CREDS 4.3 Deposits
- (1)
A credit union must not accept deposits except:
- (a)
by way of subscription for its shares from persons who may lawfully be admitted to membership of the credit union under the Credit Unions Act 1979 or the Credit Union (Northern Ireland) Order 1985 (as appropriate)1 and the rules of the credit union; or
- (b)
from persons too young to be members under (2); or
- (c)
as loans from persons under CREDS 3.3.1 R to CREDS 3.3.2 G.
- (a)
- (2)
A credit union must not accept deposits exceeding the greater of £10,000 or 1.5 per cent of the total non-deferred shares in the credit union from a person who is under the age at which, by virtue of (for Great Britain credit unions)1 any provision of the credit union's rules, (for Northern Ireland credit unions) under article 15 of the Credit Unions (Northern Ireland) Order 1985 or any provision of the credit union's rules,1 or otherwise, he may lawfully become a member of the credit union, unless the deposits are held in a CTF in which case the credit union may accept a larger deposit.
Credit unions that provide CTFs should ensure that under their rules depositors under the age of 18 whose deposits are held within a CTF continue to be treated as juvenile depositors until the age of 18. This will provide for the fact that CTF account holders may not withdraw any money from the CTF until they reach the age of 18, in contrast to the position in relation to other deposits which become shares and may be withdrawn earlier.
CREDS 3.3.1 R and CREDS 4.3.1 R are intended to ensure that the liberalisation of credit union borrowing (CREDS 3.3.2 G) does not have the unintended effect of undermining the common bond concept by allowing credit unions to operate deposit accounts for natural persons who do not qualify for membership.