CREDIT UNION ACT, 1997

AN ACT TO MAKE NEW PROVISION IN RELATION TO CREDIT UNIONS AND FOR CONNECTED PURPOSES. [3rd May, 1997]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I Preliminary and General

1. Short title and commencement.

1.—(1) This Act may be cited as the Credit Union Act, 1997.

• (2) This Act shall come into operation on such day or days as may be fixed by order made by the Minister; and different days may be so fixed for different provisions and for different purposes.

• (3) Without prejudice to the generality of subsection (2), an order under that subsection may make different provision in relation to credit unions registered before the passing of this Act as compared with those registered later.

2. Interpretation.

2.—F1[(1) In the Credit Union Acts 1997 to 2012—

"Act of 1966" means the Credit Union Act 1966;

F2["Act of 2014" means the Companies Act 2014;]

"Advisory Committee" means the committee established under section 180;

"amendment", in relation to the rules of a credit union, includes a new rule, and a resolution rescinding a rule, of the credit union;

"annual accounts" has the meaning given by section 111(6);

"annual general meeting" has the meaning given by section 78(1);

"annual return" means the annual return which a credit union is required by section 124 to send to the Bank;

"Bank" means the Central Bank of Ireland;

"board of directors" means the body which has general control, direction and management of a credit union and to which section 53 relates;

"board oversight committee" has the meaning given by section 76L;

"books and documents" includes accounts and records made in any manner, and "books or documents" shall be construed accordingly;

"business continuity" and "business continuity plan" have the meanings given to them, respectively, by section 76I;

"chair" has the meaning given by section 55A(2);

"civil partner" has the same meaning as it has in the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010;

"cohabitant" has the same meaning as it has in the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010;

"common bond" means a common bond falling within section 6(3);

F2["company" means a company formed and registered under the Act of 2014 or an existing company within the meaning of that Act;]

"compliance officer" has the meaning given by section 76D;

"contravention" includes failure to comply;

F2["corporate credit union" means a credit union registered pursuant to section 6(6);]

"Court" means the High Court;

F3["Covid-19" means a disease caused by infection with the virus SARS-CoV-2 and specified as an infectious disease in accordance with Regulation 6 of, and the Schedule to, the Infectious Diseases Regulations 1981 (S.I. No. 390 of 1981) or any variant of the disease so specified as an infectious disease in those Regulations;]

"credit institution" means—

• (a) a recognised bank within the meaning of the Central Bank Acts 1942 to 2011,

• (b) a trustee savings bank,

• (c) the Post Office Savings Bank, or

• (d) a building society within the meaning of the Building Societies Act 1989;

"credit union" means a society registered as such under this Act, including a society deemed to be so registered by virtue of section 5(3);

"debentures" means any debentures, debenture stock or bonds of a credit union, whether constituting a charge on the assets of the credit union or not;

"financial services legislation", where applicable to credit unions acting under any authorisation from the Bank provided for by law, means—

• (a) the designated enactments within the meaning of section 2 of the Central Bank Act 1942,

• (b) the designated statutory instruments within the meaning of section 2 of the Central Bank Act 1942, and

• (c) the Central Bank Acts 1942 to 2011 together with the statutory instruments made under those Acts;

"general meeting" means an annual general meeting or a special general meeting;

F3["interim period" means—

• (a) the period beginning on the date of the passing of the Finance (Miscellaneous Provisions) Act 2020 and ending on 30 April 2021, and

• (b) such other period (if any) as may be specified by order under section 3A;]

"internal audit charter" has the meaning given by section 76K(2);

"internal audit function" has the meaning given by section 76K(1);

"internal audit plan" has the meaning given by section 76K(3);

"manager", in relation to a credit union, means the individual appointed to the role of manager of the credit union under section 63A;

"management team" has the meaning given by section 55(1)(i);

"meeting", includes, where the registered rules of a credit union so allow, a meeting of delegates appointed by members;

"member of the family", in relation to any person, means that person’s father, mother, grandfather, grandmother, father-in-law, mother-in-law, spouse or civil partner, cohabitant, son, daughter, grandson, granddaughter, brother, sister, half-brother, half-sister, uncle, aunt, nephew, niece, first cousin, step-son, step-daughter, step-brother, step-sister, son-in-law, daughter-in-law, brother-in-law or sister-in-law;

"Minister" means the Minister for Finance;

"nomination committee" has the meaning given by section 56B(1);

"non-qualifying member", in relation to a credit union, has the meaning given by section 17(4);

"officer", in relation to a credit union, includes—

• (a) the chair, the secretary or any other member of the board of directors, a member of a principal Committee, a member of the board oversight committee, F4[a member of the appellate body referred to in section 37,] risk management officer, compliance officer, credit officer or credit control officer of the credit union,

• (b) an employee of the credit union to whom paragraph (a) does not apply, and

• (c) a voluntary assistant of the credit union,

but does not include an auditor appointed by the credit union in accordance with the requirements of this Act;

"operational risk" has the meaning given by section 76E(1);

"organisation meeting" has the meaning given by section 77(1);

"pass book" includes any type of written statement of account;

"persons claiming through a member" includes the executors or administrators and assignees of a member and, where nomination is allowed, the member’s nominee;

"prescribe" means—

• (a) in relation to the Minister, prescribed by regulations made by the Minister under section 182, and

• (b) in relation to the Bank, prescribed by regulations made by the Bank under section 182A;

"principal Committee", in relation to a credit union, means a credit committee, credit control committee or membership committee;

F2["public body" means—

• (a) a Department of State,

• (b) an entity established by or under any enactment (other than the Act of 2014 or a former enactment relating to companies within the meaning of section 5 of that Act),

• (c) any other entity established (other than under the Act of 2014 or a former enactment relating to companies within the meaning of section 5 of that Act) or appointed by the Government or a Minister of the Government, including an entity established (other than under the Act of 2014 or a former enactment relating to companies within the meaning of section 5 of that Act) by a Minister of the Government under any scheme,

• (d) a company a majority of the shares in which are held by or on behalf of a Minister of the Government,

• (e) a subsidiary of a company to which paragraph (d) relates, or

• (f) an entity (other than a subsidiary to which paragraph (e) relates) that is directly or indirectly controlled by an entity to which paragraph (b), (c), (d) or (e) relates;]

"register" means the register maintained under section 8(5);

"registered" means for the time being entered in the register and ‘registration’ shall be construed accordingly;

"regulatory directions" has the meaning given by section 87(3);

