(1) For the purposes of this regulation—
(a) “liabilities” include any deposits of money made in the credit union, any accrued interest on those deposits and any loans taken out by the credit union;
(b) “line of credit” means the maximum amount which a credit union is entitled to borrow at any given time;
(c) “liquid assets” include Eastern Caribbean currency and deposits of Eastern Caribbean currency made by a credit union with a bank or any other institution that takes deposits, and that the credit union is entitled to withdraw on demand as readily marketable securities;
(d) “marketable securities” include treasury bills, government debentures, treasury notes and other securities listed on the Eastern Caribbean securities exchange;
(e) “secondary society” means a registered society which comprises mainly primary societies; and
(f) “tertiary society” means a registered society all of whose members are secondary societies.
(2) A credit union shall at all times—
(a) have in its possession liquid assets; or
(b) maintain a line of credit,
in an amount sufficient to enable the society to meet its normal cash flow requirements as estimated by the society.
(3) A credit union shall at all times maintain an account—
(a) with a bank;
(b) with a loan company or trust company incorporated under the Companies Act; or
(c) with a secondary society or a tertiary society whose bye-laws provide for the acceptance of deposits, if the deposits can be repaid on demand.
(4) The account mentioned in subregulation (3) shall be—
(a) in an amount that is not less than 10% of the total liabilities of the registered society as shown on the society's most recent financial statement prepared and submitted in accordance with regulation 10; and
(b) in the form of demand deposits or deposits redeemable on the notice of the society.
(5) A credit union shall maintain the account described in subregulation (3) separate and apart from any other accounts or funds.
(6) Despite subregulation (4)(b) and subject to subregulation (7), where a credit union—
(a) was registered under the former Act, as that Act existed on the day before the coming into force of these Regulations; and
(b) maintained, on the commencement of the Act, a reserve,
the moneys maintained, on the commencement of the Act, in the reserve mentioned in paragraph (b) may be used to satisfy the requirements of subregulation (4)(a).
(7) Where—
(a) a credit union specified in subregulation (6) does not otherwise have sufficient moneys on account to satisfy the requirements of subregulation (4)(a); and
(b) any part of the reserve mentioned in subregulation (6) consists of unencumbered securities of the Government,
those securities shall mature within 5 years of the coming into force of these Regulations in order to be eligible to be used to satisfy the requirements of subregulation (4)(a).
(8) Where securities will mature after 5 years of the coming in force of these Regulations, the credit union shall, as soon as practicable after the coming into force of these Regulations, sell those securities and use the proceeds of the disposition to purchase deposits in accordance with the requirements of subregulation (3).
(9) Within 6 months of the coming into force of these Regulations, a credit union shall maintain at least 50% of the amount required by subregulation (4)(a) in liquid assets.
(10) Subject to section 119(3) of the Act, where a credit union does not have in its possession liquid assets, does not maintain a line of credit or does not do both of those things in an amount sufficient to enable the credit union to meet its normal cash flow requirements as required by subregulation (2), the credit union may use the amount in its account required to be maintained by subregulations (3) and (4) to satisfy the requirements of subregulation (2).