267D Conditions and declarations relating to special term share accounts.

(1) The following are the conditions referred to in subparagraph (i) of the definition of “special term share account” in section 267A(1):

(a) the account shall be opened and designated by the credit union as a medium term share account or, as the case may be, a long term share account;

(b) the account shall not be denominated in a foreign currency;

(c) the account shall not be connected with any other share account or deposit account held by the member or any other person; and for this purpose an account shall be connected with another account if—

(i) (I) either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and

(II) the terms on which either account was opened would have been significantly less favourable to the member if the other account had not been opened,

or

(ii) the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;

(d) all shares held in the account shall be subject to the same terms;

(e) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of dividend which is paid or payable, in respect of the share or shares held in the account, in or in respect of any period which is more than 12 months;

(f) dividends paid or payable in respect of the share or shares held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;

(g) the account shall not be opened by or held in the name of a member who is under 16 years of age;

(h) the account shall be opened by and held in the name of the member beneficially entitled to the dividend payable in respect of the share or shares held in the account;

(i) an account may be held jointly by not more than 2 individual members;

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(j) subject to paragraph (k), a member shall not simultaneously hold, whether solely or jointly, another special term share account;

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(j) a member shall not simultaneously hold whether solely or jointly—

(I) a special term account, or

(II) subject to paragraph (k), another special term share account;

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(k) where the account is held jointly by ^[6]>individuals who are married to each other^<[6][6]>individuals who are married to each other or who are civil partners of each other^<[6] they may simultaneously hold one other such account jointly;

(l) subject to paragraphs (m) and (n) the amount of a subscription or aggregate amount of subscriptions for shares which may be added to an account in any one month shall not exceed ^[2]>£500^{<[2] [2]>} €635^<[2];

(m) at the time a member opens an account with a credit union, a single subscription for shares consisting of all or part of the savings of the member which are already held by the same credit union, may be transferred to the account;

(n) otherwise than by way of a transfer under paragraph (m), shares at a cost of not more than ^[3]>£6,000^{<[3] [3]>}€7,620^<[3] may be added by a member once and only once to an account during the period in which the account is a special term share account;

(o) any disbursement of the surplus funds of a credit union, in the form of dividends or rebate of loan interest, which is added to the account shall not be treated as a subscription for shares for the purposes of paragraph (l) or (p), but such dividend or rebate of loan interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so added;

(p) subject to paragraph (q), a share may not be withdrawn from an account held by a member within—

(i) 3 years from the date the share was subscribed for, in the case of a medium term share account, and

(ii) 5 years from the date the share was subscribed for, in the case of a long term share account,

otherwise than on the death of the member or, where the account is an account held jointly by 2 members, on the death of one of them;

(q) one and only one withdrawal may be made from an account by a member who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the member was under that age;

(r) a transfer of shares from an account by a credit union to reduce a balance outstanding on a loan from the credit union to a member shall not be treated as a withdrawal from the account for the purposes of paragraph (p) where—

(i) such shares were pledged as security for the loan at the time the loan was granted,

(ii) a default (whether of interest or otherwise) in the terms of the repayment of the loan of not less than 6 months has occurred, and

(iii) the credit union has followed its standard procedures in seeking to recover the loan.

(2) The declaration referred to in subparagraph (ii) of the definition of “special term share account” in section 267A(1) shall be a declaration in writing to the credit union which—

(a) is made by the member (in this subsection referred to as “the declarer”) who holds the account in respect of which the declaration is made^[5]>is payable^<[5],

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,

(e) contains the full name and address of the declarer,

(f) contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the credit union accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.