65.— (1) (a) Subject to subsection (2) and section 64, the Bank may approve the provision of stabilisation support under this section to a credit union where the credit union does not meet the regulatory reserve requirement but only if—

(i) its regulatory reserve is equal to or greater than 7.5 per cent of the total assets of the credit union, and

(ii) in the opinion of the Bank, the credit union is viable as a credit union.

(b) In this subsection “total assets of the credit union” means all of the assets of the credit union concerned having due regard to the accounting principles set out in section 110 of the Principal Act after deducting any provisions for bad or doubtful debts.

(2) Until the commencement of an order under section 43 (1), stabilisation support shall not be approved by the Bank for a credit union under subsection (1) unless the Credit Union Restructuring Board has recommended that the credit union be considered by the Bank for stabilisation support.

(3) The Credit Union Restructuring Board may only make a recommendation to the Bank in relation to an individual credit union for the purposes of subsection (1) if:

(a) the credit union is not party to a restructuring proposal approved or being considered for approval as part of a restructuring plan under section 45(5)(a), and

(b) the credit union satisfies the requirements of subsection (1)(a)(i).

(4) Before deciding to approve the provision of stabilisation support under subsection (1), the Bank shall have regard to the following:

(a) the extent to which the credit union concerned has complied with, or failed to comply with, the regulatory requirements imposed on the credit union by or under the Credit Union Acts 1997 to 2012 (including requirements regarding systems and controls) or the Central Bank Acts 1942 to 2012 or otherwise imposed on that credit union;

(b) any actions, plans or other strategies prepared or implemented by the credit union concerned to protect or improve its regulatory reserve requirement;

(c) if stabilisation support were to be provided, the ability in the opinion of the Bank of the credit union concerned—

(i) to maintain its reserve requirement, and

(ii) to fund the business of the credit union,

after the provision of stabilisation support for a period of at least 3 years after the provision of such stabilisation support under this Act;

(d) any plans, information or analysis submitted by the credit union concerned, under subsection (5) or otherwise;

(e) the availability to the Bank of up-to-date and accurate financial information and accounts of the credit union concerned, including (in the opinion of the Bank) full and fair financial disclosure;

(f) the previous financial performance of the credit union concerned prior to applying for stabilisation support including any previous stabilisation support received under this section or otherwise;

(g) any other matters that the Bank considers reasonably relevant, in the particular circumstances, having regard to the Bank’s other functions;

(h) such terms and conditions as the Minister considers appropriate to attach to the stabilisation support.

(5) For the purpose of exercising its functions under this section, the Bank may request the provision of stabilisation support by the Minister under section 57(6) and may require—

(a) the credit union concerned to submit such plans, information or analysis as it considers reasonably necessary, and

(b) that any such plans, information or analysis is verified by a report of a third party approved by the Bank and in accordance with requirements determined by the Bank.

(6) The provision of stabilisation support to a credit union under this section may be approved by the Bank on such terms and conditions as the Bank considers appropriate, including—

(a) changes to the governance of the credit union,

(b) changes to the business, operations, systems and processes within the credit union,

(c) any requirement (in the form of a pre-condition or otherwise) by the Bank on the credit union to accept, or procure on such terms and conditions as the Bank considers appropriate, other support, including financial advice, technical advice and other advice,

(d) any of the measures which may be contained in a regulatory direction under section 87(3) of the Principal Act,

(e) compliance by the credit union with the above terms and conditions, including periodic targets for the credit union to meet and the preparation of updates or such other reports as the Bank may require to satisfy itself as to the credit union’s compliance with the terms and conditions.

(7) The approval by the Bank of the provision of stabilisation support under this section is not a warranty by the Bank as to the solvency of the credit union or as to whether or not the credit union will in fact meet its reserve requirements, or any other requirement to which the credit union is subject.