Section 27: Restrictions on grant of loans by a Co-operative Society
The Karnataka Co-operative Societies Rules, 1960.State Rules of Karnataka · 1959
(1) No Co-operative Society shall grant loans or make advances against the security of its own shares.
(2) The total amount of loans granted by a Co-operative Society to the members of its 4[Board] of Management and outstanding against them in the aggregate shall not at any time exceed 5[ten per cent] of the total of all loans granted by the society and outstanding against its members at any time.
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