Section 11A Loans to be treated as securedF1
(1)
This section applies where—
(a)
a credit union makes a loan to a member of the credit union, and
(b)
at the time the loan is made, the member’s paid-up shareholding in the credit unionF2, excluding any deferred shares, is equal to or greater than his total liability (including contingent liability) to the credit union, whether as borrower, guarantor or otherwise.
(2)
On the application of the member to the credit union, the loan shall be treated for the purposes of this Act as a secured loan.
Annotations
Textual amendments
- F1
S. 11A inserted (1.9.1996) by S.I. 1996/1189 arts. 1, 5
- F2
Words in s. 11A(1)(b) 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(3) (with arts. 25, 26)