chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Cooperatives Act 2074

Section 53: Capital

Section 54: Functions of Cooperative Bank
The Cooperative Bank shall, subject to this Act, the Rules Byelaws and other prevailing laws in force, carry out the following functions amongst the members of the Organization or Association in order:-
(a) To disburse credits to organisation or with association on the prescribed ratio as fixed and current capital for the purpose of agriculture, industries, services, trade, energy, tourism as well,
(b) To accept savings from members and to repay such savings,
(c) To enter into agreements with Association or the agencies of Organization or Government of Nepal or Provincial government agencies or local level being concentrated to members for development of development and promotion of cooperatives and to make joint financing,
(d) To issue a letter of guarantee on behalf of member Organization or Association, to accept mortgage or movable or immovable assets in lieu of such guarantee or accept assets guarantee with consent of a third party,
(e) To borrow institutional credits as may be necessary,
(f) To recover interests on credits, bonds and so on,
(g) To carry out inspection, supervision, and monitoring with regard to whether or not the credits disbursed are utilised,
(h) To purchase or sell bonds issued by the Government of Nepal or Treasury Bills issued by the Nepal Rastra Bank,
(i) To exchange information among Organisations or Associations or members associated with them,
(j) To accept deposits, make payments and transfer amounts through electronic instruments or devices,
(k) To borrow or reborrow credits time and again as may be necessary,
(l) To invest or use the amount received from internationally recognised Organisations related to cooperatives, donor agencies, and banks as development, finance and credits for the promotion of projects and to manage such resources,
(m) To carry out or cause to carry out studies, research, and surveys relating to project establishment, operation and appraisal,
(n) To carry out other banking transactions after obtaining a license from the Nepal Rastra Bank.

Cooperatives Act 2074

Section 53: Capital

Section 55: Prohibition on Disbursing Credit
No Cooperative Bank may disburse credit against the collateral or security of its own shares.

Cooperatives Act 2074

Section 53: Capital

Section 56: No Distribution of Dividend
No Cooperative Bank may declare or distribute dividends without meeting the preliminary expenses, the loss incurred in the last year, the capital fund, the risk-bearing fund, and the reserve fund.

Cooperatives Act 2074

Section 53: Capital

Section 57: Prohibition of Purchase of Goods with Commercial Objectives
A Cooperative Bank shall not purchase goods or immovable assets with the purpose of carrying out trade or business, except the goods or immovable assets required for it or for carrying out transactions under this Act and in the situation referred to in sub-Section (6) of Section 79.
Cooperatives Act 2074

Section 53: Capital

Section 58: Books and Accounts
1) A Cooperative Bank shall have to maintain books and accounts according to the format approved by the Nepal Rastra Bank, showing the actual status of its transactions.
2) The books and accounts referred to in sub-Section (1) shall contain the actual status of the Cooperative Bank, its investments, credits disbursed and recovered and borrowed, and another financial statement, detailed statements of income and expenditures and statements of assets and liabilities.

Cooperatives Act 2074

Section 53: Capital

Section 59: Nepal Rastra Bank may take over Management
1) the Nepal Rastra Bank may, in any of the following circumstances, by furnishing information to the Department, suspend the Board of Directors of the Cooperative Bank and take over the management on its own or cause another agency to be taken it over:
(a) In case it is found from the auditing report of the Cooperative Bank or inspection report of the bank that it fails to comply with the directives issued by the Nepal Rastra Bank from time to time,
(b) In case it commits any act against the interests of members and incurs a loss to members,
(c) In case the operation of the Cooperative Bank is not efficient and effective, thereby, loss is caused to the Cooperative Bank.
2) Before the Board of the Cooperative Bank is to be suspended pursuant to sub-Section (1), the Cooperative Bank shall be provided with an opportunity of seven days to defend itself.
3) Upon an opportunity to defend given pursuant to sub-Section (2), in case the Cooperative Bank fails to submit the defence or the defence so submitted does not seem satisfactory, the Nepal Rastra Bank shall suspend the Board of the concerned bank and take over the management on its own or cause the management to be taken over by any other agency.
4) Notwithstanding anything contained elsewhere in this Section, while taking over the management by the Nepal Rastra Bank on its own or by any other agency, a representative of the Department shall also be involved.

