I move amendment No. 58:
In page 34, subsection (1), lines 32 to 35, to delete paragraphs (c) and (d) and substitute the following:
"(c) the rate of interest charged on any class of loans granted at a particular time shall be the same for all loans of the class.".
This new paragraph (c) replaces paragraphs (c) and (d) in the Bill as published. The amendment is a response to comments by the Irish League of Credit Unions that, in the context of future operations, it may be unduly restrictive to require a credit union to apply the same rate of interest on all unsecured loans under paragraph (c) and all secured loans under paragraph (d). The present provision could deny credit unions the ability to tailor loan arrangements for different purposes, regardless of risk. For example, a credit union would be obliged to apply the same rate of interest on a small unsecured loan as on a large unsecured loan granted at the same time. Prudential management may demand, however, that the credit union deal with the higher risk attaching to the larger loan amount by applying a higher interest rate. Accordingly, this amendment allows greater flexibility to credit unions to charge different rates of interest for loans of different purposes and sizes.
