Section 37(1) in The M.P. Co-Operative Societies Act, 1960
(1)No society shall make a loan to-(a)any person who is not a member;(b)any member on the security of its own shares;(c)any member on the security of a non-member :[Provided that a society may make loans to another society and/or nominal member as provided in the bye-laws of the society.] [Substituted by M.P. Act No. 12 of 1994 [w.e.f. 8-5-1994].][(1-A) A society making a loan to its members who have been provided with "Bhoo-Adhikar Avam Rin Pustika" prescribed under Section 114-A of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959) shall enter all transations of loans; advances and recoveries thereof in the aforesaid Bhoo-Adhikar Avam Rin Pustika.(1-B) Notwithstanding anything contained in this Act, rules made thereunder and bye-laws of the society, in case of an omission in making entry of a loan or advance made to members of the society, it shall be presumed that no such loan or advances have been made unless proved otherwise by the society.] [Inserted by M.P. Act No. 14 of 1976.]
