Domestic Bonds of Canada Regulations

Regulations Respecting Domestic Bonds of the Government of Canada These Regulations may be cited as the Domestic Bonds of Canada Regulations. In these Regulations, Bank means the Bank of Canada; (Banque) bond has the same meaning as security in the Financial Administration Act; (obligation) registered owner of a bond registered as to principal, means a person whose name has been entered by the Bank in the register as the person to whom the principal is payable, and of a bond registered as to principal and interest, means the person whose name has been entered by the Bank in the register as the person to whom the principal and interest are payable. (titulaire) These Regulations apply in respect of all bonds except insofar as they are inconsistent with the terms of the bonds. The Bank shall maintain a register of bonds in accordance with these Regulations. The Bank shall, in accordance with these Regulations, register bonds, discharge the registration of bonds and give effect to transfers of bonds as may be required from time to time and may, subject to the terms upon which the bonds are issued, issue such bonds as may be required for these purposes or to give effect to the terms of outstanding bonds or these Regulations. Any duty, power or discretion imposed or conferred upon the Deputy Minister of Finance by the terms of bonds, which was imposed or conferred upon the Bank of Canada by Order in Council P.C. 5938 dated October 25, 1940, continues to be imposed and conferred upon the Bank and anything done by the Bank as registrar of bonds in accordance with these Regulations or any other regulations or laws applicable thereto continues to be and is as valid and effectual for all purposes as if done by the Deputy Minister of Finance. The Bank may authorize a person to act on its behalf for any of the purposes of these Regulations and, where the person so authorized is a corporation, its appropriate officers or employees shall be deemed to be authorized to act on behalf of the Bank. Where a person is to be registered as owner of a bond as to principal, the Bank shall enter in the register the particulars of the bond and the name of the person to whom the principal is payable; or as to principal and interest, the Bank shall enter in the register the particulars of the bond and the name and post office address of the person to whom the principal and interest are payable. Where the names of two or more persons are to be entered in the register as owners of a bond as to principal and interest, there shall be indicated by the owners only one address that is to be entered in the register which address shall be the registered address of all those persons for all purposes relating to the bond. Where, in accordance with these Regulations, the name of a person has been entered in the register by the Bank as owner of a bond as to principal or as to principal and interest, the entry in the register shall, except as otherwise provided in these Regulations, be conclusive evidence as against the Government of Canada that that person is owner of that bond. Where, in accordance with these Regulations, the name of a person is entered in the register as owner of a bond as to principal and interest, the interest on that bond is payable by a cheque negotiable at any branch in Canada of a bank incorporated under the Bank Act. Where the names of two or more persons without the words “and survivor”, are entered in the register as owners of a bond and one of the persons dies, his rights under the bond are not vested in any other such person or persons on his death by reason of survivorship. Notwithstanding that the name of a person is entered in the register as owner of a bond as to principal, the coupons attached to the bond are payable to bearer and when detached are transferable by delivery. Where a bond is issued or registered, such issue or registration shall be deemed to be valid notwithstanding that the issue or registration takes place in error in circumstances in which such issue or registration is not authorized by these Regulations, or the issue or registration takes place pursuant to an instrument of transfer in which the signature of the transferor has been forged or pursuant to a forged instrument purporting to authorize a person to act on behalf of or in the place of a registered owner as provided for in section 15, but nothing in this section shall be deemed to affect the rights or liabilities of any person by reason of the forged instrument. Where in error a bond is issued or registered in circumstances in which such issue or registration is not authorized by these Regulations and the bond has been delivered, the person receiving the bond or registered as owner thereof shall not be entitled as against the Government of Canada to any payment under the bond but shall be liable to return the bond and all coupons attached to it at the time it was delivered to him and if he fails to do so he shall be liable to pay to the Bank the market value of the bond together with an amount equal to any amounts paid to him by way of interest on the bond. Where a person mentioned in subsection (2) fails to return matured coupons to the Bank, he shall be deemed to have received payment of the redemption value of the coupons. Where the name of a person has been entered in the register by the Bank as owner of a bond registered as to principal, the Bank shall enter his name in the bond as the person to whom the principal is payable; or