By-law No. 7 Respecting the Large Value Transfer System

24 (1) Subject to subsection (1.1) and in accordance with any procedures that may be set out in the rules, a participant may, at any time during the LVTS cycle, increase any of the bilateral credit limits that it has established, by notifying the Association of the increase.

(1.1) A participant must not increase a bilateral credit limit that it has established if Lynx is operational for any period after August 28, 2021.

(2) If because of any increase referred to in subsection (1) there is any corresponding increase in the participant’s maximum ASO, the participant shall

• (a) subject to section 21, apportion the value of additional collateral that has been pledged to the Bank of Canada for LVTS purposes to cover any such corresponding increase in its maximum ASO; or

• (b) pledge additional collateral to the Bank of Canada for LVTS purposes, subject to valuation by the Bank of Canada in accordance with section 31, and apportion the value of that collateral to cover any such corresponding increase in the participant’s maximum ASO.

(3) On acceptance by the Association of any increase in a bilateral credit limit effected by a participant under subsection (1), the relevant bilateral credit limits established by the Bank of Canada, any corresponding increase in the participant’s maximum ASO and any resulting increase in any participant’s tranche 2 net debit cap shall be recalculated accordingly.

(4) The Association shall give notice to each participant of any increase in any bilateral credit limit established for that participant and of any increase in that participant’s tranche 2 net debit cap.