57. No part of the funds of a society shall be divided by way of bonus of dividend or otherwise among its members;

Provided that after at least one-fourth of the net profit in the year has been transferred to the reserve fund. Payments from the remainder of such profits and from any profits of past years, if any, available may be made to the members by way of divided or bonus to such extent and subject to such conditions as may be prescribed by the rules or bye- laws.

58. A society may, with the sanction of the Registrar and after one-fourth of the net profits of the year has been transferred to the reserve fund, contribute an amount not exceeding five percent of he remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in section 20 of the

59. A society shall, out of its net profits in any year, contribute such portion of the profits not exceeding five per cent as may be prescribed to the Co-operative Education Fund constituted under the rules.

60.(1) A society may invest or deposit its fund

(a) in the post office savings bank;

(b) in any of the securities specified in section 20 of the Indian Trusts

Act, 1882

(c) in the shares or debentures or securities of any other society or

(d) with the financing bank ; or

(e) with any society or bank carrying on the business of banking as may be approved by the Register ; or

(f) in the bonds issued by itself ; or
 

(g) in any other mode permitted by the rules or by the Registrar

61. (1) As society shall not make a loan to any person other than a member; provided that with the general or special sanction of the Registrar a society may make loan to another society.
Provided further that a society may make such loans as may be specified in the bye-laws to any of its paid employees,

(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to depositor on the security of his deposit.

63. Save as provided in section 61 and 62 the transactions of a society with any person other than a member shall be subject to such prohibitions or restrictions, as may be prescribed.

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