Registration as a credit union

1AF1Common bonds appropriate to a credit union

1

Under the rules of the society admission to membership must be restricted to persons who fall within one or more common bonds appropriate to a credit union (whether or not any other qualifications for admission to membership are required under the rules).

2

The common bonds appropriate to a credit union are—

a

following a particular occupation;

b

being employed by a particular employer;

c

residing or being employed in a particular locality;

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 for the time being approved by the F2FCA.

3

If the rules of a credit union so provide, a person who is a member of the same household as, and is a relative of, another person who is a member of the credit union and falls directly within a common bond is treated as also falling within that common bond.

4

For the purposes of this section, a body corporate or a person applying for membership in his capacity as a partner in a partnership or an officer or member of the governing body of an unincorporated association—

a

falls within the common bond specified in paragraph (a) of subsection (2) if the principal business of the body corporate, partnership or unincorporated association—

i

requires it to employ or otherwise engage persons who follow that occupation, or

ii

relates to that occupation in some other way;

b

falls within the common bond specified in paragraph (b) of that subsection if the body corporate, partnership or unincorporated association—

i

employs the persons who qualify for membership under that common bond, or

ii

provides services, or is otherwise related, to that employer;

c

falls within the common bond specified in paragraph (c) of that subsection if the body corporate, partnership or unincorporated association has a place of business in, or other significant connection with, that locality; and

d

falls within the common bond specified in paragraph (d) of that subsection if the body corporate, partnership or unincorporated association is a member of a bona fide organisation or otherwise associated with other members of the society for the purpose specified in that paragraph.

5

The F3FCA may accept as sufficient evidence that the requirement of this section is met a statutory declaration to that effect given by three members and the secretary of the society.