law: Co-Operative Societies Act 2008 
  195.
  
  Loan approval
  1.      Subject to this Act
  
  and the Regulations, every loan approval must be approved in accordance with
  
  the policies established by the directors before any funds are advanced.
  2.      A  loan to a director, a
  
  credit committee member or an employee of a credit union or any person
  
  connected with one of them must be approved in the manner prescribed in the
  
  Regulations.
  3.      Any person who
  
  knowingly approves or grants a loan in contravention of this Act or the
  
  Regulations shall be held liable for any losses resulting to the credit union
  
  in connection with that loan.