102Certain financial accommodation to officers prohibited

#### 102 Certain financial accommodation to officers prohibited 102 Certain financial accommodation to officers prohibited > > (1) An officer of a society who is not a director of the society must not obtain financial accommodation from the society other than— > > > > > (a) with the approval of a majority of the directors, or > > > > > (b) under a scheme about providing financial accommodation to officers that has been approved by a majority of the directors. > > > > Maximum penalty—200 penalty units or imprisonment for 5 years, or both. > > > (2) For the purposes of this section, financial accommodation is taken to be obtained by an officer of a society if it is obtained by— > > > > > (a) a proprietary company in which the officer is a shareholder or director, or > > > > > (b) a trust of which the officer is a trustee or beneficiary, or > > > > > (c) a trust of which a body corporate is trustee if the officer is a director or other officer of the body corporate. > > > (3) A society must not give financial accommodation to an officer of the society if— > > > > > (a) by giving the financial accommodation, the officer would contravene this section, and > > > > > (b) the society knows or should reasonably know of the contravention. > > > > Maximum penalty—50 penalty units.