Amendment status not verified — confirm the current text below against the official source.
Notwithstanding anything contained in any other law for the time being in force, the State Government may, subject to the rules,— (i) grant loans to, take shares in, or give financial assistance in any other form to, any co-operative society; (ii) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the State Government; and (iii) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society. 39.. (1) A co-operative society shall not make loans— (a) to any person other than a member; or (b) to a member in excess either of the maximum or of the normal credit determined by the society for that member in accordance with the rules, whichever may be prescribed. (2) Notwithstanding anything contained in sub-section (1), a co-operative society may make loans— (a) to any depositor on the security of its deposit, and (b) with the special sanction of the Registrar, to any other co- operative society against adequate security. (3) When a primary agricultural credit society makes loan for any short or medium term, the managing committee of such society may require the borrower— (a) to accept a portion of the loan in agricultural inputs and implements from the agricultural marketing society to which such society may be affiliated, (b) to place at the disposal of such marketing society for sale, so much of the agricultural produce raised by the borrower from his lands during the twelve months immediately succeeding the date of the aforesaid loan, as will be sufficient to repay the loan or pay the due instalment or instalments, where the loan is to be repaid in instalments, and (c) to authorise such marketing society— (i) to appropriate the sale proceeds or a part thereof, as is required, to satisfy such loan or due instalment or instalments, as the case may be, (ii) to return the surplus amount, if any, to the borrower, and (iii) to adjust accounts, in respect of the loan, with the aforesaid credit society, and 180 The West Bengal Co-operative Societies Act, 1973. XXXVIII of 1973.1 (Chapter 1V.—Duties and obligations of co-operative societies.—Sections 40, 41.) (iv) where the loan or all the instalments, where the loan is to be paid in instalments, is or are not fully satisfied by the sale proceeds of the borrowers' agricultural produce of the aforesaid period, to call upon and require the borrower to continue to place at the disposal of such marketing society the agricultural produce from his lands in such manner, at such place, at such time and in such quantities as such marketing society may think fit and just, till the loan or all the instalments, as the case may be, is or are fully satisfied from the sale proceeds thereof. Explanation. —In this sub-section, "short term" means a period not exceeding eighteen months and "medium term" means a period exceeding eighteen months and extending up to five years. (4) The State Government may, by general or special order, after giving any society likely to be affected thereby an opportunity of being heard, in such manner as may be prescribed, prohibit or restrict the lending of money on mortgage of immovable property by any society or class of societies other than a co-operative land development bank. (5) The State Government may, at any time for reasons to be recorded in writing, issue directives to any co-operative society or class of co-operative societies to restrict, regulate or modify policies relating to the grant of loans in the manner specified in such directives or to take any other action considered necessary and expedient in the interest of such society or class of societies or of the co-operative movement in general. (6) The State Government may modify or cancel any directions issued under sub-section (5), and in modifying or cancelling such directions may impose such conditions as it may deem fit.