Section 76 in Tamil Nadu Co-operative Societies Rules, 1988
76. Conditions for making loan and providing over drafts, etc., to depositors by financing bank.
(1)No loan on the security of gold jewels and silverware shall be made or overdraft or discounting of bills and cheques shall be allowed to a person unless he is admitted as an associate member.(2)The unit rate and conditions subject to which loans may be made on the security of gold jewels and silverware shall be such as the Registrar may fix. The limit up to which such loan can be granted to a depositor shall be such as may be fixed by the National Bank for Agriculture and Rural Development.(3)Ne-person shall be allowed overdraft or discounting facilities unless he is a depositor with the financing bank for a period of one year.(4)The limit of such overdraft or discounting of bills shall not exceed four times the average of the deposits maintained by the depositor prior to the date of application subject to the limit as may be fixed under sub-rule (2).(5)No cheque shall be discounted for a period exceeding fifteen days and no bill shall be discounted for a period exceeding thirty days.(6)In the case of overdraft, there shall be remittances of not less than one fourth of the limit every month. The outstanding under the overdraft shall be brought down to less than fifty per cent of the limit at least once in a quarter and the period of overdraft shall not exceed one year before which the entire overdraft shall be cleared.(7)Subject to the other provisions contained in this rule, overdraft may be renewed every year:Provided that the limit of such overdraft renewed for a year shall not exceed one fourth of the total remittances made into the overdraft account during the year immediately preceding the year to which the renewal relates.(8)The total amount of outstanding at any time under the loans on the security of gold jewels and silverware, overdraft and discounting of bills and cheques shall not exceed such percentage of the total time and demand liabilities as the National Bank for Agriculture and Rural Development may specify in this regard.(9)The board of the financing bank may impose such other terms and conditions that maybe necessary to safeguard its interest, while making loan on the security of gold jewels and silverware to, or providing overdraft to, or discounting of bills and cheques of a depositor.
