[F1(1)[F2Subject as follows,] A credit union may make to a member a loan, upon such security (or without security) and terms as the rules of the credit union may provide.]
[F3(1A)A credit union may only make a loan to a corporate member if—
(a)the credit union’s rules provide that it may make loans to corporate members, and
(b)making the loan would not result in the aggregate of the outstanding balances on loans made by the credit union to corporate members exceeding ten per cent of the aggregate of the outstanding balances on all loans made by the credit union to members, or such higher percentage as may be specified.]
[F4(1B) Subsection (1) does not apply in relation to a member holding only deferred shares. ]
[F5(1C)Where a loan by a credit union is made to a member and is not a secured loan within the meaning of section 11A below, the terms of the loan must include provision as to whether, for the duration of the loan, the borrower is permitted to withdraw shares where his paid-up shareholding (excluding any deferred shares) in the credit union is, or following the withdrawal would be, less than his total liability (including contingent liability) to the credit union whether as borrower, guarantor or otherwise.]
F6(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)A credit union may charge interest on loans made by it but such interest shall be at a rate not exceeding one per cent. per month, or such other rate as may from time to time be specified, on the amount of the loan outstanding and such interest shall be inclusive of all administrative and other expenses incurred in connection with the making of the loan.
F6(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)In this section “specified” means specified by order made by the F9. . . Treasury.
Textual Amendments
F1S. 11(1) substituted (2.7.2002) by S.I. 2002/1501, arts. 1(1), 2(8)(a)
F2Words in s. 11(1) inserted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 15(3)(a) (with arts. 25, 26)
F3S. 11(1A) inserted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 15(3)(b) (with arts. 25, 26)
F4S. 11(1B) inserted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 17(2) (with arts. 25, 26)
F5S. 11(1C) inserted (8.1.2012) by The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 (S.I. 2011/2687), arts. 1(1)(b), 18(2) (with arts. 25, 26)
F6S. 11(2)(6) repealed (2.7.2002) by 2000 c. 8, ss. 338(4), 432(3), Sch. 18 Pt. V para. 22, Sch. 22; S.I. 2001/3538, art. 2(5)
F7S. 11(3) repealed (1.9.1996) by S.I. 1996/1189, art. 6(a)
F8S. 11(4) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(8)(b)
F9Words in s. 11(7) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1)(2), Sch. 3 Pt. IV para. 273, Sch. 4 (with art. 13(3)); S.I. 2001/3538, art. 2(1)
Modifications etc. (not altering text)
C1S. 11(7): Functions of the chief registrar transferred to the Treasury (1.12.2001) by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. I (with art. 5); S.I. 2001/3538, art. 2(1)