Credit Union (Amendment) Act 1971 (NSW)

CREDIT UNION (AMENDMENT) ACT.

ANNO VICESIMO

ELIZABETHS II REGIN^E

Act No. 23, 1971.

An Act to make further provision with respect to the granting of loans by a credit union; to remove in certain circumstances the limitation on borrowing imposed on certain credit unions; to permit certain liens and charges to be included in the liquid funds of a credit union; to restrain certain persons from acting as directors of a credit union; for these and other purposes to amend the Credit Union Act, 1969; and for purposes connected therewith. [Assented to, 27th Septem­ ber, 1971.] B E

[ > E it enacted by the Queen's Most Excellent Majesty, by
and with the advice and consent of the Legislative
Council and Legislative Assembly of New South Wales in

Parliament assembled, and by the authority of the same, as

follows: —

1. This Act may be cited as the "Credit Union

(Amendment) Act, 1971".

2. The Credit Union Act, 1969, is amended—

(a)	(i)	by omitting subsection three of section six and by inserting in lieu thereof the following subsection :—
(3) Application for a loan from a credit union shall be in or to the effect of a form approved by that credit union or where a form is prescribed in or to the effect of the prescribed form.
(ii)	by inserting next after subsection four of the same section the following new subsection :—
(4A) (a) Where the rules of a credit union so provide, the Board may, by instrument in writing, delegate any or all of its powers under subsection four of this section to such person
or body of persons as may be prescribed by
the regulations.
(b) The exercise of any delegation under this subsection shall be subject to and in accordance with such limits and conditions as may be specified in the instrument of delega­ tion and such conditions as may be prescribed by the regulations.

(c)

(c) Notwithstanding any delegation made under this section the Board may con­ tinue to exercise or perform all or any of the powers so delegated.

(d) Any act or thing done or suffered by the delegate when acting in the exercise of any such delegation, and within the terms of the delegation, shall be as effective as if the act or thing had been done or suffered by the Board.

(iii)   by inserting in paragraph (a) of subsection five of the same section after the word "mem­ ber" the words ", where the loan is approved in an amount or upon terms and conditions otherwise than as sought by the member,";

(iv)   by omitting from subsection seven of the same section the words "In this subsection 'pre­ scribed security' means a mortgage and includes, where some other form of security is prescribed by the regulations for the purposes of this subsection, the form of security so prescribed.";

(v)   by omitting from paragraph (a) of the same subsection the words "unless the rules applic­ able in respect thereof require repayment of the indebtedness of a member to be secured

by prescribed security" and by inserting in

lieu thereof the words "where the rules applic­ able in respect thereof do not require repay­ ment of the indebtedness of a member or the part of such indebtedness required by the rules of the credit union to be secured in the manner referred to in subsection (7A) of this section";

(vi)

(vi)   by omitting from paragraph (b) of the same subsection the words "to be secured by pre­ scribed security" and by inserting in lieu thereof the words "or the part of such indebt­ edness required by the rules of the credit union to be secured in the manner referred to in subsection (7A) of this section";

(vii)   by omitting from paragraph (c) of the same subsection the words "may, where the rules applicable in respect thereof require repay­ ment of the indebtedness of a member to be secured by prescribed security" and by insert­ ing in lieu thereof the words "except as provided by paragraph (d) of this subsection shall, where the rules applicable in respect thereof require repayment of the indebtedness of a member or the part of such indebtedness required by the rules of the credit union to be secured in the manner referred to in subsection

(7A) of this section";

(viii)   by omitting from paragraph (d) of the same subsection the words "may, where the terms and conditions applicable in respect thereof are specified in special rules, be an amount not exceeding four thousand dollars" and by inserting in lieu thereof the following words:—

may, where—

(i) the rules applicable in respect the indebtedness of a member or the part of such indebted­ ness required by the rules of the credit union to be secured in the manner referred to in subsection (7A) of this section; and thereof require repayment of

(ii)

(ii)   the terms and conditions in respect thereof are specified in special rules,

be an amount not exceeding five thousand
dollars;

(ix)   by inserting next after the same subsection the following new subsection :—

(7A) In this subsection "prescribed

security" means a mortgage and includes, where some other form of security is prescribed by the regulations for the purposes of this subsection, the form of security so prescribed.

The rules of a credit union may require

that—

(a) the indebtedness of a member; or

(b) such part of the indebtedness of a member as exceeds—

(i)   the amount of the member's paid-up share capital in the credit union;

(ii)  the amount of the member's deposits with the credit union; and

(iii) an amount of one thousand amount is prescribed by the regulations for the purposes of paragraph (a) of subsection seven of this section, the amount so prescribed, dollars or where some other

be secured by prescribed security.

