incurred by the Association to operate a system. (coûts directs d’exploitation)

indirect costs
coûts indirects

indirect costs means the overhead costs of the Association. (coûts indirects)

LVTS
STPGV

LVTS means the Large Value Transfer System as defined in section 1 of By-law No. 7. (STPGV)

LVTS participant
participant au STPGV

LVTS participant means a participant as defined in section 1 of By-law No. 7. (participant au STPGV)

system
système

system means the ACSS, the LVTS or any other clearing and settlement system, payment system or system or arrangement established or operated by the Association. (système)

Budgets

Marginal note:Dues based on budgets

2 (1) The Board shall calculate and impose dues on members for a fiscal year on the basis of the operating and capital budgets for that fiscal year that it prepares under subsection 22(1) of the Act.

Marginal note:Contents of budgets

(2) For the purpose of determining the amount of dues payable by a member for a fiscal year, the operating and capital budgets of the Association for that fiscal year must identify gross and net direct operating costs, indirect costs and development costs.

Marginal note:Reserves

(3) The Board, in establishing the Association’s operating and capital budgets for any fiscal year, may include amounts for reserves in its costs.

SOR/2015-185, s. 19.
Previous Version

Marginal note:Changes to budgets

3 If the Board amends the operating or capital budget for a fiscal year, it shall adjust the dues payable for that fiscal year on the basis of the amendment.
SOR/2015-185, s. 20.
Previous Version

Dues

Marginal note:First year of membership

4 (1) A new member, other than an amalgamated member, shall, in respect of its first year of membership, pay $10,000 in dues for the period starting on the day that its membership became effective and ending on the last day of the fiscal year in which the member joined.

Marginal note:Change of name

(2) For greater certainty, a member that changes its name, other than as part of a merger or amalgamation, is not a new member.

Marginal note:Direct operating costs — dues for ACSS

5 After the first year of membership, each member that exchanges payment items under By-law No. 3 in a fiscal year shall pay dues for that fiscal year in respect of the direct operating costs for the ACSS in an amount determined in accordance with the formula

A × [(B-C) /D]
where


is the amount of the Association’s net direct operating costs for the ACSS set out in the operating and capital budgets for that fiscal year;


is the sum of the number of payment items that the member sent to other members under By-law No. 3 in the previous fiscal year and the number of payment items that the member received from other members under By-law No. 3 in the previous fiscal year;


is the number of payment items referred to in B that the member sent and received on behalf of other members under By-law No. 3 in the previous fiscal year; and


is the sum of the number of payment items that all members sent to other members under By-law No. 3 in the previous fiscal year and the number of payment items that all members received from other members under By-law No. 3 in the previous fiscal year.

Marginal note:Direct operating costs — dues for LVTS

6 After the first year of membership, each member that is an LVTS participant in a fiscal year shall pay dues for that fiscal year in respect of the direct operating costs for the LVTS in an amount determined in accordance with the formula

E × F/G
where


is the amount of the Association’s net direct operating costs for the LVTS set out in the operating and capital budgets for that fiscal year;


is the sum of the number of payment items that the member sent to other LVTS participants through the LVTS in the previous fiscal year and the number of payment items that the member received from other LVTS participants through the LVTS in the previous fiscal year; and


is the sum of the number of payment items that all LVTS participants sent to other participants through the LVTS in the previous fiscal year and the number of payment items that all LVTS participants received from other participants through the LVTS in the previous fiscal year.

Marginal note:Member for portion of year

7 If a member was a member for only a portion of the previous fiscal year, the President shall, for the purposes of sections 5 and 6, estimate the number of payment items that the member sent and received through the applicable system for the previous fiscal year by multiplying by 12 the member’s average monthly number of payment items sent and received through the system in the previous fiscal year.
SOR/2010-43, s. 52.
Previous Version

Marginal note:Indirect costs

8 After the first year of membership, each member shall pay dues in a fiscal year in respect of indirect costs in an amount determined in accordance with the formula

H × I/J
where


is the amount of the Association’s net indirect costs as set out in the operating and capital budgets for that fiscal year;


is the member’s dues for the direct operating costs in that fiscal year; and


is the sum of the dues payable by all the members for the direct operating costs in that fiscal year.

