Delete

After subsection (6) insert:

“(7) Notwithstanding subsection (6) a credit union which is a sub-office of a registered credit union may cause its name, along with the registered name of the credit union, to be painted or affixed, and to be kept painted or affixed, in a conspicuous position and in letters easily legible, on the outside of its office.”.

Substitute “may decide to direct and direct the credit union to change its name to a name approved by the Bank” for “may direct the credit union to change its name to a name approved by the Bank”.

Insert after subsection (3):

“(3A) Before sending a copy of the amended rules to the Bank under subsection (2) the credit union is required to satisfy itself that the amendment is not contrary to the financial services legislation.”.

Substitute for subsections (4) and (5):

“(4) On being satisfied that an amendment of a credit union’s rules sent to it under subsection (2) is not contrary to the financial services legislation, the Bank shall issue to the credit union, within 3 months of its receipt of the amendment, an acknowledgement of registration which, unless the contrary is proved, shall be sufficient evidence that the amendment is duly registered.

(5) If the Bank is not satisfied that an amendment of a credit union’s rules sent to it under subsection (2) is not contrary to the financial services legislation, it shall refuse to register the amendment, in which case it shall give the credit union a notice of its refusal to register the amendment. The notice shall include a statement setting out the grounds for the refusal.”.

After subsection (3) insert:

“(3A) Subject to the rules of the credit union concerned, a member who held common bond of that credit union shall not cease to be a member solely because that member no longer holds the common bond of that credit union.”.

Substitute:

“(4) If a member of a credit union ceases to have the common bond required of members of that credit union, any such member (referred to as a non-qualifying member) shall be left out of account in determining for any purpose whether a common bond exists between the members of the credit union.”.

Substitute:

“(6) Notwithstanding anything in subsection (5), a member of a credit union who is not of full age may not be a member of the board of directors or of a principal Committee or an office manager of the credit union.”.

Substitute “(other than the reserves required to be held under section 45)” for “(other than the statutory reserve)”.

Substitute “requirements to hold reserves in accordance with section 45” for “requirement for the statutory reserve”.

Substitute “rate of interest offered” for “rate of interest payable”.

Delete.

Substitute:

“(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.”.

Substitute:

“(3) Subject to subsection (5), a loan to an officer is required to be approved by not less than two-thirds of the members of a special committee voting by secret ballot at a meeting at which the application for the loan is considered.”.

Substitute:

“(4) The special committee referred to in subsection (3) shall consist of—

(a) a majority of the board of directors, and

(b) at least one member of the credit committee,

but shall not include the applicant for the loan.”.

Substitute:

“(5) Notwithstanding subsection (3), a loan to an officer which does not exceed the value of the officer’s attached savings may be approved as mentioned in paragraph (b) or (c) of subsection (2).”.

Delete.

Delete.

Substitute:

“(3) For the purposes of the consideration of an appeal under this section, the appellate body shall not be regarded as quorate unless there are present a majority of the directors referred to in subsection (2)(a).”.

Substitute:

“(2) A notice under subsection (1) may be in a form that, when endorsed by the member on accepting a loan offered by the credit union, constitutes a credit agreement for the purposes of—

(a) sections 37B and 37C, or

(b) where the loan is for an amount between €200 and €75,000, the European Communities (Consumer Credit Agreements) Regulations 2010 (S.I. No. 281 of 2010).”.

Substitute:

“(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.”.

Substitute:

“(2) The credit union shall also ensure that the agreement specifies a cooling-off period under which the member has a right to withdraw from the agreement without penalty if the member gives to the credit union a written notice to that effect within 14 days after—

(a) the day on which the credit agreement was concluded, or

(b) the day on which the member receives contractual terms and conditions and information in accordance with sections 37C and 37D if that date is later than the date referred to in paragraph (a).”.

Delete.

Insert after subsection (4):

“(5) This section does not apply to credit agreements covered by the European Communities (Consumer Credit Agreements) Regulations 2010.”.

Insert after subsection (2):

“(3) This section does not apply to credit agreements covered by the European Communities (Consumer Credit Agreements) Regulations 2010.”.

Substitute:

“37E.—(1) For the purposes of sections 37C and 37D ‘annual percentage rate of charge’, in relation to a credit agreement entered into between a credit union and a member, means the annual percentage rate of charge as defined under Regulation 6 of the European Communities (Consumer Credit Agreements) Regulations 2010.

