(1) A registered society shall not make a loan to any person other than a member:
Provided that, with the general or special sanction of the Registrar, a registered society may make loans to another registered society.
(2) Save with the sanction of the Registrar, a registered society shall not lend money on the security of movable property other thar agricultural produce.
Loans.
712 G. of I. Ex.—2.
6« THE GAZETTE OF INDIA EXTRAORDINARY [PART H
(3) Notwithstanding anything contained In sub-sections (1) and
(2), A registered society may make a loan to a depositor en the security of his deposit.
(4) The Administrator may, by general or special order, prohibit or restrict the lending of money on mortgage of immovable property to any registered society or class of registered societies.
Restriction* on receipt <J of deposits and loans.
27. A registered society shall receive deposits and leans only to such extent and under such conditions as may be prescribed by the rules or by-laws of the society.
Investment of funds.
28. A registered society may invest or deposit its funds in such manner as may be specified In this behalf by rules.
Funds not to be divided among meroberi.
Z9. No part of the funds of a registered society shall be divided by way of bonus or dividend or otherwise among its members:
Provided that payment may be made to a mpmber for the work done by him as Secretary or as clerk on such scale as may be prescribed by the by-laws:
Provided also that after at least one-fourth of the net profits In any year has been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made—
(a) as a bonus to a member for any specific service rendered by him to the society including work done as Secretary or as clerk; and
(b) among the members to such extent and under such conditions as may be prescribed by the rules or by-laws.
Contribution to charitable purpose*, j SG. Any registered society may, after one-fourth of the net profits in any year has been carried to a reserve fund, contribute an amount not exceeding ten per cent, of the remaining net profits to such poor fund as may be constituted by the Administrator.
Audit. 31. (1) The Registrar shall audit or cause to be audited bv some person authorised by him by general or special order In writing in this behalf the accounts of every registered society once at least in every year.
(2) The audit under sub-section (1) shall Include an examination of overdue debts, If any, the verification of the cash balance and securities and a valuation of the assets and liabilities of the society.
(3) The Registrar or the person authorised bv Mm under subjection (1) shall, at all reasonable time1;, have free access tr> the books, accounts, documents, securities, cash -ind other properties belonging to or in the custody qf the society and may summon any person In &CC. 1] THE GAZETTE OF INDIA EXTRAORDINARY ^53 possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same at any place at the headquarters of the society or any branch thereof.
(4) Every officer or member of the society shall furnish such information in regard to the transactions and working of the society as the Registrar or the person authorised by him under sub-section
(1) may require.
CHAPTER VI INQUIRY AND INSPECTION