(1)A Society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as may be prescribed:
(2) The total amount of deposits received and/or loans raised during any financial year shall not exceed ten times of the paid-up share capital, reserve fund, building fund and accumulated profit less accumulated loss, if any, of the society:
Provided that, with prior written approval of the Registrar, the society may enhance the limit of borrowings upto twenty-five times of it’s paid-up share capital, reserve fund, building fund and accumulated profit less accumulated loss, if any further subject to the condition that the society fulfils all the financial parameters of a healthy co-operative credit society as provided under section 76 C.
(3) A mutually aided society shall not accept share capital from the Government but may accept other funds or guarantee from the Government on such terms and conditions as are -22- mutually agreed upon through a memorandum of understanding.
(4) A society may accept funds from the Government or other financing institution on such terms and conditions as are mutually contracted upon. Such conditions may include the right of the Government or other financier to nominate its representative on the board of directors of the society, subject, however, to the restriction that such representative shall have the right to vote of nominated director shall however be restricted only on the subject matter of advice and on any financial matters going against society. Such nominated director shall also have the right to put dissent which shall be duly recorded in the minutes of the meeting of the Board of Directors.]