"restructuring proposal" has the meaning given by section 45 (1) of the Credit Union and Co-operation with Overseas Regulators Act 2012;

"risk management officer" has the meaning given by section 76C(1);

"risk management system" has the meaning given by section 76B(1);

"savings", in relation to a credit union, has the meaning given by section 27(1);

"share", in relation to a credit union, means each sum of one euro standing to the credit of a member of that credit union in respect of shares in the register of members required by this Act to be kept by that credit union;

"special general meeting" shall be construed in accordance with section 79;

"special resolution" means a resolution which is passed by a majority of not less than three quarters of such members of a credit union present and voting and who are for the time being entitled to vote in person F3[or, subject to the rules of the credit union, by proxy] at any general meeting of which notice, specifying the intention to propose the resolution, has been duly given according to the rules of the credit union;

"strategic objectives" has the meaning given by section 76A(1);

"strategic plan" has the meaning given by section 76A(1);

F2["subsidiary" has the same meaning as it has in the Act of 2014;]

"voluntary assistant", in relation to a credit union, means a member of the credit union who, although not a remunerated employee of the credit union, is engaged in any way in the operation of the credit union.]

• F5[(2) Any reference in this Act to a member present at a meeting means—

• (a) in the case of a member who is not a natural person, being represented at the meeting by a representative, as mentioned in section 82(4), and

• (b) in the case of a member who has appointed a proxy under section 82A, being represented at the meeting by such proxy.]

• F3[(2A) Any reference in this Act to a member present and voting at a general meeting shall be construed as including a reference to a member in attendance and voting at a general meeting conducted wholly or partly by the use of electronic communications technology (within the meaning of section 78A).]

• (3) In this Act a reference to a Part, section or Schedule is to a Part, section or Schedule of or to this Act, unless it is indicated that reference to some other enactment is intended.

• (4) In this Act a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

• (5) In this Act a reference to an enactment includes a reference to that enactment as amended by or under any enactment, including this Act.

3. Orders and regulations.

3.—(1) Any power under this Act to make an order includes power to amend or revoke an order made in the exercise of that power.

• (2) Every order or regulation made under this Act, other than an order under section 1 (2), shall be laid before each House of the Oireachtas as soon as practicable after it is made; and, if a resolution annulling the order or regulation is passed by either such House within the next twenty-one days on which that House has sat after the order or regulation is laid before it, the order or regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

• (3) Except in so far as any provision of this Act otherwise provides, any power conferred by this Act on the F7[Bank] to give directions shall be exerciseable by rules and for the purposes of section 2 of the Statutory Instruments Act, 1947, any rules made by the F7[Bank] under this Act shall be taken to be of a character which affects a class of the public.

• (4) Any order, regulation, direction or rules made under this Act—

• (a) may contain such consequential, supplementary and ancillary provisions as the Minister or, as the case may be, the F7[Bank] considers necessary or expedient; and

• (b) may make different provision for different cases or descriptions of cases.

3A. F8[Extension of interim period.

3A.—The Government may, at the request of the Minister made after consultation with the Minister for Health, from time to time, by order extend the interim period, either generally or with reference to any particular purpose or provision, for such period as they consider appropriate if they are satisfied that, having regard to—

• (a) the threat to public health presented by Covid-19,

• (b) the highly contagious nature of that disease,

• (c) the need to restrict the movement of persons in order to prevent the spread of the disease among the population and the effect that such restriction may have on travel and meetings, and

• (d) the need to mitigate the economic effects arising from Covid-19,

the making of such order is in the public interest.]

4. F9[Expenses incurred by the Minister.

4.—Expenses incurred by the Minister in administering this Act are payable out of money provided by the Oireachtas.]

5. Repeals and transition from the former law.

5.—(1) The following enactments are hereby repealed—

• (a) the Act of 1966; and

• (b) Part III of the Industrial and Provident Societies (Amendment) Act, 1978.

• (2) After the commencement of this subsection, a society may not become registered as a credit union except under this Act.

• (3) A society which, immediately before the commencement of this subsection, was registered as a credit union under the Industrial and Provident Societies Acts, 1893 to 1978, shall, at that commencement, be deemed to be registered as a credit union under this Act and, accordingly—

• (a) after that commencement, no provision of those Acts shall apply to a credit union; and

• (b) except in so far as the rules of a credit union which is deemed to be so registered are contrary to any provision of this Act, those rules, as in existence immediately before the commencement of this subsection, shall be regarded as its registered rules at that commencement.

• (4) Subject to subsection (5), if at any time the F10[Bank] is satisfied that a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, or the Friendly Societies Acts, 1896 to 1977, is carrying on its affairs in such a way that its objects are wholly or substantially those of a credit union, F10[it] may, notwithstanding anything in those Acts, direct the society, within a period specified in the direction—

• (a) to cease all its activities or some activities specified in the direction; or

• (b) to wind up its affairs; or

• (c) to register by virtue of this Act as a credit union;

and a society to which such a direction is given shall comply with it within the specified period.

• (5) Subsection (4) does not apply to a society—

• (a) which was registered under the Industrial and Provident Societies Acts, 1893 to 1936, between 24th January 1962 and 31st August 1966; and

• (b) the objects of which have at all times been wholly or substantially those of a credit union.

• (6) After the commencement of this subsection, a society the objects or proposed objects of which are wholly or substantially those specified in section 6 (2) may not be registered under the Industrial and Provident Societies Acts, 1893 to 1978.

• (7) Section 3 (3) shall not apply to directions under subsection (4).

PART II Registration and Membership

Registration

6. Conditions for registration as a credit union.

6.—(1) A society may be registered under this Act as a credit union if the F11[Bank] is satisfied that each of the following conditions is fulfilled—

• (a) the society is formed for the objects specified in paragraphs (a) to (c) of subsection (2) and for no other purposes beyond those specified in paragraphs (d) to (g) of that subsection;

• (b) admission to membership of the society is restricted to persons each of whom has, in relation to all the other members, at least one of the common bonds specified in subsection (3);

• (c) it has at least 15 members who are of full age;

• (d) its rules comply with section 13;

• (e) the place which under those rules is, or is to be, the society's registered office is in the State;

• (f) F12[…]

• (g) it has in force (or will have in force if registered) such a policy of insurance as is required by section 47.

