(1) No credit cooperative society with unlimited liability shall be registered after the commencement of Cooperative Society Act. Provided that where a multi state cooperative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi state cooperative society with limited liability by following the procedure specified in sub-sections (2) to (4). (2) Subject to the provisions of this Act and the rules, a multi state cooperative society may, by an amendment of its bye-laws, change the extent of its liability. (3) When a multi state cooperative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract t the contrary, any member or creditor shall, during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares deposits or loans, as the case may be. (4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have assented to the change. (5) An amendment of a bye-law of a multi state cooperative society change in the extent of its liability shall not be registered or shall not take effect until either (a) the assent thereto of all members and creditors has been obtained; or (b) all claims of members and creditors who exercise the option referred t in sub-section (3) within the period specified therein have been met in full or otherwise satisfied. A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Outside of accounting and finance this term simply refers to any money or service that is currently owed to another party. One form of liability, for example, would be the property taxes that a homeowner owes to the municipal government. Joint and several liability of a cooperative bank to Deposit Insurance and Credit Guarantee Corporation refers to the status of those who are responsible together as one unit as well as individually for their conduct. The person who has been harmed can institute a lawsuit and recover from any or all of the wrongdoers but cannot receive double compensation, for instance, the full amount of recovery from each of two wrongdoers.