Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The rules of an organisation must provide that a loan, grant or donation of an amount exceeding $1,000 must not be made by the organisation unless the committee of management:
(a) has satisfied itself:
(i) that the making of the loan, grant or donation would be in accordance with the other rules of the organisation; and
(ii) in the case of a loan--that, in the circumstances, the security proposed to be given for the repayment of the loan is adequate and the proposed arrangements for the repayment of the loan are satisfactory; and
(b) has approved the making of the loan, grant or donation.
(2) In spite of subsection (1), the rules of an organisation may provide for a person authorised by the rules to make a loan, grant or donation of an amount not exceeding $3,000 to a member of the organisation if the loan, grant or donation:
(a) is for the purpose of relieving the member or any of the member's dependants from severe financial hardship; and
(b) is subject to a condition to the effect that, if the committee of management, at the next meeting of the committee, does not approve the loan, grant or donation, it must be repaid as determined by the committee.
(3) In considering whether to approve a loan, grant or donation made under subsection (2), the committee of management must have regard to:
(a) whether the loan, grant or donation was made under the rules of the organisation; and
(b) in the case of a loan:
(i) whether the security (if any) given for the repayment of the loan is adequate; and
(ii) whether the arrangements for the repayment of the loan are satisfactory.
(4) Nothing in subsection (1) requires the rules of an organisation to make provision of the kind referred to in that subsection in relation to payments made by the organisation by way of provision for, or reimbursement of, out - of - pocket expenses incurred by persons for the benefit of the organisation.
(5) In this section, a reference to an organisation includes a reference to a branch of an organisation.
(6) For the purposes of the application of this Division to a branch of an organisation, the members of the organisation constituting the branch are taken to be members of the branch.