(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 society may make loans to another society :
(2) Notwithstanding anything contained in the foregoing sub-section a society may make a loan to a depositor on the security of his deposit.
(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.
46. Same as is provided in thisAct, the transaction of a society with persons other than members, shall be subject to such restrictions, if any, as may be prescribed.
47. A society shall have a charge upon the share or interest in the capital, and on the deposits, of a member or past member or deceased member, and upon any dividend, bonus or profits payable to any such member, in respect of any debt due, from such member or his estate to the society ; and the society may set-off any sum credited or payable to such member in or towards payment of any such debt :
Provided that no Co-operative bank shall have a charge upon any sum invested with it by a society out of the provident fund established by it under section 72 or its reserve fund ; and no co-operative bank shall be entitled to set-off any such sum towards any debts due from the society.
Restrictions on borrowings.
Regulation of loan making policy.
Restrictions on transaction with persons other than members.
Charge and set-off in respect of share or interest of member.
APCS ACT 1978 21