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CREDIT UNION ACT, 1997
Supplementary Provisions in Relation to Regulatory Directions
1. The Registrar may not revoke a regulatory direction if an order under paragraph 3 has been made by the Court in respect of the direction.
2. A credit union to which a regulatory direction has been given may apply to the Court for, and the Court may grant, an order setting aside the direction.
3. The Registrar may apply to the Court for, and the Court may grant, an order confirming a regulatory direction or confirming it and, subject to paragraph 5, extending the period of its operation for such time as the Court, having regard to all the circumstances, may consider appropriate.
4. In addition to or in lieu of an order under paragraph 3, the Court may make such other order in the case as may appear to it to be necessary, including an order directing any person who holds money or other assets for or on behalf of the credit union, or a person specified in the order, not to dispose of any of those assets except on such conditions and in such circumstances as are so specified.
5. A regulatory direction which has been confirmed by the Court shall terminate when whichever of the following first occurs—
(a) the end of the period of operation specified by the Court;
(b) the making by the Court of an order for termination on the application of the Registrar;
(c) the making of a winding up order in respect of the credit union;
(d) the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make the order.
6. If the Registrar forms the opinion that a credit union to which a regulatory direction was given is able to meet its obligations to its members and creditors but the circumstances which gave rise to the direction are unlikely to be rectified, the Registrar shall forthwith apply to the Court for, and the Court may grant, an order directing the credit union—
(a) to prepare, in consultation with the Registrar, a scheme for the orderly termination of its business and the discharge of its liabilities to its members and creditors under the supervision of the Registrar; and
(b) to submit that scheme to the Court within two months for approval.
7. The Court shall not approve the terms of a scheme under paragraph 6 without hearing the Registrar and, in the event of dispute about the terms of the scheme, the Registrar or the credit union may apply to the Court to adjudicate on the matter.
8. If a credit union fails to comply with an order of the Court under paragraph 6 or fails to adhere to a scheme approved by the Court, the Registrar may apply to the Court for, and the Court may make, such further order as it considers appropriate, including an order for the winding up of the credit union on the ground that it is just and equitable that it be wound up.
9. The Court may by order revoke or amend an order (except an order under paragraph 5) made by it under this Schedule.
10. Where any regulatory directions are in force with respect to a credit union—
(a) the credit union shall take all necessary steps to secure that its assets, wherever held, are not depleted without the prior authorisation of the Registrar; and
(b) the Registrar may apply to the Court for an order directing a bank or any institution exempt under section 7 of the Central Bank Act, 1971 , which holds an account of the credit union to suspend the making of payments from the account for such time as the Court may, having regard to all the circumstances, consider appropriate; and
(c) the credit union shall make reasonable arrangements for using its funds to meet applications (duly made in accordance with its rules) by members for repayment of moneys subscribed or deposited by them; and
(d) if it appears to the Registrar that the credit union has been applying an undue proportion of its funds in making loans, in preference to making such arrangements as are referred to in paragraph (c), the Registrar, after giving notice to the credit union and affording it an opportunity of making representations, may apply to the Court for the winding up of the credit union.