Credit Union Act 1997

PART III

Operation of Credit Unions

Business and raising of funds

General principles.

26

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 F28 [ 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.

Annotations:

Amendments:

F28

Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 24 item 13, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.