Credit Union Act, 1997

In short

This law, the Credit Union Act, 1997, establishes the legal framework for credit unions, covering their registration, operation, management, and oversight. It aims to regulate how credit unions function, from their membership rules to their financial activities and eventual dissolution.

What it regulates

• The conditions and process for registering as a credit union.
• The rules governing membership, shares, deposits, borrowing, and lending activities of credit unions.
• The management structure, including the board of directors and supervisory committee, and their respective functions.
• The control and supervision of credit unions by the Registrar, including inspections, regulatory directions, and powers to intervene.

Who it concerns

• Credit unions operating or seeking to operate.
• Members, directors, officers, and auditors of credit unions.

Key points

• Credit unions must meet specific conditions for registration and adhere to registered rules.
• They can raise funds through shares and deposits, and make loans to members, subject to regulations.
• A board of directors and a supervisory committee are required for management and oversight.
• The Registrar has significant powers to regulate, inspect, and intervene in the operations of credit unions, including the ability to give regulatory directions or cancel registration.