Section 64 in The Delhi Co-operative Societies Rules, 2007
64. Restriction on borrowing by co-operative society with limited liability.
(1)A co-operative society shall receive deposits and loans only to such extent and according to the following parameters or as per provisions contained in the bye-laws. The general body of a society shall be competent to fix the maximum credit limit in respect of the cooperative society based on the audited accounts and the committee shall be competent to fix the maximum credit limit of an individual borrower.(2)The maximum credit limit of a co-operative society 'other than Consumer Store, Cooperative Housing, Urban Cooperative Banks and Financing Bank' may be fixed by the general body but not exceeding the following limits namely:-(a)Co-operative society classified 'A' during the last audit Seven times the paid-up share capital plus accumulated reserves and undistributed profits minus the total of losses and loans falling overdue payable to Financing Bank and other agencies;(b)Co-operative society classified 'B' and 'C' during the last audit. Five times the paid-up share capital plus accumulated reserves and undistributed profits minus the total of losses and loans fallen overdue payable to Financing Bank and other agencies;(c)Co-operative society classified 'D' during the last audit and newly registered cooperative society. Three times the paid share capital less loss and over-dues.Explanation. - The classification of society as (A) (B) (C) or (D) shall be made on the norms specified in Schedule (V).(d)Consumers co-operative society Against hypothecation or pledge of goods, the maximum credit limit shall be equal to the aggregate of paid-up share capital, accumulated reserves, undistributed profits and value of the goods in stock hypothecated or pledged;(ii)Co-operative housing society Twenty times the paid-up share capital plus accumulated reserves and profits provided the repayment of principal and interest is secured by mortgage or pledge of tangible assets and securities;(iii)Co-operative financing bank Fifteen times the paid-up share capital plus accumulated reserves minus losses, actual bad debt and overdue interest recoverable:Provided that the Registrar may reduce or increases the above maximum credit limit at the time of according his approval. A co-operative society which accepts deposits and loans from members alone and has no liability to any person other than the members, may receive deposits and loans from the members in excess of the limit referred to in clause (2) if the excess amount is deposited in the fixed deposit account with the Cooperative Financing Bank or is invested in Government securities specified in section 20 of the Indian Trust Act, 1882 provided that the amount so deposited or invested or any part thereof is not withdrawn or otherwise utilized except for the payment of the deposit accepted in excess of the aforesaid limit.
