Section 16 in Jharkhand Co-operative Societies Act, 2008
16. Restrictions on lending.
(1)No co-operative society shall, except with the general or special sanction of the Registrar and subject to such restrictions as he may impose,(a)make a loan to any person other than a member, or(b)lend money on the security of movable property.Provided that if any reference is received, the Registrar shall dispose off the reference within three months of its receipt.(2)The State Government may, in registered co-operative society or class of registered co-operative societies prohibit or restrict the lending of money or mortgage of immovable property, by general or special order(3)Where the Registrar has accorded sanction to a financing bank under the provisions of sub-section (1), a registered society which is a member of such financing bank may, subject to the terms of the sanction and such other terms and conditions as may be prescribed by the Registrar, act as agent for the financing bank and as such agent carry out, with or without any commission, all or any transactions connected with loans or advances made or to be made by the financing bank.Provided that a self supporting co-operative society shall make loans to its members or to non members and shall lend money on the security of movable or immovable property, subject to the approval by the general body.
