Future repeal of a key Payment Clearing and Settlement Act provision flagged but not yet in force

Plain-language summary · AI-assisted

An amendment has been added to the consolidated text of the Payment Clearing and Settlement Act noting that section 12.1 of the Act is scheduled for repeal by a 2026 statute. This change is explicitly marked as 'not in force,' meaning the repeal has no legal effect yet. Section 12.1 relates to circumstances under which a person is considered insolvent for purposes of the Act (court orders involving reorganization, arrangement, or receivership). Financial institutions and payment system operators that rely on or are governed by section 12.1 should monitor when this repeal comes into force, as its removal will affect how insolvency status is determined under this Act. No action is required immediately, but legal and compliance teams should flag this pending change for future review.

Who this affects
financial institutions · payment system operators · clearing and settlement system participants · insolvency and restructuring practitioners