registered as to principal and interest, the Bank shall enter his name in the bond as the person to whom the principal and interest are payable. No entry in a bond of the name of any person as the person to whom the principal is payable or the principal and interest are payable made by a person other than the Bank is effective to confer any right under or interest in the bond. No alteration or erasure of the name of any person entered by the Bank in a bond as the person to whom the principal is payable or the principal and interest are payable is effective to confer any right under the bond on any other person or to deprive the person whose name was entered by the Bank of any rights that he may have under the bond. Where a person applies to be registered as owner of a bond and the bond is delivered to him without his name being entered in it by the Bank, the bond shall be deemed to be validly issued and unless he returns the bond to the Bank to have his name so entered, he shall be deemed to have accepted the bond in satisfaction of his rights as registered owner and the entry, if any, in the register shall be cancelled by the Bank. Except as otherwise provided by the terms of the bond a registered bond may, in accordance with sections 13 to 18, be transferred on presentation of the bond and of an instrument of transfer in accordance with these Regulations. Where subsection (1) has been complied with, the Bank may give effect to the instrument of transfer in accordance with its terms. The execution of an instrument of transfer does not transfer or confer any right under the bond against the Government of Canada or the Bank until the Bank has given effect to the instrument by making the appropriate entry in the register. An instrument of transfer shall be in Form I set out in the schedule. An instrument of transfer may be executed by being signed by the registered owner or his personal representative; where the registered owner is a corporation, by being signed by its duly authorized officers and by affixing the seal of the corporation, if any, where required; by being signed by a person authorized in that behalf by the registered owner under a power of attorney or partnership agreement; where an unincorporated association not being a partnership is registered as owner of a bond, by being signed by the duly authorized officers of the association; or by being signed by a person authorized by law to execute it on behalf of the registered owner. For the purposes of these Regulations, a person authorized by law to execute an instrument of transfer on behalf of a registered owner means any person appointed by a competent court or by statute to act on behalf of or in the place of the registered owner and includes a trustee in bankruptcy. The Bank is not required to give effect to an instrument of transfer unless the signature on the instrument of transfer is guaranteed by a bank incorporated under the Bank Act or the Quebec Savings Banks Act; or a financial institution approved by the Bank under this section. The Bank may approve a financial institution for the purposes of this section and section 15 and may impose terms and conditions in connection with its approval and limit the amount of the bonds to be transferred in any one transaction with respect to which the guarantee of the institution will be accepted by the Bank and may revoke or vary any approval so given. Except as provided in subsections (2) and (3), where an instrument of transfer purports to have been signed by a person acting as an officer of a corporation registered as owner of a bond or by a person acting for or on behalf or in the place of the registered owner or as the personal representative of a deceased registered owner, the Bank is not required to give effect to it unless the resolution, power of attorney, partnership agreement, probate of a will, letters of administration or other document authorizing or evidencing the authority of the person so to act or a notarial or other authenticated copy of it acceptable to the Bank has been deposited with the Bank. The Bank may give effect to an instrument of transfer signed by a person mentioned in subsection (1) if a bank incorporated under the Bank Act or the Quebec Savings Banks Act or a financial institution approved by the Bank, in addition to guaranteeing his signature, has also guaranteed his authority to execute the instrument for or on behalf or in the place of the registered owner, the guarantee being in either of the following forms: “Signature of transferor and authority to sign guaranteed”; or “Transaction guaranteed”. Where an instrument of transfer purports to have been signed in the firm name only of a partnership or an unincorporated association not being a partnership, the Bank may give effect to it if the signature is guaranteed by a bank incorporated under the Bank Act or the Quebec Savings Banks Act or a financial institution approved by the Bank. Where a resolution, power of attorney, partnership agreement or other document or a copy thereof has been deposited with the Bank for the purposes of this section, the Bank may give full force and effect to it until written notice is received by the Bank that it has been revoked or the authority thereby conferred or evidenced has been terminated. The Bank may give effect to an instrument of transfer although no guarantee of the signature of the person signing the instrument of transfer has been given, if he is known to an executive officer of the Bank in Ottawa