Amendment status not verified — confirm the current text below against the official source.
Regulation of loan making policy.— (1) No society shall make a loan to any person other than a member, or on the security of its own shares, or on the security of any person who is not a member: Provided that, with the special sanction of the Registrar, a society may make loan to another society (2) Notwithstanding anything contained in the foregoing subsection, a society may make a loan to a depositor on the security of his deposit. (3) If in the opinion of the State Government, it is necessary in the interest of the society or societies concerned to do so, the State Government may, by general or special order, prohibit, restrict or regulate the lending of money by any society or class of societies on the security of any property : Provided that, the Registrar may, for ensuring safety of the funds of the society or societies concerned, for proper utilisation of such funds in furtherance of their objects and for keeping them within the loan making limits laid down in the rules, and bye-laws, with the approval of the Apex Bank, by general, or special order, regulate further the extent, conditions and manner of making loans by any society or class of societies to its members or other societies. 44-(A) Limit on interest in certain cases.— Notwithstanding anything contained in any agreement or any law for the time being in force, a society (including a Co-operative Bank but excluding an Agriculture and Rural Development Bank), shall not for any loan (including rehabilitation loan but excluding long term loan for irrigation or agricultural development purposes or loan exceeding rupees three thousand for non-agricultural or commercial purposes) given by it to any member (including a member- society) for a period not exceeding 15 years, whether the loan was given before or is given after the commencement of the Maharashtra Co-operative Societies (Second Amendment) Act, 1985, recover, in any manner whatsoever, on account of interest, a sum greater than the amount of the principal of the loan.