Hong Kong Regulations

CO-OPERATIVE SOCIETIES RULES - RULE 43

Sanction of loan

(1) The committee shall consider at a meeting every application for a loan,
and if the committee is satisfied with the trustworthiness of the applicant,
the sufficiency of the security offered and the prospects of advantage to the
borrower, in the way of increased production or economy or otherwise, it may
sanction the loan.

(2) No person other than members of the committee and the secretary and the
Registrar and his staff shall be present at any meeting of the committee when
an application for a loan is under consideration. A member of the committee
who applies for a loan or who is proposed as surety for a loan shall withdraw
while the relevant application is being discussed. If there is a difference of
opinion concerning the granting of a loan, the voting shall be taken by
ballot. The proceeding with regard to loans at committee meetings shall be
kept secret, and any member of the committee or officer of the registered
society infringing this rule shall be liable to immediate expulsion or
dismissal.