Credit Union Act 1997

Number 15 of 1997

CREDIT UNION ACT 1997

REVISED

Updated to 30 September 2024

This Revised Act is an administrative consolidation of the Credit Union Act 1997. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including the Criminal Justice (Amendment) Act 2024 (31/2024), enacted 4 October 2024, and all statutory instruments up to and including the Credit Union Act 1997 (Regulatory Requirements) (Amendment) Regulations 2024 (S.I. No. 496 of 2024), made 30 September 2024, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.

Number 15 of 1997

CREDIT UNION ACT 1997

REVISED

Updated to 30 September 2024

ARRANGEMENT OF SECTIONS

PART I

Preliminary and General

Section
1.	Short title and commencement.
2.	Interpretation.
3.	Orders and regulations.
3A.	Extension of interim period.
4.	Expenses incurred by the Minister.
5.	Repeals and transition from the former law.

PART II

Registration and Membership

Registration

6.	Conditions for registration as a credit union.
6A.	Supplemental provisions relating to registration, etc., under section 6 of Principal Act.
7.	Application for registration as a credit union.
8.	Acknowledgement or refusal of registration.
9.	Effect of registration.
10.	Registered name.
11.	Change of registered name.
12.	Protection of use of seal and registered name of credit union.

Rules

13.	Rules.
14.	Amendment of registered rules.
15.	Rules to bind members.
16.	Provision of copies of rules.

Membership

17.	Requirements of, and qualifications for, membership.
18.	Appeal against refusal of membership.
19.	Expulsion and withdrawal from credit union.
20.	Remedy for debts from members.
21.	Nomination of property in credit union.
22.	Proceedings on death of nominator.
23.	Provision for small payments on death.
24.	Payments in respect of mentally incapable persons. (Repealed)
25.	Validity of payments to persons apparently entitled.

PART III

Operation of Credit Unions

Business and raising of funds

26.	General principles.
27.	Raising of funds by shares and deposits.
27A.	Protection of members’ savings.

Shares and deposits

28.	Shares: general provisions.
29.	Transfer of shares.
30.	Dividends on shares.
31.	Interest on deposits.
32.	Restrictions on withdrawal of shares and deposits.

Borrowing

33.	Power to borrow.
34.	Charges on assets of a credit union.

Loans

35.	Making of loans.
36.	Approval of loans.
37.	Appeal against non-approval of loan.
37A.	Member to receive written notice of loan approval.
37B.	Credit agreement in respect of loans exceeding €200.
37C.	Contents of credit agreements.
37D.	Notice of important information to be included in credit agreements.
37E.	Definition and calculation of "APR" for the purposes of sections 37C and 37D.
37F.	Regulations for the purposes of sections 37A-37D. (Repealed)
38.	Interest on loans.

Other transactions

39.	Promissory notes and bills of exchange.
40.	Contracts.
41.	Acquisition, holding and disposal of land.
42.	Receipt for repayment of secured debt.

Investments etc.

43.	Investments.
44.	Special fund for social, cultural etc. purposes.
45.	Statutory reserve.
46.	Savings protection scheme. (Repealed)
47.	Insurance against fraud of officers etc.

Provision of additional services to members

48.	Power to provide additional services.
49.	The Registrar's approval of provision of additional services.
50.	Supplementary provisions as to Registrar’s functions.
51.	Requirements applicable to credit unions providing additional services.
51A.	Referral to another credit union.
52.	Appeal against certain decisions of Bank.

PART IV

Management of Credit Unions

Directors

53.	Board of directors.
54.	Directors: procedural provisions.
55.	Functions of board of directors.
55A.	Chair of board of directors, etc.
56.	Removal of director from office.
56A.	Board Committees.
56B.	Nomination Committee.
57.	Directors: supplemental provisions.

