Index

• Author: M.H. Ogilvie
• Profession: Chancellor's Professor and Professor of Law, Carleton University
• Pages: 495-526

495

INDEX

Account combination by b ank, 259–63

Account verificat ion clauses, 319,

320–21, 323

history of, 320

Accounts. See Ban k accounts

Alternat ive dispute resolution (ADR) in

ban king, 437, 438 –42

evolution of, 438–42

Financia l Consumer Agency of Can-

ada (FCAC) and, 440, 441, 442

history of, 437

Office of the Super intendent of

Financia l Institutions (OSFI) and,

443, 445, 446

Ombudsman for B anking Service s

and Investment s (OBSI) and, 440

confidential ity of files of, 447

criticis m of, 443

excluded disp utes, 445

funding for, 443

membership in, 4 42, 443

monetary li mit of recommended

award, 446

Ombudsman , role of, 443

procedure for complaint s, 444–48

recommendation s of, 447–48

regulator y framework of, 441

requirement s for consideration of

complaints, 4 44–45

reviews of pract ices of, 448

role of, 442

systemic is sues, recommenda-

tions re, 445 –46

Terms of Reference, 443, 445, 448

private-sector s ervices, 442, 443– 44n

summary, 448–49

American E xpress, 402, 404, 406, 415

Associat ion for Payment Clearing Ser vi-

ces (APACS), 363

Auditors, shareholder, 116–19

appointment of, 117

duties of, 118

qualificat ions of, 117

repor t of, 118–19

rights of, 117–18

Audits, bank , 100–1

audit committ ee, 100

statutory dutie s of, 101

Authorized foreig n bank, 25, 143

defi ned, 142

Automated bank ing machines (ABMs),

156, 191, 371, 375, 376, 377, 379,

382, 384, 385, 389, 390

ABM cards, 375

single purpo se, 375

BANK AND C USTOMER LAW IN CA NADA496

Automated Clear ing Settlement Sys-

tem (ACSS) and, 351

foreign bank s and, 142

receipts, 245

Automated Clear ing Settlement System

(ACSS), 56, 268n, 276, 340, 343n,

346–54

ACSS Rules Manual, 348, 351, 352

bank defaults, 353–54

Bank of Can ada and, 347–48, 350

bill payment s ervice, 393–94

process of, 393– 94

cheques, clea rance of, 348–49

cheque holds, 350

dishonoured cheque s, 360

paper payment ite ms, risks of,

350– 51

processing comp anies

Intria, 34 9

Sym cor, 349

classe s of participants in, 347–48

direct clea rers, 347–48, 350, 351,

352, 353, 354, 359

indirect cle arers, 347, 354, 359

clearing

defined, 346

rules of, 348

electronic item s

automated bank ing machines

(AB Ms), 351

automated fund tr ansfer (AFT)

debits, 351

categories of, 348

clearance, st reams of, 351

Corporate Cr editor Identification

Number (CCIN), 352

Data Transmi ssion Network

(DTN), 351, 35 2

electronic dat a interchange (EDI)

payment items, 352–53, 392

point-of-sale (POS) items, 351–52

risks of, 353

final sett lement, 353–55

history of, 34 6

Interac and, 377, 378

legal signi ficance for customers, 360

“on-us” items, 358

payment items p ermitted, 348

prefunded ca rds, 389

recurri ng payment systems, 392

role of, 346

settlement, defi ned, 346

third par ty payment systems (3PPS),

395

travellers’ c heques, 419–20

United States Bu lk Exchange System

(USBES) versus, 355

Automated fund tr ansfers (AFTs) of

credits /debits

Automated Clear ing Settlement Sys-

tem (ACSS) and, 351

United States Bu lk Exchange System

(USBE S) and, 355

Automated funds t ransfer system

(AF TS), 392

process of, 393

purpose of, 393

Bank account oper ation, 267–338

background, 269–71

collecting ba nk, 304–15

construct ive trusteeship for thi rd

party, 305, 315

requirement s for collection,

304 –11

cheque hold policy, 307–9

customer duty to repor t suspi-

cion re cheques, 307

dishonoured cheque s, 309–11

forged cheques, 308 –9

method of collection, s election

of, 305 –7

presentment for pay ment, 305,

307–9

statutory protec tion of, 311–15

delivered, define d, 297

history of, 311–13

liability of b ank for conversion,

312– 15

liability of b ank for restitution,

315

confidential ity, maintenance of,

324–3 8

duration and scope of, 326

exceptions to, 326–27

general, 324–25

history of, 325

need for disclosu re of finan-

cial records, i nstances of,

324–25

Index 497

Personal Informatio n Protection

and Electronic Docume nts

Act (PIPEDA), 308, 325

Privacy Model C ode, 325

statutory dutie s of, 336–38

PIPEDA, compl iance with,

337–38

unauthori zed access to finan-

cial infor mation, prevention

of, 3 36–37

Tournier v. National Provincial &

Union Bank of England, 324,

325 –36

bank’s intere sts, higher order

of, 326, 333 –34

compulsion of law, 327–31

customer consent , with ex-

press or implied, 33 4–36

higher public duty to d isclose,

326, 331–33

qualificat ions of, 327–36

general, 267–68

common law, at, 267, 268, 269

implied duty to cu stomers, 269

legal rules for accou nt operation,

267–6 8

paper versus ele ctronic trans-

actions, 268

payment, element s of, 270

clearing a nd settlement system,

270

movement in accounts, 270

payment mes sage, 270

third par ty, bank liability to,

269 –70

globalizat ion and, 329–31, 336

paying ba nk, 271–304

certified che ques, 280–85

certificat ion as acceptance of

payment, 282 –84

defined, 280

fraudulent, 285

history of, 28 0

lost, 284– 85

process of cert ification,

280– 82

countermand of c heques, 288,

290–9 4, 298, 303

abusive uses of, 294

accuracy, degree of requ ired,

292–93

effective ti ming of, 292

mistaken p ayment of by bank,

294

notice to account branch , 293

duty to pay, terminat ion of bank’s,

288–90

bankrupt cy, customer, 290

death, customer, 289

freezing of acc ounts, 289

garnish ment order for funds,

289

Mareva inju nction, 289

mental incap acity, customer,

290

money launderin g, prevention

of, 289

stale-date d cheques, 288–89

payment, requ irements for,

271–78

clearing a nd settlement system,

274– 77

sufficient fund s in account,

need for, 271–73

unambiguous c heques, fraud

prevention and, 273–74

postdated cheques, 278–79, 282

certificat ion of, 282

defin ed, 278

recovery of money pai d by mis-

ta ke, 299 –304

drawer’s intent ion to pay payee,

defence of, 301, 302

electronic fund s transfers

(EF Ts), 369

estoppel, defence of, 303

good considerat ion, defence of,

301, 302, 303

history of, 30 0–1

payee’s position cha nged, de-

fence of, 301, 302, 303–4

stop-payment orde r, 290

wrongful d ishonour of cheques,

285– 88

wrongful pa yment by, 294–99

ambiguous customer instruc-

tions, defence of, 298

careless c ustomer conduct,

295–96