Section 49 in The Assam Co-operative Societies Rules, 1953
49. Restriction on borrowing of limited liability society.
- No society with limited liability shall, by accepting deposits or loans or any other way incur liabilities exceeding fifteen times the sum of the paid-up share capital and the reserve fund for the time being separately invested outside the business of the society :Provided that-(a)the Apex Bank or a Central Co-operative Bank for the purpose of financing its affiliated societies the Apex Bank may incur liabilities by floating debentures, accepting depositor in any other way to the extent of twenty times the value of paid-up share capital and the reserve fund for the time being separately invested ; unless relaxation is made by the Registrar by an order in writing :(b)an agricultural society or a bank financing such societies may, with the permission of the Registrar or any person authorised on his behalf and under such conditions as he may impose, incur liabilities for the purpose of advancing seasonal loans to members for production of crops and for financing disposal of produce, repayable within a period of twelve months, irrespective of the amount of its paid-up share capital or reserve fund separately invested outside the business.
