Section 29 of The Co-operative Societies Act, 1912
- (1)A registered society shall not make a loan to any person other than a member: Provided that, with the general or special sanction of the Registrar, a registered society may make loans to another registered society.
- (2)Save with the sanction of the Registrar, a society with unlimited liability shall not lend money on the security of moveable property.
- (3)The State Government may, by general or special order, prohibit or restrict the lending of money on mortgage of immoveable property by any registered society or class of registered societies.
Summary
- This provision restricts a registered society from making loans to anyone who is not a member of that society.
- A society can lend to another registered society, but only with the general or special sanction of the Registrar.
- A society with unlimited liability is forbidden from lending money on the security of moveable property, unless the Registrar approves.
- The State Government holds the power to prohibit or restrict societies from lending money on the mortgage of immoveable property.
Practical examples
FAQ
1. Who can get a loan under Section 29 of The Co-operative Societies Act, 1912?
Under Section 29 of The Co-operative Societies Act, 1912, a registered society can only give loans to its members. However, it can loan money to another registered society if the Registrar gives special or general permission.
2. Can a society give a loan based on movable property according to Section 29 of the 1912 co-op law?
Section 29 of the 1912 co-op law states that a society with unlimited liability cannot lend money using movable property as security. They can only do this if they get permission from the Registrar.
3. Are there limits on mortgage loans in Section 29 of the Co-operative Societies Act?
Yes, Section 29 of the Co-operative Societies Act allows the State Government to stop or limit societies from lending money based on mortgages of immovable property, meaning real estate.
Test yourself
Q1.What is the primary restriction on lending established by Section 29 of The Co-operative Societies Act, 1912?
Q2.Under Section 29 of The Co-operative Societies Act, 1912, what is required for a registered society to lend money to another registered society?
Q3.According to Section 29 of The Co-operative Societies Act, 1912, what restriction applies to a society with unlimited liability regarding collateral?
Q4.Which authority has the power under Section 29 of The Co-operative Societies Act, 1912 to prohibit a society from lending money on the mortgage of immoveable property?