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This enactment creates two new securities for use in the debt
markets: a depository bill and a depository note. It also establishes a
legal regime for the new securities. A depository bill or note is a bill of
exchange or promissory note that is intended to be held by a clearing
house and traded in a book-entry system operated by a clearing house.
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The enactment ensures that a purchaser of a depository bill or note
has the same legal rights, with appropriate modifications, as a purchaser
of a bill or note under the Bills of Exchange Act, even though the
depository bill or note will not actually be delivered to a purchaser.
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Clause 20: Section 70 reads as follows:
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70. This Part does not apply
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(a) to any negotiable instrument; or
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(b) to any Crown debt incurred by or in the name of a corporation set
out in Schedule III.
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