CAP. 33]
Co-operative Societies.
[r. 44 cont.] necessary then, on approval by the Registrar, such loan may be made to the member without sureties or other security.
Purposes of loans.
Documents relating to loans.
Restrictions on loans to defaulters. -
Extensions of loans.
Misapplication of loan.
Recovery of loans.
45. (1) No loan shall be made except for a purpose to be approved in each case by the committee.
(2) All loans made shall be applied by the borrowing members to such purpose as the committee has approved.
46. When a loan is sanctioned by the committee a notice shall be sent to the borrower to that effect, and, before the amount is advanced, the borrower (and his sureties if any) shall execute an instrument in writing setting out the terms of repayment of the loan and containing such other terms and conditions as the committee may consider necessary.
47. Where a member-
(a) is in default in the payment of a loan or of an instalment of a loan, and
(b) does not satisfy the committee that such default is due to a good cause,
such member shall not be entitled to receive another loan from the registered society.
48. If by reason of sickness or some other cause, a member finds that he will be unable to discharge his obligations to the registered society and notifies the secretary in writing before a loan is due the committee may extend the time fixed for payment on such conditions as it thinks fit.
49. Where the committee is satisfied that a member of the registered society who has obtained a loan has applied the proceeds thereof to a purpose other than the purpose which is stated in the application therefor under rule 43, the committee may, by notice in writing to the debtor, demand payment of the loan before the agreed date of payment.
50. Where--
(a) a loan or an instalment of a loan has not been paid on the date on which it became due, and
(b) no extension for the payment thereof has been given to the debtor by the committee under rule 48,
200
CAP. 33]
Co-operative Societies.
[r. 44 cont.] necessary then, on approval by the Registrar, such loan may be made to the member without sureties or other security.
Purposes of loans.
Documents relating to loans.
Restrictions on loans to defaulters. -
Extensions of loans.
Misapplica. tion of loan.
Recovery of loans.
45. (1) No loan shall be made except for a purpose to be approved in each case by the committee.
(2) All loans made shall be applied by the borrowing members to such purpose as the committee has approved.
46. When a loan is sanctioned by the committee a notice shall be sent to the borrower to that effect, and, before the amount is advanced, the borrower (and his sureties if any) shall execute an instrument in writing setting out the terms of repayment of the loan and containing such other terms and conditions as the committee may consider necessary.
47. Where a member-
(a) is in default in the payment of a loan or of an instal-
ment of a loan, and
(b) does not satisfy the committee that such default is
due to a good cause,
such member shall not be entitled to receive another loan from the registered society.
48. If by reason of sickness or some other cause, a member finds that he will be unable to discharge his obliga- tions to the registered society and notifies the secretary in writing before a loan is due the committee may extend the time fixed for payment on such conditions as it thinks fit.
49. Where the committee is satisfied that a member of the registered society who has obtained a loan has applied the proceeds thereof to a purpose other than the purpose which is stated in the application therefor under rule 43, the committee may, by notice in writing to the debtor, demand payment of the, loan before the agreed date of payment.
50. Where--
(a) a loan or an instalment of a loan has not been paid
on the date on which it became due, and (b) no extension for the payment thereof has been given to the debtor by the committee under rule 48,
200
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