Section 80 in West Bengal Co-operative Societies Rules, 2011
80. Restriction on borrowings of limited liability society.
No society with limited liability shall, by accepting deposits or loans or in any other way, incur liabilities exceeding twenty five times of the sum of the paid up share capital and the reserve fund for the time being separately invested outside the business of the society :Provided that(a)the West Bengal State Co-operative Agriculture and Rural Development Bank or the State Co-operative Bank or a Central Co-operative Bank for the purpose of financing a bank or society affiliated to it as the case may be, may incur liabilities to the extent of thirty times of the value of paid up share capital and the reserve fund for the time being separately invested;(b)with the permission of the Registrar and under such conditions as he may impose, the West Bengal State Co-operative Agriculture and Rural Development Bank or the State Co-operative Bank or a Central Co-operative Bank, or a central or a primary society may incur liabilities irrespective of the amount of its paid-up share capital and reserve fund separately invested outside the business, for the purpose of providing loans to its members for production, marketing and processing of any agricultural or industrial commodity and also for hypothecation or pledging of produce of the members;(c)with the permission of the Registrar and under such conditions as he may impose, a co-operative society may incur liabilities by way of loan or deposits from another co-operative society, repayable within a period of fifteen months irrespective of the amount of its paid-up share capital and reserve fund separately invested, if such liabilities are incurred on pledge or hypothecation of marketable security or goods or both and the amount of such liabilities does not exceed eighty per centof the market value of such security or goods or both, offered for pledge or hypothecation.[Provided further that nothing in this rule shall apply to a Co-operative Credit Structure Entity which shall receive deposits or borrow as per the limits sanctioned by its general body.] [Proviso added by Serial No. (18) of the Notification No. 3857-Co-op./H/2R-09/2012, dated 26th December. 2012, w.e.f. 1.2.2013.]
