Power of financing bank to proceed against defaulting members of co-operative society.

Corporate1960195 sections

Statutory text

(1) If a co-operative society is unable to pay its debts to financing bank from which it has borrowed, by reasons of its members committing default in the payment of money due by them, the financing bank may direct the committee of such society to proceed against such members by taking action under section 64.
(2) If the committee of the Co-operative society fails to proceed against its defaulting members within a period of ninety days from the date of receipt of such direction from the financing bank, the financing bank may proceed against such defaulting members in which event, the provisions of this Act, the rules and byelaws made there under shall apply as if all references to the society or its committee in the said provisions, rules and byelaws were references to the financing bank.
(3) Where a financing bank has obtained a decree or award against a society indebted to it, the bank may proceed to recover such money from the assets of the society to the extent of debts due from the society.

Study data processing for this section.

PDF: pending for this language.