CREDIT UNION ACT, 1997

159.—(1) Where proposals for a compromise or scheme of arrangement are to be formulated in relation to a credit union, the credit union may, subject to the approval of the Court, affirm or repudiate any contract under which some element of performance other than payment remains to be rendered both by the credit union and the other contracting party or parties.

• (2) Any person who suffers loss or damage as a result of such a repudiation shall stand as an unsecured creditor for the amount of the loss or damage.

• (3) In order to facilitate the formulation, consideration or confirmation of a compromise or scheme of arrangement, the Court may hold a hearing and make an order determining the amount of any such loss or damage as is referred to in subsection (2) and the amount so determined shall be due by the credit union to the creditor as a judgement debt.

• (4) Where the examiner is not a party to an application to the Court for the purposes of subsection (1), the credit union shall serve notice of the application on the examiner, and the examiner may appear and be heard on the hearing of the application.

• (5) Where the Court approves the affirmation or repudiation of a contract under this section, it may, in giving its approval, make such orders as it thinks fit for the purposes of giving full effect to its approval, including orders as to notice to, or declaring the rights of, any party affected by the affirmation or repudiation.

160. Appointment of creditors’ committee.

160.—(1) An examiner may, and if so directed by the Court shall, appoint a committee of creditors to assist him in the performance of his functions.

• (2) Save as otherwise directed by the Court, a committee appointed under subsection (1) shall consist of not more than five members and shall include the holders of the three largest unsecured claims who are willing to serve.

• (3) The examiner shall provide the committee with a copy of any proposals for a compromise or scheme of arrangement and the committee may express an opinion on the proposals on its own behalf or on behalf of the creditors or classes of creditors represented on the committee.

• (4) As soon as practicable after the appointment of a committee under subsection (1) the examiner shall meet with the committee to transact such business as may be necessary.

161. Proposals for compromise or scheme of arrangement.

161.—(1) Proposals for a compromise or scheme of arrangement shall—

• (a) specify the members and each class of creditors of the credit union;

• (b) specify any members or class of creditors whose interests or claims will not be impaired by the proposals;

• (c) specify any members or class of creditors whose interests or claims will be impaired by the proposals;

• (d) provide equal treatment for each interest or claim of a member or class of creditor unless the holder of a particular interest or claim agrees to less favourable treatment;

• (e) provide for the implementation of the proposals;

• (f) if the examiner considers it necessary or desirable to do so to ensure that there is a reasonable prospect of the survival of the credit union as a going concern, specify whatever changes should be made in relation to the management or direction of the credit union;

• (g) if the examiner considers it necessary or desirable as mentioned in paragraph (f), specify any changes he considers should be made in the rules of the credit union, whether as regards the management or direction of the credit union or otherwise; and

• (h) include such other matters as the examiner deems appropriate;

and a copy of the proposals shall be sent to the F406[Bank] in advance of any meeting of members or creditors under section 162.

• (2) A statement of the assets and liabilities (including contingent and prospective liabilities) of the credit union as at the date of the proposals shall be attached to each copy of the proposals sent to the F406[Bank] and submitted to meetings of members and creditors under section 162.

• (3) There shall also be attached to each such copy of the proposals a description of the estimated financial outcome of a winding-up of the credit union for the members and each class of creditors.

• (4) The Court may direct that the proposals include whatever other provisions it deems fit.

• (5) For the purposes of this section and sections 162 and 163, a creditor's claim against a credit union is impaired if he receives less in payment of his claim than the full amount due in respect of the claim at the date of presentation of the petition for the appointment of the examiner.

• F407[(6) For the purposes of this section and sections 162 and 163, the interest of a member of a credit union in the credit union is impaired if—

• (a) the member is deprived of all or any part of the rights accruing to the member by virtue of the member’s shareholding in, or membership of, the credit union, or

• (b) the member is deprived of the whole or part of the member’s shareholding in the credit union.]

162. Consideration by members and creditors of proposals.

162.—(1) This section applies to a meeting of members or creditors or any class of creditors summoned to consider proposals for a compromise or scheme of arrangement.

• (2) At a meeting to which this section applies, a modification of the proposals may be put to the meeting but may only be accepted with the consent of the examiner.

• (3) Proposals shall be deemed to have been accepted by a meeting of members if a majority of the members present and voting vote in favour of the resolution for the proposals.

• (4) Proposals shall be deemed to have been accepted by a meeting of creditors or of a class of creditors when a majority in number representing a majority in value of the claims represented at that meeting have voted, either in person or by proxy, in favour of the resolution for the proposals.

