s 68 Restrictions on borrowing
68.—(1) A society may receive loans from persons who are not members of the society only to such extent and under such conditions as may be prescribed by its by-laws and in the Rules. (2) A credit society must not receive any deposit from any person other than a member of the credit society, or the member’s immediate family member to such extent and under such conditions as may be prescribed by its by-laws. (3) A society which, under its by-laws, has power to borrow money is to determine from time to time at a general meeting —(a) the maximum liability which it may incur in loans from non-members; and (b) where the society is a credit society, the maximum liability which it may incur in loans or deposits from its members and their immediate family members. (4) Where the society is a credit society —(a) the maximum liability determined under subsection (3)(a) is subject to the Registrar’s approval; and (b) the Registrar may, at any time, reduce either or both of the maximum liabilities determined under subsection (3)(a) and (b) or impose such conditions (for either or both of those maximum liabilities) as the Registrar thinks necessary.[3/2018] (5) The Registrar must, before reducing either or both of the maximum liabilities determined under subsection (3)(a) and (b) or imposing any condition, give the credit society concerned —(a) notice in writing of the Registrar’s intention to do so; and (b) an opportunity to make written representations, within the time specified in the notice (being at least 14 days after the date of service of the notice), as to why the Registrar should not reduce the maximum liabilities or impose the condition, as the case may be.[3/2018] (6) The Registrar must issue the credit society a written notice of the Registrar’s decision whether to reduce either or both of the maximum liabilities determined under subsection (3)(a) and (b) or to impose any condition.[3/2018] (7) Where the Registrar decides to reduce either or both of the maximum liabilities determined under subsection (3)(a) and (b) or to impose any condition, the written notice in subsection (6) must specify a date at least 14 days after the date of the notice upon which the Registrar’s decision or condition is to take effect.[3/2018] (8) A credit society which is aggrieved by the Registrar’s decision under subsection (6) may, within 14 days after the date of the decision or such longer period as the Minister may allow in any particular case, appeal in writing to the Minister, whose decision is final.[3/2018] (9) If the credit society appeals to the Minister under subsection (8), the decision appealed against does not take effect unless the decision is confirmed by the Minister, or the appeal is withdrawn or is for any reason dismissed by the Minister.[3/2018] (10) In this section, unless the context otherwise requires —“immediate family member” has such meaning as may be prescribed; “loan”, in relation to a society, means —(a) the granting of an advance and other facility by a person to the society whereby the society has access to funds or financial guarantees; or (b) the incurring by the person of other liabilities on behalf of the society.