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 registered society may make loans to another registered society: Provided further that a registered society may make such loans as may be specified in the by-laws to any of its paid employees. (2) Notwithstanding anything contained in sub-section (1)- (a) a registered society may make a loan to a depositor on the security of his deposit; 81 (b) a financing bank may provide overdraft to or discount bills and cheques of depositors subject to such limits and conditions as may be prescribed by the Government; and (c) a financing bank may advance loans on the pledge of gold jewels subject to such limits and conditions as may be prescribed by the Government. (3) If in the opinion of the Government, it is necessary in the interest of the society or societies concerned to do so, the 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. (4) 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 by-laws with the approval of the financing bank, by general or special order, regulate the extent, conditions and manner of making loans by any society or class of societies to its members or other societies.