164Interest on deposits, debentures and CCUs

164 Interest on deposits, debentures and CCUs

164 Interest on deposits, debentures and CCUs

(1) This section applies when the amount payable to a former member under section 128 or 163 is applied as a deposit with the co-operative or the co-operative allots or issues debentures or CCUs to the former member in satisfaction of the amount.

(2) The deposit, debenture or CCU bears interest during any period—

(a) for a co-operative with share capital—

(i) at the rate (or, if there is more than one rate, at the higher or highest rate) of dividend payable for that period on the share capital of the co-operative; or

(ii) if the rate of dividend payable for that period has not been decided—at 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—at the rate the board of the co-operative considers reasonable; or

(b) for a co-operative without share capital—at 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)—at the higher rate.

(3) A former member may agree to the rate of interest being lower than that which would otherwise be payable under this section and may agree to no interest being paid.

(4) The following provisions of the Corporations Act, as applying under section 337 of this Law, do not apply to an allotment or issue of debentures or CCUs under this section—

(a) Chapter 2L;

(b) Chapter 6D.