Citation and commencement

1. This Order may be cited as the Industrial and Provident Societies (Increase in Deposit-taking Limits) Order 1981, and shall come into operation on 13th April 1981.

Interpretation

2. In this Order "the Act" means the Industrial and Provident Societies Act 1965.

Increase in deposit-taking limits

3. In section 7(3) of the Act(1) for the words "ten pounds" (denoting the limit of deposits which can be taken at any one time) there shall be substituted the words "four hundred pounds" and for the words "two hundred and fifty pounds" (denoting the maximum amount which can be taken from any one depositor) there shall be substituted the words "four hundred pounds".

Powers of society's committee

4.-(1) Where immediately before the coming into operation of this Order the registered rules of a society registered under the Act permitted depositors under the said section 7(3) to deposit a maximum of two hundred and fifty pounds then laid down thereby, the committee may, by a resolution recorded in writing, resolve that depositors may be permitted to hold such greater amount not exceeding four hundred pounds as may be specified in the resolution, and the registered rules shall have effect accordingly.

(2) Where immediately before the coming into operation of this Order the registered rules of a society registered under the Act permitted depositors under the said section 7(3) to deposit a maximum of not more than ten pounds in any one payment, the committee may, by a resolution recorded in writing, resolve that depositors may be permitted to deposit a maximum of not more than four hundred pounds in any one payment as may be specified in the resolution, and the registered rules shall have effect accordingly.

(3) The powers conferred on the committees of registered societies by paragraphs (1) and (2) above shall not be exercisable after the expiration of the period of eighteen months beginning with the date on which this Order comes into operation; and if any amendment of the rules of a society is made after the coming into operation of this Order and before the expiration of the time allowed by this paragraph for exercising that power the power shall cease to be exercisable by the committee of that society on the date on which the amendment is registered under section 10 of the Act.

(4) The committee of a registered society shall not have power to vary or revoke a resolution under paragraphs (1) or (2) above.

(5) Where the committee of a registered society have exercised the power to pass a resolution under paragraphs (1) or (2) above and an amendment of the society's rules is subsequently registered under section 10 of the Act the registered rules of the society shall thereupon have effect as if the resolution had not been passed, so, however, that this paragraph shall not affect any interest in the funds of the society held by a depositor immediately before the date on which the amendment is registered.

EXPLANATORY NOTE

This Order increases the amounts of deposits which may be taken by a society registered under the Industrial and Provident Societies Act 1965 without thereby carrying on the business of banking. The increases are from £10 to £400 in any one payment and from £250 to £400 for any one depositor. The Order further empowers the committee of a society, subject to certain conditions, to give effect to the increases by resolutions recorded in writing.