(1) Where, in any proceedings for negligence, default, breach of duty or breach of trust against an officer of a credit union, it appears to the court hearing the case -

(a) that the officer is or may be liable in respect of the negligence, default or breach in question but that he acted honestly and reasonably, and

(b) that, having regard to all the circumstances of the case (including those connected with his appointment), he ought fairly to be excused for the negligence, default or breach,

the court may relieve him (either wholly or partly) from his liability on such terms as the court may think fit.

(2) Where an officer of a credit union who has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust, applies to the Court for relief, the Court shall have the same power to relieve him as it would have under this section if it were a court before which proceedings against him had been brought for the negligence, default or breach.