• (2) The objects referred to in subsection (1)(a) are—

• F13[(a) the promotion of the accumulation of savings by its members;]

• (b) the creation of sources of credit for the mutual benefit of its members at a fair and reasonable rate of interest;

• (c) the use and control of members' savings for their mutual benefit;

• (d) the training and education of its members in F13[the use of money];

• (e) F14[…];

• (f) the improvement F13[of the well-being of the members’ community;] and

• (g) subject to section 48, the provision to its members of such additional services as are for their mutual benefit.

• (3) The common bonds referred to in subsection (1)(b) are—

• (a) following a particular occupation;

• (b) residing or being employed in a particular locality;

• (c) being employed by a particular employer or having retired from employment with a particular employer;

• (d) being a member of a bona fide organisation or being otherwise associated with other members of the society for a purpose other than that of forming a society to be registered as a credit union;

• (e) any other common bond approved by the F11[Bank].

• (4) In ascertaining whether a common bond exists between the members of a society, the F11[Bank]—

• (a) shall have regard to the qualifications which are stated in the rules to be required for admission to membership of the society, and

• (b) may, if F11[it] considers it proper in the circumstances of the case, treat the fact that admission to membership is restricted as mentioned in subsection (1)(b) as sufficient evidence of the existence of a common bond.

• (5) For the purposes of this Act, if the rules of a credit union so provide, a person shall be treated as having the qualification required for admission to membership stated in those rules if he is a member of the same household as, and is a member of the family of, another person who is a member of the credit union and who has a direct common bond with those other members.

• (6) ...

• (7) ...

• (8) ...

• (9) ...

• F15[(10) Where a website is maintained by or on behalf of a credit union, the credit union shall publish, on the website maintained by it or on its behalf, as the case may be—

• (a) a description of the common bond of the credit union, or

• (b) where the common bond of the credit union is or includes that specified in paragraph (b) of subsection (3), a map on which the locality concerned is marked.

• (11) Where no website is maintained by or on behalf of a credit union, the credit union shall include in its annual accounts—

• (a) a description of the common bond of the credit union, or

• (b) where the common bond of the credit union is or includes that specified in paragraph (b) of subsection (3), a map on which the locality concerned is marked.]

6A. F18[Supplemental provisions relating to registration, etc., under section 6 of Principal Act.

6A.—(1) The Bank may impose such conditions, if any, as the Bank considers to be necessary to protect, with effect from registration under this Part, the interests of the members of the society seeking registration and any such conditions shall be a condition for registration as a credit union.

• (2) The conditions imposed by the Bank under subsection (1) may include requiring a credit union—

• (a) to notify the Bank of any events of such significance that could materially affect the credit union including any change to the strategic plan of the credit union;

• (b) to operate a more limited business model agreed with the Bank;

• (c) to cause to be undertaken an independent review of the credit union’s business within 12 months in order to ensure that the credit union is complying with all legal and regulatory requirements.

• (3) Any of the conditions of registration may be amended or revoked by the Bank if, in the opinion of the Bank—

• (a) the amendment or revocation is necessary to protect the interests of the credit union’s members, or

• (b) the conditions concerned have become spent or obsolete and should be revoked.

• (4) Whenever the Bank proposes to impose a condition in relation to a registration or to amend the conditions of a registration—

• (a) it shall notify in writing the society seeking registration under this Part or the credit union concerned, as the case may be—

• (i) that it intends to impose one or more than one condition in relation to the registration or to amend the existing conditions of the registration imposed under this section, as the case may be, and of its reasons for so doing, and

• (ii) that the society or credit union concerned, as the case may be, may, within 15 working days after the date of the giving of the notification, make representations in writing to the Bank in relation to the imposition or amendment, as the case may be, and shall specify in the notification, the condition or the amendment, as the case may be,

and

• (b) the society or credit union concerned, as the case may be, may make such representations to the Bank within the time referred to in paragraph (a)(ii).

• (5) Before deciding to impose conditions of registration, or an amendment of conditions of the registration, under this section, as the case may be, the Bank shall consider any representations duly made to it under subsection (4)(b) and, after so considering, the Bank may—

• (a) decide to impose the conditions of registration, or the amendment of the conditions of the registration, under this section, as the case may be,

• (b) decide to impose the conditions or amend the conditions of the registration under this section, as the case may be, that differ from those specified in the notification concerned, but only if the difference results in the conditions concerned being no more onerous than would be the case had the Bank decided to impose the conditions or amend the conditions of the registration, as the case may be, in accordance with the notification concerned, or

• (c) without prejudice to subsections (1) to (3), decide not to impose the conditions or not to amend the conditions of the registration.]

7. Application for registration as a credit union.

7.—(1) An application for the registration of a society as a credit union shall be made to the F19[Bank] and shall be signed by 15 members of the society, all of whom have the same common bond and one of whom shall be the secretary.

• (2) An application under subsection (1) shall be accompanied by two printed copies of the society's rules.

8. Acknowledgement or refusal of registration.

8.—(1) If the F23[Bank] is satisfied that a society which has made an application for registration as a credit union has complied with the provisions of this Act as to such registration, the F23[Bank] shall issue to the society, as a credit union, an acknowledgement of registration assigning it a registered number.

• (2) Unless the contrary is shown, an acknowledgement of registration issued under subsection (1) shall be sufficient evidence that the society concerned is registered as a credit union.

• F24[(3) If the Bank refuses to register as a credit union a society that has made an application for registration, it shall, by notice in writing, inform the society of the refusal. The notice must include a statement setting out the grounds for the refusal.]

• F24[(4) A decision of the Bank refusing to register a society as a credit union is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.]

• (5) The F23[Bank] shall enter the name of every credit union in a register maintained for the purposes of this Act (being a continuation of the register kept for the purposes of the Act of 1966).

9. Effect of registration.

9.—(1) By virtue of its registration, a credit union shall be a body corporate known by its registered name (by which it may sue and be sued) with perpetual succession, a common seal and limited liability.

• (2) The registration of a credit union shall vest in the credit union all property for the time being vested in any person in trust for the credit union and all proceedings pending by or against the trustees of the credit union may be brought or continued by or against the credit union in its registered name.

• (3) Legal proceedings in respect of any contract or other transaction—

• (a) entered into by an unincorporated society before the date on which it becomes a credit union, or

• (b) purporting to be entered into by such a society or by any person on its behalf before that date,

may, on or after that date, be brought by or against the credit union, subject to the Statute of Limitations, 1957, as if it had been registered as a credit union at the date of the contract or other transaction.

10. Registered name.

10.—(1) The words “credit union” or “comhar creidmheasa” shall be included in the name of every credit union.

