law: Co-Operative Societies Act 2008 
  115.
  
  Loan by society
  1.      A society may give
  
  loans, guarantees, advances and other forms of financial assistance to its
  
  members.
  2.      Except for a loan to
  
  another society, no loan may be made to a person who is not a member of that
  
  society.
  3.      No loan may be made
  
  to a member of the Board or to an officer of a society of a sum in excess of
  
  the value of his shares, deposits and accumulated dividend and interest thereon
  
  unless adequate security is provided for the amount of the loan in excess of the
  
  value of his shares, deposits and accumulated dividends and interest thereon.
  4.      No officer of a
  
  society shall be present at or participate in a meeting when his application
  
  for a loan is being considered.
  5.      A loan made in
  
  contravention of subsection (4) is void and shall be repaid to the society
  
  immediately.