and his signature is vouched for by such officer; he signs on behalf of an insurance company and his signature is vouched for by an officer of the Department of Insurance of the Government of Canada and is acceptable to the Bank; he is a member of Her Majesty’s naval, military or air forces and his signature is witnessed by the commanding officer of his unit or the officer under whose direct command he is serving; he is personally known to the agent at an agency of the Bank and his signature is witnessed and vouched for by the agent; or he is an officer of a trust company authorized to guarantee signatures under section 14 and he is an officer of the company authorized to execute such guarantees and instruments of transfer on behalf of the company. Where an instrument of transfer has been executed outside Canada in a country of the British Commonwealth or in a British colony or possession and where no guarantee of the signature of the person signing it can be obtained in accordance with section 14 and the signature is not vouched for or witnessed in accordance with paragraph 16(a), (b) or (c), the Bank may give effect to the instrument, if the signature of the person signing it is guaranteed by an incorporated bank; or the signature is certified in the manner provided in section 18. Where an instrument of transfer is executed outside Canada in a place other than a place mentioned in section 17 and where no guarantee of the signature on the instrument of transfer can be obtained in accordance with section 14 and the signature is not vouched for or witnessed in accordance with paragraph 16(a), (b) or (c), the Bank may give effect to the instrument of transfer if the signature of the person signing it is certified to have been affixed in the presence of an officer of the Canadian diplomatic, consular or representative or trade commissioner services while exercising his functions as such, an officer of Her Majesty’s diplomatic or consular services while exercising his functions as such, or a judge of a Court of Record, and the instrument bears the signature and official seal of the person who certifies the signature. Where the registered owner of a bond has died, the Bank, upon receipt of the bond and the appropriate documents specified in subsection (2), shall register ownership of the bond in the name of the estate of the deceased or of his personal representative, as may be appropriate; or may, if such registration is permitted by the terms of the bond, issue a new bond with ownership registered as prescribed in paragraph (a). The appropriate documents referred to in subsection (1) are an authenticated or notarial copy of letters probate of the will of the deceased owner or of letters of administration of his estate, granted by a court or authority in Canada having power to grant probate or administration of such an estate; where the deceased was, at the time of his death, domiciled in the Province of Quebec, proof of death and where the will of the deceased owner was made in notarial form, an authentic copy of that will, where the will was made in holograph form or in a form derived from the laws of England, a copy of the will, certified by the prothononotary, together with a certified copy of the judgment granting probate, an authentic copy of a marriage contract containing an unrevoked gift made in contemplation of death, or where the deceased owner died intestate without having made a marriage contract containing an unrevoked gift made in contemplation of death, a declaration of heredity and, if required, a certified copy of an act of tutorship or curatorship confirmed by a judgment of a court having power to confirm the same; or where the deceased was, at the time of his death, domiciled in a country other than Canada, an authenticated or notarial copy of the probate of the will, letters of administration of his estate or other documents of like import, satisfactory to the Bank, granted by the court or authority of that country having the requisite power in such matters. Where ownership of a bond has been registered in the name of the estate of a deceased person or of his personal representative, it may be transferred upon completion of an instrument of transfer executed in accordance with sections 13 to 18 or, in the discretion of the Bank, upon execution by a person acceptable to the Bank of a sworn declaration, setting forth such facts and information as the Bank may require, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name. Where the registered owner of a bond has died, the Bank may, upon receipt of the bond and the documents specified in subsections (2) and (3), transfer ownership of the bond to a person other than a person specified in subsection (1) or to bearer without first having registered it in the name of the estate of the deceased or of his personal representative, except that if the bond is not transferable by its terms, the Bank shall cancel the bond and issue a new bond with ownership registered in the appropriate name. Subject to subsection (2), where the registered owner of a bond has died, and the Bank is satisfied that no person intends to apply for a grant of letters probate of the will, or letters of administration of the estate of the deceased, and application has been made to the Bank in a form prescribed by the Bank for the transfer of the bond, the Bank may, notwithstanding that it has not been furnished with the documents specified in section 19, if the bond is by its terms transferable, give