Marginal note:Development costs

9 (1) Subject to subsection (2), after the first year of membership, each member shall pay dues in a fiscal year in respect of development costs in an amount determined in accordance with the formula

K × L/M
where


is the amount of the Association’s net development costs as set out in the operating and capital budgets for that fiscal year;


is the member’s dues for the direct operating costs in that fiscal year; and


is sum of the dues payable by all the members for the direct operating costs in that fiscal year.

Marginal note:Alternate method of calculation

(2) If the Board determines, taking into account the nature of the system being developed, the number of members involved in the development of the system, the extent of their involvement and the number of members who will benefit from the system, that it is inequitable to apply the formula set out in subsection (1) in a fiscal year, each member shall pay dues based on one of the following methods as specified by the Board:

(a) dues based on the formula set out in subsection (1), except that L and M include only the dues payable in that fiscal year for the direct operating costs of the system most closely related to the system being developed;
(b) an equal share of the development costs for that fiscal year.

Marginal note:Dues payable only by group of members

(3) Despite the requirement in subsections (1) and (2) that each member pays dues in respect of development costs, if the Board determines, taking into account the criteria referred to in subsection (2), that it is equitable for only a group of members to pay dues in respect of development costs, only that group of members shall pay the dues and the method of calculating the dues is adjusted accordingly.

Marginal note:Amalgamated member

10 (1) An amalgamated member formed in a fiscal year shall pay dues for that fiscal year in an amount that is the combined unpaid dues of the members who were amalgamated or merged.

Marginal note:Dues in following fiscal year

(2) In the following fiscal year, the amalgamated member shall pay dues based on the sum of the number of payment items that the amalgamated member and the members that were amalgamated or merged sent and received through the relevant system in the fiscal year of the amalgamation or merger.

Marginal note:Minimum dues

11 Despite sections 5 to 10, if the amount of dues payable by a member for its share of indirect costs is less than $10,000 in a fiscal year, the member shall pay the minimum dues of $10,000 for that fiscal year, which dues are the total dues payable by the member for all costs for that fiscal year.

Marginal note:Days payable

12 (1) Members shall pay their dues in equal instalments on the following days or, if other days are specified by the Board under subsection (2), on those other days:

(a) the first day of each month, for dues in respect of direct operating costs for the LVTS; and
(b) January 1 and July 1, for all other dues.

Marginal note:Other days

(2) The Board may, for the purposes of operational efficiency, establish days other than those specified in paragraphs (1)(a) and (b) on which members shall pay their dues.

Marginal note:Reimbursement and unpaid dues

13 A member that ceases to be a member or withdraws from participation in a system

(a) is not entitled to a reimbursement of dues that have been paid; and
(b) continues to be liable for unpaid dues if the date payable for those dues occurred before the member ceased to be a member or withdrew.

Marginal note:Reassessment of dues

14 (1) If a member ceases to be a member or withdraws from participation in a system in a fiscal year and the President determines that any resulting loss in dues will not be covered by reserves or surplus in that fiscal year, the President shall reassess the dues payable in the fiscal year by the remaining members or the members that still participate in the system, as the case may be, based on those members’ proportionate share of the shortfall.

Marginal note:Duty to pay

(2) The remaining members or the members that still participate in the system, as the case may be, shall pay dues, reassessed under subsection (1), within 30 days after the notice of the reassessed dues is issued.

SOR/2010-43, s. 53.
Previous Version

Fees

Marginal note:Services provided

15 (1) The fees to be paid for services performed by or on behalf of the Association for the benefit of a member or other person are the Association’s costs in providing the services.

Marginal note:Payment

(2) The fees are payable within 30 days after the invoice for the services has been issued.

Penalties

Marginal note:Penalty for non-payment

16 (1) In addition to any other action that may be taken under another by-law, a member that fails to pay dues or fees on the day on which the dues or fees are payable shall pay a penalty, calculated in accordance with a resolution of the Board, which penalty shall not exceed 0.125% of the amount payable for each day that the payment is overdue.

Marginal note:General revenue

(2) The amount of any penalty paid under this By-law accrues to the general revenue of the Association.

SOR/2010-43, s. 54(F).
Previous Version

Repeals

Marginal note:By-law No. 2

17 [Repeal]

Marginal note:By-law No. 5

18 [Repeal]

Coming into Force

Marginal note:Coming into force

19 This By-law comes into force on the day on which it is registered.