All loans shall be approved by the Credit and Risk Management Committee, and ratified by the Finance and Administration Committee, and shall be restricted to members.
The rate of interest on loans shall be fixed by the Board of Directors and communicated to the members.
All loans shall be applied for on forms provided by the Society for the purpose. The loan application shall be signed by the member and in each case, shall set forth the amount applied for, the purpose for which the loan is desired, the terms of repayment, the security, if any, and such other information as the Credit Committee may require. All applications for loans and the reports of the Credit Committee thereon, shall be filed as permanent record of the Society.
Loan applications shall be considered by the Credit Committee in the order in which application is made unless the loan is deemed to be an “Emergency Loan”.
The Credit Committee may require an applicant to appear before it personally to be interviewed in respect of his application for a loan.
The loan repayment form shall clearly state the amount of the loan, the rate of interest, the terms of repayment, and the security.
No loan shall be made to any member more than 5% of the Society’s total assets nor for a period is exceeding what contained in the loan policy.
Loans may be granted to Board members, employees of the Society provided:
The loan complies with the By-laws and is not on terms more favorable than those extended to other borrowers,
The loan is approved by the Credit Committee, if any, and thereafter by the Board of Directors,
The applicant takes no part in the consideration of his application and does not attend the Credit or Board of Directors meeting at which his application is being considered.
The Society employees, Board of Directors members, Supervisory Committee members, shall not be guarantors to members’ loan applications to avoid conflict of interest in case of default on repayment.
