law: Co-Operative Societies Act 2008 
  26.
  
  Loan terms and conditions
  The
  
  terms and conditions upon which each loan shall be granted and repaid shall
  
  include but not be limited to the following—
  a.      every application for
  
  a loan shall be accompanied by such information about the financial position and
  
  income of the borrower as the Credit Committee or loans officer may require;
  b.     no society shall make
  
  a loan to an unincorporated organization. Where such a loan is contemplated, it
  
  shall be made to one or more of the members or officers of the organisation
  
  provided, however; that the society shall, in any such particular case, require
  
  such additional security by way of endorsement of the promissory note as may be
  
  deemed desirable;
  c.      no loan shall be made
  
  to a member if it would cause the total indebtedness of the member to the
  
  credit union to exceed 10 percent of the paid-up capital and deposits of the
  
  credit union;
  d.     the total of all
  
  loans made to associations, organizations or corporations, shall not, at any
  
  time, exceed 25 percent of the total shares and deposits of the credit union;
  e.      no loan shall be made
  
  to a company unless such loan is personally guaranteed by shareholders of the
  
  company holding a majority of the shares in value and in voting rights provided
  
  that such personal guarantee shall not be required where the loan is guaranteed
  
  by an organization or agency of Government;
  f.      no loan shall be made
  
  by a society to a corporation if a majority of the shares of the corporation
  
  are held by the officers and directors of the credit union unless the
  
  application has been approved by the Registrar;
  g.     transactions in the
  
  loan account of a member shall be shown by the necessary entries in a passbook
  
  or statement to be delivered to each member;
  h.      where a mortgage on
  
  land or building is taken as security for a loan, the amount loaned shall not
  
  exceed 90 percent of the market value of the land or buildings;
  i.       before such a loan is
  
  made, the Credit Committee or loan officer shall require that an appraisal of
  
  the market value of the property be made by an appraiser whom they believe to
  
  be competent and who is instructed and employed by the Credit Union
  
  independently of any owner of the property on a form approved by the Registrar;
  j.       the expenses, if any,
  
  of any appraiser employed pursuant to subparagraph (i) may be borne by
  
  the applicant for the loan.