Market Fund, its custody and investment .- (1) Save as provided in sub-section

(2), all moneys received by a market committee by way of market fees, licence fees or other fees or charges, all moneys realised by way of penalty, all loans raised by the committee, and all grants, loans or contributions made by the State Government to the committee shall form part of a fund to be called the Market Fund.

1. (2) Save as otherwise provided in this Act, any money received by the market committee by way of arbitration fee or as security for costs in arbitration proceedings relating to disputes or any money received by the committee by way of security or contributory provident fund and such other moneys received by the committee as may be provided in the rules or bye-laws shall not form part of the Market Fund, and shall be kept in such manner as may be prescribed. 1[(3) Save as otherwise provided in this Act, the amount to the credit of the market fund and all other moneys received by the market committee shall be kept or invested,-
   • (a) in the Karnataka State Co-operative Apex Bank; or
   • (b) in a Co-operative District Central Bank approved by the Registrar of Co-operative societies; or
   • (c) in a Government savings bank; or
   • (d) in a scheduled bank with the previous approval of the Director of Agricultural Marketing; or in any of the Central or State Government securities with the previous approval of the Director of Agricultural Marketing.]

¹ Substituted by Act 20 of 2016 w.e.f.27.07.2016