Section 124 in Mizoram Cooperative Societies Act, 2006
124. Establishment of co-operative credit equalization fun.
(1)Every co-operative bank coming under the purview of Section 120 shall establish a fund to be called Credit Equalization Fund' of concerned co-operative bank consisting of payments made in to it as provided or specified under sub-section 2 or 3 or both.(2)The state government. with or without the contribution made by central government may, contribute a one time lump sum contribution to the 'credit equalization fund' as referred under sub-section (1) of such co-operative banks whose Financial conditions are precarious, hence in need of government contribution at such rate as may e determined by the government.(3)Every co-operative bank after providing for reserve fund, dividend, education fund and contribution for public purpose shall set aside a sum of not less than 15% of its profit and transfer it into the said co-operative 'credit equalization fund'.(4)The co-operative 'credit equalization fund shall be maintained as per the rules to be framed by the Registrar in consultation with state co-operative bank, district central co-operative banks as and when formed and urban co-operative banks with the previous approval of Reserve Bank of India.(5)For the purpose of sub-section (4), the failure or refusal to reply within the period specified therein by state. co-operative bank, district central co-operative bank as and when formed, urban co-operative banks and Reserve Bank of India shall be deemed to have consented to the rules framed by Registrar and come into force on the expiry of such date specified therein.(6)In cases where the co-operative bank ceases to function, the amount of the said fund shall be paid to the depositors as the Registrar may determine i~ consultation with the Reserve Bank of India and general body Meeting of such co-operative Bank.
