Society may make advances to members on security only of their uncharged shares

It shall be lawful for any society to make advances to members out of its funds on the security only of their uncharged shares, and the money paid thereon in accordance with the rules of the society which shall provide that such loans shall not exceed four-fifths of the amount actually paid in by such members on account of such shares and that when the amount so lent as aforesaid and interest and other moneys due thereon shall equal the amount standing to the credit of the share or shares of such member or members in the books of the society his, her or their share or shares shall be cancelled to meet the indebtedness aforesaid to the society and such borrower or borrowers shall cease to be a member or members of the society in respect of such share or shares.