SOR-2026-133 Canadian Payments Association By-law No. 10 — RTR

The following definitions apply in this By-law.

For the purposes of paragraph 34(d), section 35, subsection 40(3) and paragraph 41(1)(a), a reference in the provision to the participant’s settlement account is to be read as a reference to the settlement account of its settlement agent if the participant is an indirect settlement participant.

This By-law applies to the exchange of RTR payment messages and the clearing and settlement of RTR payment obligations in the RTR system.

Each participant must comply with the provisions of this By-law and the Rules.

If a participant enters into an agreement with another person for the performance of an activity or function required by this By-law or the Rules, the participant remains responsible for ensuring that the activity or function is carried out as required by this By-law and the Rules.

Each participant who exchanges an RTR payment message on behalf of a local referred to in subparagraph 6(1)(a)(ii) of the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System must ensure that the local complies with this By-law and the Rules as if it were a participant.

Except as otherwise expressly provided in this By-law or the Rules, nothing in this By-law or the Rules

The Association must manage, operate and maintain the RTR system and ensure that it is capable of performing all activities and functions required by this By-law and the Rules.

If the Association enters into an agreement with another person for the maintenance of the RTR system or for the performance of an activity or function required by this By-law or the Rules, the Association remains responsible for ensuring that the RTR system is capable of performing all activities and functions as required by this By-law and the Rules.

A member may, in the form and manner set out in the Rules, make an application to the President to participate in the RTR system as a direct settlement participant or as an indirect settlement participant.

The President must approve the application if the member demonstrates that

The President may suspend a participant’s permission to participate in the RTR system if

Before making a suspension, the President must provide the Bank with notice of the intention to make the suspension.

If an agent of His Majesty in right of Canada, an agent or mandatary of His Majesty in right of a province, a regulator or a supervisory body takes control of a participant or any of its assets or makes a declaration that a participant is considered to be no longer viable or that a participant is unable to meet its liabilities as they become due, the President may, after being advised of such an action having been taken or such a declaration having been made and with the concurrence of the Minister and the Governor of the Bank, suspend the participant’s permission to participate in the RTR system if its further participation could adversely affect the efficiency, safety or soundness of the RTR system.

The President may reinstate the participant’s permission to participate in the RTR system if, with the concurrence of the Minister and the Governor of the Bank, the President determines that the participant’s further participation in the RTR system will not adversely affect the efficiency, safety or soundness of the RTR system.

The Board may revoke a member’s approval to be a participant in the RTR system if

Before making a revocation, the Board must provide the Bank with notice of the intention to make the revocation.

After the Board makes a revocation, the President must

A participant whose permission to participate in the RTR system is suspended under section 9 or 10 or a member whose approval to be a participant in the RTR system is revoked under section 13 may, in the form and manner set out in the Rules, make an application to the President to have that permission or approval reinstated.

The President must reinstate the permission or approval if the application demonstrates that the circumstances giving rise to the suspension or revocation no longer exist.

A direct settlement participant who is not subject to a suspension under any of sections 9 to 11 may, in the form and manner set out in the Rules, make an application to the President for approval to clear and settle RTR payment obligations in RTR Clearing and Settlement on behalf of indirect settlement participants.

The President must approve the application if the direct settlement participant demonstrates that

The President may suspend an approval provided under section 16 if the direct settlement participant

Before making a suspension, the President must provide the Bank with notice of the intention to make the suspension.

The Board may revoke an approval provided under section 16 if the direct settlement participant

Before making a revocation, the Board must provide the Bank with notice of the intention to make the revocation.

After the Board makes a revocation, the President must

A direct settlement participant whose approval under section 16 is suspended under section 17 or 18 or revoked under section 20 may, in the form and manner set out in the Rules, make an application to the President to have that approval reinstated.

The President must reinstate the approval if the application demonstrates that the circumstances giving rise to the suspension or revocation no longer exist.

Subject to subsection (6), an indirect settlement participant must, in accordance with the Rules, designate

A settlement agent may be designated in respect of more than one payment exchange referred to in subsection (1).

The designation must identify each payment exchange in respect of which it is made.

A settlement agent must, for each payment exchange in respect of which the designation is made, provide written notice to the Association, in the form and manner set out in the Rules, before acting for the first time on behalf of the indirect settlement participant in respect of the payment exchange.

