Section 41 in The Bihar Co-operative Societies Rules, 1959
41. Loans to members.
(1)Loans may be granted by registered society to its members only to such extent and for such purposes and on such terms and conditions as are laid down in the bye-laws and subject to such direction not inconsistent with the bye-laws as may, from time to time, be issued by the Registrar.(2)If a registered society issued a requisition on any other registered society for the realisation of the loan advanced to any member or the interest thereon, it shall be incumbent on the latter society to deduct the same from any money belonging to such member with the latter society after setting of its own dues, if any, against the member.(3)An application for loan by a member of a registered society shall be in Form IX and shall contain a declaration to the effect that the applicant pledges his property to the society for any debt due or advance to be made to him by the society subsequent to his admission as a member thereof;Provided that the State Government may exempt any class or classes of society from the operation of this sub-Rule.