• (2) The name of every credit union shall end with the word “Limited” or “Teoranta” which may be abbreviated to “Ltd.” or “Teo.” respectively.

• (3) A credit union shall not use any name or title other than its registered name.

• (4) A society shall not be registered—

• (a) under a name which includes the word “bank”, “banker” or “banking” or any other word which is a translation, variant or derivative of any of those words, or

• (b) under any other name which, in the opinion of the F25[Bank], is undesirable.

• (5) A society shall not be registered under a name identical with that of an existing credit union or so nearly resembling such a name as to be likely to mislead members of the public as to its identity.

• (6) As soon as practicable, every credit union shall cause its registered name to be painted or affixed, and to be kept painted or affixed, in a conspicuous position and in letters easily legible, on the outside of its registered office and every other office or place in which the business of the credit union is carried on, and shall have that name engraved in legible characters on its seal and set out in legible characters—

• (a) in all notices, advertisements and other official publications of the credit union;

• (b) in all business letters of the credit union;

• (c) in all bills of exchange, promissory notes, endorsements, cheques, orders for money or goods and other instruments purporting to be signed by or on behalf of the credit union; and

• (d) in all bills, invoices, receipts, and letters of credit of the credit union.

• F26[(7) Notwithstanding subsection (6) a credit union which is a sub-office of a registered credit union may cause its name, along with the registered name of the credit union, to be painted or affixed, and to be kept painted or affixed, in a conspicuous position and in letters easily legible, on the outside of its office.]

11. Change of registered name.

11.—(1) A credit union may not change its name except in accordance with this section.

• (2) A credit union may change its name—

• (a) by a resolution for the purpose passed at a general meeting of the credit union after the giving of such notice as is required by the rules of the credit union for such a resolution or, if the rules do not make special provision as to notice of such resolution, after the giving of such notice as is required by the rules for a resolution to amend the rules; and

• (b) with the prior approval in writing of the F27[Bank].

• F28[(3) A decision of the Bank declining to give its approval under subsection (2)(b) is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.]

• (4) A change in the name of a credit union shall not affect any right or obligation of the credit union, or of any member thereof, and any pending legal proceedings may be continued by or against the credit union notwithstanding its new name.

• (5) Where, in the opinion of the F27[Bank], a credit union is (through inadvertence or otherwise) for the time being registered under a name which is undesirable, the F27[Bank]—

• (a) within one year of its being registered under that name, or

• (b) in the case of a society deemed to be registered under this Act by virtue of section 5 (3), within one year from the commencement of this section,

F29[may decide to direct and direct the credit union to change its name to a name approved by the Bank].

• (6) A credit union shall comply with a direction given to it under subsection (5).

• (7) Where a credit union changes its name under this section, the F27[Bank]—

• (a) shall enter the new name in the register in place of the former registered name; and

• (b) shall issue to the credit union an acknowledgement of registration, altered to meet the circumstances of the case.

• (8) Section 3 (3) shall not apply to a direction under subsection (5).

12. Protection of use of seal and registered name of credit union.

12.—(1) The seal of a credit union shall be used only under the authority of a resolution of the board of directors and shall be attested by the signatures of two directors of the credit union and the countersignature of the secretary for the time being.

• (2) Any officer of a credit union, or any other person acting on a credit union's behalf, who—

• (a) uses any seal purporting to be a seal of the credit union which does not have the credit union's registered name engraved on it in legible characters, or

• (b) issues or authorises the issue of any document such as is mentioned in paragraph (a), paragraph (b) or paragraph (d) of subsection (6) of section 10 in which that name is not set out in legible characters, or

• (c) signs or authorises to be signed on behalf of the credit union any document such as is mentioned in paragraph (c) of that subsection in which that name is not so set out,

shall be guilty of an offence.

• (3) Subject to subsection (4), any person, other than a credit union, who—

• (a) uses in reference to himself, a name, title or descriptive expression containing the words “credit union ” or “comhar creidmheasa” or any cognate term or any derivative of those words, or

• (b) represents himself as being a credit union,

shall be guilty of an offence.

• (4) Subsection (3) does not apply to—

• (a) the use by an officer of a title or descriptive expression indicating his office or post with the credit union; or

• (b) the use of the term “Irish League of Credit Unions” by the unincorporated association having that name immediately before the passing of this Act; or

• (c) the use with reference to an association or group of credit unions of a name which has been approved in writing by the F30[Bank].

Rules

13. Rules.

13.—(1) The rules of a credit union shall be in such form as the F31[Bank] may determine and shall contain—

• (a) provisions with respect to the matters in the First Schedule; and

• (b) such additional provisions as the F31[Bank] may determine, after consultation with the Advisory Committee and such other bodies as appear to F31[it] to be expert or knowledgeable in matters relating to credit unions.

• (2) The rules of a credit union may specify the form of any instrument necessary for carrying the purposes of the credit union into effect.

• (3) An acknowledgement of registration issued to a credit union under this Part shall constitute an acknowledgement, and, unless the contrary is proved, be sufficient evidence of the registration of the rules of that credit union in force at the date of the acknowledgement of the registration of the credit union.

14. Amendment of registered rules.

14.—(1) The rules of a credit union shall not be amended except by a resolution passed by not less than two-thirds of the members of the credit union present and voting at an annual general meeting or at a special general meeting called for the purpose of considering a resolution proposing an amendment of the rules.

• (2) An amendment of the registered rules of a credit union shall not be valid until the amendment has been registered under this Act, for which purpose two copies of the amendment, signed by four members, one of whom shall be the secretary and another a director, shall be sent to the F34[Bank].

• (3) Subsection (2) shall not apply to a change in the name of a credit union, but, where a change in the name of a credit union is made in accordance with section 11, the change in the credit union’s name shall be registered by the F34[Bank] as an amendment of the credit union's rules.

• F35[(3A) Before sending a copy of the amended rules to the Bank under subsection (2) the credit union is required to satisfy itself that the amendment is not contrary to the financial services legislation.]

• F37[(4) Except where the Bank is satisfied that an amendment of a credit union’s rules sent to it under subsection (2) is not in the interests of the proper and orderly regulation of the credit union, the Bank shall issue to the credit union, within 3 months of its receipt of the amendment, an acknowledgement of registration which, unless the contrary is proved, shall be sufficient evidence that the amendment is duly registered.]

