### Credit Unions Ordinance 《儲蓄互助社條例》

33. Powers and duties of the board
(1) The board of a credit union shall have the general management of the affairs, funds and records of the credit union and, except where a contrary intention appears, shall exercise and perform all the powers and duties conferred and imposed by this Ordinance and in particular shall—
(a) act and make decisions upon all applications for membership of the credit union;
(b) determine the maximum number of shares which may be held by any one member, which shall not without the permission of the board exceed twenty per cent of the shares of the credit union and which shall apply to all members;
(c) determine the length of notice (which shall not exceed 90 days) required from a member of his intention to transfer or withdraw shares; (Amended E.R. 7 of 2020)
(d) determine the maximum length of time in respect of which loans made by the credit union to its members may remain outstanding, in whole or in part;
(e) subject to section 40(2), determine the maximum amount of loans which may be made to a member, with security or without security; (Amended E.R. 7 of 2020)
(f) subject to section 41, determine the rates of interest payable during any specified period on such loans;
(g) fix from time to time the amount of any surety bond which shall be required in respect of any officer or member concerned with the receipt, management or expenditure of money for or on behalf of the credit union, and for such purposes may authorize the payment of any premium on such bonds by the credit union;
(h) appoint persons to act, under the direction of the board, in the furtherance of the education of persons in the objects and practices of credit unions.
(2) The board shall exercise and perform such other powers and duties as may be conferred or imposed upon it by the by-laws.

34. Powers and duties of supervisory committee
In addition to such powers and duties as may be conferred or imposed by the by-laws, the supervisory committee—
(a) shall carry out an examination of the affairs and audit the accounts of the credit union and prepare a balance sheet on the accounts at least once in each quarter of every financial year;
(b) shall make or provide for an annual audit of the accounts of the credit union and submit a report thereon together with a balance sheet to the annual meeting of the credit union for its approval;
(c) may, if it deems it to be necessary in the interests of the credit union, by the unanimous vote of all its members suspend any director of the board or any member of the credit committee from the functions of his office and call a special meeting of the credit union to consider a report of the committee on such suspension;
(d) may call a special meeting of the credit union to consider any matter which in the opinion of the committee ought to receive such consideration.

### Credit Unions Ordinance 《儲蓄互助社條例》

35. Powers and duties of credit committee
In addition to such powers and duties as may be conferred or imposed by the by-laws, the credit committee shall have general supervision over all loans made to the members of the credit union and, subject to section 33(1)(d), (e) and (f) shall, in respect of every such loan— (Amended E.R. 7 of 2020)
(a) fix the amount thereof;
(b) decide on the security (if any) required therefor; and
(c) determine the conditions for repayment thereof.

36. Approval of loans
Save as provided in section 38, no loan shall be made to a member of the credit union except with the prior and unanimous approval of the members of the credit committee.

37. Acceptable security for loans
In addition to or in lieu of any other form of security, the credit committee may in its discretion accept an endorsement of a note by a member as guarantor or a pledge of shares by a member as security for a loan.

38. Loan officers
(1) The credit committee, with the prior approval of the board, may appoint members of the credit committee as loan officers to act under the committee’s supervision.
(2) Notwithstanding anything contained in section 36, a loan officer may make loans to members of the credit union in the manner provided in the by-laws.

39. Purposes of loans
No loan shall be made to a member of a credit union under this Ordinance other than for provident or productive purposes.

40. Restrictions on loans
(1) Save as is provided in section 10(a) and (b), no credit union shall make a loan to any person who is not a member thereof. (Amended E.R. 7 of 2020)
(2) A loan shall not be made by a credit union to a member thereof if this would cause the member to owe the credit union more than ten per cent of the aggregate amount of the share balance, the reserve fund and any other funds of the credit union.

41. Rates of interest
(1) The interest rate on any loan made by a credit union to a member thereof shall not exceed one per cent per month on the total of the unpaid balance of any such loan plus all charges (if any) made by the credit union in making the loan.
(2) The interest rate determined in respect of loans made to members of a credit union during any specified period shall be the same for all such loans.

### Credit Unions Ordinance 《儲蓄互助社條例》

42. Unanimous vote required for loans to directors or committee members
No director or member of the supervisory committee or the credit committee may obtain a loan from the credit union in excess of the value of his shares except upon the unanimous vote of a majority of the board, the supervisory committee and the credit committee, sitting together, such director or member not being present at the taking of the vote.

43. Borrowing powers
(1) Subject to this section, a credit union may borrow money for the carrying out of its objects.
(2) No money shall be borrowed by a credit union save upon a resolution of its board.
(3) A credit union may not borrow money so that its total indebtedness would in consequence exceed fifty per cent of its share balance.
(4) A credit union may not borrow money so that its total indebtedness would in consequence exceed twenty-five per cent of its share balance, except in addition to the board’s resolution, upon a resolution passed by not less than three-fourths of the members, present and qualified to vote, at a special meeting of the credit union called for the purpose or if sanctioned in writing by not less than two-thirds of the total number of the members of the credit union qualified to vote.

44. Power to mortgage, etc. as security for borrowed money
A credit union may mortgage, charge or pledge any of its property to secure any liability for the repayment of money borrowed in accordance with section 43.