Section 36 in The Maharashtra Cooperative Societies Rules, 1961
36. Conditions for borrowing of Maharashtra State Co-operative Bank.
- Except with the previous sanction of the Registrar, the Maharashtra State Cooperative Bank Limited shall now 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 with the Reserve Bank of India. 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.
