Section 99 in Tamil Nadu Co-operative Societies Rules, 1988
99. Reserve fund.
(1)The reserve fund shall belong to the society as a whole and is intended to meet unforeseen losses. It shall be indivisible and no member shall have any claim to a share in it. It may be drawn upon with the special sanction of the Registrar to meet unforeseen losses.(2)A society shall not invest or deposit its reserve fund except in the modes mentioned in clauses (a), (b), (c) and (d) of section 68 subject to the proviso thereunder:Provided that when there the reserve fund of a 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 a society' not being a credit society, may, with the sanction of the Registrar, utilise the whole of its reserve fund in its business:Provided also that when a society is prohibited by its bye-laws from borrowing either from its members or from others, the whole of its reserve fund may be utilised in its business.(3)When the utilisation of the reserve fund of a society in its business is sanctioned by the Registrar under this rule, the financing bank, or the co-operative bank or the other society, as the case may be, shall, on the expiry of two months from the date of receipt of the sanction of the Registrar, refund the amount to the society with interest accrued thereon up to the date of refund without asking for any notice of withdrawal.
