Credit Union Act 1997

Effect of petition to appoint examiner on creditors and others.

147

147. (1) Subject to section 146 , during the period beginning with the date of the presentation of a petition under section 142 and (subject to subsections (4) and (5) of section 157 ) ending on the expiry of 70 days from that date or on the withdrawal or refusal of the petition, whichever first happens, the credit union shall be deemed to be under the protection of the Court.

(2) For so long as a credit union is under the protection of the Court in a case under this Part, the following provisions shall have effect—

( a) no proceedings for the winding up of the credit union may be commenced or resolution for winding up passed in relation to the credit union and any resolution so passed shall be of no effect;

( b) any other proceedings in relation to the credit union may be commenced only with the leave of the Court and subject to such terms as the Court may impose;

( c) on the application of the examiner, the Court may make such order as it thinks proper in relation to any existing proceedings, including an order to stay those proceedings;

( d) no receiver shall be appointed over any part of the assets of the credit union and, if a receiver was appointed before the presentation of a petition under section 142 , then, subject to section 148 , he shall not be able to act;

( e) no attachment, sequestration, distress or execution shall be put into force against the property of the credit union, except with the consent of the examiner;

( f) where any claim against the credit union is secured by a charge, pledge, or other encumbrance of, on or affecting the whole or any part of the property of the credit union, no action may be taken to realise the whole or any part of that security, except with the consent of the examiner;

( g) no steps may be taken to repossess goods in the credit union's possession under any hire-purchase agreement (within the meaning of section 153 ) except with the consent of the examiner;

( h) where, under any enactment, rule of law or otherwise any person other than the credit union is liable to pay all or any part of the debts of the credit union—

(i) no attachment, sequestration, distress or execution shall be put into force against the property of that person in respect of the debts of the credit union, and

(ii) no proceedings of any sort may be commenced against that person in respect of the debts of the credit union;

( i) no set-off between separate bank accounts of the credit union shall be effected, except with the consent of the examiner, and in this paragraph “ bank account” includes an account with any person exempt by virtue of section 7 (4) of the Central Bank Act, 1971, from the requirement of holding a licence under section 9 of that Act.