(1) A Co-operative may, in the interest of its members and towards the fulfillment of its objectives, create reserves and such other funds as are specified in the articles of association or resolved on by the general body.
(2) Funds so created may be used in the business of the co-operative, but at the end of every year, on that portion of each fund which was not applied for the purpose for which it was created, the co-operative shall credit to the account of such fund an annual interest, not less than at the rate paid by scheduled banks on long term fixed deposits, debiting such interest as operational expenditure.
First charge 42. Notwithstanding anything contained in any law for the time being in force, any claim of the Government in respect of land revenue, any debt or other amount due to a co-operative by any member shall be a first charge upon such properties of the member as agreed to by the co-operative, and as the member may declare in the manner specified in the articles of association, at the time of membership, and subsequently thereafter.
CHAPTER VI ACCOUNTABILITY Accounts, records and documents to be maintained