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(1)All shares in a credit union shall be of £1 denomination and may, subject to the rules of the credit union, be subscribed for either in full or by periodical or other subscriptions but no share shall be allotted to a member until it has been fully paid in cash.
(2)Shares in a credit union shall not be transferable and a credit union shall not issue to a member a certificate denoting ownership of a share.
(3)Nothing in subsection (2) above shall affect the operation of section 24(1) of the 1965 Act (transfer in pursuance of nomination on death of nominator).
(4)Subject to subsection (5) below, shares in a credit union shall be withdrawable but a credit union shall not issue shares except on terms enabling it to require not less than sixty days’ notice of withdrawal.
(5)If a withdrawal of shares would reduce a member’s paid-up shareholding in the credit union to less than his total liability (including contingent liability) to the credit union whether as borrower, guarantor or otherwise, then—
[F1(a)in the case of a member to whom there is a loan by the credit union which is treated by virtue of section 11A below as a secured loan, the withdrawal shall not be permitted;]
F1(b)in any other case the withdrawal shall be permitted only at the discretion of the committee.
Textual Amendments
F1S. 7(5)(a) substituted (1.9.1996) by S.I. 1996/1189, art. 5(2)
(1)Subject to sections 9 and 10 below, a credit union shall not accept a deposit from any person except by way of subscription for its shares.
F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2S. 8(2)(4)(5) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(5)
(1)A credit union may take deposits F3. . .from a person who is under the age at which, by virtue of section 20 of the 1965 Act, he may become a member of the credit union F3. . .
F4(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3Words in s. 9(1) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(6)(a)
F4S. 9(2)-(5) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(6)(b)
(1)A credit union which provides an ancillary service to a member or any other person from whom the credit union has accepted a deposit may charge a fee to cover the cost of providing that service.
(2)In this section, “ancillary service” means any service which is ancillary to the activity of accepting a deposit or making a loan, and includes—
(a)the making or receiving of payments, made by way of standing order, direct debit or any other means, as agent for a member or any other person from whom the credit union has accepted a deposit;
(b)issuing and administering means of payment (for example, chequebooks and debit cards);
(c)money transmission services;
(d)giving advice on the services specified by paragraphs (a) to (c) above.]
Textual Amendments
F5S. 9A inserted (13.2.2003) by Regulatory Reform (Credit Unions) Order 2003 (S.I. 2003/256), arts. 1, 5
(1)A credit union may borrow money F6. . ..
F7(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F6Words in s. 10(1) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(7)(a)
F7S. 10(2)-(6) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(7)(b)
[F8(1)A credit union may make to a member a loan, upon such security (or without security) and terms as the rules of the credit union may provide.]
F9(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F11(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)A credit union may charge interest on loans made by it but such interest shall be at a rate not exceeding one per cent. per month, or such other rate as may from time to time be specified, on the amount of the loan outstanding and such interest shall be inclusive of all administrative and other expenses incurred in connection with the making of the loan.
F9(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)In this section “specified” means specified by order made by the F12. . . Treasury.
Textual Amendments
F8S. 11(1) substituted (2.7.2002) by S.I. 2002/1501, arts. 1(1), 2(8)(a)
F9S. 11(2)(6) repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 22, Sch. 22; S.I. 2001/3538, art. 2(5)
F10S. 11(3) repealed (1.9.1996) by S.I. 1996/1189, art. 6(a)
F11S. 11(4) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(8)(b)
F12Words in s. 11(7) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1)(2), Sch. 3 Pt. IV para. 273, Sch. 4 (with art. 13(3)); S.I. 2001/3538, art. 2(1)
Modifications etc. (not altering text)
C1S. 11(7): Functions of the chief registrar transferred to the Treasury (1.12.2001) by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. I (with art. 5); S.I. 2001/3538, art. 2(1)
(1)This section applies where—
(a)a credit union makes a loan to a member of the credit union, and
(b)at the time the loan is made, the member’s paid-up shareholding in the credit union is equal to or greater than his total liability (including contingent liability) to the credit union, whether as borrower, guarantor or otherwise.
(2)On the application of the member to the credit union, the loan shall be treated for the purposes of this Act as a secured loan.]
Textual Amendments
F13S. 11A inserted (1.9.1996) by S.I. 1996/1189 arts. 1, 5
Textual Amendments
F14S. 11B repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 23, Sch. 22; S.I. 2001/3538, art. 2(5)
Textual Amendments
F15S. 11C repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 23, Sch. 22; S.I. 2001/3538, art. 2(5)
Textual Amendments
F16S. 11D repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 23, Sch. 22; S.I. 2001/3538, art. 2(5)
(1)A credit union may hold, purchase or take on lease in its own name any land for the purpose of conducting its business thereon but, subject to subsection (3) below, for no other purpose, and may sell, exchange, mortgage or lease any such land, and erect, alter or pull down buildings on it.
(2)In the application of subsection (1) above to Scotland—
(a)for the word “exchange" there shall be substituted the word “ excamb" ”, and
(b)for the word “mortgage" there shall be substituted the words “ grant a heritable security over" ”.
(3)A credit union shall have power to hold any interest in land so far as is necessary for the purpose of making loans to its members on the security of an interest in land and of enforcing any such security.
F17(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F17(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)No person shall be bound to inquire as to the authority for any dealing with land by a credit union; and the receipt of a credit union shall be a discharge for all moneys arising from or in connection with any dealing with land by it.
Textual Amendments
F17S. 12(4)(5) repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 24, Sch. 22; S.I. 2001/3538, art. 2(5)
Textual Amendments
F18S. 13 omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(9)
F19(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F20(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F20(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)The dividend payable on any shares of a credit union shall not exceed a rate of 8 per cent. per annum or such other rate as may from time to time by specified by order made by the F21. . . Treasury.
F20(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F20(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F19S. 14(1)(7) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(10)
F20S. 14(2)(3)(5)(6) repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 25, Sch. 22; S.I. 2001/3538, art. 2(5)
F21Words in s. 14(4) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1)(2), Sch. 3 Pt. IV para. 278, Sch. 4 (with art. 13(3)); S.I. 2001/3538, art. 2(1)
Modifications etc. (not altering text)
C2S. 14(4): functions of the chief registrar transferred to the Treasury (1.12.2001) by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. I (with art. 5); S.I. 2001/3538, art. 2(1)