Credit Union Act 1997

Provisional administrators.

138

138. (1) At any time after the presentation of a petition under section 137 (1) (and before the making of an administration order), the Court may—

( a) upon the ex parte application of the F283 [ Bank ], and

( b) upon prima facie proof by affidavit of one or more of the matters mentioned in paragraphs (a) to (c) of subsection (2) of section 137 , and

( c) without advertisement or notice to any person,

appoint such person as may be nominated by the F283 [ Bank ] to act as provisional administrator of the credit union pending the hearing of the petition.

(2) Unless the context otherwise requires, any reference in the following provisions of this Part to an administrator of a credit union includes a reference to a provisional administrator appointed under this section.

(3) If—

( a) an appointment of a provisional administrator of a credit union is made under this section, but

( b) on the hearing of the petition no administration order is made,

the appointment of the provisional administrator shall be annulled; but the annulment shall not invalidate any act done or other function performed by him as provisional administrator.

(4) Where the appointment of a person as provisional administrator of a credit union is annulled under subsection (3), he shall nevertheless be entitled to be paid out of the assets of the credit union all the costs, charges and expenses properly incurred by him as provisional administrator, including such sum as the Court may fix for his remuneration, and may retain the amount of those costs, charges and expenses out of the assets of the credit union.