Package Holidays and Travel Trade Act, 1995 (Bonds) Regulations, 1995.
Statutory Instruments
Source: Statutory Instruments

num: 1
paragraphs: These Regulations may be cited as the Package Holidays and Travel Trade Act, 1995 (Bonds) Regulations, 1995.
num: 2
paragraphs: These Regulations shall come into operation on the 1st day of October, 1995.
num: 3
paragraphs: In these Regulations—
"the Act" means the Package Holidays and Travel Trade Act, 1995 ,
"bond" means a bond under section 23 or 24 of the Act, as the context admits.
num: 4
paragraphs: These Regulations apply to packages to which the Act relates, with the exception of—
( a ) packages in respect of which the provider is required to hold a licence under the Transport (Tour Operators and Travel Agents) Act, 1982 , and
( b ) packages in respect of which the provider has complied with section 25 of the Act.
num: 5
paragraphs: A bond shall—
(i) in the case of a person who is a member of an approved body which has a reserve fund or insurance cover, as specified in section 23 of the Act, be for a sum of 10% of the projected turnover in the period of the validity of the bond in respect of packages to which these Regulations apply;
(ii) in the case of a person who is a member of an approved body which does not have a reserve fund or insurance cover as specified in section 23 (2) of the Act, be for a sum of 15% of the projected turnover in the period of the validity of the bond in respect of packages to which these Regulations apply.
num: 6
paragraphs: The maximum period for which a bond may be maintained is one year and the date of expiry or revocation shall be without prejudice to any liability which may be incurred under the bond in respect of any obligations to customers arising out of contracts in respect of packages to which these Regulations apply, entered into during the period of validity of the bond or of a previous bond which expired immediately prior to the period to which the current bond applies.
num: 7
paragraphs: Any demand under a bond by an approved body shall be made in writing not later than six months after the date on which the bond ceases to have effect, but on being satisfied that the package provider has discharged all obligations to consumers under the contracts to which the bond relates the approved body may, at its discretion, release the provider of the bond and any guarantor thereof from their obligations under the bond and any guarantee relating thereto at any earlier date within the period of six months.
num: 8
paragraphs: Where a new bond which comes into effect before or from the date on which the current bond ceases to have effect, is provided, or procured, by a package provider, the previous bond shall cease to be effective from the commencement of the new bond, and any losses or liabilities incurred by customers of the package provider as a result of the inability or failure of the package provider to meet financial or contractual obligations to such customers in respect of packages covered by these Regulations, shall fall to be discharged from moneys payable under the new bond.
num: 9
paragraphs: A bond may comprise all or any one or more of the following—
( a ) a sum deposited in a bank or financial institution in the State in the sole name of the approved body of which the package provider is a member;
( b ) a guarantee secured with a bank or insurance company;
( c ) a guarantee of such other type as may be acceptable to the approved body of which the package provider is a member;
( d ) an arrangement or scheme entered into on a collective basis by package providers or any group of package providers for the protection of consumers, provided that in the event of the inability or failure of any member of such collective groups to meet obligations to consumers in relation to packages covered by these Regulations, the amount of money payable to the approved body from such collective arrangements would be at the same level as that specified in Regulation 5 in respect of a particular package provider.
num: 10
paragraphs: In the case of a bond of the type specified in Regulation 9 (a), or where it has been necessary for an approved body to apply such a bond for the purposes specified in the Act, the amount of the bond or any residual balance thereof, as the case might be, shall be returned to the provider of the bond with such interest as may have accrued thereon, provided that all obligations to consumers of the package provider concerned who, during the period of validity of the bond or of a previous bond which expired immediately prior to the period to which the current bond relates, entered into contracts in respect of packages to which these Regulations apply with such package provider have been fully discharged.
num: 11
paragraphs: A bond of the type specified in Regulations 9 (b)—
( a ) shall be secured only with—
(i) insurance companies authorised to carry out suretyship business (Class 15) in accordance with the European Communities (Non Life Insurance) Framework Regulations, 1994 ( S.I. No. 395 of 1994 ), or
(ii) banks duly licensed under the Central Bank Act, 1971 (No. 24 of 1971).