Section 51
Islamic financing or credit facility by co-operative society
of Co-Operative Societies Act 1993
No co-operative society shall grant any Islamic financing or credit facility except to its members, its employees including the chief executive officer as provided in their schemes of service, its subsidiary as provided under subsection 19(2), or another co-operative society as may be approved by the Commission, and such Islamic financing or credit facility shall be subject to the directives or guidelines issued by the Commission and by-laws of the co-operative society.
(2)
Subsection (1) shall not apply to a co-operative society that is permitted to grant any Islamic financing or credit facility given—
(a)
in the course of its business as provided in any other written law governing its operations; or
(b)
in accordance with its by-laws.
(3)
The Commission may, by order, prohibit or restrict the lending of money on a charge or mortgage of immovable property by any co-operative society or class, category or description of co-operative society.