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When a member applied for loans during this period, he needed two other members to stand as sureties. The surety was subjected to risk because if his fellow member defaulted on his loan, the surety would be obligated to pay up. There were cases where members standing as sureties for fellow members ended up having to pay for the loans that they never took. The effect was a decrease in membership as members with high savings resigned and other officers refused to join the Police Co-operative. In order to rectify the problem, the Board of Directors met to find a solution. After much deliberation, they decided to try negotiating with several insurance agencies for insurance on loan default cases. Insurance agencies however were not ready to insure the loans.
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Tanjong Pagar Police Station (Feb 54) |
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