Section 44(1) in The Meghalaya Co-operative Societies Act
(1)A registered society shall not give loans-(a)to any person other than a member except with the general or special sanction of the Registrar ; provided that a loan may be given to a depositor of the society out of the security of his deposit; or(b)to a member in excess either of the maximum or of the normal credit determined by the society for that member in accordance with its bye-laws ; provided that in assessing normal credit the managing body shall take a full statement as to the member's means of earning;(c)on the security of movable property or future movable property, unless the movable property is pledged with the society ;(d)on personal security without sureties, unless the borrowing member has unencumbered immovable property or attachable funded assets sufficient to cover the loan and a full statement of such securities is submitted by the borrower and the truth of the statement is ascertained by the managing body;(e)on personal security with sureties unless the borrowing member and his sureties together have unencumbered immovable property or attachable funded assets sufficient to cover the loan and a full statement of such securities is submitted by the borrower and the sureties separately and the truth of the statement is ascertained by the managing body;(f)on personal security with or without sureties unless the loan is for a short period and not exceeding the time required to reap the benefit of the loan and in no case exceeding three years.
