Loan by director

Deposit does not include any amount received from director of the company provided the director from whom the money is received furnishes to the company a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.

In the said case if the director makes a declaration that the loan given to the company is from the borrowed funds then in my opinion it would termed as deposits.

Members view solicited.