Co-Operative Societies Act 2008

195. Loan approval

1.      Subject to this Act and the Regulations, every loan approval must be approved in accordance with the policies established by the directors before any funds are advanced.

2.      A loan to a director, a credit committee member or an employee of a credit union or any person connected with one of them must be approved in the manner prescribed in the Regulations.

3.      Any person who knowingly approves or grants a loan in contravention of this Act or the Regulations shall be held liable for any losses resulting to the credit union in connection with that loan.