Section 59 in Kerala Cooperative Societies Act, 1969
59. Restrictions on loans.
(1)A society shall not make a loan to any person or a society other than a member:Provided that District Co-operative Bank may make loan to its nominal or associate members:Provided further that, with the general or special sanction of the Registrar a society may make loans to another society.(2)Notwithstanding anything contained in sub-section (1) , a society may make a loan to a depositor on the security of his deposit.(3)[ Granting of loans to members or to non-members under sub-section (2) and recovery thereof shall be in the manner as may be specified by the Registrar.] [Added by Kerala Act No. 7 of 2010.]