(2) The annual percentage rate of charge specified in a credit agreement shall be in accordance with Part 5 of the European Communities (Consumer Credit Agreements) Regulations 2010.”.

Delete.

Substitute:

“(2) If a credit union knowingly charges or accepts interest on a loan at a rate greater than that permitted under this section—

(a) all the interest agreed to be paid by the member shall be deemed to have been waived by the credit union; and

(b) any interest paid on the loan shall be recoverable summarily by the member (or his personal representative) as a simple contract debt.”.

Substitute:

“(5) If the Bank is of the opinion that any building or other land held by a credit union is not in the best interest of the credit union, it may decide to direct and direct the credit union to dispose of its interest in it.”.

Delete.

Substitute “reserves required to be held under section 45” for “statutory reserve”.

Delete.

Delete “or voluntary assistants”.

Delete.

Delete.

Substitute:

“(1) Subject to the following provisions of this Part, a credit union may provide, as principal or agent, additional services of a description that appears to the credit union and to the Bank, to be of mutual benefit to its members.”.

Substitute:

“(2) In this section and the following provisions of this Part ‘additional services’, in relation to a credit union, means any services other than those—

(a) for which provision is made by the preceding provisions of this Part, or

(b) which are being prescribed for the purposes of this section as being services of a description that appears to the Bank to be of mutual benefit to its members,

and regulations made by the Bank for the purposes of paragraph (b) may make the exclusion of any services from being additional services conditional on compliance with such conditions as may be prescribed by the Bank.”.

Substitute:

“(a) the credit union must adopt a decision to provide additional services of that description by a resolution passed by not less than two-thirds of the members present and voting at an annual general meeting or at a special general meeting called for the purpose of considering the resolution, or the credit union must adopt a decision to provide additional services of that description by a resolution of the board of directors;”.

Substitute:

“(7) The Bank may specify in writing such requirements as it considers necessary for credit unions providing additional services; and different requirements may be so specified in relation to different descriptions of additional services and apply to different classes of credit unions.”.

Substitute:

“(8) A credit union shall not be able or, as the case may be, shall cease to be able to provide additional services of a description to which requirements under subsection (7) apply if—

(a) the credit union does not satisfy those requirements, or

(b) within the period of 12 months beginning on the date on which approval for the provision of the services is given under section 49, the credit union does not begin to provide those services;

but, if a credit union ceases to comply with any of those requirements, the cessation shall not, of itself, impose an obligation on the credit union to dispose of any property or right acquired in connection with the provision of the additional services concerned.”.

Delete “or voluntary assistants”.

Delete “or voluntary assistants”.

Delete.

Substitute:

“(6) A vacancy arising from the removal of a director under this section shall be filled in accordance with section 53(15).”.

Substitute:

“(2) In the event that the number of directors of a credit union falls to less than half the number specified in the registered rules, the secretary of the credit union shall forthwith notify the Bank and the board oversight committee of the credit union.”.

Substitute:

“(4) Where any of the following events occurs—

(a) the secretary of the credit union has given notice under section 53(17) that all the directors of the credit union intend to resign on the same date,

(b) all the directors have been removed or suspended in accordance with section 96(1), or

(c) there is no board of directors,

then the board oversight committee shall convene a special general meeting of the credit union, within one month of the occurrence of the event in question, to elect a board of directors.”.

Delete.

Substitute:

“(1) At a meeting of the board of directors of a credit union—

(a) which is held immediately after the organisation meeting, an annual general meeting or special general meeting at which an election is held for members of the board of directors, and

(b) which is chaired by a member of the board oversight committee,

the board of directors shall elect by secret ballot directors to fill such of the principal posts in the credit union as are then vacant; and, for the purposes of this section, the principal posts in a credit union are the posts of chair, vice-chair and secretary.”.

Delete.

Substitute:

“(5) The chair or secretary of a credit union shall notify the Bank in writing of the election, appointment, retirement, removal or resignation from office of chair, vice-chair, director, secretary, or committee member and the notification shall—

(a) be made within 14 days of the election, appointment, retirement, removal or resignation, and

(b) state the full name and address of the officer concerned.”.

Delete.

Delete.

Substitute:

“(1) Without prejudice to section 56A, the board of directors shall appoint—

(a) a credit committee, which shall decide on applications for credit;

(b) a credit control committee, which shall seek to ensure the repayment of loans by members of the credit union in accordance with their loan agreements; and

(c) a membership committee which shall consider applications for membership of the credit union;

and the Third Schedule shall apply to the committees.”.