Cooperatives Act 2074

Section 53: Capital

Section 60: De-registration
1) In case the Cooperative Bank seems incapable of paying the debt or external liability due to be paid, the Nepal Rastra Bank may advise the Registrar to de-registration the Cooperative Bank.
2) Before giving the advice referred to in sub-Section (1), the Nepal Rastra Bank shall have to provide such a Cooperative Bank with an opportunity of 15 days to defend itself.
3) In case of receipt of advice to revoke the registration pursuant to sub-Section (1), the Registrar shall deregister the Cooperative Bank and appoint a liquidator pursuant to Section 89.
Cooperatives Act 2074

Section 53: Capital

Section 61: Confidentiality to be maintained
(1) Confidentiality of books and accounts relating to transactions and statements and documents of financial transactions of the cooperative bank shall be maintained.
(2) Notwithstanding anything contained in sub-Section (1), there shall be no hindrance to providing the books and, accounts and statements of financial transactions for any of the following purposes:
(a) To court in the course of hearing a case or any other legal proceedings,
(b) To auditor in the course of auditing of accounts,
(c) To the concerned official in the course of inspection,
(d) To the person or authority having authority to ask for the details according to the prevailing laws,
(e) To its own members.

Cooperatives Act 2074

Section 53: Capital

Section 62: Liquid Assets to be maintained
A Cooperative bank shall have to maintain liquid assets as specified by the Nepal Rastra Bank.

Cooperatives Act 2074

Chapter 9 Mobilisation of Financial Resources

Section 63: Provisions concerning sale and withdrawal of shares
1) A Cooperative Organisation may sell shares to its members.
2) Notwithstanding anything contained in sub-Section (1), no Cooperative Organisation shall sell the shares that are more than twenty percent of its total share capital to a single member.
Provided that this restriction shall not be applicable to an organisation or body under the full or partial ownership of the Government of Nepal.
3) Notwithstanding anything contained in sub-Section (1), a Cooperative Organisation may sell shares to an organisation or agency under the full or partial ownership or control of the Government of Nepal, in addition to its share members.
4) The face value per share of a Cooperative Organisation shall be one hundred rupees.
5) The share capital of a Cooperative Organisation shall be as stated in the Byelaws.
6) No Cooperative Organisation shall be allowed to sell or purchase shares in the open market.
7) Share of a member, which is the principal capital of a Cooperative Organisation, shall not be sold by auction for any debt or liability other than the debt or liability of the same Cooperative Bank.

Cooperatives Act 2074

Chapter 9 Mobilisation of Financial Resources

Section 64: Provisions Concerning Withdrawal of Amount and Operation of Accounts
1) In case any member desires to get back the money withdrawn from the membership of the Cooperative Organisation, his or her liabilities, if any, have to be paid, and the remaining amount shall be refunded within three months of the date of such payment of liabilities.
2) In case any member demands to withdraw the savings he/she has deposited in a Cooperative Organisation, his or her liabilities, if any, are deducted and the remaining amount shall be refunded to him or her.
3) A Cooperative organisation may operate all types of savings accounts.
Cooperatives Act 2074

Chapter 9 Mobilisation of Financial Resources

Section 65: Loans or Grants may be obtained
1) A Cooperative Organisation may borrow loans or accept a grant from any native or foreign bank or institution, or from any other agency, or work in collaboration.
2) Notwithstanding anything contained in sub-Section (1), before availing a loan or grant from a foreign bank or agency, approval of the Ministry of Finance shall be obtained on the recommendation of the Ministry.

Cooperatives Act 2074

Chapter 9 Mobilisation of Financial Resources

Section 66: Security of Government of Nepal may be obtained
1) In case a Cooperative Organisation requires security against a loan to be borrowed from a foreign bank or agency, it may, for that purpose, request the Ministry of Finance through the Ministry.
2) In case of receipt of a request pursuant to sub-Section (1), the Ministry of Finance may provide security for such loan.
3) While providing security pursuant to sub-Section (2), the Ministry of Finance may prescribe necessary conditions.

Cooperatives Act 2074

Chapter 10 Fund of Cooperative Organisation

Section 67: Find of a Cooperative Organisation
1) The following amount shall be deposited in the fund of a Cooperative Organisation
(a) Amount received from the sale of shares,
(b) Amount received as savings,
(c) Amount received as loan,
(d) Amount of grant received from Government of Nepal,
(e) Grant or assistance received from a foreign government or an international organisation,
(f) Amount accrued from commercial activities,
(g) Membership entry fee.
2) Approval of the Ministry of Finance shall be obtained before obtaining the amount referred to in clause (e) of sub-Section (1).