effect to a transfer of the bond, or if the bond is by its terms not transferable, cancel the bond and issue a new bond for an equal principal amount of like issue, to the person that the Bank is satisfied is entitled thereto by reason of the death of the registered owner. The Bank may give effect to the transfer of a bond, or issue a new bond, to a person pursuant to subsection (1) only where there is an intestacy and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person is entitled to the entire estate; there is a will and that person is the sole beneficiary and evidence satisfactory to the Bank is produced that, under the laws respecting intestacies of the province in which the deceased was domiciled at the time of his death, that person would have been entitled to the entire estate had the deceased died intestate; or the aggregate face value of all bonds of which the deceased was registered as owner at the time of his death did not exceed $20,000. Where a registered bond has been seized pursuant to a writ of exemption or other like process issued out of a court, in the case of a bond that is transferable, upon presentation of the bond and an authenticated copy of the writ of execution or other like process issued out of the court, the Bank may register the sheriff to whom the writ of execution or other like process is directed as owner of the bond or enter his name in the bond accordingly; and in the case of a bond that is not transferable, upon presentation of the bond and an authenticated copy of a writ of execution or other like process issued out of the court, the Bank may redeem the bond and pay the value thereof to the sheriff to whom the writ of execution or other like process is directed. Where a court orders the sale or transfer of a registered bond that is transferable or makes an order vesting such a bond in a person other than the registered owner, if the name of the person who is to be registered as owner is specified in the order of the court, the Bank may, upon presentation of the bond and an authenticated copy of the order, register that person as the owner of the bond and enter his name in the bond accordingly; or if the order of the court authorizes a person to transfer the bond in the place of the registered owner, the Bank may, upon presentation of the bond and an authenticated copy of the order, give effect to an instrument of transfer executed by the person so authorized. Where a court orders the sale of a registered bond that is not transferable or makes an order vesting such a bond in a person other than the registered owner, if the name of the person to whom payment is to be made upon sale of the bond or in whom the bond is vested is specified in the order, the Bank may, upon presentation of the bond and an authenticated copy of the order, redeem the bond and pay the value thereof to the person named in the order as the person to whom payment is to be made or in whom the bond is vested. Where it appears to the Bank that the whereabouts of a person in whose name a bond is registered is unknown and application is made to the Bank for transfer or redemption of the bond, the Bank may, in its discretion, transfer the ownership of or redeem the bond if a bond of indemnity in accordance with subsection 38(1) is given to the Bank. Where a bond is in the possession of Her Majesty or the Bank and the owner of the bond cannot be located, or Her Majesty or the Bank had been requested to retain the bond in safekeeping, the bond may, notwithstanding anything in these Regulations, be treated, on the date of maturity, as though it had been redeemed, and a liability shall be set up in the books of the Department of Finance, in the amount of the bond and any interest that accumulated thereon to the date of maturity, where the bond is registered, in favour of the registered owner; and where the bond is not registered, in favour of the person who establishes that he is the owner, to the satisfaction of the Minister of Finance, if the bond is in the possession of Her Majesty, or to the satisfaction of the Bank, if the bond is in the possession of the Bank. The Bank may register a bond in the name of a married woman or may transfer or redeem a bond upon the authority of the signature of a married woman, without the consent of her husband, whether such married woman is acting as a principal or in a representative capacity. A bond may be registered in the name of a person whether or not he is a minor or is qualified by law to enter into ordinary contracts. Where a bond is registered in the name of a minor who is not unable by reason of immaturity to write his name, an instrument of transfer executed by him shall have the same effect, for the purposes of these Regulations, as if he were of the full age of majority and the Bank may make payments under the bond to him and accept acquittances thereof from him as if he were of the full age of majority; and where evidence is furnished to the Bank that a guardian or tutor of the minor has been appointed, the Bank may make payments under the bond to such guardian or tutor and may accept acquittances in respect thereof executed by such guardian or tutor on behalf of the registered owner, and such guardian or tutor may execute an instrument of transfer on behalf of the registered owner. Where the Bank is satisfied that the registered owner of a bond, being a minor, is unable by reason of immaturity to write his name, an instrument of transfer may be executed on behalf of the registered owner