16
Loan officers.
Purposes of loans.
Restrictions on loans.
Rates of interest.
Unanimous vote required for loans to directors or committee members.
Borrowing powers.
CAP. 119]
Credit Unions.
[1968 Ed.
38. (1) The credit committee, with the prior approval of the board, may appoint members of the credit committee as loan officers to act under the committee's supervision.
(2) Notwithstanding anything contained in section 36, a loan officer may make loans to members of the credit union in the manner provided in the by-laws.
PART VI
LOANS, BORROWING, RESERVE FUND AND DIVIDENDS.
Loans to members.
39. No loan shall be made to a member of a credit union under this Ordinance other than for provident or productive purposes.
40. (1) Save as is provided in paragraphs (a) and (b) of section 10, no credit union shall make a loan to any person who is not a member thereof.
(2) A loan shall not be made by a credit union to a member thereof if this would cause the member to owe the credit union more than ten per cent of the aggregate amount of the share balance, the reserve fund and any other funds of the credit union.
41. (1) The interest rate on any loan made by a credit union to a member thereof shall not exceed one per cent per month on the total of the unpaid balance of any such loan plus all charges (if any) made by the credit union in making the loan.
(2) The interest rate determined in respect of loans made to members of a credit union during any specified period shall be the same for all such loans.
42. No director or member of the supervisory committee or the credit committee may obtain a loan from the credit union in excess of the value of his shares except upon the unanimous vote of a majority of the board, the supervisory committee and the credit committee, sitting together, such director or member not being present at the taking of the vote.
Borrowing powers.
43. (1) Subject to this section, a credit union may borrow money for the carrying out of its objects.
(2) No money shall be borrowed by a credit union save upon a resolution of its board.
(3) A credit union may not borrow money so that its total indebtedness would in consequence exceed fifty per cent of its share balance.
16
Loan officers.
Purposes of loans.
Restrictions on loans.
Rates of interest.
Unanimous vote required for loans to directors or committee members.
Borrowing powers.
CAP. 119]
Credit Unions.
[1968 Ed.
38. (1) The credit committee, with the prior approval of the board, may appoint members of the credit committee as loan officers to act under the committee's supervision.
(2) Notwithstanding anything contained in section 36, a loan officer may make loans to members of the credit union in the manner provided in the by-laws.
PART VI
LOANS, BORROWING, RESERVE FUND AND DIVIDENDS.
Loans to members.
39. No loan shall be made to a member of a credit union under this Ordinance other than for provident or productive purposes.
40. (1) Save as is provided in paragraphs (a) and (b) of section 10, no credit union shall make a loan to any person who is not a member thereof.
(2) A loan shall not be made by a credit union to a member thereof if this would cause the member to owe the credit union more than ten per cent of the aggregate amount of the share balance, the reserve fund and any other funds of the credit union.
41. (1) The interest rate on any loan made by a credit union to a member thereof shall not exceed one per cent per month on the total of the unpaid balance of any such loan plus all charges (if any) made by the credit union in making the loan.
(2) The interest rate determined in respect of loans made to members of a credit union during any specified period shall be the same for all such loans.
42. No director or member of the supervisory committee or the credit committee may obtain a loan from the credit union in excess of the value of his shares except upon the unanimous vote of a majority of the board, the supervisory committee and the credit committee, sitting together, such director or member not being present at the taking of the vote.
Borrowing powers.
43. (1) Subject to this section, a credit union may borrow money for the carrying out of its objects.
(2) No money shall be borrowed by a credit union save upon a resolution of its board.
(3) A credit union may not borrow money so that its total indebtedness would in consequence exceed fifty per cent of its share balance.
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