Credit Union Act, 1997

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Assets and liabilities ratios and structures.

85.—(1) A credit union shall at all times keep a proportion of its total assets in liquid form (hereinafter referred to as “liquid assets”), being such a proportion and having such a composition as to enable the credit union to meet its liabilities as they arise.

(2) For the purpose of complying with subsection (1), a credit union shall have regard to the range and scale of its business and the composition of its assets and liabilities; but nothing in this Act shall be taken to prevent a credit union keeping liquid assets in addition to those required for complying with subsection (1).

(3) The Registrar may from time to time by notice in writing require a credit union to maintain, between its assets and its liabilities—

(a) a ratio specified in the requirement,

(b) a ratio which does not exceed a ratio so specified, or

(c) a ratio which is not less than a ratio so specified,

and a ratio may be so specified as a percentage of the assets or liabilities concerned.

(4) A requirement of the Registrar under subsection (3) may be expressed to apply in one or more of the following ways—

(a) in relation to all credit unions or to credit unions of a category or categories specified in the requirement;

(b) in relation to the total assets or total liabilities of the credit unions concerned or in relation to such assets or kinds of assets or such liabilities or kinds of liabilities as may be specified in the requirement;

(c) in relation to such time or times or during such period or periods as may be so specified.

(5) The Registrar may, from time to time, by notice in writing specify, as respects a credit union, requirements as to the composition of its assets or, subject to subsections (2) and (3) of section 27 , the composition of its liabilities.

(6) In this section—

(a) “liabilities” include such contingent liabilities as the Registrar may from time to time specify by notice in writing for the purposes of this section; and

(b) “liquid assets” mean such assets as the Registrar may from time to time specify by notice in writing for the purposes of this section;

and, until the Registrar specifies assets as mentioned in paragraph (b), “liquid assets” include assets held in a form provided for by section 43 .

(7) Where, under the preceding provisions of this section, the Registrar by notice in writing imposes a requirement or specifies any matter, and the requirement is to apply or the matter is specified otherwise than in relation to a particular credit union, the power to give the notice shall be exercisable by rules.