Co-Operative Societies Act 2008
22. Loan approval
1. An application for a loan must be made on a form provided by the society and must state-
a. the purpose for which the loan is required;
b. the security, if any, offered; and
c. any other information the Credit Committee or Loans Officer requires.
2. When a loan application is approved, the Credit Committee or loans officer approving the loan shall do so in writing and ensure that the application and approval specify with respect to the loan-
a. the amount approved;
b. the terms of payment;
c. the rate of interest;
d. any security to be held by the credit union;
e. any guarantees to be taken;
f. any other conditions specified by the Credit Committee or the person approving the loan in addition to those mentioned in sub-paragraph (a) to (c) ; and (g) the date of approval of the loan.
3. Loan granted by a credit union shall be evidenced by a signed loan agreement between the credit union and the applicant.
4. No member of the Credit Committee or of the Board or Supervisory Committee or any other person who has been authorised to approve loans shall be present at the discussion of the approval of or approve a loan to himself or any persons with whom such person is related or has a fiduciary relationship.