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

Marginal note:Settlement instructions

39 RTR Clearing and Settlement must generate the settlement instructions for the participant-to-participant transfer directed under section 38 if the direction is submitted in accordance with the Rules.

Settlement

Marginal note:Settlement required

• 40 (1) The Association must settle an RTR payment obligation if the associated settlement instructions were

  • (a) generated by RTR Clearing and Settlement for a participant-to-participant transfer and

    • (i) the amount of funds available in the sending participant’s settlement account to settle RTR payment obligations is not less than the amount necessary to clear and settle the RTR payment obligation, and

    • (ii) neither the sending participant nor the receiving participant is subject to a suspension under any of sections 9 to 11 or a to direction made under paragraph 48(b);

  • (b) generated by the RTR Exchange and a direction to implement them was submitted to RTR Clearing and Settlement in accordance with section 37; or

  • (c) generated by a third-party exchange and

    • (i) the instructions were accepted for clearing and settlement under section 34, and

    • (ii) if the instructions contained an instruction to reserve an amount of funds, the funds were reserved under section 35 and a direction to implement the instructions was submitted to RTR Clearing and Settlement by the third-party exchange.

• Marginal note:Release of reserved funds

  (2) 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.

• Marginal note:Entries

  (3) 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.

Marginal note:Settlement effected

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

  • (a) transfers an amount equal to the amount of the RTR payment obligation from the sending participant’s settlement account to the receiving participant’s settlement account; and

  • (b) makes the corresponding entries to those accounts in accordance with the procedures set out in the Rules.

• Marginal note:Final and irrevocable

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

• Marginal note:Notice of settlement

  (3) 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.

Payments to Payees

Marginal note:Scope

42 Sections 43 to 47 apply in respect of the payment of an amount to a payee as a result of the settlement of a RTR payment obligation that was set out in an RTR payment message.

Marginal note:Payment

• 43 (1) 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.

• Marginal note:Making payment available to payee

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

  • (a) the receiving participant credits the amount to an account of the payee;

  • (b) the receiving participant lawfully applies the amount against a debt of the payee; and

  • (c) the receiving participant otherwise makes the amount of the payment accessible to the payee.

• Marginal note:Final and irrevocable

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

Marginal note:Payee identifier

• 44 (1) 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.

• Marginal note:Reliance on payee identifier

  (2) 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.

Marginal note:Exceptional circumstances

45 If any of the following exceptional circumstances exist, the receiving participant must comply with the procedures set out in the Rules for those circumstances instead of making the amount of the payment available to the payee:

• (a) the payment message received by the receiving participant contains an error or omission specified in the Rules;

• (b) the amount of the payment to be made available must be converted into a currency other than Canadian dollars;

• (c) the receiving participant has reasonable grounds to believe that the payment message contains “malicious content” or “harmful content” as defined in the Rules;

• (d) the receiving participant cannot make the amount of the payment available due to circumstances beyond its control;

• (e) the receiving participant cannot make the amount of the payment available because of a restriction it has imposed on the payee or the account to which the payment is to be credited;

• (f) in order to comply with a law or an order of a court, the receiving participant cannot make the amount of the payment available to the payee; or

• (g) the receiving participant agrees to the payee’s request that the amount of the payment not be made available to them.

Marginal note:Obligations to payee

46 The obligations of a receiving participant under sections 43 and 45 are to the payee and no obligation is owed by the receiving participant to the sending participant or any other person solely because of any of those sections.

Marginal note:Requirements not limited

47 The requirements set out in sections 43 and 45 must not be limited by the Rules or any agreement.

Emergencies

Marginal note:Emergency condition

48 If communications between the RTR system and a participant are interrupted, the ability of the RTR system to receive, send or otherwise process payment messages or to clear and settle RTR payment obligations is impaired, the safe and efficient operation of the RTR system is placed into question or any other emergency affects its operations, the President may, with prior notice to the Bank and in accordance with the procedures set out in the Rules,

• (a) direct that, for a specified period of time, settlement instructions from a third-party exchange must not be accepted by RTR Clearing and Settlement;

• (b) direct that, for a specified period of time, participants must not

  • (i) send RTR payment messages to the RTR Exchange,

  • (ii) submit settlement instructions to RTR Clearing and Settlement, or

  • (iii) submit directions to RTR Clearing and Settlement to effect participant-to-participant transfers; or

• (c) direct the Association or a participant to take any other action necessary to ensure

  • (i) the safe and efficient operation of the RTR system, or

  • (ii) the continued processing of payment messages or clearance and settlement of RTR payment obligations.

Consequential Amendments

Canadian Payments Association By-law No. 6 — Compliance

49 [Amendments]

Canadian Payments Association By-law No. 2 — Finance

50 [Amendments]

Canadian Payments Association By-law No. 1 — General

51 [Amendments]

Coming into Force

Marginal note:August 24, 2026 or registration

52 This By-law comes into force on August 24, 2026, but if it is registered after that day, it comes into force on the day on which it is registered.