Operation of credit union

F1Loans to be treated as secured28A

1

This Article applies where—

a

a credit union makes a loan to a member of the credit union, and

b

at the time the loan is made, the member's paid-up shareholding in the credit union is equal to or greater than his total liability (including contingent liability) to the credit union, whether as borrower, guarantor or otherwise.

2

On the application of the member to the credit union, the loan shall be treated for the purposes of this Order as a secured loan.