No society other than those referred in Rules 36 and 37 with limited liability shall, without the previous sanction of the Registrar, incur liability exceeding in total ten times the total amount of its paid up share capital, accumulated reserve fund and building fund minus accumulated losses :

Provided that central banks, urban banks, Urban Co‐operative Credit Societies, Rural Co‐operative Credit Societies and producers' societies shall not except with the previous sanction of the Registrar, incur liabilities exceeding twelve times the total of their paid up share capital, accumulated reserve fund and building fund minus accumulated losses.

Explanation: ‐ In calculating the total amount of liability for the purposes of this sub-rule, in the case of any society or class of societies the by-laws of which permit borrowing or granting credit facilities on the pledge of agricultural produce or other goods specified in that behalf by the Registrar, by general or special order, a sum equal to the amount borrowed by such society or class of societies, on the security of agricultural produce or other goods of such society or its members, shall be excluded from the amount of the actual liability under this rule.

Any society may incur liabilities in excess of the limit specified in sub-rule (1) by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the society but shall be invested in Government securities which, in the case of Central Banks, shall be deposited with the Maharashtra State Co-operative Bank and, in case of other co-operative banks, with the Central Banks. No society shall borrow against such securities.

Provided that, nothing in this sub-rule shall apply to the Co‐operative credit structure entity, and such entity may adopt it's own policy in conformity with the Reserve Bank of India guidelines:

Provided further that, Co&ash;operative Credit Structure entity shall utilize such excess amount received by means of deposit or borrowing loan as per the needs of its business:

Provided also that, Co‐operative Credit Structure entity may take a loan from any Reserve Bank of India regulated financial institution and refinances from National Bank or any other refinancing institution directly or through Reserve Bank of India regulated financing instifution of its chaoice.