Section 35 in The Arunachal Pradesh Co-operative Societies Rules, 1984
35. Conditions of borrowing for Co-operative Banks.
- Except with the previous sanction of the Registrar, a Co-operative Bank shall not incur liabilities exceeding in total fifteen times the total amount of its paid up share capital, and all reserves minus accumulated losses, actual bad debts, if any, and overdue interest:Provided that the Bank may incur liabilities in excess of the aforesaid limit by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the Bank but shall be invested in Government securities which shall be deposited as directed by the Registrar. The Bank shall not borrow against such securities.Explanation. - In calculating the total amount of liability for the purposes of this rule, a sum equal to the amount borrowed by the Bank, on the security of agricultural produce or other goods of the members of the Bank shall be excluded from the amount of the actual liability under this rule.
