(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, namely :-
(a) all contributions or grants made by the State Government, the Central Government, the Indira Gandhi National Open University and the University Grants Commission;
(b) all income of the University from any source whatsoever including income from fees and charges;
(c) all income or moneys from trusts, bequests, donations, endowments, subventions and other grants;
(d) any sums borrowed from the banks, with the previous permission of the State Government.
(3) The University shall have, and maintain, a Contingency Fund under a separate head in the University accounts, to which shall be credited such sums as may, from time to time, be granted as contributions or grant by the State Government specially for this purpose. Such Fund shall be used only for making advances for the purpose of meeting unforeseen expenditure.
(4) With the previous sanction of the State Government, any portion of the University Fund may, from time to time, be credited by the University to a separate head in the University accounts:
Provided that, there shall be credited and debited to such special head, only such sums as shall expressly relate to the objects for which such separate fund is created:
Provided further that, the Board of Management may, by passing a special resolution, authorise transfer of any amount temporarily from one head to another in the University accounts.
(5) The University Fund shall, at the discretion of the Board of Management, 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 licence issued by the Reserve Bank of India under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or in a Co-operative Bank approved by the State Government for the purpose, or be invested in securities authorised by the Indian Trusts Act, 1882 (2 of 1882), or, subject to the maximum limit of rupees five lakhs, in the shares of, or by giving loans to, the Consumers’ Co-operative Societies established for the purposes of the University, or recognised institutions.