Bill C-100

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

Second Reading

PDF

	Netting Agreements
Termination	13. (1) Notwithstanding anything in any law relating to bankruptcy or insolvency or any order of a court made pursuant to an administration of a reorganization, arrangement or receivership involving insolvency, a financial institution that is a party to a netting agreement may terminate the agreement and determine a net termination value or net settlement amount in accordance with the provisions of the agreement and the party entitled to the net termination value or settlement amount shall be a creditor of the party owing the net termination value or net settlement amount for that value or amount.
Interpretation	(2) In subsection (1),
``financial institution'' « institution financière »	``financial institution'' means
	(a) a financial institution within the meaning of section 2 of the Trust and Loan Companies Act,
	(b) such other entity or entity within a class of entities engaged primarily in the business of providing financial services as may be designated by order of the Governor in Council to be a financial institution for the purposes of this section, or
	(c) a trustee, manager or administrator of a pension fund maintained to provide benefits under a pension plan registered under the Income Tax Act;
``net termination value'' « reliquat net »	``net termination value'' means the net amount obtained after setting off or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions;
``netting agreement'' « accord de compensation »	``netting agreement'' means an agreement between two or more financial institutions that is
	(a) an eligible financial contract within the meaning of section 22.1 of the Winding-up and Restructuring Act, or
	(b) an agreement that provides for the netting or set-off of present or future obligations to make payments against the present or future rights to receive payments.
	Information Requirements
Information requests re systems or arrangements	14. (1) Where the Governor of the Bank has reasonable grounds to believe that a system or arrangement exists for the clearing and settlement of payment obligations or payment messages but the Bank requires further information in order to determine whether the system or arrangement is a clearing and settlement system, the Governor may, with the agreement of the Minister, request a person who is a party to the system or arrangement to provide the Bank with such information and documents regarding the system or arrangement as the Bank may require to make the determination.
Compliance with request required	(2) Every person to whom a request is directed under subsection (1) shall comply with the request.
Systemic risk information	(3) Every clearing house shall, in respect of its clearing and settlement system, provide the Bank with such information and documents as the Bank may from time to time require to enable the Bank to determine whether the clearing and settlement system poses a systemic risk and, without limiting the generality of the foregoing, the clearing house shall, in respect of the clearing and settlement system, provide the Bank with
	(a) the names of its participants;
	(b) copies of its constating documents, by-laws, resolutions, agreements, rules, procedures and other documents governing its establishment and operation;
	(c) the names of its directors, committee members and auditors;
	(d) copies of its reports, statements or other documents that are required to be filed with any government agency or regulatory body; and
	(e) copies of its financial statements.
	Enforcement
Compliance orders	15. If a clearing house or a participant fails to comply with a provision of this Act or a directive issued to it by the Governor of the Bank in connection with any matter under this Act, or a person to whom a request referred to in subsection 14(1) is directed fails to comply with the request, the Bank or the Governor may apply to a superior court for an order directing the clearing house, participant or person, as the case may be, to comply with the provision, directive or request and, on the application, the court may so order and make any further order it thinks fit.
Offence and punishment	16. Every person who, without reasonable cause, contravenes any provision of this Act is guilty of an offence and
	(a) in the case of a natural person, liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding twelve months, or to both; or
	(b) in the case of any other entity, liable on summary conviction to a fine not exceeding $500,000.
	Guidelines
Governor or Bank may issue	17. The Governor of the Bank or the Bank may issue guidelines in respect of any matter relating to the administration or enforcement of this Act.
	Disclosure of Information
Information, etc., confidential	18. (1) Information and documents obtained under this Act are confidential and shall be treated accordingly.
Disclosure permitted	(2) Nothing in subsection (1) prevents the Bank from disclosing any information or documents
	(a) to any government agency or regulatory body charged with the regulation of financial institutions, within the meaning of section 2 of the Trust and Loan Companies Act, for purposes related to that regulation, and
	(b) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Chairperson of the Canada Deposit Insurance Corporation or any officer of that Corporation authorized in writing by the Chairperson,
	if the Bank is satisfied that the information or documents will be treated as confidential by the agency, body or person to whom they are disclosed.
	Designations and Directives
Not statutory instruments	19. A designation under subsection 4(1) or a directive issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act.
	Liability
No liability if in good faith	20. No action lies against Her Majesty, the Minister, the Bank, any officer or employee of the Bank or any person acting under the direction of the Governor of the Bank for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.
	Judicial Review
No stay on judicial review	21. On an application for judicial review under the Federal Court Act of any designation under subsection 4(1) or of any directive issued under this Act, no stay of the designation or directive shall be granted pending the final disposition of the application.
	Participants
Participants responsible where no clearing house	22. (1) Where a clearing and settlement system does not have a clearing house located in Canada, the Canadian participants
	(a) shall comply with the obligations imposed under this Act on a clearing house in respect of a clearing and settlement system, and
	(b) have all the rights conferred by this Act on a clearing house in respect of a clearing and settlement system
	in the same manner and to the same extent as if the Canadian participants were the clearing house on which those obligations and rights are imposed or conferred and, for that purpose, any action that the Bank may take in respect of a clearing house may only be taken in respect of the Canadian participants.
Participants responsible where clearing house fails to comply, etc.	(2) Where a clearing house fails to comply with the obligations imposed on it under this Act in respect of its clearing and settlement system or otherwise contravenes this Act, the participants jointly and severally shall comply with those obligations or are liable for the contravention in the same manner and to the same extent as if the participants were the clearing house on which the obligations are imposed or that committed the contravention.
Interpretation	(3) In subsection (1), a participant is ``Canadian'' if the participant is incorporated or formed under an enactment of Canada or a province.
Information	23. A participant is not required to provide information to the Bank under this Act concerning another participant of a clearing and settlement system if that information is not available to all the participants.