Supervisory Committee

58.	Supervisory Committee. (Repealed)
59.	Supervisory Committee: procedural provisions. (Repealed)
60.	Functions of Supervisory Committee. (Repealed)
61.	Supervisory Committee: removal from office. (Repealed)
62.	Supervisory Committee: supplemental provisions. (Repealed)

Officers

63.	Officers: principal posts.
63A.	Manager of credit union.
64.	Functions of treasurer. (Repealed)
65.	Credit officer and credit control officer.
66.	Officers: suspension and removal by Supervisory Committee.

General governance requirements

66A.	Governance arrangements in credit unions.
66B.	Remuneration policies and practices.
66C.	Reporting to Bank.

General provisions

67.	Credit, credit control and membership committees.
68.	Limitation of remuneration.
69.	Conflicts of interest.
70.	Required signatories etc.
71.	Confidentiality of information.
72.	Persons disqualified from acting.
73.	Giving of security by officers etc.
74.	Duty to account.
75.	Register of members and officers.
76.	Inspection of books.

Additional requirements for credit unions

76A.	Strategic plan.
76B.	Risk management systems and systems and control.
76C.	Risk management officer.
76D.	Compliance officer.
76E.	Operational risk.
76F.	Records management.
76G.	Information systems.
76H.	Management information.
76I.	Business continuity plan.
76J.	Outsourcing.
76K.	Internal audit.

PART IVA

Board Oversight Committee

76L.	Board oversight committee.
76M.	Functions of board oversight committee.
76N.	Election of board oversight committee, etc.
76O.	Board oversight committee: procedural provisions.
76P.	Board oversight committee: term of office and retirement.
76Q.	Board oversight committee: removal from office.
76R.	Board oversight committee: supplementary provision.

PART V

Meetings, Resolutions etc.

77.	The organisation meeting.
78.	The annual general meeting.
78A.	General meetings during interim period.
78B.	General meetings (other than during interim period).
79.	Special general meetings.
80.	Notice of general meetings.
80A.	Notice of rescheduled general meeting.
81.	General meetings: adjournment, quorum and minutes.
82.	Supplementing provisions as to general meetings.
82A.	Proxies.
83.	Special resolutions.

PART VI

Control and Supervision of Credit Unions by the Bank

General

84.	Functions of the Bank.
84A.	Power of Bank to make regulations.
85.	Assets and liabilities ratios and structures.
85A.	Liquidity.
85B.	Supplemental provisions to sections 85 and 85A.
86.	Control of advertising.

Regulatory directions and prohibition orders

87.	Power of Registrar to give regulatory directions.
88.	Procedural provisions relating to regulatory directions.
89.	Power of Court to prohibit continuance of certain contraventions.

Inspections and information

90.	Inspection of books and documents of credit union.
91.	Notice to furnish books, information etc.
92.	Investigations and calling of meetings.
93.	Provisions supplementary to investigations under section 92.
94.	Inspector's report and proceedings thereon.

Supervisory powers

95.	Registrar's power to appoint person as director of a credit union.
95A.	Bank’s power to require appointment of additional director of credit union.
96.	Removal or suspension of directors and members of Supervisory Committee.
97.	Cancellation of registration.
98.	Suspension of registration.
99.	Appeals against cancellation or suspension.

Administrative Provisions

100.	Public file of a credit union.
101.	Fees.
102.	Classification of information.
103.	Delivery to the Registrar of documents in legible form.
104.	Delivery to the Registrar of documents otherwise than in legible form.
105.	Exercise of Registrar's functions.
106.	Annual report by Registrar.

PART VII

Accounts and Audit

107.	Financial year of a credit union.
108.	Accounting records etc.
109.	Systems of control and safe custody.
110.	Accounting principles.
111.	Annual accounts.
112.	Balance sheet to be available to members.
113.	Obligation to appoint auditors.
114.	Qualification for appointment as auditor.
115.	Eligibility of auditor for re-election.
116.	Removal of auditor by Registrar.
117.	Resolutions relating to appointment and removal of auditors.
118.	Resignation of auditors.
119.	Requisitioning of general meeting and circulation of statement by resigning auditor.
120.	Auditor's report, right of access and to be heard.
121.	Regulations relating to accounts and audit.
122.	Auditor's duty to report to Registrar.
123.	Penalty for false statements etc. to auditors.
124.	Annual returns.

