Section 53. Reserve Fund

(1) Every registered co-operative society shall maintain a Reserve Fund formed from its profits and carry to the fund in each year not less than twenty five per cent of its net profit. (2) The Reserve Fund shall be invested separately in any of the ways prescribed in section 52 of this Act or with the sanction of the Registrar, in immovable property required for the furtherance of the activities Oof the co-operative society. Any such investment shall be deemed to constitute Reserve Fund. No instrument securing a loan on a Reserve Fund shall be valid. (3) The Reserve Fund shall not be utilized for any purpose whatsoever except in exceptional circumstances as specified in the rules only in exceptional circumstances.