Section 5Part 3 — Rules and Certification
Maximum interest and fines
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No society shall —
charge interest on a loan to any member of the society at a rate in excess of twelve point five per cent per annum; or
impose any fine or penalty upon any member of the society who is in arrears in respect of the payment of any subscription to any share in the society or in respect of the payment of any interest on, or the repayment of any principal of, any loan from the society, in excess of two per cent or a proportionate part thereof, per month or part of a month on any such arrears so, however, that no fine or penalty shall exceed twenty per cent.
No society shall by its rules provide for or permit the charging of interest or the imposition of fines or penalties in excess of the rates set out in subsection (1), and so much of the rules of any society as provide for or permit the charging of interest or the imposition of fines or penalties in excess of the said rates shall be deemed to have been amended so that the maximum interest, fines or penalties, which may be charged or imposed shall be the maximum interest, fines or penalties, set out in subsection (1).