• F36[(5) If the Bank is not satisfied that an amendment of a credit union’s rules sent to it under subsection (2) is F37[in the interests of the proper and orderly regulation of the credit union], it shall refuse to register the amendment, in which case it shall give the credit union a notice of its refusal to register the amendment. The notice shall include a statement setting out the grounds for the refusal.]

• F38[(5A) A decision of the Bank refusing to register an amendment of a credit union’s rules under subsection (5) is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.]

• (6) Notwithstanding anything in the rules of a credit union, the board of directors may, by resolution passed during the transitional period, make such amendments of the rules of the credit union as may be consequential on the provisions of this Act.

• (7) For the purposes of subsection (6), the transitional period is the period of one year from the commencement of this section or such longer period as may be determined by the F34[Bank].

• (8) Notwithstanding anything in subsection (4), after the expiry of one year from the commencement of this section, the F34[Bank] shall not be required to register any amendment of a credit union's rules unless such consequential amendments of the registered rules as are mentioned in subsection (6) either—

• (a) have been made before the F34[Bank] receives the amendment; or

• (b) are to be effected by the amendment.

• F39[(9) Notwithstanding anything in the rules of a credit union, the board of directors may, by resolution passed during the second transitional period, make such amendments of the rules of the credit union as may be consequential on the provisions of the Credit Union (Amendment) Act 2023.

• (10) For the purposes of subsection (9), the second transitional period is the period of one year from the commencement of section 7(d) of the Credit Union (Amendment) Act 2023 or such longer period as may be determined by the Bank.

• (11) Notwithstanding anything in subsection (4), after the expiry of one year from the commencement of section 7(d) of the Credit Union (Amendment) Act 2023, the Bank shall not be required to register any amendment of a credit union’s rules unless such consequential amendments of the registered rules as are mentioned in subsection (9) either—

• (a) have been made before the Bank receives the amendment, or

• (a) are to be effected by the amendment.]

15. Rules to bind members.

15.—(1) Subject to subsection (2), the registered rules of a credit union shall bind the credit union and all members of it and all persons claiming through them respectively to the same extent as if—

• (a) each member had F41[subscribed the member’s name and affixed the member’s seal] to those rules; and

• (b) there were contained in those rules a covenant on the part of each member and any person F41[claiming through the member] to conform to those rules subject to the provisions of this Act.

• (2) A member of a credit union shall not, F41[without the member’s consent] in writing having been first obtained, be bound by any amendment of the credit union's rules registered F41[after they became a member], if and so far as that amendment—

• (a) F41[requires the member to subscribe] for more shares than the number F41[held by the member] at the date of registration of the amendment; or

• (b) F41[requires the member to pay] upon the shares so held any sum exceeding the amount unpaid upon them at that date; or

• (c) in any other way F41[increases the member’s liability] to contribute to the share capital of the credit union.

16. Provision of copies of rules.

16.—(1) A copy of the rules of a credit union shall be supplied by the credit union to any person who demands it, on payment of such fee, not exceeding the permitted maximum, as may be determined by the credit union.

• (2) The permitted maximum referred to in subsection (1) is £1 or such larger sum as may for the time being be prescribed.

Membership

17. Requirements of, and qualifications for, membership.

17.—(1) The minimum number of members of a credit union at any time shall be 15 except that, in the case of a credit union which—

• (a) by virtue of subsection (3) of section 5, is at the commencement of that section deemed to be registered as a credit union, and

• (b) has at that commencement a membership of not less than 7, but less than 15,

the minimum number of members at any time shall be the number of members on the register of the credit union at that commencement.

• (2) F42[Subject to subsection (2A), membership of a credit union] shall be limited to, and consist of, the signatories to the application to register the society as a credit union and such other persons, having the common bond set out in the rules of the credit union, as have been duly admitted members of the credit union in accordance with the rules and comply with such of the rules as relate to membership.

• F43[(2A) Where a signatory to an application to register a society as a credit union has signed on behalf of a non-natural person, the non-natural person and not the signatory shall be the member of the credit union.]

• (3) A person shall not be a member of a credit union F42[unless the person has] at least one fully paid-up share in the credit union, but the rules of the credit union shall not require a person to have more than F44[€10], or such larger sum as may be prescribed, in fully paid-up shares as a condition of membership.

• F45[(3A) Subject to the rules of the credit union concerned, a member who held common bond of that credit union shall not cease to be a member solely because that member no longer holds the common bond of that credit union.]

• F46[(4) If a member of a credit union ceases to have the common bond required of members of that credit union, any such member (referred to as a non-qualifying member) shall be left out of account in determining for any purpose whether a common bond exists between the members of the credit union.]

• (5) Subject to any provision to the contrary in the rules of a credit union, F42[a natural person] under the age of sixteen—

• (a) may be a member of the credit union, and

• (b) subject to subsection (6), may enjoy all the rights of membership, other than voting rights, and can give all necessary receipts.

• F47[(6) Notwithstanding anything in subsection (5), a member of a credit union who is not of full age may not be a member of the board of directors or of a principal Committee or an office manager of the credit union.]

• F42[(7) Notwithstanding any other provision of this Act, a body (whether incorporated or unincorporated), other than a corporate credit union, may be admitted to, and retain membership of, a credit union, with the same rights and obligations as a natural person where—

• (a) the majority of the members of the body are, and continue to be, eligible for membership of the credit union,

• (b) the body has the common bond, set out in the rules of the credit union, in relation to the other members of the credit union, or

• (c) the body is a public body designated in an order made under subsection (7B) as being eligible for membership of—

• (i) the credit union, or

• (ii) a category of credit unions to which the credit union belongs.]

• F43[(7A) For the purposes of ascertaining whether a body has the common bond referred to in paragraph (b) of subsection (7)—

• (a) a body shall be treated as following a particular occupation where its business is that of a person following the occupation, and

• (b) a body shall be treated as residing in a particular locality where it has a place of business in that locality.

• (7B) The Minister may, following consultation with the Advisory Committee and such other bodies as appear to the Minister to be expert or knowledgeable in matters relating to credit unions, by order designate a public body as being eligible for membership of a credit union or a specified category of credit unions, which order shall specify the reasons for which the public body is so eligible.

• (7C) The reasons referred to in subsection (7B) shall—

• (a) where a credit union is specified in the order, be reasons relating to the common bond of the credit union, or

• (b) where a category of credit unions is specified in the order, be reasons relating to the common bonds of credit unions falling within that category.]

• (8) A member of a credit union shall not be excluded from membership by any amendment of the credit union's rules registered after he became a member.

