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Section 43: Restrictions on borrowings by Co-operative Societies

Punjab Co-operative Societies Act, 1961 RulesUnion territory Rules of Chandigarh · 1961

(1) Subject Section 46 to the provisions of sub-rule (2), a Co-operative Society shall not receipt a n d 4 7 deposits and loans whether from members or non-members which exceed the limit fixed from time to time in a general meeting subject to the approval of the Registrar who may at any time reduce it.

(2) A Co-operative Society which accepts deposits and loans from me mber s o n ly a nd has no l ia b i l it y t o any pe r so n o t her t han t he me mber s , may receive such deposits and loans in excess of the limits referred to in subrule (1) if the excess amount is deposited in a Co-operat ive Bank to which it is a ffi l iat ed or is revest ed in Government Secur it ies spec if ied in Sect ion 20 o f t he I nd ia n T r ust s Act , 1882 , p ro vid ed t ha t t he amo unt so depo s it ed o r invest ed, o r any par t t hereo f, is no t withdrawn or otherwise ut ilised except fo r t he payment o f t he depo s it s accepted in excess o f t he a fo r esa id l imit .

(3) No Co-operative Society shall accept loans or deposits whether fro m member s or non-member s at a rate o f int erest which exceeds by more t han three percent t he int erest paid on s imilar t ypes o f deposit s or loans by t he Cent ra l Co-oper at ive Bank wit hin who se ar ea o f oper at io n t he so c iet y is s it uat ed except t hat t he Reg ist rar may by genera l o r spec ia l o rder grant exempt ion o r relaxat ion to any c lass o f societ ies o r ind ividua l soc iety fro m the operation of this rule.

Where this provision sits

ActPunjab Co-operative Societies Act, 1961 Rules
Section43
Marginal noteRestrictions on borrowings by Co-operative Societies
JurisdictionUnion territory of Chandigarh
StatusIn force as published by the source

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