86. Notwithstanding anything contained to the contrary in this Act or rules the provisions of this Chapter shall apply to the State-co-operative Bank that may be registered in the State under this Act.

87. Notwithstanding anything contained in this Act, a society shall not be registered as the State Co-operative Bank unless the application for registration thereof is signed by at least to persons of whom one shall be the Government and the rest shall consist of not less than 5 societies.

88. It shall be lawful for the State Co-operative Bank to carry on all or any of the following business viz;-

(1) to do banking business as defined in Clause (b) of section 5 and section 6 (i) read with section 56 of the Banking Regulation Act, 1949 or any other law for the time being in force and in general to carry on and discharge such functions and business as are usually under-taken by banks or bankers;

(2) to serves as apex bank for the co-operative societies and to provide all types of financial accommodation, including short, medium and long-term loans for all kinds of economic activities. Including agriculture and allied activities, industry, trade and commerce, to co-operative societies as well as to other persons including firms, companies or other corporate bodies:

(3) to acts as an agent of the reserve bank in the matter of operating currency chests on such terms and conditions as may be mutually agreed upon; and

(4) to open branches, pay offices or regional offices in any part of the State of Sikkim or or outside Sikkim with the previous sanction of the Registrar.

89. The Government shall contribute not less than 51 per cent of the total issued capital of the State Co-operative Bank.
 

90. The Committee of the State Co-operative Bank shall consist of 9 members of whom 3 shall be nominated by the Government, 3 shall be representatives of societies, 2 shall be representatives of members other than societies to be elected or nominated as per the bye-laws of the bank, and one Managing Director to be appointed by the Government in consultation with the Reserve Bank.
Provided that the initial committee shall be entirely nominated by the Government for a period of 3 year or such other extended period as may be decided by the Government.

91. The State Co-operative Bank may at any time, acquire in whole or in part the business of the State Bank of Sikkim, established under the State Bank of Sikkim Proclamation, 1968, as may be provided by Central Government by law.

92. (1) The State Co-operative Bank may, with the prior approval of the Government, and subject to such terms and conditions as the Government may deem fit to impose, borrow money by issue of bonds.

(2) The bonds shall be in the form of promissory note and shall not be repayable before the expiry of five years from the date of issue thereof.
Provided that the committee may repay the amount due under the bonds at any time before the date so fixed, after issue of notice in such manner as the committee may direct in that behalf to the holders of the bonds

93. (1) The principal of and interest on the bonds issued under section 92 shall, subject to such maximum amount as may be fixed by the Government and subject to such conditions as the Government may think fit to impose, carry the guarantee of the Government.

(2) The Government may, subject to the provisions of any Act in that regard, increase the maximum amount of any guarantee given under sub-section (1)

(3) The Government may, after consulting the Committee,

(a) by notification in the Official Gazette, and

b)by notice of not less than fourteen days in such of the important news papers in the State and in other States of India, as the Government may select in this behalf, withdraw any guarantee given by them or reduce the maximum amount thereof or modify the conditions, subject to which it was given.

Provided that the withdrawal, reduction or modification of any guarantee under this sub-section, shall not in any way affect the guarantee carried by any bonds issued prior to the date on which such withdrawal, reduction or modification takes effect.

94. Where the State Co-operative Bank or the Primary agricultural credit society has given a long-term loan to a member for the improvement of any land in excess of the amount of the loan to which such member would be entitled, on the basis the value of the land as determined in accordance with the principles of valuation approved by the Committee from time to time with the approval of the Registrar, the Government may guarantee for a specified period the repayment of the loan to the extent of the excess.

95. (1) Where a mortgage is executed in favor of a primary agricultural credit society or the State Co-operative Bank for payment of prior debts of the mortgagor, the society or the bank may, notwithstanding anything in any law the time being in force relating to the transfer of properties, by in notice writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice.

(2) where any such person fails to receive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice
Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due shall be bond to receive payment of the amount offered by the primary agricultural credit society or the State Co-operative Bank, as the case may be, towards debt but such receipt shall not prejudice the right, if any of such person to recover the balance claimed by him.

96. The State Co-operative Bank may maintain general supervision over or inspect societies affiliated to or financed by it and take up the management of the societies on such conditions as may be approved by the Registrar.

96. A (i) Subject to the provisions of Section 89 allotment of shares to member of the State Co-operative Bank shall be governed by the provisions of its by- laws as approved by Registrar.

(2) The voting rights of members shall be proportionate to the shares held by each member.

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