(1) A credit union may charge interest on loans made to its members under section 35 subject to the following conditions -

(a) the interest on a loan shall not at any time exceed the rate, specified in the order made under subsection (3) applicable to -

(i) the credit agreement under which the loan is made, or

(ii) where there is no credit agreement, the loan;

(b)[deleted]

(c)[deleted]

(2) If a credit union knowingly charges or accepts interest on a loan at a rate greater than that permitted under this section -

(a) all the interest agreed to be paid by the member shall be deemed to have been waived by the credit union; and

(b) any interest paid on the loan shall be recoverable summarily by the member (or his personal representative) as a simple contract debt.

(3) The Minister may, after consultation with the Advisory Committee and such other body as the Minister considers appropriate in the circumstances, by order specify a rate of interest for the purpose of subsection (1)(a).