Reserve fund.
Section 81
SEC. 81. Reserve fund.— Every co-operative shall create and maintain in the following manner a reserve fund for the stability of the co-operative and to meet losses in its business: At the close of each business year, twenty per centum of the net savings, as reflected in its audited financial statements and computed as prescribed in the regulations, shall be transferred to the reserve fund. The members may at a general assembly increase, or, if such fund equals the subscribed capital, may decrease the proportion of the net savings to be thus set aside. Whenever the reserve fund does not equal the subscribed capital, it shall be replenished by regular appropriations in such amounts or in such percentages required to equal the subscribed capital; The by-laws may provide that certain given fees or fines, or a portion thereof, shall be set aside for the reserve fund; and Any sums recovered on items previously charged to the reserve fund shall be credited to such fund. The reserve fund shall not be utilized as working capital or for investment other than those mentioned, in section seventy-six except with the written sanction of the Administrator under conditions to be, prescribed. Such sums of the reserve fund set apart in excess of the amount equal to the subscribed capital may, with the written approval of the Administrator, be appropriated at any time by resolution of the members for the purposes specified under subsection (4). Any loss sustained by a co-operative may be charged to its reserve fund with the approval of the general assembly. On the dissolution of the co-operative, the reserve fund shall not be divisible among the members. The members' general assembly may resolve: To contribute the reserve fund to any federation of co-operatives operating in the area of the co-operative for the improvement of the Co-operative Movement, and/or To donate, contribute or otherwise dispose of the amount for any purpose which would improve the economic and social condition of the community in the area of the co-operative. If the members do not meet or cannot decide upon the disposal of the reserve fund, the Administrator shall dispose of it in accordance with the purpose of this subsection.