• F48[(9) A credit union shall—

• (a) in the case of a credit union registered before the commencement of section 9(k) of the Credit Union (Amendment) Act 2023, not later than 6 months after such commencement, and

• (b) in the case of a credit union registered after such commencement, not later than 6 months after its registration,

put in place a process, approved by the board of directors, for the approval of applications for membership of the credit union.]

18. Appeal against refusal of membership.

18.—(1) A person who applies for membership of a credit union in accordance with its rules and is refused membership may appeal against the refusal to a Judge of the District Court for the district in which the registered office of the credit union is situated.

• (2) Notice of an appeal under this section shall be in writing and shall set out the grounds on which the appeal is based; and, on the hearing of the appeal, the District Court may either confirm the refusal of membership or direct the credit union to admit the appellant to membership.

• (3) The decision of the District Court on an appeal under this section shall be final, except that any question of law arising on the appeal may be referred to the Court for its determination; and, by leave of the Court, an appeal shall lie to the Supreme Court from any such determination of the Court.

19. Expulsion and withdrawal from credit union.

19.—(1) A member of a credit union may be expelled from the credit union F53[by a resolution for the member’s expulsion] passed by not less than two-thirds of the members present and voting at a special general meeting called for the purpose, provided that the member concerned—

• (a) is given at least 21 days' notice in writing of the meeting and the proposed resolution; and

• (b) is given a reasonable opportunity of being heard at the meeting.

• (2) A member who is expelled from a credit union may appeal against the expulsion to a Judge of the District Court for the district in which the registered office of the credit union is situated.

• (3) Notice of an appeal under this section shall be in writing and shall set out the grounds on which the appeal is based; and, on the hearing of the appeal, the District Court may either confirm or cancel the expulsion.

• (4) Subsection (3) of section 18 shall apply to an appeal under this section as it applies to an appeal under that section.

• (5) A member of a credit union may withdraw from membership of the credit union by giving notice in accordance with the rules of the credit union.

• F53[(6) Subject to subsections (7) and (8), all moneys due in respect of withdrawable shares and deposits by a credit union to a member who withdraws or is expelled from the credit union shall be paid to the member after deduction of all moneys due from the member to the credit union; and the nominal value of non-withdrawable shares held by a member who is expelled (but not one who withdraws) may also be paid to the member (after deduction of all moneys so due).]

• (7) Notwithstanding anything in its rules or in any contract, a credit union may, if it thinks fit, postpone payment of the whole or any part of the moneys to be paid as mentioned in subsection (6) until the end of the period of 60 days beginning on the date of the expulsion or withdrawal of the member concerned.

• (8) No payment in respect of shares shall be made by a credit union to a withdrawing or expelled member while any claim due on account of deposits is unsatisfied and no payment of any description shall be made to such a member unless all his liabilities (including contingent liabilities) to the credit union, whether as borrower, guarantor or otherwise, have been fully discharged or otherwise fully provided for by a person other than the credit union.

• (9) The withdrawal or expulsion of a member from a credit union shall not operate to relieve that member from any liability to the credit union which exists at the time of the withdrawal or expulsion.

20. Remedy for debts from members.

20.—(1) All money payable to a credit union by a member of it shall be recoverable summarily as a civil debt by the credit union from the member.

• (2) A credit union shall have a lien on the shares, deposits, dividends and interest of any member for any debt due to the credit union from that member, and may set off any sum credited to the member on those shares, deposits, dividends and interest in or towards the payment of that debt.

21. Nomination of property in credit union.

21.—(1) Subject to subsections (2) to (4), a member of a credit union who is of or over the age of sixteen may, by a written statement signed by him and—

• (a) made in any book kept at the credit union's registered office, or

• (b) delivered at or sent to that office during his lifetime,

nominate a person or persons to become entitled at his death to the whole, or such part or parts as may be specified in the nomination, of any property in the credit union (whether in savings, loans, insurances or otherwise) which he may have at the time of his death.

• (2) The nomination by a member of a credit union under subsection (1) of a person who is at the date of the nomination an officer of the credit union shall not be valid unless that person is a member of the nominator's family.

• F54[(3) For the purpose of the disposal of any property which is the subject of a nomination under subsection (1), if, on the date of the nominator’s death, the amount of the nominator’s property in the credit union comprised in the nomination exceeds the amount standing specified, on that date, for the purposes of this subsection in an order made by the Minister under subsection (10), the nomination shall be valid to the extent of the amount standing so specified, but not further or otherwise.]

• (4) A nomination by a member of a credit union under subsection (1) may be revoked or varied by a subsequent nomination by him under that subsection or by any similar document in the nature of a revocation or variation signed by the nominator and delivered to the credit union's registered office during his lifetime; but such a nomination shall not be revocable or variable by the will of the nominator or by any codicil to his will.

• (5) Each credit union shall keep a record—

• (a) of the names of all persons nominated by its members under subsection (1) and such other details as will positively identify the nominees; and

• (b) of all revocations or variations (if any) of nominations under that subsection.

• (6) The marriage of a member of a credit union shall operate as a revocation of any nomination made by him under subsection (1) before his marriage, but if, in ignorance of a later marriage, an officer of the credit union transfers any property of that member in pursuance of such a nomination, the receipt of the nominee shall be a valid discharge to the credit union, and the credit union shall be under no liability to any other person claiming the property.

• (7) A nomination under subsection (1) shall be revoked by the death of the nominee before the death of the nominator.

• F55[(8) The signature of a person making a written statement referred to in subsection (1) shall be witnessed by 2 other persons.

• (9) Each of the witnesses referred to in subsection (8) shall witness the signature of the person making the statement by applying the witness’s own signature to the statement.

• (10) The Minister may, after consultation with the Advisory Committee and such other body as the Minister considers appropriate in the circumstances, by order specify an amount for the purpose of subsection (3).]

22. Proceedings on death of nominator.

22.—(1) Subject to subsection (2), where any member of a credit union has made a nomination under section 21, the F56[credit union], on receiving satisfactory proof of the death of that member, and if and to the extent that the nomination is valid under subsection (1) of that section, shall in the case of each person entitled under the nomination either transfer to him, or pay him the full value of, the property to which he is so entitled.

• (2) Where any of the property comprised in a nomination under section 21 consists of shares in the credit union, subsection (1) shall have effect notwithstanding that the rules of the credit union declare the shares in the credit union not to be transferable; but if the transfer of any shares comprised in the nomination in the manner directed by the nominator would raise the shareholding of any nominee beyond the maximum for the time being permitted in the case of that credit union, the F56[credit union]—

• (a) shall not transfer to that nominee more of those shares than will raise his shareholding to that maximum; and

• (b) shall pay him or transfer to his deposit account the value of any of those shares not transferred.

