Glossary

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Term Definition Legal instruments

member contribution

01/01/2016

THIS DEFINITION ONLY APPLIES TO THE INSURANCE COMPANY - CAPITAL RESOURCES PART

means any paid-up contribution by a member of a mutual where the members' accounts meet the following criteria:

(1) the memorandum and articles of association or other constitutional documents must stipulate that payments may be made from these accounts to members only in so far as this does not cause the mutual’s capital resources to fall below the required level, or, if after dissolution of the mutual, all the firm's other debts have been settled;

(2) the memorandum and articles of association or other constitutional documents must stipulate, with respect to the payments referred to in (1) made for reasons other than the individual termination of membership, that the PRA must be notified at least one month in advance of the intended date of such payments; and

(3) the PRA must be notified of any amendment to the relevant provisions of the memorandum and articles of association or other constitutional documents.