10
Liability of past member and
estate of
deceased
member for
debts of society.
Loans made by a registered society.
Deposits and loans received by a registered society.
Restrictions on other transactions with non-members.
Investment of funds.
Disposal of profits.
CAP. 33]
Co-operative Societies.
[1964 Ed.
29. (1) The liability of a past member for the debts of a registered society as they existed on the date on which he ceased to be a member shall not continue for a period of more than two years reckoned from that date.
(2) The estate of a deceased member shall not be liable for the debts of the society as they existed on the date of his decease for a period of more than two years reckoned from the date of his decease.
PART V.
PROPERTY AND FUNDS OF REGISTERED SOCIETIES.
30. (1) A registered society shall not, except as provided in section 33, make any loan to any person other than a member:
Provided that, with the consent of the Registrar, a registered society may make loans to another registered society.
(2) Except with the permission of the Registrar, a registered society shall not lend money on the security of any movable property other than produce or goods in which the society is authorized to deal.
(3) The Governor may, by general or special order, prohibit or restrict the lending of money on mortgage of any description of immovable property by any registered society.
31. A registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules or by-laws.
32. Save as provided in sections 30 and 31, the transactions of a registered society with persons other than members shall be subject to such prohibitions and restrictions as may be prescribed by the rules.
33. A registered society may invest or deposit its funds-
(a) in a post office savings bank, or with any bank or person carrying on the business of banking approved for this purpose by the Registrar; or
(b) in any securities issued or guaranteed by a Government within the Commonwealth; or
(c) with any other registered society approved for this purpose by the Registrar; or
(d) in any other mode approved by the Registrar.
34. (1) At least one-fourth of the net profits of every registered society, as ascertained by the audit prescribed by section 35, shall be carried to a fund to be called the reserve fund, which shall be employed as prescribed by the rules. After deduction of