Section 18 in The Bihar Co-operative Societies Act, 1935
18. Reserve Fund.
- ["(1) At least twenty five percent of the net profits of a registered society shall each year be deposited to reserved fund provided that State Government may by Rule increase or decrease this proportion for work of any Society or class of Societies.] [Sub-section (1) substituted by (Amendment) Act 10 of 2002.](2)The reserve fund shall not be used in the business of the society except to such extent and in such manner as may be prescribed by the Rules.["(3) At least ten percent of the net profit shall be transferred to "Co-operative Education & Development fund" by all the registered societies.(4)In such registered societies where there is State contribution to share capital, at least ten percent of the net profit shall be transferred to an "Equity Redemption Fund" till such time the amount of this fund becomes equal to the share capital.] ['Sub-sections (3) & (4)' added by (Amendment) Act 10 of 2002.](5)[ Any portion of the reserve fund not used in the business of the society shall be invested or deposited in one or more of the ways specified in section 19 subject to such Rules as the State Government may make in this behalf.] ['Sub-section (3)' renumbered as (5) by Act 10 of 2002.][19. Investment of fund. - Subject to the provision of sub-section (2) of Section (16) a registered Society shall invest or deposit its funds-(a)in a Government Savings Bank or(b)in its own financing Bank or(c)in any of the securities specified in Section 20 of Indian Trust Act, 1882 (2 of 1882)(d)in securities specified by Reserve Bank of India, or(e)with the general or special sanction of the Registrar and on such conditions as he may impose.(i)In shares or securities of any other registered societies.(ii)In any Scheduled Bank or with the sanction of the Registrar in other registered societies carrying Banking business.(f)may invest or deposit in any other mode permitted by the Rules.]