• (5) Where a State authority is a creditor of the credit union, that authority shall be entitled to accept proposals under this section notwithstanding—

• (a) that any claim of the State authority as a creditor would be impaired under the proposals; or

• (b) any other enactment;

and in this subsection “State authority” means the State, a Minister of the Government, a local authority or the Revenue Commissioners.

• (6) With every notice summoning a meeting to which this section applies which is sent to a creditor or member, there shall be sent also a statement explaining the effect of the compromise or scheme of arrangement and, in particular, stating any material interests of the officers of the credit union, whether as officers or as members or as creditors of the credit union or otherwise and the effect thereon of the compromise or arrangement, in so far as it is different from the effect on the like interest of other persons.

• (7) Where a resolution is passed at an adjourned meeting to which this section applies, the resolution shall for all purposes be treated as having been passed on the date on which it was passed and shall not be deemed to have been passed on any earlier date.

163. Consideration of proposals by the Court.

163.—(1) The report of the examiner under section 157 shall be set down for consideration by the Court as soon as may be after receipt of the report by the Court.

• (2) The following persons shall be entitled to appear and be heard at the hearing under subsection (1)—

• (a) the examiner;

• (b) the F408[Bank];

• (c) the credit union;

• (d) F409[…]

• (e) any creditor or member whose claim or interest would be impaired if the proposals for a compromise or scheme of arrangement were implemented;

and the Court may permit to appear and be heard any other person who it considers to have a sufficient interest in the matter.

• (3) At a hearing under subsection (1) the Court may, as it thinks proper, subject to the provisions of this section, confirm, confirm subject to modifications, or refuse to confirm the proposals.

• (4) The Court shall not confirm any proposals unless one member and one class of creditor whose interests or claims would be impaired by implementation of the proposals have accepted the proposals and the Court is satisfied that—

• (a) the proposals are fair and equitable in relation to any member or class of creditors that has not accepted the proposals and whose interests or claims would be impaired by implementation; and

• (b) the proposals are not unfairly prejudicial to the interests of any member or creditor;

nor shall the Court confirm any proposals if the sole or primary purpose of them is the avoidance of payment of tax due.

• (5) At a hearing under this section, the F408[Bank] or a member or creditor whose interest or claim would be impaired by the proposals may object in particular to their confirmation by the Court on any of the following grounds—

• (a) that there was some material irregularity at or in relation to a meeting to which section 162 applies;

• (b) that acceptance of the proposals by the meeting was obtained by improper means;

• (c) that the proposals were put forward for an improper purpose; or

• (d) that the proposals unfairly prejudice the interests of the objector.

• (6) Any person who voted to accept the proposals may not object to their confirmation by the Court except on the grounds—

• (a) that acceptance of the proposals was obtained by improper means; or

• (b) that, after voting to accept the proposals, he became aware that they were put forward for an improper purpose.

• (7) Where the Court upholds an objection to the confirmation of any proposals, the Court may make such order as it deems fit, including an order that the decision of any meeting be set aside and an order that any meeting be reconvened.

• (8) Notwithstanding subsection (4), or any other provision of this Part, nothing in this Part shall prevent the examiner from including in his report under section 157 proposals which will not involve the impairment of the interests of members or creditors of the credit union, nor the Court from confirming any such proposals.

164. Confirmation or otherwise of proposals by the Court.

164.—(1) Where the Court confirms proposals for a compromise or scheme of arrangement (with or without modification), the proposals shall be binding on all the members of the credit union and also on the credit union itself.

• (2) Where the Court confirms the proposals (with or without modification) the proposals shall, notwithstanding anything in any other enactment, be binding on all the creditors or the class or classes of creditors, as the case may be, affected by the proposals in respect of any claim or claims against the credit union and any person, other than the credit union who, under any enactment, rule of law or otherwise, is liable for all or any part of the debts of the credit union.

• (3) Any alterations in, additions to or deletions from the rules of the credit union which are specified in the proposals shall, after confirmation of the proposals by the Court, take effect from the date fixed by the Court; and where the Court confirms proposals, it may make such orders for the implementation of its decision as it deems fit.

• (4) A compromise or scheme of arrangement, the proposals for which have been confirmed by the Court, shall come into effect from a date fixed by the Court, being not later than 21 days from the date of their confirmation.

• (5) If, at any time after a compromise or scheme of arrangement has come into effect, it appears to the F410[Bank] that an amendment of the rules of the credit union sent to F410[it] under section 14 (2) conflicts with the proposals confirmed by the Court, F410[it] may on that ground refuse to register the amendment, and section 14 (5) shall apply accordingly.