• (3) Where any sum falls to be paid under subsection (1) or subsection (2) to a nominee under the age of sixteen years, the credit union may pay that sum to either parent, or to a guardian, of the nominee or to any other person of full age—

• (a) who will undertake to hold it on trust for the nominee or to apply it for his benefit; and

• (b) whom the credit union may think a fit and proper person for the purpose;

and a receipt for that sum signed by that parent, guardian or other person shall be a sufficient discharge to the credit union for all money so paid.

23. Provision for small payments on death.

23.—(1) If a member of a credit union dies and, at his death, his property in the credit union (whether in savings, loans, insurance or otherwise)—

• F57[(a) does not in the whole exceed the amount standing specified, on the date of the member’s death, for the purpose of this subsection in an order made by the Minister under subsection (2).]

• (b) is not the subject of a nomination under section 21,

the board of directors may, without letters of administration or probate of any will, distribute that property among such persons as appears to the board (on such evidence as they consider satisfactory) to be entitled by law to receive it.

• F57[(2) The Minister may, after consultation with the Advisory Committee and such other body as the Minister considers appropriate in the circumstances, by order specify an amount for the purpose of subsection (1).]

24. Payments in respect of mentally incapable persons.

24.—F58[…]

25. Validity of payments to persons apparently entitled.

25.—All payments or transfers made by the board of directors of a credit union under section 23 F59[…] to a person appearing to the board at the time of payment or transfer to be entitled under the section in question shall be valid and effectual against any demand made upon the board or credit union by any other person.

PART III Operation of Credit Unions

Business and raising of funds

26. General principles.

26.—(1) A credit union shall not carry on any business or activity which is not appropriate or incidental to the objects for which, in accordance with section 6, it is formed.

• (2) Subject to subsection (1), a credit union may—

• (a) acquire property of any description permitted by or under this Act; and

• (b) do anything expedient for accomplishing, or conducive to or consequential upon, the objects for which the credit union is formed.

• (3) Where any act or other thing is done by a credit union—

• (a) which it had no power to do, but

• (b) which, if it had been empowered to do, would have been lawfully and effectively done,

that act or thing shall be effective in favour of any person who, relying on that act or thing, dealt with the credit union in good faith.

• (4) The Court may, on the application of a member or the F60[Bank] restrain a credit union from doing any act or thing which it has no power to do.

• (5) Without prejudice to subsection (4), if a credit union knowingly contravenes subsection (1), it shall be guilty of an offence.

27. Raising of funds by shares and deposits.

F61[27.—(1) A credit union may raise funds to be used for its objects—

• (a) by the issue to its members of shares in the credit union (which may be withdrawable or non-withdrawable), and

• (b) by the acceptance of money on deposit from a member,

and the cumulative amount of such shares in, and money on deposit (if any) with, the credit union is referred to in this Act as ‘savings’.

• (2) For the adequate protection of the savings of members of credit unions the Bank may prescribe requirements and limits for savings, including—

• (a) the maximum amount of savings (expressed as a monetary amount or as a percentage of some monetary amount or determinable monetary amount) or category of savings a credit union member may hold,

• (b) the ratio of total deposits from members that may be held by a credit union to total shares issued to members, and

• (c) any other requirement or limit which the Bank considers necessary to prescribe.

• (3) In prescribing matters for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements imposed by the regulations made by it are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.]

27A. F62[Protection of members' savings.

27A.—(1) In addition to its reporting functions under the Credit Union Acts 1997 to 2012 and complying with any matter prescribed under those Acts, a credit union shall maintain appropriate oversight, policies, procedures, processes, practices, systems, controls, skills, expertise and reporting arrangements to ensure the protection of members’ savings and that it complies with requirements imposed under the financial services legislation.

• (2) Without prejudice to the generality of subsection (1), the Bank may make regulations prescribing—

• (a) certain oversight, policies, procedures, processes, practices, systems, controls, skills, expertise and reporting arrangements which the credit union is required to maintain where the Bank considers this is appropriate in the interest of protecting members’ savings or otherwise appropriate to ensure compliance with the requirements imposed under financial services legislation;

• (b) requirements in relation to the oversight, policies, procedures, processes, practices, systems, controls, skills, expertise and reporting arrangements required to be maintained under this section.]

Shares and deposits

28. Shares: general provisions.

28.—(1) All shares in a credit union shall be of F63[€1] denomination and, subject to the rules of the credit union, may be subscribed for either in full or by periodical or other subscriptions, but no share shall be allotted to a member until it has been fully paid in cash.

• (2) A credit union shall not issue to a member a certificate denoting ownership of a share.

• (3) All withdrawable shares in a credit union shall have equal rights.

• (4) All non-withdrawable shares in a credit union shall have equal rights, and repayments in respect of such shares shall not be capable of being made except as provided by this Act.

• (5) Notwithstanding subsection (1), whenever its board of directors so recommends, a credit union may apply any sum standing to the credit of its reserves F64[(other than the reserves required to be held under section 45)] to the payment up of shares, and may issue the shares to members as fully paid-up bonus shares in the proportions to which the members would have been entitled if the sum concerned had been distributed by way of dividend.

29. Transfer of shares.

29.—(1) A member of a credit union may transfer a share in the credit union to another member so long as—

• (a) the number of shares held by that other member does not exceed the limit imposed under this Act; and

• F65[(b) if the credit union so requires in any case, the transfer has the approval of the credit union.]

• (2) No charge shall be made by a credit union in respect of a transfer of shares by a member, and such a transfer shall entitle the transferee to any dividends in respect of the transferred shares which are unpaid at the date of the transfer.

• F65[(3) If, in a case where the credit union has imposed a requirement under subsection (1)(b), the credit union refuses to approve the proposed transfer of shares in the credit union by a member, the member may appeal against the refusal to a Judge of the District Court for the district in which the registered office of the credit union is situated.]

• (4) Notice of appeal under subsection (3) shall be in writing and shall set out the grounds on which the appeal is based; and, on the hearing of the appeal, the District Court may either confirm the refusal or direct the F65[credit union] to approve the transfer.

• (5) A decision of the District Court on an appeal under subsection (3) shall be final, except that any question of law arising on the appeal may be referred to the Court for its determination; and, by leave of the Court, an appeal shall lie to the Supreme Court from every such determination.

