Credit Union Act 1997

Interest on loans.

38

38. (1) A credit union may charge interest on loans made to its members under section 35 subject to the following conditions—

( a) the interest on a loan shall not at any time exceed one per cent. per month on the amount of the loan outstanding at that time;

( b) the interest on a loan shall in every case include all the charges made by the credit union in making the loan;

( c) the rate of interest charged on any class of loans granted at a particular time shall be the same for all loans of the class.

F61 [ (2) If a credit union knowingly charges or accepts interest on a loan at a rate greater than that permitted under this section

( a ) all the interest agreed to be paid by the member shall be deemed to have been waived by the credit union; and

( b ) any interest paid on the loan shall be recoverable summarily by the member (or his personal representative) as a simple contract debt. ]