Credit Union Act, 1997


43.—(1) Subject to any provision made by regulations, a credit union may invest any of its funds which are surplus to its operating requirements and are not immediately required for the purposes of the credit union—

(a) in securities in which trustees are for the time being authorised by law to invest;

(b) in the shares of or deposits with or loans to a credit union;

(c) in the shares of a society registered under the Industrial and Provident Societies Acts, 1893 to 1978; or

(d) in such other manner as may be prescribed, being a manner appearing to the Minister to be beneficial to the credit union.

(2) In so far as any such funds of a credit union as are referred to in subsection (1) are not either—

(a) invested in accordance with subsection (1), or

(b) kept in cash in the custody of officers of the credit union,

those funds shall be kept by the credit union on current account with, or otherwise on loan to a credit institution.

(3) Where any funds of a credit union are on loan to an institution which ceases to be a credit institution, the credit union shall take all practicable steps to call in and realise the loan within the period of three months from the time when the institution so ceased or, if that is not possible, as soon after the end of that period as possible.

(4) Nothing in this section shall prevent one credit union from making a temporary loan to another.

(5) If, at the commencement of this section, a credit union holds any investments which were permitted before that commencement but do not fall within paragraphs (a) to (d) of subsection (1), those investments shall be disposed of—

(a) as soon as a disposal can be made without incurring a loss; and

(b) in any event not later than the second anniversary of that commencement or such later date as the Registrar may permit;

but, prior to such a disposal, the investments shall continue to be regarded as lawful.

(6) If, at the commencement of this section, a credit union holds any investments which were not permitted before that commencement but which fall within any of paragraphs (a) to (d) of subsection (1), these investments shall be regarded as having been validly made by virtue of this section.

(7) If a credit union knowingly contravenes any of the provisions of this section, it shall be guilty of an offence.