A cooperative society cannot borrow from the non-members beyond the credit limit fixed by the general body, based on audited accounts. The committee society is competent to fix the maximum credit limit of an individual borrower. The Registrar may reduce or increase the MCL at the time of according his app on which an application may be made in the format given at Appendix. Good stuff on priority of contributions assessed by liquidator can be seen here. MCL is fixed by the general body in terms of following rules societies in this group are classified as and according to the made after each audit by the auditor. For class society the MCL cannot exec times the paid up share capital plus accumulated reserves and undistributed profits the total losses and loans falling overdue payable to financing bank and other agent class of society which cannot exceed five times the paid up share capital and accumulated reserves and undistributed profits minus the total loss and loans falling. You can get fantastic knowledge on credit cooperative society through our blogs. Financing bank and other agencies. class of societies and newly ladles the MCL cannot exceed three times the paid up share capital less loss criteria for determining the classification of societies into it and are laid down in Schedule VI to the Rules. Societies pieties can borrow against hypothecation or pledge of goods and Mel cannot greater of paid up share capital, accumulated reserves run distributed profits of goods hypothecated .the registrar or the arbitrator, as the case may be, shall hear the parties and witnesses who attend and record the evidence. On the basis of such evidence and after consideration of any documentary evidence that may be produced by either party, he shall give and good conscience. The decision or award shall be reduced to writing, pronounced to the parties and filed in the office of the registrar. In the absence of any party duly summoned to attend and served, the dispute may be decided expert. In the matter of grant loans to societies by the Financing Bank or to members by primary co-operative societies, the Registrar may lay down. With the approval of the Financing Bank. the procedure regarding receiving applications, assessing needs, making inquires in respect of the production program for which such loan is required and the procedure to finally sanctioning the loan as also the rates of finance to be followed from year to year and the nature of inquiries to be made for the purpose of financing of different crops and imposition of certain conditions regarding proper utilization of loan and sale of agriculture multi state cooperative society produce through specified co-operative organizations.