Substitute:

“(1) A credit union shall not pay any remuneration, directly or indirectly, to—

(a) a director of the credit union, or

(b) a member of the board oversight committee or a principal Committee of the credit union,

for any service performed by that person in that capacity.”.

Delete “or voluntary assistant”.

Delete.

Substitute:

“(2) The documents to which subsection (1) applies are any of the following, so far as not required by law to be under the seal of a credit union—

(a) a conveyance or transfer of property of any description by a credit union; and

(b) any other document which does not fall within section 55(1)(o)(vi) but by which a credit union enters into an obligation of any description.”.

Delete “or voluntary assistant”.

Substitute for paragraph (g):

“(g) which is made to the Bank for the purposes of its functions in relation to credit unions; or

(h) which is made to the Credit Union Restructuring Board for the purposes of its functions under the Credit Union and Co-operation with Overseas Regulators Act 2012.”.

Delete “or voluntary assistant”.

Substitute:

“(1) A person who has been adjudicated bankrupt and whose bankruptcy still subsists or who has been convicted of an offence in relation to a credit union or an offence involving fraud or dishonesty shall not—

(a) sign an application form for the registration of a society as a credit union,

(b) be qualified to be appointed or to act as an officer, auditor, receiver or liquidator of a credit union,

(c) directly or indirectly take part in or be concerned in the management or operation of a credit union, or

(d) permit his or her name to be put forward for election or appointment to any of the positions referred to in paragraph (b).”.

Substitute:

“(2) If a person who is a member of—

(a) the board of directors,

(b) the board oversight committee, or

(c) a principal Committee,

of a credit union is adjudicated bankrupt or convicted of such an offence as is referred to in subsection (1), then such person shall forthwith cease to hold office and the vacancy thereby created shall be deemed to be a casual vacancy and be filled accordingly.”.

Delete.

Delete “or voluntary assistant”.

Delete “or voluntary assistant”.

Delete “or voluntary assistant” in both places where it occurs.

Substitute:

“(4) If any person fails to comply with a requirement under subsection (1), the Circuit Court, on the application to it of the credit union, may make an order requiring that person to comply with the requirement.”.

Substitute:

“(f) the membership numbers, names and addresses of the officers of the credit union (excluding any person who is an officer solely by virtue of being an employee or a voluntary assistant), with the offices held by them respectively, the dates on which they assumed office and, where applicable, on which they ceased to hold office.”.

Substitute:

“(5) The Bank or a person acting on its behalf may at all reasonable hours inspect any particulars in any register or duplicate register kept under this section.”.

Delete.

Substitute:

“(c) by the members or officers (other than any person who is an officer solely by virtue of being a voluntary assistant) or former members or officers (other than any person who was an officer solely by virtue of being a former voluntary assistant) of the credit union.”.

Substitute “the Bank may call or require the calling by the credit union of such a meeting” for “the Bank may call or direct the calling of such a meeting”.

Substitute:

“(1) The board of directors or the board oversight committee of a credit union may, whenever they think fit, convene a special general meeting of the credit union.”.

Delete.

Substitute:

“(a) of excluding the right to demand a poll at a general meeting (or an adjourned meeting) on any question, other than the election of the chair of the meeting (or the adjourned meeting); or”.

Substitute “subject to regulations made under section 27(2)” for “subject to subsections (2) and (3) of section 27”.

Substitute “the Bank may decide to give and give the credit union such regulatory directions as it thinks proper” for “the Bank may give the credit union such regulatory directions as it thinks proper”.

Delete.

Substitute “The Bank may also decide to give and give regulatory directions” for “The Bank may also give regulatory directions”.

Delete “an offence under section 27(2) or section 33(6) or”.

Substitute:

“(c) that, since the registration of the credit union, the factors taken into account in granting registration have so changed that, if the society were now applying for registration, it would be refused; or

(d) that the credit union has failed to comply with any terms and conditions imposed by the Bank under section 65(6) of the Credit Union and Co-operation with Overseas Regulators Act 2012 relating to the provision of stabilisation support under this Act.”.

