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INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969 - SECT 84

Power of credit unions to borrow money.

84.(1) Subject to its rules, a credit union may borrow money from any source
whatsoever but the amount so borrowed and not repaid shall not at any time
exceed in the aggregate one-half of the total paid up share capital.

(2) A temporary loan obtained by a credit union from its bankers in the
ordinary course of business shall be disregarded for the purposes of
subsection (1).

(3) A lender or other person dealing with a credit union shall not be obliged
to satisfy himself or to inquire whether the limit on borrowing by that
credit union imposed by subsection (1) has been or is being observed and any
debt incurred or security given by a credit union in excess of such limit
shall not be invalid or ineffectual solely by reason of any such excess except
in the case of a lender or a recipient of security who, at the time when the
debt was incurred or the security was given, had express notice that such
limit had been or was thereby exceeded.

(4) Where money borrowed by a credit union is not repaid on written demand on
the date on which repayment is due, that credit union shall not make any loans
or permit the withdrawal of any shares until the repayment is made.

(5) If a credit union borrows in excess of the limit imposed by subsection (1)
or makes loans or permits withdrawals in contravention of subsection (4), 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
#50.


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© 1969 Crown Copyright

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