by the guardian; and the Bank may make payments under the bond to the guardian and may accept acquittances in respect thereof executed by such guardian on behalf of the registered owner and for the purposes of this subsection, evidence of age in the form of a certificate of birth or other evidence satisfactory to the Bank may be accepted as proof of age, but where in addition to the guarantee of the signature of the guardian his authority to sign is guaranteed as set forth in subsection 15(2), no such evidence shall be required. For the purposes of subsection (3), guardian, where used with reference to a registered owner of a bond who is unable by reason of immaturity to write his name, means, where the registered owner is resident in the Province of Quebec and evidence satisfactory to the Bank is produced that a tutor has been appointed, the tutor of the registered owner; where the registered owner is resident elsewhere than in the Province of Quebec and evidence satisfactory to the Bank is produced that a guardian has been officially appointed, the guardian of the registered owner; and in any other case, either parent of the registered owner, except that if evidence satisfactory to the Bank is produced that only one parent has actual custody and control of the registered owner, the parent who satisfies the Bank that he has actual custody and control of the registered owner, or if evidence satisfactory to the Bank is produced that neither parent has actual custody and control of the registered owner, the person who satisfies the Bank that he has actual custody and control of the registered owner. The partners in a partnership or the members for the time being of an unincorporated association not being a partnership may be registered as owners of a bond under the firm name or the name of the association. Where members for the time being of an unincorporated association have been registered as owners of a bond as provided in subsection (1), instruments of transfer, acquittances or other documents furnished under these Regulations by the duly authorized officers for the time being of the association shall, for the purposes of these Regulations, be binding on the members of the association. Where bonds are registered as to principal and interest, nothing in these Regulations shall be deemed to require the Bank to make exchanges or registrations or to give effect to instruments of transfer in connection therewith during any period, which the Bank considers reasonable, immediately preceding the date of any interest payment on such bonds. Where a bond or an unmatured coupon belonging to a bond has been damaged, defaced or mutilated and all parts of the bond and all unmatured coupons belonging to it, if any, that, in the opinion of the Bank are material, have been surrendered to the Bank, the Bank may forthwith issue a new bond and appropriate coupons in place of them. If all parts of a bond and unmatured coupons belonging to it, if any, mentioned in subsection (1), are not surrendered to the Bank, the Bank may, if in its opinion the missing parts are material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before a new bond is issued or the Bank may require that the bond and coupons be treated as destroyed, lost or stolen, as the case may be. Subject to this section, where it appears to the Bank that a bond and unmatured coupons attached to it, if any, have been destroyed, lost or stolen, and a bond of indemnity in accordance with section 38 is given to the Bank, the Bank may, in its discretion, issue a new bond and appropriate coupons in place of the bond and coupons that were destroyed, lost or stolen. Before issuing a new bond pursuant to subsection (1), the Bank may, in its discretion, require that the following period shall elapse after notice is received by the Bank of the alleged destruction, loss or theft: six months, in the case of a destroyed bond; six months, in the case of a lost or stolen bond registered as to principal and interest and for which no instrument of transfer to bearer has been executed; one year, in the case of a lost or stolen bond registered as to principal and for which no instrument of transfer to bearer has been executed; or two years, in any other case. Where it appears to the Bank that a bond has been destroyed, lost or stolen after it has been paid for by a subscriber and before it was received by him, the Bank may, in its discretion, waive the waiting period specified in subsection (1) and, where the subscriber is or was an employee of Her Majesty in right of Canada who purchased the bond under the Plan commonly known as the “Employees’ Instalment Purchase Plan”, the Bank, on instructions from the Deputy Minister of Finance, shall issue a new bond without requiring a bond of indemnity to be given to the Bank, but the Deputy Minister of Finance shall not issue such instructions unless the person to whom the new bond is to be issued gives to the Deputy Minister of Finance such information and material, including an undertaking to indemnify the Bank and the Government of Canada for any loss resulting from the issue of the new bond, as the Deputy Minister of Finance considers appropriate. Where it appears to the Bank that a bond that has matured or has been called for payment before maturity has been destroyed, lost or stolen, the Bank may, if a bond of indemnity described in section 38 is given to it, pay to the owner, in redemption of the bond, an amount equal to the amount payable on maturity or on call, as the case may be. Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond, for the purposes of subsection 38(2), shall be deemed to be a bond of which that person is registered as owner as to principal and interest. Where a bond mentioned in subsection (3) is a bond of which a person is registered as owner as to principal, the bond shall, for the purposes of subsection 38(2), be deemed to be a bond of which that person is registered as owner as to principal and interest. Where it appears to the Bank that a non-interest bearing certificate has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the certificate to the registered owner if he gives to the Bank an undertaking to indemnify in accordance with section 37. Where it appears to the Bank that a bond and unmatured coupons attached to it, if any, cancelled by a bank incorporated under the Bank Act or the Quebec Savings Banks Act have been destroyed, lost or stolen while in the custody of the bank or in the course of transit from a branch of the bank to its main office or to any agency of the Bank, if the bank certifies that the bond and each coupon attached thereto was effectively cancelled for purposes and in accordance with arrangements expressly approved by the Bank and gives to the Bank an undertaking to indemnify in accordance with section 37 duly executed on its behalf at its head office and three months have elapsed after the day on which the Bank received notice of the destruction, loss or theft, the Bank may, in its discretion, issue a new bond and appropriate coupons in place of them. Where a bond that is registered or registrable as to principal and interest, whether cancelled or uncancelled, or a coupon bond and unmatured coupons attached to it, if any, that have been cancelled by the Bank are destroyed, lost or stolen while in the custody of the Bank or in the course of transit from any office of the Bank, the Bank may issue a new bond and appropriate coupons in place of them upon executing an undertaking to indemnify the Government of Canada in an amount equal to the principal amount of the missing bond and value of the coupons, if any. Where all parts of a damaged, defaced or mutilated matured coupon that, in the opinion of the Bank are material, are surrendered to the Bank, the Bank may forthwith pay the redemption value of the coupon. If a part of the coupon mentioned in subsection (1) is not surrendered to the Bank, the Bank may, if in its opinion the part is material, require an undertaking to indemnify in accordance with section 37 to be given to the Bank before redeeming the coupon or require that the coupon be treated as if it had been destroyed, lost or stolen, as the case may be. Where it appears to the Bank that a detached coupon has been destroyed, lost or stolen, the Bank may, in its discretion, pay the redemption value of the coupon if a bond of indemnity in accordance with section 38 is given to the Bank and if the following period has elapsed after notice was received by the Bank of the alleged destruction, loss or theft and the date of maturity of the coupon: six months, in the case of a destroyed coupon; or two years, in the case of a lost or stolen coupon. Notwithstanding subsection (1), where a financial institution acceptable to the Bank has requested payment of the value of a matured coupon that has been destroyed, lost or stolen after encashment by it, the Bank may, in its discretion, at any time after three months from the day on which the Bank received notice of the destruction, loss or theft, pay the redemption value of the coupon if that institution gives to the Bank an undertaking to indemnify the Bank in accordance with section 37. Where a bond that has been called for payment prior to maturity is presented for the purpose of being redeemed and any of the coupons dated subsequent to the call date are not attached to the bond, an amount equal to the value of the missing coupons shall be withheld and that amount shall be credited to an appropriate account in the books of the Bank. Where a coupon, in respect of which an amount equal to the value of that coupon has been credited to an account in the books of the Bank in accordance with subsection (1), is presented by a person to the Bank, the Bank may pay that amount to that person. Where it appears to the Bank that a cheque issued in payment of interest on or principal of a bond or otherwise in connection with a bond has been destroyed, lost or stolen, after it has been mailed but before the payee received it, the Bank may issue a duplicate cheque in place of it if the payee gives to the Bank an undertaking to indemnify in accordance with section 37; or after the payee received it, the Bank may issue a duplicate cheque in place of it if the payee or a bank or other institution that has negotiated it gives to the Bank an undertaking to indemnify in accordance with section 37 or a bond of indemnity in accordance with section 38, as the Bank may require. Where it appears to the Bank that an interim certificate has been damaged, defaced, mutilated, destroyed, lost or stolen, the Bank may issue a bond on like conditions to those in which, if the certificate were a coupon bond payable to bearer, the Bank might under these Regulations issue a new bond. A new bond issued in place of a damaged, defaced, mutilated, destroyed, lost or stolen bond or interim certificate as provided for in these Regulations shall be of the same issue and aggregate amount and of like tenor as the one that it is issued to