Bye-laws for Credit and Non-Credit Societies

(a) In the case of a co-operative credit society the bye-laws shall, subject to the provision of the Act and the Rules, Cover the following matters also:- (i) the purpose, procedure, terms, conditions and security for grant of loans and extension, postponement, mode of recovery and circumstances for recalling of loans; (ii) fixation of credit limits of members; (iii) maximum loan admissible to a member; (iv) maximum rate of interest to be charged on loan (v) surety, his duties and responsibilities; (vi) consequences of default or misutilisation; (vii) the constitution of a fund to be known as the Agricultural Credit Stabilization Fund in case the society facilitates the agricultural operations of its members and has received financial assistance from the State Government. (b) In the case of a non-credit co-operative society, the bye-laws shall, subject to the provisions of the Act and the Rules, also provide for the manner of carrying on the business of the society including production, purchase and sale, stock-keeping and conducting non-commercial activities, if any.