Industrial and Provident Societies (Amendment) Act, 1978
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Registrar's power to direct suspension of acceptance of deposits, loans or shares and of payments. |
26.—(1) Where the Registrar is of the opinion that a credit union is unable, or is likely to become unable, to meet its obligations to creditors, or that it is expedient in the interest of the orderly and proper regulation of the business of a credit union, he may direct the credit union in writing to suspend, for such period not exceeding two months as shall be specified in the direction, the acceptance of any subscriptions for shares or of any deposits or loans not authorised by him or the making of payments not so authorised or both the acceptance of such subscriptions, deposits or loans and the making of such payments. | |
(2) A direction under this section shall have effect in accordance with its terms but, notwithstanding such a direction, a credit union may borrow money from a bank or from an officer of the credit union if the Registrar consents in writing to the borrowing. | ||
(3) The Registrar may apply to the Court for an order confirming a direction under this section or for an order confirming and extending the period of operation of such a direction for such time as the Court may, having regard to all the circumstances, consider appropriate, and the Court may grant such an order. | ||
(4) The Court may, in addition to or in lieu of making an order under subsection (3), make such other order in relation to the matter as may appear to it to be necessary. | ||
(5) Where an order is made under subsection (3) confirming and extending the period of operation of a direction under this section, the credit union shall, for the purpose of section 33 of the Credit Union Act, 1966 , be deemed to be unable to pay its debts. | ||
(6) The whole or part of proceedings under this section or of an appeal in relation thereto may be heard in chambers. | ||
(7) A credit union to which a direction is given under this section may apply to the Court for an order setting aside the direction and the Court may grant such an order. | ||
(8) A direction under this section may be amended or revoked at any time by the Registrar. | ||
(9) The Registrar may, if he thinks fit, cause to be published in Iris Oifigiúil, or in such other way as appears to him expedient for informing the public, notice of a direction under this section and of its amendment or revocation. |