(1) No society shall incur liability exceeding in total ten times the total amount of its capital employed:
Provided that in the case of Apex Co-operative Bank and Central Co-operative Bank, the liability shall not exceed twenty times and in case of co-ownership housing societies, co-partnership housing societies and co-operative house mortgage societies, the total liability shall not exceed twelve times the amount of its capital employed.
Explanation (I): For the purpose of this rule, ‘capital employed’ means paid up share capital, accumulated profits, reserve fund, building fund, other than non-performing assets minus accumulated losses and intangible assets.
(II): For the purpose of this rule, the total loan taken, deposit accepted, creditors for goods and services however, shall not include the amount invested in Government securities or an amount deposited in Central or State Co-operative Banks.
(III): In calculating the total amount of liability for the purposes of this sub-rule, in the case of any society or class of societies the bye-laws of which permit borrowing or granting credit facilities on the pledge of agricultural produce or other goods a sum equal to the amount borrowed by such society or class of societies, on the security of agricultural produce or other goods of such society or its members shall be excluded from the amount of the total liability under this rule.