Section 103: Stabilisation Fund

1) Savings and Credits Sectoral Organisations may together desire a stabilisation fund to protect themselves from the probable risks of their operational losses.

2) The fund referred to in sub-section (1) may have the contribution of desirous Cooperative Organizations, Cooperative Organizations which are members of Savings and Credits Sectoral Central Organization, National Cooperatives Federation, National Cooperatives Bank, National Cooperatives Development Board, Nepal Rastra Bank, Ministry, other agencies of Government of Nepal and international cooperative associations.

3) The Stabilisation Fund shall be located at the Savings and Credits Sectoral Central Organisation.

4) For the operation of the Stabilisation Fund, a Governing Board shall consist of representatives from the Savings and Credits Sectoral Central Organisation, National Cooperatives Bank, National Cooperatives Federation, National Cooperatives Development Board, Nepal Rastra Bank, the Ministry of Finance, and the Department.

5) The participating organisations may deposit the amount prescribed after allotting the amount for the Reserve Fund pursuant to Section 68 in the Stabilisation Fund.

6) The Stabilisation Fund shall be deposited in an account opened in the prescribed Bank.

7) The Stabilisation Fund may be utilised for the following purposes:

(a) To maintain liquidity in the participating organisations and to land to maintenance for problematic cooperatives,

(b) To bear the expenses of the Management Committee formed pursuant to Section 105 when a participating Organisation becomes problematic,

(c) In case a participating Organisation becomes problematic and the Federation has taken over its operational responsibility pursuant to clause (d) of Section 114, to utilise in bearing liabilities of such an Organisation and to re-operate it,

(d) To bear the expenses of the Stabilisation Fund Governing Board and to utilise it in other functions as prescribed.

8) Other matters relating to the operation of the Stabilisation Fund shall be as prescribed.