(1) The University shall establish a fund to be called the University Fund.
(2) The following shall form part of, or be paid into, the University Fund-
(a) any contribution or grant made by the State or Central Government, University Grants Commission, All India Council for Technical Education or any other authority ;
(b) the income of the University from all sources including income from fees and charges and sale proceeds, if any ;
(c) all income or moneys from trusts, subventions, bequests, donations, endowments and other grants, if any, received by the University ; and
(d) any sum borrowed from the banks or any other agency, with the permission of the State Government.
(3) The University Fund shall, at the discretion of the Executive Council, be kept in the State Bank of India, or in any Scheduled Bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), which holds a license issued by the Reserve Bank of India under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or in Co-operative Bank approved by the State Government for the purposes of the University, or be invested in securities authorized by the Indian Trusts Act, 1882 (2 of 1882), or, subject to the maximum limit of rupees five lakhs, in the Unit Trust of India or in the shares of, or by giving loans to the consumers' Co-operative Societies established for the purposes of the University, or any recognized institution.