(1) Subject to compliance with section 130, a credit union may transfer its engagements to another credit union which, in accordance with this section, undertakes to fulfil the engagements.

(2) A credit union, in order -

(a) to transfer its engagements, or

(b) to undertake to fulfil the engagements of another credit union,

shall resolve to do so by a special resolution or, if the Bank consents in either case in circumstances where it considers it expedient to do so, by a resolution of the board of directors.

(3) The transfer shall be recorded in an instrument of transfer of engagements.

(4) A transfer of engagements between credit unions shall be of no effect unless -

(a) the transfer is confirmed by the Bank under section 131; and

(b) a certificate of confirmation of the transfer is issued in respect of the transfer under subsection (5)(b).

(5) Where the Bank confirms a transfer of engagements between credit unions, it shall -