(1) A society may, out of any separate loan fund to be formed by contributions or deposits of its members, make loans to members on their personal security, with or without sureties, as may be provided by the rules, subject to the following restrictions—
(a) a loan shall not at any time be made out of money contributed for the other purposes of the society;
(b) a member shall not be capable of holding any interest in the loan fund exceeding $1,440;
(c) a society shall not make any loan to a member on personal security beyond the amount fixed by the rules, or make any loan which, together with any money owing by a member to the society, exceeds 2/3 of the amount standing to the credit of such member;
(d) a society shall not hold at any one time on deposit from its members any money beyond the amount fixed by the rules, and the amount so fixed shall not exceed 2/3 of the total sums owing to the society by the members who have borrowed from the loan fund;
(e) no member who is indebted to a society in respect of a loan made to him or her by such society shall be accepted as surety for another member of the said society.
(2)
(a) The rules shall fix the interest to be charged for loans which in no case shall exceed 12% per year and the terms and conditions offered to contributors and depositors. Interest shall be payable at such time as the committee shall determine.
(b) Every society shall keep—
(i) a register of all contributors to or depositors in its loan fund,
(ii) a book showing particulars of loans made and dates on which repayments are made,
(iii) a cash book in which all amounts received or paid for any purpose of the loan fund shall be entered by the responsible officer, and
(iv) proper books of accounts in which shall be posted all entries from the cash and other books relating to the loan fund.
(c) Once in every year, not later than 30 June, a schedule of all promissory notes and other securities and sums held by or due to a society from its members as at the preceding 31 December in the operation of a loan fund shall be prepared and signed by the trustees and lodged with the secretary, and the same shall be open without charge to every member of the society. Such schedule shall give the date of maturity of every such promissory note or other security and the accumulations of interest due thereon as at the preceding 31 December.