344Interest payable on compulsory loan

344 Interest 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—

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

(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.