Business

Proposed ‘Transfer of Engagements’ of Cuchullain Credit Union Ltd to Dundalk Credit Union Ltd progressing

Business

David Lynch

Reporter:

David Lynch

Proposed ‘Transfer of Engagements’ of Cuchullain Credit Union Ltd to Dundalk Credit Union Ltd progressing

The Board of Directors of Dundalk Credit Union Limited and Cuchullain Credit Union Limited, having fully assessed independent reports and findings derived from an extensive due diligence process, have voted unanimously to proceed with the transfer of engagements of Cuchullain Credit Union Limited to Dundalk Credit Union Limited by board resolutions. 

A Transfer of Engagements is the voluntary process whereby all assets, liabilities and undertakings of one or more credit unions are transferred to another credit union. 

The Central Bank of Ireland provided approval for the transfer of engagements to proceed in this manner. The combined entity will be one of the largest community credit unions in the country. 

A statement released jointly today by Dundalk Credit Union Limited and Cuchullain Credit Union Limited, read: “While the intention of the boards was to hold special general meetings (SGMs) at which the proposed transfer of engagements would have been put forward for approval by members of each credit union, prioritizing the health and safety of members prevented these public meetings from going ahead. Holding SGMs is not possible in this instance due to Covid 19 public health risks and associated public health policy. As a result of this, the transfer of engagements is now being executed by board resolutions, as allowed for in credit union legislation and following receipt of Central Bank approval to proceed in this fashion”. 

Paddy Donnelly, Chairman of Dundalk Credit Union Limited commented: “This is an exciting time for the members, staff and boards of both credit unions. This project is about the people of Dundalk and its environs and is about supporting the social and economic well-being of Dundalk and the North East, with something different – a 21st century value driven credit union to meet the financial needs of a 21st century member.The people of Dundalk came together in the 1960’s to build two credit unions to help improve and shape the lives of local people and our community. Going forward that same commitment and determination will only deepen as we become stronger together. Together we serve Dundalk and the North East better and together we create a brighter future.” 

Michael Rafferty, Chairman of Cuchullain Credit Union Limited added: “In combining our Credit Unions, we will create a stronger platform that means we can broaden the range of services we offer to all members, including better on-line facilities, enhanced savings services, and longer office opening hours. In coming together, we will also have the capacity to broaden our lending services to offer larger loans and mortgages and to provide loans to local businesses that directly support local jobs and the local community. We are mindful of ensuring ongoing uninterrupted provision of services for our members, and the delivery of financial support to the wider community. Our number one priority, at all times, is to serve the best interests of all of our members and the community, and we can fulfill this mission better as part of a combined entity” 

The combined credit union will have over 45,000 members, assets approaching €300m, reserves of €50m, and will have over €200m available for lending. There are exciting plans to broaden the range of personal, mortgage and business lending offerings to support all members and the local community. It will also enable significant new investment to be made in new products, digital platforms and ICT to meet current and future member needs. 

Members of both credit unions will receive the Section 130 information booklet in the coming days. This detailed booklet will provide comprehensive information on the transfer of engagements.