PART VIII

Disputes and Complaints

125.	Settlement of disputes.
126.	Arbitration and procedural matters.
127.	Investigation of complaints.

PART IX

Amalgamations and Transfers of Engagements

128.	Amalgamation of credit unions.
129.	Transfer of engagements between credit unions.

130.	Statement for members relating to proposed amalgamation or transfer of engagements.
131.	Confirmation of amalgamation or transfer.
132.	Distribution to members.

PART X

Winding up

133.	Petition of Registrar to wind up.
134.	Winding up under the Companies Acts.
135.	Winding up by instrument of dissolution.
136.	Restriction on dissolution or cancellation of registration.

PART XI

Appointment of Credit Union Administrator

137.	Administration orders.
138.	Provisional administrators.
139.	Effect of administration.
140.	Termination of administration.
141.	Procedural matters.

PART XII

Appointment of Examiner

142.	Power of the Court to appoint examiner.
143.	Petition for protection of the Court.
144.	Powers of the Circuit Court.
145.	The independent accountant's report.
146.	Interim protection pending report.
147.	Effect of petition to appoint examiner on creditors and others.
148.	Effect on receiver or provisional liquidator of order appointing examiner.
149.	Powers of an examiner.
150.	Production of documents and evidence.
151.	Further powers of the Court.
152.	Incurring of certain liabilities by examiner.
153.	Power to deal with charged property etc.
154.	Notification of appointment of examiner.
155.	General provisions as to examiners.
156.	Hearing relating to missing property etc.
157.	Duties of examiner.
158.	Contents of examiner's report under section 157.
159.	Repudiation of certain contracts.
160.	Appointment of creditors' committee.
161.	Proposals for compromise or scheme of arrangement.
162.	Consideration by members and creditors of proposals.
163.	Consideration of proposals by the Court.
164.	Confirmation or otherwise of proposals by the Court.
165.	Ending of protection.
166.	Revocation of confirmation on grounds of fraud.
167.	Disqualification to act as examiner.
168.	Remuneration, costs and expenses of examiners.
169.	Publicity.
170.	Hearing of proceedings otherwise than in public.

PART XIII

Offences and Civil Proceedings

171.	Offences: general provisions.
172.	Offences by officers etc.
173.	Fraud or misappropriation.
174.	Falsification of documents and other records.
175.	Furnishing false information etc.
176.	Recovery of costs and expenses.
177.	Liability of officer etc.
178.	Power of court to grant relief to officer etc.
179.	Judgments against a credit union.

PART XIV

Miscellaneous and General

180.	Credit Union Advisory Committee.
181.	Consultation.
182.	General regulations.
182A.	General regulations by Bank.
183.	Regulations to remove difficulties.
184.	Certain enactments not to apply to credit unions etc.
185.	Exemptions from stamp duty.
186.	Records and registers.
187.	Form, deposit and evidence of documents.
188.	Service of notices etc.
188A.	Delivery of notices etc.
189.	Transitional provisions.
190.	Disapplication of certain provisions to corporate credit unions.

