State Act

The Himachal Pradesh Cooperative Societies Act, 1968

1[86-A. Powers of a financing bank to proceed against defaulting members of a co-operative society.- (1) If a co-operative society is unable to pay its debts to a financing bank according to the terms of agreement to this effect by reason of its members committing default in the payment of moneys due by them, the financing bank may direct the committee of such society to proceed against such members by taking action under sections 72, 73, 74, 75, 76, 86, 87, 89, 90 and 90-A of the Act. (2) If the committee of the co-operative society fails to proceed against its defaulting members within a period of ninety days from the date of receipt of such direction from the financing bank, the financing bank itself may proceed against such defaulting members in which event, the provisions of sections 72, 73, 74, 75, 76, 86, 87, 89, 90 and 90-A of the Act, the rules and bye-laws made thereunder, shall apply as if all references to the society or its committee in the said provisions of this Act, rules and the bye-laws were references to the financing bank. (3) After recovery of dues from the defaulter members of such society, the respective loan accounts of such members in the society and those of the society in the bank shall be credited proportionately by the society and the financing bank respectively.