Section 331

A co-operative farming society may obtain loan on mortgage without possession of the land under Section 86, subject to the following conditions:- (i) the purpose for which loan is obtained is such as is to be of common benefit to the society and to the member there of or is such as is most likely to increase agricultural production or to arrest deterioration or decay of the properties of the soil or check inroad of floods; (ii) the proposal for such loan has been adopted by the General Body of the society and approved by the Registrar; and (iii) the members whose authorisation for mortgage is to be obtained have individually agreed in writing to the proposal referred to in Clause (ii) and in such term as may be specified by the Registrar. Such authorisation shall bear the attestation of a Gazetted Officer or an Officer of Co-operative Department not below the rank of Group II Inspector, who shall affix his stamp below his signature.