Amendment status not verified — confirm the current text below against the official source.
Mobilisation of funds - (1) A Co-operative Society may mobilise funds in the shape or share capital, deposits, debentures, loans and other contributions from its members to such extent and under such conditions as may be permissible under the bye-laws of the Co-operative Society: Provided that, at the time of dis-solution of a Co-operative Society the amounts due to the members shall be settled only after the settlement of dues to others. 1[ Provided further that in the case of a co-operative society, other than a co-operative bank, deposits shall be mobilized only from those members who have voting rights in that co-operative society.] 2[(1-A) Notwithstanding anything contained in the sub-section (1), a co- operative bank may mobilize funds in the shape of deposits, debentures, loans and other contributions from any person other than its member, to such extent and under such conditions as may be permissible under the bye-laws, subject to provisions of the Banking Regulation Act, 1949 (Central Act 10 of 1949).] (2) A Co-operative Society may also mobilise funds in the shape of 3[****], debentures, loans and other contributions from other individuals and institutions, to such extent and under such conditions as may be permissible under the bye-laws; Provided that a Co-operative Society shall not accept share capital from the Government but may accept other funds or guarantee from the Government on such terms and conditions as are mutually agreed upon through a memorandum of understanding. 4[Explanation: For the purpose of this section a "co-operative bank" means a society registered under this Act, which is doing the business of banking as defined in clause (b) of sub-section (1) of Section 5 of the Banking Regulation Act, 1949.]