replace. An undertaking to indemnify given to the Bank under these Regulations shall be executed by the owner or payee of the bond, coupon, cheque or certificate that has been damaged, defaced, mutilated, destroyed, lost or stolen, or by any other person acceptable to the Bank and shall undertake to indemnify the Bank and the Government of Canada for any loss resulting from the issue of any new bond or cheque or the making of any payment in respect thereof and shall be in a form satisfactory to the Bank. Subject to subsection (2), a bond of indemnity given to the Bank pursuant to these Regulations shall be executed by a guarantee company approved by the Bank, a financial institution acceptable to the Bank, or a government of a province; undertake to indemnify the Bank and the Government of Canada for any loss resulting from the transfer or redemption of any bond, the issue of any new bond or cheque or the making of any payment in respect of the transfer or redemption of any bond or in respect of any destroyed, lost or stolen bond, coupon, cheque or interim certificate in an amount deemed sufficient by the Bank; and be in a form satisfactory to the Bank. The Bank, in lieu of obtaining a bond of indemnity in accordance with subsection (1), may with respect to the alleged destruction, loss or theft of a bond of which a person is registered as owner as to principal and interest and in respect of which no instrument of transfer to bearer has been executed, or with respect to the alleged destruction, loss or theft of a cheque after the payee received it, accept a bond of indemnity in such amount, in such form and executed by such sureties as the Bank considers advisable. The Bank may, before issuing a bond or cheque or making a payment in accordance with sections 27 to 35 or section 44, require the claimant to furnish a statutory declaration setting out the facts relating to the alleged damage, defacement, mutilation, destruction, loss or theft by reason of which it is to be issued or made. Where a redemption agent for Canada Savings Bonds makes an erroneous payment and the Bank is satisfied that the error did not result from fault or negligence on the part of the redemption agent, the Treasury Board may, upon the recommendation of the Bank, relieve the redemption agent of liability to the Government of Canada and reimburse the Bank, but otherwise, the redemption agent shall reimburse the Bank in the amount of the loss sustained. Where under these Regulations any act is required to be done by the Bank or is effective if done by the Bank, the act is deemed to have been done by the Bank for the purposes of these Regulations if it has been done by an officer or employee of the Bank acting in the course of his duties as such or by a person authorized by the Bank to do that act on behalf of the Bank. Where under these Regulations the Bank is required to or may do an act if it is satisfied or has formed an opinion in respect of any matter, or if any events appear to the Bank to have occurred, it is sufficient for the purposes of these Regulations if the appropriate officer or employee of the Bank satisfies himself or forms the opinion or it appears to him that the events have occurred. In this Part, certificate means War Savings Certificates; (certificat) Registrar means the Bank. (Registraire) This Part applies in respect of War Savings Certificates and Part I applies in respect of War Savings Certificates except in so far as it is inconsistent with this Part. Where it appears to the Registrar that a certificate has been destroyed, lost or stolen, a cheque for an amount equal to the amount payable upon maturity of that certificate may be issued upon completion by the registered owner or by a person acting on his behalf, who is acceptable to the Registrar, of an undertaking in a form approved by the Registrar but unless the Registrar in its discretion otherwise decides, no cheque shall be issued pursuant to this section until at least three months have elapsed from the date upon which the Registrar first received notice of the alleged destruction, loss or theft of the certificate. If the maturity value of all certificates that belonged to a deceased owner is less than $50, production of the documents referred to in section 19 may, at the discretion of the Registrar be dispensed with and the Registrar may redeem the certificates to or in favour of the persons shown to be entitled by a letter from a bank, trust company or other institution acceptable to the Registrar, certifying that letters probate, letters of administration or other documents of like import were in fact granted or executed and giving such further particulars in respect thereof as the Registrar may require. The Post Office Department is hereby authorized to redeem War Savings Stamps at their face value upon presentation at any Post Office in Canada. Bond No Principal Sum $ Maturing Registered in the name of Know all men by these presents that I/we (type or print name) for value received, do hereby assign and transfer unto (Name) (Exact Post Office Address) all right, title and interest in the bond(s) described above absolutely and the Bank of Canada is hereby authorized to make such entries in the books of registration as are required to give effect to such transfer. Dated at this day of 19 Signature of Transferor is hereby guaranteed * *Signature of the registered owner must be guaranteed by a Canadian Chartered Bank or other financial institution acceptable to the Bank of Canada.