‘Moral duty’ on Church to bail out PMS savers
The Presbyterian Church is under a moral obligation to contribute funds to a rescue package for savers in its collapsed mutual society, the High Court has heard.
The Church is seeking permission to put up to £1m in the pot to help thousands who lost savings when the Presbyterian Mutual Society (PMS) collapsed in 2008.
A judge hearing the case is due to give his ruling today.
The Church had to apply to the court because its funds can only be used for charitable purposes. Approval is needed as the fund it wants to donate to is not a charity.
The Attorney General was also represented at the hearing because he has a duty to protect the public interest in any case involving charities.
A rescue plan totalling more than £200m has been put together, including £25m contributions each from the UK and Northern Ireland governments. A Treasury loan of £175m also forms part of the package for PMS savers.
In April last year the Presbyterian Church in Ireland agreed to contribute £1m.