Amendment status not verified — confirm the current text below against the official source.
Restrictions on loans.—(1) A registered society shall not give loans— (a) to any person other than a member except with the general or special sanction of the Registrar : provided that a loan may be given to a depositor of the society on the security of his deposit, or (b) to a member in excess either of (he maximum or of the normal credit determined by the society for that member in accordance with its bye-laws: provided that in assessing normal credit the managing body shall take a full statement as to the member’s means of earning, (c) on the security of movable property or future movable property, unless the movable property is placed with the society, (d) on persona) security without sureties, unless the borrowing member has unencumbered immovable property or attachable funded assets sufficient to cover the loan and a full statement of such securities is submitted by the borrower and the truth of the statement is ascertained by the managing body. (c) on personal security with sureties, unless the borrowing member and his sureties together have unencumbered immovable property or attachable funded 'Substituted by the A.O., 195(1 for “Provincial”. assets sufficient to cover the loan and a full statement of such securities; submitted by the borrower and the sureties separately and the truth of th statements is ascertained by the managing body, (f) on personal security, with or without sureties, unless the loan is fot short period not exceeding the time required to reap the benefit of the loan as in no case exceeding three years. (2) (a) Notwithstanding the provisions of sub-clauses (l)(b), (d) and ( a loan may be given on personal security provided that the managing body the society is satisfied as to the credit of the borrower and has taken from If a scheme for the utilisation of the loan and has ascertained the truth of the s.tiL ments contained in the scheme and the bona fides of the borrowing member, (b) the resolution of the managing body granting a loan under this sect- shall contain the names of all assenting members ; provided that, if such names at omitted from the proceedings of the meeting, (he Chairman and Secretary slya be held jointly and severally responsible for the issue of the loan, (c) notwithstanding the provisions of sub-clauses (l)(b) to (f) and (2)(j and (b), a registered society may issue a loan on mortgage or valuable security;! (d) no person shall be accepted as a surety for any borrower unless is also a member of the same registered society. (3) A registered society, the primary object of which is not the issue c loans, shall open a separate accounting or finance or banking branch in accot ance with its bye-laws and frame rules for the conduct of business in sue! branch before it issues any Ioans and such rules shall first be approved by t’w Registrar.