54. Utilisation and investment of reserve fund
(1) A society shall, in addition to the modes specified in clauses (a) to (d) of Section 70, invest or deposit its reserve fund in any one or more of the following permitted modes namely—
(i) In the case of Primary Societies in the Central Financing Agencies,
(ii) In the case of Central Co-operative Banks and Urban Banks in the State Cooperative Bank.
(iii) In debentures issued by the Apex Land Development Bank or in Government loans, or
(iv) In any immovable property specified by the Registrar by a general or special order: Provided that, in the case of a society whose reserve fund is equal to or more than its paid-up share capital, the Registrar may, by general or special order, permit that society to invest that portion of the reserve fund which is in excess of its paid-up share capital, or a portion thereof, in its business :
Provided further that, in the case of Central Co-operative Banks and the State Co-operative Bank, the Registrar may, by general or special order, authorise such Banks to invest fifty per cent of their reserve fund in their business.
(2) No 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.
(3) In the case of a society constituted with the object of co-operative housing on a co-partnership basis, the reserve fund may be utilised for expenditure on the maintenance, repair, and renewal of buildings of society.
(4) In the case of a processing society the reserve fund may be utilised in the acquisition, purchase or construction of lands, buildings and machinery.