Loan Deliquency

13.1. In case a loan is not repaid in a particular month, the Society shall inform the loanee immediately in writing with a copy to each guarantor.
13.2. If no repayment is effected during the second month, the guarantors shall be informed of this fact and be notified that they will be called upon to honor their obligations if no repayments are effected at the end of the third consecutive month.
13.3. After 90 days, the loan is said to be in default, and the entire balance of the loan becomes due. All deposits owned by the member and any interest on deposits due to the member will be used to offset the balance owed.
13.4. Any loan balance remaining thereafter will be recovered from the deposits of the guarantors immediately.
13.5. The member may present a repayment proposal to the management committee for consideration.
13.6. The member will be liable for any costs incurred in collection of the loan balance and accumulated interest.

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