Multi-State Cooperative Societies Act, 1984

63. Restrictions on loans.-

1.      A multi-State Cooperative society, other than a cooperative bank, shall not make a loan -

a.      to a member on the security or his share or on the security of a non-member; or

b.     to a non-member;

Provided that with the general or special sanction of the Central Registrar, a multi-State cooperative society may make loans to another multi-State cooperative society.

1.     

2.      Notwithstanding anything contained in sub-section (1), a multi-State cooperative society may make a loan to a depositor on the security of his deposit.