Section 66 in The Tamil Nadu Co-Operative Societies Act, 1983
66. Restrictions on loans.
(1)A registered society shall not make a loan to any person other than a member:Provided that, with the general or special sanction of the Registrar, a registered society may make loans to another registered society:Provided further that a registered society may make such loans as may be specified in the bye-laws to any of its paid employees.(2)Notwithstanding anything contained in sub-section (1)-(a)a registered society may make a loan to a depositor on the security of his deposit;(b)a financing bank may provide overdraft to, or discount bills and cheques of, depositors subject to such limits and conditions as may be prescribed; and(c)a financing bank may make a loan to depositors on the security of gold jewels and silver-ware, subject to such limits and conditions as may be prescribed.(3)The Government may, by general or special order, prohibit or restrict the lending of money on mortgage of immovable property by any registered society or class or category of registered societies.
