State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

1[17. Mobilisation of Funds.- A Co-operative may subject to the jurisdiction and such conditions as specified in its bye-laws mobilise funds in the form of share capital, deposits, debentures, loans and other contributions from its members 2[and other than deposits from any other financial institutions and organisations.]2 Provided that a Co-operative shall not be eligible to receive any loan, subsidy, grant or financial aid in any form from the Government or any guarantee by the Government. Provided further that nothing contained in the first provision shall apply to a Co-operative Bank]1 3[Provided also that no Souharda Co-operative societies undertaking credit activities shall not utilize the mobilized deposit for non-credit activities other than lending and investments.]3