FIRST SCHEDULE

Matters to be Provided for in Rules of Credit Union

SECOND SCHEDULE

Form of Receipt

THIRD SCHEDULE

Credit Committee, Credit Control Committee and Membership Committee

FOURTH SCHEDULE

Supplementary Provisions in Relation to Regulatory Directions

FIFTH SCHEDULE

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

SIXTH SCHEDULE

Matters to be provided for in rules of corporate credit union

Acts Referred to
Arbitration Acts, 1954 and 1980
Bills of Sale (Ireland) Acts, 1879 and 1883
Building Societies Act, 1989	1989, No. 17
Central Bank Act, 1971	1971, No. 24
Central Bank Acts, 1942 to 1997
Companies Act, 1963	1963, No. 33
Companies Act, 1990	1990, No. 33
Companies Acts, 1963 to 1990
Consumer Credit Act, 1995	1995, No. 24
Credit Union Act, 1966	1966, No. 19
Friendly Societies Acts, 1896 to 1977
Industrial and Provident Societies (Amendment) Act, 1978	1978, No. 23
Industrial and Provident Societies Acts, 1893 to 1978
Petty Sessions (Ireland) Act, 1851	14 & 15 Vict. c.93
Powers of Attorney Act, 1996	1996, No. 12
Statute of Limitations, 1957	1957, No. 6
Statutory Instruments Act, 1947	1947, No. 44

Number 15 of 1997

CREDIT UNION ACT 1997

REVISED

Updated to 30 September 2024

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:

Annotations

Modifications (not altering text):

Application of Act restricted (1.03.2013) by Personal Insolvency Act 2012 (44/2012), s. 135(2), S.I. No. 63 of 2013.

Set-off to be applied.

135.— ...

(2) Notwithstanding any provision of the Credit Union Act 1997, savings (within the meaning of that Act) of a debtor in a credit union shall be subject to set off in accordance with subsection (1) against a debt owed by the debtor to the credit union.

Application of Act restricted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 49(7)(a), S.I. No. 548 of 2011, and as substituted (15.07.2015) by European Union (Bank Recovery and Resolution) Regulations 2015 (S.I. No. 289 of 2015), reg. 187(c)(iv), in force as per reg. 1(2).

Effect of transfer order — general.

49.— ...

(7) Subsection (6) has effect notwithstanding anything in—

[(a) the Credit Union Act 1997, or]

...

Application of Act restricted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 69(6)(a), S.I. No. 548 of 2011, and as amended by European Union (Bank Recovery and Resolution) Regulations 2015 (S.I. No. 289 of 2015), reg. 187(d), in force as per reg. 1(2).

Effect of appointment of special manager.

69.— ...

(6) A special management order has effect notwithstanding anything in—

(a) the Companies Acts, [...] the Credit Union Act 1997 or the Central Bank Acts 1942 to 2011,

...

Editorial Notes:

Responsibilities and powers for managing the performance and exercise of functions and powers of Central Bank under Act delegated to Registrar of Credit Unions by Central Bank Act (22/1942), s. 33AA, as inserted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 26, S.I. No. 160 of 2003.

Act included within definition of “designated enactments” for purposes of Central Bank Act 1942 (22/1942), s. 2(1) and sch. 2 pt. 1 item 25, as inserted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 31 and as substituted (1.10.2010) by Central Bank Reform Act 2010 (23/2010), s. 14(1) and sch. 1 pt. 1 items 6 and 82, S.I. No. 469 of 2010.

Previous affecting provision: power to designate powers of members to Minister prescribed (21.12.2010) by Credit Institutions (Stabilisation) Act 2010 (36/2010), s. 47(1), S.I. No. 623 2010; reference to Act deleted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 110(5) and sch. 2 pt. 5 item 51, S.I. No. 548 of 2011.

Previous affecting provision: application of Act restricted (21.12.2010) by Credit Institutions (Stabilisation) Act 2010 (36/2010), s. 53(a), S.I. No. 623 2010; reference to Act deleted (28.10.2011) by Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011), s. 110(5) and sch. 2 pt. 5 item 56, S.I. No. 548 of 2011.

Provision for the continuance in force of certain existing regulations made by Minister for Enterprise, Trade and Employment under Act, capable of being continued in force by the Minister for Finance, made (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 36 and sch. 3 para. 27, S.I. No. 160 of 2003.

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Credit Union Act 1997