(1) No society shall make a loan to any person other than a member or on the security of its own shares, or on the security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may 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 his 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 :
6[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 by-laws, with the approval of the Apex 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:]
7[Provided further that, nothing in this section shall apply to the loan making policy made by the co-operative credit structure entity. However, such entity shall adopt its own policy in conformity with 8[guidelines of the Reserve Bank of India or National Bank.]] 9[44A. Limit on interest in certain cases.— Notwithstanding anything contained in any agreement or any law for the time being in force, a society 10[(including a co-operative bank and a Co-operative Agriculture and Rural Multipurpose Development Bank)] shall not for any loan (including rehabilitation loan but excluding long-term loan for irrigation or agricultural development purposes or loan exceeding 11[rupees ten thousand] for non-agricultural 12[* *] purposes) given by it to any member (including a member-society) for a period not exceeding 15 years, whether the loan was given before or is given after the commencement of the Maharashtra Co-operative Societies (Second 1 This proviso was added by Mah. 34 of 2001, s. 4.
2 This word was inserted by Mah. 16 of 2013, s. 17(b)(i).
3 This proviso was added by Mah. 11 of 2008, s. 8(b).
4 These words were substituted for the words “Reserve Bank of India guidelines” by Mah. 16 of 2013, s. 17(b)(ii).
5 Sub-section (3) was added by Mah. 11 of 2008, s. 8(c).
6 This proviso was added by Mah. 33 of 1963, s. 9.
7 This proviso was added by Mah. 11 of 2008, s. 9.
8 These words were substituted for the words “the Reserve Bank of India guidelines” by Mah. 16 of 2013, s. 18.
9 Section 44A was substituted by Mah. 20 of 1986, s. 19.
10 These brackets and words were substituted for the brackets and words “(including a Co-operative Bank but excluding an Agriculture and Rural Development Bank)” by Mah. 41 of 2005, s. 3(a).
11 These words were substituted for the words “rupees three thousand” by Mah. 16 of 2013, s. 19(a).
12 The words “or commercial” were deleted by Mah. 16 of 2013, s. 19(b).
1961 : Mah. XXIV] The Maharashtra Co-operative Societies Act, 1960 39 Amendment) Act, 1985 (Mah. XX of 1986), recover, in any manner whatsoever, on account of interest, a sum greater than the amount of the principal of the loan:]
1[Provided that, nothing in this section shall apply to a loan exceeding one lakh rupees given by a Co-operative Agriculture and Rural Multipurpose Development Bank to any member.]