(1) A Society shall not advance a loan to any person other than a member except with the general or special sanction of the Registrar.
(2) Notwithstanding anything contained in Sub-Section (1), a Society may advance a loan to a depositor on the security of his deposit.
1[59-A. Restriction on Interest :– Notwithstanding anything contained in any law or agreement for the time being in force, a Society shall not charge on account of interest on any short term loan, whether advanced before or after the commencement of the Orissa Co-operative Societies (Amendment) Act, 1982 (Orissa Act 19 of 1983) a sum greater than that of the principal.
Explanation :– For the purpose of this Section the expression "short term loan" shall mean a loan repayable within a period of fifteen months.]