Credit Unions Act 1979

Powers of registrarE+W+S

17 Power to require information.E+W+S

(1)In relation to a credit union, the powers of the [F1Authority] under subsection (1) of section 48 of the 1965 Act to require the production of books, accounts and other documents and the furnishing of information in connection with the exercise of certain of [F2its] powers under that Act [F3shall apply also in connection with the exercise of its functions under this Act,] and subsections (2) and (3) of section 48 of the 1965 Act (penalties and defraying expenses) shall apply accordingly;

(2)Without prejudice to section 39 of the 1965 Act (duty to furnish annual returns), the [F1Authority] may from time to time by notice in writing served on a credit union require it to furnish, within such period as may be specified in the notice, a financial statement or periodic financial statements in such form and containing such information as may be so specified.

(3)If a credit union fails without reasonable excuse to comply with a notice under subsection (2) above it shall be guilty of an offence and liable on summary conviction to a fine not exceeding [F4level 3 on the standard scale].

19 Power to suspend operations of credit union.E+W+S

(1)If, with respect to any credit union, the [F8Authority] considers it expedient to do so having regard to the interests of all the members of the credit union or in the interests of potential members of the credit union, [F9it may] give a direction prohibiting the credit union to such extent and subject to such conditions as may be specified in the direction from carrying on any one or more of the following activities, that is to say,—

(a)borrowing money;

(b)accepting a payment representing the whole or any part of an amount due by way of subscription for a share in the credit union other than a payment which fell due before the making of the order;

(c)lending money; and

(d)repaying share capital;

and Schedule 2 to this Act shall have effect in relation to the giving of a direction under this section.

(2)Nothing in any direction given under this section shall make it unlawful for a credit union to borrow from an authorised bank if the credit union has obtained the consent in writing of the [F8Authority].

(3)For the purposes of this section and of any direction given under it, if any indebtedness of a member to a credit union is set off to any extent against the share capital credited to him, then, to that extent, the setting off shall be treated as a repayment of that share capital.

(4)A direction given under this section may be revoked by the [F8Authority]. . . and notice of the revocation shall be published in the same manner as notice of the giving of the direction.

(5)Where a direction under this section is revoked, any obligation of any person to make a payment to the credit union which fell due at a time when the credit was prohibited by the direction from accepting it shall be suspended for a period equal to the period for which the prohibition was in force.

(6)Subject to subsection (5) above, any obligation to make to a credit union a payment which the credit union is prohibited from accepting by a direction under this section shall be wholly rescinded.

(7)If a credit union contravenes a direction under this section it shall be guilty of an offence and liable on conviction on indictment or on summary conviction to a fine which on summary conviction shall not exceed the statutory maximum.

20 Cancellation or suspension of registration and petition for winding up.E+W+S

(1)In subsection (1) of section 16 of the 1965 Act (grounds for cancellation of registration) as it applies to credit unions—

(a)in paragraph (c)(i) the reference to violation of any of the provisions of the 1965 Act shall be construed as including a reference to violation of any of the provisions of this Act; and

(b)in paragraph (c)(ii) the reference to the fact that neither of the conditions in section 1(2) of that Act is fulfilled shall be construed as a reference to the fact that there is no longer a common bond between the members of a credit union;

and section 17(1) of that Act (suspension of registration on grounds which would justify cancellation) and section 18 of that Act (appeals) shall apply accordingly.

(2)A petition for the winding up of a credit union may be presented to the court by the [F10Authority] if it appears to [F11the Authority] that—

(a)the credit union is unable to pay sums due and payable to its members, or is able to pay such sums only by obtaining further subscriptions for shares or by defaulting in its obligations to creditors; or

(b)there has been, in relation to that credit union, a failure to comply with any provision of, or of any direction given under, this Act or the Industrial and Provident Societies Acts 1965 to 1978; or

(c)there is no longer a common bond between the members of the credit union;

or in any other case where it appears to [F11the Authority] that the winding up of the credit union is in the public interest or is just and equitable having regard to the interests of all the members of the credit union.