Credit Union Act 1997

37B

F52 [ Credit agreement in respect of loans exceeding 200.

37B. (1) If the amount of a loan approved by a credit union exceeds 200, the credit union shall ensure that

( a ) a credit agreement is entered into in writing and signed by the member concerned and by or on behalf of all other parties to the agreement, and

( b ) a copy of the agreement

(i) is handed personally to the member immediately after the agreement is entered into, or

(ii) is delivered or sent to the member within 10 days after the agreement is entered into, and

( c ) any contract of guarantee relating to the loan is in writing and signed by the guarantor and by or on behalf of all other parties to the agreement, and a copy of the guarantee and the agreement

(i) is handed personally to the guarantor immediately after the contract is entered into, or

(ii) is delivered or sent to the guarantor within 10 days after the contract is entered into.

F53 [ (2) For the purposes of this section, a contract of guarantee

( a ) includes, where the member is not of full age, an indemnity provided by a parent or guardian of the member or by another person approved by the board of directors, and

( b ) may form part of the relevant agreement or may be in a separate document. ]

(3) A credit union that makes a loan without having complied with subsection (1) commits an offence.

(4) If a credit union is found guilty of an offence against subsection (3) , the following provisions apply:

( a ) the credit union is taken to have waived all interest agreed to be paid by the member in respect of the loan;

( b ) the member, or the member s personal representative, is entitled to recover as a debt, by proceedings brought in a court of competent jurisdiction, any interest paid in respect of the loan. ]

Annotations

Amendments:

F52

Inserted (1.01.2005) by Central Bank and Financial Services Authority of Ireland Act 2004 (21/2004), s. 33 and sch. 3 pt. 14 item 1, S.I. No. 455 of 2004.

F53

Substituted (11.10.2013) by Credit Union and Co-operation with Overseas Regulators Act 2012 (40/2012), s. 35 and sch. 1 item 21, S.I. No. 393 of 2013.