Cooperatives Act 2074

Chapter 10 Fund of Cooperative Organisation

Section 68: Reserve Fund
1) There shall be a reserve fund in a Cooperative organisation.
2) The fund referred to in sub-section (1) shall have the following amount:
(a) At least twenty-five percent of the net savings of a fiscal year,
(b) Capital grant amount provided by any organisation, association or agency,
(c) Amount received from the fixed assets,
(d) Amount received from any other sources.
3) The Amount of the fund referred to in sub-section (1) shall be indivisible.

Cooperatives Act 2074

Chapter 10 Fund of Cooperative Organisation

Section 69: Secured Capital Redemption Fund
1) There shall be a secured capital redemption repayment fund in a Cooperative organisation.
2) At least twenty-five percent of the amount remaining after segregating the amount referred to in clause (a) of sub-section (2) of Section 68 in the reserve fund shall annually be deposited in the fund referred to in sub-section (1).
3) The amount referred to in sub-section (1) shall be made available to the concerned member based on the annual turnover of the member as prescribed.
Cooperatives Act 2074

Chapter 10 Fund of Cooperative Organisation

Section 70: Cooperative Promotion Fund
1) There shall be a Cooperative Promotion Fund in a Cooperative Organisation.
2) For the promotion of cooperative enterprises, zero-point two five percent of the amount allocated after segregating the amount referred to in clause (a) of sub[1]Section (2) of Section 68 in the reserve fund shall annually be deposited in the fund referred to in sub-section (1).
3) The fund referred to in sub-section (1) shall be at the Ministry of Cooperatives and Poverty Alleviation.
4) Operating procedures of the Fund shall be as prescribed.
5) The Ministry may make available the amount as prescribed in proportion to the amount deposited in the fund referred to in sub-section (1).
6) Amount shall be made available as prescribed from the fund referred to in sub[1]Section (1) to the National Federation of Cooperatives; the concerned Central Sectoral Cooperatives Association; Provincial Sectoral Cooperatives Association; Provincial Cooperatives Association; District Sectoral Cooperatives Association; and District Cooperatives Association.
7) For the purpose of distribution of the amount deposited in the Fund referred to in sub-Section (1), there shall be a committee under the convenorship of the Minister of the concerned Ministry and comprising of the co-chair of the National Cooperatives Development Board, Secretary of the Ministry, Joint Secretary of the Ministry of Finance, chair of the National Cooperatives Federation, Chair of the Central Credits and Savings Association and the Registrar as the members.
8) Out of the amount received pursuant to sub-section (6), at least seventy-five percent shall be expended in infrastructure of cooperative business, and the remaining amount shall be expended in activities such as enterprise promotion, education, information, and training, market promotion, and organisation and Association monitoring.
9) The concerned Association shall separately maintain a record of the amount received pursuant to sub-section (6) and get it audited according to the prevailing laws. A statement thereof shall be made public as prescribed.
10) Details as to the expenses incurred and achievements made from the amount received pursuant to sub-section (6) shall be submitted to the National Cooperative Development Board.
11) In case the amount received pursuant to sub-section (6) is found to have been misused or used in other activity, the Registrar or the authority authorised by the Registrar shall recover such amount and prohibit making the amount of the fund available.
Cooperatives Act 2074

Chapter 10 Fund of Cooperative Organisation

Section 71: Provisions concerning Other Funds
1) There may be other funds in a Cooperative Organisation, in addition to the fund referred to in sections 67, 68, 69 and 70.
2) The amount in the fund referred to in sub-section (1) may be utilised as stated in the Byelaws of the fund to achieve the objectives of the fund, including the distribution of dividends.
Provided that the amount of share dividend of one year shall not be more than eighteen percent of the share capital.
3) Based on the total assets and liabilities of other transactions of the Cooperative Bank, the bank shall have other funds, too, as specified by the Nepal Rastra Bank.

Cooperatives Act 2074

Chapter 11 Records and Information

Section 72: Records to be maintained
1) A Cooperative Organisation shall securely maintain updated records of the minutes of its General Meeting, Board, and Accounts supervision Committee and of the functions carried out by them.
2) A Cooperative Organisation shall have to maintain records of accounts of all business carried out by it and other necessary records as prescribed.

Cooperatives Act 2074

Chapter 11 Records and Information

Section 73: Details to be made available
1) A Cooperative Organisation shall make available within the prescribed time a Report every year, along with the following details to the Registrar or the authority authorised by the Registrar:
(a) Quarterly transactions, annual reports, and auditing reports,
(b) Annual programs, policies and plans,
(c) Policies and plans relating to net savings,
(d) Name of directors and list of remaining term of office,
(e) Information relating to the holding of the General Meeting,
(f) Number of shareholder members and share capital,
(g) Amount of credit borrowed by director or member and due to be repaid,
(h) Other details as specified by the Registrar or the authority authorised by the Registrar.
1
1A) The report to be submitted by the cooperative organisation pursuant to Sub-section (1) shall be entered into the Integrated Management Information System of the Department.
2) The Cooperative Bank shall submit the report referred to in sub-Section (1) to the Nepal Rastra Bank as well within the prescribed time.
1 Added by the Anti-Money Laundering and Business Environment Promotion Act, 2080.

