(1) Subject as follows, a credit union may make a loan, upon such security (or without security) and terms as the rules of the credit union may provide, to-

(a) a member, or

(b) another credit union (whether or not a member).

(1ZA) Where a loan is made under subsection (1)(b) to a credit union that is not a member of the lending credit union, the maximum period within which the loan must be repaid is six months.

(1A) A credit union may only make a loan to a corporate member if -

(a) the credit union's rules provide that it may make loans to corporate members, and

(b) making the loan would not result in the aggregate of the outstanding balances on loans made by the credit union to corporate members exceeding ten per cent of the aggregate of the outstanding balances on all loans made by the credit union to members, or such higher percentage as may be specified. 

(1B) Subsection (1) does not apply in relation to a member holding only deferred shares.