Under penalty of nullity of the agreement, directors and employees as well as their spouses, ascendants or descendants and other intermediaries, are prohibited from contracting any loans, in any form whatsoever, from the cooperative with a board of directors, to have the latter warrant an overdraft facility to the current account as well as have the cooperative provide guarantee or security for their commitments to third parties.
This prohibition shall not apply to legal entities which are members of the board of directors.
However, their permanent representative, when acting in an individual capacity, shall also be governed by the provisions of paragraph 1 of this Article.
When the cooperative with a board of directors carries on the business of a bank or a financial institution, or operates mainly in the field of savings and credit, this restriction shall not apply to current operations concluded under normal conditions.
Paragraph 5: Other powers of the board of directors
Unofficial translation
Transcription: Spot-checked
In force from 16-05-2011
Source page 79
The document's transcription was spot-checked against the supplied source; this does not confirm a line-by-line review of every provision.
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