(1) A co-operative society shall have a charge upon the share or interest in the capital and on the deposits of a member or a past member and on any dividend, bonus or profits payable to a member or a past member in respect of any debt or outstanding demand owing to the cooperative society and may set off any sum credited or payable to a member towards payment of any such debt or outstanding demand:
Provided that no financing bank to which a co-operative society is affiliated shall, have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
(2) Subject to the provisions of sub-section (1), the share or interest of a member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt, or liability incurred by such member or past member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.