Insurance and other arrangementsE+W+S
F115 Insurance against fraud or other dishonesty.E+W+S
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 15 omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(11)
16 Guarantee funds.E+W+S
(1)Subject to the provisions of this section, a credit union, or any two or more credit unions, may enter into arrangements with a person carrying on the business of insurance for the purpose of making funds available to meet losses incurred by members of a credit union which is a party to the arrangements; and any two or more credit unions may enter into any other kind of arrangements for that purpose.
(2)Subject to subsection (3) below, a credit union shall have power to make contributions under arrangements made in accordance with subsection (1) above, and such arrangements may in particular provide for the vesting of a fund in trustees appointed under the arrangements.
(3)Arrangements under subsection (1) above shall not come into force and no contribution shall be made thereunder by a credit union, until they have been approved by the [F2Authority]; and the [F2Authority] shall not approve any such arrangements unless they provide that any variation of their terms shall also require [F3its] approval.
Textual Amendments
F2Words in s. 16(3) substituted (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1), Sch. 3 Pt. IV para. 280(a) (with art. 13(3)); S.I. 2001/3538, art. 2(1)
F3Word in s. 16(3) substituted (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1), Sch. 3 Pt. IV para. 280(b) (with art. 13(3)); S.I. 2001/3538, art. 2(1)