Why is a guarantor or security needed?
For larger loans the credit committee may insist on other security such as assignable insurance policies or a legal charge on property. Guarantors may also be sought by the credit committee, should the member fail to repay the loan, there are a legal obligation on the guarantor to repay the loan himself or herself.
What is a Credit Agreement?
A credit agreement, once signed, is a legally binding contract between the member taking out a loan and Killarney Credit Union. The agreement contains the terms and conditions under which the loan will be issued and under which it must be repaid by the member. By signing the credit agreement, a member agrees to be bound by its terms and conditions.