(1) This section applies where -

(a) a credit union enters into an agreement mentioned in section 11E(1) with a member of the credit union, and

(b) at the time the agreement is entered into, the member's paid- up shareholding in the credit union is equal to or greater than the member's total liability (including contingent liability) to the credit union.

(2) On the application of the member to the credit union, the agreement is to be treated for the purposes of this Act as a secured agreement.