(1) A declaration to be made under clauses (a) and (b) of section 50 shall be in Form “O”.
(2) A register of such declarations shall be kept by the society in Form “P”.
(3) A charge on any immovable property created by a member in favour of a society for amounts borrowed or likely to be borrowed by him, from time to time, shall, subject to the provisions of clauses (c) and (d) of section 50 continue in force till the person creating the charge ceases to be a member of the society.
(4) Where a member of a society creates a charge on his land or on his interest in any land as a tenant by declaration under section 50, the society may, if compelled to make use of such property for the recovery of the loan granted to such member against the security of such property or interest in the property, utilise the whole or any portion of such property which may be sufficient to satisfy the amount due with interest and any incidental expenses incurred in that connection.
(5) Where a charge is created by a member on his land or on his interest in any land as a tenant by declaration under section 50, the society shall record or cause to record such particulars of charge in the Record of Rights maintained by the Tehsildar of the area where such property is situated. Such recording of the charge in the Record of Rights of the village shall be treated as a reasonable notice of such charge created under section 50.
CHAPTER- V Property and Funds of societies
49. All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under section 79, shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society.
Rule 47* are inserted by TCS (Fourth Amendment) Act 2011.
Restrictions on transactions with nonmembers.
Form of declarations be made by members borrowing loans from certain societies and conditions on which any change in favour of societies shall be satisfied.
Writing off of bad debts and losses.
31 All other dues and accumulated losses or any other loss sustained by the society which can not be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve Fund or share capital of the society;
Provided that —
(a) no bad debts or losses shall be written off without the sanction of the general body:
(b) before any such bad debts or losses are so written off the society, if it is affiliated and indebted to a Cooperative Bank, shall first obtain the approval of that Bank in writing and also the approval of the Registrar. lf the society is affiliated but not indebted to the Cooperative Bank and in all other cases, it shall obtain the approval of the Registrar in writing.
Provide further that in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose:
Provided also that the registrar may while giving the approval, impose such conditions as to the recoupment of the Bad debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
It is further Provided that in case of a Cooperative Credit Structure Society while writing off any bad debts or losses, in addition to the above, the guidelines, if any, stipulated by the Reserve Bank of India and or NABARD, as the case may be, shall also be followed.