Section 16(a) in The U.P. Co-operative Societies Rules, 1968
(a)In the case of a co-operative credit society the bye-laws shall, subject to the provisions of the Act and the rules, cover the following matters also-(i)the purpose, procedure, terms, conditions and security for grant of loans and extension, postponement, mode of recovery and circumstances for recalling of loans,(ii)fixation of credit limits of members,(iii)maximum loan admissible to a member,(iv)maximum rate of interest to be charged on loan,(v)surety, his duties and responsibilities,(vi)consequences of default or misutilisation,(vii)the constitution of a fund to be known as the Agricultural Credit Stablisation Fund in case the society facilitates the agricultural operation of its members and has received financial assistance from the State Government.
