Section 37 in The M.P. Co-Operative Societies Act, 1960
37. Restrictions on loans.
(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.](2)Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.(3)The Registrar may, by general or special order, prohibit or restrict the lending of money on the security of movable property or on the mortgage of immovable property by any society or class of societies.(4)[ If an officer or employee of a society entrusted with the work of making an entry of any transaction of loans, advances and recoveries thereof in the "Bhoo-Adhikar Avam Rin-Pustika" referred to in sub-section (1-A) fails to make such entry in the said Pustika, the Registrar may by order impose a penalty on him of any amount not exceeding rupees five hundred. The order imposing a penalty shall be enforced in accordance with the provisions of Section 85.] [Inserted by M.P. Act No. 14 of 1976.]
