(1) No society shall make loan to any person other than a member, or on the security of its own shares, or on security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may THE HIMACHAL PRADESH CO-OPERATIVE SOCIETIES ACT, 1968 35 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 the deposit.
(3) If, in the opinion of the State Government, it is necessary in the interest of the society or societies concerned to do so, the State 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:
Provided that the Registrar may, for ensuring safety of the funds of the society or societies concerned for proper utilisation of such funds in furtherance of their objects and for keeping them within the loan making limits laid down in the rules and bye-laws, in consultation with the financing bank, by general or special order, regulate further the extent, conditions and manner of making loans by any society or class of societies to its members or other societies.