Restrictions on borrowing

Corporate2024155 sections12 chapters

Chapter IV INCORPORATION, DUTIES AND PRIVILEGES OF SOCIETIES

Statutory text

(1) A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as may be prescribed, or specified by the bye-laws of the society: Provided that the total amount of deposits and loans received during any financial year shall not exceed such multiples as may be determined by the Administrator of the sum of subscribed share capital and accumulated reserves minus accumulated losses.
(2) If in the opinion of the Registrar, it is necessary so to do for ensuring safety of the funds obtained under sub-section (1), for proper utilisation of such funds in furtherance of the objects of the society or societies concerned and for keeping them within the borrowing limits as laid down in the rules and bye-laws, the Registrar may, by general or special order in writing, impose additional conditions on any society or class of societies, subject to which and the extent up to which such society or such class of societies may receive deposits, issue debentures or raise loans from any creditor other than a

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