370Excess share interest not to affect loan liability

370 Excess share interest not to affect loan liability

370 Excess share interest not to affect loan liability

(1) This section applies if a co-operative has made a loan to a member and the member had or has a relevant interest in shares of the co-operative in contravention of this Division.

(2) Until the amount lent to the member has been repaid to the co-operative (with the interest payable), the member is liable to make to the co-operative the payments the member would be liable to make if all the shares concerned were lawfully held by the member.

(3) Security for the repayment of the loan is not affected by a contravention of this Division.