The Multi-State Co-operative Societies Act, 2002

Section 66- Restriction on Ioans - Section 67- Restriction on borrowing -

(1) A Multi-State Co- Operative society, other than a co-operaive bank, shall not make a loan to a member, other a co-operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.  

Section 67- Restriction on borrowing -  A (1) A Multi-State Co- Operative society, may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws. Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves : Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted.  

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