Section 44 in The Orissa Co-operative Societies Rules, 1965
44. Object and Investment of Reserve Fund.
(1)The reserve fund maintained by a Society shall belong to the Society as a whole and is intended to meet unforeseen losses. It shall be indivisible and no members shall have any claim to a share in it.(2)(i)A credit Society shall invest its reserve fund with a Central Cooperative Bank.(ii)A Central Co-operative Bank shall invest its reserve funds with the Orissa State Co-operative Bank Ltd.(iii)A Primary Land Development Bank shall invest its reserve fund with the Orissa State Land Development Bank.(iv)Any other Society shall invest its reserve fund in the manner described in Section 57 :Provided that the Registrar may, by general or special order permit any Co-operative Society or any class of Societies to invest their reserve fund or a portion thereof in different manner.(3)No Society shall draw upon pledge or otherwise employ any part of its resource funds, except with the sanction of Registrar previously obtained.(4)In the event of a Society being liquidated, Reserve Fund may be utilised towards the net outstanding liabilities of the Society and the balance, if any, may be utilised in the manner provided in Section 76.
