Section 165 in The U.P. Co-operative Societies Rules, 1968
165.
The reserve fund in a co-operative society with limited liability shall be invested in one or more of the modes mentioned in Rule 173:Provided that where the reserve fund of a co-operative society exceeds twenty per cent of its working capital, the excess may, with the sanction of the Registrar, be utilised in the business of the society:Provided further, that when a co-operative society is prohibited by its bye-laws from borrowing either from its members or from others and has no out-side liability, the Registrar may permit the society to utilise up to seventy-five per cent of its reserve fund in its business.
