Credit Union Act 1997

Conditions for registration as a credit union.

6

6. (1) A society may be registered under this Act as a credit union if the F5 [ Bank ] is satisfied that each of the following conditions is fulfilled—

( a) the society is formed for the objects specified in paragraphs (a) to (c) of subsection (2) and for no other purposes beyond those specified in paragraphs (d) to (g) of that subsection;

( b) admission to membership of the society is restricted to persons each of whom has, in relation to all the other members, at least one of the common bonds specified in subsection (3);

( c) it has at least 15 members who are of full age;

( d) its rules comply with section 13 ;

( e) the place which under those rules is, or is to be, the society's registered office is in the State;

( f) F6 [ ]

( g) it has in force (or will have in force if registered) such a policy of insurance as is required by section 47 .

(2) The objects referred to in subsection (1)(a) are—

( a) the promotion of thrift among its members by the accumulation of their savings;

( b) the creation of sources of credit for the mutual benefit of its members at a fair and reasonable rate of interest;

( c) the use and control of members' savings for their mutual benefit;

( d) the training and education of its members in the wise use of money;

( e) the education of its members in their economic, social and cultural well-being as members of the community;

( f) the improvement of the well-being and spirit of the members' community; and

( g) subject to section 48 , the provision to its members of such additional services as are for their mutual benefit.

(3) The common bonds referred to in subsection (1)(b) are—

( a) following a particular occupation;

( b) residing or being employed in a particular locality;

( c) being employed by a particular employer or having retired from employment with a particular employer;

( d) being a member of a bona fide organisation or being otherwise associated with other members of the society for a purpose other than that of forming a society to be registered as a credit union;

( e) any other common bond approved by the F5 [ Bank ].

(4) In ascertaining whether a common bond exists between the members of a society, the F5 [ Bank ]

( a) shall have regard to the qualifications which are stated in the rules to be required for admission to membership of the society, and

( b) may, if F5 [ it ] considers it proper in the circumstances of the case, treat the fact that admission to membership is restricted as mentioned in subsection (1)(b) as sufficient evidence of the existence of a common bond.

(5) For the purposes of this Act, if the rules of a credit union so provide, a person shall be treated as having the qualification required for admission to membership stated in those rules if he is a member of the same household as, and is a member of the family of, another person who is a member of the credit union and who has a direct common bond with those other members.