Section 31 in Jammu and Kashmir Co-operative Societies Rules, 2001
31. 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 share in it.(2)A Co-operative Society shall not invest or deposit its reserve fund except in one or more of the modes mentioned in clause (a) to (d) of section 59 of the Act:Provided that the Registrar may by general or special order, permit any Co-operative Society or any class of Co-operative Society to invest the reserve fund or a portion thereof in its own business.(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.
