Section 50: Restrictions on loans.

(1) A co-operative 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 co-operative society may make a loan to another co-operative society.

(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security.