Commentary on Sections Specific issues Section 219: Ceasing the business of issuing notes
480.Subsection (1) provides that, if an authorised bank discontinues the issue of banknotes, its note-issuing privilege cannot thereafter be revived.
481.Subsection (2)(a) provides for the banknote regulations or rules to prescribe the procedures to be followed in connection with an authorised bank’s voluntary discontinuation of note issuance. Subsection (2)(b) provides that the banknote regulations or rules may apply to an authorised bank for two years after it stops issuing bank notes. This ensures, in particular, that authorised banks maintain sufficient backing assets until their notes leave circulation.