Section 44(2) in The Meghalaya Co-operative Societies Act
(2)(a)Notwithstanding the provisions of sub-clauses (1)(b) and (e) a loan may be given on personal security ; provided that the managing body of the society is satisfied as to the credit of the borrower and has taken from him a scheme for the utilisation of the loan and has ascertained the truth of the statements contained in the scheme and the bona fides of the borrowing member.(b)The resolution of the managing body granting a loan under this section contain the names of all assenting members ; provided that, if such names are omitted from the proceedings of the meeting the Chairman and Secretary shall be held jointly and severally responsible for the issue of the loan.(c)Notwithstanding the provisions of sub-clauses (1)(b) to (f) and (2)(a) and (b), a registered society may issue a loan on mortgage or valuable security.(d)No person shall be accepted as a surety for any borrower unless he is also a member of the same registered society.
