Section 53 in The Assam Co-operative Societies Rules, 1953
53. Restriction on issue of loans.
(1)Fixation of maximum liability of a member of credit society with unlimited liability. - Every credit society of unlimited liability shall from time to time, fix in the annual general meeting of the general assembly the maximum liability a member may incur. The maximum limit so fixed shall be subject to the sanction of the Registrar or some person authorised by him who may, if he thinks fit, reduce it or impose such conditions as he may think necessary. No loan shall be granted to an individual member of a society which shall bring his total debts to the society exceeding the maximum amount so fixed.(2)Fixation of maximum liability of a member of limited liability society. - In any co-operative society in which the liability of the members is limited by shares, no loan shall be granted to a member exceeding ten times the amount of the share capital paid by him but not exceeding the limit provided in the bye-laws or determined by the annual general meeting of the general assembly-(a)a society may grant loans to its members up to twenty times the amount of share capital paid up by a member, in case of such loans being issued on mortgage of valuable security, as provided in sub-section (2)(c) of Section 44 of the Act.Provisions of Rule 53(2) (a) of the Assam Co-operative Societies Rules, 1953 shall apply in case of a Agricultural Credit Co-operative Societies with the modification that up to a loan amount of Rs. 5,000 no mortgage or valuable security ill be necessary.(b)the Apex Bank or any other financing bank may grant loans to any affiliated co-operative land mortgage bank up to twenty times the amount of share capital paid by the land mortgage bank ;(c)the Apex Bank may advance loans to an affiliated society engaged in the purchase of production and disposal of goods of its members in excess of ten times the share capital paid up by such society ;(d)an agricultural society may grant loans to its members repayable within a period of twelve months for facilitating the production or disposal of produce, irrespective of the amount of the share capital paid up by such member with the previous permission of the Registrar and under such conditions as he may impose.