• (6) As soon as practicable after the confirmation of proposals by the Court, an office copy of any order made by the Court under this section shall be delivered by the examiner, or by such other person as the Court may direct, to the F410[Bank] for placing on the public file of the credit union.

• (7) Where—

• (a) the Court refuses to confirm proposals for a compromise or scheme of arrangement for a credit union, or

• (b) the report of an examiner under section 157 concludes that, following the required meetings of members and creditors of a credit union under this Part, it has not been possible to reach agreement on a compromise or scheme of arrangement,

the Court may, if it considers it just and equitable to do so, make an order for the winding up of the credit union, or any other order it deems fit.

• (8) Where the Court makes an order for the winding-up of a credit union under this Part, the winding-up shall be deemed to have commenced on the date of the making of the order, unless the Court otherwise orders.

165. Ending of protection.

165.—(1) Notwithstanding anything in the preceding provisions of this Part, any protection deemed to be granted to a credit union under those provisions shall cease—

• (a) on the coming into effect of a compromise or scheme of arrangement under this Part; or

• (b) on such earlier date as the Court may direct.

• (2) Where a credit union ceases to be under the protection of the Court, the appointment of the examiner shall terminate on the date of that cessation.

166. Revocation of confirmation on grounds of fraud.

166.—(1) If, within six months after the confirmation by the Court of proposals for a compromise or scheme of arrangement—

• (a) the credit union concerned,

• (b) the F411[Bank], or

• (c) a member or creditor of the credit union,

applies to the Court for the revocation of the confirmation on the grounds that it was procured by fraud and the Court is satisfied that that is the case, the Court may by order revoke the confirmation.

• (2) A revocation of a confirmation under this section shall be on such terms and conditions, particularly with regard to the protection of the rights of parties acquiring interests or property in good faith and for value in reliance on that confirmation, as the Court deems fit.

• (3) As soon as practicable after the revocation of a confirmation under this section, an office copy of the order made by the Court under this section shall be delivered by such person as the Court may direct for placing on the public file of the credit union.

167. Disqualification to act as examiner.

167.—(1) A person shall not be qualified to be appointed or to act as an examiner of a credit union if he would not be qualified to act as its liquidator.

• (2) A person who acts as an examiner of a credit union while disqualified under this section shall be guilty of an offence.

168. Remuneration, costs and expenses of examiners.

168.—(1) The Court may from time to time make such orders as it thinks proper for payment of the remuneration and costs of, and reasonable expenses properly incurred by, an examiner.

• (2) Unless the Court otherwise orders, the remuneration, costs and expenses of an examiner shall be paid, and the examiner shall be entitled to be indemnified in respect thereof, out of the income of the credit union to which he has been appointed, or the proceeds of realisation of its assets (including investments).

• (3) The remuneration, costs and expenses of an examiner which have been sanctioned by order of the Court shall be paid in full and shall be paid before any other claim, secured or unsecured, under any compromise or scheme of arrangement or in any receivership or winding-up of the credit union to which he has been appointed.

• (4) The functions of an examiner may be performed by him with the assistance of persons appointed or employed by him for the purpose, provided that an examiner shall, in so far as it is reasonably possible, make use of the services of the officers and facilities of the credit union to which he has been appointed to assist him in the performance of his functions.

• (5) In considering any matter relating to the costs, expenses and remuneration of an examiner the Court shall have particular regard to the proviso to subsection (4).

169. Publicity.

169.—(1) An examiner or, where appropriate, such other person as the Court may direct, shall within 14 days after the delivery to the F412[Bank] of every order made under section 156, section 164 or section 166 cause notice of that delivery to be published in Iris Oifigiúil.

• (2) A person who fails to comply with this section shall be guilty of an offence.

170. Hearing of proceedings otherwise than in public.

170.—The whole or any part of any proceedings under this Part may be heard otherwise than in public if the Court, in the interests of justice, considers that the interests of the credit union concerned or its creditors or its members as a whole so require.

PART XIII Offences and Civil Proceedings

171. Offences: general provisions.

171.—(1) F413[…]

• F414[(2) A credit union or other person who is guilty of an offence under this Act, other than an offence for which a different penalty is expressly provided, shall be liable—

• (a) on summary conviction to a class C fine or to imprisonment for a term not exceeding 3 months or both; or

• (b) on conviction on indictment to a fine not exceeding €6,348.69 or to imprisonment for a term not exceeding 2 years or both.]

