AUSTRALIAN CAPITAL TERRITORY

CO-OPERATIVE SOCIETIES ORDINANCE 1966

Explanatory Memorandum

No. 18 of 1966

	Under the existing legislation the maximum loan that may be made to, or guaranteed for, a member by a registered credit society is $600.  The changing value of money has made this upper limit unrealistic in that the amount has proved inadequate for the objects of the societies.  Furthermore, this value does not take into consideration the expansion of the activities of credit societies in the Australian Capital Territory, the consequent experience gained in management and the increasing amounts available for investment in credit societies.

	The Co-operative Societies Ordinance 1966 raises the maximum value of an unsecured loan to $800.  It further provides that any additional loan must be secured on the basis of paid up share capital and/or other forms of security acceptable to the credit society, the maximum additional amount being $1200.

	The opportunity has been taken to alter existing monetary references to references to equivalent amounts of money expressed in decimal currency.

        J. D. A.
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(Minister’s Initials)