Section 16 in The Bihar Co-operative Societies Act, 1935
16. Restrictions on lending.
(1)Except with the general or special sanction of the Registrar and subject to such restrictions as he may impose, a registered society shall not-(a)make a loan to any person other than a member, or(b)lend money on the security of movable property.["Provided if any reference is received, the Registrar shall dispose of the reference within three months of ifs receipt."] ['Proviso' added by (Amendment) Act 10 of 2002.](2)The State Government may, by general or special order, prohibit or restrict the lending of money or mortgage of immovable property by any registered society or class of registered societies.(3)[ Where the Registrar has accorded sanction to a financing bank under the provisions of sub-section(l), 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.] [Inserted by Act 16 of 1948.]