• F415[(3) If the contravention in respect of which a credit union or other person is convicted of an offence under any provision of this Act is continued after that conviction, that credit union or other person shall be guilty of a further offence for every day on which the contravention continues and for each such offence shall be liable on summary conviction to a class E fine or, on conviction on indictment, to a fine not exceeding €1,904.61.]

• F416[(4) Summary proceedings for an offence against a provision of this Act may be brought by the Bank.]

• (5) F417[…]

172. Offences by officers etc.

172.—(1) Where an offence under this Act which is committed by a credit union is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer or member of the credit union, that officer or member (as well as the credit union) shall be guilty of an offence and liable to be proceeded against and punished as if guilty of the offence committed by the credit union.

• (2) Where an offence under any provision of this Act which is committed by a body corporate, other than a credit union, is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any person who, when the offence was committed, was a director, manager, secretary or other similar officer of the body corporate or a person who was purporting to act in any such capacity, that person (as well as the body corporate) shall be guilty of an offence and liable to be proceeded against and punished as if guilty of the offence committed by the body corporate.

173. Fraud or misappropriation.

173.—(1) Any person who—

• (a) obtains possession by false representation of any property of a credit union, or

• (b) having any such property in his possession, withholds or misapplies it or wilfully applies any part of it to purposes which are not authorised by the rules of the credit union or which are not in accordance with this Act,

shall be guilty of an offence and may be ordered to deliver up that property or to repay all money improperly applied.

• (2) A person guilty of an offence under subsection (1) shall be liable—

• F418[(a) on summary conviction to a class C fine or to imprisonment for a term not exceeding one year or both; or]

• (b) on conviction on indictment to a fine not exceeding £10,000 or to imprisonment for a term not exceeding five years or both.

174. Falsification of documents and other records.

174.—Any person who, with intent to falsify any document or record referred to in paragraphs (a) to (e) or to evade any of the provisions of this Act, wilfully makes, or orders or allows to be made, any entry or erasure in, or omission from, or amendment to—

• (a) any balance sheet of a credit union, or

• (b) any contribution or collecting book, passbook or statement, or

• (c) any return or document required for the purposes of this Act, or

• (d) any account or balance sheet which is available for inspection under this Act, or

• (e) any other record whatsoever, whether produced by electronic or other means, which is used by a credit union in the conduct of its business,

shall be guilty of an offence.

175. Furnishing false information etc.

175.—(1) Any person who, in purported compliance with any provision made by or under this Act—

• (a) provides an answer or explanation, makes a statement or produces or delivers any return, certificate, balance sheet or other document which is false in a material particular and which he knows to be so false, or

• (b) recklessly provides an answer or explanation, makes a statement or produces or delivers any return, report, certificate, balance sheet or other document which is false in a material particular,

shall be guilty of an offence.

• (2) If the court by which a person is found guilty on indictment of an offence under subsection (1) is of the opinion that any act, omission or conduct which gave rise to that offence has—

• (a) substantially contributed to a credit union being unable to pay its debts, or

• (b) prevented or seriously impeded the orderly winding up of a credit union, or

• (c) substantially facilitated the defrauding of creditors of a credit union or of any other person,

then, in place of the penalty provided by section 171(2)(b), that person shall be liable on conviction on indictment to a fine not exceeding £10,000 or to imprisonment for a term not exceeding five years or both.

176. Recovery of costs and expenses.

176.—Any cost or expenses ordered or directed by the F419[Bank] to be paid by any person shall be recoverable by the F419[Bank] from that person summarily as a civil debt.

177. Liability of officer etc.

177.—(1) Subject to subsection (2), any provision (whether contained in the rules of a credit union or in any contract with a credit union or otherwise) for exempting an officer F420[…] of a credit union from, or indemnifying him against, any liability which, by virtue of any rule of law, would otherwise attach to him in respect of any negligence, breach of duty or breach of trust of which he may be guilty in relation to the credit union shall be void.

• (2) A credit union may indemnify an officer F421[…] against any liability incurred by him in defending proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted, or in connection with an application under section 178 in which relief is granted.

178. Power of court to grant relief to officer etc.

178.—(1) Where, in any proceedings for negligence, default, breach of duty or breach of trust against an officer F422[…] of a credit union, it appears to the court hearing the case—

• (a) that the officer F422[…] is or may be liable in respect of the negligence, default or breach in question but that he acted honestly and reasonably, and

• (b) that, having regard to all the circumstances of the case (including those connected with his appointment), he ought fairly to be excused for the negligence, default or breach,

the court may relieve him (either wholly or partly) from his liability on such terms as the court may think fit.

