Section 44(1) in Sikkim Co-Operative Societies Act, 1955
(1)A registered society shall not give Loans -(a)to any person other than a member except with the general or special sanction, of the Registrar;Provided that a loan may be given to a depositor of the society's on the security of his deposit or,(b)to a member in excess either of the maximum or of the normal credit determined by the society for that member in accordance with its bye-laws;Provided that in assessing normal credit the managing body shall take a full statement as to the member's means of earning.(c)on the security of the movable property or future movable property unless the movable: property is placed with the society.(d)on personal security without sureties, unless the borrowing member has unencumbered immovable property or attachable funded assets sufficient to cower the loan and a full statement of such securities is submitted by the borrower and the truth of the statement is ascertained by the managing body.(e)on personal security with sureties, unless the borrowing member and his sureties together have 'unencumbered immovable property or attachable funded assets sufficient to cover the loan and a full statement of such securities is submitted by borrower and the sureties separately and the truth of, the statements is ascertained by the managing body,(f)on personal security, with or without sureties, unless the loan is for a short period not exceeding the time required to reap the benefit of the loan and in no case exceeding three years.
