Chapter 5

Dividend Payments by Credit Unions

267A Interpretation (Chapter 5).

(1) In this Chapter—

“appropriate tax” has the same meaning as in section 256(1);

“dividend” means a dividend on shares declared by a credit union at an annual general meeting of that credit union;

“long term share account” means an ^[3]>account opened^<[3][3]>account that is opened before 16 October 2013^<[3] by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 5 years;

“medium term share account” means an ^[4]>account opened^<[4][4]>account that is opened before 16 October 2013^<[4] by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 3 years;

^[5]>

“regular share account” means an account, other than a special share account or a special term share account, opened by a member (being an individual) with a credit union;

^<[5]

“relevant deposit” has the same meaning as in section 256(1);

“relevant deposit taker” has the same meaning as in section 256(1);

“relevant interest” has the same meaning as in section 256(1);

“savings” includes shares and deposits;

“share” has the same meaning as in Chapter 4 of this Part—

(a) the value of the shares held in the account at any time is to be treated as an amount of a relevant deposit held by the credit union at that time, and

(b) the value of any dividend paid on those shares at any time is to be treated as an amount of relevant interest paid in respect of such relevant deposit by the credit union at that time;

“special term share account” means—

(a) a medium term share account, or

(b) a long term share account,

being an account in which shares subscribed for by a member are held by a credit union and in respect of which—

(i) the conditions specified in section 267D(1) are satisfied, and

(ii) a declaration of the kind mentioned in section 267D(2) has been made to the credit union.

^[2]>

(2) For the purposes of this Chapter the amount of any dividend credited to a member’s account shall be treated as if it were a dividend paid, and references in this Chapter to any dividend paid shall be construed accordingly.

^<[2]