344Interest 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:

(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.

Division 2 Co-operative capital units (CCUs)