An application Section 85 by a Co-operative Society for a loan or subsidy or both from a Government (2) (xxxv) department or a Government sponsored agency shall be made through the and (xxxvi) Registrar. While forwarding the application, the Registrar shall record his opinion regarding the eligibility of the Co-operative Society for the said loan or subsidy or both, its financial position and the desirability of sanctioning to the society the said loan or subsidy or both.
33. Submission of information and returns by Co-operative Societies Section 85 having state participation;-A Co-operative Society receiving Government loan (2) (xxxv) or subsidy or a society in which a share or shares have been subscribed or liability by way of guarantee for borrowing exceeding fifty percent of the working capital of the society has been undertaken by the Government, shall furnish such information and submit such returns as the sanctioning authority on the Registrar may, from time to time, require.
Section 85 34. Reserve Fund:-(1) The Registrar may, from t ime to time, by a
(2) (xxxvi) general or special order, raise the proportion of profits to be carried to reserve fund under sect ion 41 from one tenth o f the net pro fit s to a limit not exceeding one-fourth of the net profits.
(2) The reserve fund of Co-operative Society or a class of Co-operative societies, may, unless the Registrar by special order otherwise directs to be invested under sect ion 44, be ut ilized in the business of the co-operat ive society.
(3) The reserve fund shall be indivisible and no member shall be entitled to claim a specified share in it :
Provided that in exceptional circumstances and with the prior approval o f t he Reg is t ra r , t he r eser ve fund ma y be ut i l ized in mee t ing lo sses
(4) No Co-operative Society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund’ except with the sanct ion of the Regist rar previously obtained in wr it ing.
Section 41 35. Payment of dividend or bonus-(1) In no Co-operative Society the and 85 (2) dividend shall exceed 10 per cent per annum on paid up share capital.
(xxiv)
(2) In a Co-operative Society with unlimited liability no dividend or bonus shall be paid until a period of five years has elapsed from the date of registration.
(3) No dividend shall be paid by the Co-operative society while any claim due from the Co-operat ive Society to a depositor or lender remains unsatisfied.
(4) The Registrar may, by a general or special order, direct that a Co-operative Society shall not pay dividend or shall pay dividend at a reduced rate so long as it receives loans and deposits from non-members.
Section 43 36. Creat ion of Co-operat ive Educat ion Fund-Every Co-operat ive and 85 (2) Society shall contribute such amount not exceeding two per cent as may be
(xxii) directed by the Registrar, from time to time, out of its net profits of the year to the Co-operative Education Fund to be a administered by the State Co-operative Union. The contr ibut ions payable by a Co-operat ive Society sha ll be a charge on funds of the Co-operative Society and shall be recoverable in the manner provided in section 63. The State Co-operative Union shall prepare regu lat io ns w it h t he approva l o f t he Reg ist rar fo r t he ut i l izat io n and administration of the fund.
Section 44 37. (1) Investment of funds-Besides the manner provided in section 44 [d) (e) and 85 a Co-operative Society may invest or deposit its funds or any portion thereof-
(2) (xxii) (a) in any bonds, certificates or loans issued by the Government or the Central Government ;
(b) i n d e be n t u r e s f lo a t e d by a C o - o p er a t ive So c ie t y ;
(c) with the previous sanction of the Registrar, in the purchase or lease of land or building or in the acquisition, construction or renewal of any building that may be necessary to conduct its business.
(2) The amount of the funds invested under clause (C) of sub-rule (1) Shall be recouped on such terms as may be determined in each case by the Registrar.
(3) The provisions of clause (c) of sub-clause (1) shall not apply-
(a) to immovable property purchased-
(i) by a Co-operative Society at a sale held in execution of a decree obtained by it, for the recovery of any sum due to it or
(ii) by a financing bank at a sale held in execution of a decree, obtained by a Co-operative Society financed by it, for the recovery of any sum due to such society or at a sale brought about by the liquidator of such society ; or
(b) to the purchase or lease for lands or purchase construction or renewal of buildings by a Co-operative Society whose object according to its bye- laws include such purchase, lease, construction or renewal.