Credit Union Act 1997

Restrictions on withdrawal of shares and deposits.

32

32. (1) Notwithstanding anything in the rules of a credit union or in any contract, a credit union may require not less than 60 days’ notice from a member of his intention to withdraw a share in the credit union and a member may not withdraw any shares at a time when a claim due on account of deposits is unsatisfied.

(2) Notwithstanding anything in the rules of a credit union or in any contract, a credit union may require not less than 21 days’ notice from a member of his intention to withdraw a deposit.

F36 [ (3)( a ) If a member of a credit union seeks to withdraw savings in the credit union at a time when the member has an outstanding liability (including a contingent liability) to the credit union, whether as borrower, guarantor or otherwise, that withdrawal shall only be permitted

(i) if the savings are not attached savings; or

(ii) where the savings are attached savings, if the withdrawal of such attached savings is approved by a majority of the members of the board of directors voting at a meeting of the board;

but no approval may be given under subparagraph (ii) if, were the withdrawal to be approved, the value of the member s attached savings immediately after the withdrawal would be less than 25 per cent of the member s outstanding liability.

( b ) Any savings that existed in the credit union immediately before the commencement of this provision (inserted by the Credit Union and Co-operation with Overseas Regulators Act 2012) that were not withdrawable under this subsection immediately before that commencement shall be treated as attached savings after that commencement.

( c ) Where the outstanding liability reduces below the level of attached savings, the amount of the attached savings shall not be greater than the outstanding balance of the loan.

( d ) In this subsection

attached savings means a share in, or deposit with, a credit union which is pledged in writing by a member as security for a loan at the time of the issuing of the loan to the member or guaranteed by the member;

savings means a share in, or deposit with, the credit union. ]

(4) If the F37 [ Bank ] sees fit to do so in the circumstances of a credit union, F37 [ it ] may, on such terms as F37 [ it ] thinks proper, by notice in writing addressed to the credit union provide that subsection (3) shall apply in relation to the credit union with the substitution of a higher or lower percentage than that for the time being applicable to the credit union under that subsection.

(5) Where a member of a credit union is indebted to the credit union and consents in writing to the credit union acting under this subsection, the credit union may, by way of set-off against the indebtedness, withdraw any of the member's shares or deposits; and such a withdrawal may be made notwithstanding anything in subsections (2) and (3).

Annotations:

Amendments:

F36

Substituted (11.10.2013) by Credit Union and Co-operation with Overseas Regulators Act 2012 (40/2012), s. 35 and sch. 1 item 13, S.I. No. 393 of 2013.

F37

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 15, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.