# Credit Unions Act 1979, Section 16: Guarantee funds.

Extent: E+W+S

(1) Subject to the provisions of this section, a credit union, or any two or more credit unions, may enter into arrangements with a person carrying on the business of insurance for the purpose of making funds available to meet losses incurred by members of a credit union which is a party to the arrangements; and any two or more credit unions may enter into any other kind of arrangements for that purpose.
(2) Subject to subsection (3) below, a credit union shall have power to make contributions under arrangements made in accordance with subsection (1) above, and such arrangements may in particular provide for the vesting of a fund in trustees appointed under the arrangements.
(3) Arrangements under subsection (1) above shall not come into force and no contribution shall be made thereunder by a credit union, until they have been approved by the appropriate authority; and the appropriate authority shall not approve any such arrangements unless they provide that any variation of their terms shall also require its approval.

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Source: https://www.legislation.gov.uk/ukpga/1979/34/section/16 (the official version)
Page: https://openlegislation.uk/credit-unions-act-1979/section-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.