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Bonding where an approved body has a reserve fund or insurance.
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23.—(1) This section relates to a bond entered into by an authorised institution under which the institution pays to an approved body of which the package provider is a member such sum as may reasonably be expected—
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(a) to enable all moneys paid over by consumers under or in contemplation of contracts for packages which have not been fully performed to be repaid,
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(b) to enable consumers to be repatriated, where appropriate, and
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(c) to defray any reasonable expenses necessarily incurred by the approved body,
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in the event of the insolvency of the package provider.
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(2) A body may not be approved for the purposes of this section unless:
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(a) it has a reserve fund or insurance cover with an institution authorised in respect of such business in a Member State of an amount in each case which is designed in the event of the insolvency of a member to enable all monies paid over to that member of the body by consumers under or in contemplation of contracts for packages which have not been fully performed to be repaid to those consumers and to provide for the repatriation, where appropriate, of consumers; and
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(b) where it has a reserve fund it agrees that the fund will be held by persons and in a manner approved by the Minister.
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(3) The Minister may by regulations provide that the bond may be for such minimum sum and valid for such maximum period as may be specified in the regulations.
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(4) (a) In this section “approved body” means a body which is for the time being approved by the Minister (in consultation with the Minister for Tourism and Trade where arrangements cover a package which is to take place exclusively within the State) for the purposes of this section and no such approval shall be given unless the conditions mentioned in subsection (2) are satisfied in relation to it.
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(b) The Minister may by regulations specify additional conditions that shall be complied with and other appropriate matters relating to the grant of approval to a body which applies to the Minister to be an approved body.
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(5) Before a bond is given pursuant to subsection (1), the package provider shall inform an approved body of which the provider is a member of the minimum sum proposed for the purposes of that subsection and it shall be the duty of the approved body to consider whether such sum is sufficient for the purpose mentioned in that subsection and, if it does not consider that this is the case, it shall be the duty of the approved body to inform the package provider of the sum which, in the opinion of the approved body, is sufficient for that purpose.
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(6) It shall be the duty of an approved body to ensure that there are adequate arrangements for the repatriation of the consumer in the event of the insolvency of a package provider who is a member of that approved body.
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(7) In this section “authorised institution” means a person authorised under the law of a Member State to carry on the business of entering into bonds of the kind required by this section.
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