488False statements in loan application etc

488 False statements in loan application etc

488 False statements in loan application etc

(1) A person must not in, or in relation to, an application, request, or demand for money made to or of a co-operative—

(a) give information or make a statement to the co-operative or an officer, employee or agent of the co-operative knowing it to be false or misleading in a material particular; or

(b) proffer to the co-operative or an officer, employee or agent of the co-operative any information or statement provided by another person knowing it to be false or misleading in a material particular.

Maximum penalty—$6,000 or imprisonment for 6 months, or both.

(2) If a person is found guilty of an offence under subsection (1), a co-operative from which money has been obtained by the person in relation to the commission of the offence may exercise all rights under a mortgage or other security given to it by the person to secure the repayment of money that it could exercise if there were a breach of a covenant or of a term of a contract by which the security was given.

(3) The co-operative may exercise the rights whether the mortgage or other security was executed by the person alone or by the person and another person or other persons.