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. (3) The proceedings with regard to loans at committee meetings shall be kept secret, and, if in the opinion of a majority of the members of the committee, a member of the committee or officer of the registered society infringes this rule he shall forthwith cease to be a member of the committee or officer of the registered society or both, as the case may be. This rule shall apply to the Secretary notwithstanding rule 56 (6) of these Rules.