Co-operative and Community Benefit Societies Act 2014

Banking

67 Registered society with withdrawable share capital not to carry on banking etc

(1) A registered society which has any withdrawable share capital must not carry on the business of banking.

(2) For this purpose the taking of deposits of not more than £400 in any one payment and not more than £400 for any one depositor, payable on not less than 2 clear days’ notice, is not to be treated as carrying on the business of banking.

(3) A registered society which takes deposits must not make any payment of withdrawable capital while any payment due on account of any deposit is unsatisfied.

(4) A registered society which contravenes this section commits an offence and is liable on summary conviction to a fine not exceeding level 1 on the standard scale.

68 Power to amend figures in section 67(2)

(1) The Treasury may by order substitute for the sums for the time being specified in section 67(2) such other sums (being not less than the minimum sums) as they consider appropriate.

(2) The “minimum sums” are—

(a) in the case of the first sum specified in section 67(2) (the limit of deposits that can be taken at any one time), £10;

(b) in the case of the second sum specified there (the maximum amount that can be taken from any one depositor), £250.

(3) The order may—

(a) make any such provision in connection with altering the limits for the time being applicable under section 67(2) as was made by section 1 of the Industrial and Provident Societies Act 1978 in connection with the alteration made by section 1(1) of that Act, and

(b) contain such other transitional, consequential, incidental or supplementary provisions as appear to the Treasury to be necessary or appropriate in that connection.

69 Society carrying on banking must display statement

(1) A registered society which carries on the business of banking must display a statement complying with section 70 in a conspicuous position in—

(a) its registered office, and

(b) every other office or place of business belonging to the society where the business of banking is carried on.

(2) Section 67(2) (taking of deposits below limits specified there not to be treated as carrying on the business of banking) applies for the purposes of this section.

(3) A registered society which fails to comply with this section commits an offence and is liable on summary conviction to a fine not exceeding level 1 on the standard scale.

70 Section 69: form of statement

(1) The statement required by section 69 is to be in the following form (or as near to it as is possible in the circumstances)—

1

Capital of the society—

(a)

nominal amount of each share;

(b)

number of shares issued;

(c)

amount paid up on shares.

2

Liabilities of the society on the relevant date—

(a)

on judgments;

(b)

on specialty;

(c)

on notes or bills;

(d)

on simple contract;

(e)

on estimated liabilities.

3

Assets of the society on the relevant date—

(a)

government securities (stating them);

(b)

bills of exchange and promissory notes;

(c)

cash at the bankers;

(d)

other securities.

(2) “The relevant date” is—

(a) 1 January (for the period beginning with the first Monday in the following February and ending immediately before the first Monday in the following August);

(b) 1 July (for the period beginning with the first Monday in the following August and ending immediately before the first Monday in the following February).