Restrictions on Incurring Liabilities

The Society may receive deposits from its Members and raise loans for such purposes, for such period, at such rate of interest and on such terms and conditions as may be decided by the Committee, subject to the provisions of the Act, the Rules and Government directives issued from time to time.

(i) The Society shall not incur liabilities exceeding the limits prescribed under Rule 106C-10 of the Maharashtra Co-operative Societies Rules, 1961. Accordingly, the total liabilities of the Society shall not, at any time, exceed ten times the aggregate of— (a) the paid-up share capital; (b) the accumulated reserve fund; (c) the amount contributed by Members towards land and building; and (d) the building fund; after deducting accumulated losses, if any.

(ii) Provided that, in case of self-redevelopment of the Society's building or buildings, the Society may incur liabilities or borrow funds up to ten times the value of the land, as determined by a Government-approved valuer, subject to prior approval of the General Body and compliance with the provisions of the Act, Rules and Government directives issued from time to time.

(iii) All borrowings, deposits and liabilities shall be placed before the General Body for its approval and shall be incurred and utilised strictly in accordance with the provisions of the Act, the Rules and Government directives.