SOR-2016-283 Canadian Payments Association By-law No. 2 — Finance

The Board must calculate common services dues and transaction fees for a fiscal year on the basis of the Association’s operating budget and capital expenditures budget for the fiscal year that the Board prepares under subsection 22(1) of the Canadian Payments Act.

For the purpose of determining the common services dues and transaction fees payable for a fiscal year, the operating budget and capital expenditures budget for the fiscal year must specify common services costs and direct operating costs.

The Board, in establishing the operating budget and capital expenditures budget for a fiscal year, may include amounts for reserves in the Association’s costs.

If the Board makes a significant amendment to the operating budget or capital expenditures budget for a fiscal year, it must adjust the common services dues and transaction fees payable for the fiscal year on the basis of that amendment.

The Board must provide notice to members and participants at least 60 days before making an adjustment to common service dues and transaction fees under subsection (1).

A new member, other than an amalgamated member or a member that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act, must, in respect of its first year of membership, pay the full amount of the common services dues for the fiscal year in which it became a member.

An amalgamated member formed in a fiscal year must pay the common services dues, transaction fees and service fees for the fiscal year in an amount that is the sum of all the combined unpaid common services dues, transaction fees and service fees of the members and non-members that were amalgamated or merged.

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

For each fiscal year, each member must pay dues in respect of the common services costs, in an amount determined in accordance with the formula A/B where A is the amount estimated to be the costs, for the Association, of providing the services that are of equal benefit to all of the members, as determined by the Board in the previous fiscal year; and B is the estimated number of members on the first day of the fiscal year, as determined by the Board in the previous fiscal year.

The Board must, no later than the day that is eight months before the first day of a fiscal year,

If, after the end of a fiscal year, the total amount of common services dues collected is greater than the actual costs, for the Association, of providing the services that are of equal benefit to all of the members, the Board may allocate the surplus to a research and development reserve fund, subject to a maximum amount established for the fiscal year by the Board.

Each participant in a system must pay a fee in respect of each of its transactions in the system.

For each fiscal year, the Board must determine the transaction fees for each system on the basis of the estimated costs, for the Association, to operate that system and one of, or both of, the following:

The Board, in deciding whether to select paragraph (2)(a) or (b), or both, must consider, in respect of a particular system, the nature of the system, the number of participants and the number and value of transactions by each participant.

The Board’s estimate of a system’s operating costs under subsection (2) must take into account, among other things,

In paragraph (4)(d), fee-stabilizing charge means a charge intended to account for minor variations between the estimates referred to in subsection (2) of a system’s operating costs and of the number and value of transactions and the actual values of those items.

The Board must, no later than the day that is eight months before the first day of a fiscal year,

If a participant withdraws from participation in a system in a fiscal year, and the President determines that reserves or surplus for the fiscal year are not sufficient to make up for any resulting loss in transaction fees, the President must adjust the transaction fees payable for the fiscal year.

The President must provide notice to participants at least 15 days before making an adjustment to transaction fees under subsection (7).

Common services dues are payable by a member on or before the first day of each fiscal year or, if another date is established by the Board under subsection (3), by that date.

Transactions fees are payable by a participant for each preceding three-month period, within 15 days after an invoice is issued or, if another date is established by the Board under subsection (3), by that date.

For the purposes of operational efficiency, the Board may establish dates on which common services dues or transaction fees are payable other than those mentioned in subsection (1) or (2).

In addition to any other action that may be taken under another by-law, a member, participant or other person that fails to pay common services dues, transaction fees or service fees on or before the day on which they are due must pay interest, at a rate of not more than 0.125% of the amount payable for each day that the payment is overdue, calculated in accordance with the method set out in a resolution of the Board.

The amount of any interest paid under this By-law accrues to the general revenue of the Association.