• (2) Where an officer F423[…] of a credit union who has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust, applies to the Court for relief, the Court shall have the same power to relieve him as it would have under this section if it were a court before which proceedings against him had been brought for the negligence, default or breach.

• (3) Where any case to which subsection (1) applies is being tried by a judge with a jury, the judge, after hearing the evidence, may, if he is satisfied that the defendant ought under that subsection to be relieved either in whole or in part from the liability sought to be enforced against him, withdraw the case in whole or in part from the jury and direct judgment to be entered for the defendant on such terms as to costs or otherwise as the judge may think proper.

179. Judgments against a credit union.

179.—(1) Whenever a person (in this section referred to as a “judgment creditor”) obtains in any court a judgment, order or decree against a credit union for the payment of a sum of money due to the judgment creditor by the credit union, the registrar or clerk of the court concerned shall notify the F424[Bank] as soon as may be of the judgment, order or decree and of its terms and of any appeal against the judgment, order or decree and of the result thereof.

• (2) Subject to subsection (3) if, within the period of 21 days or such further period as the court concerned may allow, beginning on the date of the judgment, order or decree, the credit union does not pay all moneys due (or in the case of costs, at the option of the credit union, give security therefor in lieu of payment) or satisfy all claims under the judgment, order or decree, the credit union shall be deemed to be unable to meet its obligations to its creditors and, accordingly, for the purposes of section 133, to be unable to pay sums due and payable to its creditors.

• (3) If an appeal is instituted in any court against the judgment, order or decree, that court or the court by which the judgment, order or decree was made may by order postpone the application of subsection (2) for such period and, subject to subsection (4), on such terms as the court concerned may fix and specify in the order.

• (4) If a court makes an order under subsection (3), it may require the credit union to which the order relates either, as that court thinks fit, to lodge in court an amount equal to the amount of all moneys due under the judgment, order or decree (or such lesser amount as the court may direct) or to give such security as the court may determine for the payment to the judgment creditor of all such moneys, together with, in either case, such further sum or security for the costs of the appeal as the court shall consider just.

• (5) An order under subsection (3) may be varied or revoked by the court that made it or before which an appeal in relation to it is brought.

PART XIV Miscellaneous and General

180. Credit Union Advisory Committee.

180.—(1) There shall continue to be a body known as the Credit Union Advisory Committee (in this Act referred to as “the Advisory Committee”) which shall exercise the functions assigned to it by this Act.

• (2) The Advisory Committee shall advise the Minister and such other persons as the Minister thinks fit in relation to—

• (a) the improvement of the management of credit unions;

• (b) the protection of the interests of members and creditors of credit unions; and

• (c) other matters relating to credit unions upon which the Minister, the F425[Bank] or such other persons as may be specified by the Minister may from time to time seek the advice of the Committee.

• (3) The Advisory Committee shall consist of not more than seven persons appointed for such period as the Minister thinks fit; and every person so appointed shall be chosen by the Minister for appointment—

• (a) by reason of that person's knowledge of matters pertaining to credit unions; or

• (b) because that person is capable of giving substantial practical assistance in the work of the Advisory Committee.

• (4) Any person who is for the time being entitled under the Standing Orders of either of the Houses of the Oireachtas to sit therein shall, while so entitled, be disqualified from being a member of the Advisory Committee.

• (5) Where a member of the Advisory Committee becomes a member of either House of the Oireachtas he shall, upon becoming entitled under the Standing Orders of that House to sit therein, cease to be a member of the Committee.

F426[ (6) The Minister shall from time to time nominate one member of the Advisory Committee to act as its chair.]

• (7) There shall be paid to every member of the Advisory Committee such remuneration and expenses as the Minister F427[…] may determine.

• (8) Nothing in subsection (3) shall be taken to affect the term of appointment of any person who is a member of the Advisory Committee at the commencement of this section.

181. F428[Consultation.

181.—References in this Act to bodies appearing to the Minister or to the Bank to have expertise or knowledge about credit unions, include references to the unincorporated association called the Irish League of Credit Unions.]

