Section 89 in West Bengal Co-operative Societies Rules, 2011
89. Restriction on issue of Loan.
(1) In any co-operative society [other than a Co-operative Credit Structure Entity] [Inserted by Serial No. (19)(a)(i) of the Notification No. 3857-Co-op./H/2R-09/2012, dated 26th December, 2012, w.e.f. 1.2.2013.] in which the liability of the members is limited by shares, no loan shall be granted to a member exceeding twenty times the amount of share capital paid up by him :Provided that(a)[ xxx ] [[Deleted by Serial No. (19)(a)(ii)(A), ibid, w.e.f. 1.2.2013, earlier which was as follows :(a)the West Bengal State Co-operative Agriculture and Rural Development Bank, the State Co-operative Bank or a Central Co-operative Bank may grant loans to a co-operative agriculture and rural development bank or a central co-operative bank up to 30 (thirty) times the amount of share capital paid up by the said banks.]](b)[ a primary co-operative bank other than a Co-operative Credit Structure Entity may grant loans to a member up to thirty times the amount of share capital paid up by him.] [[Substituted by Serial No. (19)(a)(ii)(B), ibid, w.e.f. 1.2.2013, earlier which was as follows :(b)a primary agriculture and rural development bank or a primary co-operative bank may grant loans to a member upto thirty times the amount of share capital paid up by him.]](c)[ xxx ] [[Deleted by Serial No. (19)(a)(ii)(C), ibid, w.e.f. 1.2.2013, earlier which was as follows :<p class=subpara1>(c) the state co-operative bank may advance loan to a society engaged in purchase, production and disposal of goods of its members in excess of twenty times the share capital paid up by such society.]](d)[any financing bank other than the State Co-operative Bank and a Central Co-operative Bank] [Substituted by Serial No. (19)(a)(ii)(D) of the Notification No. 3857-Co-op./H/2R-09/2012, dated 26th December, 2012, w.e.f. 1.2.2013, for the words the state co-operative bank or any other financing bank.] may grant loan to its member-societies up to thirty times the amount of share capital paid up by the member societies;(e)with the permission of the Registrar and under such conditions as he may impose, an agricultural society may grant loan to a member, repayable within a period of eighteen months, for facilitating production or disposal of crop, irrespective of the amount of the share capital paid up by such member;(f)an agricultural society may grant loan to a member, repayable within a period exceeding eighteen months but not exceeding sixty months for promotion of irrigation facilities and such other purposes as may from time to time be determined by it irrespective of the amount of share capital paid up by such member;(g)a Co-operative Agriculture and Rural Development Bank may grant loan to a member for promotion of irrigation facilities and for such other purposes as may from time to time be determined by it irrespective of the amount of share capital paid up by such member;(h)[any financing bank other than the State Co-operative Bank and a Central Co-operative Bank] [Substituted by Serial No. (19)(a)(ii)(E), ibid, w.e.f. 1.2.2013, for the words the state co-operative bank or any other Co-operative bank.] may grant loan to a member against pledge or hypothecation of marketable security or goods or both up to a maximum limit of eighty per centof the market value of such security or goods or both or against the guarantee of the employer of the member of the society concerned, irrespective of the amount of share capital paid up by such member;(i)with the permission of the Registrar and under such conditions as he may impose, a co-operative society composed solely of displaced persons and recommended by the department dealing with the displaced persons may grant loan to a member irrespective of the amount of share capital paid up by such member;(j)[any financing bank other than the State Co-operative Bank and a Central Co-operative Bank] [Substituted by Serial No. (19)(a)(ii)(F), ibid, w.e.f. 1.2.2013, for the words the state co-operative bank or any other Co-operative bank.] may grant loan to a member against mortgage of immovable property up to a maximum limit of eighty per centof the market value of such property, irrespective of the amount of share capital paid up by such member.(2)A Co-operative society may, in terms of section 50, grant loan to a member thereof belonging to economically weaker sections, that is to say, persons is (including scheduled castes, scheduled tribes, marginal farmers, share-croppers known as Adhiars, Bargadars or by any other local terminology, agricultural labourers, and physically or mentally handicapped persons) belonging to families having total annual income not exceeding eight thousand rupees, at a concessional rate of interest and against a lower scale of security irrespective of the value of shares held by them.Explanations:(1)A marginal farmer means a person who owns land not more than one hectare.(2)For the purpose of this sub-rule "family" shall have the same meaning as appearing under Explanation of sub-section (3) of section 16.(3)Any Co-operative society may give by way of loan to any depositor a sum not exceeding eighty-five per centum of his deposits.(3)[ A Co-operative Credit Structure Entity shall be entitled to issue loans as per policy formulated by its Board.] [Inserted by Serial No. (19)(a)(ii)(G) of the Notification No. 3857-Co-op./H/2R-09/2012, dated 26th December, 2012, w.e.f. 1.2.2013.]
