New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 268A

268A Interest payable on compulsory loan

(cf Vic Act s 268)

(1) The rate of interest payable by a co-operative in respect of a loan under section 268 during any period is:

(a) in the case of a co-operative with share capital:

(i) the rate (or, if there is more than one rate, at the higher or highest rate) of dividend payable in respect of that period on the share capital of the co-operative, or

(ii) if the rate of dividend payable in respect of that period has not been determined, at the rate (or the higher or highest rate) payable in respect of the immediately preceding period for which a rate has been determined, or

(iii) if a rate of dividend has never been determined in respect of the share capital of the co-operative, at the rate that the board of the co-operative considers reasonable, or

(b) in the case of a co-operative without share capital, at the rate that the board of the co-operative considers reasonable, or

(c) if the rules provide for a rate to be payable that is higher than the rate applicable under paragraph (a) or (b), at that higher rate.

(2) A member may agree to the rate of interest being less than that which would otherwise be payable under this section and may agree to no interest being paid.