(1) In this section -

(a) "dispute" means such a dispute as is referred to in subsection (1) of section 125; and

(b) "the Arbitration Acts" means the Arbitration Acts, 1954 and 1980.

(2) Where the registered rules of a credit union provide that a dispute shall be determined by arbitration, the Arbitration Acts shall, subject to any necessary modifications, apply to that dispute and -

(a) the rules of the credit union shall, for the purposes of this subsection, be deemed to be an arbitration agreement within the meaning of the Arbitration Acts;

(b) arbitrators shall be named and selected in accordance with the rules of the credit union or, if the rules make no such provision, one arbitrator shall be named by the board of directors and one by the member, former member or other person who is a party to the dispute with the credit union; and

(c) an arbitrator shall not be beneficially interested, whether directly or indirectly, in the funds of the credit union.