(1) A co-operative society shall grant loans to its members only: Restrictions
Provided that a co-operative society may, with the sanction of the on !endings.
Registrar, grant, in the manner prescribed, loans to any other co-operative society which is not its member.
(2) A co-operative society may grant loan to a member thereof belonging to such economically weaker sections as may be prescribed at a concessional rate of interest and against a lower scale of security, irrespective of the value of shares held by him.
48. Notwithstanding anything contained in any other law for the time being in force, the State Government may, subject to the rules,—
(i) grant loans to, take shares in, or give financial assistance in any other form to, any co-operative society;
(ii) guarantee the repayment of share capital of any co-operative society and dividends thereon at such rates as may be specified by the State Government; and
(iii) guarantee the repayment of principal and payment of interest on loans and advances to any co-operative society.
Power of State Government to give financial assistance.
343 The West Bengal Co-operative Societies Act, 1983.
[West Ben. Act (Chapter VL—Duties and obligations of co-operative societies.—Sections 49-51.)
Power of State Government to issue directive.
49. The State Government may, for reasons to be recorded in writing and after giving the co-operative society an opportunity of being heard, at any time issue directive to any co-operative society or any class of cooperative societies to modify its policies in the manner specified in such directives or to take such other action as the State Government may consider necessary or expedient in the interest of such co-operative society or class of co-operative societies or of the co-operative movement in general.
Limitation. 50. Notwithstanding the provisions of the Limitation Act, 1963, the 36 of 1963.
period of limitation for the institution of a suit to recover any sum (including interest thereon) due to a co-operative society by a member thereof or any person having transaction with the co-operative society shall be computed from the date on which such member or person dies or ceases to be a member or, as the case may be, closes transaction with the co-operative society.
Debts due to co-operative societies to be first charge.