INDEX ACCEPTANCE FOR HONOUR generally, §30:20.20 intervention, 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, §23:20.30 conditional, §22:90.60(2) defined, §21:20.10, §22:90.10 delivery of, §22:90.20 dishonour by refusal of, §27:20.40 draft distinguished, §21:20.10 drawee, by, §22:90.30 forged, §23:40.30, §23:40.70(3) formalities of, §22:90, §22:90.40 forms of. See FORMS OF ACCEPTANCE OF BILL honour, for. See ACCEPTANCE FOR HONOUR limitation period on bank’s liability on, §28:110.10 meaning of term, §21:20.10, §22:90.10 notification of, §22:90.20, §23:20.30 partial, §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, }27:20 place for, §27:20.10(1) requisites of due, §27:20.20 when required, §27:20.10 qualified, §22:90.60(1), §27:20.50 recovery of money paid on forgery of, §23:70.40 signature, mere, §22:90.40 signature omitted, §22:90.30(3) supra protest, §30:20.20 tenor of, §28:30.10 time of, §22:90.50 trade, meaning of term, §22:20.10 types of, see also FORMS OF ACCEPTANCE OF BILL generally, }22:90.60 IN-1 November 2015
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INDEX
ACCEPTANCE FOR HONOUR
generally, §30:20.20intervention, conditions for effective, §30:30.10
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 –
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
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)
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)
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 –
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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
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
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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
generally, §22:10.50
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
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 –
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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
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)
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)
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
IN-18.3 November 2015
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)
(The next page is IN-19)
IN-18.4
THE LAWOF BANKINGANDPAYMENT INCANADA
CAPACITY OF PARTIES TO BILL, CHEQUE OR NOTE — continuedincapacity, defence of — continued
effect on other parties — continuedother parties, §23:30.60(2)
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 –
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
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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 –
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 –
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)
‘‘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)
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)
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)
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)
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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)
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
IN-41 September 2016
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)
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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 –
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
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)
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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)
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
THE LAWOF BANKINGANDPAYMENT INCANADA
FICTITIOUS PAYEE OF BILL, CHEQUE OR NOTE — continuedhistorical perspective, §22:40.30(8.5)intention of drawer –
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
generally, §9:40.90
IN-64
THE LAWOF BANKINGANDPAYMENT INCANADA
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
THE LAWOF BANKINGANDPAYMENT INCANADA
HOLDER IN DUE COURSE — continuedagreement giving status, §24:30.90
(The next page is IN-67)
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)
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
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
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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
‘‘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
IN-79 September 2016
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
generally, §9:40.30
MOBILE PHONE DEPOSITS
corporate and government customers, §34:25.30(4)(a)generally, §14.5:70, §34:25.30(4)
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 –
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
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)
THE LAWOF BANKINGANDPAYMENT INCANADA
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
IN-91 September 2016
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
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
THE LAWOF BANKINGANDPAYMENT INCANADA
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
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)
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
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)
generally, §28:90.30
IN-102
THE LAWOF BANKINGANDPAYMENT INCANADA
REFEREE IN CASE OF NEED
generally, §30:20.10
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
(The next page is IN-103)
INDEX
IN-102.1 September 2016
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)
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)
change of position, §3:30.20(2), §3:40.10(4)(d)(ii)
THE LAWOF BANKINGANDPAYMENT INCANADA
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)
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)
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
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
generally, §25:60.20
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 –
generally, §25:40.10
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)
THE LAWOF BANKINGANDPAYMENT INCANADA
IN-114
TRANSFER OF BILL, CHEQUE OR NOTE WITHOUT ENDORSEMENT —continued
order, items payable to — continuedgenerally, §25:40.10
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)