(1) At any time on or before 1st July 2004, the Authority may give a direction under this article to a class of credit unions which is specified in the direction.

(2) A direction under this article is a direction that each credit union falling within the class specified in the direction must, before a date so specified, apply to the Authority under section 40 of the Act for a fresh permission to carry on the regulated activities which it wishes to carry on.

(3) Section 40(2) of the Act does not apply in relation to an application made in pursuance of the direction.

(4) If a credit union fails to comply with the direction, its Part 4A permission ceases to have effect on the date specified under paragraph (2).

(5) If a credit union complies with the direction but the application which it makes in pursuance of it is refused, its Part 4A permission ceases to have effect when the application is decided.