Credit Union Act 1997

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 theCredit Union Acts 1997 to 2012—

"Act of 1966" means theCredit Union Act 1966;

F2["Act of 2014" means theCompanies 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 bysection 111(6);

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

"annual return" means the annual return which a credit union is required bysection 124to 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 whichsection 53relates;

"board oversight committee" has the meaning given bysection 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, bysection 76I;

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

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

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

"common bond" means a common bond falling withinsection 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 bysection 76D;

"contravention" includes failure to comply;

F2["corporate credit union" means a credit union registered pursuant tosection 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 theBuilding Societies Act 1989;

"credit union" means a society registered as such under this Act, including a society deemed to be so registered by virtue ofsection 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 ofsection 2of theCentral Bank Act 1942,

(b) the designated statutory instruments within the meaning ofsection 2of theCentral 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 undersection 3A;]

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

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

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

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

"management team" has the meaning given bysection 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 bysection 56B(1);

"non-qualifying member", in relation to a credit union, has the meaning given bysection 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 insection 37,]risk management officer, compliance officer, credit officer or credit control officer of the credit union,

(b) an employee of the credit union to whomparagraph (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 bysection 76E(1);

"organisation meeting" has the meaning given bysection 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 undersection 182, and

(b) in relation to the Bank, prescribed by regulations made by the Bank undersection 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 ofsection 5of that Act),

(c) any other entity established (other than under the Act of 2014 or a former enactment relating to companies within the meaning ofsection 5of 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 ofsection 5of 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 whichparagraph (d)relates, or

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

"register" means the register maintained undersection 8(5);

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

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

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

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

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

"savings", in relation to a credit union, has the meaning given bysection 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 withsection 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 personF3[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 bysection 76A(1);

"strategic plan" has the meaning given bysection 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 insection 82(4), and

(b) in the case of a member who has appointed a proxy undersection 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 ofsection 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

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