Substitute:

“(1) When the Bank gives any regulatory directions to a credit union,—

(a) it shall serve the directions at the registered office of the credit union or cause the directions to be so served, and

(b) the secretary of the credit union concerned shall, as soon as practicable, notify every member of the board of directors and every member of the board oversight committee of that credit union of the giving of those directions,

but a failure to notify in accordance with paragraph (b) shall not affect the validity of the directions.”.

Substitute:

“(a) on summary conviction, to a class C fine; and”.

Delete “voluntary assistant,”.

Delete “voluntary assistant,”.

Substitute:

“(b) by the officers or former officers (other than any person who is or was an officer solely by virtue of being a voluntary assistant or former voluntary assistant) of the credit union or any of them;”.

Substitute:

“(c) the Bank may appoint a person to be chair of the meeting but, if it does not do so, the members present at the meeting shall appoint the chair; and”.

Substitute:

“(b) by the members or former members or the officers (other than any person who is or was an officer solely by virtue of being a voluntary assistant) of the credit union or any of them;”.

Delete “, voluntary assistants”.

Delete “, voluntary assistants”.

Substitute:

“(4) Notwithstanding anything in section 68, all expenses of and incidental to the appointment of a person under this section shall be defrayed out of the funds of the credit union, or by the members or former members or the officers (other than any person who is or was an officer solely by virtue of being a voluntary assistant) of the credit union in such proportions as the Bank shall direct.”.

Delete “, voluntary assistant”.

Substitute “board oversight committee” for “Supervisory Committee” in each place where it occurs.

Substitute “or auditor of a credit union” for “auditor or voluntary assistant of a credit union”.

Substitute:

“(b) shall at all reasonable times be open to inspection by the members of the board of directors and the board oversight committee.”.

Substitute:

“(7) Where the accounting records of the credit union are kept at a place other than the registered office of the credit union, the chair shall have responsibility for ensuring that a written record of their location is kept.”.

Substitute:

“(b) the information obtained by or furnished to the Bank is sufficiently accurate for the purposes for which it is obtained or furnished and is available as and when required by the Bank.”.

Substitute for (d) and (e):

“(d) all income and charges relating to the financial year to which the accounts relate shall be taken into account without regard to the date of receipt or payment;

(e) in determining the aggregate amount of any item the amount of each individual asset or liability that falls to be taken into account shall be determined separately; and

(f) in determining how amounts are presented within items in the income and expenditure account and balance sheet, the directors of a credit union shall have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting principles or practice.”.

Substitute “as the Bank may prescribe” for “as the Bank may direct”.

Substitute:

“(c) it has been signed by the manager of the credit union, by a member of the board oversight committee acting on behalf of that committee and by a member of the board of directors acting on behalf of the board.”.

Substitute:

“(5) If, in relation to any income and expenditure account or balance sheet of a credit union for a financial year, a member of the board of directors fails to take all reasonable steps to secure compliance with the provision of subsection (1) which is applicable in that case, the member shall be guilty of an offence and liable on summary conviction to a class C fine unless the member proves that there were reasonable grounds for the member to believe that a competent and reliable person was charged with the duty of seeing that the relevant provision was complied with, and was in a position to discharge that duty.”.

Substitute:

“(1) A person shall not be qualified for election as auditor of a credit union unless the person—

(a) is a member of a recognised accountancy body within the meaning of the European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010 (S.I. No. 220 of 2010) and holds a valid practicing certificate, or

(b) is otherwise for the time being authorised by the Irish Auditing and Accounting Supervisory Authority under any provision of the Companies Acts to be appointed as a public auditor.”.

Substitute:

“(b) a parent, spouse or civil partner, brother, sister or child of an officer of the credit union; or”.

Substitute:

“(2) Before signing the auditor’s report, the auditor of a credit union shall meet with and report to the directors of the credit union and the members of the board oversight committee on the annual accounts and any matter relating to those accounts which the auditor considers should be drawn to their attention.”.

Delete “and voluntary assistants”.

Delete “or voluntary assistant”.

Delete “or voluntary assistant” in both places where it occurs.

Substitute:

“(1) A credit union which proposes—

(a) to amalgamate with one or more other credit unions,

(b) to transfer its engagements to another credit union, or

(c) to undertake to fulfil the engagements of another credit union,

shall, subject to subsection (2), cause to be sent to every member entitled to notice of a general meeting of the credit union and to the auditor of the credit union a statement, in such form as the Bank may specify in writing, showing the matters specified in subsection (3), together with a copy of the annual accounts for each credit union concerned for the most recent financial year.”.

