Paragraph 3 NOW THIS DEED WITNESSETH AND IT IS HEREBY DECLARED as follows:

The Union and the Bank hereby agree and declare that, subject as is by this Deed provided, they will hold manage and apply in accordance with the provisions of this Deed the Fund as hereinafter defined (hereinafter called “the Fund”);

The Fund and any investments money or other assets for the time being comprised therein may in the absolute discretion of the Union and the Bank be held in the sole name of the Bank;

Any real property for the time being forming part of the Fund shall be held upon trust for sale;

The Union and the Bank delegate to the Union the duty of administering the Scheme in accordance with the provisions of this Deed; the Union may delegate the administration of the Scheme to a committee to be known as the Co-operative Deposit Protection Scheme Board (“the Board”) comprising the Chairman for the time being and four other members appointed by and from the Central Executive of the Union.

The Union and the Bank delegate to the Bank the investment of the Fund;

The banking administrative and management expenses of the Union and/or the Bank shall be defrayed out of the Fund.

The Union shall convene an Annual General Meeting of Participating Societies to be held at such date time and place as it shall determine and of which it shall give at least 28 clear days notice in writing to the Bank and to all Participating Societies stating the business to be transacted.

For the purpose of regulating the deposit taking business of Participating Societies the Union has issued a Code of Practice the text of which is set out in the Third Schedule hereto. The failure of a Participating Society to observe the provisions of the Code of Practice or to comply with the credit limits stipulated therein may result in the expulsion of that Society from the Scheme pursuant to clause 15 hereof and the Second Schedule hereto.