Section 29 - Restrictions on loans - Co-operative Societies Act, 1912

Property and funds of registered societies Restrictions on loans. 29. (1) A registered society shall not make a loan to any person other than a member : Provided that, with the general or special sanction of the Regis trar, a registered society may make loans to another registered society. (2) Save with the sanction of the Registrar, a society with unlimited liability shall not lend money on the security of movable property. (3) The State Government may, by general or special order, pro hibit or restrict the lending of money on mortgage of immovable property by any registered society or class of registered socie ties.