Dealing in property subject to charge

(1) Any person who fraudulently removes any property comprised in a charge in favour of a credit union under section 42 Act from the place where such property was situated at the time of the execution of the charge, or who knowingly disposes of, or deals with or attempts to dispose of or deal with, such property without first obtaining in writing leave of the credit union, is liable on summary conviction to a fine of not less than five thousand dollars and to imprisonment for one year. (2) Where any person who has received a loan from a credit union is convicted of an offence under this section, there may be imposed on him, notwithstanding any penalty specified in sub-section (1), an additional penalty equal to such amount of the loan with interest as has not been repaid to the date of the conviction and the payment of such additional penalty shall discharge the liability of the borrower to repay the loan. (3) Where the magistrate’s court has imposed an additional penalty specified in sub-section (2) and such penalty is not paid, the court may order that the person convicted under this section and who has defaulted in the payment of the additional penalty be imprisoned for six months in respect of such default.