By Staff Reporter
Sec 15 Mobilisation of Funds and Restrictions on Borrowing 1) A registered society may mobilize funds in the shape of share capital from its members, deposits, bonds, debentures, loans and other contributions from its members to such extent and under such conditions as may be permissible under the bye- laws of the Society. Provided that at the time of dissolution of a society the amounts due to the members shall be settled only after settlement of due to others. (2) A co-operative society may mobilise debentures, deposits, raised loans and receive grants from external sources to such extent and other such conditions as may be specified in the bye laws. Deposits and loans raised from external sources, however, shall at no time exceed ten times the sum of member funds and organisational reserves, less accumulated deficit, if any. (3) A co-operative society may accept funds or guarantees from the government or other financing institutions for the fulfillments of its objectives on such terms and conditions as are mutually contracted upon and such conditions may included the right of the government or other financier to nominate on experts on the board. (4) No member in a primary society shall, at any time hold more than one tenth of the paid up equity capital. (5) No self supporting co-operative society shall accept funds from the government by way of equity. 16. Restrictions on lending. – (1) No co-operative society shall, except with the general or special sanction of the Registrar and subject to such restrictions as he may impose, (a) make a loan to any person other than a member, or (b) lend money on the security of movable property. Provided that if any reference is received, the Registrar shall dispose off the reference within three months of its receipt. (2) The State Government may, in registered co-operative society or class of registered co-operative societies prohibit or restrict the lending of money or mortgage of immovable property, by general or special order (3) Where the Registrar has accorded sanction to a financing bank under the provisions of sub-section (1), a registered society which is a member of such financing bank may, subject to the terms of the sanction and such other terms and conditions as may be prescribed by the Registrar, act as agent for the financing bank and as such agent carry out, with or without any commission, all or any transactions connected with loans or advances made or to be made by the financing bank. Provided that a self supporting co-operative society shall make loans to its members or to non members and shall lend money on the security of movable or immovable property, subject to the approval by the general body. 17. Restrictions on other transactions with non-member. – The transactions of a registered society with persons other than members shall be subject to such further prohibitions and restrictions, if any, as the State Government may by Rules prescribe.