30. Dividends on shares.

30.—(1) At each annual general meeting of a credit union, a dividend on shares, not exceeding the permitted maximum, may be declared in respect of the preceding financial year by a resolution passed by a majority of the members present and voting.

• (2) A dividend so declared shall be paid on all shares in the credit union but, in the case of shares which have been held during part only of the financial year to which the dividend relates, only a proportional part of the dividend shall be paid and, in determining such a proportional part, a part of a month may be disregarded.

• (3) The permitted maximum referred to in subsection (1) is ten per cent. of the nominal value of the shares of the credit union or such other percentage of that value as may for the time being be prescribed.

• (4) The rate of dividend declared under subsection (1) shall not exceed the rate recommended to the members by the board of directors.

• (5) No dividend on shares shall be paid otherwise than out of—

• (a) surplus funds in respect of the year in question F66[…] which are available for that purpose and have been accumulated after meeting the F67[requirements to hold reserves in accordance with section 45]; or

• (b) a reserve set aside in previous years to provide for dividends.

31. Interest on deposits.

31.—(1) Subject to subsections (2) and (3), a credit union may pay interest on deposits at different rates determined from time to time by the board of directors.

• (2) The rate of any interest payable at any time by a credit union on deposits of a particular class shall be the same for all deposits of that class.

• (3) A credit union shall ensure that the F68[rate of interest offered] at any time on deposits of any class does not exceed the rate of return received by the credit union from the employment of its funds, whether in the form of loans or investments.

• (4) F69[…]

32. Restrictions on withdrawal of shares and deposits.

32.—(1) Notwithstanding anything in the rules of a credit union or in any contract, a credit union may require not less than 60 days’ notice F70[from a member of the member’s intention] to withdraw a share in the credit union and a member may not withdraw any shares at a time when a claim due on account of deposits is unsatisfied.

• (2) Notwithstanding anything in the rules of a credit union or in any contract, a credit union may require not less than 21 days’ notice F70[from a member of the member’s intention] to withdraw a deposit.

F71[F70[(3)(a) If a member of a credit union seeks to withdraw savings in the credit union at a time when the member has an outstanding liability (including a contingent liability) to the credit union, whether as borrower, guarantor or otherwise, that withdrawal shall only be permitted—

• (i) if the savings are not attached savings, or

• (ii) where the savings are attached savings, if the withdrawal of such attached savings is approved by the credit committee or a credit officer.]

• (b) Any savings that existed in the credit union immediately before the commencement of this provision (inserted by the Credit Union and Co-operation with Overseas Regulators Act 2012) that were not withdrawable under this subsection immediately before that commencement shall be treated as attached savings after that commencement.

• (c) Where the outstanding liability reduces below the level of attached savings, the amount of the attached savings shall not be greater than the outstanding balance of the loan.

• (d) In this subsection—

"attached savings" means a share in, or deposit with, a credit union which is pledged in writing by a member as security for a loan at the time of the issuing of the loan to the member or guaranteed by the member;

"savings" means a share in, or deposit with, the credit union.]

• (4) If the F72[Bank] sees fit to do so in the circumstances of a credit union, F72[it] may, on such terms as F72[it] thinks proper, by notice in writing addressed to the credit union provide that subsection (3) shall apply in relation to the credit union with the substitution of a higher or lower percentage than that for the time being applicable to the credit union under that subsection.

• (5) Where a member of a credit union is indebted to the credit union and consents in writing to the credit union acting under this subsection, the credit union may, by way of set-off against the indebtedness, withdraw any of the member's shares or deposits; and such a withdrawal may be made notwithstanding anything in subsections (2) and (3).

Borrowing

33. Power to borrow.

F73[33.— (1) For the purpose of its objects as referred to in section 6 a credit union may borrow money, on security or otherwise, and may issue debentures accordingly.

• (2) For the adequate protection of the savings of members of credit unions, the Bank may prescribe—

• F74[(a) the maximum amount of money a credit union may borrow at any one time, and]

• (b) the notice to be given to the Bank by a credit union in specified circumstances where the credit union proposes to borrow certain amounts of money (expressed as a monetary amount or as a percentage of some monetary amount or determinable monetary amount) in respect of those circumstances.

• (3) Where the Bank considers it is necessary in the interests of the proper regulation of a credit union or credit unions generally, or the protection of members’ savings, it may do either or both of the following:

• (a) permit a credit union to borrow moneys in excess of the amount prescribed in accordance with subsection (2);

• (b) waive any notice requirement prescribed in accordance with subsection (2).

• (4) A person dealing with a credit union shall not be obliged to be satisfied or to enquire into whether the limit imposed on the credit union by virtue of subsection (2) (or such limit as may be duly affected under subsection (3)) has been or is being observed; but if a person who lends money to a credit union or takes security in connection with such a loan has, at the time the loan is made or the security is taken, actual notice of the fact that that limit has been or is thereby exceeded, the credit union’s debt or, as the case may be, the security shall be unenforceable.

• (5) Subject to subsection (4), a transaction with a credit union shall not be invalid or ineffectual by reason of the fact that the limit on borrowing prescribed by the Bank under subsection (2) (or such limit as may be duly affected under subsection (3)) has been or is by the transaction exceeded.

• (6) In prescribing matters for the purposes of this section, the Bank shall have regard to the need to ensure that the requirements imposed by the regulations made by it are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.]

34. Charges on assets of a credit union.

34.—(1) An instrument which is executed by a credit union and which creates or is evidence of a charge on any assets of the credit union shall not be a bill of sale for the purposes of the Bills of Sale (Ireland) Acts, 1879 and 1883 or be invalidated by those Acts if the charge is recorded in accordance with subsection (2).

• F75[(2) An application for the recording of a charge under subsection (1) must be made by delivering to the Bank, within the permit- ted period—

• (a) a copy of the instrument authenticated in such manner as may be specified by the Bank, and

• (b) such additional particulars relating to the charge and authenticated as may be so specified.

The permitted period is 21 days from the date of execution of the instrument that creates or is evidence of the charge, or such extended period as may be allowed under subsection (5).

• (2A) The application must be accompanied by the fee (if any) prescribed under section 33K of the Central Bank Act 1942, for the purposes of this subsection.]

• (3) The F75[Bank] shall ensure—

• (a) that an acknowledgement of every application made for the purposes of this section is issued to the person by whom the application was made; and