Section 37 in Andhra Pradesh Co-Operative Societies Rules, 1964
37. Object and investment of reserve fund.
(1)A reserve fund maintained by a society shall belong to the society and is intended to meet unforeseen losses. [No member shall have any claim to share in it] [Substituted by G.O.Ms. No. 2804. F & A. (Leg.), dated 24-11-1965.].(2)A society shall invest or deposit its reserve fund in one or more of the modes mentioned in Section 46:Provided that when 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, utilize the whole of its reserve funds 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)No society whose reserve fund has been separately invested or deposited shall draw upon pledge or otherwise employ such funds, except with the sanction of the Registrar previously obtained in writing.
