§ '(1) Subject to sections 8 and 9 of this Act, a credit union shall not accept a deposit from any person except by way of subscription for its shares.
§ (2) In this section and section 8 of this Act a"deposit" means a sum of money paid on terms—
- (a) under which it will be repaid, with or without interest or at a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the credit union; and
- (b) which are not referable to the provision of property or services or to the giving of security.
§ (3) For the purposes of subsection (2) (b) above, money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if,—
- (a) it is paid by way of advance or part- payment for the sale, hire or other provision of property or services of any kind and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided; or
- (b) it is paid by way of security for payment for the provision of property or ser vices of any kind provided or to be provided by the credit union; or
- (c) it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
§ (4) If a credit union accepts a deposit in contravention of this section it shall be guilty of an offence and liable on conviction on indict ment or on summary conviction to a fine which on summary conviction shall not exceed the statutory maximum.
§ (5) The fact that a deposit is taken in contravention of this section shall not affect any civil liability arising in respect of the deposit or the money deposited.—[Mr. Denzil Davies.]
§ Brought up, and read the First time.
§ Mr. Davies
New clause 2 merely aligns the Credit Unions Bill with the 870 Banking Bill in relation to the definition of a deposit. The two Bills go together. The Banking Bill is now being considered by the House of Lords. We hope that it will be dealt with rapidly by both Houses and that it will become law before Parliament is dissolved on Saturday. We hope that this Bill will be passed just as rapidly. That is necessarry to align the two Bills.
The Bill as it stands provides that credit unions shall not accept a deposit but it leaves the word"deposit" undefined. The new clause and the subsequence amendments apply the Banking Bill definition of"deposit" so that there is no clash between the two Bills.
§ Mr. Powell
Perhaps this is a convenient point to invite the Minister of State to confirm the point I put to him in Committee, and which had been raised with me by certain credit unions. It concerns the question of donations. Will the Minister of State confirm that there is nothing in the Bill which limits or prevents direct donations being made to credit unions? This is probably the appropriate point at which to get that on the record.
§ Mr. Denzil Davies
I can confirm that point. The right hon. Gentleman raised the matter in Committee and I have looked into it. I can confirm that there is nothing to inhibit or restrict donations in the way that he describes.
§ Question put and agreed to.
§ Clause read a Second time, and added to the Bill.