Substitute for paragraphs (a) and (b):

“(a) a notice of the resolution passed by the board of directors,

(b) a statement, in such form as the Bank may prescribe, showing the matters specified in subsection (3), and

(c) a copy of the annual accounts for each credit union concerned for the most recent financial year.”.

Substitute “subsection (1) or (2)” for “subsection (1)”.

Substitute:

“(5) Where a credit union is wound up by virtue of this section, sections 293 to 299 of the Companies Act 1963 and sections 202 to 204 of the Companies Act 1990, in so far as they relate to the liabilities of directors and officers (within the meaning of those Acts) of a company being wound up, shall apply with any necessary modifications in relation to the officers of the credit union to whom paragraph (a) of the definition of ‘officer’ in section 2 applies.”.

Substitute:

“(7) A credit union shall not be dissolved as mentioned in subsection (6) if—

(a) within one month of the date of the advertisement referred to in that subsection, a member or other person interested in or having any claim on the funds of the credit union commences proceedings in the Court to set aside the dissolution of the credit union,

(b) not less than 7 days before those proceedings are commenced, the person intending to institute them serves notice of intention on the Bank, and

(c) the dissolution of the credit union is set aside accordingly,

and, within 7 days from the making of any order setting the dissolution aside, the credit union shall send notice of the order to the Bank.”.

Substitute:

“(8) If the date of the meeting at which the special resolution referred to in subsection (1) is passed falls within one year after the credit union has changed its name, the former name, as well as the existing name, shall appear on all notices and advertisements relating to its dissolution under this section.”.

Substitute:

“(a) is signed by the secretary or other officer (other than a person who is an officer solely by virtue of being a voluntary assistant) of the dissolving or transferor credit union approved by the Bank; and”.

Delete “and voluntary assistants”.

Delete “voluntary assistants,”.

Delete “, voluntary assistants”.

Delete “, voluntary assistant” in both places where it occurs.

Delete “, voluntary assistant”.

Substitute:

“(5) If the examiner without reasonable excuse fails to comply with subsection (4), the examiner shall be guilty of an offence and liable to a class C fine.”.

Delete.

Delete.

Substitute:

“(2) A credit union or other person who is guilty of an offence under this Act, other than an offence for which a different penalty is expressly provided, shall be liable—

(a) on summary conviction to a class C fine or to imprisonment for a term not exceeding 3 months or both; or

(b) on conviction on indictment to a fine not exceeding €6,348.69 or to imprisonment for a term not exceeding 2 years or both.”.

Substitute:

“(3) If the contravention in respect of which a credit union or other person is convicted of an offence under any provision of this Act is continued after that conviction, that credit union or other person shall be guilty of a further offence for every day on which the contravention continues and for each such offence shall be liable on summary conviction to a class E fine or, on conviction on indictment, to a fine not exceeding €1,904.61.”.

Substitute:

“(4) Summary proceedings for an offence against a provision of this Act may be brought by the Bank.”.

Substitute:

“(a) on summary conviction to a class C fine or to imprisonment for a term not exceeding one year or both; or”.

Delete “or voluntary assistant”.

Delete “or voluntary assistant”.

Delete “or voluntary assistant” in both places where it occurs.

Delete “or voluntary assistant”.

Substitute:

“(6) The Minister shall from time to time nominate one member of the Advisory Committee to act as its chair.”.

Delete.

Delete.

Delete.

Substitute:

“(n) prescribing any other matter which, under any provision of this Act, is to be prescribed except where it is provided that the matter is to be prescribed by the Bank.”.

Substitute:

“(a) if the offence is tried summarily, a class C fine, or”.

Substitute:

“(1) A credit union shall maintain, in addition to the records required to be kept by a credit union by virtue of section 108, such other records as may be prescribed by the Bank.”.

Substitute “specified by the Bank” for “specified by directions given by the Bank”.

Substitute:

“6. The appointment and removal of the board of directors, the board oversight committee and any principal Committee and of other officers and their respective powers and remuneration.”.

Substitute:

“7. Determination (subject to any requirements under section 27(2)) of the maximum amount of the interest in the shares of the credit union which may be held by any member.”.

Insert after paragraph 13:

“14. Provision for dealing with directors and members of the board oversight committee who are more than 90 consecutive days in arrears under a debt obligation to the credit union up to and including the suspension or removal from the board of such directors.”.

Delete.

Delete.