INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969

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INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969 - SECT 87

Investments by credit unions.

87.(1) A credit union may, subject to any regulations made by the registrar
with the consent of the Ministry, invest any part of the surplus funds of the
credit union in securities (other than the securities specified in Part III of
Schedule 1 to the Trustee Investments Act 1961) authorised by law for the
investment of trust funds or in any other securities (including securities
specified in the said Part III) authorised by any such regulations as
aforesaid.

(2) In so far as any surplus funds of a credit union

(a)are not invested in accordance with subsection (1); and

(b)are not kept in cash in the custody of officers of the credit union;

(3) Where a bank ceases to be authorised as mentioned in subsection (2) and
any funds of a credit union on loan to that bank thereupon cease to be kept in
a manner permitted by that subsection, the credit union shall take all
practical steps to call in and realise the loan within the period of three
months from the time when the bank ceased to be so authorised or, if that is
not possible, as soon after the end of that period as possible.

(4) Nothing in this section shall prevent a credit union making a temporary
loan to another credit union.

(5) If a credit union contravenes the provisions of 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 #50; and
every officer of the credit union who is in default shall be guilty of an
offence and liable

(a)on conviction on indictment, to a fine or to imprisonment for a term not
exceeding two years, or to both; or

(b)on summary conviction, to a fine not exceeding #50 or to imprisonment for a
term not exceeding three months, or to both.

(6) Where a bank ceases to be authorised as mentioned in subsection (2) and
any funds of a credit union on loan to the bank thereupon cease to be kept in
a manner permitted by subsection (2), the credit union shall not on that
account be guilty of an offence under this section but without prejudice to
the operation of subsection (3) or subsection (2) in relation to subsection
(3).

[(7) In this section "bank" means

(a)a recognised bank or municipal bank within the meaning of the Banking Act
1979;

(b)a trustee savings bank within the meaning of section 3 of the Trustee
Savings Banks Act 1969; and

(c)the National Savings Bank.]

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Northern Irish Legislation

INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969 - SECT 87