Credit Union Act 1997

Approval of loans.

36

36. (1) A credit union shall not make a loan to a member unless it is approved in accordance with this section.

(2) Subject to subsections (3) and (5), a loan must be approved, according as the rules of the credit union require—

( a) by such number of members of the board of directors voting by secret ballot at a meeting of the board at which the application for the loan is considered as represents at least two-thirds of those present and a majority of the members of the board as a whole; or

( b) by such number of members of the credit committee present at a meeting of that committee at which the application for the loan is considered as represents at least two-thirds of those present and a majority of the committee members as a whole; or

( c) by a credit officer.

F41 [ (3) Subject to subsection (5) , a loan to an officer is required to be approved by not less than two-thirds of the members of a special committee voting by secret ballot at a meeting at which the application for the loan is considered. ]

F42 [ (4) The special committee referred to in subsection (3) shall consist of

( a ) a majority of the board of directors, and

( b ) at least one member of the credit committee,

but shall not include the applicant for the loan. ]

F43 [ (5) Notwithstanding subsection (3) , a loan to an officer which does not exceed the value of the officer s attached savings may be approved as mentioned in paragraph (b) or (c) of subsection (2) . ]

(6) F44 [ ]