Chapter V- Privileges of a co-operative society, Section 38

This section states that that the co-operative society shall have a charge on the share or interest in the capital and deposits of a current or former or deceased member. It shall also have a share or interest on any bonus or profits that are to be paid to that member with respect to a debt due from that member. The society also has the power to set-off any sum credited or payable to such a member towards
payment of a debt.