Package Holidays and Travel Trade Act, 1995
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Bonding where an approved body does not have a reserve fund or insurance. |
24.—(1) This section relates to a bond entered into by an authorised institution under which the institution agrees, in the event of the insolvency of the package provider, to pay to an approved body which does not have a reserve fund or insurance as set out in section 23 (2) of which the package provider is a member such sum as may reasonably be expected to— | |
(a) enable all moneys paid over by consumers under or in contemplation of contracts for packages which have not been fully performed to be repaid, | ||
(b) enable consumers to be repatriated, where appropriate, and | ||
(c) defray any expenses necessarily incurred by the approved body. | ||
(2) 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. | ||
(3) 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. | ||
(4) 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. | ||
(5) The Minister may by regulations specify 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. | ||
(6) 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 purpose of this section; | ||
“authorised institution” has the meaning given to that expression by section 23 (7). |