(b)

(b)	by inserting in the definition of "liquid funds" in subsection one of section seven after the word "charge" the words "other than a lien or charge given by a credit union to an association of which it is a member";
(c)	by omitting subsection five of section twelve and by inserting in lieu thereof the following subsection :—

(5) This subsection applies to and in respect

of—

(a) a credit union being—

(i)   a credit union that, immediately before the commencement of this Act, was registered under the Co­ operation Acts and was first so registered not earlier than four years before the commencement of the Credit Union (Amendment) Act, 1971; or

(ii)   a credit union registered under this Act (section twenty-two excepted) before or after the commencement of the Credit Union (Amendment) Act, 1971,

where such a credit union requires to raise a loan of an amount in excess of that pre­ scribed by subsection four of this section for the purpose of its development following its registration;

(b) any credit union whose membership has not, in the opinion of the registrar, reached its potential, where such a credit union requires to raise a loan of an amount in excess of the amount prescribed by sub­ section four of this section for the purpose of increasing its membership;

(c)

(c)	any credit union that requires to raise a loan of an amount in excess of the amount prescribed by subsection four of this section following an extension of the class or classes of persons eligible to receive a loan from the credit union; or
(d)	any credit union that requires to raise a loan of an amount in excess of the amount prescribed by subsection four of this section for the acquisition of real property necessary for the carrying out of any of the objects of the credit union.

Where the registrar so approves a credit union to which this subsection applies may, in accordance with such limits, terms and conditions as the regis­ trar may impose, raise a loan of an amount in excess of that prescribed by subsection four of this section.

The registrar shall not grant such an approval in respect of a credit union to which paragraph (a) of this subsection applies after the expiration of the period of four years next succeeding the day on which the credit union was first registered.

(d)

by omitting from section sixteen the words "twenty- one years" and by inserting in lieu thereof the words "eighteen years";

(e) by omitting from subsection one of section twenty

thereof the words "persons of or above the age of
eighteen years";

the words "adult persons" and by inserting in lieu (f) (i) by omitting from subsection one of section forty-one the words "twenty-one years" and by inserting in lieu thereof the words "eighteen years";

(ii)

(ii)   by omitting from subsection two of the same section the words "or to be one of the persons by whom a credit union may be formed";

(g) by inserting next after section fifty-five the following new section :—

55A. (1) A person who, being an undischarged bankrupt acts as a director of, or directly or indirectly takes part in or is concerned in the management of a credit union, or of an association, except with the leave of the Supreme Court shall be guilty of an offence against this Act and, upon summary conviction, liable to a penalty of one thousand dollars or to imprisonment for a period of six months or to both such penalty and imprisonment.

(2) Where a person is convicted whether

within or without the State—

(a) on indictment of any offence in connection with the promotion, formation or manage­ ment of a credit union, an association or a company or other corporation;

(b)	of an offence involving fraud or dishonesty punishable on conviction with imprisonment for three months or more;
(c)	of any offence and sentenced to any period of imprisonment without the option of a fine; or

(d)

(d) of an offence under section one hundred and twenty-four or under section three hundred and three or under any other provision of the Companies Act, 1961, that may be prescribed,

and that person, within a period of five years after his conviction, or if he is sentenced to imprison­ ment, after his release from prison, without the leave of the Supreme Court is a director or pro­ moter of or is in any way whether directly or indirectly concerned or takes part in the manage­ ment of a credit union or of an association he shall be guilty of an offence against this Act and, upon summary conviction, liable to a penalty of one thousand dollars or to imprisonment for a period of six months or to both such penalty and imprisonment.

(3) A person intending to apply for the leave of the Court under this section shall give to the Minister not less than ten days' notice of his intention so to apply.

(4) On the hearing of any application under this section the Minister may be represented at the hearing of and may oppose the granting of the application.

An approval to raise a loan in excess of the amount prescribed in subsection four of section twelve of the Credit

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Union Act, 1969, granted by the registrar under the provisions	of subsection five of section twelve of that Act as in force
immediately prior to the commencement of paragraph (c) of section two of this Act (hereinafter referred to as the repealed provisions) shall continue in force until the expiration of the period referred to in the repealed provisions as if the amend­ ments made by paragraph (c) of section two of this Act had not been made.

The amendments made by subparagraphs (i) and (ii) of paragraph (a) of section two of this Act shall commence upon a day to be appointed by the Governor and notified by proclamation published in the Gazette.

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