art 5 Effect of restrictions and prohibitions under 1979 Act
(1) Where immediately before commencement an unauthorised credit union was subject to a direction under section 19 of the 1979 Act , that direction has effect after commencement as if it were a requirement imposed on that credit union under section 43 of the Act. (2) For the purposes of the rules and guidance made prior to commencement by the Authority under Part X of the Act that relate to credit unions , a credit union which, immediately before commencement, did not hold a certificate under section 11C of the 1979 Act is to be treated from commencement as a version 1 credit union (and so, by virtue of rule 10.3.2 of the Credit Union Sourcebook , such a credit union may not lend more than £10,000 in excess of the borrowing member’s shareholding). (3) For the purposes of those rules and that guidance, a credit union which, immediately before commencement, held a certificate under that section is to be treated from commencement as a version 2 credit union(and so, by virtue of rule 10.3.4 of the Credit Union Sourcebook, such a credit union may lend up to £10,000 in excess of the borrowing member’s shareholding or 1.5% of the total shares in the credit union in excess of the borrowing member’s shareholding, whichever is the greater). (4) Paragraphs (2) and (3) are subject to anything done by or under the Act after commencement.