(1) Subject to this Act and the regulations, every loan must be approved in accordance with the policies established by the directors before any funds are advanced.
(2) A loan to a director, a credit committee member, a supervisory committee member or an employee of a credit union or any person connected with one of them must be approved in the manner prescribed in the regulations.
(3) Any persons who approve or grant a loan in contravention of this Act or the regulations commit an offence and on conviction shall be held jointly and severally liable for any losses resulting to the credit union in connection with that loan.