Dar Es Salaam, Tanz - SNHU Academic Archive - Southern New ...

126development policy-200 2 an d Bankin g an d Financia l institutio n Act-1991 . Afte runderstanding the external guiding rules and regulations KK will be able to develop theirown interna l tool s (policies) , e.g. administrative , financial, credi t managemen t an dinternal control , utilizin g th e basi c principle s o f microfinanc e an d SACCO s bes tpractices. Current constitution should also be updated. As mentioned in (b) above, thedocuments needed are technical, so professional expertise is required in developing themdepending much on the inputs from KK members.( d) Membership monitory and evaluation.It should be clearly stated in the By-laws the benefit s an d limitations of all registere dmembers. Afte r this exercise is done, it will be possible to evaluate all membershi p toensure that all of them abide to the requirement of the cooperative Act, rules , and KKBy- laws . Time ca n be se t fo r suspendin g defaultin g member's dividend s and giveincentive to members who loo k large loans and returned them within the agreed time.(e) Loans guarantors limitations.Normally, a member who takes a loan is guaranteed b y two or three other members, butthe status for these guarantors' loan s are not provided in the By-law. It is suggested thatthere must have a provision in the By-laws limiting those who guarantee barrowers. Forexample, if a person borrows, each guarantor's portion added with his/her own loans , thebalance should not exceed the above limit of 3 times his/her savings and contributions.