(1) A credit union may issue interest-bearing shares if -
(a) its rules so provide;
(b) its most recent year end balance sheet shows that it holds reserves of at least £50,000 or five per cent of its total assets, whichever is greater;
(c) its auditors have made a report under section 87 of the 2014 Act on that balance sheet;
(d) it has submitted that balance sheet to the appropriate authority; and
(e) it has submitted to the appropriate authority a report by its auditors (post-dating the balance sheet referred to in paragraph (b) above), stating that in their opinion the credit union satisfies such conditions as are specified by the appropriate authority for the purpose.
(2) A credit union which issues interest-bearing shares must submit to the appropriate authority an annual report by the auditors appointed to audit its accounts and balance sheet fulfilling the requirements of paragraph (e) of subsection (1) above by the date specified by the appropriate authority for the purpose.
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