44.Regulation of loan making policy
(1)No society shall make a loan to any person other than a member or on the security of its own shares, or on the security of any person who is not a member :
Provided that, with the special sanction of the Registrar, a society may make loans to another society.
(2)Notwithstanding anything contained in the foregoing sub-section, a society may make a loan to a depositor on the security of his deposit.
(3)If in the opinion of the State Government, it is necessary in the interest of the society or societies concerned to do so, the State Government may, by general or special order, prohibit, restrict or regulate the lending of money by any society or class of societies on the security of any property :
Provided that, the Registrar may, for ensuring safety of the funds of the society or societies concerned, for proper utilization of such funds in furtherance of their objects and for keeping them within the loan making limits laid down in the rules and by-laws, with the approval of the Apex Bank, by general or special order, regulate further the extent, conditions and manner of making loans by any society or class of societies to its members or other societies :]
Provided further that, nothing in this section shall apply to the loan making policy made by the co-operative credit structure entity. However, such entity shall adopt its own policy in conformity with 8[guidelines of the Reserve Bank of India or National Bank.]]
