Credit Review Act 2026
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Interpretation | ||
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2. (1) In this Act— | ||
“Act of 2014” means the Companies Act 2014 ; | ||
“alternative arrangement”, in relation to a credit facility agreement, means an agreement, governed by the law of the State, under which the borrower and the relevant person agree to vary or replace, in whole or in part, the terms and conditions of the credit facility agreement; | ||
“application”, other than in sections 20, 21, 25 to 30 and 32, means an application by a borrower to enter a credit facility agreement or an alternative arrangement with a relevant person and “applicant” shall be construed accordingly; | ||
“Bank” means the Central Bank of Ireland; | ||
“borrower” means an SME or a farmer, acting in their capacity as such SME or farmer, as the case may be; | ||
“constructive refusal” means— | ||
(a) an offer by a relevant person to enter into a credit facility agreement or an alternative arrangement on terms and conditions that the applicant reasonably considers are so onerous as to amount to a refusal, | ||
(b) the failure by a relevant person within 15 working days of receipt of an application to— | ||
(i) make a decision on the application and give notice of the decision to the applicant, or | ||
(ii) give notice to the applicant that assessment of the application will take longer than 15 working days and specifying the expected period within which a decision on the application will be made and notified to the applicant, | ||
or | ||
(c) the failure by a relevant person to make a decision on an application and notify the decision to the applicant within a period specified in a notice referred to in paragraph (b)(ii); | ||
“credit” means a deferred payment, cash loan or other similar financial accommodation, including (but not limited to) hire-purchase, invoice discounting and the letting of goods; | ||
“credit decision”, in relation to a borrower, means any of the following decisions made by a relevant person: | ||
(a) refusal of an application by the borrower to enter a credit facility agreement; | ||
(b) constructive refusal of an application by the borrower to enter a credit facility agreement; | ||
(c) withdrawal from the borrower of a credit facility granted pursuant to a credit facility agreement; | ||
(d) reduction of the amount of credit to be made available to the borrower pursuant to a credit facility agreement or an alternative arrangement; | ||
(e) refusal of an application by the borrower to enter an alternative arrangement; | ||
(f) constructive refusal of an application by the borrower to enter an alternative arrangement; | ||
(g) withdrawal from the borrower of an alternative arrangement in relation to a credit facility agreement; | ||
“credit facility” means credit of an amount not less than the prescribed minimum amount and not greater than the prescribed maximum amount; | ||
“credit facility agreement” means an agreement, governed by the law of the State, under which a relevant person grants or promises to grant a credit facility to a borrower; | ||
“credit institution” means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 20131 , other than a credit union registered as such under the Credit Union Act 1997 or deemed to be so registered by virtue of section 5(3) of that Act; | ||
“Credit Reviewer”, other than in section 11 (4) and Part 4, has the meaning assigned to it by section 11 (1); | ||
“establishment day” means the day appointed under section 8 ; | ||
“farmer” means a person engaged in primary production (within the meaning of Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 20022 ) in the State; | ||
“Guidelines” means Guidelines Issued Under Section 210 (1) of the National Asset Management Agency Act 2009 Regarding Lending Practices and Procedures and Relating to the Review of Decisions of Participating Institutions to Refuse Credit Facilities ( S.I. No. 127 of 2010 ); | ||
“local authority” has the same meaning as it has in the Local Government Act 2001 ; | ||
“Minister” means the Minister for Finance; | ||
“prescribe” means prescribe by regulations made by the Minister; | ||
“prescribed maximum amount” means an amount prescribed by the Minister under paragraph (b) of section 3 (1); | ||
“prescribed minimum amount” means an amount prescribed by the Minister under paragraph (a) of section 3 (1); | ||
“regulated financial service provider” has the same meaning as it has in the Central Bank Act 1942 ; | ||
“relevant activity” means entering into, or offering to enter into, credit facility agreements or alternative arrangements with borrowers; | ||
“relevant person” means— | ||
(a) a credit institution carrying on a relevant activity, or | ||
(b) a member of a class of regulated financial service providers prescribed under subsection (2) carrying on a relevant activity; | ||
“Service” has the meaning assigned to it by section 9 ; | ||
“SME” means a micro, small or medium-sized enterprise (within the meaning of Commission Recommendation 2003/361/EC of 6 May 20033 ) carrying on business in the State. | ||
(2) The Minister may, after consultation with the Bank, the Service and the Competition and Consumer Protection Commission, prescribe for the purposes of paragraph (b) of the definition of “relevant person” in subsection (1) a class of regulated financial service providers that are authorised to provide credit facilities to borrowers. | ||
(3) When deciding whether to prescribe a class of regulated financial service providers under subsection (2), the Minister shall have regard to— | ||
(a) the extent to which demand by borrowers for credit is being met by regulated financial service providers, | ||
(b) the importance to borrowers and the economy of the State of particular types of credit provided by the class of regulated financial service providers concerned, and | ||
(c) the amount of credit provided by that class of regulated financial service providers. | ||