(1) Due to the cancellation of registration under section 41 of the Act, the fund of the organization or association which has been dissolved may be spent for the following works in order of priority as follows:-

(a) To defray the expenses incurred in connection with the work of dissolution,
(b) Paying allowances to employees,
(c) To repay debts,
(d) to make other payments due,
(e) Return of share capital,
(f) To distribute the dividend at the rate of eight percent of the share capital per year in the case of the undivided period of the dividend. If the creditor does not come to collect the amount due according to the plan of distribution, within three months from the date of completion of the dissolution, such creditor shall make a claim on the funds of the said organization or association for the amount he should receive. No action will be taken on the claims made after the expiry of that period.

(3) Even if the amount of funds of the related organization or association remains after spending on the works written in sub-rule (1), the said amount shall be distributed according to the following order of priority according to the instructions of the registrar. can be transferred. (b) a superior association of the same nature of which that institution or association is a member,
(c) National Cooperative Association.

(4) Notwithstanding anything written in sub-rule (3), the Government of Nepal, on the recommendation of the Registrar, shall contribute to the co-operative movement the remaining funds of such organization or association after spending in accordance with sub-rule (1). It can be transferred to any other agency.