Credit Union Act, 1966

Registration of credit unions.

2.—(1) (a) Notwithstanding anything in the Industrial and Provident Societies Acts, 1893 to 1936, a society which may be registered under those Acts shall include a co-operative society which consists of persons each of whom has, in relation to all the other members of the society, not less than one of the common bonds set out in paragraph (b) of this subsection, and is formed for the following objects—

(i) the promotion of thrift among its members by the accumulation of their savings,

(ii) the creation of sources of credit for the benefit of its members at a fair and reasonable rate of interest, and

(iii) the use and control of members' savings for their mutual benefit.

(b) The common bonds referred to in paragraph (a) of this subsection are—

(i) the common bond of association (other than for the purpose of forming or conducting a credit union);

(ii) the common bond of occupation;

(iii) the common bond of residence or employment within a particular locality;

(iv) the common bond of employment by a common employer;

(v) the common bond of membership of a bona fide organisation.

(c) The registrar may, at his discretion, register as a credit union a society the rules of which require a common bond or common bonds among its members of a nature not provided for in paragraph (b) of this subsection.

(2) A society registered by virtue of this Act shall be known, and is in this Act referred to, as a credit union.

(3) It shall be the duty of the registrar, on being satisfied that the appropriate statutory provisions have been complied with, to register a society to which subsection (1) of this section applies by issuing to it an acknowledgment of registration, which shall be conclusive evidence that the society is duly registered, unless it is proved that registration has been suspended or cancelled.

(4) Where the registrar refuses to register a society as a credit union or to register any rules or amendments of rules, an appeal shall lie from such decision to the District Court at a sitting thereof for the District Court District in which the society has or proposes to have its registered office and the decision of that court shall be final, save that any question of law arising in such appeal may be referred to the High Court for determination and an appeal shall lie by leave of the High Court to the Supreme Court from every such determination.

(5) If the registrar's refusal is overruled on appeal, an acknowledgment of registration shall thereupon be issued by the registrar.

(6) Notice of an appeal to the District Court under subsection (4) of this section shall be in writing and shall set out the grounds on which the appeal is based.