Amendment status not verified — confirm the current text below against the official source.
Restrictions on loans.-(1) No society shall make a loan to- (a) any person who is not a member; (b) any member on the security of its own shares; (c) any member on the security of a non-member; Provided that a society may make loans to another society and/or nominal member as provided in the byelaws of the society. (1-A) a society making a loan to its members who have been provided with "Bhoo-Adhikar Avam Rin Pustika" prescribed under section 114-A of the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959) shall enter all transactions of loans; advances and recoveries thereof in the aforesaid Bhoo- Adhikar Avam Rin-Pustika. (1-B) Notwithstanding anything contained in this Act, rules made thereunder and byelaws of the society, in case of an omission in making entry of a loan or advance made to members of the society, it shall be presumed that no such loan or advances has been made unless proved otherwise by the society; (2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit. (4) If an officer or employee of a society entrusted with the work of making an entry of any transaction of loans, advances and recoveries thereof in the "Bhoo-Adhikar avam Rin-Pustika" referred to in sub-section (1-A) fails to make such entry in the said Pustika the Registrar may by order impose a penalty on him of any amount not exceeding rupees five hundred. The order imposing a penalty shall be enforced in accordance with the provisions of section 85.