Section 57 in Rajasthan Co-operative Societies Rules, 2003
57. Object and investment of reserve fund
(1) A reserve fund maintained by a co-operative society shall belong to the society and is intended to meet unforeseen losses. It shall be indivisible and no member shall have any claim to a share in it.(2)A co-operative society shall not investor deposit its reserve fund except in one or more of the modes mentioned in clauses (a) to (b) of section 49 of the Act:Provided that the Registrar may, by general or special order, permit any cooperative society or any class of co-operative societies to invest the reserve fund or a portion thereof in its own business:Provided further that in the case of a society constituted with the object of Co-operative Housing on a co-partnership basis, the Reserve Fund may be utilised for expenditure on the maintenance, repairs and renewal of the buildings of the society with the prior permission of the Registrar and in the case of a Processing Society the Reserve Fund may be utilised in the acquisition, purchase or construction of land, building and machinery:[Provided also that a short term co-operative credit structure society may invest or deposit its funds in any bank or financial institution regulated by the Reserve Bank of India.] [Added by Notification No. G.S.R. 73, dated 19.9.2011.](3)No co-operative society whose reserve fund has been separately invested or deposited shall draw upon, pledge, or otherwise employ such fund, except with the sanction of the Registrar previously obtained in writing.(4)The Reserve Fund of a society shall be available, with the sanction of the Registrar, for being utilised for any of the following purposes, subject to the conditions that the amount drawn shall be reimbursed as directed by the Registrar, unless the Registrar, dispenses with such reimbursement in special cases: -(i)to meet unforeseen losses incurred by the society;(ii)to meet such claims of the creditors of the society as cannot otherwise be met; and(iii)to provide for other financial needs in times of special scarcity.
