204Certain financial accommodation to officers prohibited

204 Certain financial accommodation to officers prohibited (1) An officer of a co-operative who is not a director of the co-operative must not obtain financial accommodation from the co-operative other than: (a) with the approval of a majority of the directors; or (b) under a scheme about providing financial accommodation to officers that has been approved by a majority of the directors. (2) For the purposes of this section, financial accommodation is taken to be obtained by an officer of a co-operative if it is obtained by: (a) a proprietary company in which the officer is a shareholder or director; or (b) a trust of which the officer is a trustee or beneficiary; or (c) a trust of which a corporation is trustee if the officer is a director or other officer of the corporation. (3) A co-operative must not give financial accommodation to an officer of the co-operative if: (a) by giving the financial accommodation, the officer would contravene this section; and (b) the co-operative knows or should reasonably know of the Maximum penalty (for subsection (3)): $50 000.