Section 40 in Andhra Pradesh Co-Operative Societies Rules, 1964
40. Restriction on borrowing by societies.
- A society may receive deposits and raise loans from persons or institutions who are not members provided that the amount borrowed from such persons and institutions together with the amount borrowed from members does not exceed the limit fixed, from time to time by Registrar for the society or for the class of the societies to which it belongs.[41. Restriction on grant of loans. - (1) No Society shall grant loans or make advances against the security of its own shares.(2)Every society shall determine the mechanism of lending to its members. The General Body of Apex level societies or State level federation [or Financing Bank] [Substituted by G.O.Ms.No. 37, Agriculture & Coop. (Co-Operative IV), dated 28-1-2002.][Added by G.O.Ms.No. 205, Agriculture & Coop. (Co-Operative IV), dated 2-7-2008. ] shall determine the maximum lending limit of a member in respect of such class of societies with which they are concerned.(3)No agricultural credit society with unlimited liability shall grant loan for periods exceeding five years.(4)In this rule, the term "short term loans" means a loan repayable from the sale proceeds of the next harvest as soon as it is realised or within one year from the date of the grant of the loans whichever period is longer.[41A. Percentage of loans to small farmers, etc.. - Subject to such directions as the Reserve Bank of India may give to Co-operative Banks in this behalf, Primary Agricultural Credit Societies shall, during a co-operative year, disburse to small farmers as defined in the Explanation under clause (a) of sub-section (3) of Section 47 of the Andhra Pradesh Co-operative Societies Act, 1946, fifty per cent of the total amount borrowed by them from the co-operative financial Institutions, for granting [loans] [Added by G.O.Ms. No. 48, Plg. & Co-Operative (Co-op.VI), dated 28-1-1972.][Added by G.O.Ms.No. 37, Agriculture & Coop. (Co-Operative IV), dated 28-1-2002.] to their members during a co-operative year, so however that the amount to any such loans that may be granted to each of their members whether or not he is a small farmer, shall not in the aggregate exceed such amount or amounts as the Government may, from time to time, by notification in the Andhra Pradesh Gazette, specify in relation to the various classes of members and having regard to the purposes for which loans are required.[41B. Issue of loans by means of a cheque. - Every Society shall disburse amounts to any of its members exceeding Rs.1000/- invariably by way of a cheque or a negotiable instrument such as a draft, pay order etc.] [Substituted by G.O.Ms.No. 37, Agriculture & Coop. (Co-Operative IV), dated 28.1.2002.][41C. Sanctions of loans in certain cases. - (1) If the Committee of an agricultural credit society fails to render service to the members within 7 days from the date of order issued under sub-section (3) of Section 22 directing the Committee to render such service or if it is brought to the notice of the Registrar that the Committee is not sanctioning loans to the members without valid reasons, the Registrar shall direct the Chief Executive of the society or any other person authorised by him to process the loan applications of the members.(2)The Chief Executive or the person authorised, notwithstanding anything in the bye-laws, on such direction shall take immediate steps to forward relevant documents viz., credit limits, drawal loan application etc., through the Registrar to financing Bank for sanction of loan.(3)The Chief Executive of the Financing Bank shall take steps for arranging sanction of loans to the Agricultural Credit Society.(4)The Chief Executive of the Agricultural Credit Society or the person authorised under sub-rule (1) shall disburse the loans to the members of the Agricultural Credit Society under the supervision of a person authorised by the Registrar] [Added by G.O.Ms. No. 45, (Co-Operative IV), dated 21-1-1988.].(5)[ The Committee or the Chief Executive of the Society or the person authorised under Sub-rule (1), shall prepare a list of borrowers showing the loans sanctioned to each member and affix such list on the notice board of the society.(6)Every Primary Agricultural Co-operative Society, shall within 10 days after the close of every quarter, prepare a list showing the amounts due from members on the notice board of the society] [Added by G.O.Ms. No. 692, F & A (Co-Operative IV), dated 23-8-1988.].