182. General regulations.

182.—(1) F429[The Minister may make regulations]—

• (a) F430[…]

• (b) F430[…]

• (c) F430[…]

• (d) F430[…]

• (e) F430[…]

• (f) F430[…]

• (g) making provision with respect to the further defining of the exercise of a significant influence as mentioned in section 87(1)(e);

• (h) F431[…]

• (i) F431[…]

• (j) providing for the inspection, and furnishing of copies, of documents in the custody of the F429[Bank];

• (k) F432[…]

• (l) making provision with respect to the settlement of disputes in accordance with section 125;

• F433[(la) making provision with respect to all or any of the matters provided for in section 82(6);]

• (m) F434[…]

• F435[(n) prescribing any other matter which, under any provision of this Act, is to be prescribed except where it is provided that the matter is to be prescribed by the Bank.]

• F436[(1A) The Minister may make regulations under this section only after consulting the Bank, the Advisory Committee and any other body appearing to the Minister to have expertise or knowledge of credit unions.]

• (2) Regulations under this section may relate to all or any one or more of the matters referred to in subsection (1).

• (3) Regulations under this Act may provide that any person contravening the regulations shall be guilty of an offence and liable on F437[…] conviction to a fine not exceeding an amount specified in the regulations.

• F429[(4) The amount that may be specified for such an offence may not exceed—

• F438[(a) if the offence is tried summarily, a class C fine, or]

• (b) if the offence is tried on indictment, €12,500.]

• (a) on summary conviction, £1,000, or

• (b) on conviction on indictment, £10,000.

• (5) Regulations under this section may apply either generally or by reference to a specified category or categories of credit unions, or to a specified time or times, or during a specified period or periods or by reference to any other matter as the Minister may consider appropriate.

• (6) Without prejudice to any specific provision of this Act, regulations may contain such incidental, consequential, transitional or supplementary provisions (including provisions for the purpose of effecting the transition to this Act from the enactments repealed by this Act and the Industrial and Provident Societies Acts, 1893 to 1978), as may appear to the Minister to be necessary or proper for any purpose of this Act or in consequence of, or to give full effect to, any provision of this Act.

182A. F439[General regulations by Bank.

182A.—(1) The Bank may make regulations in respect of any matter which, under any provision of the Credit Union Acts 1997 to 2012, is to be prescribed by the Bank.

• (2) Regulations made by the Bank under the Credit Union Acts 1997 to 2012 may apply either generally or by reference to a specified category or categories of credit unions, or to a specified time or times, or during a specified period or periods or by reference to any other matter as the Bank may consider appropriate.]

183. Regulations to remove difficulties.

183.—If, in any respect, any difficulty arises in bringing any provision of this Act into operation or in relation to the operation of any such provision, the Minister may by regulations do anything which appears to him to be necessary or expedient for the purposes of removing the difficulty, bringing that provision into operation, or securing or facilitating its operation.

184. Certain enactments not to apply to credit unions etc.

F440[184.— The following enactments, namely—

• (a) section 117 of the Central Bank Act 1989,

• (b) Part IV (other than sections 27B, 27G and 27H) of the Central Bank Act 1997, and

• (c) the Consumer Credit Act 1995,

shall not apply to a credit union or to a body the members of which are credit unions and the principal objects of which are the promotion of the credit union movement and the provision of services to credit unions.]

185. Exemptions from stamp duty.

185.—(1) Stamp duty shall not be chargeable on any instrument effecting the transfer of a share in a credit union.

• (2) Stamp duty shall not be chargeable on any transfer, conveyance or other instrument executed for the purposes of effecting, under Part IX, an amalgamation of credit unions or a transfer of engagements between credit unions.

186. Records and registers.

186.—F441[(1) A credit union shall maintain, in addition to the records required to be kept by a credit union by virtue of section 108, such other records as may be prescribed by the Bank.]

• (2) Any register or record required to be kept by or under this Act may be kept either by making entries in bound books or by recording the matters in any other manner, provided that the recording is readily accessible and readily converted into written form in an official language of the State.

• (3) Any duty imposed by this Act F442[or Part 3 of the Central Bank (Supervision and Enforcement) Act 2013] to allow inspection of, or to furnish a copy of, a record, or any part of it, is to be treated as a duty to allow inspection of, or to furnish, a reproduction of the recording or of the relevant part of it in a written form in an official language of the State.

• (4) Where any register or record required to be kept by or under this Act is not kept by making entries in a bound book but by some other means, adequate precautions shall be taken by the person required to keep the register or record for guarding against falsification and for facilitating the discovery of any falsification.

187. Form, deposit and evidence of documents.

187.—(1) Without prejudice to section 124 (2) and subject to any provision made by regulations, every return or other document required for the purposes of this Act—

• (a) shall be made in such form,

• (b) shall contain such particulars, and

• (c) shall be deposited and registered or recorded, with or without observations on the return or other document, in such manner,

as may be F443[specified by the Bank].

