Section 16 in The Bihar Co-operative Societies Act, 1935
16. Restrictions on lending.
(1)Except with the general or special sanction of the Registrar and subject to such restrictions as he may impose, a registered society shall not-(a)make a loan to any person other than a member, or(b)lend money on the security of movable property.(2)The State Government may, by general or special order, prohibit or restrict the lending of money or mortgage of immovable property by registered society or class of registered societies.(3)[ Where the Registrar has accorded sanction to a financing bank under the provisions of sub-section (1), a registered society which is a member of such financing bank may, subject to the terms of the sanction and such other terms and conditions as may be prescribed by the Registrar, act as agent for the financing bank and as such agent carry out, with or without any commission, all or any transactions connected with loans or advances made or to be made by the financing bank.] [Inserted by Act 16 of 1948.]
