section 37
Restrictions on lending.
The Chhattisgarh Co-operative Societies Act, 1960Corporate1960195 sections
Statutory text
- (1) A society shall not— (a) make a loan to any person other than a member; (b) make a loan to a member on the security of his own shares; (c) make a loan to a member on the security of any non-member: Provided that a society may make a loan to another society and/or nominal member in accordance with the provisions made in its bye-laws. (1-A) A society granting loans to its members to whom "Bhu-Adhikar Avam Rin-Pustika" (Land Rights and Loan Book) has been given under section 114-A of the Chhattisgarh Land Revenue Code, 1959 (No. 20 of 1959), shall enter all transactions of loans, advances and recovery thereof in the aforesaid Bhu-Adhikar Avam Rin-Pustika. (1-B) Notwithstanding anything contained in this Act, the rules made thereunder and the bye-laws of the societies, in case of omission to make entry of any loan or advance given to the members of the society, it shall be presumed that no such loan or advance has been given but this presumption shall not be made when the society proves otherwise. (2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit. (3) The Registrar may, by general or special order, prohibit or restrict the lending of money on the security of movable property or on the mortgage of immovable property by any society or class of societies. (4) If any officer or employee of a society, who is entrusted with the work of making entry of loans, advances and recovery thereof in the "Bhu-Adhikar Avam Rin-Pustika" referred to in sub-section (1-A), fails to make such entry in the said book, the Registrar, by order, may impose on him a penalty not exceeding Rs. 500. The order imposing penalty shall be implemented in accordance with the provisions of section 85.
Study data processing for this section.
PDF: pending for this language.