Cooperatives Act 2074

Section 75: Auditing

Section 76: Appointment of an Auditor
1) The General Meeting shall appoint one auditor from amongst the auditors licensed according to the prevailing laws for carrying out auditing of a Cooperative Organisation.
2) The remuneration and facilities of the auditor appointed pursuant to sub-section (1) shall be as determined by the General Meeting.
3) While appointing the auditor pursuant to sub-Section (1), the same person, firm, or company shall not be appointed for more than a consecutive period of three years.
Cooperatives Act 2074

Section 75: Auditing

Section 77: Ineligibility for Appointing Auditor
1) None of the following persons shall be appointed, or retained in if appointed, as an auditor:
(a) Director of a Cooperative Organisation,
(b) Member of the concerned Cooperative Organisation,
(c) An advisor or employee being appointed with regular payment of remuneration from the Cooperative Organisation,
(d) One who has not completed a period of three years after having been convicted of an offence relating to auditing,
(e) One who has not been declared bankrupt,
(f) One who has not completed a period of five years after having been convicted of the offence of corruption, cheating, or any other offence involving moral turpitude,
(g) A person, firm or company referred to in sub-Section (3) of Section 76,
(h) A person having a conflict of interest with the concerned Organisation or Association.
2) The auditor shall inform in writing the Cooperative Organisation stating that he/she is not ineligible pursuant to sub-section (1) before getting appointed.
3) In case any auditor is rendered ineligible to audit the account of any Cooperative Organization before expiry of his or her term of office is over or there arises a situation due to which he/she could not continue to remain as the auditor, he/she shall forthwith stop the works he/she is carrying on and information of the same shall be furnished to the Cooperative Organization in writing.
4) The audit carried out by the auditor appointed in contravention of this Section shall not be valid.
Cooperatives Act 2074

Chapter 14 Recovery of Debt and Due Amount

Section 79: Debts to be recovered
1) In case any members of a Cooperative Organization fails comply with the loan agreement or any terms or condition or bond thereof; does not repay the principal, interests and penal interests within the time stated in the deed; or the amount of loan is not used in the current scheme for which it was availed and found embezzled; the concerned Cooperative Organization may recover its principal, interests and penal interests having sold by auction the collateral security mortgaged by such a member while availing the loan or by any other means.
2) In case a member who has mortgaged a collateral in a Cooperative Organisation transfers the title of such a collateral to anyone in any manner or the value of such a collateral decreases for any reason, such borrower may be asked for additional collateral within a certain time frame.
3) In case the borrower does not submit additional collateral pursuant to sub-section (2) or the principal, interests and penal interests could not be recovered even from the collateral security mortgaged pursuant to sub-Section (1) or (2), the principal, interests and penal interests may be recovered from other assets belonging to such a borrower.
4) The amount remaining after recovery of the principal, interests and penal interests or the expenses incurred while making the recovery of the principal, interests and penal interests shall be refunded to the concerned borrower.
5) While selling by auction of collateral security or any other assets of a borrower by a Cooperative Organization under this Section, it shall write to the concerned Land Revenue Office to transfer the title of such collateral security, by registration or writing off the name of the earlier owner, in the name of the person accepting the auction according to the prevailing law and the concerned Office shall also have to carry out registration or the writing off the title and inform the same to the concerned Cooperative Organization.
6) In case the assets of collateral mortgaged in auction under this Section are not accepted by anyone, the concerned Cooperative Organisation may itself accept such assets.
7) In case the Cooperative Organization itself accepts the collateral pursuant to sub-Section (6), it shall write to the concerned Land Revenue Office to transfer the title of such a collateral by registration or writing off the name of the earlier owner and the concerned Office shall also have to carry out the registration or the writing off accordingly.
8) Other matters as to the recovery of credits shall be as prescribed.

Cooperatives Act 2074

Chapter 14 Recovery of Debt and Due Amount

Section 80: Provisions concerning Blacklist
1) A blacklist along with name and other details of the person misusing the credit amount availed from a Cooperative Organization or not paying the principal and interests within the specified time may be publicised.
2) Other provisions concerning publication of the blacklist shall be as prescribed.