The indirect settlement participant must designate a new settlement agent for a payment exchange if

In the case where notice to terminate the current settlement agent’s designation is provided under subsection 25(1) and a new settlement agent must be designated in accordance with subsection (5), designation of the new settlement agent must be made before the day on which the current settlement agent’s designation is terminated.

All designations made under section 22 in respect of a settlement agent are terminated if the settlement agent is, in its capacity as a direct settlement participant or a settlement agent, subject to

The designations are terminated at the time at which the suspension or revocation is made.

A settlement agent must not act on behalf of an indirect settlement participant after its designations are terminated under this section.

An indirect settlement participant or settlement agent who wishes to terminate a designation made under section 22 must, in accordance with the Rules, provide written notice that the designation is to be terminated to the Association and the indirect settlement participant or settlement agent, as the case may be.

The designation is terminated on the earlier of

Subject to subsections (2) and (3), a settlement agent must continue to act on behalf of the indirect settlement participant until the day on which its designation is terminated under section 25.

Subject to subsection 39.15(3.1) of the Canada Deposit Insurance Corporation Act, a settlement agent may immediately cease to act on behalf of an indirect settlement participant if

A settlement agent must immediately cease to act on behalf of an indirect settlement participant during any period of time that the indirect settlement participant is subject to a suspension under any of sections 9 to 11 or to a revocation under section 13.

The Association must operate, on behalf of the Bank, one settlement account in RTR Clearing and Settlement for each direct settlement participant.

Each settlement account must be operated in accordance with the procedures set out in the Rules.

Immediately after accepting an RTR payment message, the RTR Exchange must

Except in the circumstances specified in the Rules, a participant must always be able to receive a RTR payment message referred to in paragraph (1)(b).

Immediately after receiving the RTR payment message referred to in paragraph (1)(b), the receiving participant must, in accordance with the Rules, send the RTR Exchange a notice indicating whether or not it accepts the payment set out in the message.

Immediately after RTR Clearing and Settlement accepts settlement instructions for clearing and settlement, the Association must reserve, in the sending participant’s settlement account, an amount of funds that is equal to the amount necessary to clear and settle the RTR payment obligation if the settlement instructions contain an instruction to reserve the funds.

For the purpose of subsection (1), the amount is reserved in the sending participant’s settlement account when the Association makes the entries to the account required by the Rules.

Subject to subsection 40(2), funds that are reserved under subsection (1) must only be used to settle the RTR payment obligation, regardless of any claim or interest in — or, in Quebec, any right to — those funds that any person other than the sending participant may have.

RTR Clearing and Settlement must send to the payment exchange that submitted the settlement instructions a notice indicating whether or not the funds have been reserved.

The RTR Exchange must, in accordance with the Rules, send the sending participant and the receiving participant a payment outcome report that indicates whether or not the RTR payment obligation will be settled.

If the following conditions are met, the payment outcome report must indicate that the RTR payment obligation will be settled:

The Association must settle an RTR payment obligation if the associated settlement instructions were

If the Association is not required to settle the RTR payment obligation under subsection (1), it must release all funds that have been reserved in respect of that payment obligation under section 35.

For the purpose of subsection (2), the amount is released in the sending participant’s settlement account when the Association makes the entries to the account required by the Rules.

For the purpose of this By-law, an RTR payment obligation is settled in RTR Clearing and Settlement when the Association

A transfer that is made in accordance with subsection (1) is final and irrevocable.

If the settlement instructions associated with the RTR payment obligation were generated by the RTR exchange, the Association must, immediately after the obligation is settled, send the sending participant and the receiving participant a notice of settlement.

Subject to section 45, the receiving participant must, within the time limit set out in the Rules, make the amount of the payment available to the payee.

The amount of a payment is made available to a payee when the earliest of the following actions is taken:

Except in the circumstances specified in the Rules, a payment made under subsection (1) is final and irrevocable.

A receiving participant who receives a payment message in the RTR Exchange that identifies the payee both by name and an account number or other identifier specified in the Rules may rely on that account number or other identifier for the purpose of making the amount of the payment available to the payee.

A receiving participant who relies on an account number or other identifier for the purpose of making the amount of the payment available to the payee is deemed to have complied with section 43.