The Credit Unions (Increase in Limits of Shareholding, of Deposits by persons too young to be members and of Loans) Order 1989

Statutory Instruments

1989 No. 2423

INDUSTRIAL AND PROVIDENT SOCIETIES

The Credit Unions (Increase in Limits of Shareholding, of Deposits by persons too young to be members and of Loans) Order 1989

Made

20 December 1989

Laid before Parliament

20 December 1989

Coming into operation

1 February 1990

The Chief Registrar of Friendly Societies, with the consent of the Treasury, in exercise of the powers conferred upon him by sections 5(4), 9(4) and (5) and 11(7) of the Credit Unions Act 1979 (1), and of all other powers enabling him in that behalf, hereby makes the following Order:—

Citation and commencement

1.  This Order may be cited as the Credit Unions (Increase in Limits of Shareholding, of Deposits by persons too young to be members and of Loans) Order 1989, and shall come into operation on 1 February 1990.

Interpretation

2.  In this Order —

“the 1965 Act” means the Industrial and Provident Societies Act 1965 (2);

“the 1979 Act” means the Credit Unions Act 1979.

Increase in limit on shareholding

3.  In section 5(3) of the 1979 Act, for the sum “£2,000” (specifying the limit on the interest any one member may hold in the shares of a credit union registered under the 1965 Act) there shall be substituted the sum “£5,000”.

Increase in limit on deposits by persons too young to be members

4.  In section 9(1) of the 1979 Act, for the sum “£250” (specifying the maximum amount of the deposits which may be taken from a person who is under the age at which he may become a member of a credit union registered under the 1965 Act) there shall be substituted the sum of “£750”.

Increase in limit on loans

5.  In section 11(2) of the 1979 Act, for the sum “£2,000” (specifying the maximum amount on loan at any time to a member of a credit union registered under the 1965 Act in excess of his total paid-up shareholding in the credit union at that time) there shall be substituted the sum “£5,000”.

J M Bridgeman

Chief Registrar of Friendly Societies

20th December 1989

We consent to this Order

John Taylor

Kenneth Carlisle

Two of the Lords Commissioners of Her Majesty’s Treasury

20th December 1989

Explanatory Note

(This note is not part of the Order)

This Order increases the following limits imposed by the Credit Unions Act 1979 on credit unions registered under the Industrial and Provident Societies Act 1965:

(i) the limit on a member’s shareholding in the credit union from £2,000 to £5,000;

(ii) the limit on the deposits which the credit union may take from persons too young to be members from £250 to £750; and,

(iii) the limit on loans in excess of a member’s total paid-up shareholding in the credit union from £2,000 to £5,000.

(1)

1979 c. 34

(2)

1965 c. 12