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14 2009

Financial Measures (Miscellaneous Provisions) Act 2009

PART 2

Direct Debit Instructions and Mandates

Continuation of certain direct debit instructions.

2 .— (1) The Minister for Finance may make regulations providing for direct debit instructions to continue to operate as direct debit mandates after the SEPA Scheme comes into operation.

(2) Subject to any regulations made by virtue of subsection (1), a direct debit instruction continues to operate, after the SEPA Scheme comes into operation, as a direct debit mandate according to its terms.

(3) Regulations made by virtue of subsection (1)

(a) may, for the purpose of continuing the operation of a direct debit instruction as a direct debit mandate, modify the operation, in relation to such an instruction or mandate, of any enactment or rule of law, and

(b) may make provision—

(i) requiring originators that intend to continue direct debit instructions in operation as direct debit mandates after the SEPA Scheme comes into operation to make available specified information about the Scheme, and about how the information is required to be made available, and

(ii) for the period of notice that such an originator is required to give of that intention, and the manner in which that notice is required to be given.

(4) Regulations made under subsection (1)

(a) may declare any such regulation to be a penal regulation, and

(b) may make different provision for different classes of direct debit instructions.

(5) A person who contravenes a regulation under this section that is declared to be a penal regulation commits an offence and is liable on summary conviction to a fine of €5,000 or imprisonment for 6 months or both.

(6) Regulations made under subsection (1) shall be laid before each House of the Oireachtas as soon as may be after they are made and, if a resolution annulling them is passed by either such House within the next 21 days on which that House has sat after the regulations are laid before it, the regulations shall be annulled accordingly but without prejudice to the validity of anything previously done under the regulations.

(7) In this section:

“ direct debit instruction” means—

(a) a direct debit instruction, within the meaning given by the Scheme Rules of the Direct Debit Scheme published by Irish Retail Electronic Payments Clearing Company Ltd as updated to February 2008, being such an instruction that is valid and operative within the terms of those Rules, or

(b) a direct debit plus instruction, within the meaning of those Rules, being such an instruction that is valid and operative within the terms of those Rules;

“ direct debit mandate” means a mandate, within the meaning given by the Scheme Rulebook;

“ originator” means the person in whose favour a direct debit instruction or direct debit mandate has been given;

“ Scheme Rulebook” means the SEPA Core Direct Debit Scheme Rulebook Version 3.3 approved by the European Payments Council on 31 March 2009, or any later version of that Rulebook approved by that Council;

“SEPA Scheme” means the SEPA Core Direct Debit Scheme set out in the Scheme Rulebook.