Section 53 in The Orissa Co-operative Societies Rules, 1965
53. Period of Repayment and Restrictions on issue of Loans.
(1)The period of repayment of a loan for a Financing Bank of Credit Society shall be such as may be provided in the Bye-Laws as in no case shall it exceed 5 years except in the case of the Land Development Bank or a Society the object of which is to grant long term loans exclusively on the mortgage of immovable properties.(2)The Registrar shall have power to fix by a special or general order in writing how much of the maximum lending limit of the Financing Bank or a Credit Society other than a Mortgage Bank or a Society the object of which is to grant long term loans exclusively on the mortgage of immovable properties, shall be made available for the grant of short term loans and loans repayment after one year but within five years, as the case may be, from the date of grant of the loans.Notes - In this rule, the term "Short-term loans" means a loan repayable from the sale price of the next harvest as soon as it is released but not exceeding fifteen months.(3)Instalment for the repayment of loan which as granted to a member of Primary Credit Society shall not be in excess of the annual surplus income of the applicant estimated by the Committee under Clause (iv) of Sub-rule (3) of Rule 51.(4)No extension of the period for which a loan is advanced shall be granted except on sufficient cause shown on application of the borrower and with the consent of the sureties or guarantees and in case of a Primary Society affiliated to a Financing Bank, such extension shall be with the consent of the Financing Bank.(5)In any Society where a share capital is contributed by members, a loan shall be granted to a member in proportion to the share capital paid by him which shall be fixed in Bye-Law :Provided that these proportions for any Society or class of Societies may be increased or decreased as may be decided by the Registrar.(6)Every Credit Society of unlimited liability shall, from time to time, fix in a general meeting, the maximum liability a member may incur. The maximum limit so fixed shall be subject to revision of the Registrar or some person authorised by him or the Financing Bank who may reduce it or impose such conditions as may be considered necessary. No loan shall be granted to any individual member of a Society which shall bring his total debts to Society exceeding the maximum amount so fixed.(7)No loan shall be made by a Society to any person other than a member provided that with the prior sanction of the Registrar a Society may make deposits with another Society which is not a member subject to such conditions as the Registrar may specify.(8)Save with the prior sanction of the Registrar and subject to such registration as he may impose, no Financing Bank shall lend money to its individual members except against fixed deposits or trustee securities.(9)No cash-credit shall be given by any Society other than a bank to another Society without the prior sanction of the Registrar.(10)No distributive Society shall sell its goods to persons other than members except as provided in the Bye-Laws.(11)No Society shall lend money to its members only on the security of movable property except with the previous, general or special order of the Registrar or an officer specially empowered by him in this behalf.(12)In no case, Society shall grant loan or make advance against security of its own shares.Notes - The provision of Sub-rule (1) of Rule 53 of the Orissa Co-operative Societies Rules. 1965 shall apply to the Orissa State Co-operative Bank Ltd. and all the Central Co-operative Banks Ltd. as notified below-In Sub-rule (1) of Rule 53 of the said rules for the word and figure "5 years" the word and figure "15 years" shall be substituted vide O.P.G. Ill No. 16 of 24.4.1977.
