i) Failure to pay the Share money or other amount due from member to the State Bank within 2 months from the date the instalment falls due.
ii) an action which may be held by the Board of Directors to be dishonest or contrary to the interest or reputation of the State Bank.
b) any person who has been expelled from the membership shall have a right to appeal to The Registrar within 60 days of the communication of such order.
11. No member shall be expelled except by a resolution passed in a General Body Meeting attended by at least two third members of the State Bank. The General Body shall record the reasons expelling a member which shall be communicated to the 03 member concerned. Such a member shall have a right to appeal to the Registrar within 60 day of the communication of decision regarding expulsion.
12. a) The State Bank may create a 'share transfer' fund out of its earned or profits and the Board may allow withdrawal of shares keeping in view the overall interests of the Bank and after having prior approval of the Registrar in this behalf. Such withdrawal of shares at any time shall not exceed five percent of the aggregate paidup share capital of the Bank excluding Government contribution as it stood on 31 st March of the preceding year subject to the amount available in the share transfer fund.
b) Appeal against the termination of membership shall lie to the Registrar within 60 days of the date of communication of such order.
13. Every Member on admission shall pay an admission fee of Rs. 1000/-.
14. Subject to the provisions of bye-law 12 no shares shall be withdrawn but shares may be transferred to an existing member or to an institution duly qualified for membership and approved by the Board of Directors.
LIABILITY
15. The liability of a share holder for deficit in the asset of the State Bank, in the event of its being wound up, shall be limited to the share capital subscribed by the share holder concerned.
FUNDS
16. The fund of the State Bank may be raised by :
i) Shares;
ii) Debentures;
04 iii) Grants, subsidies and fees;
iv) Deposits;
v) Loan from the Government, Reserve Bank of India, NABARD and any other Financial Institution or Bank.
vi) Such others means as are approved by the Registrar.
17. The authorised share capital of the State Bank shall be 100 Crore and shall consist of ten lac shares of the value of Rs. 1000/-each.
18. Each member shall take atleast one share of the value of Rs.
1000/- payable in full on allotment.
TRUSTEE
19. The Registrar shall be the Trustee for the purpose of securing the fulfilment of the obligations of the State Bank of the holders of debentures issued by the State Bank. The Powers and functions of the Trustee shall be governed by the instrument of trust executed between the State Bank and the Trustee. Any term of the instrument may be modified with the mutual consent of the State Bank and the Trustee. All the property of the State Bank on the security of which debentures are issued shall vest in the trustee and the holders of debenture shall have a floating charge on all mortgages and amounts remaining in the hands of the Board or the trustee and on the properties of the State Bank.
DEBENTURES
20. With the previous sanction of the Trustee, the Board may issue debentures of one or more denominations for such period not exceeding 30 years as it may deem expedient of the security of the mortgages and other assets transferred or assigned to it by the borrower members and of the properties of the State Bank.
The debentures shall bear such interest as may be fixed by the 05 Board of the State Bank with the approval of the Trustee.
21. The total borrowing of the State Bank by the issue of the debentures or otherwise shall not exceed, at any times, 80 times the paid up share capital plus reserved fund.
22. a) The debentures may- not be redeemed for such periods as may be fixed by the Board of the State Bank from the date of issue.
b) The Board may also issue debentures reserving to itself the right to call in any debentures at any time in advance of period fixed for redemption by giving not less than three months notice to the debenture holder(s). No redemption of such debentures before the due date would be made by the Board without the previous permission of the Trustee. The Board shall, whenever called upon by the Trustee, at any time before the expiry of the period fixed for the debentures, redeem any or all of the debentures after giving the notice prescribed in this bye-law. The Trustee can consent to the redemption of the debenture before the maturity only in accordance with the advice of the Reserve Bank. Provided that the special development debentures which are issued by the bank under schemes approved by the NABARD may be redeemed before maturity with the consent of the said body and no such notice or consent of the Trustee or the Reserve Bank shall be necessary for such redemption.
23. No debenture holder shall claim the payment of the value of his debenture before the expiry of the period for which the be debenture was issued.
24. a) Every debenture holder whose debenture is to be redeemed on notice under bye-law No 22 (b) shall be paid 06 the sum for which the debenture was issued together with all interest due thereupon upto the date of redemption The debenture holder must hand over the debenture to the bank, in original, on the expiry of the term mentioned in the notice. If the debenture or debentures are not handed over till the expiry of the term as desired in the notice, the holder shall have no claim upon the State Bank for the interest accruing after the said period.
b) The debentures shall be signed and executed by the President/Chairman or Managing Director. The Bank shall have a special seal to be used for debentures and the seal shall remain in the custody of the Managing Director.
25. The State Bank shall create a sinking fund for redemption of debentures issued by it except special development debentures required to be redeemed annually. The contribution to the fund shall be made by the State Bank in such manner as is approved by the Trustee from time to time.
LOANS
26. i) Loans shall be given to member, but no member can claim a loan as a matter of right.
ii) All applications for loans shall be made to the Managing Director of the State Bank. Every application shall be accompanied by such documents as may be approved by the Registrar. All such applications shall be disposed of by the Managing Director. The Managing Director may reject a loan application without assigning reasons therefor.
27. a) No member shall at any time be indebted to the State Bank by way of principle in excess of 50 times the total of the paid up share capital and share purchase deposit.
07 b) Nothing contained in Bye law 27, relating to the ratio to be maintained between the paid up share capital including share purchase, deposit and loan advanced to the members, shall apply in respect of loans advanced to implementation of Land Improvement Schemes proposed under the Punjab Land Improvement Schemes Act 1963.
c) Notwithstanding anything contained in byelaw 27, the R.C.S. may, in consultation with the State Bank relax any condition for raising any loan by a member from the State Bank under A.R.C. scheme relating to common work.
28. The rate of interest at which the State Bank may give loans to its members shall be such as is determined by its Board from time to time.
MANAGEMENT