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.
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.