Interest payable on compulsory loan
344 Interest payable on compulsory loan
(1) The rate of interest payable by a co-operative for a loan under section 343 during a period is:
for a co-operative with share capital:
(i) the rate (or, if there is more than one rate, the higher or highest rate) of dividend payable for the period on the share capital of the co-operative; or
(ii) if the rate of dividend payable for the period has not been decided – the rate (or the higher or highest rate) payable for the immediately preceding period for which a rate has been decided; or
(iii) if a rate of dividend has never been decided for the share capital of the co-operative – the rate the board of the co‑operative considers reasonable; or
(b) for a co-operative without share capital – the rate the board of the co-operative considers reasonable; or
(c) if the rules of the co-operative provide for a rate to be payable that is higher than the rate applicable under paragraph (a) or (b) – the higher rate.
(2) A member may agree to the rate of interest being less than what would otherwise be payable under this section and may agree to no interest being paid.
This Act’s bill:Explanatory statement
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