(1) No society other than those referred to in rule 62 and 63 with limited liability shall, without the previous sanction of the Registrar, incur liability exceeding in total ten, times the total amount of its paid up share 1 Added by Notification No. F. 12(1) Coop/2011 dated 14.9.2011, pub. in Raj. Gazette E.O. Part 4
(x)(I) dated 19.9.2011, with immediate effect.
91 capital, accumulated reserve fund and building fund minus accumulated losses:
Provided that central banks and urban banks, shall not except with the previous sanction of the Registrar, incur liabilities exceeding twelve times the total of their paid up share capital, accumulated reserved fund and building fund minus accumulated losses.
Explanation.- In calculating the total amount of liability for the purpose of this sub-rule, in the case of any society or class of societies the bye-laws of which permit borrowing or granting credit, facilities on the pledge of agricultural produce or other goods, specified in that behalf by the Registrar, by general or special order, or against mortgage of movable property a sum equal to the amount borrowed by such society or class of societies, on the security of agricultural produce or other goods of such society of its members, shall be excluded from the amount of the actual liability under this rule.
(2) Any society may incur liabilities in excess of the limit specified in sub-rule (1) by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the society but shall be invested in Government Securities which in the case of Central Banks, shall be deposited with the Rajasthan State Cooperative Bank and, in case of other Co-operative Banks, with the Central Banks. No society shall borrow against such securities.