The Credit Unions (Increase in Limits on Deposits by persons too young to be members and of Periods for the Repayment of Loans) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order raises two separate limits which are imposed by the Credit Unions Act 1979.

1.  The limit on the deposits which a credit union may take from persons too young to be members is increased from £750 to £5,000.

2.  The periods for which credit unions may make loans. Most credit unions have only been able to make unsecured loans for two years and secured loans for five years. These limits are now increased to three and seven years respectively. For those credit unions which held a certificate under section 11C of the Credit Unions Act 1979 the permitted loan periods for loans made by the credit union at a time when it has a general reserve which is not less than 10 per cent. of its total assets have been four years for unsecured loans and ten years for secured loans. These limits are now increased to five and twelve years respectively.