Section 54(3) in The Karnataka Education Act, 1983
(3)The surplus fund of every such institution shall be invested in such manner as may be prescribed and shall be utilised towards educational development only.Explanation .- For the purpose of this section "surplus fund" means all the monies that remains unused with the institution at the beginning of each academic year, after providing for all the objects, needs, requirements or improvements of the institution during the previous three academic years.
