State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

62. Funds of the Federal Co-operative. (1) The Federal Co-operative shall constitute a fund called “Federal Co-operative Fund”. (2) The Federal Co-operative Fund shall consist of,- (i) interest free initial loan of a sum of rupees ten lakhs made by the Government which is repayable within a period of ten years by the Federal Co-operative to Government; and (ii) contributions made by each member Co-operative 1[every cooperative year]1 at such rates specified in the bye-laws of the Federal Co-operative. (3) The Federal Co-operative shall also maintain a Co-operative Education Fund. (4) If any member Co-operative fails to make the contribution towards the Federal Co-operative Fund without prejudice to any action to which such member Co-operatives is liable under section 68, such Co-operative shall not have a right to vote and contest for any office in the general body meeting of the Federal Co-operative.