Amendment status not verified — confirm the current text below against the official source.
Restrictions on loans.-(1) A society shall not make a loan to any person or a society other than a member: 51b[51a[Provided that the above restriction shall not be applicable to the Kerala State Co-operative Bank:] Provided further that, with the general or special sanction of the Registrar, a society may make loans to another society.] (2)Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit. 51[(3) Granting of loans to members or to non-members under sub- section (2) and recovery thereof shall be in the manner as may be specified by the Registrar.]