Restrictions on loans

(1) A society shall not make a loan to any person other than a member: Provided that with the general or special sanction of the Registrar a society may make loan to another society. Provided further that a society may make such loans as may be specified in the bye-laws to any of its paid employees. (2) Notwithstanding anything contained in sub-section (1), a society may make a loan to depositor on the security of his deposit.