• (2) An acknowledgement of registration or other document relating to a credit union, purporting to be signed by the F444[Bank]F445[…], including in particular any document purporting to be a copy or extract of a credit union's rules or of any other instrument or document whatsoever, and every document purporting to be signed by any inspector under this Act shall, unless the contrary is proved, be deemed to have been issued by the F444[Bank] or such a duly authorised person, or an inspector, as the case may be, and shall be received in evidence without proof of the signature.

• (3) A printed document purporting to be a copy of the rules of a credit union and certified by an officer of the credit union to be a true copy of its registered rules shall, unless the contrary is proved, be deemed to be a true copy of its rules and shall be received in evidence accordingly.

188. Service of notices etc.

188.—(1) Where a notice, direction, or other document is authorised or required by or under this Act to be served on a person, it shall, unless otherwise specified in this Act, be addressed to him and served on or given to him in one of the following ways—

• (a) where it is addressed to him by name, by delivering it to him;

• (b) by leaving it at the address at which he ordinarily resides or, in a case in which an address for service has been furnished, at that address;

• (c) by sending it by ordinary prepaid post addressed to him at the address at which he ordinarily resides or, in a case in which an address for service has been furnished, at that address; or

• (d) in the case of an officer of a credit union, by sending it to him by ordinary prepaid post addressed to him at the address of the registered office of the credit union.

• (2) Any such document may, in the case of a credit union, be served on the secretary of the credit union.

188A. F446[Delivery of notices etc.

188A.—(1) Subject to subsection (3), where a notice, direction or other document is authorised or required by or under this Act to be sent or delivered to a member of a credit union by the credit union, the credit union shall, unless otherwise specified in this Act, do so in one of the following ways:

• (a) by delivery to the member;

• (b) by post to the address of the member as recorded in the books of the credit union or such other address as has been notified in writing to the credit union by that member for the purpose of receiving the notice, direction or other document by post;

• (c) by electronic means to such address as has been notified in writing to the credit union by that member for the purpose of receiving the notice, direction or other document electronically.

• (2) Subject to subsection (3), a copy of a document, other than a notice, required to be sent or delivered shall be treated as having been sent or delivered, as the case may be, by a credit union to a member where—

• (a) the credit union and the member have agreed to the member having access to the document on a website maintained by or on behalf of the credit union,

• (b) the member is notified, in a manner for the time being agreed for the purpose of such notification between the member and the credit union, of—

• (i) the publication of the document on the website referred to in paragraph (a),

• (ii) the address of that website,

• (iii) the place on that website where the document may be accessed, and

• (iv) how the document may be accessed,

• (c) in the case of annual accounts—

• (i) the credit union’s rules allow for distribution of or access to the annual accounts by electronic means,

• (ii) the credit union has requested, in writing, the member’s consent to the use of electronic means for conveying the credit union’s annual accounts and the member has not objected to such use within 10 days of the receipt by the member of the request, and

• (iii) the member may request at any time in the future that the annual accounts be conveyed to the member in writing,

• (d) where the document is required to be delivered within a relevant period (as specified for the purpose of the provision requiring such delivery)—

• (i) the document is published on the website referred to in paragraph (a) in the period from the start of the relevant period to the conclusion of the meeting concerned, and

• (ii) the notification given for the purposes of paragraph (b) is given during the relevant period.

• (3) This section shall not apply to the service, by or under this Act, of a notice, direction or other document.]

189. Transitional provisions.

189.—(1) In so far as any order, regulation, rule, agreement, application, decision or reference made, approval, consent or direction given, requirement imposed, certificate or other instrument issued, register kept, resolution passed, notice served or other thing done under an enactment repealed by this Act could have been made, given, imposed, issued, kept, passed, served or done under a corresponding provision of this Act, it shall not be invalidated by the repeal effected by this Act but, except in so far as this Act otherwise provides, shall have effect as if made, given, imposed, issued, kept, passed, served or done under that corresponding provision.

• (2) Where any document refers to an enactment repealed by this Act and provision is made by this Act corresponding to that enactment, then, unless the context otherwise requires, that reference shall be construed as or, as the case may be, as including a reference to the corresponding provision of this Act.

• (3) Where an act or omission is an offence under an enactment repealed by this Act and that enactment provides a penalty for the continuation of the offence, then, if provision is made by this Act corresponding to that enactment, the continuation of the act or omission after the commencement of this section shall be treated for the purposes of the corresponding provision of this Act as a continuation of an offence under that provision.

