| 43. |
From of declaration to
be made by Member Borrowing Loans: |
| 1 |
declaration required to be
made under sub section (1) of
section 43, shall be in Form H |
| 2 |
A register of such decision
shall be kept by the society in Form
I: |
|
3 |
A charge on any
immovable property created by a
member in favour of a society for
amounts borrowed or to be borrowed
by him, from time to time shall,
subject to the provision of sub
section (2) of section 43 continue
in forces till all the sums secured
by such declaration are fully repaid
to the society
|
| 4 |
If a member commits default in
repayment of the principal or
payment of interest and other
charges to a society, which payment
and repayment are secured by a
charge under section 43, the society
may, for the purpose of recovering
the said sums
a. dispose off in the manner
prescribed, either in whole or in
part, the property charge and
recover the sums due to it; of
b. take possession of such property
in the manner prescribed and let out
the same to such person or person on
such rental as the society may deem
fit or use the property itself, for
its business purpose on rental basis
and appropriate the rents towards
the repayment of the principal and
payment of interest and other
charges due to itself.
Provided that where the society lets
the property or otherwise uses the
property itself the member to whom
the said property belongs or person
claiming through him shall not be
entitled to recover possession of
the property until all sums due to
the society are fully adjusted from
the rents of the said property or
otherwise. Upon such adjustment the
lease granted by the society in
respect of the said property shall
be deemed to have been determined
and the Lessee shall,
notwithstanding anything contained
in the lease deed, hand over vacant
possession of the property to the
member or any person claiming
through him on a written requisition
from the society in that
Behalf |
| |
|
| |
|
| |
|
| 44. |
Restriction on Borrowing by Society
With Limited Liability : |
| |
No society shall
receive deposits or borrow or with
or without security by way of loans
or advances or overdrafts from
members or non members in excess of
the maximum amount fixed in its
Bye-laws subject to the approval of
the Registrar.
Provided always that the Registrar
may at any time reduce such maximum
so fixed and impose such conditions
as he may deem fit, subject to which
the society may receive deposits or
borrow money. |
|
|
|
| |
|
| 45. |
Issue of Bonds : |
| 1 |
Any
society, which is authorized under
its Bye-laws to raised funds by the
issue of bonds may, with the prior
approval of the Registrar, frame
regulations governing the issue and
management of such bonds. |
| 2 |
The total amount
of bonds issue at any time together
with the other liabilities incurred
by the society, shall not exceed the
maximum amount which the society can
borrow under the provision of rule
44. |
|
|
| |
|
| 46. |
Bonds
Redemption Fund : |
| |
Every society
which raises resources by issue of
bonds shall constitute and maintain
a Bonds Redemption Fund in such
manner as may be specified by the
Registrar from time to time. |
| |
|
| |
|
| 47. |
maintenance
of Liquid Resources and Distribution
of Assets : |
| |
Every society
which obtains any portion of its
working capital by deposits, shall:- |
| i |
maintain such
liquid resources in such form as may
be specified from time to time by
the Registrar, and |
| ii |
utilize only
such portion of its working capital
in lending business and distribute
its assets in accordance with such
standards as may be specified from
time to time by the registrar. |
| |
|
| |
|
| 48. |
Restriction
on Loans to be Granted by societies
: |
| 1 |
No society shall
make a loan to :- |
| a |
any person who
is not a member :- |
| b |
any member on
the security of its own shares, |
| c |
any member on
the surety ship may for special
reasons permit a society to make
loans to a member on the surety ship
of non-member. |
| 2 |
Every society
shall, while granting loans against
security of moveable or immovable
property, maintain such margin as
the Registrar may, by general or
special order, direct from time to
time with reference to different
commodities, securities or classes
of societies. |
| 3 |
It shall be
lawful for a society to grant loans
without taking security of moveable
or immovable property if the purpose
for which the loans given is
considered production worthy and
reasonable expected that the loans
will be repaid by the loanee. The
Registrar may issue direction to the
societies to ensure that credit
worthy purposes indicated above
receive finance from societies with
out any difficulties on the one
hand, and without being detrimental
to the financial interest of the
societies on the other. |
| 4 |
Expect with
general or special permission of the
Registrar, the loan advanced to a
member by a society, of to a society
by the financing bank shall be
subject to such conditions as a may
be laid down by the Registrar, with
the approval of the financing bank,
including the maximum amount to be
advanced and period of repayment,
both is regard to total advance to
members and societies as also
against, different types of
securities. |
| 5 |
No society shall
carry on transaction on credit or
sanction trade credit to its members
or to non-members except in
accordance with the general
direction that may be issue by the
Registrar in that behalf. |
| 6 |
In the matter of
grant of loans to societies by the
State Co-operative societies the
Registrar may lay down, in
consultation with the financing
bank, the procedure regarding
receiving applications, assessing
credit need, making inquiries in
respect of the production programme
for which such loan as also which
such loan is required and procedure
for finally sanctioning the loan as
also the rates of finance to be
followed from years and the nature
of inquires to be made for the
purpose of financing of different
crops and imposition of certain
condition regarding proper
utilization of loan and sale of
agriculture produce through
specified co-operative organization
before such finance is granted.
