law: Multi-State Cooperative Societies Act, 1984 
  63. Restrictions on
  
  loans.- 
  
  1.     
  
    A
  
  multi-State Cooperative society, other than a cooperative bank, shall not make
  
  a loan -
  a.      to a member on the
  
  security or his share or on the security of a non-member; or
  b.     to a non-member;
  Provided
  
  that  
  
  with the general or special sanction of the Central Registrar, a multi-State
  
  cooperative society may make loans to another multi-State cooperative society.
  1.     
  
  
  2.     
  
    Notwithstanding
  
  anything contained in sub-section (1), a multi-State cooperative society may
  
  make a loan to a depositor on the security of his deposit.