PART XIII

Offences and Civil Proceedings

171. —(1) If a credit union or any other person contravenes any provision of Part II , that credit union or other person shall be guilty of an offence.

(2) A credit union or other person who is guilty of an offence under subsection (1) or any other provision of this Act, other than an offence for which a different penalty is expressly provided, shall be liable—

(a) on summary conviction to a fine not exceeding £1,000 or to imprisonment for a term not exceeding three months or both; or

(b) on conviction on indictment to a fine not exceeding £5,000 or to imprisonment for a term not exceeding two years or both.

(3) If the contravention in respect of which a credit union or other person is convicted of an offence under any provision of this Act is continued after that conviction, that credit union or other person shall be guilty of a further offence for every day on which the contravention continues and for each such offence shall be liable on summary conviction to a fine not exceeding £250 or, on conviction on indictment, to a fine not exceeding £1,500.

(4) Summary proceedings for an offence under any provision of this Act may be instituted by the Registrar.

(5) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under any provision of this Act may be instituted within three years from the date of the offence.

172. —(1) Where an offence under this Act which is committed by a credit union is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer or member of the credit union, that officer or member (as well as the credit union) shall be guilty of an offence and liable to be proceeded against and punished as if guilty of the offence committed by the credit union.

(2) Where an offence under any provision of this Act which is committed by a body corporate, other than a credit union, is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any person who, when the offence was committed, was a director, manager, secretary or other similar officer of the body corporate or a person who was purporting to act in any such capacity, that person (as well as the body corporate) shall be guilty of an offence and liable to be proceeded against and punished as if guilty of the offence committed by the body corporate.

173. —(1) Any person who—

(a) obtains possession by false representation of any property of a credit union, or

(b) having any such property in his possession, withholds or misapplies it or wilfully applies any part of it to purposes which are not authorised by the rules of the credit union or which are not in accordance with this Act,

shall be guilty of an offence and may be ordered to deliver up that property or to repay all money improperly applied.

(2) A person guilty of an offence under subsection (1) shall be liable—

(a) on summary conviction to a fine not exceeding £1,500 or to imprisonment for a term not exceeding one year or both; or

(b) on conviction on indictment to a fine not exceeding £10,000 or to imprisonment for a term not exceeding five years or both.

174. —Any person who, with intent to falsify any document or record referred to in paragraphs (a) to (e) or to evade any of the provisions of this Act, wilfully makes, or orders or allows to be made, any entry or erasure in, or omission from, or amendment to—

(a) any balance sheet of a credit union, or

(b) any contribution or collecting book, passbook or statement, or

(c) any return or document required for the purposes of this Act, or

(d) any account or balance sheet which is available for inspection under this Act, or

(e) any other record whatsoever, whether produced by electronic or other means, which is used by a credit union in the conduct of its business,

shall be guilty of an offence.

175. —(1) Any person who, in purported compliance with any provision made by or under this Act—

(a) provides an answer or explanation, makes a statement or produces or delivers any return, certificate, balance sheet or other document which is false in a material particular and which he knows to be so false, or

(b) recklessly provides an answer or explanation, makes a statement or produces or delivers any return, report, certificate, balance sheet or other document which is false in a material particular,

shall be guilty of an offence.

(2) If the court by which a person is found guilty on indictment of an offence under subsection (1) is of the opinion that any act, omission or conduct which gave rise to that offence has—

(a) substantially contributed to a credit union being unable to pay its debts, or

(b) prevented or seriously impeded the orderly winding up of a credit union, or

(c) substantially facilitated the defrauding of creditors of a credit union or of any other person,

then, in place of the penalty provided by section 171 (2)(b), that person shall be liable on conviction on indictment to a fine not exceeding £10,000 or to imprisonment for a term not exceeding five years or both.

176. —Any cost or expenses ordered or directed by the Registrar to be paid by any person shall be recoverable by the Registrar from that person summarily as a civil debt.

177. —(1) Subject to subsection (2), any provision (whether contained in the rules of a credit union or in any contract with a credit union or otherwise) for exempting an officer or voluntary assistant of a credit union from, or indemnifying him against, any liability which, by virtue of any rule of law, would otherwise attach to him in respect of any negligence, breach of duty or breach of trust of which he may be guilty in relation to the credit union shall be void.

(2) A credit union may indemnify an officer or voluntary assistant against any liability incurred by him in defending proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted, or in connection with an application under section 178 in which relief is granted.

178. —(1) Where, in any proceedings for negligence, default, breach of duty or breach of trust against an officer or voluntary assistant of a credit union, it appears to the court hearing the case—

(a) that the officer or voluntary assistant is or may be liable in respect of the negligence, default or breach in question but that he acted honestly and reasonably, and

(b) that, having regard to all the circumstances of the case (including those connected with his appointment), he ought fairly to be excused for the negligence, default or breach,

the court may relieve him (either wholly or partly) from his liability on such terms as the court may think fit.

(2) Where an officer or voluntary assistant of a credit union who has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust, applies to the Court for relief, the Court shall have the same power to relieve him as it would have under this section if it were a court before which proceedings against him had been brought for the negligence, default or breach.

(3) Where any case to which subsection (1) applies is being tried by a judge with a jury, the judge, after hearing the evidence, may, if he is satisfied that the defendant ought under that subsection to be relieved either in whole or in part from the liability sought to be enforced against him, withdraw the case in whole or in part from the jury and direct judgment to be entered for the defendant on such terms as to costs or otherwise as the judge may think proper.

179. —(1) Whenever a person (in this section referred to as a “judgment creditor”) obtains in any court a judgment, order or decree against a credit union for the payment of a sum of money due to the judgment creditor by the credit union, the registrar or clerk of the court concerned shall notify the Registrar as soon as may be of the judgment, order or decree and of its terms and of any appeal against the judgment, order or decree and of the result thereof.

(2) Subject to subsection (3) if, within the period of 21 days or such further period as the court concerned may allow, beginning on the date of the judgment, order or decree, the credit union does not pay all moneys due (or in the case of costs, at the option of the credit union, give security therefor in lieu of payment) or satisfy all claims under the judgment, order or decree, the credit union shall be deemed to be unable to meet its obligations to its creditors and, accordingly, for the purposes of section 133 , to be unable to pay sums due and payable to its creditors.

(3) If an appeal is instituted in any court against the judgment, order or decree, that court or the court by which the judgment, order or decree was made may by order postpone the application of subsection (2) for such period and, subject to subsection (4), on such terms as the court concerned may fix and specify in the order.

(4) If a court makes an order under subsection (3), it may require the credit union to which the order relates either, as that court thinks fit, to lodge in court an amount equal to the amount of all moneys due under the judgment, order or decree (or such lesser amount as the court may direct) or to give such security as the court may determine for the payment to the judgment creditor of all such moneys, together with, in either case, such further sum or security for the costs of the appeal as the court shall consider just.

(5) An order under subsection (3) may be varied or revoked by the court that made it or before which an appeal in relation to it is brought.