|
| 7 |
The registrar
may by general or special order
prohibit or grant of loans by the
financing bank or a society where
such grant is considered neither
movement interest of the society nor
in the interest of the development
of co-operative movement on sound
lines. |
| |
|
| |
|
| 49. |
Conditions to
be complied with by members applying
for loans: |
| |
Every
member of a society applying for a
loan from the society shall be
required to hold shares in such
manner and in such proportion to the
amount of loan applied for by him as
may be specified in the bye-laws of
the society. |
| |
Subject to such
maximum limit as may be specified in
the bye laws, the loan to a member
by a resource society, and the
period of its repayment shall be in
accordance with the instructions as
may, from time to time, be issued by
the Registrar provided that a loan
in excess of the maximum prescribed
in the bye laws may be granted to a
member with the previous sanction of
the Registrar. |
| |
|
| |
|
| 50. |
Credit Limits
by non credit societies: |
| 1 |
No society whose
object do not include grant of loan
or financial accommodation to its
member shall grant loans or sanction
credit to any member without the
sanction of the Registrar.
Provided that if any object of a
society relate to supply of goods or
service required by its members for
manufacture or trade or production
purpose, its bye-laws may provide
for supply of goods or provision of
service on credit against sufficient
security and on condition that the
cost of the goods supplies or
services provided shall be
recoverable from the amount of the
sale proceeds of the agriculture
produce or other goods produced or
manufactured by the members. |
| 2 |
A consumer
society may. Notwithstanding what is
contained in sub rule (1), sell
goods on credit to its members and
others customer upto the extend of
deposits received from them |
| |
|
| 51. |
Manner of
recalling of Loans : |
| 1 |
Notwithstanding
anything contained in an agreement
or document with its member the
committee of a society shall be
entitled. After giving a week’s
notice to such member, to recall the
entire loan amount immediately, when
it is satisfied that the loan given
has been applied for the purpose for
which it was given or there has been
breach of any of the conditions for
grant of such loan. |
| 2 |
Notwithstanding
anything contained in any agreement
or document, the Registrar may,
after making such inquires as he may
deem necessary and after satisfying
himself that a loan granted by a
society has not been utilized for
the purpose for which it has been
granted, and in consultation with
the financing bank, direct a society
to recover the loan. The directions
issues by the Registrar in this
respect shall be complied with by
the society.
|
| |
|
| |
|
| 52. |
Directives by
Registrar for the successful conduct
of business: |
| |
The Registrar may, from time to
time, issue such directive as he
considers necessary for the
successful conduct of the business
of a society or class of societies. |
| |
|
| |
|
| 53. |
Loans and
subsidies by Government : |
| 1 |
Loans and
subsidies to a society or class of
societies may be granted by
Government subject to such terms and
conditions as may be stipulated by
it. |
| 2 |
An application
by a society for a loan or subsidy
or both from a Government Department
or a Government sponsored agency
shall be made through the Registrar.
While forwarding the application,
the registrar shall record his
opinion regarding the eligibility of
the society for the said loan or
subsidy or both, its financial
position and the desirability of
sanctioning to the society the said
loan or subsidy or both. |
| 3 |
A society
receiving Government loan or subsidy
or a society in which a share or
shares have been subscribed or
liability by way of guarantee has
been undertaken by the Government,
shall furnish such information and
submit such returns as the
sanctioning authority or the
Registrar may from time to time
require.
|
