(1) No society shall make a loan to-
(a) any person who is not a member;
(b) any member on the security of its own shares;
(c) any member on the security of a non-member;
Provided that a society may make loans to another society and/or nominal member as provided in the byelaws of the society.
(1-A) a society making a loan to its members who have been provided with "Bhoo-Adhikar Avam Rin Pustika" prescribed under section 114-A of the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959) shall enter all transactions of loans; advances and recoveries thereof in the aforesaid Bhoo- Adhikar Avam Rin-Pustika.
(1-B) Notwithstanding anything contained in this Act, rules made thereunder and byelaws of the society, in case of an omission in making entry of a loan or advance made to members of the society, it shall be presumed that no such loan or advances has been made unless proved otherwise by the society;
(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.
(4) If an officer or employee of a society entrusted with the work of making an entry of any transaction of loans, advances and recoveries thereof in the "Bhoo-Adhikar avam Rin-Pustika" referred to in sub-section (1-A) fails to make such entry in the said Pustika the Registrar may by order impose a penalty on him of any amount not exceeding rupees five hundred. The order imposing a penalty shall be enforced in accordance with the provisions of section 85.