1. INTERPRETATION – Any dened tern used in this agreement, dened in the singular,
is deemed to include the plural and vice versa.
“Access Terminal” means any device used to access any of the Depositor’s accounts,
including without limitation an ATM, a computer, a portable hand-held device, or a
telephone including any form of mobile telephone.
“Account” means any of the Depositor’s accounts or subaccounts (if applicable) that
the Depositor may have now or in the future, at the Financial Institution.
“Account Agreement” means the agreement for the operation of the Account.
“ATM” means an Automated Teller Machine.
“CPA” means the Canadian Payments Association.
“Debit Card” means a card issued by the Financial Institution that allows the holder of
the card to deposit cash and/or Instruments or withdraw cash from the Account through
an ATM, authorize Transactions on the Account through an ATM, and that operates
like an Instrument to purchase goods and services from merchants.
“Depositor” means the customer or member of the Financial Institution who holds
the Account with the Financial Institution authorized by the Financial Institution for
Direct Services.
“Direct Services” means the services offered by the Financial Institution from time
to time that let the Depositor access the Account using an Access Terminal. However,
Direct Services do not include card services such as Debit Cards or Smart Cards
provided by a Third Party.
“Direct Services Agreement” means the agreement for the use of Direct Services.
“Eligible Financial Institution” means either a member of the CPA or a Canadian
nancial institution deemed to be a Member for purposes of the CPA Rules.
“Financial Institution” means the nancial institution set out in the Account Agreement.
“Funds Transfer PAD” means, where the Payor and the Payee are the same individual,
a PAD drawn on the account of a Payor for the purpose of transferring funds from
his or her account at one Eligible Financial Institution to his or her account at another
Eligible Financial Institution, including, but not limited to, registered savings plans,
mutual funds, segregated funds, annuities, deposit accounts, cash accounts, and
investment accounts.
“Instrument” means a cheque, promissory note, bill of exchange, order for payment,
securities, cash, coupon, note, clearing item, credit card slip for processing, other
negotiable instrument, or item of deposit or withdrawal of a similar nature and its
electronic equivalent, including electronic debit instructions.
“PAC” means the personal access code or word used with Direct Services to access
an Account.
“PAD” means a Preauthorized Debit.
“Payor” means the party whose External Account is debited with the amount of the PAD.
“Payee” means the party whose Account is credited with the amount of the PAD.
“Preauthorized Debit” means a Transaction debiting an account that is processed
electronically by a nancial institution in accordance with the Depositor’s written request.
“Rules” means the published rules and standards of the Canadian Payments
Association as amended from time to time.
“Smart Card” means a Debit Card that has an embedded integrated circuit that can
process data and protect the cardholder from fraudulent use.
“Third Party” means any person, rm, corporation, association, organization, or entity
other than the Financial Institution or Central 1 Credit Union (“Central 1”).
“Transaction” means any transaction processed to or from the Account.
2. By signing the Authorization on page 1, the Depositor authorizes the Financial Institution
to transfer funds from the Account to the External Account identied by the Depositor at
the times and for the amounts specied by the Depositor. The Depositor acknowledges
that the Financial Institution may limit the amount of these transfers.
3. By signing the Authorization on page 1, the Depositor authorizes the Financial Institution
to transfer funds from the External Account identied by the Depositor to the Account at
the times and for the amounts specied by the Depositor. The Depositor acknowledges
and agrees that:
a) this authorization is provided for the Financial Institution’s benet and for the
benet of the other nancial institution where the External Account is held, and
that it is provided in consideration of the other nancial institution agreeing to
process PADs against the External Account;
b) the PADs processed against the External Account will be Funds Transfer PADs;
c) the PADs will be triggered after the Depositor accesses Direct Services and
requests a transfer from the External Account;
d) the PADs may be issued for a xed amount or a variable amount as determined
by the Depositor;
e) the act of logging on to Direct Services, using the PAC, and initiating the
transfer constitutes the Depositor’s authorization for the transfer. This includes
authorization for amount changes;
f) the Financial Institution may limit the amount of these transfers;
g) recourse will not be provided through the clearing system pursuant to the Rules
(that is, the Depositor will not receive automatic reimbursement in the event of a
dispute). The Depositor must seek reimbursement from the Payee (the Account)
in the event that a transfer is erroneously charged to the External Account;
h) delivery of this agreement to the Financial Institution constitutes delivery to the
other nancial institution; and
i) the other nancial institution is not required to verify that a PAD has been issued
in accordance with this authorization, including the amount and purpose of the
transfer, prior to processing the transfer.
4. The Depositor agrees to immediately notify the Financial Institution, in writing, of any
changes to the account information of the External Account.
5. The Financial Institution reserves the right to verify the External Account.
6. The Depositor acknowledges and agrees that the Financial Institution, at its discretion,
may limit the type of transfer that can be made between the Account and the External
Account, specically whether transfers will be in the form of credits to the External Account,
debits from the External Account, or both credits to and debits from the External Account.
7. This agreement is continuing but may be cancelled at any time upon notice being
provided by the Depositor, either in writing or orally, with proper authorization to verify
the Depositor’s identity within the time frame specied by the Financial Institution that
shall not exceed 30 days. The Depositor acknowledges that he or she can obtain a
sample cancellation form or further information on the right to cancel this agreement
from the Financial Institution or by visiting www.cdnpay.ca.
8. The terms and conditions of the Account Agreement and the Direct Services Agreement
between the Depositor and the Financial Institution will apply to the transfers
contemplated by this agreement.
9. The Depositor agrees that for the proper application of the Rules, the Financial Institution
may disclose information contained in this agreement to the other nancial institution.
10. It is the express wish of the parties that this agreement and any related documents
be drawn up and if execution is required, to be executed in English. Les parties
conviennent que la présente convention et tous les documents s’y rattachant soient
rédigés et signés en anglais.
TERMS AND CONDITIONS
DIRECT SERVICES EXTERNAL ACCOUNT LINK AUTHORIZATION PAGE 2 OF 2
