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Raising of funds by shares and deposits.
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27.—(1) Subject to the following provisions of this Part and any provision of its rules, a credit union may raise funds to be used for its objects—
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(a) by the issue to its members of shares in the credit union (which may be withdrawable or non-withdrawable); and
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(b) by the acceptance of money on deposit from a member whose shares, at the time of the deposit, have a value of not less than £1,000.
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(2) Subject to any dispensation granted under subsection (3), the aggregate liabilities of a credit union in respect of deposits from members shall not at any time exceed 75 per cent. of its aggregate liabilities in respect of shares issued to members; and if a credit union accepts a deposit which would have the effect of causing the limit in this subsection to be exceeded (or to be further exceeded) the credit union shall be guilty of an offence.
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(3) If the Registrar considers it expedient to do so in the circumstances of a credit union, he may, on such terms as he thinks proper, grant to the credit union a dispensation from subsection (2).
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(4) Subject to subsection (5) and to any provision made by regulations, a member of a credit union—
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(a) shall not hold on deposit with the credit union more than £20,000; and
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(b) shall not have or claim an interest in shares in the credit union exceeding an amount which, when aggregated with the amount held by the member on deposit with the credit union, exceeds £50,000 or 1 per cent. of the total assets of the credit union, whichever is the greater.
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(5) The Minister may from time to time by order increase the financial (including percentage) limits applicable under the preceding provisions of this section.
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(6) Nothing in subsection (1)(b) shall render unlawful any deposit accepted before the commencement of this section; and nothing in paragraph (a) of subsection (4) shall render unlawful any deposit which is held by a member of a credit union immediately before that commencement and which exceeds the limit for the time being applicable under that paragraph.
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Shares and deposits
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