law: Co-Operative Societies Act 2008 
  21.
  
  Liquidity
  1.      For the purposes of
  
  this Regulation-
  “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;
  “line
  
  of credit”  means
  
  the maximum amount which a credit union is entitled to borrow at any given
  
  time;
  “liquid
  
  assets”  means
  
  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 such
  
  other currency or currency deposits and that the credit union is entitled to
  
  withdraw on demand as well as readily marketable securities;
  “marketable
  
  securities”  includes
  
  treasury bills, government debentures, treasury notes and other similar
  
  government securities listed on the Eastern Caribbean Securities Exchange;
  “secondary
  
  society”  means
  
  a registered society which comprises mainly primary societies; and
  “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; and/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 or accounts-
  a.     
  
    with
  
  a bank or banks;
  b.    
  
    with
  
  a loan or trust company or companies incorporated under the relevant Act; or
  c.     
  
    with
  
  a secondary society or tertiary society whose by-laws provide for the
  
  acceptance of deposits, if the deposits can be repaid on demand.
  4.      The account referred
  
  to in paragraph (3) shall be-
  a.     
  
    in
  
  an amount that is not less than 10 per cent 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 notice given by the
  
  society.
  1.      
  2.      
  3.      
  4.      
  5.      A credit union shall
  
  maintain the account referred to in paragraph 3, separate from its other
  
  accounts or funds.
  6.      Notwithstanding
  
  paragraph (4)(b) and subject to paragraph (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
  
  at the commencement of the Act, a reserve; the monies, maintained at the
  
  commencement of the Act, in the reserve referred to in paragraph (4)(b) may
  
  be used to satisfy the requirements of paragraph (4)(a) .
  1.      
  2.      
  3.      
  4.      
  5.      
  6.      
  7.      Where-
  a.     
  
    a
  
  credit union described in paragraph (6) does not otherwise have sufficient
  
  monies on account to satisfy the requirements of paragraph (4)(a) ; and
  b.    
  
    any
  
  part of the reserve referred to in paragraph (6) consists of unencumbered
  
  securities of the Government of , 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 paragraph (4)(a) .
  1.      
  2.      
  3.      
  4.      
  5.      
  6.      
  7.      
  8.      Where securities will
  
  mature after 5 years of the coming into 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 section (3).
  9.      Within 6 months of
  
  the coming into force of these Regulations, a credit union shall maintain at
  
  least 50 percent of the amount required by paragraph (4)(a) in liquid
  
  assets if it does not already do so.
  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 paragraph (2), the credit union may use the amount
  
  in its account required to be maintained by paragraphs (3) and (4) to satisfy
  
  the requirements of paragraph (2) but only for the period of one month or such
  
  extended period, not to exceed three months, as the Registrar may determine.