(1) A society shall set guidelines in its bye-laws for the granting of loans, guarantees, advances and other forms of financial assistance to its members and may give loans, guarantees, advances and other forms of financial assistance to its members in accordance with guidelines set out in its bye-laws.
(2) Except for a loan to another society, no loan shall be made to a person who is not a member of that society.
(3) A loan shall not be made to a member of the board or to an officer of a society for a sum in excess of the value of his or her shares, deposits and accumulated dividend and interest thereon unless approved in the manner prescribed in regulations under this Act and bye-laws.
(4) An officer of a society shall not be present at or participate in a meeting when his or her application for a loan is being considered.
(5) A loan made in contravention of subsections (2), (3) or (4) is void and shall be repaid to the society immediately.