A cooperative may from time to time charge the whole or any part of its property if its expressly empowered by its bylaws subject to approval by the annual general meeting. Such charge shall comply with the provisions of the law applicable to it. It is the duty of every cooperative to register with the registrar every charge created and its particulars. Provided that registration of a charge may be effected on the application of any person interested and where the registration is effected in this way, the person registering shall recover from the society the fees paid for registration. If any cooperative fails to send to the Registrar for registration the particulars of any charge created within the prescribed time then, unless it has been effected by some other person the society and every officer thereof shall be guilty of an offence and liable to a fine.
The registrar shall with respect to each society register in such a form as may be prescribed by or under the Act all charges requiring registration and enter in the register with respect to each of them the following particulars:
1. If the charge is one created by the Society, the date of its creation and if the charge was a charge on existing society property, the date of the acquisition of the property;
2. The amount secured by the charge;
3. Short particulars of the property charged;
4. The persons entitled to the charge;
The registrar is required to issue a certificate of registration stating the amount secured and this shall be conclusive evidence that the requirements of the Act have been complied with. That register shall be open for inspection by any interested person on payment of the prescribed fee. The registrar is required to keep a chronological index in the prescribed form and containing the prescribed particulars of the charges entered in the register. Once he receives evidence to his satisfaction that the date for which any registered charge was given has been satisfied or paid, he shall order that a Memorandum of Satisfaction be entered on the register and shall furnish the society concerned with a copy.
If any person obtains an order for the appointment of a receiver or manager of the property of a society or if the registrar appoints such a receiver or manager under any powers contained in any instrument he shall within 7 days from the date of the order or of the appointment give written notice of that fact to the registrar who shall enter the notice in the register of charges. Where such appointed person ceases to act he shall give written notice of the fact to the registrar who shall enter the notice in the register of charges.
Failure to comply with these requirement the person who has failed to do so is guilty of an offence and liable to payment of a fine.
Every society is required to cause a copy of every instrument of charge requiring registration to be kept at its registered address. At that address there shall be kept a register of charges, the property affected and also of floating charges on the property or assets of the society and particulars of the property charged, the amount of the charge and the name of the person entitled thereto.
Failure by any officer of the society to make the entries in any register, he shall be guilty of an offence and liable to a fine.
All charges kept at the registered office shall be open for inspection by any creditor or member free of charge subject to such reasonable restrictions as the society in general meeting may impose. Failure or refusal to allow inspection of the register of charges is an offence.