• (4) Any reference in this section to an enactment repealed by this Act includes a reference to an enactment contained in the Industrial and Provident Societies Acts, 1893 to 1978, which, though not so repealed, ceases by virtue of this Act to apply to a credit union.

190. F447[Disapplication of certain provisions to corporate credit unions.

190.— ...]

FIRST SCHEDULE Matters to be Provided for in Rules of Credit Union

Section 13.

F448[ 6. The appointment and removal of the board of directors, the board oversight committee and any principal Committee and of other officers and their respective powers and remuneration. ]

F449[7. Determination (subject to any requirements under section 27(2)) of the maximum amount of the interest in the shares of the credit union which may be held by any member.]

F450[12. Provision for dealing with disputes between the credit union and any of its members, or any person claiming by or through any member or under the rules.]

F451[14. Provision for dealing with directors and members of the board oversight committee who are more than 90 consecutive days in arrears under a debt obligation to the credit union up to and including the suspension or removal from the board of such directors.]

SECOND SCHEDULE Form of Receipt

Section 42.

...................... Limited hereby acknowledges that it has this ........ day of ..............., 19......... received the sum of ..............., representing all money intended to be secured by the [within (or above) written] [annexed] deed [and by a further charge dated, etc., or otherwise as required].

) Board of Directors

)

)

) Secretary

THIRD SCHEDULE Credit Committee, Credit Control Committee and Membership Committee

Section 67.

• (a) meet as often as necessary to carry out their functions;

• (b) submit a written report to the board of directors at each meeting of the board; and

• (c) comply with any instruction of the board of directors.

F454[FOURTH SCHEDULE Supplementary Provisions in Relation to Regulatory Directions

Section 88.

When a regulatory direction terminates.

• (a) at the end of the period of operation specified in the direction, or

• (b) ...

• (c) on the making by the Court of a winding-up order in respect of the credit union,

whichever first occurs.

Bank may require credit union to prepare scheme for the orderly termination of its business.

• (a) to prepare, in consultation with the Bank, a scheme for the orderly termination of its business and the discharge of its liabilities to its members and creditors under the supervision of the Bank; and

• (b) to submit that scheme to the Bank for its approval.

• (2) A credit union shall comply with a direction made to it under subparagraph (1) not later than 2 months after the requirement was notified to it under that subparagraph.

• (3) A requirement made to a credit union under this paragraph is an appealable decision for the purposes of Part VIIA of the Central Bank Act 1942.

Consequences of failing to comply with requirement made under paragraph 2.

Court may revoke or amend order made under paragraph 3.

What action may be taken when regulatory direction is in force.

• (a) the credit union shall take all necessary steps to ensure that its assets, wherever held, are depleted only in accordance with the approval of the Bank;

• (b) the Court may, on the application of the Bank, make an order directing a bank, or any institution exempt under section 7 of the Central Bank Act 1971, that holds an account of the credit union to suspend the making of payments from the account for such period as the Court may consider appropriate in the circumstances;

• (c) the credit union shall make reasonable arrangements for using its funds to meet applications (duly made in accordance with its rules) by members for repayment of money subscribed or deposited by them;

• (d) if it appears to the Bank that the credit union has been applying an undue proportion of its funds in making loans, in preference to making such arrangements as are referred to in paragraph (c), the Bank may, after giving notice to the credit union and giving it an opportunity of making representations, apply to the Court for the winding-up of the credit union.]

FIFTH SCHEDULE Supplementary Provisions as to Removal or Suspension by the Registrar of Directors and Members of Supervisory Committee

Section 96.

• (2) On an application under subparagraph (1), the Court may make—

• (a) an order setting aside the removal; or

• (b) an order confirming the removal; or

• (c) such other order as may appear to the Court to be necessary.

• (2) The Court shall not make an order under subparagraph (1) without giving the director or member concerned an opportunity to be heard.

• (2) On an application under subparagraph (1), the Court may make—

• (a) an order setting aside the suspension;

• (b) an order confirming the suspension; or

• (c) such other order as may appear to the Court to be necessary.

• (2) The Court shall not make an order under subparagraph (1) without giving the director or member concerned an opportunity to be heard.

• (a) the end of the period of operation specified by the Court;

• (b) the making by the Court of an order for termination on the application of the F456[Bank];

• (c) the making of a winding up order in respect of the credit union;

• (d) the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the suspension have ceased to exist and that it would be unjust and inequitable not to make the order.

F458[SIXTH SCHEDULE

Section 13.

Matters to be provided for in rules of corporate credit union.

...]