Restrictions on borrowings

(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. (2) Notwithstanding anything contained in sub- section (1), a cooperative credit structure society shall have freedom to raise loan from any bank or Reserve Bank regulated financial institution, refinance from National Bank or any other refinance agency directly or through any Reserve Bank regulated financial institution of its choice and not necessarily from the society to which it is affiliated. (3)(a) Notwithstanding anything contained in sub-section (1), any person or group desirous of making a deposit in the cooperative land development bank or a primary agricultural credit society shall become a member of that society under sub-section (1) of section 22 and on admission as such, he shall be entitled to full membership voting rights. (b) A borrower group shall become a member of the cooperative land development bank or a primary agriculture credit society under sub-section (1) of section 22. (c) Every depositor group or borrower group admitted as a member under sub- section (1) of section 22 shall be entitled to vote through one delegate nominated by the group.